Venezuelan forex board sets new requirements to import newsprint

Amid foreign exchange controls, new amendments to tariff headings adopted in Venezuela are hitting imports of raw material used for newspaper. Now, a new certificate of insufficient production or non-production shall be submitted to the Foreign Exchange Administration Commission (Cadivi), Venezuela's exchange control board.

As set out in Venezuelan Official Gazette 39,980 issued on August 7, 2012, "rolled or sheet newsprint" may be imported with foreign currency authorized by Cadivi at the official exchange rate of VEB 4.30 per US dollar only after the Venezuelan Ministry of Industries issues the aforementioned certificates.

The newsprint tariff item was changed from group n1 to group n2. Upon the implementation of the recent amendment, 5,881 tariff headings are included in group n2. Before the amendment, group n2, as established in 2010, was comprised by 5,826 tariff headings only.

Similarly, worries within the Venezuelan pharmaceutical industry arose upon the move. First results from an analysis conducted by the Pharmaceutical Industry Chamber (Cifar) show that 70% of finished products have been transferred from group n1 to group n2.

Ángel Márquez, director at Cifar, dismissed the amendment and stressed that imports will take longer. He regretted the fact that the decision was not discussed with drugs manufacturers before its implementation.

Translated by Jhean Cabrera