In the Official Gazette No. 6,890 Extraordinary, dated March 6, 2025, Decree No. 5,104 of the same date (Customs Exemptions Decree - the “Decree”) was published, issued by the Presidency of the Republic. This Decree establishes import tax and value-added tax exemptions for the goods and sectors specified therein.

The exemptions established by the Decree are as follows:

A 90% exemption from Import Tax and a 90% exemption from Value-Added Tax is granted for the definitive importation of new or used tangible personal property classified under the tariff codes listed in Appendix I of the Decree. These imports must be carried out by agencies and entities of the National Public Administration or by natural or legal persons using their own resources. (Art. 3). This tax benefit applies automatically. Import Tax and Value-Added Tax are exempted for the definitive importation of tangible personal property classified under the tariff codes listed in Appendix II of the Decree, provided that the imports are carried out exclusively by the Ministry of Popular Power for Electric Energy or its affiliated agencies and entities. (Art. 4) Import Tax and Value-Added Tax are exempted for the definitive importation of tangible personal property classified under the tariff codes listed in Appendix III of the Decree, provided that the imports are carried out exclusively by the Ministry of Popular Power for Water Services or its affiliated agencies and entities. (Art. 5) Import Tax and Value-Added Tax are exempted for the definitive importation of tangible personal property classified under the tariff codes listed in Appendix IV of the Decree, provided that the imports are carried out exclusively by the Ministry of Popular Power for Ecological Mining Development or its affiliated agencies and entities, as well as those carried out exclusively by the Venezuelan Corporation of Guayana (CVG) or its affiliated companies. (Art. 6)

The Decree states that, in order to benefit from the exemptions established in Chapter II (On Exemptions), beneficiaries must comply with the common requirements specified in Chapter III when registering their declaration. (Art. 7)

The exemption benefit provided in the Decree will apply as of the date of registration of the respective Customs Declaration for importation. (Art. 15)

Failure to comply with any of the conditions by the beneficiaries will result in the loss of the exemption benefit established in the Decree. In such cases, the imported goods subject to the benefit will be considered taxable, without prejudice to any applicable penalties. (Art. 16)

Likewise, the exemption benefit will be revoked for those who: (i) fail to comply with the periodic evaluation requirements established in Articles 13 and 14 of the Decree and the parameters set by SENIAT; (ii) fail to comply with the obligations established in the Constituent Decree enacting the Organic Tax Code and other tax regulations, as well as in the Organic Customs Law; (iii) fall under any of the cases specified in Article 177 of the Organic Customs Law. (Art. 17)

Without prejudice to the provisions of the Decree, the National Executive may issue the Certificate of No National Production (CNP) or the Certificate of Insufficient National Production (CPNI) in accordance with the Law on Value-Added Tax, even if the goods for which the certificate is issued are classified under one of the tariff codes contained in Appendix I of the Decree. (Art. 18)

The Minister responsible for economy, finance, and foreign trade may, by resolution, add or remove tariff codes from the Appendices of the Decree, as well as create or eliminate Appendices. (Art. 19)

The exemption benefits established in the Decree will apply from its effective date until June 30, 2025. (Art. 22)

Decree No. 5,071 of December 27, 2024, published in Official Gazette No. 6,869 Extraordinary of the same date, is repealed. (Art. 23)

The Decree came into effect five (5) business days after its publication in the Official Gazette.

If you have any questions or comments regarding this matter or require further information, please contact the partner in charge of your account via email.

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In Official Gazette No. 6,890 Extraordinary, dated March 6, 2025, Decree No. 5,103 of the same date was published, enacting the Partial Reform of Decree No. 4,944, dated April 24, 2024, which was published in Official Gazette No. 6,804 Extraordinary on the same date.

The Decree includes the following modifications:

Articles 8, 10, and 21 have been amended, which previously stated that the entity responsible for administering exemption certificates was the Ministry of Popular Power responsible for Industry. This responsibility has now been transferred to the Presidential Commission, which is now a permanent body named the "Foreign Trade Committee." Column 4 (Ad Valorem Tariff) of Article 37 has been modified, but only for the subheadings indicated in this article that pertain to the Pharmaceutical Sector. These subheadings will be subject to the Common External Tariff established in the Reform, which will be applied preferentially and immediately over the rate reflected in column 3 of the same article. The nomenclature of the subheadings contained in column 2 (Description of Goods) and the Common External Tariff set forth in column 4 (Ad Valorem Tariff – Ex. CET) of Article 37, corresponding to the Pharmaceutical Sector, have been modified. The nomenclature of the subheadings contained in column 2 (Description of Goods), the Common External Tariff in column 4 (Ad Valorem Tariff – Ex. CET), the Legal Import and Export Regime in columns 5 and 6, and the Physical Units in column 7 have been modified. Column 5 (Legal Import Regime) of Article 37, which enacts the Customs Tariff, has been modified only for the subheadings indicated in the Reform. These subheadings will now be subject to the Legal Regime set forth in the Reform. New Supplementary Notes have been added to Chapters 33, 34, 38, and 87 of Article 37, which enacts the Customs Tariff. Supplementary Note 1 of Chapter 87 of Article 37, which enacts the Customs Tariff, has been modified. Note 6 of Subchapter I of Chapter 98 of Article 37, which enacts the Customs Tariff, has been modified. This note concerns the importation of goods by legal entities whose economic activity pertains to the automotive sector. These entities may be eligible for exemption from the Common External Tariff specified in columns 3 or 4, as well as from Value Added Tax, in the cases provided for in the Reform. It is stated that the duration of the VAT exemption will be subject to the currently valid Decree on Customs Exemptions. The issuance of Vehicle Assembly Material Certifications (MEIV) is now conditioned on authorized vehicles containing at least 50% national added value, duly validated through a joint authorization by the Foreign Trade Committee and the Ministry of Economy and Finance. The requirement for Legal Regime 9, related to the "Permit from the Presidential Commission, now a permanent body named the 'Foreign Trade Committee,'" is waived for a period of one year from the effective date of this Decree. However, this does not affect the provisions of Article 9 of the Reform. The Commission may extend this waiver.

This Decree will come into force five business days after its publication in the Official Gazette.

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L'UE IMPONE DAZI ANTI-DUMPING SUI FILATI IN FIBRA DI VETRO CINESI

La Commissione Europea ha introdotto dazi anti-dumping definitivi sulle importazioni di filati in fibra di vetro (GFY) dalla Cina, rafforzando il proprio impegno per un commercio equo e regolamentato.

Questa decisione segue un’indagine avviata il 16 febbraio 2024 ai sensi dell'Articolo 5 del Regolamento (UE) 2016/1036, in risposta a un reclamo presentato il 3 gennaio 2024 da Glass Fibre Europe, l’associazione che rappresenta l’industria europea del settore. Il reclamo evidenziava pratiche di dumping e danni economici significativi per i produttori UE, spingendo la Commissione ad intervenire.

Il 15 ottobre 2024, l'UE aveva già imposto dazi provvisori tramite il Regolamento di esecuzione (UE) 2024/2673. Dopo un'ulteriore analisi, il 18 marzo 2025 ha confermato le misure definitive per contrastare le importazioni cinesi a prezzi ingiustamente bassi, che stavano minando il mercato europeo.

I nuovi dazi, calcolati in percentuale sul prezzo CIF (Cost, Insurance and Freight) alla frontiera dell'Unione, al netto dei dazi, sono fissati al 26,3% per Henan Guangyuan New Material Co., Ltd. (uno dei produttori cinesi coinvolti nell’indagine) e al 56,1% per tutte le altre importazioni dalla Cina.

Le misure riguardano i filati in fibra di vetro, sia ritorti che non ritorti, ma escludono nastri di fibra di vetro, cordoni e filamenti tagliati. Questi materiali sono ampiamente utilizzati nella produzione di tessuti intrecciati, a maglia, intrecciati o senza cuciture, impiegati per rinforzare materiali cementizi (come la malta) o resine elastomeriche, termoplastiche e termoindurenti nell'industria dei compositi. Tra le principali applicazioni figurano componenti per automobili, batterie per veicoli elettrici, camion, autobus, treni, pale eoliche, aeromobili, isolamento edilizio, protezione da fumo e incendi, isolamento acustico, filtrazione (aria, metalli, polveri e liquidi) e isolamento elettrico.

I dazi entreranno in vigore alla data di pubblicazione nella Gazzetta Ufficiale dell'Unione Europea e resteranno validi per cinque anni, fino al 2030, salvo proroghe o revisioni.

Queste misure fanno parte della strategia dell’UE per contrastare le pratiche commerciali sleali legate all’iniziativa cinese Belt and Road, proteggendo le industrie e i lavoratori europei da distorsioni del mercato e garantendo condizioni di concorrenza eque nel commercio internazionale.

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On 26 February 2025, the Commission adopted the Communication on The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation.

This Framework seeks to accompany the Clean Industrial Deal by setting out how Member States can design State aid measures to support their objectives related to the Clean Industrial Deal.

The Commission announced in the Clean Industrial Deal Communication its intention to simplify State aid rules by adopting a new Clean Industrial Deal State aid Framework to accelerate the roll-out of renewable energy, deploy industrial decarbonisation and ensure sufficient capacity of clean tech manufacturing in Europe. With this consultation, the Commission seeks the views of relevant stakeholders on a draft for this framework to be adopted by June 2025.

The draft takes action on incentives for renewables, electricity storage and capacity markets, incentives for decarbonizing industry, green industry, and reducing the risks of private investment in these sectors. In some cases, incentives may be awarded directly to projects without the need for auctions.

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The Banco Nacional de Desenvolvimento Econômico e Social (BNDES), in collaboration with the Financier of Studies and Projects (Finep), has launched a public call for proposals to attract, establish, and expand Research, Technological Development, and Innovation (R&D&I) Centers in Brazil. This initiative is a key component of the "New Industry Brazil" strategy, a national policy aimed at fostering reindustrialization and technological advancement through six priority missions defined by the National Council for Industrial Development (CNDI).

Objectives

This public call seeks to enhance Brazil’s position as a center for scientific and technological development by promoting collaboration between public institutions, universities, research centers, and private enterprises. The program is designed to:

Drive research and technological innovation in key industrial sectors Strengthen Brazil’s competitiveness in science and technology Attract foreign investment in research and development Support the development of advanced infrastructure Foster the growth of highly skilled professionals in strategic areas

Eligibility

The call is open to:

Brazilian companies engaged in or planning to undertake R&D&I activities Foreign companies interested in establishing or expanding R&D&I centers in Brazil, subject to legal and administrative formalization in the country

Scope of Eligible Projects

The initiative supports the creation and expansion of laboratories, pilot plants, demonstration facilities, and innovation hubs dedicated to research and technological development.

Minimum requirements for participation:

Physical infrastructure New centers: Minimum area of 500 m² Expansion projects: Minimum area of 250 m² or a 20% increase over existing facilities Technical workforce New centers: At least 50 employees, of whom at least 10 must hold a master’s or doctoral degree Expansion projects: At least 25 employees, of whom at least 5 must hold a master’s or doctoral degree Investment thresholds Minimum R$10 million for centers in the North and Northeast regions Minimum R$20 million for centers in other regions Project implementation period: Up to 36 months

Funding and Strategic Impact

The initiative is supported by a total budget of R$3 billion, reinforcing Brazil’s commitment to technological advancement, industrial competitiveness, and economic development.

Application Process and Selection Criteria

Deadline for proposal submission: June 30, 2025 Evaluation criteria: Alignment with the objectives of the public call Financial capacity in relation to the proposed investments Contribution to the New Industry Brazil policy and its strategic missions

Further Information

This initiative provides a significant opportunity for institutions seeking to play a leading role in Brazil’s technological and industrial development. By participating, organizations will contribute to the country’s innovation ecosystem and the expansion of its research infrastructure.Public Call for selection of proposals for attracting, implementing or expanding research, technological development and innovation centers - english version

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Public Call for selection of proposals for attracting, implementing or expanding research, technological development and innovation centers - Portuguese version

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What is the Clean Industrial Deal?

Initiative of the European Commission Aims to transform decarbonization into a growth driver for European industries Seeks to combine climate and competitiveness Main focus on energy-intensive industries and the Clean-Tech sector Priority on circularity – the EU aims to be a leader by 2030 Six business drivers: Affordable energy Lead markets Financing Circularity and access to materials Global markets and international partnerships Skills

Access to affordable energy

Foundation of competitiveness Prices in Europe are much higher compared to trading partners The EU must advance to a fully integrated single energy market An Action Plan for Affordable Energy is adopted with goals: Lowering energy bills through agreements, counter guarantees, lower taxes, building networks, and state aid Accelerating the rollout of clean energy and electrification by cutting permitting times for the deployment of the grid, energy storage, and renewables projects with concrete measures in the upcoming Industrial Decarbonisation Accelerator Act Ensuring well-functioning gas markets, as the price of imported natural gas directly impacts gas and electricity prices. Therefore, a Gas Market Task Force was set up to scrutinize markets, and gas storage refilling will be better coordinated

Lead markets

Concrete measures are required on the demand side too, and the CID will put in measures for the demand to emerge Non-price criteria in public procurement and incentives for private purchases The future Industrial Decarbonisation Accelerator Act (IDAA) will introduce resilience and sustainability criteria to foster clean European supply in energy-intensive sectors The IDAA will develop a voluntary label on the carbon intensity content of industrial products based on methodology with ETS data with ongoing revision of the CBAM methodology Promote the uptake of renewable and low-carbon hydrogen Hydrogen has a central role in decarbonizing the EU energy system. The Commission will soon adopt a delegated act on low-carbon hydrogen

Public and private investments

The clean transition will require major investments. The EU needs to increase annual investments in energy, industry, and transport systems by around 480 billion EUR compared to the previous decade. Mobilizing and leveraging private capital are key. Strengthening EU-level funding The Innovation Fund has proven reliable for financing industrial decarbonization. The Commission will also propose a facility for industrial decarbonization based on the ETS Leveraging private investment InvestEU is the main EU-level tool to leverage private funding. The Commission is putting forward an amendment to increase its risk-bearing capacity. Work with the EIB on new initiatives will also take place. Clean Industry State Aid Framework Simplified rules will allow quick approval of state aid measures for decarbonization and clean-tech projects. Tax policies should not give fossil fuels an advantage over clean energy. Tax measures will be paired with further actions to scale down and phase out fossil fuel subsidies.

Circularity

Europe should be more strategic about procuring critical raw materials to drastically reduce exposure to unreliable suppliers and prevent supply disruptions Fast implementation of the Critical Raw Materials Act The Commission will set up a demand aggregation and matchmaking mechanism for critical raw materials As a second step, the Commission will set up a dedicated EU Critical Raw Material Centre Circular economy The Commission will adopt a Circular Economy Act in 2026, which will accelerate the circular transition enabling the free movement of circular products, secondary raw materials, and waste

Global markets

Achieving the objectives of the CID is closely linked to the ability to act internationally. The EU cannot realize its clean industrialization objectives without partnerships on the global stage. Clean Trade and Investment Partnerships The EU continues to sign, conclude, and fully implement pending Free Trade Agreements and takes forward ongoing negotiations for new ones. Clean Trade and Investment Partnerships (CTIPs) will complement these agreements Improving the Carbon Border Adjustment Mechanism The Carbon Border Adjustment Mechanism (CBAM) ensures that the EU’s industry emission abatement efforts are not undermined by carbon-intensive imports of goods produced outside the EU and incentivizes decarbonization and carbon pricing globally. In the second half of 2025, a comprehensive review of CBAM will be presented Promoting and protecting EU industry The EU needs to remain an attractive place to do business. The Commission will adopt guidelines by January 2026 on key concepts underpinning the Foreign Subsidies Regulation The Commission will continue to make fast and efficient use of Trade Defence Instruments such as anti-dumping or anti-subsidy duties where necessary

Skills and quality jobs

Every person, community, and business should benefit from the clean transition. CID therefore commits to delivering quality jobs Skills and quality jobs Industry needs better access to skills. The Commission will lay out a Union of Skills as an overarching skills strategy to support the development of a more resilient and adaptable education A Skills Portability Initiative will help ensure that a skill acquired in one country is recognized in another Supporting workers in transition To support workers in transition, the Commission will create a European Fair Transition Observatory The Commission will assess if the use of training and skills conditionalities for public support of the industrial transition can be increased Social leasing for clean products To ensure all Europeans benefit from the clean transition without adverse distributional effects and to help stimulate demand for clean products, the Commission will develop Guidance to Member States on social leasing for electric vehicles, heat pumps, and other clean products.

Implementing CID across sectors

The CID will serve as a framework for engaging in a dialogue with industries to develop sectoral transition pathways The Industrial Action Plan for the Automotive Sector will be adopted on March 5th. A steel and metals action plan will also be launched in March. A Chemicals Industry Package set for adoption in late 2025 will recognize the strategic role of the chemicals sector as the industry of industries and propose initiatives for the sector’s competitiveness. A Sustainable Transport Investment Plan will outline short-term measures to support specific renewable and low-carbon fuels for aviation and waterborne transport. The Commission will also propose a Bioeconomy Strategy to improve resource efficiency and tap the significant growth potential of biobased materials substituting fossil-based materials.

Reactions

"I am not sure how quickly the Deal can drive down energy prices," said Elisabetta Cornago, a senior research fellow at the think tank CEPS. The draft text acknowledged that gas will be the price-setter for power prices for years to come, and here Bruegel's research analyst Conall Heussaff sees a structural problem. Europe relies almost entirely on gas imports which are “always going to be expensive,” he said, citing the extra costs of liquefying and transporting gas compared to the US, which directly extracts its own shale gas and uses it domestically. The experts all believed that more renewables and an integrated European grid will ultimately reduce prices, but this will not happen anytime soon. Heussaff sees this shift happening in the 2030s.

TAX LAW

AGREEMENT TO PREVENT DOUBLE TAXATION BETWEEN CHILE AND THE UNITED STATES

This agreement positions Chile in an advantageous place compared to its South American peers and gives it tax benefits for trade with the world's leading economy. But almost a year after its implementation, it is still little known in the country, so the corporate and investment structures it offers are not being used well.

ENTRY INTO FORCE

After almost fourteen years of rest in the US Senate, the long- awaited agreement between Chile and the United States that put an end to double taxation came into force. Indeed, since February 4, 2010, when it was signed in Washington D.C., and having passed through our country five administrations, its application is now a reality. This positions Chile in an advantageous place compared to its South American peers, while trading with the world's leading economy, which complements the current Free Trade Agreement.

However, since its entry into force on January 1, 2024, it is striking that legal and accounting advisors, and the business fabric, with some exceptions, have made little use of it, in circumstances that this agreement represents 10.9% of Chilean foreign investment, and can be used from large-scale capital to mere personal service providers.

MAIN BENEFITS

Among the main benefits is the mitigation of the tax impact. In figures, the US federal system establishes a corporate tax of 21%. With the remaining 79%, a difference occurs with the agreement. Previously, there was a Withholding of 30%, which is now reduced to 5%. Thus, the final tax burden decreases from 44.7% to 24.95%. If we compare it with the complementary global tax of 35%, there is an advantage of just over 10 points. Of course, it will be necessary to make case-by-case analyses, such as State Tax Rates, but the advantage is abysmal.

NEED TO REVIEW LEGAL STRUCTURES

In the first place, it is necessary to review the current investment structures. Among the current cases, we find someone who wants to invest in real estate in the United States. One way is through direct investment, without corporate structures. In this case, there will be three types of problems; Estate Tax, with the colossal inheritance tax; Firpta, a law that taxes the sale of real estate by foreigners with 15%; and, finally, the null option of claiming expenses for the complementary global tax.

However, this situation could be improved with the agreement if the investor is structured through a Limited Liability Company (LLC) -with a check the box (CTB)-, thus avoiding the payment of Estate Tax and Firpta, and being owned by an SpA or SRL, both considered corporations for US purposes. In summary, the agreement would allow the benefit of the aforementioned 5% withholding.

A similar application of the agreement could be used by investors with investment accounts. Therefore, it is necessary to review the investment cases, since heavy structures could generate high costs, and in return, light structures could produce tax carelessness and civil exposure.

INCENTIVE FOR INVESTORS

The spirit of the treaty is to encourage investments, but without Treaty Shopping or abusive conduct. Proof of this are the authorizations of article 24, which, although it establishes a limitation on benefits, by LOB clause, allows its use through “qualified person”; tests, with the substance of the operation predominating. Therefore, by complying with the established requirements, it would allow access to foreign investors, encouraging international trade.

CURRENT BENEFITS

In summary, we appreciate that the agreement provided legal certainty through the establishment of clear and permanent rules, essential for long-term wealth planning. From this we derive the necessary review and rethinking of current corporate structures, so that they can be used by all investment ranges, including those on a smaller scale.

Finally, the agreement and current times require legal and accounting teams to have an adequate understanding of foreign regulations and even the formation of alliances with foreign firms, in order to provide a comprehensive service and thus determine the most suitable structures to prevent potential legal and tax conflicts and to guarantee relations on a transnational horizon.

The European Commission has unveiled a comprehensive set of initiatives designed to enhance the competitiveness and resilience of European industry, address soaring energy costs, and streamline sustainability obligations for businesses. Below is an overview of the pivotal measures introduced:

Clean Industrial Deal

As part of its commitment to fostering industrial innovation and climate leadership, the Commission has launched the Clean Industrial Deal. This ambitious plan aims to bolster Europe’s industrial competitiveness while expediting the transition to a decarbonized economy.(Press Release).

Action Plan on Affordable Energy Prices

Recognizing the critical impact of energy costs on economic performance, this action plan outlines a set of targeted measures to mitigate volatility, ensure market stability, and fortify Europe’s global industrial positioning. (Press Release).

First Sustainability Omnibus Package

This legislative package introduces key regulatory adjustments to simplify corporate sustainability compliance and enhance legal clarity:

Revisions to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD); Deferral of CSRD reporting requirements for companies in waves 2 and 3 (2026 and 2027), alongside an extension of the transposition deadline and initial implementation of the CSDDD to 2028; Targeted reform of the Carbon Border Adjustment Mechanism (CBAM), exempting small importers, particularly SMEs and private entities; Amendments to the Taxonomy Disclosures and the Taxonomy Climate and Environmental Delegated Acts, currently open for public consultation. Second Omnibus Package on Investment Simplification

This initiative is set to optimize access to key European financial instruments, including InvestEU, EFSI, and other major investment mechanisms. By reducing administrative burdens and enhancing resource allocation, this package seeks to foster a more dynamic and efficient investment landscape. (Press Release)

For further insights into these landmark initiatives, please refer to the official press releases of the European Commission.

NEW BUDGET 2025 IN BOLIVIA: TAX BENEFITS FOR INDUSTRY AND COMMERCE

The Bolivian Law No. 1613, enacted on January 1, 2025, approves the General State Budget (PGE) for the fiscal year 2025 and introduces several provisions that may be of interest to businesses and economic actors in Bolivia. These measures aim to promote industrialization, import substitution, and economic reactivation.

Key Provisions:

Tax Incentives for Industrialization: To encourage industrialization and reduce import dependency, the PGE 2025 establishes an exemption from the Value Added Tax (VAT) and customs duties for the importation and commercialization of capital goods and industrial plants. This benefit applies to sectors such as agriculture, industry, construction, and mining, facilitating the acquisition of machinery and equipment necessary for productive development. VAT Exemptions on Hydrocarbon Imports: To ensure the supply of fuels in the domestic market, the importation of crude oil, gasoline, and diesel oil is exempted from VAT. This measure aims to mitigate the impact of international prices and ensure the continuous supply of these essential resources. Incentives for Profit Reinvestment: The PGE 2025 introduces incentives for foreign companies to reinvest their profits in the country. Depending on the percentage of reinvestment, partial exemptions are granted on the Corporate Income Tax for Foreign Beneficiaries (IUE-BE). For instance, a reinvestment of 25% to 49.99% of profits results in a 10% exemption on the corresponding tax. Use of Virtual Assets by Public Companies: Public companies are authorized to use virtual assets to fulfill contractual obligations. This provision allows greater flexibility in financial transactions and could influence how payments and contracts are managed in the public sector.

These provisions of the PGE 2025 present both opportunities and legal challenges for businesses and economic stakeholders in Bolivia.

For the official text of Law No. 1613, please refer to the Gaceta Oficial del Estado Plurinacional de Bolivia.