COMMISSION OF FOREIGN EXCHANGE ADMINISTRATION IN VENEZUELA - CADIVI
Since February 05th 2003, there is a foreign exchange control regime in place in Venezuela, and the business activities in Venezuela or with companies based in the country have had to adapt to it. The Venezuelan Government decided to establish the foreign exchange control regime because of the interruption of the foreign exchange cash flow into Venezuela. Despite the international reserves of the country increased the last past years the Government has no plans to eliminate on the next year the exchange control.
For the issue and application of the foreign exchange control provisions, the Government created a special agency called Commission of Foreign Exchange Administration (CADIVI, after the Spanish initials of Comisión de Administración de Divisas). CADIVI has the powers to issue general regulations, called "Providences", on the requirements for the purchase of foreign currency; to issue or deny authorizations to purchase foreign currency and to verify and control the use of the foreign currency, the purchase of which from the Central Bank of Venezuela it has authorized. CADIVI has issued a number of Providences on the requisites and procedures for the purchase of foreign currency for the different kinds of operations (imports, foreign investments, foreign debt, technology transfers, etc.), covered by the Foreign Exchange Agreement N° 1, which is the main body of rules of the foreign exchange control regime. (www.cadivi.gob.ve)
All individuals and companies interested in purchasing foreign currency from the Central Bank of Venezuela must firstly register with CADIVI at the Registry for Users of the Foreign Exchange Administration System (RUSAD, after the Spanish initials of Registro de Usuarios del Sistema de Administración de Divisas). The registration with the RUSAD entails the choice by the interested party of a bank that has been authorized for that purpose by CADIVI, as the "authorized foreign exchange operator". All dealings with CADIVI have to be made through an authorized foreign exchange operator (Bank). Most local banks have been authorized by CADIVI as such operators. To register with the RUSAD the interested party must fill in a form obtained from the web page of CADIVI and present it to the authorized foreign exchange operator of its choice, along with the application for the first Authorization for the Acquisition of Foreign Currency (AAD, after the Spanish initials of Autorización para la Adquisición de Divisas) and a number of documents that include the identification data of the individual or company that request the registration; its financial statements for its last fiscal year and the proof of payment of the Income Tax, VAT and other national documents.
The Commercial area of the Danish Consulate in Caracas, through the Economic area of the European Commission Delegations in Caracas participate in a monthly meeting with CADIVI, where all the Commercial advisors of the European diplomatic Missions, discuss the special cases that the European Companies had sent to their diplomatic missions. This is a Service that has been very useful for the European Companies after the Exchange control has been established and also the companies that would like to started business in Venezuela and require information about the Acquisition Foreign Currency process.
Interested companies in more information about this matter please contact the Commercial Section of the General Consulate of Denmark: e-mail: firstname.lastname@example.org