In Bolivia there is no foreign investment statute, but there are legal provisions governing foreign investment, which are listed below:

The legal provision governing investments in the country is Law 1182 of September 17, 1990 (Investment Law), approved by the National Congress. Its main purpose is to stimulate and guarantee national and foreign investment and promote the economic and social growth and development of Bolivia through an open system of legal standards governing national and foreign investments and promoting economic and social development in the country.

The scope of this law is summarized below:

As Bolivia is a member of the Andean Group, there are two decisions 291 and 292 of the Board of the Cartagena Agreement, referring to the Common Regime of Treatment of Foreign Capital and Trademarks, Patents, Licences and Royalties, and the Uniform Regime for Andean Multinational Enterprises, respectively.

These decisions have been ratified by the National Congress, thereby giving them the rank of law.

Those ratified by the National Congress and having the rank of law.

Law 1150 of March 6, 1985 (Capitalization Law), the aim of which is to establish new mixed economy companies, with equity held by private sector shareholders and public enterprise employees.

The aim is to attract investment, greater wealth, better services, and above all more job opportunities.

Law 1130 of April 24, 1992, the objective of which is to transfer the management of state enterprises to the private sector to achieve better administration.

Law 1689 of April 30, 1996, whose objectives are:

Law 1243 of April 11, 1991 outlines the legal framework for the conduct of mining activities.

Law 1488 of April 14, 1993 regulates intermediation of financial activities and auxiliary financial services.

Law 15516 of June 2, 1978 governs the operations of insurance companies, establishing the conditions and legal nature of insurance companies and the creation of an agency to regulate them, namely, the Superintendency of Insurance.

Law 16995 of August 2, 1979 regulating the securities exchange.

Law 1333 of April 27, 1992, aimed at environmental and natural resource protection and conservation, regulating the actions of man with regard to the environment.

It defines exporting as any act whereby goods or services produced in the national customs territory enter one of these areas. Confirms the separation of customs from taxes in free zones.

Law 1182 of 09/17/90. Chapter Six, Article 20 ratifies the principle of separation of customs and taxes with tax and tariff exemptions and guarantees a free exchange regime.

Decree No. 22410 of 01/11/90. Creates and defines industrial and commercial free zones, warehouses, and RITEX.

Decree No. 22526 of 06/13/90. Regulates and expands on D.S. 22410

Decree No. 23098 of 03/19/92. Restructures the national customs and creates customs areas in free zones.

Decree No. 2333 of 11/24/92. Creates the reshipment invoice and incorporates the display and retail sale area in the free zone area.

Decree No. 23390 of 01/25/93. Introduces the serial numbered cargo manifest.

Decree No. 23565 of 07/23/93. Regulates Law 1489 on duty free exports.

Ministerial resolutions regulating the decrees of the Ministry of Finance, now called the National Secretariat of Finance.

RES. 862/91 of 08/15/91 establishing customs mechanisms and procedures with free zones.

Foreign investment is not legally defined in Bolivia. However, for the purposes of the Andean Group and for quantifying said investment, it is deemed to be the following:

Contributions from abroad, owned by foreign individuals and corporations, to the capital of a company, which are made in freely convertible currency or in physical or tangible goods, such as industrial plants, new and reconditioned machinery, new and reconditioned equipment, spare parts, parts, pieces, raw materials, and intermediate goods.

Also deemed to be foreign direct investment are investments made in national currency from resources eligible for remittance abroad and reinvestment.

Article 3 of Law 1182 (Investment Law) establishes that private investment does not require prior authorization or additional registration. The mechanism for quantifying the investment is through the enterprises working in the area of investments, embassies, and personal interviews and imports of capital goods.

Companies incorporated in the country, state entities, including autonomous enterprises, and national or foreign individuals, domiciled or represented in the country, may resort to the investment regime.

Yes, as stated in point 2.3.

Bolivia’s Investment Law admits joint investments between national and/or foreign investors in joint ventures and other investments legally domiciled in Bolivia, without restriction.

There is no time limit on the status of foreign investor.

Article 13 of the Investment Law establishes that the compensation of employees and workers will be established between the parties. Labor contracts may be freely entered into or rescinded in accordance with the General Labor Law and its regulatory provisions. Investors must also comply with the prevailing social security regime.

Article 3 of the General Labor Law establishes that in no enterprise can the number of foreign workers exceed 15% of the total and that these workers must be exclusively technicians. Directors, board members, advisors, or representatives of state institutions and private institutions whose activities are directly related to the interests, particularly economic and financial, of the State, must be Bolivian nationals.

Encourage and guarantee national and foreign investment to promote economic and social growth and development in Bolivia through an open system of rules governing national and foreign investment and promoting the economic and social development of the country.

Chapter III of the Political Constitution of the State regulates Bolivian economic policy and points out that the State may regulate, by law, the practice of trade and industry, when public security and necessity so demand. In such cases, it may also assume the high command of the national economy. This intervention may take the form of control, incentives, or direct management.

It also states that the State will determine monetary policy in banking and credit with a view to improving the conditions of the national economy and thus controlling monetary reserves.

The country’s economic development will be programmed through the exercise of and in pursuit of national sovereignty.

The State will periodically formulate the economic and social development plan of the republic, the execution of which will be mandatory. This planning will cover the public, mixed, and private sectors of the national economy.

Private initiative will receive encouragement and cooperation from the State when it contributes to the improvement of the national economy.

Article 144 of the Political Constitution of the State guarantees the free import and export of goods and services, with the exception of those that affect public health and/or state security.

The Investment Law guarantees the free production and marketing of goods and services in general and the free determination of prices. The goods and services whose production and marketing are prohibited by law are excluded.

Yes, by giving equal treatment in all regards to both foreign and national investment.

Although there is no rule that expressly establishes the principle of economic nondiscrimination, Bolivian legislation guarantees the full exercise of any economic activity, provided that it is not illegal.

Foreign investors and the enterprises or companies in which they have interests are afforded the same rights, duties, and guarantees that the laws and regulations grant to national investors.

The scope of foreign investment activities in Bolivia is open and unlimited.

Article 25 of the Political Constitution of the State establishes that foreigners may not possess within 50 km of the frontiers, under any title, the land or subsoil, directly or indirectly, individually or as corporations, on penalty of losing to the State the property acquired, except in cases of national necessity expressly declared by law.

Hydrocarbons Law 1689 of April 30, 1996

Under the Political Constitution of the State (Article 139), the exploration, exploitation, marketing, and transportation of hydrocarbons and their derivatives are the responsibility of the State. It may exercise this right through autonomous entities or by granting fixed-term concessions or contracts.

In accordance with the new Hydrocarbons Law, the State will continue to hold title to the oil fields in the country, fully safeguarding the rights of all parties (State, private enterprise, and consumers).

Article 1 of the Law establishes that the right to explore and exploit fields of hydrocarbons and to market products is exercised by the State through YPFB, a public enterprise that will enter into joint venture fixed-term contracts with national or foreign individuals or groups for the purpose of exploration, exploitation, and marketing.

The transportation of hydrocarbons and the distribution of natural gas through networks will be subject to fixed-term government concessions granted to national or foreign individuals or groups.

The refining and industrialization of hydrocarbons is liberal and may be exercised by anyone who complies with sectoral regulations through the relevant register of the Superintendency of Hydrocarbons.

Risk sharing contracts will be signed by the YPFB on behalf of the State and will be governed by Bolivian law.

Mining Code (No. 1243 of April 11, 1991)

Article 1. All mineral substances are owned by the State, irrespective of their origin or type of source and whether they are found in the soil or on the surface.

Article 13. Corporations and agencies of foreign States and governments with private legal personalities; multilateral organizations and their agencies, as well as multinational corporations organized under international agreements signed by the Republic of Bolivia, may conduct mining activities and obtain the rights contemplated in the present Mining Code.

Article 14. Foreign individuals or groups may not acquire any type of mining concession within 50 kilometers of the international borders, directly or indirectly, except in cases of national necessity expressly declared by law.

National natural or legal persons having any type of title to mining concessions in the areas referred to above, may share the concession with foreign individuals or groups, except for those in the countries bordering the concession.

Any type of contract for services and risk sharing for the development and execution of mining activities and work, expressly prohibiting the full or partial transfer or lease of the mining concession, punishable by voiding of the concession or its reversion to the government domain.

Article 23. Mining concessions managed and held by the Mining Corporation of Bolivia by virtue of the provisions of Supreme Decree 03223 of October 31, 1995 may not be transferred or subject to lawsuits for forfeiture, voiding, or expiration.

Article 76. The Ministry of Mining and Metallurgy will authorize the establishment of private smelting plants in accordance with the procedure established in this Code.

Article 211. The exploration, exploitation, profits, refining and purification of metallic and non-metallic substances lying in the evaporation basin of the Uyuni salt mine, located in the Potosí Department and declared a public reserve by Supreme Decree 21260 of May 16, 1986, will be the responsibility of the Industrial Evaporation Resources Complex of the Uyuni Salt Mine (CIRESU), created by Law 719 of February 15, 1985, which represents the State.

Law on Banks and Financial Institutions No. 1488 of April 1993.

Article 18. Banks incorporated abroad may open branches in Bolivia, which will only perform loan operations and auxiliary financial services authorized by the Superintendency.

They may also carry out contingent savings operations without restrictions of any kind if said operations take effect outside the country.

Agencies of foreign banks may conduct liability operations with persons non resident in the country.

To obtain the relevant operating license for the agency, the foreign bank must meet the requirements applicable to branches of foreign banks, with the exception of establishing the capital in the country.

Article 19. Representative offices, with the prior authorization of the Superintendency, may conduct only activities to promote financial and business services in the country.

Article 20. Any branch, agency, or representative office of foreign banks operating in Bolivia will have a duly empowered legal representative.

Capitalization Law No. 1544 of March 21, 1994

Article 4. Mixed economy companies will be capitalized by increasing their capital through new contributions from national and/or foreign private investors. The shares representing these new contributions may not exceed the total of the shares issued by mixed economy companies subject to such capitalization.

Investors and/or board members of capitalized companies under the provisions of this Law will sign a management contract with the mixed economy company in question, specifying that they may not, directly or indirectly, acquire from third parties shares in these companies exceeding 50% of the total number of shares in circulation during the life of said management contract.

Article 10. The following public utilities: communications, electricity, hydrocarbons, and transportation are within the national jurisdiction and will be regulated by specific sectoral laws.

Article 11. Natural hydrocarbon resources are subject to the provisions of Article 139 of the Political Constitution of the State, provided that they are under the direct control of the State and are inalienable and imprescriptible.

In Bolivia there is no economic activity from which foreign investment alone is excluded, restricted, or limited.

Bolivian legislation establishes no such principle.

There are no performance requirements for foreign investment.

In Bolivia there is equal treatment and terms for privatization and capitalization of enterprises, whereby individuals and corporations can participate on equal terms.

Bolivian workers obtain benefits from the capitalization process, which has the following characteristics, inter alia:

Foreign investors are afforded the same rights, duties, and guarantees as national investors, without limitations, or prior authorization of the investment.

Free exchange is guaranteed, without restrictions on inflows and outflows of capital, dividends, interest, and royalties for technology transfers, which are subject to the taxes established by law.

The free convertibility of currency and the free import and export of goods and services are guaranteed.

Investors may contract investment insurance in the country or abroad.

Goods and services may be produced and marketed freely in the country, and their prices may be determined in accordance with commercial interests.

National and foreign investors are subject to the taxes in force.

Salaries and wage levels are determined by mutual agreement between employees and workers.

No economic or financial activity shall have protectionist privileges granted by the State, which does not recognize any form of private monopoly.

Both joint-venture contracts between national and foreign firms as well as activities in free zones have been specifically regulated.

The State does not endorse or guarantee loans contracted by private enterprises.

Bolivian legislation and agreements for reciprocal promotion and protection of investments signed by Bolivia establish the following principles:

National or local treatment: Foreign investors are afforded the same rights and obligations as Bolivian investors.

Most-favored-nation clause: The treatment given to investments by investors from a third country is extended to others when it is more favorable, provided that it was not granted by virtue of an agreement for the establishment of a free trade area, a customs union, a common market, a regional economic union, or by virtue of an agreement totally or mainly concerning tax matters.

Article 22 of the Political Constitution of the State indicates that private ownership is guaranteed provided that it is not used in a manner detrimental to the collective interest. Expropriation may be imposed for reasons of public utility, if the property does not fulfill a social function, determined in accordance with the law and upon payment of fair compensation.

In that connection, the Civil Code indicates in Article 108 that expropriation can only occur upon payment of fair, prior compensation, in the following cases:

1. On grounds of public utility

2. When the property does not fulfil a social function

Public utility and failure to fulfil a social function are described in accordance with special laws, regulating the terms of the expropriation procedure.

If the property expropriated for reasons of public utility is not used for the purpose that established grounds for the expropriation, the owner or his successors may reclaim it by returning the compensation received. Damages will be paid in accordance with a prior expert valuation.

The procedure and formalities that must apply in cases of expropriation are established in the Law of December 30, 1884 on expropriations on grounds of public utility.

The Law of December 30, 1884 establishes that, when a project is declared to be of public utility, the property needed for its construction shall be identified and appraised.

The appraisals are carried out by tested experts and, failing that, by practitioners in the country already qualified to perform such operations. Before proceeding with the appraisal both will swear a legal oath before the president of the municipality in question.

In appraisals of farms, the type, quality, location, and legal dimensions will be specified and these data will be used to set the value of the income and sale of the farm, stating all the circumstances taken into account in the valuation.

Upon verification of the appraisals of the farms that need to be only partially expropriated, the disadvantage of partial occupation and division of the property shall be taken into account, with a view to paying compensation for the reduced value, in accordance with Article 7. The price of the expropriation shall include the cost of the appraisal for the owner of the farm.

The owners of the appraised property shall be informed of the appraisal so that they may express their agreement or state their complaints, in which case it will be settled by the Prefecture or the Municipality, respectively.

For payment of the property subject to expropriation, payment orders will be delivered to the parties concerned and the expropriation or occupation of the land cannot occur until these orders have been paid.

If the property is encumbered by property taxes, settlement will be made in such a way as to split the price among the parties with recognized claims.

Furthermore, in the reciprocal investment protection and promotion agreements signed and ratified by Bolivia, it is established that compensation is based on the market value of the affected investments on the date immediately preceding the date on which the measure was published. If it is difficult to determine this value, compensation may be fixed based on other valuation principles generally recognized as being equitable, taking into account the capital repatriated to date, the replacement value, and other relevant factors. Any delay in payment of the compensation shall be charged interest at an established commercial rate, based on the market value, counting from the date of expropriation or loss to the date of payment.

The legality of the expropriation and the amount of compensation may be challenged in regular judicial proceedings.

No. Bolivian legislation establishes that expropriation can only occur upon payment of fair, prior compensation. However, in some cases, temporary occupation of the property and the use of equipment is allowed. (Section 2, Law of December 30, 1884).

Yes, in accordance with the following rules:

Domestic legal rules

The Bolivian foreign exchange system has no controls or restrictions of any kind.

Cash contributions can be brought into the country with no restrictions; tangible goods, and so forth are imported subject to payment of taxes; there are no specific regulations on each entry modality.

Foreign investment in a financial entity or financial services enterprise must meet the requirements and rules established for nationals (national treatment). In addition to the requirements established in the Commercial Code, these investments must also comply with those established in the Law on Banks and Financial Institutions.

Access to credit is not restricted or limited by the nationality of the individual or corporation but is based on such criteria as the risk rating/creditworthiness and repayment capacity of the individual or corporation. Banks are free to lend money to any person, whether national or foreign. The Superintendency uses technical standards to establish risk weighting, which is not determined on the basis of the nationality of the loan applicant but on the guarantees provided by the borrower.

Regarding the opening of current accounts, the Superintendency has issued a Current Accounts Regulation (SB/003/91 of January 10, 1991), which does not discriminate based on nationality.

A liberal exchange regime is guaranteed, as there are no restrictions on inflows and outflows of capital, or on remittances abroad of dividends, interest, and royalties through transfers subject to payment of the taxes established by law.

In accordance with Article 51 of Law No. 843 (codified in 1995), those who make payments, credits, or transfer income of Bolivian origin to any foreign beneficiaries listed in Article 4 of Supreme Decree No. 24051 and Articles 19 and 44 of Law No. 843, shall withhold and pay, by the 15th day of the month following the one in which the transactions under reference took place, at the rate of 25% of the full amount paid, credited, or remitted, in compliance with Article 34 of Supreme Decree No. 24051 of June 29, 1995.

In the case of branches of foreign companies, it is assumed, barring evidence to the contrary, that profit distribution occurred, irrespective of the date on which the funds were remitted, by the deadline for submission of financial statements to the Tax Administration for each type of activity concerned.

In the case of agencies of foreign enterprises and other similar entities domiciled in the country and engaged in activities that are partially carried out in the country, it is assumed, barring evidence to the contrary, that 16% of the gross income obtained in the country and set out in paragraphs a), b), c), and d) of Article 42 of Supreme Decree No. 24051 constitute net income from Bolivian sources subject to the Corporate Profits Tax and thus taxable at the rate of 25% established in Article 50 of Law No. 843 (codified in 1995).

Remittances abroad of income derived from activities partially carried out in the country, as defined in Article 42 of Supreme Decree No. 24051, must be encashed in accordance with the provisions of Article 43 of that Supreme Decree.

There is only one type of foreign exchange regime, single and flexible.

Our tax system is the result of a radical reform implemented by Tax Reform Law 843 of May 20, 1986, which responded to the demands of the economic situation resulting from a highly restrictive policy, designed to reduce public spending and increase revenue mainly through taxation. The objective was largely attained thereby providing today’s climate of fiscal and monetary stability in the country, thanks to a transparent, stable, and sound economy, and good tax behavior.

After taking the first step in stabilization, policies aimed at growth and revitalization of the global economy are now being pursued, but this cannot be achieved if the tax system is not tailored to meet this need.

It was in this context that Law 1606 of December 22, 1994 was promulgated, with a view to modernizing the current tax system, establishing, modifying, and repealing taxes in pursuit of systems that would provide incentives to investment and maintain revenue levels.

Under the country’s prevailing Investment Law as it relates to taxes, national and foreign investments are subject to the General Tax Regime in force.

Profits, gains, dividends: 12.5%

Reinvestment: not taxable

Foreign remittances: 12.5%

Interest on foreign loans: 12.5%

Royalties: 12.5%. In the case of transportation and communications enterprises, international news agencies, insurance companies, film producers and sound reproduction: 4%

Services contracted abroad: 12.5%

Contributions of capital in tangible goods: 5% tariff and 13% VAT

DS 22585 of 08/20/90

Consolidated customs tariff (GAC), 10% of c.i.f. customs value for other imports.

Consolidated customs tariff (GAC), 5% of c.i.f. customs value for imports of capital goods.

No. Article 27 of the Political Constitution of the State establishes that taxes and other government levies are payable by all persons; their creation, distribution, and repeal will be across-the-board and determined on the basis of equal burden sharing by all taxpayers, proportionally or progressively, as the case may be.

Likewise, in accordance with Bolivia’s current Investment Law on tax matters, national and foreign investments are subject to the current general tax regime, thus there are no special tax rules for foreign investment.

With Argentina, being renegotiated.

In Bolivia, there are no benefits or incentives exclusively for foreign investment.

Generally applicable benefits are as follows:

Law No. 1182 of 08/17/90

Chapter I, Article 2

Investors and the enterprises or companies in which they have an interest, have the same rights, duties, and guarantees that the laws and regulations grant to national investors, with no legally established limitations.

Article 20

Free industrial, commercial zones, warehouses or temporary admission regimes for exports are subject to the separation of the customs and tax regimes and are tax and tariff exempt.

Supreme Decree 23944 of 01/30/95

Through tax refund certificates (CEDEIMs), the State will refund the following to exporters:

Laws 876 and 877 of April 25 and May 2, 1986, respectively, give preferential treatment to industries establishing themselves in the departments of Oruro and Potosí.

The preferential treatment involves waivers of payments of national, departmental, municipal, and university taxes, in addition to the sales tax exemption for a period of five years.

Similarly, the construction and buildings erected for the operation of new industries in those departments are also free of all taxes for a period not exceeding three years.

The exemptions are applicable to personal income, warehousing and moving services for all machinery imported into these departments.

This law amends Article 1 of Law 876 on the amount of investment required for industries established in the Oruro or Potosí departments, in order to qualify for the benefits set out in Laws 876 and 877.

At first, the level of capital was US$250,000 but was revised by Law 967 to US$100,000.

This Supreme Decree regulates Laws 876 and 877 of April 25 and May 2, 1986 and their amendment 967 of January 26, 1988, in accordance with the Tax Reform Law.

Below is a summary of the benefits enjoyed by industries established or remaining in Oruro or Potosí, in accordance with the Supreme Decree under reference.

1) Profits tax, for a term of five years counting from the start-up of operations.

2) Real property tax and motor vehicle tax (IPBIVA) on all urban property purchased or built that form part of the fixed assets and serve that purpose exclusively, for a period not exceeding three years.

3) Exemption from the consolidated customs tariff (GAC) and value added tax (VAT) for five years, except for services provided for imported machinery prior to the start-up of operations. This exemption applies exclusively to the installation of new plants or manufacturing industries and these fixed assets must remain in the beneficiary departments for the entire duration of the exemption in favor of the new industry.

4) Value added tax (VAT), which enterprises are responsible for collecting and paying, is fully applicable to the machinery referred to in paragraph 3) of this Article.

5) In accordance with Laws 876 and 877, regulated by this supreme decree, the additional VAT levied on hired personnel or employees and owners and shareholders, should be paid under the terms and conditions established in current legal rules.

Article 2 of this Decree establishes that the Tax Administration must verify the amount of the investment, which may be no less than US$100,000 and the start-up date for the purpose of granting tax exemptions. Said Administration is also authorized to establish the administrative modalities for actualizing the benefits granted in the legal provisions cited.

The supreme decree under reference includes among the exemptions from the consolidated customs tariff imports of raw materials used in the industries established in Oruro and Potosí.

Article 1 establishes that payment of the GAC on imports of raw materials shall be waived, exceptionally and within the framework of Laws 876, 877 and 967, for five years, counting from the start-up of production activities, on imports of raw materials, provided that said materials are not produced in the country, are subject to a physical or chemical transformation process, and are used in the production of goods by the new industries that will be or are being set up in the Oruro and Potosí departments.

Plants producing alcohol, beer, wines, brandies, and spirits are not eligible for these exemptions. The storage, moving, and housing services provided for any machinery imported into the department are not exempt.

Lastly, enterprises, be they national or foreign, must be established in accordance with the rules set forth in the Commercial Code and comply with registration in the Single Taxpayer Register (RUC) and the Business and Joint Stock Corporation Register (RECSA).

Bolivian legislation makes no distinction between national and foreign investors, thus the former have access on equal terms to the courts and may exercise all the rights that the law grants to Bolivians.

In addition, Article 24 of the Political Constitution of the State states that foreign enterprises and foreigners are subject to Bolivian law and may not invoke exceptional situations nor claim diplomatic rights.

Bolivia is a member of the following conventions:

With the following countries:

Argentina: Reciprocal Investment Promotion and Protection Agreement between the Government of the Republic of Bolivia and the Government of the Argentine Republic: March 17, 1994, ratified by Law 1594 of August 12, 1994.

Canada: Agreement on Foreign Investment Insurance between Bolivia and Canada. Exchange of notes of March 22, 1988.

Chile: Reciprocal Investment Promotion and Protection Agreement between the Republic of Bolivia and the Republic of Chile September 22, 1994. Pending ratification.

Ecuador: Reciprocal Investment Promotion and Protection Agreement between the Republic of Bolivia and the Republic of Ecuador signed on May 25, 1995 in Quito, Ecuador.

Mexico: Chapter XV on Investments of the Free Trade Agreement between Bolivia and Mexico: signed September 10, 1994. Effective as of January 1, 1995 through Supreme Decree 23933 of December 23, 1994.

United States: Agreement between the Government of Bolivia and the United States of America on Investment Guarantees: signed December 19, 1985.

Peru: Reciprocal Investment Promotion and Protection Agreement between the Government of the Republic of Bolivia and the Government of the Republic of Peru: July 30, 1993, ratified by Law 1573 of July 12, 1994.

South Korea: Reciprocal Investment Promotion and Protection Agreement signed April 1, 1996.

Article 228 of the Constitution establishes the principles of legal rank and hierarchy, indicating that: The Political Constitution of the State is the supreme law of the national legal system. The courts, judges, and authorities will apply it with precedence over other laws and those laws take precedence over any other resolutions.

Thus, the legal hierarchy in Bolivia is as follows:

1) Political Constitution of the State

2) Laws

3) Supreme Decrees - Municipal Ordinances

4) Supreme Resolutions

5) Secretariat Resolutions

6) Undersecretariat Resolutions

7) Administrative Resolutions

In the case of international agreements, such as the reciprocal investment promotion and protection agreements, Bolivia uses the system of conversion of the treaties, meaning that the legislature passes an introductory law (approving the agreements), which gives them validity in the domestic legal system. Consequently, once ratified, the agreements are considered to be laws and, in accordance with the principles of international law, take precedence over other laws governing these areas. Thus, this type of agreement, when ratified, is subordinate to the Constitution only in the legal hierarchy.

The decisions of the Board of the Cartagena Agreement enter into force as of the date on which they were approved by the Commission and are directly applicable as of the date of their publication in the Cartagena Agreement’s official gazette, unless a later date is stipulated. Also, when the text of the decisions so permit, they will be incorporated in domestic law through an express act indicating the date of entry into force.

See response to the preceding question.

Though the country does not centralize investment activity in a specific entity, there are a number of public and private institutions that deal with investments in terms of policy design, investment dissemination and promotion.

These are listed below, specifying their activities:

By Law 1493 of September 17, 1993 governing the Law of Ministries of the Executive Branch and Supreme Decree 23606 of October 12, 1993 regulating said law, the National Secretariat of Industry and Commerce is responsible for foreign investment in the country.

It comprises the Undersecretariat of Industry and the Undersecretariat of Commerce.

Investments are the responsibility of the Undersecretariat of Industry, which has an Investment Promotion Directorate.

The objective of the National Secretariat of Industry and Commerce is to develop the industrial and commercial sectors, strengthening the country’s export capacity, in particular.

The National Secretariat of Industry and Commerce is responsible for:

The specialized operating functions of this Secretariat are carried out by the following undersecretariats:

Through the National Secretariat of International Economic Relations, it is responsible for coordinating and following up international economic negotiations; supervising policies designed to increase the share of the national economy in international markets, and to coordinate and chair inter-institutional meetings on bilateral and regional nonfinancial issues.

In that connection, the Undersecretariat of Integration, a subdivision of the National Secretariat, negotiates reciprocal investment promotion and protection agreements in coordination with other institutions working in this area.

The Undersecretariat of Economic Promotion, which is responsible for promoting action to achieve a greater share for the national economy in world trade, handles investment promotion through Bolivia’s commercial representatives abroad and by organizing missions to various countries to promote investment in Bolivia.

A nonprofit program, financed from the outset by USAID/BOLIVIA and managed by the Carana Corporation.

The main functions of BOLINVEST are to promote exports and promote investment in the country.

The main tasks in the area of investment are:

It is an operating unit of the Chamber of Industry, which is nationwide in scope and began operations in 1992. Its main objective is to promote investment opportunities inside or outside the country with a view to developing productive industry. The CPI provides an efficient and practical service to businessmen in terms of information on investment opportunities. It also has the advantage of being directly linked to the Confederation of Private Entrepreneurs of Bolivia through its various professional bodies and to governmental entities connected with investment, namely, the Secretariats of Industry and Commerce, Capitalization, Economic Promotion, Environment, and so forth. Maintaining operational international programs and conventions is another of the advantages the CPI has in conducting its work, this time in the international sphere.