Doing Business In Argentina

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The Argentine Customs Bureau established a program allowing duty free admission of primary and intermediate goods into Argentina for use in export production or for applying finishing touches on goods destined for re-exportation. This regime, known as the Temporary Admission for Re-export (TAR) provides opportunities for Argentine manufacturers of exportable goods to reduce costs by not paying tariffs, VAT, or anticipated profits tax on imported inputs. This also is important for Argentine businesses that make repairs on goods that are shipped from other countries. Between 1999 and 2003 temporary imports have increased by 65%, while imports in general have fallen by 16%. Nearly one-fifth of all Argentine exports are related in some way to this regime. U.S. exporters of processed and unprocessed inputs into Argentine export production can take advantage of the Temporary Import Regime. This is especially attractive since Argentine exports are surging since the devaluation of the Peso in January 2002. This regime will be phased out beginning January 1st, 2006. Decree 1439/96 for the duty free admission of primary and intermediate goods for use in export production, as well as exemption from VAT, statistics fee and anticipated profits taxes. Argentine manufacturers that use imported processed and unprocessed inputs, auxiliary elements, packaging and bottling materials that are involved in the production process are exempt from tariffs and taxes if the final good is exported to a third country. This regime also benefits repair service providers who receive goods shipped from abroad. These finished goods must be exported within 180 days, although extensions for an additional 180 days are permitted. A bond is required to cover the value of import charges for the goods, which will be refunded when the goods are re-exported. The more a company pays in import duties on its inputs the more incentive it has to take advantage of this regime. Goods are considered eligible for the TAR program if they are substantially transformed in an industrial process that has the end goal of producing an export. Examples of “transformation” include: manufacturing, combination, mixture, dosage, repair, rehabilitation, assembly, or installation within a more complex final product. This includes products that are consumed either completely or partially in another process, as with oils and combustibles, disposable materials used in a production process, machinery parts, packaging and bottling, etc. Damaged goods in need of repair can also enter the country under this program to undergo repairs, contingent upon their subsequent re-exportation. These goods may remain in Argentina without paying tariffs for a one-year period, or in the case of inputs for the production of capital goods that are listed as “non-serialized” by the MERCOSUR Common Nomenclature System. Failure to re-export goods will result in a fine. The sectors that take advantage of this regime are automotive, chemical, basic metallurgy, food and beverage, machinery and equipment, leather, petrochemical, and paper. The usage of this regime is highly concentrated: approximately 10% of the firms that have used this regime import 90% of the goods that qualify. Timeframes for merchandise imported into the country. a) For general merchandise: 3/4/2008
Initial period: 1 year Extension: 1 additional year b) For “non-serialized” production goods (Annex 1 - Decree 1439/96. Examples: custom made boats, industrial machines, bridges, etc.) Initial period: 2 years Extension Period: 1 additional year. c) Prolonging the extension period (due to natural or manmade disasters that make re-export impossible): 1 additional year. Entry bonds A- The bond equivalent for the amount of import duties, domestic taxes, statistics fees plus an additional 24% bond must be paid upon entry of the goods into customs. If the goods admitted under TAR are re-exported unaltered, the entirety of the bond will be returned. Otherwise, this bond will be returned upon export of the goods that the TAR goods formed part of. If the goods that are imported are subject to antidumping duties, a corresponding bond will also be required upon entry. This bond will also be returned upon re-export of the goods. B- The bond may be paid in cash, by bank guarantee, or through an insurance bond. The following is an example of the amount of bonds that must be paid to customs FOB Base Price US$10,000.00 Freight * 5% US$ 500.00 Insurance * 0.2% US$ 200.00 CIF = Dutiable Base US$ 10,700 Additional Import Duty 24.00 US 2568.00 Import Duty (DIE) 10.0 US$ 1070.00 Statistics Fee 0.5% US$ 53.50 SUBTOTAL VAT Dutiable Base 3781.50 VAT 21% US$ 3022.15 VAT (additional) 10% US$1,439.2 Profits Tax (advance) 3% US$431.75 SUBTOTAL 4893.10 BOND US$ 8,674.60 Importing for Consumption 3/4/2008 US$ 14391.50 If the goods that were admitted for entry under the TAR regime are imported into Argentina for consumption, payment must be made not only of the corresponding duties and taxes, but an additional 2% will be charged per month (since the entry date) on the
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Doing Business in Argentina: 2008 C
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3/4/2008 Argentina’s banking syst
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3/4/2008 The zero percent import du
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Policy Short-term Short/Medium Term
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meetings. The service includes at l
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approximately 87 percent of the tot
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more limited and delivery is a grow
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Goods: Preference will be given to
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material, input, or material needed
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terminals at international airports
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As in many countries, personal rela
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"Clarin", "La Nacion", and "Ambito
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Av. de Mayo 605, Piso 3 C1084AAB Bu
Page 29 and 30: Business Facilitation Service: CS A
Page 31 and 32: organizations, both Argentine or U.
Page 33 and 34: available in Chapter 9: Contacts, M
Page 35 and 36: Agricultural Machinery, Equipment a
Page 37 and 38: Electric Power Systems Overview Ret
Page 39 and 40: Food Processing and Packaging Equip
Page 41 and 42: Information Technology Overview Ret
Page 43 and 44: Other market conditions will foster
Page 45 and 46: market. The market has been growing
Page 47 and 48: Mining Sector Specialist at the U.S
Page 49 and 50: significantly smaller than in the U
Page 51 and 52: A gradual recovery has taken place
Page 53 and 54: Best sales prospects for U.S. elect
Page 55 and 56: Travel and Tourism Services Overvie
Page 57 and 58: Telecommunications Equipment and Se
Page 59 and 60: Agricultural Sectors Return to top
Page 61 and 62: Food Ingredients Overview Return to
Page 63 and 64: Pioneer Argentina: www.pioneer.com/
Page 65 and 66: Average Tariff Rates by Type of Pro
Page 67 and 68: In 2006, there was a significant in
Page 69 and 70: 3/4/2008 Certain imported goods for
Page 71 and 72: Please note that VAT and Profits Ta
Page 73 and 74: 3/4/2008 Goods covered by Decree 73
Page 75 and 76: A fax of the commercial invoice may
Page 77 and 78: you through this process. You may a
Page 79: violate export control laws is foun
Page 83 and 84: Article 6: - Importers, manufacture
Page 85 and 86: emanufactured) and certified by a "
Page 87 and 88: 3/4/2008 Normalizacion) --composed
Page 89 and 90: 3/4/2008 continuing shortage of ind
Page 91 and 92: 3/4/2008 Record No. S01:0116093/200
Page 93 and 94: 3/4/2008 Internet: www.anmat.gov.ar
Page 95 and 96: subject to the orders, guidelines o
Page 97 and 98: In January 2002, the government end
Page 99 and 100: The GOA has established a number of
Page 101 and 102: legality of this pesification decre
Page 103 and 104: deterrent penalties such as prison
Page 105 and 106: Law 17811 of 1968 regulates public
Page 107 and 108: A recent ACO investigation of GOA p
Page 109 and 110: Foreign-Trade Zones/Free Ports Retu
Page 111 and 112: Argentine Parliament (www.diputados
Page 113 and 114: Registry of Foreign Investments. Fo
Page 115 and 116: Local bankers report that the major
Page 117 and 118: The International Bank for Reconstr
Page 119 and 120: total project costs for new venture
Page 121 and 122: Return to table of contents Chapter
Page 123 and 124: C1104AC) Buenos Aires, Argentina Ph
Page 125 and 126: Buenos Aires has a large number of
Page 127 and 128: Travelers should note that since Ar
Page 129 and 130: Internet: www.buyusa.gov/argentina/
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U.S. Department of Commerce Trade I
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(Argentine Chamber of Importers) Mr
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(Ministry of Federal Planning, Publ
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C1020AC Buenos Aires Switchboard: (
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25 de Mayo 487, primer piso C1002AB
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C1036AAJ Buenos Aires Phone: (54-11
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Fax: (54-11) 4312-7184 E-mail: mdem
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E-mail: fargosi@fibertel.com.ar BAS
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Bolivar 332, Piso 6 C1088AAH Buenos
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Mr. Klaus Bertram, President 25 de
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EXOLGAN TERMINAL PORTUARIA S.A. Mr.
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C1006ACI Buenos Aires Phone: (54-11
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Fax: (54-11) 4131-3900 E-mail: info
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www.starwoodhotels.com/sheraton/pro
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