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SICAD Call No. 05-2014

On March 17, 2014, the National Center of Foreign Trade (Centro Nacional de Comercio Exterior – “CENCOEX”) called for foreign currency Auction No. 05-2014 to be made through the Complementary System of Foreign Currency Administration (Sistema Complementario de Administración de Divisas - “SICAD”) acting through the Universal Public Banking System.  The persons convoked to take part in the Auction are the following legal persons that have been incorporated for at least twenty-four (24) months, have carried out regular imports during the last two (2) years, are duly registered with the Registry of Users of the Complementary System of Foreign Currency Administration (Registro de Usuarios del Sistema Complementario de Administración de Divisas - “RUSICAD”), meet the requirements established in the rules regulating the SICAD, and are domiciled in any part of the national territory:

 

1.  Legal persons of the National Airlines Sector

1.1 Services.

1.2 Goods (To be acquired exclusively by the Venezuelan Corporation of Foreign Trade (Corporación Venezolana de Comercio Exterior - “CORPOVEX”) through Venezolana de Exportaciones e Importaciones, C.A “VEXIMCA”).

 

2.   Legal persons of the National Maritime Sector (Goods to be acquired exclusively by CORPOVEX through VEXIMCA).

 

3. Legal persons of the chemical, petrochemical, and plastic resin sector (Goods to be acquired exclusively by CORPOVEX through BARIVEN, S.A).

 

Description of the Auction:

 

• Total amount of the Auction: USD. 220,000,000.00.

• Minimum amount per purchase order, service provision order, or service contract order: USD 5,000.00.

• Maximum amount per purchase order, service provision order, or service contract order: 1% of the total amount of the Auction (variable for the imports made directly by CORPOVEX, through the conglomerate of companies).

• Multiple per purchase order, service provision order, or service contract order: USD. 1,000.00.

 

The call imposes on the legal persons favored by the Auction the obligation to execute a Faithful Performance Contract for Exchange Transactions and the relevant Faithful Performance Bond. It also states that the legal persons that have an Authorization for Acquisition of Foreign Currency (“AAD”) issued by the Foreign Currency Administration Commission (Comisión de Administración de Divisas “CADIVI”) within the sixty (60) days preceding the date of the act of special auction called by CENCOEX may participate in the Auction.

 

The receipt of purchase orders began on Tuesday, March 18, at 9:00 a.m. and ends on Wednesday, March 19, at 3:30 p.m. On Friday, March 21, the CENCOEX will inform the amount Auctioned and the total amount awarded. The process will be completed on Monday, March 24, date on which the amounts awarded will be paid.

 

In order to access the call for Auction No. 05-2014, please click here:

http://www.cadivi.gob.ve/images/stories/pdfs/Sicad/Convocatoria/convocatoria_sicad5.pdf

 

“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.”