Work president! Stop procrastinating/running for reelection!! | ¡Trabaje, presidente! ¡Deje de procrastinar/postularse para la reelección!

By Marco Antonio Belmonte, Vision 360:

Seven decrees still restrict the export of sugar, oil, meat, soybeans, and derivatives

Caneb believes that the liberalization of exports, at least for non-traditional products, can generate a greater inflow of foreign currency into the country.

El ministro de Economía, Marcelo Montenegro y los empresarios privados anunciaron acuerdos el 19 de febrero. Foto: Ministerio de Economía

Minister of Economy, Marcelo Montenegro, and private entrepreneurs announced agreements on February 19. Photo: Ministry of Economy

Despite the agreement reached on February 19 between the Government and private entrepreneurs to implement actions to improve the inflow of foreign currency, seven supreme decrees that regulate and restrict the free export of products such as meat, sugar, oil, soybeans, and derivatives are still in force in the country.

Marcelo Olguín, the manager of Caneb, informed Visión 360 that the seven decrees that still regulate exports are: 3920; 725; 29524; 1163; 4680; 1554; and 3443.

He explained that these regulations affect products from the oilseed complex such as soybeans, crude and refined oil, and beef. However, since the country needs foreign currency, the export sector believes that at least non-traditional exports should be liberalized.

The seven decrees that regulate exports

1. Supreme Decree 3920, May 29, 2019

Authorizes the export of soybeans equivalent to 60% of the previous year’s national production according to official data from the National Institute of Statistics (INE) after verifying sufficient supply and fair pricing in the domestic market, of the goods classified under the following tariff subheadings:

2. Decree 0725, December 6, 2010

The supreme decree aims to regulate the export of the following products after verifying sufficient supply in the domestic market and fair pricing: soybeans, meal from seeds or oil-bearing fruits except mustard meal; cake and other solid residues from the extraction of fats or vegetable oils; cake and other solid residues from the extraction of soybean oil; and sunflower seeds.

This regulation establishes that the Ministry of Productive Development and Plural Economy, based on technical verification reports presented by the Ministry of Rural Development and Lands, will issue the certificate of sufficient supply and fair pricing to natural and legal persons, public, private, national or foreign who request it.

The products subject to restriction must be registered in the Export Registry of the Ministry of Productive Development and Plural Economy.

3. Supreme Decree 29524, April 18, 2018

The decree aims to authorize the export of the following products, after verifying sufficient supply in the domestic market at a fair price: crude oil, sunflower oil.

This regulation stipulates that the Ministry of Production and Microenterprise, based on technical verification reports of internal supply at a fair price from the Production and Market Supply Information System (SISPAM) under the Ministry of Rural Development, Agriculture, and Environment, will issue the certificate of sufficient internal supply at a fair price to exporting companies that comply with the established requirements.

It clarifies that SISPAM’s technical reports will include information from the following verification sources: National Institute of Statistics (INE), National Service of Agricultural Health and Food Safety (Senasag), and Superintendency of Companies. Additionally, it emphasizes that the fair price for each product must be listed in the price band established by SISPAM, considering quality and price, with minimum and maximum levels, updated periodically.

4. Supreme Decree 1153, March 18, 2012

The regulation exceptionally authorizes, after verifying sufficient supply at a fair price, the export of beef up to a maximum of 2,000 tons, and hard yellow corn up to a maximum of 30,000 tons.

5. Supreme Decree 4680, March 9, 2022

The decree aims to authorize the issuance of internal supply and fair pricing certificates to regulate the export of corn, sorghum, and sugar.

The regulation stipulates that the Ministry of Productive Development and Plural Economy, based on technical verification reports of internal supply at a fair price presented by the Ministry of Rural Development and Lands, as applicable, will issue the certificate of internal supply and fair pricing to natural and legal persons, public, private, national, or foreign who request it.

At the time of the approval of Supreme Decree 4680, the Minister of Productive Development, Néstor Huanca, assured that the regulation guaranteed the supply of strategic food at a fair price in the national market, such as sugar, milk, eggs, and meats of chicken, pork, and beef.

He detailed that the approval of this decree means that the destination of corn and sorghum will be prioritized for the livestock sector, so there will be no sales of these grains to the foreign market until December 31 of this year.

6. Supreme Decree 1554, April 11, 2013

The decree stipulates that before the start of the harvest, the Ministry of Productive Development and Plural Economy will quantify the production volume necessary for domestic market supply and the mandatory security inventory, based on the homologated harvest plans and the monthly sales projections to the domestic market declared by the sugarcane agricultural and agro-industrial sectors, and estimate if there is an exportable surplus.

If it is determined that there are exportable surpluses, the Ministry of Productive Development and Plural Economy will issue export licenses, according to the property rights of the sugarcane agricultural and agro-industrial sectors.

The sugarcane agricultural and agro-industrial sectors must obligatorily report production, internal and external sales biweekly according to the format established by the Ministry of Productive Development and Plural Economy.

With this decree, the export license for sugarcane, its main products, and by-products of sugarcane is created as a supporting document for the Single Export Declaration.

7. Supreme Decree 3443, December 27, 2017

The decree stipulates that to control internal supply and fair pricing, the Agro-environmental and Productive Observatory of the Ministry of Rural Development and Lands, in coordination with the Vice Ministry of Internal Trade and Exports of the Ministry of Productive Development and Plural Economy, will periodically evaluate the internal supply and fair pricing conditions of the products: fresh or chilled bovine beef and frozen bovine beef.

It clarifies that in the event of a potential risk of changing adequate internal supply and fair pricing conditions, the Ministry of Rural Development and Lands and the Ministry of Productive Development and Plural Economy, through a bi-ministerial resolution, will order the issuance of the Certificate of Internal Supply and Fair Pricing, which will be considered a supporting document for the export declaration of bovine beef.

    Commitment

    The National Chamber of Exporters of Bolivia (Caneb) considers that, given the need for dollars to enter the country due to the drop in Net International Reserves (RIN), these regulations that impose limits on foreign sales should be repealed, after guaranteeing internal supply and provided there are surpluses, and establish the issuance of certificates of sufficient internal supply and fair pricing by the Ministries of Productive Development and Rural Development.

    On February 19, the Minister of Economy and Public Finance, Marcelo Montenegro, presented the ten measures of the “Economic, Productive, and Entrepreneurial Agreement between the National Government and the Bolivian Business Sector” aimed at normalizing the temporary dollar shortage scenario, as well as opening dialogue and negotiation scenarios to generate positive expectations that will lead to greater production and income for the benefit of the population.

    This agreement comes after both sectors held a meeting on Friday, February 16, 2024, where they decided to find joint solutions to the dollar shortage and speculation.

    Montenegro then reported that the first measure was the liberalization of exports with expedited procedures. “Exports of products that previously had to undergo a lengthy process for an internal supply certificate at a fair price are now liberalized (…) always ensuring there is a commitment to supply the national market,” he stated.

    The second measure involved the immediate reinstatement of Tax Refund Certificates (Cedeims), upon delivery of foreign currency from exports.

    Exports Decline

    From January to February 2024, national exports (excluding re-exports and personal effects) reached 1,247.4 million dollars, a figure 377.9 million less than in the same period in 2023, when it reached 1,625.3 million dollars, representing a decrease of 23.3%.

    This behavior is explained by the negative variations in the economic activities of hydrocarbon extraction by 26.1% and manufacturing by 36.8%.

    Meanwhile, external sales of agriculture, livestock, hunting, forestry, and fishing increased by 9.1% and mineral extraction by 7.0%.

    Leave a comment