Venezuela

Reaching the consumers

Marketing opportunities

Consumer behavior

The Venezuelan consumer pays attention to the brand of the product he is buying. Most buyers pay attention to price and make a difference between national and foreign products, whatever the range of the product. We can notice that a lot of consumers prefer to sacrifice quality for a lower price. In this environment, loyalty to a brand fades away before a cheaper product, or one which seems to give better value for money. Today, the consumer tends to plan and prioritize his spending according to importance. He also chooses the outlet which seems to offer him the most promotional advantages.

Consumer profile and purchasing power

A large part of the population is still living under the poverty line: 37.9%. With the economic crisis of the early 2000s, the population's consumer models have changed. The well-off classes make up a permanent breeding-ground; they consume great quantities of electronic and luxury goods. Yet, we must note that since 2004-2005, household consumption has increased with the return of economic growth. Regarding consumer habits, Venezuelans consume a lot of beer (national), cigarettes, fast food or take-aways. Women go frequently to beauty centers, and buy large quantities of beauty products, accessories and clothes.

Consumers associations

Consumer Organization
Federation of Consumer Associations
National Consumer Alliance

Main advertising agencies

List of agencies
FEVAP: Venezuelan Federation of Advertising Agencies

Distributing a product

Market shares

Sambil, Almacenes Exito

Market access procedures

International Conventions

Party to the Montreal protocol on Substances that deplete the Ozone Layer

Main International economic cooperation

Venezuela is part of the WTO, the World Bank, the CEPALC: Economic Commission for Latin America and the Caribbean, the ALADI: Latin American Integration Association, the MCCA (CACM): Central American Common Market. It has signed the Promotion and Protection of Investment Agreement of 1993, and is a partner of MERCOSUR. The country withdrew from the Andean Community, which brings together several countries of the Southern Cone, in 2006.

Non tariff barriers

Some export controls are seldom used. Some mineral resources may be controlled when exported. Re-export of equipment goods is normally not allowed except if the import is temporary.
Import licenses are rarely obligatory, but some products are subject to an import license: firearms and explosives require an import license from the Ministry of the Interior.
Import certificates are required for certain products subject to special control. All foodstuffs and agricultural imports are subject to obtaining health and phytosanitary certificates to be allowed to be exported.
Medicines, food products and cosmetics need to be registered with the Ministry of Health.
If alcohol products are imported, a label has to be fixed around the corking system of the bottle. Imported cigarettes must also undergo this procedure.

For further information, visit the website of the Commission for Currency Administration.

Customs duties and taxes on imports

12%

Customs classification

Import taxes Customs duties are contained between 5 and 20% (there are certain exceptions like private vehicles: 35%). On average: 12%. The tax on wholesale transactions is 16.5% (on CIF price + import duty + Customs charges). In the free zone of Margarita, this duty is applied only to services. The duty on luxury products ranges from 10 to 20% , depending on the product. This duty is calculated on the result of the wholesale tax mentioned above. There is a specific tax for oil products and their derivatives. The import of private second-hand or new vehicles, but not pertaining to the current year, is prohibited except for a private person within the framework of his changing residence, and it is the same for second-hand clothes or used tires. The import of pork meat and its derivatives is prohibited. Within the framework of the WTO, compensatory duties are established on basic agrifood products: milk, certain cheeses, cereals... Dumping duties are applicable to some products such as jeans originating from China.

Import procedures

Observations: The exporter is advised to follow the importer's instructions and for products requiring registration (food products, pharmaceuticals and perfumes), to ensure that the procedures have been carried out before shipping. On the whole, procedures are quite slow and the Venezuelan importer must provide a certain number of documents with the collaboration of the exporter.

 

To know what import procedures are, see the Commission for Currency Administration:

Importing samples

Samples may not exceed 30 centimeters. Pure chemical products and alcoholic sweets cannot be considered as samples. Samples are exempted from customs duty.

For further information

Aduanas de Venezuela

Organizing goods transport

Main useful means

The road network is very widespread and a lot of goods transit by truck. Goods travel by plane or by boat from La Guaira, Puerto Cabello or Maracaibo. Basic industrial products pass through Matanzas and Puerto Ordaz. Oil and gas by Amuay, Puerto la Cruz, Punta Cardon, El Tablazo, Bajo Grande and La Salina.

Ports

The airline company Avensa
The airport of Caracas

Airports

Ministry of Infrastructures

Sea transport organizations

Ministry of Infrastructures

Air transport organizations

National Institute of Civil Aviation (INAC)

Road transport organizations

Ministry of Infrastructures

Rail transport organizations

Ministry of Infrastructures

Identifying a supplier

Type of production

For the year 2006:

 

-the sectors of agriculture, fishing, hunting and forestry represented 13.6% of  the GDP. Agricultural exports represent 3% of their total. The country's weakness lies in its need to import more than 70% of its agricultural products, despite having diversified the national agricultural sector. Venezuelan agriculture is far from having attained its full productivity, given the surface and the richness of its soil.

-the oil industry, representing 80% of the exports, also represents 50% of fiscal returns and 25% of the total GDP.  Despite stagnating production, the prices on the international market are rising in this sector. The concern is however that in the coming years we will see a deterioration of the oil infrastructures: the striking increase of the governmental taxation of oil company PDVSA's profits leaves it with few means to maintain its costly infrastructure or to continue prospecting in areas that are difficult to reach.

- the manufacturing industry's share, including mining, construction and public service, was 28.8% of the GDP. Construction sector has been improving its activity during the last four years, largely due to big construction projects launched by the government.

- the service sector represents 57.6%

The manufacturing sector alone has provided 19.8% of the GDP. This sector is impeded by the lack of private investment. Main productions are iron work and aluminium work, textile and clothing, which have been growing for several years. These are dynamic sectors driven by exports, by the improving productivity and by the restarting of interior consumption. Food preparation is hampered by the growth of imports and by the price control imposed by the government on products of vital need. Cement and automobile industries are dynamic branches and the State encourages investment in this sector.

Business directories

GUIA , Directory of companies and institutions rechercher

Manufacturers associations of the main industries

Association of the plastics industry
Association of the chemical industry

Trade Agencies and their representations abroad

Chamber of Commerce and Industry
Chamber of Commerce of Caracas

Enterprises federation

Association of very small, small and medium enterprises