On January 29, 2020, the following was published on Official Gazette No. 6,507 Extraordinary, the reform of the Organic Customs Law, which modifies specific but substantial aspects in contrast to the previous one, such as:

Trade policy is included in the scope of application of the This seems to encompass a broader object of legal protection than previously provided for. than previously provided for.

Highlights of the reform of the organic customs law

Other aspects of the reform that stand out are The powers granted to the President of the Republic, which include the regulation of general and sectorial policies and strategies regarding foreign trade, the promotion and encouragement of exports, as well as the creation and elimination of customs offices. It also highlights the possibility of imposing norms and measures to "safeguard" the macroeconomic stability of the country and to counteract unfair international trade practices that affect national production.

The President is also empowered to delegate the exercise of his powers and to create a presidential or interministerial commission for this purpose.

With respect to fees and other contributionsThe new reform will take into consideration the official exchange rate of the highest value currency published by the Central Bank of Venezuela (BCV) and will be applied quantitatively according to several numbers of "times" which in most cases coincide with the number of tax units that were estimated in the previous Law, thus replacing such measure as a basis for normalizing or updating the values distorted by inflation.

The above also applies to finesThe Tax Administration will apply the official exchange rate of the highest value currency published by the Central Bank of Venezuela (BCV), which corresponds to the date of the commission of the offense and will be applied accordingly in numbers of "times".

The amendment also establishes a period of 180 daysThe National Executive Branch must issue the pertinent norms for the regulation of bonded warehouses as from the date of their entry into force.

The new provisions will come into force once the period of 20 continuous days from its publication in the Official Gazette ends, that is, on January 29, 2019.

In Alan Aldana & Abogados we have a team specialized in tax matters to address the issues referred to and provide accurate advice for the protection of the rights and interests of our clients.

Source:

• Official Gazette No. 6,507 - Customs Law