Author: dev_

In order to formalize the hiring of employees for less than a full working day, unions related to the Paraguayan Chamber of Supermarkets (CAPASU) and the Ministry of Labor have agreed on a draft bill to be presented soon.

This regulation would allow young students to work part-time -from 16 to 43 hours per week-, thus acquiring work experience and having the possibility of being hired later by companies on a permanent basis.

By formalizing part-time work, the aim is to avoid school dropout rates and encourage the desire to progress, offering the same benefits as a formal job: a salary that corresponds to the hours worked and social coverage as a contributor to the Social Security Institute (IPS).

If you would like to learn more about the labor regulations in force in Paraguay, please do not hesitate to contact Perla Alderete (palderete@vouga.com.py) or Walter David Vera (wvera@vouga.com.py) 

In the search for greater agility in the process and control of procedures, the Ministry of Finance has made transparent the management of files filed by citizens, public institutions, decentralized entities, international organizations and others, with online technology in real time, thanks to which only an Internet connection is needed to view the current status or the progress of a file in the Ministry of Finance.

The consultation process is simple:

• Access the website of the Ministry of Finance (http://www.hacienda.gov.py)
• Enter the “File Status” menu (located in the right column).
• Enter the file number and the corresponding year.
• Click on the “Search” button.

Android users can also download the Ministry's application (app) free of charge from Google Play to carry out this and other procedures.

If you would like to learn more about procedures before governmental institutions, please contact Andrés Vera (avera@vouga.com.py) or Silvia Benítez (sbenitez@vouga.com.py)

In order to make it easier for taxpayers to comply with the requirements established by the latest regulations that introduced changes in the regime of joint stock companies, the Treasury Counsel's Office of the Ministry of Finance enabled electronic procedures such as notification of the registration of amendments to bylaws, exchange of shares and communication of share transfers.

Likewise, the Attorney's Office issued Resolution AT No. 05/18 establishing the documentary requirements for each process, with the purpose of electronically submitting such documents. The regulations are available on the institution's website (www.abogacia.gov.py), in the “Legal Framework” section.

Training sessions are also planned for the interior of the country, the schedules of which will be published in due course on the web page and other institutional communication networks.

If you wish to know more about the procedures derived from the modifications to the regime of Joint Stock Companies, do not hesitate to contact Perla Alderete (palderete@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py)

Perla Alderete and Marco Colmán, from Vouga Abogados, lectured on the changes introduced by Law No. 5895/2017 and Decree No. 9043/2018 in the regime of Joint Stock Companies, in a talk held at the premises of the National Chamber of Commerce and Services last Monday, August 13.

The event was aimed at the Chamber's associates and others interested in the subject, and analyzed several relevant aspects for the adaptation of joint stock companies to the new requirements established by the latest regulatory provisions applicable to them. Issues related to the procedures, mechanisms, deadlines and obligations to be complied with, as well as the penalties applicable in case of non-compliance, were discussed.

At Vouga Abogados we consider it important to contribute to the dissemination of legal knowledge, in order to promote full compliance with legal regulations, which results in a more orderly, safe and transparent social relationship.

If you would like to know more about the modifications introduced by the latest legal provisions to the Joint Stock Company regime, please do not hesitate to contact Perla Alderete (palderete@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py)

The prestigious directory Chambers & Partners, dedicated to the publication of guides that identify and rank the best lawyers and law firms in the world, has once again highlighted Vouga Abogados in its 2019 edition, rating the firm in all practice areas listed for Paraguay, in addition to making individual recommendations of our lawyers.

The publication has rated our firm in Band 1 for Banking and Finance, Corporate/Commercial and Dispute Resolution, Band 2 for Environmental and Band 3 for Intellectual Property.

As for individual recommendations, we include below the list of the lawyers of our firm with the corresponding rating given in their respective areas:

Banking and Finance

Cynthia Fatecha - Banda 1

Rodolfo Vouga - Band 1

Carlos Vouga – Up and Coming

Corporativo/Comercial

Rodolfo Vouga - Band 1

Perla Alderete – Band 3

Rodolfo Guillermo Vouga Z. – Up and Coming

Corporate/Commercial: labor and employment.

Perla Alderete – Band 1

Dispute Resolution

Mirtha Dos Santos – Band 2

Environmental

Marta Martinez – Associates to watch

Intellectual Property

Laura María Lezcano Martínez – Band 3

Chambers and Partners has been providing in-depth global legal industry research for over thirty years, thanks to a London-based team of more than 200 researchers who collectively speak 23 languages and conduct thousands of interviews each year, ensuring a robust research process with measurable results.

Vouga Abogados is grateful for the trust placed in us by our clients, who are the basis of the achievements of the firm and its professionals.

Learn more about our firm's profile in the Chambers and Partners guide here: https://www.chambersandpartners.com/Latin-America/firm/3332/vouga-abogados

To keep growing aligned with compliance requirements and high ethical standards that characterize professional practice, we are pleased to share with our clients, colleagues and the business community in general the implementation of our Code of Ethics and Conduct (CEC). It is the result of an internal process that successfully ended up in August. The CEC is available to team members and clients as a document attached to this presentation.

El CEC tiene como fundamentos las normas legales, los principios éticos y las buenas prácticas de excelencia aplicables al ejercicio de la profesión de abogado y la prestación de asesoramiento profesional en general, tanto a nivel nacional como internacional, además de reflejar las buenas prácticas propias que han sido internalizadas a lo largo de décadas de servicio, y que otorgan al Estudio una identidad característica en el ejercicio de la profesión jurídica.

De esta manera plasmamos en un documento, que ponemos al alcance de todos, los principios que aplican a todas las relaciones profesionales de los integrantes, incluyendo aquellas internas dentro del Estudio, y las externas con los clientes, otros estudios, colegas, la administración pública y la sociedad en general.

En Vouga Abogados valoramos estos principios en el firme convencimiento que la ética y excelencia profesionales son inseparables entre sí y esenciales para el éxito empresarial duradero y sustentable, en razón de que generan confianza, respeto, calidad y beneficios mutuos.

To facilitate the effective application of the CEC, we enable the email address etica@vouga.com.py , so that any interested person can make queries or complaints related to the CEC.

Our CEC is in line with the work being done by the Firm in the area of Compliance for different clients. Currently, we are working on a survey among very representative companies of the Paraguayan business community in order to achieve a report on Compliance—a pioneer in the country.

Corporación Paraguaya Distribuidora de Derivados de Petróleo S.A. (Copetrol) -through a subsidiary of the Copetrol group-, and Petróleo Brasileiro S.A. -through its subsidiary Petrobras International Braspetro BV (Petrobras)-, signed on June 27, 2018 a contract for the transfer of Petrobras' stake in the companies called Petrobras Paraguay, which operate the fuel, lubricants and LPG distribution business in Paraguay, in a transaction estimated at USD 383,000,000 that, due to its value and importance, constitutes a true milestone in business at the local level.

The agreement was signed after a demanding selection process in which Petrobras chose Copetrol among 10 other competitors.

During the negotiation process, Copetrol was constantly advised by the Vouga Abogados team, which covered all aspects of the transaction, including due diligence, review of the SPA (stock purchase agreement) and, in particular, leading the negotiations with Petrobras' M&A team and legal counsel. The closing of the transaction is subject to the approval of the National Competition Commission (CONACOM), the Paraguayan antitrust agency.

In accordance with the agreements signed, the operations of the acquired entities will continue to be managed by an independent subsidiary of Copetrol.

Copetrol has indicated that it will seek to reinvest in Paraguay the results of the operations of the acquired companies, in order to generate sources of employment and promote the growth of both the company and the country.

If you would like to learn more about our Mergers and Acquisitions practice, please feel free to contact Rodolfo G. Vouga Z. (rgvouga@vouga.com.py), Perla Alderete (palderete@vouga.com.py) or Carlos Vouga (cvouga@vouga.com.py).

By means of Decree No. 9043/2018, signed on June 12 and published in the Official Gazette on June 15 of the same month, the Executive Branch regulated Law No. 5895/2017 “Establishing transparency rules in the regime of companies incorporated by shares”. The new provisions bind companies incorporated by shares within the territory of the Republic, as well as foreign companies incorporated by shares that transfer their domicile to the national territory, as well as the shareholders of these companies.

The decree, which provides mechanisms to ensure the availability, access, use and destination of the relevant information required by the Ministry of Finance from companies incorporated by shares, also establishes certain provisions on corporate matters. In particular, it establishes formalities and mechanisms for the execution of the exchange of bearer shares for registered shares, the transfer of shares and the application of fines generated as a consequence of non-compliance with the law. In addition to the fine, non-punitive measures are also provided for as a consequence of non-compliance with legal and regulatory provisions, such as the blocking of the RUC of the company or the suspension of the economic rights of the shareholders.

It is relevant to mention that all the amendments to the corporate regime provided by Law No. 5895/2017 and the Regulatory Decree were carried out in consideration of the Recommendations of the Financial Action Task Force (FATF), which constitute an international scheme of measures that countries must implement to combat money laundering, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, among other threats to the integrity of the international financial system.

These are the highlights of Decree 9043/2018:

1. Registration of the amendment to the bylaws

Article 4 provides that the by-laws must be approved by the minutes of the Board of Directors, which must state the number of shares subscribed and the number of shares subscribed and subscribed. The minutes of the board of directors must be executed in public deed and registered, after the Treasury Counsel's Office has issued an opinion, in the public registries. Once registered, the Treasury Counsel's Office must be informed again of the conclusion of such registration.

2. Exchange of shares

Article 6 sets forth the procedure for the exchange of shares and establishes that:

a) The exchange of the bearer share for the registered share shall be made upon physical presentation of the bearer share by the holder of the same.

b) The holder of the bearer share must indicate the date, by virtue of what title and from whom the share to be exchanged was acquired.

c) At the time of the exchange, the company will proceed to cancel the share, and must archive it both physically and digitally for a period of 5 years for an eventual verification by the Ministry of Finance. In case of non-compliance with this obligation, a fine of 400 jornales will be applied.

d) Each exchange procedure must be recorded in board minutes, and each board minute must be communicated to the Treasury Solicitor's Office within 15 days of its occurrence. The Treasury Counsel's Office will issue a record of the share exchange for each minute submitted. In case of failure to comply with the deadline, a fine of 100 daily wages will be applied.

In relation to the exchange of shares and fines for non-compliance, the Decree establishes that shareholders who fail to comply with the obligation to carry out the exchange within 24 months from the effective date of Law 5895/17 will be fined according to the elapsed term, with the following graduation: (i) shareholders who make the exchange up to 6 months after the 24 months established for the exchange, fine of 100 minimum daily wages; (ii) those shareholders who make the exchange up to 12 months after the 24 months established, fine of 200 minimum daily wages; (iii) those who make the exchange up to 18 months after the 24-month term established, fine of 400 minimum daily wages; and, (iv) those who make the exchange from 18 months or more after the 24 months established, fine of 500 minimum daily wages.

3. Individualization of the final beneficiary

Companies incorporated by shares must identify the beneficial owners and keep a record of them, indicating the following data: name, ID or RUC number, domicile, profession and reason for becoming a beneficial owner in the terms of article 3. The company must communicate this to the Treasury Solicitor's Office once a year, within the term to be determined by the Treasury Solicitor's Office.

It is important to mention that, for purposes of determining the beneficial owner, Article 3 of the Decree establishes that a beneficial owner is a person who (i) owns at least 10% of the shares, or (ii) exercises ultimate effective control of the company, or (iii) uses, enjoys or benefits from the assets of the company, or on whose behalf or for whose benefit a transaction of the company is carried out.

4. Data update and stock transfer

A copy of the updated share registry book and other required data must be submitted to the Office of the Attorney General. The deadline for this update will be regulated by the Office of the Attorney. Once the deadline is regulated, the fine for non-compliance will be 100 minimum daily wages.

The Decree also provides that such regulation will establish the requirements that the Limited Liability Companies (SRL) must comply with in order to update the data.

On the other hand, the Decree provides that from now on the transfer of shares must be reported again to the Attorney's Office within 5 days, including all the data of the beneficial owner. In case of non-compliance with this requirement, a fine of 200 minimum daily wages will be applied. In addition, the Decree establishes a fine of 100 minimum daily wages in case of non-communication of the transfer of shares by the shareholder to the company. Although the Decree does not regulate the obligation of communication of the transfer of shares by the shareholder to the company, it imposes a fine for failure to do so. In this regard, it is worth remembering that Law 5895/17 establishes that, in the event of a transfer of shares, the buyer must communicate it to the company within 5 business days, without prejudice that the communication is made by the seller. For this purpose, the name and surname, identity card or RUC and the domicile of the buyer must be indicated.

In the case of issuing companies, the Decree establishes that the National Securities Commission will be in charge of communicating the transfer of shares, under the same terms described above. For such purposes, the responsibilities and obligations provided for companies and partners in Law 5895/17 and in the Decree shall be equally applicable to the National Securities Commission.

5. Registration of companies with the Treasury Solicitor's Office and notification of Assemblies.

Companies incorporated after the entry into force of the Decree have 30 working days from the date of registration in the public registries to register with the Attorney General's Office (after publication of the extract of incorporation for 3 days in a newspaper of wide circulation). The same term applies to request the registration of any modification of bylaws, merger, transformation and dissolution. In case of non-compliance, a fine of 100 jornales will be applied.

Companies incorporated prior to the Decree have 90 working days from the date of effectiveness of the Decree to register with the Attorney General's Office (after publication of the extract of incorporation for 3 days in a newspaper of wide circulation). In case of non-compliance, a fine of 100 jornales will be applied.

All notices of Ordinary or Extraordinary Meetings must be given within 15 days after the meeting is held. In case of non-compliance with the deadline, a fine of 100 jornales shall be applied.

6. Suspension of economic rights

The Decree establishes that the suspension of the economic rights provided for in Law 5895/17 of the shareholders who do not carry out the exchange will be applicable without prejudice to the fines set forth in the Decree. In the event that the company does not suspend the economic rights of the shareholders who do not perform the exchange, the company will be fined with 200 minimum daily wages.

7. Information and consequences. Blocking of RUC

Once the 24-month term for the exchange of shares has elapsed, the Attorney's Office will communicate on a bimonthly basis to the Central Bank of Paraguay and to the Undersecretariat of State for Taxation the list of companies that complied with such obligation. With such information both the BCP and the SET will take the necessary measures with respect to the non-compliant companies and will inform SEPRELAD.

The companies affected by the Decree will be subject to blocking of the RUC until they have regularized their situation.

8. Application of fines and appeals against penalties

If the fine is accepted directly, a reduction of 50% of the fine will be granted, up to the limit of the minimum fine provided for in the regulation. In case the fine is not accepted, the opening of the summary proceeding will be requested, not being able to benefit from the aforementioned reduction, and the procedure for the determination of penalties for tax violations established in Law 125/91 and its amendments will be applied.

Finally, the Decree establishes the procedure for appeals against direct sanctions applied by the Bar.

If you would like to know more about the regulations to be complied with by joint stock companies in Paraguay, do not hesitate to consult Carlos Vouga (cvouga@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py).

1. What is the law applicable to arbitration in Paraguay?

The law regulating arbitration, both domestic and international, is Law 1879/2002, which incorporates with minor modifications the Model Arbitration Law of the United Nations Commission on International Trade Law (UNCITRAL). Therefore, Paraguayan arbitration law follows international arbitration standards, which makes Paraguay an attractive venue for international arbitration.

2. In what cases is a dispute considered international under Paraguayan law?

According to art. 3.c of Law 1879/02, a dispute is international when: a) The domiciles of the parties are in different countries at the time they formalize the arbitration agreement; b) The place where the performance is to be rendered or where the subject matter of the dispute is most closely related is not a country in which one of the parties is domiciled.

3. Are there mandatory provisions that must be applied to all arbitration proceedings regardless of the will of the parties?

Paraguayan arbitration law gives the parties flexibility to adapt the procedure to their needs. The only limit to this power is that both parties must be treated equally and have the same opportunity to assert their rights.

4. Has Paraguay ratified the New York Convention? If so, has it made any reservations to it?

Yes, it has ratified the New York Convention. It has not made any reservations to it.

5. What other conventions or treaties related to arbitration has Paraguay signed?

Paraguay is also a party to the Inter-American Convention on International Commercial Arbitration and the Inter-American Convention on the Extraterritorial Effectiveness of Foreign Judgments and Arbitral Awards. As a member of the Southern Common Market (MERCOSUR), Paraguay has ratified the MERCOSUR International Commercial Arbitration Agreement (Decision of the Common Market Council No. 3/98).

Arbitration agreement

6. What are the requirements for the validity of an arbitration agreement?

The arbitration agreement must be in writing. This requirement is fulfilled in many ways. The arbitration agreement may be contained: a) in a single document signed by both parties; b) in an exchange of letters or telegrams; c) in an exchange of statements of claim and defense in which one party affirms the existence of the arbitration agreement and the other party does not deny it. In addition, a reference in a contract to a document containing an arbitration agreement is valid as long as the contract is in writing and the reference implies that the arbitration agreement is part of the contract.

7. How are arbitration agreements enforced?

If a dispute that is subject to an arbitration agreement has been brought before a court, the court is required to refer the parties to arbitration if either party invokes the arbitration agreement, unless the court determines that the agreement is null and void, inoperative or incapable of being enforced.

8. Is there any provision in the Paraguayan arbitration law regarding the severability of the arbitration agreement?

Yes. Art. 19 of Law 1879/02 provides that, for the purposes of the arbitral tribunal's jurisdiction to decide on its own competence, the arbitration agreement is considered an agreement independent of the main contract. Furthermore, the said article provides that the decision of the arbitral tribunal that the main contract is null and void does not imply ipso iure -i.e., by operation of law- that the arbitration agreement is also null and void.

Arbitral Tribunal

9. Does the law impose any restrictions on the appointment of arbitrators?

No. The parties are free to choose the arbitrators, provided that they are impartial and independent, since partiality and lack of independence are grounds for challenging an arbitrator.

10. Are there any supplementary rules regarding the appointment of arbitrators?

Sí. Por ejemplo, en ausencia de un acuerdo de las partes con respecto al número de árbitros, el tribunal arbitral debe estar compuesto de tres árbitros.

En cuanto al nombramiento de los árbitros, la ley establece que si el tribunal arbitral está compuesto por tres árbitros, cada parte nombrará un árbitro y dichos árbitros designarán al tercer árbitro. En caso de que una de las partes no designe un árbitro dentro de los treinta días a partir de la fecha en que dicha parte recibió una solicitud de la otra parte para realizar dicho nombramiento o si los dos árbitros no llegan a un acuerdo para designar al tercer árbitro dentro de los treinta días posteriores a la fecha en el que fueron nombrados, el tribunal hará el nombramiento dentro de los siete días, a petición de cualquiera de las partes.

En un arbitraje con un solo árbitro, si las partes no llegan a un acuerdo para designar al mismo, el tribunal lo hará a petición de cualquiera de las partes dentro de los siete días.

11. ¿Cuáles son las causales para recusar a un árbitro?

Son la parcialidad, la falta de independencia y no contar con las calificaciones convenidas por las partes.

12. ¿Cuál es el procedimiento para recusar a un árbitro?

Las partes son libres de acordar el procedimiento para recusar a un árbitro. En ausencia de tal acuerdo, la parte que desee recusar a un árbitro presentará un escrito al tribunal arbitral explicando los motivos de tal recusación dentro de los quince días siguientes a la fecha de la constitución del tribunal arbitral o a partir de la fecha en la que la parte tomó conocimiento de la causal de recusación del árbitro. El tribunal arbitral decidirá acerca de la recusación al árbitro.

Si se rechaza la recusación, la parte puede solicitar al Juez de Primera Instancia en lo Civil y Comercial que dicte una decisión sobre la recusación, dentro de los siguientes quince días desde la fecha de la notificación de la decisión del tribunal arbitral que rechazó la recusación. El juez debe tomar una decisión dentro de los siete días.

Procedimiento arbitral

13. ¿Cómo se plantea una objeción a la competencia del tribunal arbitral?

La Ley 1879/02 establece que el tribunal arbitral es competente para decidir sobre su competencia y sobre las excepciones relativas a la validez y existencia del acuerdo de arbitraje. Es decir, la ley contempla el llamado Principio del Kompetenz-Kompetenz.

La excepción de incompetencia se opondrá, a más tardar, al momento de contestar la demanda. El hecho de que cualquiera de las partes haya designado un árbitro o haya participado en su nombramiento no impide que dicha parte oponga la excepción de  incompetencia.

El tribunal arbitral puede decidir sobre la excepción de incompetencia, ya sea como una cuestión preliminar o al decidir acerca del fondo de la controversia. Si el tribunal arbitral decide la excepción de incompetencia como una cuestión preliminar, cualquiera de las partes puede solicitar al Juez de Primera Instancia en lo Civil y Comercial que se pronuncie sobre el asunto dentro de los  treinta días desde la notificación de la decisión. El tribunal debe emitir una decisión dentro de los siete días y la misma no está sujeta a apelación. Mientras la decisión del Juez sobre la cuestión de competencia esté pendiente, el tribunal arbitral podrá continuar con el procedimiento, pero no podrá emitir el laudo.

14. ¿Qué facultades tienen los árbitros para conducir el procedimiento arbitral?

Con sujeción a las disposiciones de la Ley 1879/02 y al acuerdo de las partes sobre la forma en que se llevará a cabo el procedimiento, el tribunal arbitral puede conducir el procedimiento arbitral de la forma que considere apropiada. Cuenta con la facultad de otorgar medidas cautelares, de decidir acerca de la admisibilidad, relevancia y peso de las pruebas, de nombrar peritos, entre otras.

15. ¿Cuál es el idioma del arbitraje en caso de que las partes no lo hayan pactado?

No hay un idioma predeterminado. En ausencia de un acuerdo de las partes sobre el particular, el tribunal arbitral cuenta con la facultad para realizar dicha determinación.

16. ¿Existen normas acerca de la producción de las pruebas?

La ley de arbitraje contempla normas generales, pero las partes son libres de determinar normas más específicas. Si no lo hicieren, el tribunal arbitral tiene la facultad de hacer tal determinación.

17. ¿Se encuentra establecida por ley la confidencialidad del procedimiento arbitral?

No. Si las partes no acuerdan la confidencialidad del procedimiento arbitral, tal obligación no existe.

18. ¿Quién establece las costas del procedimiento arbitral?

El tribunal arbitral establece las costas del procedimiento arbitral (honorarios de los árbitros, de los peritos, gastos administrativos —en los casos de una institución— y gastos de viaje, por citar algunos) Lo hace siguiendo las reglas elegidas por las partes sobre el particular o basadas en las disposiciones supletorias de la Ley 1879/02.

De acuerdo con la Ley 1879/02, el tribunal arbitral fijará los honorarios de los árbitros en función al monto en cuestión, la complejidad de la controversia, el tiempo empleado por los árbitros y cualquier otra circunstancia relevante para el caso.

19. ¿Pueden los tribunales judiciales intervenir en el procedimiento arbitral?

Sí, pero sólo en las situaciones específicas establecidas por la Ley 1879/02. Entre ellas se encuentran: a) el nombramiento de árbitros; b) decidir acerca de las recusaciones a los árbitros; c) remoción de árbitros; d) dictar medidas cautelares antes de la constitución del tribunal arbitral y ejecutar las dictadas por el tribunal arbitral una vez que el mismo esté constituido; e) auxiliar a las partes en la producción de las pruebas; f) decidir acerca de la nulidad del laudo arbitral; g) ejecutar el laudo arbitral.

Derecho aplicable

20. ¿Cómo se determina el derecho aplicable a la controversia?

Lo determinan las partes. Si no han hecho tal determinación, entonces el tribunal arbitral determinará el derecho aplicable con arreglo a las normas de conflicto que estime aplicables. En todos los casos, el tribunal arbitral tendrá en cuenta los términos del contrato y los usos comerciales.

21. ¿Está el tribunal arbitral autorizado a decidir un caso en base a la equidad?

Sí, pero solo si las partes lo han autorizado expresamente.

Laudo arbitral

22. ¿Cuáles son los requisitos de un laudo arbitral?

El laudo arbitral debe constar por escrito y debe ser firmado por los miembros del tribunal arbitral. Si el tribunal arbitral está compuesto por más de un árbitro, sólo se requiere de la firma de la mayoría de ellos, siempre que se explique en el laudo arbitral la razón por la cual uno de los árbitros no firmó el laudo.

El laudo arbitral también debe indicar la fecha y el lugar del arbitraje, ya que se considerará que el mismo se llevó a cabo en ese lugar.

El laudo debe ser fundado, a menos que las partes acuerden que esto es innecesario o que el tribunal dicte un laudo que documente los términos de un arreglo al que han arribado las partes.

23. ¿Existe un límite de tiempo para que el tribunal arbitral dicte el laudo?

La ley no establece un límite para que el tribunal arbitral dicte el laudo. Sin embargo, las partes pueden establecer dicho límite. Además, los reglamentos de algunas instituciones arbitrales establecen un límite de tiempo para que el tribunal arbitral dicte el laudo.

24. ¿Es el laudo definitivo y vinculante?

Sí, el laudo es definitivo y vinculante, y no está sujeto a apelación. El único recurso contra el laudo arbitral es el recurso de nulidad.

25. ¿Cuáles son las causales para anular el laudo arbitral?

El Tribunal de Apelación en lo Civil y Comercial anulará el laudo si la parte que solicita la nulidad del laudo prueba cualquiera de las siguientes causales:

• Una de las partes en el acuerdo de arbitraje estaba afectada por alguna incapacidad, o que dicho acuerdo no es válido en virtud de la ley a la que las partes lo han sometido, o si nada se hubiese indicado a ese respecto, en virtud de la legislación paraguaya.

• No ha sido debidamente notificada de la designación de un árbitro o de las actuaciones arbitrales o no ha podido, por cualquier otra razón, hacer valer sus derechos.

•  El laudo se refiere a una controversia no prevista en el acuerdo de arbitraje o contiene decisiones que exceden los términos del acuerdo de arbitraje; no obstante, si las disposiciones del laudo que se refieren a las cuestiones sometidas al arbitraje pueden separarse de las que no lo están, solo se podrán anular estas últimas.

•  La composición del tribunal arbitral o el procedimiento arbitral no se han ajustado al acuerdo entre las partes, salvo que dicho acuerdo estuviera en conflicto con una disposición de la ley de arbitraje de la que las partes no pudieran apartarse o, a falta de dicho acuerdo, que no se han ajustado a la ley de arbitraje.

Además, el tribunal puede anular el laudo de oficio si:

• El objeto de la controversia no es susceptible de arbitraje.

• El laudo arbitral es contrario al orden público internacional o del Estado Paraguayo.

26. ¿Cuál es el procedimiento para anular el laudo?

La parte que interpone un recurso de nulidad debe indicar claramente las causales de nulidad y ofrecer toda la prueba que pretende producir. El órgano competente es el Tribunal de Apelación en lo Civil y Comercial del lugar en el que se dictó el laudo.

El Tribunal de Apelación correrá traslado a la otra parte, la que deberá contestar dentro de los cinco días. En la contestación, dicha parte ofrecerá todas las pruebas que pretende producir.

Una vez vencido el plazo e independientemente de que se haya presentado la contestación al traslado, el período probatorio se iniciará y no durará más de diez días. Si no existen pruebas que producir, el tribunal dictará sentencia dentro del plazo de diez días.

La prueba pericial, si corresponde, será presentada por un perito designado por el tribunal. No se admitirán más de tres testigos por cada parte. La declaración de los testigos puede realizarse fuera de la sede del tribunal.

Una vez que las partes hayan presentado todas las pruebas, el tribunal dictará sentencia dentro de los diez días. La misma es irrecurrible.

27. ¿Cuál es el derecho aplicable al reconocimiento y ejecución de un laudo arbitral extranjero?

Los laudos arbitrales extranjeros dictados en Estados signatarios de la Convención de Nueva York se reconocen y aplican de conformidad con las disposiciones de dicho tratado, ya que la Ley 1879/02 establece que los laudos arbitrales extranjeros se reconocerán de conformidad con los tratados que el Paraguay haya ratificado.

Si ningún tratado es aplicable, los laudos arbitrales extranjeros serán reconocidos y aplicados de conformidad con las disposiciones de la Ley 1879/02.

28. ¿Cuál es el procedimiento para el reconocimiento y la ejecución de las sentencias arbitrales extranjeras?

Un laudo arbitral extranjero, independientemente del país en el que se haya dictado, será vinculante y se ejecutará cuando se presente ante el tribunal competente. El tribunal competente es el Juzgado de Primera Instancia Civil y Comercial del domicilio de la persona contra la que se solicita el reconocimiento y la ejecución del laudo, o el del lugar de la ubicación de los bienes.

La parte que solicita la ejecución del laudo deberá presentar el laudo original debidamente autenticado, o una copia certificada del mismo, y el acuerdo de arbitraje o una copia debidamente certificada del mismo. Si el laudo o el acuerdo de arbitraje no están en español, la parte deberá presentar una traducción oficial de dichos documentos hecha por un traductor oficial.

29. ¿Cuáles son las causales para denegar el reconocimiento y la ejecución de un laudo arbitral extranjero?

Conforme a las disposiciones de la Ley 1879/02, las que son aplicables en caso de que un tratado internacional no sea aplicable, los motivos para denegar el reconocimiento y la ejecución de un laudo arbitral extranjero son los siguientes:

(a) a petición de la parte que solicita el reconocimiento y la ejecución, si esa parte proporciona al tribunal competente prueba de que:

(i) una parte del acuerdo de arbitraje estaba afectada por alguna incapacidad; o dicho acuerdo no es válido según la ley a la que las partes lo han sometido o, en su defecto, según la ley del Estado en el que se dictó el laudo;

(ii) la parte contra la cual se invoca el laudo no fue debidamente notificada del nombramiento de un árbitro o de las actuaciones arbitrales o no ha podido, por cualquier otra razón, hacer valer sus derechos;

(iii) el laudo se refiere a una controversia no prevista en el acuerdo de arbitraje o contiene decisiones que exceden los términos del acuerdo de arbitraje. No obstante, si las disposiciones del laudo que se refieren a las cuestiones sometidas al arbitraje pueden separarse de las que no lo están, se podrá otorgar reconocimiento y ejecución a las primeras;

(iv) la composición del tribunal arbitral o el procedimiento arbitral no se ajustaron al acuerdo de las partes o, en defecto de tal acuerdo, no estaba de acuerdo con la ley del Estado en el que se llevó a cabo el arbitraje; o

(v) el laudo aún no es obligatorio para las partes o ha sido anulado o suspendido por un tribunal del Estado en el cual, o conforme a cuyo derecho, se ha dictado el laudo; o

(b) si el tribunal determina que:

(i) el objeto de la controversia no es susceptible de arbitraje

(ii) el reconocimiento o la ejecución del laudo serían contrarios al orden público internacional o del Estado paraguayo.

Law No. 5882/2017 on Integral Management of Batteries and Batteries for Domestic Use came into force in March 2018, and presents a much more extensive and detailed regulation than the previous one -Law No. 3107/2006-. Like the previous one, the new law sets caps on the amounts of cadmium, lead and mercury that batteries may contain. In addition to this, it extends its scope of application to rechargeable batteries, determines new obligations for all those involved, establishes penalties and appoints new enforcement authorities. However, the relevant regulations have not yet been issued by the responsible institutions, which would replace the contrary provisions of Decree 4926/2010 and Resolution 970/2010 of the Ministry of Industry and Commerce (MIC).

While the previous law designated the MIC as the sole enforcement authority, the current law expands the responsible authorities:

• The MIC continues to be responsible for ensuring compliance with the law in the import process, extending its intervention to the manufacturing, assembly and commercialization processes, in addition to working in coordination with the National Quality System Agencies, implementing the Registry of Manufacturers, Assemblers and Importers of Batteries and Batteries for Domestic Use -not yet implemented to date- and establishing a system of prior import licenses;
• The Secretariat of the Environment (SEAM) is in charge of establishing regulation, control, monitoring and oversight mechanisms for the proper management and protection of the environment, and is responsible for preparing the Comprehensive Environmental Management Plan for Batteries and Cells -which is still pending despite the entry into force of the law- and the Registry of Operators for the recycling, elimination and final disposal of batteries and cells;
• The different municipalities should implement mechanisms for the transport, collection, treatment and final disposal of batteries and accumulators in their jurisdictions.

The law also establishes new obligations for all those involved in the private sector, both for manufacturers, assemblers, importers and marketers -who must guarantee and certify that their batteries comply with the law, provide suitable containers for collection at points of sale, make the batteries available to the municipalities, include warnings about the contamination caused by the product in their advertising campaigns, register with the MIC, among others- and also for users -who must verify that the batteries are in good condition at the time of purchase, and register with the MIC, among others-, include warnings about the contamination caused by the product in their advertising campaigns, register with the MIC, among others-, as well as for users -who must verify the good condition of the batteries at the time of purchase, dispose of them only at the collection points and not manipulate the structure or disassemble the batteries-.

Since the new law is in force, compliance with it is imperative despite the lack of relevant regulations, especially considering that non-compliance carries penalties ranging from fines (from fifty to one thousand minimum daily wages) to confiscation of products, cancellation of registration, prohibition to sell batteries and batteries and a written warning. This requires that companies involved in the trade of batteries and accumulators be aware of the operative provisions of the law that are already applicable without the need for additional regulation.

For more information about the changes brought by the new Law on Batteries and Batteries, and how to apply it, do not hesitate to contact Rodrigo Fernandez (rfernandez@vouga.com.py)