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SICAD Call No. 06-2014

On March 24, 2014, the National Center of Foreign Trade (Centro Nacional de Comercio Exterior – “CENCOEX”) called for Auction of foreign currency No. 06-2014 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 textiles sector: Clothes-making, raw material, and consumable supplies (Registered with the RUSICAD in the “Commerce” and “Textiles” sectors).

  2. Legal persons of the footwear sector: Finished products not produced in the country, raw material, and consumable supplies (Registered with the RUSICAD in the “Commerce” sector).

  3. Legal persons of the chemical, petrochemical, and plastic resin sector. (Registered with the RUSICAD in the “Chemical”, “Rubber and Plastic”, and “Commerce” sectors).

 

Description of the Auction:

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

  • Minimum amount per purchase order: USD 5,000.00.

  • Maximum amount per purchase order: 3.5% of the total amount of the auction.

  • Multiple per purchase 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”) or an Authorization for Payment of Foreign Currency (“ALD”) issued by the Foreign Currency Administration Commission (Comisión de Administración de Divisas - “CADIVI”) may participate in the Auction.

The receipt of purchase orders begins on Tuesday, March 25, at 9:00 a.m. and ends on Thursday, March 27, at 3:30 p.m. On Friday, March 28, the CENCOEX will inform the amount auctioned and the total amount awarded. The process will be completed on Monday, March 31, date on which the amounts awarded will be paid.

 

In order to access the call for Auction No. 06-2014, please click here:

 

http://www.cadivi.gob.ve/images/stories/pdfs/Sicad/Convocatoria/convocatoria_sicad6.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.”