Auto parts exporters face higher costs in Venezuela
June 1, 2009
World Trade\Interactive
Companies exporting automotive parts to Venezuela are facing higher costs after a recent administrative action imposed new requirements on those goods.
The Venezuelan Commission of Foreign Currency Administration (CADIVI), which regulates currency exchange procedures for businesses importing into Venezuela, maintains a list of goods that require a certificate of insufficiency and non-national production when imported into Venezuela from any country. Companies importing goods on the CADIVI list can pay import duties at the official exchange rate of the dollar, which is often lower than the exchange rate obtained on the free market.
On May 14, CADIVI published a resolution that makes a number of changes to this list, among which is the exclusion of automotive components. As a result, the free market exchange rate must now be used to pay import duties on these goods, which will translate into increased costs for auto parts exporters to Venezuela.
|
|
