New regime of production, commercialization, and importation of vehicles
Presidential Decree No. 625 was published in Special Official Gazette No. 6,117 of December 4, 2013. The Decree establishes (i) the regime of production of motor vehicles assembled and commercialized in the country; (ii) the fair sales price of the same and (iii) the importation of vehicles by natural persons with their own foreign currency.
The Decree establishes that the Ministries of the Popular Power for Commerce and for Industries, together with the entity in charge of the Regulation of Costs and Prices, will define with the vehicle assembly companies the fair reference prices of the vehicles produced and assembled in the country in a period of time not exceeding twenty (20) days. The prices will be the result of the study of cost structures and the establishment of a reasonable profit, thus resulting in the “Price of the Vehicle at Factory Gate”. This price may not include any additional charges other than those established in the Decree. A commercialization margin will be established, using the price at factory gate as a base, for the vehicle concessionaries and marketing companies, which will be calculated on the basis of their cost structure and reasonable profit.
The vehicle assembly companies must report to the Ministries of the Popular Power for Commerce and for Industries the weekly production of vehicles and the destination of the same. The vehicle concessionaries and marketing companies must report to said Ministries their weekly sale of vehicles. The price of the used vehicles that are commercialized in the secondary market may not exceed the price at factory gate of new vehicles.
The models of vehicles assembled or produced in the country must remain current for at least five (5) years. The new models of vehicles assembled in the country must incorporate at least thirty-five percent (35%) of parts and pieces manufactured in the country. The vehicles assembled and commercialized by the State at fair prices may not be sold for a period of three (3) years.
The Decree indicates that an import license issued by the Ministry of the Popular Power for Commerce will be required for the importation of vehicles. Only natural persons residing in the country who have accounts in foreign currency with National Public Banks will be entitled to request the import license. The vehicles acquired under this Decree may not be commercialized for a period of thirty-six (36) months as from their entry into the country. The period for requesting the license will be of six (6) months after the date on which the Decree becomes effective.
The Decree partially repealed Joint Resolution of the Ministries of the Popular Power for Finance, for Light Industries and Commerce, and for Energy and Petroleum, published in Official Gazette of October 31, 2007.
The Decree entered into force upon its publication in the Official Gazette of the Bolivarian Republic of Venezuela.
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.”