Venezuela is one of the countries in the American continent with the greatest natural wealth; however, as international reality shows us, having natural resources does not always mean development, progress and a good standard of living for the population. This is what is known as "Paradox of abundance". Does this mean that you cannot trade with Venezuela? No. It is not an easy market, but it is not impossible to access either. Let's see how to export to Venezuela.
Foreign trade in Venezuela
If we observe the Venezuelan trade balance we can see the weight of exports over imports, as well as the leadership of oil as the main export asset and resource on which the country's economy revolves. Likewise, both the first and the second correspond approximately 75% to the public sector and 25% to the private sector; characteristic of the Venezuelan economic structure.
Therefore, taking into account the dynamics of Venezuela, we could detect that the United States is its largest partner in terms of exports with 37% of the total price, followed by India and China (20-22%); while China is the market from which they import the most, accumulating a total percentage of 26,5%. The United States follows very closely with 22% and Brazil and Colombia are already very far behind. In the case of Spain, 5,8% (2019) of Venezuelan imports come from our country.
How to access the Venezuelan market
Every export requires rigor, and in the case of Venezuela it was not going to be any less. It is absolutely essential to manage documentation, customs licenses and procedures correctly. In this way, we must take into account that any product that arrives in Venezuela from abroad will be priced in CIF price (Cost, Insurance and Freight; the seller assumes the costs of insurance and main freight to the agreed port of destination); as well as certain goods (such as military items) have strong restrictions. Some foods, medicines or vehicles are also subject to special legal regimes.
For the rest of the products, A tariff is added to the CIF price which oscillates around a wide parameter (10%-20%), added to the generic VAT of 16%, 1% customs fee and very possibly another 3% related to expenses related to payment to the municipality where the merchandise is shipped. As you can see, despite there being no limitation on the export of products to Venezuela, there are high tariff rates, which are, without a doubt, decisive when deciding whether to export to Venezuela or not. Only Latin American countries have tariff preferences; The rest of the countries are doomed to face maximum tariffs, which can reach around 35%. The average ranges around 12% (ICEX, 2021).
Along these lines, and as with any export, a series of documents are required to be completed.
Customs documents to export to Venezuela
If the merchandise is divided between primary goods and intermediate goods, we require the following documentation:
See: Procedures to export to Venezuela
Export to Venezuela of primary goods
- Certificate of origin. This document certifies the place of origin of your goods, which conditions the tariff or commercial treatment given to them at the time of entry into a certain customs territory.
- CNP (certificate of non-national production).
- Phyto and zoosanitary certificates.
- Licenses relevant to the competent public body.
Exportation of intermediate goods to Venezuela
- Certificates of origin.
- NOC.
- Phyto and zoosanitary permits.
- Technical requirements included in the SENCAMER.
- Registration with the competent public body.
In addition, we also find in Venezuela a series of locations that operate as special commercial regimes.
Special commercial regimes in Venezuela
Free ports in Venezuela
Free ports are those customs ports in which the payment of taxes, fees or taxes on imports is relaxed. In Venezuela we find:
- Saint Helena of Uaién
- Nueva Esparta State.
Free Trade Zones (FTZ) in Venezuela
A free zone is one in which there is freedom of trade for some products. Some trade barriers, such as tariffs and quotas, are removed and red tape is reduced in the hope of attracting new business and foreign investment.
Free zones in Venezuela
A free zone is one delimited by the authorities in which customs duties are not settled on the goods stored there or on certain industrial activities.
- Paraguaná Industrial, Commercial and Services Free Zone.
- ATUJA Industrial, Commercial and Services Free Zone (ZOFRAT).
Finally, to export to Venezuela we also have to know the trade agreements of which it is a part.
Trade agreements of which Venezuela is a part
MERCOSUR
The Southern Common Market (MERCOSUR) is a regional integration process initially instituted by Argentina, Brazil, Paraguay and Uruguay. Venezuela later joined, which today is suspended in all rights and obligations inherent to its status as a State Party. He main goal of MERCOSUR is to foster a common space that generates trade and investment opportunities through the competitive integration of national economies into the international market.
Preferential agreements
Venezuela has preferential agreements with Colombia, Chile, Ecuador, Costa Rica, Honduras and Nicaragua, among others (SICE, 2021).
Conclusions on how to export to Venezuela
By way of conclusion, it can be stated that Venezuela is a country dependent on its fossil fuel exports, managed, for the most part, by the public sector. Its commercial openness, although it is more notable than, for example, Cuba, It is very far from other markets that are much more affordable for foreign investors.
Internationalist trained at the Complutense University of Madrid with broad interest in international climate issues, micronations and the Latin American region. Master in International Trade.
I would like more information to export essential products on small scales, thank you. From Brazil to Venezuela.
Good afternoon.
To date, what are the preferential agreements in force with Colombia.
It is not difficult to export to Venezuela, I live in the country, and I can show you that by complying with current regulations, which are none other than universal control standards based on tariffs agreed upon in Mercosur.