[Venezuelan Medical Equipment Market Overview]{.underline}

Prepared by: Ms. Kalenka Velazquez, of the United States Commercial
Service

**U.S. Embassy, Caracas, Venezuela**

# 

Medical equipment in Venezuela comprises an important segment of the
health sector. Like others, this particular sector has been depressed as
a result of the economic and financial crisis Venezuela has been
suffering. Prospects for recovery will depend on government efforts to
remodel social service programs to assure improved and more efficient
services for lower income people, who actually constitute the majority
of the population. All medical equipment employed in the country is
imported. Aside from disposable items such as syringes, surgical cloth,
and hospital furniture there is no manufacturing of medical equipment in
Venezuela.

Despite having shown a decrease in imports into Venezuela, the U.S.
remains the market leader of medical equipment for importers and
distributors. Sales focus mainly on: electrocardiograms, tomography and
nuclear medicine equipment, ultrasonic equipment, hemodialysis
equipment, electroencephalograph, syringes, needles, catheters,
ophthalmologic and optical testing apparatus, X-rays apparatus, and
hearing aids. There are also some municipal governments that are buying
some Mobil Intensive Care Units and High Tech Ambulances. Some imports
have been replaced by third country manufacturers such as Germany,
Italy, Cuba, Mexico and Brazil but the United States continues to be the
number one commercial partner for Medical Equipment imports due to the
geographical position, the better quality, competitive prices and
technical support.

General the Health budget in Venezuela has never been enough to cover
the demand of equipment and supplies for the public hospitals and
institutions but the government has increased the investment in Medical
equipment because they are implementing new social program such as "Plan
Barrio Adentro" and the "Clinicas Populares" to gain more popularity.
The government is trying to concentrate and control the Public Health
service through the central government substituting old social security
programs with new popular clinics.

The Private sector can subsist thanks to social security programs such
as Medical Insurance policies and Health Care programs normally offered
as part of labor benefits in most of the private companies. The private
clinics and hospitals are investing specially in new technology
diagnostic and treatment equipment.

Venezuela operates under the Harmonized Tariff Schedule adopted in 1995.
All imports are assessed at a 1% customs handling charge. The imports
duties are calculated on the CIF value of the shipment. In addition,
there is a 16% value added tax. In all cases related to products falling
under COVENIN standards, customs authorities require a Venezuelan
Certificate of compliance. All medical equipment must be registered with
the Ministry of Health and Social Development (MSDS).

Rank Name of Sector ITA Code

\-\-\-- \-\-\-\-\-\-\-\-\-\-\-\-\-- \-\-\-\-\-\-\--

+---+-----------------------------+-----------+-----------+-----------+
|   | > Medical Equipment         | > MED     |           |           |
+---+-----------------------------+-----------+-----------+-----------+
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+---+-----------------------------+-----------+-----------+-----------+
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+---+-----------------------------+-----------+-----------+-----------+
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+---+-----------------------------+-----------+-----------+-----------+

Sources: US Census Bureau, World Trade Atlas, Instituto Nacional de
Estadisticas, Seniat and Asociacion Venezolana de Distribuidores de
Equipos Medicos.