SICAD Call No. 21-2014
On August 4th, 2014, the National Center of Foreign Trade (Centro Nacional de Comercio Exterior - “CENCOEX”), called for foreign currency Auction No. 21-2014, 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 been performing regular imports for the last two (2) years, meet the requirements established in the rules regulating SICAD, are duly registered with the Registry of Users of the Foreign Currency Administration System (Registro de Usuarios del Sistema de Administración de Divisas - “RUSAD”) and are domiciled in the national territory:
• Legal persons from the electricity sector: Purchase orders must be made through CORPOVEX.
• Legal persons from the rubber and plastic sector: Purchase orders must be made through the Public Universal Banking.
• Legal persons from pulp, paper, paperboard and wood sector: 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: 2% of the total amount of the Action.
• Multiple per purchase order: 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 August 5, at 9:00 a.m. and will end on August 7, at 3:30 p.m. Subsequently, on August 11, CENCOEX will inform the amount auctioned and the total amount awarded. The process will be completed on August 14, date on which the amounts awarded will be paid.
For full access to the invitation to Auction No. 21-2014, 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.”