Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.

Bolivia is considered a small market, where few international companies operate directly. Foreign firms typically sign agreements with local agents or distributors, which often have offices in one or more of the major cities in Bolivia (La Paz, Santa Cruz, and Cochabamba).  When designating an agent or distributor, it is important for businesses to seek counsel from a Bolivian law firm in order to ensure appropriate protections and that any contracts include an arbitration clause as a means of resolving any disputes that may arise. 

The designation of an agent or distributor in Bolivia is regulated by the Commercial Code (Law 14379) in articles 1248 through 1259. 
Under Bolivian law, the agent or distributor “assumes, by independent and established means, the duty of promoting and exploiting business opportunities in a specific sector and predetermined region of the country, as an intermediary between national or international businesses, with freedom to develop other commercial activity."  The Bolivian Commercial Code (Article 1251) also establishes that all the contracts for distribution or agency signed outside of Bolivian territory but with execution in Bolivia are subject to Bolivian laws without restriction.

According to the Bolivian Civil Code (Article 492), agents must register with Bolivia’s National Chamber of Commerce, the Bolivian National Tax Service (Servicio de Impuestos Internos), the Vice Ministry of Industry and Commerce, FUNDEMPRESA (Fundación para el Desarrollo Empresarial), and the local municipal government.

Government tenders can be national or international.  Tenders must be opened to international companies when the total amount exceeds $10 million.  If an international company would like to be considered for a national tender, it can partner with a local company or representative agent.  To register as a representative, agents must present a letter or agreement to the National Chamber of Commerce confirming their appointment.  The document must clearly indicate the contract’s validity period, the agent’s sales area (national or regional), the agreement’s financial terms, and whether the foreign firm has the right to appoint other agents in other areas of Bolivia.

As of June 2015, the U.S. Embassy in La Paz became an official Commercial Partner Post with the U.S. Department of Commerce.  The Embassy offers the full range of Commercial Services at the same prices as other Partner Posts.  More information can be found on our website or by contacting us. 
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.