Embassy of the United States Caracas, Venezuela

Much information can be found in the Venezuela Country Commercial Guide (CCG). The version that is currently on-line is somewhat outdated. We are working to update it and it will be posted as soon as it is available.

As of August 2006, the United States Government ceased to authorize the export of defense articles and defense services to Venezuela pursuant to section 38 of the Arms Export Control Act. The Department of State revoked all licenses and approvals authorizing the export of or other transfers of defense articles or services to Venezuela. This action also precludes the use in connection with Venezuela of any exemptions from licensing or other approval requirements included in the International Traffic in Arms Regulations (ITAR) [22 CFR parts 120-130), with the exception of the license exemptions at section 123.17 of the ITAR for exports of firearms and ammunition to Venezuela when for personal use by individuals (not for resale or retransfer, including to the Government of Venezuela) and the firearms will be returned to the United States. 

In May 2011, the Secretary of State decided to impose sanctions on Venezuela’s national oil company, Petroleos de Venezuela (PDVSA), for delivering at least three cargoes of reformate, a blending component for gasoline, to Iran between December 2010 and March 2011. The sanctions were imposed under the Iran Sanctions Act of 1996, as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Action (CISADA) of 2010. They prohibit PDVSA from competing for U.S. Government contracts, securing financing from the Export-Import Bank of the United States, and obtaining export licenses. The sanctions do not, however, apply to PDVSA subsidiaries and do not prohibit the export of crude oil to the United States.

The foreign exchange picture in Venezuela is particularly complex. This complexity can make it difficult for Venezuelan importers to obtain foreign exchange in a timely fashion. 

Background

The Chavez Administration first implemented foreign exchange controls in February 2003, creating the Commission for the Administration of Foreign Exchange (CADIVI) to regulate the purchase and sale of foreign currency at the official exchange rate. A Foreign Crimes Law, first published in 2005 and amended in December 2007, established criminal penalties and fines for transactions made outside the official foreign exchange process, i.e., CADIVI. However, bond operations were not covered by the law which led to the creation of a “parallel foreign exchange” or “permuta” (swap) market, which was essentially a currency exchange market that operated through the mechanism of bond swaps. Following a rapid increase in the “permuta” exchange rate in the spring of 2010, President Chavez declared the market to be illegal in May. At that time, local analysts calculated that some $80-$120 million in bond swaps was being transacted on a daily basis. 

Legal Alternative Exchange Market

In June 2010, the Venezuelan government created an alternative exchange market called the Transaction System for Foreign Exchange or SITME. SITME operates via a bond swap mechanism under the auspices of the Venezuelan Central Bank; users access it through authorized Venezuelan financial institutions. The Central Bank buys bonds issued by the national oil company PDVSA or other government entities at the official Bs. 4.3 Bs/$1 exchange rate and then sells them at terms that allow local investors to obtain an implicit exchange rate of Bs. 5.3/$1. Companies are limited to transactions of $50,000/day or a monthly total of $350,000 through the SITME system which is generally inadequate for larger companies. 

Current Exchange Options in Venezuela

Currently, Venezuelan importers generally have three options for accessing foreign exchange in Venezuela. First, there is the CADIVI system. In practice, however, CADIVI is largely limited to imports, such as for food and medicines, that are deemed to be priorities by the government. The importer must also obtain a complex series of documents such as a Certificate of Non-Production etc. Secondly, there is the SITME system. As noted above, access to SITME is limited to transactions of $50,000/day or a monthly total of $350,000. Thirdly, importers can sometimes purchase dollar denominated bonds sold by PDVSA or other government entities. These sales are irregular, however, and cannot be planned. 

Please review the Country Specific Information for Venezuela located at the following website: http://travel.state.gov/travel/cis_pa_tw/cis/cis_1059.html. If you decide to visit Venezuela, please do register with us by checking the information in the Embassy website at:http://caracas.usembassy.gov/citizen-service/emergency-contact/register-with-the-embassy/ or at the State Department website: https://travelregistration.state.gov/ibrs/ui/ in order to allow the Embassy’s American Citizens Services Unit to better help and serve you, especially in the event of an emergency or disaster.

Amercian Citizen Services (ACS) Hours of Operation 
The American Citizens Services Unit is open from 08:00 a.m. to 10:30 a.m. every day for routine services including passport services, U.S. citizen registration, reports of birth abroad and voter assistance.  The section is closed on Venezuelan and U.S. holidays and on the last Thursday of the month. 

For emergencies including cases involving serious illness or injury, death, and victims of serious crime, the ACS Unit is available 8:00 a.m. to 5:00 p.m., Monday through Friday. For emergencies after hours, please call (58)(0212) 907-8400.

You may also call the ACS Unit at (58) (0212) 907-8365 or send a fax at (58)(0212) 907-8199 between 8:00 a.m. and 5:00 p.m., Monday through Friday, for routine inquiries. For emergencies after hours, please call (58)(0212) 907-8400. The U.S. Embassy is located at: Calle F con Calle Suapure, Urb. Colinas de Valle Arriba, Caracas 1060, Venezuela.

Here are some tips for traveling abroad:http://travel.state.gov/travel/tips/tips_1232.html (e.g. check your overseas medical insurance coverage, buy a round trip ticket, etc). For Emergency Services, please follow this link:http://caracas.usembassy.gov/citizen-service/emergency-contact/emergency-services/ For professional services such as a list of lawyers, medical information, transportation services, etc within Venezuela, please follow this link: http://caracas.usembassy.gov/citizen-service/professional-services/

If you need any other information or clarification please feel free to contact us.

If you have any questions, please address them to:

Economic Section
U.S. Embassy Caracas
Phone: +58 (212) 907-8402
Fax: +58 (212) 907-8033
CaracasEcon@state.gov

Please subject any e-mails as "U.S. Business Commercial Inquiry" to facilitate correspondence. Provide the following information:

Organization Information

1. Organization Name: Please list the official name of your firm or organization
2. Does your organization operate in the United States of America?: Yes or No
3. Are your organization's headquarters in the United States of America?: Yes or No
4. Does your organization currently have operations or have a representative in Venezuela?: Yes or No
5. Is your organization interested in having future operations in Venezuela?: Yes or No

Point of Contact for Organization

1. POC First Name
2. POC Middle Initial
3. POC Last Name
4. POC Position
5. POC Office Phone
6. POC Mobile Phone
7. POC E-mail:
8. POC Mailing Address

Sectoral Information and Offerings

Please indicate in which sector your organization operates and what products or services your organization offers. This will be helpful as we can organize the information by sector.

In which sector(s) does your firm offer services?: List all that may apply.

1.  Building Products and Construction
2.  Consumer Goods
3.  Defense Services and Products
4.  Energy, Utilities, and Environmental Technologies
5.  Financial Services
6.  Health Services, Equipment, and Supplies
7.  Information and Communication Technologies
8.  Machinery
9.  Natural Resource Extraction and Processing
10.  Security
11.  Services
12.  Training (English language, Vocational, Medical/First Aid, Security, etc.)
13.  Transportation Equipment (Aerospace, automotive, locomotive, etc.)
14.  Waste Management
15.  Other:

Products and Services

Please provide a brief synopsis of products and services your organization may provide in the indicated sectors above. If a particular product or service falls in multiple sectors, please list it in each of the applicable.

The Venezuela Country Commercial Guide (CCG) lists the leading sectors for U.S. exports and investment in Venezuela.

Access Chapter 1: Doing Business in Venezuela for a brief synopsis of the information contained in this comprehensive report.

Foreign and domestic investors have free and equal rights to establish and own businesses in Venezuela, or to acquire and dispose of interest in businesses without discrimination. An individual must be appointed as the company's legal representative, but assignment of capital to a branch office is not necessary.

You will find further information about establishing a company in Venezuela in Chapter 3 of the Venezuela Country Commercial Guide (CCG), which deals with Selling U.S. Products and Services. Access Chapter 1: Doing Business in Venezuela for a brief synopsis of the information contained in this comprehensive report.

You will find a summary of the most important Venezuelan import regulations and import restrictions in Chapter 5 of the Venezuela Country Commercial Guide (CCG), Trade Regulations and Standards. Access Chapter 1: Doing Business in Venezuela for a brief synopsis of the information contained in this comprehensive report.

Advertising in local trade publications is an excellent way to gain market exposure for your product or service in Venezuela. You will find a brief list of the leading Venezuelan newspapers and business magazines Chapter 3 of the Venezuela Country Commercial Guide (CCG), Selling U.S. Products and Services. Access Chapter 1: Doing Business in Venezuela for a brief synopsis of the information contained in this comprehensive report.

Please contact us for a list of business publications in your specific industry sector. We can supply detailed information, such as the publisher contact data, circulation, frequency, advertising rates, and more.

If your firm is having difficulties with a Venezuelan company, please feel free to contact us and provide detailed information about the situation, contact data, and documented proof of unsuccessful attempts at resolving the problem. We will analyze your case and provide assistance accordingly.

Please be advised that the Embassy, by its own initiative, does not intervene in questions arising from private transactions. It does however, attempt to clarify misunderstandings.

If you need legal advice, please contact us. We can provide you with a list of the major law firms located in Venezuela. Please take into account that the listing of a firm does not imply endorsement by the U.S. Department of Commerce or any other agency of the U.S. Government.

You will find information about "Food and Agricultural Import Regulations and Standards-FAIRS" in the Foreign Agricultural Service home page http://www.fas.usda.gov/. If you need additional information or assistance, you will find a live link to the web site of the Foreign Agricultural Service in Venezuela here.