The Ministry of Light Industries and Trade has issued Resolution No. 197 published in Official Gazette No 38.577 of December 5, 2006. This Resolution is based on Article 16 of Decree No. 4998 of November 17, 2006 establishing the temporary measures for the promotion and development of Small and Medium-sized Industries (SMIs), Cooperatives and other forms of association having their principal domicile in Venezuela, producing goods, rendering services and performing works.
The Resolution establishes categories of contracts of goods and rendering of services reserved to specific bodies corporate whose tenders in bidding processes present a percentage of National Value Added ("VAN") equal to or higher than the percentage indicated for each category.
The Resolution determines 110 categories of a variety of goods that are the subject of this reservation, plus 4 categories of services regarding the drilling of oilwells both offshore and on land, as well as the collection of seismic data.
The following contracts are exempted from this reservation:
Those referring to the purchase of spare parts. When there is no domestic production. This will be specified in a Resolution of the aforesaid Ministry and will be published in the Official Gazette. Those that are required by offshore entities for their operations abroad, to be performed abroad. Those resulting from general bidding processes announced internationally, that are selective or awarded directly, in which at least two valid offers with the minimum VAN established in the Resolution have not been received.
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