SICAD Call No. 18-2014
On July 11, 2014, the National Center of Foreign Trade (Centro Nacional de Comercio Exterior - “CENCOEX”) called for foreign currency Auction No. 18-2014 to be made through the Complementary System of Foreign Currency Administration (Sistema Complementario de Administración de Divisas - “SICAD”), acting through the Venezuelan Corporation of Foreign Trade (Corporación Venezolana de Comercio Exterior – “CORPOVEX”) and the Public Universal Banking. The persons convoked to take part in the Auction are the following legal persons that have been incorporated for at least forty-eight (48) months, that have performed regular imports during the last two (2) years, that are duly registered with the Registry of Users of the Foreign Currency Administration System (Registro de Usuarios del Sistema de Administración de Divisas - “RUSAD”), meet the requirements established in the rules regulating SICAD, and are domiciled in the national territory:
• Household Electrical Appliance Sector: Purchase orders must be made through CORPOVEX.
• Health Sector: Spare parts of medical equipment. (Companies awarded in auction No. 14 may not participate). Purchase orders must be made through the Public Universal Banking.
• Non-Metallic Minerals Sector: Basic supplies for manufacturing of glass products. Purchase orders must be made through the Public Universal Banking.
• Bookstore and School Supplies Sector: (Companies awarded in auctions Nos. 14 and 16 may not participate). Purchase orders must be made through the Public Universal Banking.
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: 4% of the total amount of the Auction. Variable amount for importations made through CORPOVEX.
• 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. It also states that the legal persons that have an Authorization for Acquisition of Foreign Currency (“AAD”) or 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 began on Monday, July 14, at 9:00 a.m. and will end on Thursday, July 17, at 3:30 p.m. On Friday, July 18, CENCOEX will inform the amount auctioned and the total amount awarded. The process will be completed on Friday, July 23, date on which the amounts awarded will be paid.
Should you have any question or comment or require further information, please contact the partner in charge of your account.
In order to access the call for Auction No. 18-2014, 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."