Direct Sales

by C.R. & F Rojas Abogados

Import Restrictions and Requirements

Bolivia does not restrict imports of goods, except for sugar and flour, which are protected national products. Imports of chemical products that can be used in the manufacture of narcotics and weapons (but are legal substances themselves) require special permits.

Except for products potentially harmful to public health, there are no special regulations for imports. The Ministry of Public Health grants a special registration for the importation of pharmaceutical products. Imports of animals or plants require a health certificate from the country of origin.

Capital goods are subject to an import duty of 5% on CIF value plus 10% of the Value Added Tax (VAT), a 2% transaction tax, a 0.5% warehouse fee and a 1.5% customs broker’s fee. Imports of non-capital goods are subject to a 10% import duty, plus the VAT, transaction tax and the other charges. The importation of vehicles, radios, jewelry and electronic equipment for domestic use is subject to a 10% tax (Special Consumer Tax).

General Import Regulations

The invoice for imported goods which do not require any consular visa must be presented to customs authorities. All imports must be verified as to their quantity, quality and price by foreign companies contracted by the Government. The bill of lading and a certificate from the contracted companies must be presented at the port of entry.

Insurance and letters of credit are optional.

Importers must be individuals or companies established in Bolivia and duly registered before the Tax Office.

Taxes on Direct Sales

Direct sales to Bolivia from abroad are subject to the same import and tax regulations for agents or distributors of foreign companies in Bolivia.

International Conventions

• Bolivia is a signator to or a member of the following international trade groups, agreements and pacts:
• GATT, since 1990 (Law 1156)
• ALADI group (Latin-American Association of Integration)
• Convention of the Countries of the Southern Cone
• Andean Pact (the regulations of the Andean Pact have not been implemented in Bolivia due to the free market that already exists and the free exchange for foreign currencies)
• General System on Preferences (GSP), since February 15, 1989 (Law 1053)
• International Monetary Fund (IMF), since 1949
• Inter-American Development Bank, since 1959
• Corporación Andina de Fomento
• International Court of Justice (ICJ), since 1935
• International Committees on Tin, Coffee and Sugar (London)
• Multilateral Investment Guarantee Association (MIGA), executed in Washington, D.C. on May 6, 1986, ratified in Bolivia with the passage of Law 1126, January 19, 1990.
• Agreement of Incorporation of the Inter-American Investment Corporation

To protect foreign investments, Bolivia has signed agreements with Belgium, Luxembourg, Italy and Spain.

Trade Disputes

Bolivia has generally had no trade disputes with other countries, including the United States. International trade disputes can be submitted to arbitration. The respective contracts specify the applicable law, place of arbitration and how arbitrators will be chosen. The International Chamber of Commerce of Paris and the American Association of Arbitration in New York have been used in the past.

The law firm of C.R. & F. Rojas Abogados is located in La Paz. The law firm's practice areas include corporations, banking, tax and contracts.