Doing Business in Venezuela

What are the challenges?

In addition to the major challenges already covered, the following are worth adding:

Getting paid – terms of payment

It is important to make sure that terms of payment are clearly agreed by both parties. When negotiating, UK companies should ensure that they are paid offshore, in hard currency and that any advance or down payment covers at least the cost of manufacture and shipping. The use of a local partner or agent will help mitigate the chances of a misunderstanding or a bad experience. 

Corruption and transparency

In common with many other markets around the world, corruption can be an issue in Venezuela. The UK Government has enacted legislation outlawing the involvement of UK companies or their suppliers in corrupt practices – under the Anti-Terrorism, Crime and Security Act 2001, UK companies and nationals can now be prosecuted in the UK for acts of bribery or other illegal activity committed wholly overseas. Like any other market, operating in Venezuela poses certain risks. The UKTI Overseas Business Risk website is an essential read: www.gov.uk/government/collections/overseas-business-risk

Source - UKTI