Basic information
Outline of the system
System of administration of tariff quotas for a series of agricultural items, in accordance with the minimum access commitments made by Venezuela at the Uruguay Round of Multilateral Trade Negotiations. Import licences are issued by the Directorate-General of Agricultural Marketing of the Ministry of Agriculture and Land. Venezuela is currently administering these tariff quotas for a limited number of items stipulated in its Schedules of Commitments, as can be seen from the notifications made by Venezuela to the Committee on Agriculture and the Committee on Import Licensing of the WTO.
Product coverage
The system applies to a set of 70 tariff subheadings for the agricultural products named in Section I-B of Venezuela’s Schedule LXXXVI of Commitments under the Uruguay Round. Venezuela currently administers the quotas through the use of import licences (see Products).
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Administration of tariff quotas under Venezuela's Schedule LXXXVI
Products under restriction as to the quantity or value of imports
The purpose of the licensing system is to administer tariff quotas under the minimum and current access commitments made by Venezuela in the Uruguay Round negotiations, Schedule LXXXVI, Section I-B.
Questions for products under restriction as to the quantity or value of imports
See Answers 6.1-6.11.
The system applies to products originating from which country?
Import licences are allocated without discrimination as to the country of origin of the goods. The basic criterion for distributing the quotas is historical imports and a percentage is reserved for new importers.
Expected duration of licensing procedure
One year
Legal requirements
Is the licensing statutorily required?
Obtaining an import licence is a statutory requirement for products for which Venezuela currently administers quotas (see Agricultural Products). The Executive Branch, through the Ministry of Agriculture and Land, may decide to administer quotas for additional items included in Section I.B of Venezuela’s Schedule of Commitments.
The legal basis for the import licensing system is:
- Official Gazette (Gaceta Oficial) No.5039, extraordinary edition of 9 February 1996, publishing Decree No.989 of 20 December 1995, the Customs Tariff.
- Official Gazette No.36831 of 17 November 1999, publishing Resolution No.282 of the Ministry of Finance (MF) and No.627 of the Ministry of Production and Trade (MPC), “Tariff Quotas for Products in Schedule LXXXVI Section I-B, (Negotiations on Agriculture under the Uruguay Round of the General Agreement on Tariffs and Trade)”; and publishing Resolution No.285 of the MF and No.631 of the MPC, tariff quotas on milk and cheese.
- Official Gazette No.37368 of 21 January 2002, publishing the Resolution establishing tariff quotas for maize and sorghum (for the period 28 January 2002 to 31 December 2002) pursuant to the Uruguay Round negotiations
- Official Gazette No.5581, extraordinary edition of 27 March 2002, publishing Resolution No.911 of the Ministry of Finance, which partly amends Article 21 of Decree No.989 of 20 December 1995 with respect to the level of bound tariffs for yellow maize and sorghum.
- Official Gazette No.36835 of 23 November 1999, establishing tariff quotas on cane sugar.
- Official Gazette No.36850 of 14 December 1999, Resolution Nos.292, 293, 294, 295 of the MF, which partly amend Decree No.989 of 20 December 1995, the Customs Tariff, with respect to the level of bound tariffs for the products mentioned in the schedule of products subject to import licences.
- Official Gazette No.37082 of 21 November 2000, Resolution No.648 of the MF and No.607 of the MPC, extending Joint Resolution No.282 and No.627 of those ministries for one year.
- Official Gazette No.37147 of 23 February 2001, Resolution No.718 of the MF and No.86 of the MPC, establishing tariff quotas for the products mentioned in Schedule LXXXVI, Section I-B, pursuant to the negotiations on agriculture in the Uruguay Round of GATT.
- Official Gazette No.37155 of 9 March 2001, Resolution No.723 of the MF, which partly amends Article 21 of Decree No.989 of 20 December 1995, in the terms established therein.
- Official Gazette No.37327 of 19 November 2001, publishing Joint Resolution No.841 of the MF and No.836 of the MPC, which extends each and every one of the provisions of Joint Resolution No.289 and No.630 of 12 November 1999 for a period of one year.
- Official Gazette No.37329 of 21 November 2001, publishing Joint Resolution No.848 of the MF and No.898 of the MPC, which extends each and every one of the provisions of Joint Resolution No.285 and No.631 of 15 November 1999 for a period of one year.
- Official Gazette (Gaceta Oficial) No.37629 of 11 February 2003: Resolution of the Ministries of Finance, Production and Trade and Agriculture and Land establishing the Tariff Quota Administration Regime for the products in Schedule LXXXVI, Section I-B, resulting from the Negotiations on Agriculture of the Uruguay Round of the General Agreement on Tariffs and Trade, as follows:
Dairy produce: Resolution of the Ministries of Finance, DM/No.1.271, Production and Trade, DM/No.499, and Agriculture and Land, DM/No.139;
Yellow maize and sorghum: Resolution of the Ministries of Finance, DM/No.1.272, Production and Trade, DM/No.009, and Agriculture and Land, DM/No.013;
Oilseeds: Resolution of the Ministries of Finance, DM/No.1.273, Production and Trade, DM/No.500, and Agriculture and Land, DM/No.141.
- Official Gazette No.37574 of 20 November 2002: Resolution of the Ministries of Finance, Production and Trade and Agriculture and Land extending for a further year the validity of Joint Resolution Nos.289 and 630 of 12 November 1999, issued by the Ministries of Finance and of Production and Trade:
Sugar: Resolution of the Ministries of Finance, DM/No.1.235, Production and Trade, DM/No.460, and Agriculture and Land, DM/No.112.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
The Executive Branch may also abolish the system without obtaining approval from the National Assembly.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
All persons, firms and institutions are eligible to apply for import licences.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Directorate-General of Agricultural Marketing of the Ministry of Agriculture and Land
Address
Av. Lecuna, Parque Central, Torre Este, 7th Floor, Distrito Capital, Caracas, Venezuela
Telephone
(0058212) 509-0557 to 9
Fax
(0058212) 509-0596
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
The Ministry of Agriculture and Land, through the Directorate-General of Agricultural Marketing
Documentation requirements
What information is required in applications?
The import licence application issued by the Directorate-General of Agricultural Marketing of the Ministry of Agriculture and Land requires general information on the firm, tariff code and description of the product to be imported, volume of imports applied for and name of the firm’s legal representative (see Annex 2).
Anexo 2.pdfWhat documents is the importer required to supply with the application?
In addition, importers are required to attach the following documents to the application for an import licence: copy of the importer’s trade register, copy of registration of the product with the Ministry of Health and Social Development, import statistics for the last two years, sworn statement by the importer that he knows and complies with the labelling requirements for food products and a copy of the most recent import declaration.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Article 86 of the Organic Law on Customs requires that goods comply with the customs regulations in effect on the date of their arrival at the primary zone and the importer is required to present all the necessary documentation.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Issuing the license
Can a licence be granted immediately on request?
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Which administrative body is responsible for approving application of licences?
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
Not applicable.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Importers are required to pay a revenue stamp in the amount of 15 tax units, as required in Article 10 of the Revenue Stamp Law and Article 229 of the Tax Code.
What is the amount of the fee or charge?
Importers are required to pay a revenue stamp in the amount of 15 tax units, as required in Article 10 of the Revenue Stamp Law and Article 229 of the Tax Code.
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement for the issue of import licences.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Are the reasons for any refusal given to applicants?
In the event a licence is refused, the importer is notified of the reasons for the refusal.
Have applicants a right of appeal in the event of refusal to issue a licence?
The importer may appeal for reconsideration of the administrative decision through regular or jurisdictional channels, as established in the Organic Law on Administrative Procedures.
If so, to what bodies and under what procedures?
The importer may appeal for reconsideration of the administrative decision through regular or jurisdictional channels, as established in the Organic Law on Administrative Procedures.
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
The importer is required to present the import licence issued by the Ministry of Agriculture and Land at the time the imports are made.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
A licence is valid for three months, but may be extended in the event it has not been used by the date of expiry for reasons beyond the importer’s control. To do so, importers must send a communication requesting the extension for the same volume and the same period of validity, attaching the original of the licence that has expired.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There are no penalties for not using all or part of a licence.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
In Venezuela, the currency is freely convertible. There are no restrictions on access to foreign exchange.
Is a licence required as a condition to obtaining foreign exchange?
Is foreign exchange always available to cover licences issued?
What formalities must be fulfilled for obtaining the foreign exchange?
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Through a notice published in the national press, the Ministry of Agriculture and Land informs interested parties about the procedures and requirements for obtaining licences and the formalities for applying. The total amount of the quota is published, which is distributed without discrimination as to the origin of the goods. The criterion used to allocate the quota is historical imports. There are no exceptions to the licensing requirement.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
The size of the quotas is determined on an annual basis. For sugar and dairy products, the quota is allocated on a quarterly basis.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
The total quota is distributed on the basis of historical imports. The public is informed of the names of importers who have been allocated licences through the web page of the Ministry of Production and Trade. To ensure that the licences are actually used for imports, each time importers apply for a new licence, they are asked to present a copy of their previous licence stamped by the customs office through which imports were made. They are also asked for a copy of the customs declaration. Importers are required to report on the use they have made of the licence and any unused quota. The unused portion is included in the new quota assigned to the importer to ensure supplies for the domestic market and compliance with the access commitments made by Venezuela in the Uruguay Round.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Once the Official Notice that applications for licences will be accepted is published, interested parties have 21 working days to present the necessary documentation.
What are the minimum and maximum lengths of time for processing applications?
Applications are processed in a period of approximately 60 working days beginning on the day following the closing date of the announced application period.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Importers may begin to import once they have obtained a licence, which is valid for three months.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes. Licence applications are considered by an Inter-Ministerial Committee, composed of the Ministry of Finance, the Ministry of Production and Trade and the Ministry of Agriculture and Land.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Applications for import licences are considered after the deadline for submission expires and not upon receipt. Licences are allocated based on past imports (historical imports), applying an adjustment factor based on the percentage share of imports made by each company in the period under consideration (last two years). New importers are allocated 10 per cent of the total quota for the product.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Not applicable.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable.