RESTRICTED
WORLD TRADE G/TRIMS/N/1/VEN/1
12April 1995
ORGANIZATION(95-0914)
Original: Spanish Committee onTrade-Related Investment Measures
NOTIFICATION UNDER ARTICLE 5.1OFTHE AGREEMENT
ONTRADE-RELATED INVESTMENT MEASURES
Venezuela
Thefollowing communication, dated 31March 1995, hasbeenreceived fromthePermanent
Mission ofVenezuela.1
_______________
(i) Description ofthemeasure anditsmain features:
On13September1993,intheframeworkoftheCartagenaAgreement,andinparticularpursuant
toChapter IV,Section B,Colombia, Ecuador andVenezuela signed theComplementarity Agreement
fortheAutomotive Sector withtheobject ofadopting acommon policy topromote specialization in
thesectorandtakeadvantageoftheextendedsubregionalmarketinarationalmannerandunderequitable
competitive conditions.
InVenezuela, theNational Executive issued theRules fortheDevelopment oftheAutomotive
Industryon22December1993.TheseRulesrequirevehicleassemblyenterprisestoincludeapercentage
oflocal content invehicles assembled inthecountry. Thispolicy ismade more flexible atthe
subregional level, withassembly enterprises being required toinclude aminimum percentage ofcontent
produced inthesignatory countries totheAgreement, rather thanlocalcontent.
1. Thecategory intheillustrative listunder which themeasure falls.
Inaccordance withthelistintheTRIMS Agreement, themeasures fallunder thecategory
indicated inparagraph 1(a).
2. Whether theTRIM isapplied bytheGovernment under discretionary authority or
mandatory legislation?
TheTRIM hasbeenapplied pursuant tothefollowing legislation: Decree No.3.303, dated
22December 1993 (Official Gazette No.35.386, dated 21January 1994); Decree No.121,dated
13April 1994 (Official Gazette No.35.455, dated 6May1994); andResolution No.0001 issuing
1Theresponses inthisnotification respond tothepoints contained intheagreed format fornotifications under
Article 5.1,circulated indocument G/TRIMS/1.G/TRIMS/N/1/VEN/1
Page2
Rules fortheDevelopment oftheAutomotive Industry, dated 2January 1995 (Official Gazette
No.35.624, dated 4January 1995).
3. Where theTRIM isgeneral innature, what arethecriteria determining towhich
enterprises itapplies?
TheTRIM applies toallnational orforeign vehicle assembly enterprises inVenezuela.
4. Where theTRIM isapplied pursuant tomandatory legislation, doesthelegislation require
themeasure tobeapplied tonewenterprises ornewinvestments ofexisting enterprises?
Boththeabove-mentioned Decree No.3.303 andResolution No.0001 areapplicable toall
assembly enterprises (national orforeign) inthecountry andtoanyothers which maybeestablished
infuture.
5. Whether compliance withthemeasures byenterprises is(a)mandatory orenforceable
under domestic laworadministrative rulings or(b)necessary toobtain anadvantage?
Inthelatter case, describe thenature oftheadvantage.
Compliance withthemeasure bytheenterprise ismandatory toobtain anadvantage. This
advantage consists ofbeing abletomake useofthespecial importation régime (CDK Régime), under
which theimported inputs fortheassembly ofvehicles aresubject toadutyof3percent(3%).
6. When theTRIM relates tospecific products, provide sufficient detail onthese products
todefine thescope ofthemeasure.
Thepercentages forminimum content apply totheassembly oftwocategories ofvehicles:
(a) Category 1,which includes: automobiles, theirchassis fitted withengines andbodies;
motor vehicles designed totransport amaximum of16persons including thedriver;
andgoods vehicles withatotalmaximum loaded weight ofupto4.537 tons.
(b) Category 2includes allmotor vehicles notcovered byCategory 1.
7. Thedateofimplementation oftheTRIM andthenature ofanymodification oftheTRIM
effected within 180daysprior totheentry intoforce oftheWTO Agreement.
Themeasure hasbeenapplicable inVenezuela since theadoption ofDecree No.3.303 of
22December 1993. Resolution No.0001, dated 2January 1995, established anewformula forthe
calculation ofcontent andrequirements onincorporation ofparts pursuant totheprovisions ofthe
Addendum totheComplementarity Agreement fortheAutomotive Sector, signed inMay1994.
8. Whether theTRIM, asapplied under domestic law,includes provision foritsphasing-down
and/or elimination?
Noprovision ismade foritsphasing-down and/or elimination.
9. Thedomestic law,regulation oradministrative guideline under which theTRIM isapplied;
acopyshould besubmitted totheSecretariat tobeavailable forinspection byinterested
Members.G/TRIMS/N/1/VEN/1
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Copies areattached ofDecree No.3.303, dated 22December 1993, Decree No.121,dated
13April 1994, andResolution No.0001, dated 2January 1995.2
10. ThelevelofGovernment applying theTRIM, thename oftheimplementing agency and
anyinformation ontheprocedures governing itsapplication necessary toenable itsnature
andscope tobeunderstood.
TheMinistry ofDevelopment isthegovernment bodyresponsible formonitoring compliance
withtheTRIM,forwhichpurposeitrequiresaminimumofonereporteverysixmonthsfromassemblers
foreachcategory andonereport eachyearestablished byentities specializing inaudit andcontrol,
engaged directly bythemanufacturing enterprises inthesector andinaccordance withtheprovisions
thatmaybeestablished.
(ii) General information oftheprogramme inquestion.
Thepolicy ofsupport totheautosector ispursued byVenezuela intheframework ofthe
Complementarity Agreement fortheAutomotive Sector oftheAndean Group, which isdesigned as
ameasure toincrease thecompetitiveness andefficiency oftheregional automotive industry.
2CopiesofthesedocumentsareavailableforinspectionbyinteresteddelegationsintheSecretariat(Intellectual
Property andInvestment Division).