Wine Law

518 WINE LAW In addition to this tax and the VAT, which is currently 16% 38 , Venezuelan legislation imposes a parafiscal contribution of 2% of gross sales to companies that carry out activities related to the industry and trade of ethyl alcohol and alcoholic species, which have sales of more than 100,000 Tax Units during its last fiscal year, which must be invested in science, technology and innovation 39 . III. WINE IN THE WORLD OF TRADEMARK LAW In Venezuela, trademarks are regulated by the Law on Industrial Property of 1956 40 , the purpose of which is to govern “the rights of inventors, discoverers and introducers over creations, inventions or discoveries related to the industry; and those of the producers, manufacturers or merchants on the phrases or special signs they adopt to distinguish the results of their work or activity from similar ones” (Art. 1). This Law was not applied during the period in which the Andean Community’s common regime on industrial property, regulated by 20. Sparkling Wine: It is the wine whose carbon dioxide comes from a second fermentation of natural grape sugar carried out in closed containers. 21. Champagne: It is the wine whose carbon dioxide comes exclusively from a second fermentation of additional sugars introduced, such as tirage liquor, which takes place in the bottles that reach the consumer, and is applied exclusively to the product made in the region from Champagne, France. It can be added to the so-called “Expedition Liquor” to obtain the dry, semi-dry and sweet types, reserving the names “brut” or “natural” to distinguish the original product in each case. 22. Fruit Wine: It is the wine obtained by the alcoholic fermentation of the juice or must of any fresh or dried fruit other than grapes, with or without the addition of sucrose and water before fermentation, to obtain an alcoholic degree between 7° and 14° GL, inclusive, which must come from at least 50% of the sugars in the fruit. This product must be designated with the name and condition of the fruit used. 23. Liquor Wine: It is the wine with an alcoholic degree higher than 14° GL, without exceeding 20° GL, from the alcoholic fermentation of the grape juice or must, whether or not with alcohol. If headed, the addition of alcohol may not exceed 10% of the actual volume of the species to be processed. 24. Compound Wine: It is the wine made by mixing natural wine of grapes in a proportion not less than 75% of the total volume of the species and alcohol with distillates of vegetables or parts of these, macerations, infusions of the same, mixtures of them, grape musts or juices and other vegetables, concentrated or not, sugars, caramel, liquor wines and other substances authorised by the Ministry of Health. The actual strength of these wines must be greater than 14° GL, without exceeding 20° GL. When liquor wines are used in the production of compound wines, the addition of alcohol may be dispensed”. 38 Presidential Decree No. 4.079, Official Gazette No. 41.788, 26 December 2019. In addition, the Constituent Decree of Partial Reform of the Decree with Rank, Value and Force of Law that establishes the Value Added Tax (Special Official Gazette No. 6.507, 29 January 2020) opens the possibility of an over rate between 5% and 25% when the good is sold in foreign currency or with any cryptocurrency not authorised by the Central Bank of Venezuela. 39 Organic Law on Science, Technology and Innovation, Special Official Gazette No. 6.151, 18 November 2014. 40 Official Gazette No. 25.227, 10 December 1956.