Law for the Promotion of Non-oil Exports

Law for the Promotion of Non-Oil Exports

The National Assembly enacted the Law for the Promotion of Non-oil Exports (Official Gazette Special No. 6,824 of July 18, 2024). Here are the key points:

Entry into force. The Law became effective upon its publication in the Official Gazette on July 18, 2024.

Purpose. This Law aims to facilitate and promote the export of non-oil goods and services from Venezuela, increasing the competitiveness of Venezuelan products abroad and their participation in international markets (Article 1).

To achieve this, the State will take measures to encourage the diversification of non-oil exports of goods and services, promote their modernization and competitiveness, and simplify the processes for their export, maximizing the use of advanced technologies (Article 2).

Measures for the development of non-oil exports. Among the measures that the State will adopt to support exporters include:

• Designing and implementing public policies to support exporters.
• Implementing measures to simplify and optimize administrative procedures related to producing and exporting non-oil goods and services.
• Facilitating the placement of goods and services in international markets.
• Designing, promoting, and implementing training programs for exporters of non-oil goods and services.
• Developing adequate infrastructure to improve export capacity.
• Strengthening the productive capacities of the export sector.

Single Window for Foreign Trade. Additionally, a Single Window for Foreign Trade, known as “VUCE” in Spanish, has been established by law to digitally centralize, manage, and simplify the procedures and permits necessary for the export process (Article 12)

• Those intending to export non-oil goods or services must register with the VUCE and obtain the corresponding certificate (Article 14).
• According to the Law, no authority is permitted to demand any permit that cannot be processed through the VUCE as a requirement for exporting (Article 14).
• The use of the VUCE requires the payment of fees for each type of procedure. The amount in bolivars is equivalent to up to one hundred and fifty (150) times the official exchange rate of the highest value currency, published by the Central Bank of Venezuela (Article 15).

General Decree of Fees. All fees demanded by the Public Administration for exportation procedures and services are to be consolidated in a General Decree of Fees for Exportation, to be issued by the National Executive Branch. Payment of fees not contained in the Decree shall not be required (Article 18).

Tax and Financial Measures. The Law includes specific tax and financial measures to promote non-oil exports:

• The National Executive Branch can dictate tax benefits aimed at reducing or eliminating tax burdens for export activities (article 20).
• The National Executive Branch can establish tax reimbursement mechanisms for non-oil exports (drawback) (article 21).
• The National Executive Branch is empowered to design credit insurance mechanisms for non-oil exports to cover non-payment risks (article 24).
• The National Executive Branch has the authority to facilitate access to financing for the acquisition of machinery, raw materials, and inputs for use in the productive processes for export purposes (article 25).
• The National Executive is permitted to dictate incentives for the creation of logistic centers for the management of exports (article 26).

National Export Fund. The Law also creates the National Export Fund to finance activities related to promoting the export of non-oil goods and services (Article 31).

To fund the National Export Fund, importers will contribute up to 0.5% of imports when liquidating the import customs tax.

The Ministry of the People’s Power in economy and finance will dictate a Resolution aimed at developing all matters related to this tax (Article 31.2).

This contribution will be due 30 days after the publication in the Official Gazette of the Resolution of the Ministry of Economy and Finance (Second Transitional Provision).

Other relevant regulations.

• The Foreign Trade Bank (BANCOEX, in Spanish) will serve as the specialized financial institution for financing non-oil exports (Article 32).
• The Ministry of Foreign Trade will take over the centralization, simplification, and facilitation of non-oil exports previously handled by the Venezuelan Foreign Trade Corporation (Article 33).
• The Law has ordered the elimination and dissolution of the National Foreign Trade Center, with its functions to be assumed by the Ministry of Foreign Trade (Article 34).
• The competent authorities are required to incorporate mechanisms within the VUCE to obtain permits for non-oil exports within 90 days of the Law coming into force. No authority may demand permits that cannot be processed through the VUCE (First Transitional Provision).
• Title IV of the Decree with the Rank, Value, and Force of Law of the Foreign Trade Bank, as well as other provisions related to the promotion of exports within the Decree, and all provisions conflicting with this Law are hereby repealed.