DECREES NUMBERS 3.788, 3.789, AND 3.790 RELATED TO THE AUTOMOTIVE SECTOR
The following Decrees, issued by the President of the Republic, were published in Official Gazette No. 41.603 of March 21, 2019: i) 3.788 whereby the Corporación Socialista del Sector Automotor, S.A (“CORSOAUTO”) is strengthened, in the frame of the Gran Misión Transporte Venezuela; ii) 3.789 whereby the incorporation of national production to the Automotive Sector was declared to be obligatory; and iii) 3.790 whereby the Motor Automotriz was created for the reorganization, reinvigoration, growth, and efficiency of the sector, with the purpose of strengthening a new productive, efficient, and sustainable management model that helps reinforce the policies intended for entrepreneurial recovery, in order to efficiently, effectively, and efficaciously mobilize the people and thus break the economic siege through the use of technology and knowledge of the workforce.
i) Decree No. 3.788 established the centralization in CORSOAUTO of the process of procurement, receipt, and administration of the goods required for the automotive sector in Venezuela, by the entities of the National, State, and Municipal Government and by the legal persons of the private sector. In this connection, CORSOAUTO will assume the activities of international procurement of raw material, consumable supplies, intermediate and finished goods associated with the automotive sector.
The Ministry of the Popular Power for Industries and National Production will be in charge of identifying the raw material, consumable supplies, intermediate and finished goods required for the automotive sector in Venezuela, by the entities and agencies of the National, State and Municipal Government and by the legal persons of the private sector and will give instructions to CORSOAUTO, taking into account the execution of the Production Plan authorized in the agreements to be executed to that end.
The exclusive commercialization of raw material, consumable supplies, intermediate goods and finished products required by the automotive sector, except for those required in order to provide the public transportation service, acquired and administered by CORSOAUTO will be made through Empresa de Distribución de Productos e Insumos “Venezuela Productiva, S.A.”.
The exclusive commercialization of raw material, consumable supplies, intermediate and finished goods required by the automotive sector, in order to provide the public transportation service, acquired and administered by CORSOAUTO will be made through the Fundación Fondo Nacional de Transporte Urbano (FONTUR).
CORSOAUTO was also granted the preferential right to acquire raw material, consumable supplies, and intermediate goods produced, commercialized or distributed by both public and private companies associated with the iron, steel, aluminum, and petrochemical sectors and required to provide support to the automotive sector.
Lastly, Joint Resolution DM/N°118, DM/N°093-14 and DM/N°073, for facilitation of importation of goods with no commercial purposes acquired with foreign currency owned by the importer, published in Official Gazette No. 40.522 of October 20, 2014, was repealed.
ii) Decree No. 3.789 established that both public and private assembly plants, auto part manufacturers, and connected metal-mechanic companies are ordered to incorporate the minimum original material (material mínimo originario – “mmo”) of the Bolivarian Republic of Venezuela in connection with the auto parts and pieces manufactured in the national territory.
The Ministry of the Popular Power for Industries and National Production will establish, through a Resolution, the methodology for measuring the mmo, as well as the definition of origin of the auto parts, their national classification, and the general applicable minimal characteristics.
iii) Decree No. 3.790 established the creation of the Motor Automotriz (Automotive Motor), the president of which will help assure compliance with the Strategic and Specific Objectives in the frame of the Cross-Sectional Policies to be applied to the Central Axes of the Motor Automotriz in Venezuela, and process all of the information referred to in the Decree and render periodic account to the President of the Republic with respect to the development of actions to be implemented in the frame of the Motor Automotriz.
The aforesaid Decrees became effective as from their publication in the Official Gazette.
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