Exchange Agreement No. 34
Exchange Agreement No. 34, entered into by the National Executive and the Venezuelan Central Bank (VCB), was published in Official Gazette No. 40.851 of February 18, 2016 (the “Exchange Agreement”).
The Exchange Agreement establishes as follows:
a. The private natural and legal persons engaged in the exportation of goods and services may withhold and administer up to 60% of the income received in foreign currency by virtue of the exportation made, with the following purposes:
(i) in order to cover the expenses incurred by reason of the exporting activity, other than financial debt, which includes, consumable supplies for the production of the exported good or service and the group of disbursements made in foreign currency by the exporter in the several phases of its productive activity that permits the exportable offer;
(ii) for the purposes of article 2 of Exchange Agreement No. 20, which is the possibility granted to companies and individuals in Venezuela to open bank accounts in US$ in Venezuelan banks; and
(iii) for the purposes of placing offers in the markets to which Exchange Agreement No. 33 (SIMADI) refers.
The rest of the foreign currency obtained will be sold to the VCB, at the reference rate of exchange prescribed in article 24 of Exchange Agreement No. 33 (SIMADI), as in effect by the date of the relevant transaction, reduced by 0.25%. Said sale must be made within five (5) bank business days following that when payment of the export is made.
b. The private natural or legal persons engaged in the exportation of goods and services must receive the payment of their exporting activity exclusively in foreign currency, except for the transactions processed through the Convenio de Pagos y Créditos Recíprocos de la Asociación Latinoamericana de Integración (ALADI) (ALADI Reciprocal Payment and Credit Agreement) and the Sistema Unitario de Compensación Regional de Pagos (SUCRE) (Unitary System of Regional Payment Setoff). To that end, the VCB will inform such transactions to the Tax and Customs Administration.
c. The special regime prescribed in Exchange Agreement No. 4 for the financing programs developed by Banco de Comercio Exterior (BANCOEX) will be applicable to the financing programs developed by the banking institutions of the public sector with the exporting sector.
d. The declaration of the exporting activity in the terms prescribed in the exchange legislation, in agreement with VCB’s Resolution No. 05-11-01, dated November 3, 2005 containing the “Rules for Declaration of Importation and Exportation of Foreign Currency and for Exportation of Goods or Services”, must be made through the electronic address available for such purpose, which will be informed by the VCB..
e. For purposes of the sale of foreign currency to be made by reason of the provisions of the Exchange Agreement, the exporters will not be required to be registered with special administrative registries. In this connection, the registration of the exporter with the Registry of Users of the System of Administration of Foreign Currency (Registro de Usuarios del Sistema de Administración de Divisas -“RUSAD”) will not be required in order to perform the obligations referred to in the administrative exchange legislation. The National Center of Foreign Trade (Centro Nacional de Comercio Exterior - “CENCOEX”) will simplify the formalities established in the rules of the regime of administration of foreign currency for the exporting sector; to that end it will abide by the guidelines established by the National Executive and the VCB.
The Exchange Agreement repeals article 3 of Exchange Agreement No. 27 and article 7 of Exchange Agreement No. 28.
The Exchange Agreement entered into effect upon its publication in the Official Gazette.
In order to access the Exchange Agreement, 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.”