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Requirements to record exportations and demonstrate sale of foreign currency

Ruling No. 111 issued by the Foreign Currency Administration Commission (“CADIVI”), that establishes the Requirements and Formalities for Export Transactions, was published in Official Gazette No. 40,000, dated September 4, 2012 (the “Ruling”).  The Ruling regulates the requirements and formalities to be met by exporters in order to record the exportation of goods, services, and technology and to demonstrate the sale of foreign currency to the Venezuelan Central Bank (“VCB”), when the transaction represents the receipt of foreign currency by the user.

The Ruling is applicable to the individuals or legal entities domiciled in the territory of the Bolivarian Republic of Venezuela that perform export transactions, with the exception of the exporters of the public sector, diplomatic and consular representations, and international agencies, accredited in the Bolivarian Republic of Venezuela.  Said individuals and legal entities must be registered one time with the Registry of Users of the Foreign Currency Administration System (Registro de Usuarios del Sistema de Administración de Divisas - RUSAD).

As of the fifth (5°) business day following the date of export execution or the date in which the custom declaration was filed with the competent custom authority, if applicable, the users shall record the exportation by means of CADIVI’s web page and obtain the corresponding form of the executed exportation.  If users receive advanced payments, they must likewise record the received advanced payments and obtain the exportation advanced payment form.

Also, the Ruling establishes the obligation to sell to the VCB the foreign currency resulting from (i) exportation of goods, services, or technology, (ii) lease, services, or other rights derived from the goods under regime of temporary exportation (“TE”), and (iii) TE or temporary exportation for passive processing (“TEPP”) of goods, when the period of time authorized for the goods to re-enter the country elapses without such re-entry having occurred.  If an extension has been obtained from the competent customs authority for the TE or TEPP, the user shall notify CADIVI within five (5) business days following the granting of the extension.

As to the penalties, the Ruling establishes that in the event of breach of any of the obligations therein prescribed or if there are sound indications that the user provided false or erroneous information or documentation, CADIVI may preventively suspend access to the Foreign Currency Administration System and thus the relevant administrative proceedings would begin, without prejudice to any relevant civil, criminal, and administrative liability.  Likewise, when the user simultaneously performs importation and exportation operations, CADIVI may preventively suspend the granting of the Authorizations for Payment of Foreign Currency (Autorizaciones de Liquidación de Divisas - ALD) corresponding to the requests in progress for authorization for acquisition of foreign currency intended for importation.

The Ruling No. 101, which established the requirements and formalities for export transactions, published in Official Gazette No. 39,347 of January 15, 2010, was repealed by the Ruling.  However, the demonstration of the sale of the foreign currency resulting from the export transactions performed during the period of legal effectiveness of Ruling No. 101 will be governed by the provisions of Ruling No. 101.

Finally, the Ruling became effective upon its publication in the Official Gazette.

In order to access the Ruling, please click here.

 

“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”