Non-fiscal incentives for the importation of equipment for agricultural use
The President of the Republic issued Decree No. 2.786, published in Official Gazette No. 41.122 of March 27, 2017 (the “Decree”). Said Decree established a group of non-fiscal incentives for the importation of machinery, spare parts, equipment, accessories, parts, and pieces of agricultural use for national production, of new or used goods, that enter the territory of the Republic, as detailed in article 1° of the Decree.
The incentives will be applied to the natural and legal persons whose principal activity is primary production of the agricultural sector or food processing, as well as to those whose principal activity is not the aforesaid but the commercialization of the goods subject matter of the Decree, always provided that they are intended for the direct acquisition of the same by national agricultural producers.
The Empresa de Propiedad Social Agropatria, S.A. was authorized to serve as commercialization agent in favor of the natural or legal persons the principal activity of which is primary agricultural production and that require to acquire the goods subject matter of the Decree through importation; they must provide the necessary resources to that end in the currency in which the goods will be acquired.
The natural and legal persons indicated in the Decree will be allowed the following non-fiscal incentives:
a) Exemption from the presentation of the Certificate of No Production (Certificado de No Producción - CNP) for the importation of the goods subject matter of the Decree;
b) Financing, through the Obligatory Agricultural Portfolio (Cartera Agrícola Obligatoria), by steering at least ten percent (10%) of its resources toward the acquisition, recovery, or repair of agricultural machinery or implements of national production, always provided that there is a minimum national content of sixty percent (60%), certified by the Empresa de Propiedad Social Agropatria, S.A.; and
c) Access to raw material for fulfilling the demand of the national metallurgical industries engaged in the manufacture of machinery, equipment, and implements of agricultural use, the requirements of which are to be included in the production programs of the national iron and steel enterprises.
The beneficiaries of the incentives established in the Decree must inform the Ministry of the Popular Power with competence over productive agriculture and lands the data of the importation of the goods subject matter of the Decree or the monthly detailed list of the manufacture of goods indicated in article 1° of the Decree and their final destination in the national territory, as appropriate.
The importation of the agricultural equipment and implements mentioned in article 6° of the Decree is prohibited. The Ministries of the Popular Power for Productive Agriculture and Lands and for Economy and Finance were entrusted with the execution of the Decree.
The Decree will be effective as from its publication in the Official Gazette until December 31, 2017.
In order to access the Decree, 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.”