Bolivia* PROFILE CONTENTS }} INTRODUCTION 2 LEGAL AND REGULATORY
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TAXATION 6 BANKING 9 PAYMENT INSTRUMENTS
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PAYMENT SYSTEMS
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CASH MANAGEMENT
14
ELECTRONIC BANKING
16
TRADE FINANCE
17
USEFUL CONTACTS
19
* Guides specifically designed for treasury managers offering a detailed picture of the banking and cash management arrangements for an extensive range of locations. Please note the information is of a general nature only and is subject to change. It does not constitute financial, legal, tax or other professional advice.
Country Profile
BOLIVIA
INTRODUCTION }} General Capital/Other major cities: Area: Population: Languages: Currency: Country telephone code: Weekend: National holidays: Source: www.goodbusinessday.com.
Business hours: Banking hours:
La Paz/Santa Cruz, Cochabamba, El Alto, Oruro, Sucre 1,098,581km2 10.63m Spanish, Quechua, Aymara, Guarani Boliviano (BOB), US dollar (USD), euro (EUR) 591 Saturday and Sunday 2nd half 2015 — 2 Nov, 25 Dec 2016 — 1, 22 Jan, 8, 9 Feb, 25 Mar, 2, 26 May, 21 Jun, 16 Jul, 6 Aug, 2 Nov, 26 Dec 08:00–12:00 and 14:00–18:00 (Mon–Fri) 08:30–12:00 and 14:30–17:30 (Mon–Fri), 08:30–12:00 (Sat) Note: not all banks open on Saturdays.
Stock exchange:
Bolsa Boliviana de Valores (BBV)
Government Legislature }}Unitary presidential republic with a bicameral Plurinational Legislative Assembly (Asamblea Legislativa Plurinacional) composed of the Chamber of Senators (Cámara de Senadores) and the Chamber of Deputies (Cámara de Diputados). }}Chamber of Senators – 36 members elected to serve five-year terms. }}Chamber of Deputies – 130 members elected to serve five-year terms. }}The president is directly elected every five years. Head of state and political leader }}Evo Morales, president (head of state and government) since 22 January 2006.
Sectoral distribution of GDP (% of GDP) Agriculture Industry Services
9.2% 38.5% 52.3% (2013 estimate)
Please note that the information contained in this document is of a general nature only and is subject to change whether for economic, political, social or other reasons. It is not intended to be comprehensive and does not constitute financial, legal, tax or other professional advice on which you should rely. Accordingly if you are planning any business activity in the country or taking, or refraining from any action on the basis of the information in this document, you must obtain your own independent professional advice. The materials contained in this document were assembled in February 2015 (unless otherwise dated) and were based on the law enforceable and information available at that time. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it.
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BOLIVIA
Economy
2009
Exchange rate* (BOB/USD)**
2010
2011
2012
2014
2013
2015
Q2
Q3
Q4
Year
Q1
7.020
7.017
6.937
6.910
6.910
6.910
6.910
6.910
6.910
6.910
3.55
0.90
1.87
0.67
1.59
5.36
6.00
2.86
4.21
NA
7.9
6.0
NA
NA
NA
NA
NA
NA
NA
NA
Consumer inflation*** (%)
+ 3.3
+ 2.5
+ 9.8
+ 4.6
+ 5.7
+ 6.6
+ 5.9
+ 4.4
+ 5.8
+ 5.4
GDP volume growth*** (%)
+ 3.4
+ 4.1
+ 5.2
+ 5.2
+ 6.8
+ 4.7
+ 6.0
NA
NA
NA
GDP (BOB bn)
121.7
137.9
166.1
186.8
211.5
–
–
–
NA
–
GDP (USD m)
17,340
19,649
23,949
27,035
30,601
–
–
–
NA
–
1,736
1,934
2,321
2,575
2,868
–
–
–
NA
–
– 2.3
– 1.1
– 2.7
+ 2.6
– 0.3
–
–
–
NA
–
Interest rate** (MMR) (%) Unemployment (%)
GDP per capita (USD) BoP (goods/services/income) as % GDP * Market rate. ** Period average. *** Year on year.
Sources: IMF, International Financial Statistics, May 2015 and 2014 Yearbook; and Bolivian Economic Statistical Department.
Country credit rating Fitch Ratings rates Bolivia for issuer default as: Term
Local currency rating
Foreign currency rating
Short
–
B
Long
BB –
BB –
Long-term rating outlook
Positive Source: www.fitchratings.com, June 2015.
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BOLIVIA
LEGAL AND REGULATORY }} Central bank }}Established in 1928, the Banco Central de Bolivia (BCB) is a state-owned autonomous institution operating in accordance with the 1995 Law of the Central Bank.
Bank supervision }}The Financial System Supervision Authority (ASFI) supervises the banking sector within Bolivia.
Resident/non-resident status }}A company is considered resident in Bolivia if its place of effective management is in Bolivia. }}If a company’s place of effective management is unknown but its head office is in Bolivia, or if a company elects to have its registered office in Bolivia, it will be deemed resident.
Bank accounts }}Foreign exchange accounts can be held by residents both domestically and abroad. Resident domestic currency (BOB) accounts cannot be held abroad, but are convertible into foreign currency. }}Non-resident bank accounts are permitted in both foreign and domestic (BOB) currency. Non-resident domestic currency accounts are convertible into foreign currency. }}Overdraft facilities are available to residents and non-residents.
Reporting }}There are no central bank reporting requirements.
Exchange controls }}Bolivia is a member of the Community of Andean Nations (CAN), which consists of a free trade area and a partial customs union among member states. CAN comprises Bolivia, Colombia, Ecuador and Peru. }}Bolivia is an associate member of the Mercado Común del Sur (Mercosur) regional common market. Mercosur comprises Argentina, Brazil, Paraguay, Uruguay and Venezuela. }}Bolivia is a member of the Latin America Integration Association (LAIA). }}Regional payment and clearing arrangements exist between Argentina, Brazil, Bolivia, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. Payments can be made through unique central bank accounts within the framework of the multilateral clearing system of the LAIA. }}The Boliviano (BOB) is Bolivia’s official currency. The USD and the EUR may both be used in financial transactions. }}A temporary tax (IVME) of 0.7% is applied to the sale of foreign currency. This tax is in effect until September 2015. }}Individuals and legal entities importing/exporting foreign currency banknotes are required to notify the customs authorities. The import/export of foreign currency banknotes in amounts of between USD 50,000 and USD 500,000 or
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BOLIVIA
its equivalent require BCB authorisation. Amounts over USD 500,000 require authorisation from the Ministry of Economy and Public Finance. }}No repatriation requirements exist for export proceeds or those from invisible transactions and current transfers. }}Loans from non-residents to residents are not subject to authorisation.
Anti-money laundering/counter-terrorist financing Supplied by BCL Burton Copeland (www.bcl.com). Data as at March 2015.
}}Bolivia has implemented anti-money laundering legislation (Law No 1768 of 1997; Decree 24771 of 1997; Decree 28695 of 2006; the Organisational Structure for the Fight against Corruption and Illicit Enrichment and Decree 29681 of 2008; Law No 170 of 2011*; and Law No 262 of 2012*). }}Bolivia is a member of the South American Financial Action Task Force (GAFISUD) and the Organisation of American States/Inter-American Drug Abuse Control Commission (OAS/CICAD). }}Bolivia has established a financial intelligence unit, the Unidad de Investigaciones Financieras (UIF), which is housed under the Ministry of Finance. Decree 28695 has created the Financial and Property Intelligence Unit that, when it is operational, will replace the UIF. }}Account opening procedures require formal identification of the account holder. }}Obligate entities, which include banks, insurance companies and securities companies only, are required to report suspicious and unusual transactions to the UIF. }}Financial institutions are required to report all cash transactions exceeding USD 10,000 to the UIF. }}Individuals entering or exiting the country with currency between USD 50,000 and USD 500,000 must be authorised by the central bank. All incoming or outgoing currency must be reported to the customs authorities. }}All transactions exceeding USD 10,000 reported to the customs authorities must be reported on a monthly basis to the UIF. }}Records of all transactions must be kept for a minimum of ten years. * There is no official English translation.
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BOLIVIA
TAXATION }} All tax information supplied by Deloitte Touche Tohmatsu (www.deloitte.com) and Deloitte Highlight, 2015.
Resident/non-resident }}Bolivia operates a territorial system. All legal entities in Bolivia, whether domestic or foreign, are subject to tax on Bolivian-source income. }}If the place of effective management is unknown, but the company’s head office is located in Bolivia, or if a company chooses to have its registered office in Bolivia, it will be deemed resident.
Tax authority }}National Tax Service (Servicio de Impuestos Nacionales).
Tax year/filing }}Generally, for commercial and service companies, the tax year follows the calendar year. }}The fiscal year for industrial and oil companies ends on 31 March, for agricultural business on 30 June and for mining companies on 30 September. }}The annual tax return must be filed within 120 calendar days following the end of the tax year and any tax liability must be paid at that time. }}While tax is payable once a year, mining companies must make advance tax payments. }}The filing of a consolidated return is not permitted; each company in a group is taxed separately.
Corporate taxation }}The corporate income tax rate is 25%. }}Mining and oil/gas companies are subject to a 25% surtax on their taxable income from which additional expense deductions are allowed. }}Companies engaged in mineral or metal production are subject to an additional tax at a rate of 12.5% when the sales price has exceeded established limits. }}There is no alternative minimum tax. }}Tax losses can be carried forward for three years, but not carried back. }}Certain regions (Oruro, Potosi, El Alto and Cobija) grant special incentives for new industries. Financial instruments }}There are no specific tax rules for financial instruments. Interest and financing costs }}Interest on loans is deductible only when those loans have been used in the company’s activities. Foreign exchange }}Bolivia has no specific tax rules for foreign exchange.
Advance tax ruling availability }}Taxpayers can request an advance tax ruling from the tax authorities in respect of a specific topic. The Tax Office should respond within 30 working days from the day on which the request is filed.
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Capital gains tax }}Certain capital gains, such as gains derived from the sale of fixed assets, immovable property and securities are included in gross income and are subject to the normal corporate income tax. }}Gains derived from the sale of securities listed on a recognised stock exchange, however, are exempt.
Taxes on assets }}Property, real estate and cars are taxed at rates determined by their book value.
Withholding tax (subject to tax treaties) Payments to: Resident companies Non-resident companies in non-taxtreaty country
Interest
Dividends
Royalties/fees
Service fees
None
None
None
None
12.5%*
12.5%**
12.5%†
12.5%‡
* Dividends paid to a non-resident are subject to a 25% withholding tax levied on 50% of the gross dividend, resulting in an effective rate of 12.5%. ** Interest paid to a non-reisdent is subject to a 25% withholding tax levied on 50% of the gross amount, resulting in an effective rate of 12.5%. † Royalties paid to a non-resident are subject to a 25% withholding tax levied on 50% of the gross amount, resulting in an effective rate of 12.5%. ‡ Technical service fees paid to a non-resident are subject to a 25% withholding tax levied on 50% of the gross amount, resulting in an effective rate of 12.5%.
}}Bolivian-sourced service fees, rental income and capital gains paid to non‑residents are subject to a final flat rate withholding tax of 25%, which is imposed on 50% of the Bolivian-sourced income. This gives an effective tax rate of 12.5%.
Tax treaties }}Bolivia has tax treaties with nine countries, including the Andean Nations Community (Comunidad Andina de Naciones), Argentina, France, Germany, Spain, Sweden and the UK.
Thin capitalisation }}Although Bolivia does not have specific thin capitalisation rules, interest paid to members or shareholders must not exceed Libor plus 3% for loans granted abroad or the domestic banking lending rate for domestic loans. In both cases, interest exceeding 30% of interest that would be paid to a third party is non‑deductible for income tax purposes.
Transfer pricing }}The Bolivian government has issued a new law regarding Transfer Pricing. The rule is applicable to transactions with foreign-related parties. This law gives the National Tax Service a tool to control transactions between related parties to determine whether transaction values are causing or not lower taxation. }}The following methods can be applied in the case of adjustment and/or revaluation: }}Method of comparable uncontrolled price; }}Resale price method; }}Cost plus method; }}Method of profit distribution; }}Method of transaction net margin; }}Price method of notorious price in transparent markets. }}The law will be in force when the National Tax Service issues the complementary regulation.
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Stamp duty }}There is no stamp duty.
Cash pooling }}Bolivia has no specific tax rules for cash pooling arrangements.
Real property tax }}A municipal tax is levied annually on the cadastral value of real property. The rates, which are progressive, are set by the local government.
Transfer tax }}Owners of immovable property are required to pay a transfer tax at a rate of 3% of the higher of the consideration paid for the property sold or the officially appraised value.
Financial transactions/banking services tax }}Tax is levied on all debits and credits from bank accounts, loans, credit cards and all transactions that are performed through a financial institution at the rate of 0.15%.
Sales taxes/VAT/excise }}VAT is levied on all goods, services and imports. }}The standard VAT rate is 13%. }}Any VAT incurred on exports is reimbursable. }}There are excise taxes on cars, tobacco, alcohol and fuels. }}The Gambling Tax is a tax on gambling participation.
Payroll and social security taxes }}There is no payroll tax payable by employers. }}Both employers and employees are obliged to pay monthly contributions to the social security system (social security and pension fund). In addition to paying their own contributions, employers must withhold and remit the contributions of their employees. }}Social security contributions are calculated using the employee’s income as a basis. The employer must contribute 14.71% (16.71% for mining companies) and the employee contribution varies between 12.71% and 28.71%. }}Employers are responsible for the collection of employee contributions. }}Employers also contribute 2% to the National Housing Fund. }}Employers withhold tax at 13% of an employee’s income after deducting the compulsory contributions to social security and an amount equal to twice the national minimum salary.
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BOLIVIA
BANKING }} Major banks
Total assets (USD millions)* 31 December 2014
Bank Banco Mercantil Santa Cruz
3,133
Banco Union
2,832
Banco Nacional de Bolivia
2,711
Banco BISA
2,370
Banco de Crédito de Bolivia
1,751
* BOB 6.9 per USD 1.
Sources: Autoridad de Supervisión del Sistema Financiero de Bolivia and www.accuity.com, February 2015.
Overview }}There are 13 multiple banks, one state-owned bank (Banco Unión) and three banks focusing on small and medium enterprises (PYME banks) operating in Bolivia. In addition, there is one state-owned development bank, 26 savings and loan cooperatives and eight savings and loan mutuals. }}Bolivia’s top four banks account for approximately 56% of the banking sector’s total assets. }}Foreign banks are active and prominent in the country’s financial secor. The largest foreign investor in the sector is Banco de Crédito del Perú, the majority shareholder of Banco de Crédito de Bolivia. Other foreign banks include Banco de la Nación Argentina, Banco do Brasil and Banco PYME Los Andes ProCredit. }}In August 2013, Bolivia’s president signed in to law legislation that effected major changes to the banking sector, including lending rate ceilings, mandatory lending quotas and mandatory investment in rural banking services. }}Under the new law, existing banks have the option of operating as multiple banks or PYME banks servicing small and medium-sized companies. In July 2014, Banco Los Andes ProCredit, along with the private financial funds Eco Futuro and Fondo de la Comunidad transformed their operations into PYME banks (Banco PYME Los Andes ProCredit, Banco Eco Futuro and Banco de la Comunidad). In the same month, the private financial funds Prodem and Fassil became multiple banks and were renamed Banco Prodem and Banco Fassil, respectively.
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BOLIVIA
PAYMENT INSTRUMENTS }} Payment statistics Cheques SIPAV (high-value) transfers ACH (low-value) transfers
Thousands of transactions
Traffic (USD millions)*
2012
2013
% change 2013/2012
1,969.0
2,049.1
4.1
13,418.3
13,847.8
3.2
60.7
68.5
12.9
47,667.5
56,363.5
18.2
616.7
944.3
53.1
11,054.8
14,677.2
32.8
* BOB 6.9 per USD 1 as at December 2013.
2012
2013
% change 2013/2012
Source: Banco Central de Bolivia.
Cash }}Cash is an important payment medium in Bolivia, particularly for low-value transactions.
Credit transfers }}Credit transfers are used for both high-value and low-value payment transactions. }}High-value and urgent interbank credit transfers are cleared and settled through LIP, the new national hybrid system. LIP is primarily used for interbank transfers relating to the capital, money and foreign exchange markets. }}Low-value and non-urgent interbank credit transfers are processed through the ACH in real time. ACH credit transfers are made online.
Direct debits }}Direct debits (débitos automáticos) are available in Bolivia and used for lowvalue recurring payments such as utility bills. }}Direct debits may be used for one-time or recurring payments, provided there is a signed authorisation in place. }}There is currently no interbank system in Bolivia for direct debits. Direct debit is only possible if the originator and receiver have accounts with the same bank.
Cheques }}The cheque is the most commonly used cashless payment instrument in Bolivia in terms of volume and is used for both retail and commercial payments. Cheques can be denominated in BOB or USD. }}Cheques are electronically and physically exchanged by the banks each business day. Around 90% of cheques are exchanged at the clearing houses in La Paz, Santa Cruz and Cochabamba. }}Cheques in BOB and USD have the same clearing cycles, and funds are available to beneficiaries on T+1. }}In 2013, BOB-denominated cheques accounted for approximately 85% of the total number of cheques and 79% of the total value.
Card payments }}The use of payments cards in Bolivia has increased in the past decade. }}There were 99,878 credit cards and 2.46 million debit cards in Bolivia at the end of October 2013. }}Visa and MasterCard are the principal credit card brands issued in Bolivia, although American Express credit cards are also available. }}Bolivia has two networks for processing credit and debit card transactions: ATC (Administradora de Tarjetas de Crédito) and Linkser.
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}}There were 2188 ATMs in Bolivia at the end of 2013. }}ATC and Linkser operate Bolivia’s two shared ATM networks, Red Enlace and Red Bank. Banco BISA also operates a proprietary ATM network called Telebanco. }}Banco Prodem (formerly PRODEM FFP) maintains a closed network of over 130 smart ATMs that operate with special stored-value ATM cards, allowing its clients to make deposits and withdrawals from their PRODEM savings accounts. }}All payment cards issued in Bolivia are EMV chip cards. }}Electronic money schemes are available in Bolivia in the form of reloadable pre‑paid cards.
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PAYMENT SYSTEMS }} Type }}LIP (Liquidación Integrada de Pagos), Bolivia’s new hybrid payment system, is operated by the BCB. Part real-time gross settlement (RTGS) system and part a netting system with queues, LIP allows all components of the Bolivian payment system to run on the same platform. LIP replaced SIPAV (Sistema de Pagos de Alto Valor), Bolivia’s former RTGS system, on 8 September 2014. }}ACH (Cámara de Compensación de Ordenes Electrónicas de Pago), Bolivia’s interbank automated clearing house system, is operated by the Administrator of Clearing and Settlement (ACCL). ACH credit transfers in Bolivia are made online. When the receiving bank accepts the payment order from the sending bank, the ACH payment is automatically credited to the beneficiary’s account. }}CCC (Cámara de Compensación de Cheques), the national cheque clearing house, is operated by the ACCL on behalf of the BCB. Cheques and return items are electronically transmitted by the banks to the cheque clearing house. The cheques are subsequently physically exchanged in La Paz, Santa Cruz, Cochabamba and six other cities (Oruro, Sucre, Tarija, Potosí, Trinidad and Cobija). Multilateral net settlement takes place in participants’ accounts at the BCB.
Participants }}Participation in LIP, the ACH and the CCC is open to all financial institutions that are supervised by the ASFI. This includes the commercial banks, mutuals and savings and loan cooperatives. Participants must maintain an account at the BCB. }}There are 16 financial institutions, including the BCB, participating in the ACH.
Transaction types processed }}LIP processes high-value and urgent BOB and USD-denominated interbank transactions and may include funds transfers on behalf of third parties. In addition, LIP effects the final settlement of particpants’ net balances originating from Bolivia’s other clearing houses. There is no minimum threshold. }}The ACH processes low-value interbank electronic credit transfers. }}The CCC clears and settles cheques.
Operating hours }}LIP operates from 07:00 to 19:00 BOT (Bolivia Time), Monday to Friday. }}The ACH operates from 09:00 to 16:30 BOT, Monday to Sunday. }}The CCC operates from 09:00 to 16:30 BOT, Monday to Sunday.
Clearing cycle details CCC }}09:00–14:00 BOT: banks present cheques to the cheque clearing house. }}14:00–14:45 BOT: cheques accepted for payment are net settled in participants’ accounts at the BCB. }}14:10–16:00 BOT: return items physically exchanged among banks. }}16:00–16:30 BOT: return items net settled in participants’ accounts at the BCB.
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Currency centre holidays* 2nd half 2015 2016
2 Nov, 25 Dec 1, 22 Jan, 8, 9 Feb, 25 Mar, 2, 26 May, 21 Jun, 16 Jul, 6 Aug, 2 Nov, 26 Dec * Source: www.goodbusinessday.com.
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CASH MANAGEMENT }} Domestic Notional pooling }}Notional pooling is not permitted in Bolivia. Cash concentration }}Zero balance accounts are not used in Bolivia. }}Companies operating in Bolivia frequently maintain an account in BOB and an account in USD. }}The financial transaction tax (Impuesto a las Transacciones Financieras – ITF) was introduced by the government on 1 July 2004 as a provisional tax for two years. The ITF was extended for another three years in July 2006 and then extended again for additional three-year periods in 2009 and 2012. The current tax rate for companies is 0.15% for each debit and credit transaction made to all current and savings accounts denominated in foreign and domestic currency. To mitigate the impact of the ITF, companies typically transfer funds among their bank accounts (even those accounts with the same tax identity, which are also subject to the ITF) only when necessary.
Collections }}The mail system in Bolivia is not used for sending payments, and as such, many clients make their payments directly at a bank branch. The use of unique client codes allows the bank to capture remittance information about the payment at the time it is made. Payment and remittance information is provided in batch and/or online to the collecting company via electronic banking, file transfer or report. }}Cobradores (private couriers or collection services) and/or sales persons are frequently used by companies to facilitate collections by delivering invoices and picking up payments from their clients. }}Companies that receive payments at their offices may use an armoured car service. These services are typically contracted through a bank. The armoured car service travels to the company’s offices on a specified schedule where it picks up cash and/or cheques and then deposits them at a designated bank branch.
Cross-border }}Cross-border payments are routed via SWIFT and settled through accounts held with correspondent banks abroad. }}Trade transactions between Bolivia, Cuba, Ecuador, Nicaragua and Venezuela, all members of the Bolivarian Alliance for the Peoples of Our Americas (ALBA), can be settled in sucre, a virtual regional currency, through the Unified Regional Compensation System (Sistema Unitario de Compensación Regional de Pagos – SUCRE). SUCRE eliminates the need to use foreign currency to pay for trade transactions between the countries.
Lifting fees }}Fees are applied on funds transfers between resident and non-resident accounts.
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Short-term investments }}Demand deposits with interest (cuenta remunerada) are available. }}Time deposits (depósitos a plazo fijo) are available for a range of maturities in BOB, UFV (Housing Development Unit, an inflation-indexed unit of account), USD and EUR. }}Certificates of deposit (certificados de depósito) are offered by banks. }}Money market mutual funds (fondos de inversión) are available. }}Treasury bills (Letras del Tesoro General de la Nación) are issued on behalf of the Bolivian government by the BCB through weekly auctions. Maturities range from 91 to 364 days.
Custody and securities settlement Information provided by www.globalcustody.net and www.edv.com.bo, 2015.
Depository }}Entidad de Deposito de Valores de Bolivia SA (EDV). }}The EDV acts as the securities depository agency for physical custody and management, clearing and settlement of financial assets electronically. Settlement cycle }}T+0.
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ELECTRONIC BANKING }} }}Electronic banking is available in Bolivia and offered by the country’s leading banks. }}There is no bank-independent electronic banking standard in Bolivia; each bank offers its own proprietary system for corporate banking purposes. }}Major banks in Bolivia offer internet-based electronic banking systems. Services available include balance and transaction reporting and payment initiation. }}Internet banking is available, but usage is limited due to Bolivia’s low internet penetration rate (estimated at 39.5% of the country’s population in December 2013). Services available include balance reporting and payment initiation. }}Mobile banking is available in Bolivia, providing services such as balance reporting, payment initiation and fund transfers. }}Bolivia had an estimated mobile penetration rate of 101.6% at the end of 2014. }}Tigo Money, a mobile payment service, has been available since 2013. According to the BCB, there were 885,000 mobile transactions via Tigo Money between January 2013 and March 2014, worth a total of BOB 111 million. There were 628,034 mobile payment accounts at the end of March 2014.
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TRADE FINANCE }} Trading partners* Import Export
Chile 21.3%, Brazil 20.3%, Argentina 10.9%, USA 10.1%, Peru 6.5%, Venezuela 6.2%, China 4.9%. Brazil 41.8%, USA 18.4%, Argentina 7.3%, Peru 4.9%. * The World Factbook 2013-14. Washington, DC: Central Intelligence Agency, 2013 (www.cia.gov/library/publications/the-world-factbook/index.html).
Imports Documents }}In order to import goods into Bolivia, a commercial invoice (including a full description of the imported goods), bill of lading and, in certain cases, certificate of origin and packing list are required. }}A sanitary certificate is required for importing livestock, plants, seeds and foods. }}A certificate of analysis is needed for importing pharmaceutical and chemical products, medicines, cosmetics and veterinary products. Licences }}Licences are required for importing certain products such as armaments, explosives, second-hand clothes, tobacco products and certain foods. Taxes/tariffs and other fees }}Bolivia is a member of the Community of Andean Nations (CAN), which comprises of a free trade area and a partial customs union among member states. CAN comprises Bolivia, Colombia, Ecuador and Peru. }}Bolivia is an associate member of the Mercosur (Mercado Común del Sur) regional common market. As such, Mercosur member countries – Argentina, Brazil, Paraguay, Uruguay and Venezuela – are subject to preferential duties on their imports. }}On 1 May 2006, Bolivia joined the Alianza Bolivariana para los Pueblos de Nuestra Américas (ALBA) trade agreement. ALBA comprises Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Nicaragua, Saint Lucia, St Vincent and the Grenadines and Venezuela. }}Bolivia has established a free trade agreement with Mexico and trade agreements with Chile and Cuba. }}Bolivia’s customs authorities use CAN’s Nandina tariff system to classify goods and impose tariffs. }}Most products traded within CAN are exempt from tariffs. }}CAN imports are subject to tariff rates of 0%, 5%, 10%, 15%, 20%, 30% and 40%. }}Import tariffs of 5% to 10% are levied on domestic appliances and computer equipment and accessories. }}Zero-rated tariffs and tariffs of 5% are levied on imports of capital goods. }}Under government policies to improve general welfare and ensure food and energy security, improve education and health, and promote the industrialisation of hydrocarbons, zero-rated import tariffs are applied to a number of products, including tomatoes, rice, wheat, diesel oil, and books and other printed materials. }}Products donated to government entities are exempt from taxation.
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}}All imports into the Cobija, Cochabamba, Oruro, Puerto Aguirre, Puerto Suarez, Santa Cruz, San Matías, Yacuiba, La Paz Comercial, Villazón, Desaguadero and Guayaramerín free trade zones are exempt from tariffs. Prohibited imports }}A negative list (of products that may not be imported) is in operation. }}It is prohibited to import certain commodities into Bolivia, in order to protect public health, and for hygiene and national security reasons.
Exports Documents }}In order to export goods from Bolivia, a commercial invoice (including a full description of the exported goods), collection order and, in certain cases, certificate of origin and packing list are required. Licences }}Most exports do not require a licence. }}Under government policies to improve general welfare and ensure food security, prior authorisation may be required for the export certain food products. Taxes/tariffs and other fees }}No taxes are charged on exports from Bolivia. Prohibited exports }}There is no published list of products that may not be exported.
Financing imports and exports Imports }}There are no financing requirements for imports. Exports }}There are no financing requirements for exports.
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USEFUL CONTACTS }} Banco Central de Bolivia
www.bcb.gob.bo
Leading banks:
Banco BISA
www.bisa.com
Banco de Crédito de Bolivia
www.bcp.com.bo
Banco Mercantil Santa Cruz
www.bmsc.com.bo
Banco Nacional de Bolivia
Banco Union
www.bnb.com.bo www.bancounion.com.bo
The Financial System Supervision Authority
www.asfi.gob.bo
Bolivian Association of Private Banks
www.asoban.bo
Ministry of Economy and Public Finance
www.economiayfinanzas.gob.bo
National Chamber of Commerce
www.cnc.bo
National Chamber of Industry
www.bolivia-industry.com
Bolsa Boliviana de Valores
www.bbv.com.bo
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