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Venezuela: Resolution amends tariff codes in Decree that established exemptions from payment of VAT, customs duties and customs service fees

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In brief

The Ministry of People’s Power of Economy, Finance and Foreign Trade issued Resolution No. 017-2022 on 30 August 2022 (“Resolution“),1 whereby tariff codes were removed from and added to Appendix I of Decree No. 4,683 of 1 May 2022 (“Decree“).2 The Decree established the exemption from the payment of value-added tax (VAT), customs duties and customs service fees for imports of certain goods and economic sectors until 31 December 2022.3

The Resolution entered into force on 12 September 2022 (i.e., five business days following its publication in the Official Gazette of the Bolivarian Republic of Venezuela).

In detail

  1. Tariff codes removed from the Decree
    • The Resolution removed 10 tariff codes from Appendix I of the Decree: 3506.10.90.00, 3506.91.10.00, 3506.91.20.00, 3506.91.90.00, 3506.99.00.00, 5607.41.00.00, 7009.91.00.00, 7009.92.00.00, 7413.00.00.00 and 8544.49.00.00. These items will not be granted the exemption benefit.
    • These codes refer to the following goods: products of any kind used as rubber-based and polymer-based adhesives of headings 39.01 to 39.13 dispersed or to be dispersed in an aqueous medium; twine for tying; unframed and framed rear view mirrors for vehicles; cables, braids and similar articles of copper not insulated for electricity.
    • As a consequence of their removal from Appendix I of the Decree, the aforementioned tariff codes will not enjoy exemption from import tax, VAT and customs service fees for imports, as well as any other tax or rate applicable in accordance with the legal system in force, including the VAT applicable to sales made in the national territory.
  2. Tariff codes added to the Decree
    • The Resolution added the following 24 tariff codes to Appendix I of the Decree: 2907.21.00.00, 2822.00.10.00, 2836.20.10.00, 3102.50.11.00, 3102.50.19.00, 3102.50.90.00, 3204.19.11.00, 3501.10.00.00, 3905.99.20.00, 4004.00.00.00, 4016.95.90.00, 4016.99.90.00, 4504.90.00.10, 4821.10.00.00, 4911.99.00.00, 7217.30.10.00, 7312.10.10.10, 7312.10.90.10, 7314.49.00.00, 7318.29.00.00, 7408.11.00.00, 7606.12.90.90, 7616.99.00.10 and 7616.99.00.91.
    • These codes refer to the following goods, among others: resorcinol and its salts; cobalt salt oxide; anhydrous substances; fertilizers with a nitrogen content less than or equal to 16.3% by weight; iron wires with a carbon content of 0.6% or more by weight; aluminum sheets and strips.
    • As a consequence of their inclusion in Appendix I of the Decree, the aforementioned tariff codes will enjoy exemption from import tax, VAT and custom duties, as well as any other tax or rate applicable in accordance with the legal system in force, including the VAT applicable to sales made in the national territory.

Spanish version

1 Published in Official Gazette No. 42,455 of 5 September 2022.
2 Published in Official Gazette No. 42,455 of 5 September 2022.
3 Precedent: Legal Alert “Venezuela: Decree establishes exemptions from payment of VAT, customs duties and customs service fees for imports of certain goods and economic sectors” in Venezuela: Decree establishes exemptions from payment of VAT, customs – Baker McKenzie InsightPlus

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Author

Ronald Evans is managing partner in Venezuela, and chairs the Firm's Global Wealth Management practice group as well as the Tax Practice in Venezuela. He represents Latin America in the Firm's Tax Policy Group, and is highly recommended by various legal directories. He was the first chief of the Venezuelan tax administration’s (SENIAT) international affairs division, and served as Venezuela’s official negotiator for double taxation treaties from 1994 to1996. Ronald was an advisor to the minister of foreign affairs on double taxation issues from 1997 to 1999. He has chaired the Venezuelan branch of the International Fiscal Association since 2007, and is a member of STEP’s Advisory Committee for Latin America.

Author

Manuel Marín has been with Baker McKenzie since 1998 and became partner in 2002. Prior to joining the Firm, he served as chief attorney of the tax division of Legislación Económica, and held varios management positions in the Venezuelan Customs and Tax Administration (SENIAT). Manuel has authored and co-authored various key publications and has spoken extensively in several customs and tax seminars and conferences. He has been a trade and customs professor in the advanced program for counseling and tax administration at the Universidad Metropolitana (UNIMET), and has given extension courses in the Universidad Central de Venezuela (UCV), the Universidad Católica Andres Bello (UCAB), and the Escuela Nacional de Administración y Hacienda Pública (ENAHP).

Author

Marie Roschelle Carolina Quintero Sabino is an Associate in Baker McKenzie, Caracas office.

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