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CHAPTER AND PAPEL FOR DIARY

Law 26,736

Parliamentary Control and Regulatory Framework. Objectives.

Sanctioned: December 22, 2011

Promulgated: December 27, 2011



ARTICLE 1 — The manufacture, commercialization and distribution of pulp and paper for newspapers should be described in public interest.


ARTICLE 2 — Trust in the field of the Honorable Congress of the Nation, the Bicameral Commission for the Follow-up to Manufacturing, Commercialization and Distribution of Cell and Paper Pasta for Journals, which will have the character of permanent commission. The Bicameral Commission shall exercise control of the activity referred to in article 12 of this Act.

It will consist of eight (8) senators and eight (8) deputies, appointed by the president of their respective Chambers, on the proposal of the respective parliamentary blocs, the proportion of the integration of the political sectors represented within each House must be strictly observed.


ARTICLE 3o — Object. The present participatory regulatory framework is aimed at ensuring for the national industry the production, commercialization and regular and reliable distribution of pulp cellulose for paper and paper for newspapers, declared of public interest, establishing the progressive implementation of the best available techniques, considering the employment factor and applying those environmental practices that ensure the preservation and protection of the environment with sustainable development. For the purposes of this rule it will be understood by “cellulose stash” only that intended to produce paper for newspapers.

ARTICLE 4o — Scope of application. The present participatory regulatory framework for paper industries for journals is applicable to natural or legal persons with domicile in the Argentine Republic who are manufacturers, distributors and marketers of pulp and paper for newspapers and buyers of such products.

ARTICLE 5o — Definitions. The following are established for the purposes of the present:

(a) Manufacturers, distributors and marketers of pulp and paper for newspapers: natural or legal persons with domicile in the Argentine Republic who carry out the manufacturing, distribution and marketing of pulp and paper for newspapers and buyers of such products;

(b) Paper manufacturing for newspapers: paper production for newspapers from cellulose paste obtained from natural fibres or recycled cellulosic materials, using, in any proportion, mechanical, chemical-mechanical, semi-chemical or chemical processes;

(c) Paper purchasers for newspapers: any natural or legal person with a domicile in the Argentine Republic who publishes directly or through third-party written press publications intended for the Argentine market and has been duly registered to be considered as such, in the record established by article 28 of this law.

ARTICLE 6o — Subjects. For the purposes of this regime, manufacturers of pulp and paper are subject to newspapers and marketers, distributors and buyers of such products.

ARTICLE 7o — General principles. The activities covered by this Act shall be exercised freely, in accordance with their nature of public interest, in accordance with the general provisions provided for in this Act and the regulations governing it. Such activities should promote national production, competition, non-discrimination, free access, efficient allocation of resources and preservation of the environment.

ARTICLE 8o — Environmental impact. The production activity of pulp and paper for newspapers should be developed in an environment and with technology that minimizes the possibility of generating an environmental impact. In this regard, the existing environmental protection regulations, especially with regard to the discharges and gaseous emissions, should be enforced.

All companies should undertake an environmental impact study in which there should be a description of the expected effects, as well as proposals for technological improvements, in order to minimize such impacts. This study should be updated annually, reflecting the improvements made both in the process and in the treatment of waste.

ARTICLE 9o — In the event of negative environmental alterations, a clear policy of redressing the damage caused must be made. It will be a first step to recommend the damaged environment, with the available technological means. If it is not possible, it will tend to generate a positive impact that compensates the damages caused. The damage assessment should be permanent, with the company obligation to inform the enforcement authority in case it increases and proposes measures for the reduction of the damage.

ARTICLE 10. - Implementing authority. The Ministry of Economy and Public Finance will be responsible for the implementation of this regulatory framework.

It shall also be responsible for issuing the clarification and supplementary rules, adopting the action plans, and for intervening in all acts provided for in the applicable law.

ARTICLE 11. - Attributions of the implementing authority. Without prejudice to the provisions of the preceding article, the enforcement authority shall:

(a) To increase the efficiency of the sector and ensure national production in all stages of the activity by starting from wood as a basic input;

(b) To promote a better operation of the pulp industry and the role of newspapers, ensuring equal opportunities and access without discrimination to the supply of paper;

(c) To enforce this law, its regulations and supplementary provisions in the field of its competence;

(d) To establish the rules to which the subjects of this law shall be in accordance with technical rules and procedures;

(e) To require the actors of this regime, supporting documentation and information necessary to verify compliance with this law and its regulation. It shall also perform such inspections as may be necessary for the same purpose and shall enable the relevant records;

(f) Promote relevant actions before the competent courts to ensure compliance with its functions and the purposes of this Act and its regulation;

(g) Carrying control over the exports and imports of pulp and paper for newspapers, through the record established by article 28 of this law. Also recommend measures relating to foreign trade for the implementation of this regime;

(h) Apply the penalties provided for in this Act and its regulations;

(i) To exercise appropriate control actions;

(j) Promote and control the production and sustainable use of pulp and paper for newspapers;

(k) Establish the quality standards to which the production of pulp and paper for newspapers should be adjusted;

(l) Establish the requirements and conditions necessary for the empowerment of pulp and paper production plants for newspapers, resolve their qualification and approval and certify the date of their commissioning;

(m) Establish selection requirements and criteria for the submission of projects aimed at benefiting from the benefits established by this Act, resolve their approval and set their duration;

(n) To conduct audits and inspections to the plants authorized for the production of pulp cellulose and paper for newspapers in order to control its proper functioning and its adjustment to the current regulations;

(o) To conduct audits and inspections to the beneficiaries of the promotional regime established in this Act, in order to control its proper functioning, its adjustment to the existing regulations and the permanence of the conditions established to maintain the benefits granted to them;

(p) Manage current and eventual grants;

(q) To update the national registry established by article 28 of the present law, in particular with respect to the data of the subjects and the plants authorized for the production of pulp and paper for newspapers, as well as a detail of those to which they have been granted promotional benefits established in the pre-existing regimes in the present;

(r) Signing cooperation agreements with various public, private, mixed and non-governmental organizations, national or international;

(s) To publish on your website the registration created by article 28 of this law, as well as the amounts of the benefits granted to each company;

(t) In general, perform all acts that are necessary for the better performance of its functions and the objectives of this law and its regulation.

ARTICLE 12. - Federal Advisory Commission. See the Federal Advisory Commission for the Promotion of the Sustainable Production and Use of Cellulose Pasta and Paper for Journals, whose function will be to assist and advise the authority of application.

This commission will consist of one (1) representative of the newspapers of each of the provinces and of the Autonomous City of Buenos Aires chosen by the paper buyers for newspapers of the Argentine Republic who have a regular appearance and who do not participate directly or indirectly in the production of paper for newspapers or any of their strategic inputs.

It will also be composed by two (2) representatives of representative organizations of users and consumers and three (3) by the workers, corresponding one (1) representative to the graphics, one (1) to the press and one (1) to the sellers of newspapers and magazines.

Representatives of newspaper buyers will last four (4) years in their functions, having to rotate annually among the different buyers.

Representatives of user and consumer organizations will last four (4) years in their functions, having to rotate annually among different organizations.

ARTICLE 13. - The coordination of the Federal Advisory Commission will be exercised by the Ministry of Economy and Public Finance.

ARTICLE 14. - In order to integrate the Federal Advisory Commission, buyers must be registered in the registry established through article 28 to that end in the Ministry of Economy and Public Finance. The legal entity shall be accredited.

ARTICLE 15. - For the purposes of operation and decision-making within the Federal Commission, all the media members will have the same voice and vote regardless of their size, production volume and/or sales level.

ARTICLE 16. - The functions of the aforementioned Federal Advisory Commission shall be:

(a) To analyse the status and evolution of the international and local paper market for newspapers;

(b) Analyze the commercial and access conditions of insumption in the local market;

(c) To monitor and monitor the application of the access and equal price clause of the said insumption;

(d) Analyze and make proposals regarding the investment plans of the firm Paper Prensa S.A.;

(e) To propose measures to broaden the spectrum of diversity, democratization and federalization of the written press;

(f) Collaborate with the national State by advising on its performance within the firm Paper Prensa S.A.;

(g) To advise the national State on the whole issue of paper for newspapers;

(h) Eventually exercise the political rights of increasing the participation of the national State in the firm Paper Prensa S.A., a product of the variation of its share of shares through contributions of capital;

(i) To give its own operating rules.

ARTICLE 17. - Separate accounting. Manufacturers of pulp and paper for newspapers must carry a separate accounting for the activity, in case of vertical integration.

ARTICLE 18. - Transparency. Manufacturers, distributors and marketers of pulp and paper for newspapers should keep an update for buyers of pulp cellulose and paper for newspapers and for the Bicameral Commission of Manufacturing, Marketing and Distribution of pulp and paper for Journals.

This obligation will be complied with by the creation and daily update of an Internet site in which it contains at least: the equivalent purchase prices counted, of wood, cellulosic pasta, the recycle paper, caustic soda and any other input that, in the future, conforms more than ten percent (10%) of the annual purchases of the activity. Without prejudice to this, manufacturers, distributors and marketers of pulp and/or paper for newspapers may add other forms of advertising to the one mentioned above.

ARTICLE 19. - Publication of balances. Manufacturers, distributors and marketers of pulp and paper for newspapers should publish for the general public, quarterly balances in the terms and conditions established by the National Values Commission.

ARTICLE 20. - Single payment price. Without prejudice to the provisions of article 18 of the present law, manufacturers, distributors and marketers of pulp cellulose and paper for newspapers shall publish for the knowledge of the buyers and the Bicameral Commission for the Monitoring of Manufacturing, Commercialization and Distribution of Pasta Celulosa and Paper for Journals:

(a) Total and available stock, on a daily basis;

(b) Maximum production capacity and estimated production for the next three (3) months, quarterly;

(c) The single paid price of sale of paper for newspapers at the start of the plant, which is obtained from the formula contained in table I that is part of this law. This price will be the same for any operation that involves the acquisition of more than one (1) ton of that product, in conditions of immediate delivery, both committed and new operations to confirm in the day. In no case shall contractions involving a price lower than the single payment price counted.

ARTICLE 21. - Manufacturers, distributors and marketers of pulp and paper for newspapers will be able to establish prices higher than the single payment price counted when granting payment periods.

ARTICLE 22. - Sales system. Manufacturers, distributors and marketers of pulp and paper for newspapers shall, without discrimination of any kind, attend to all requests for supply for which there is unencumbered stock or production capacity.

ARTICLE 23. - Buyers of pulp and paper for newspapers are required to place orders and compliance in time and form of the withdrawal of the goods they request. This without prejudice to the actions that the manufacturers decide to initiate to compensate for the damages that have occurred.

ARTICLE 24. - In the event that, for a given period, surplus capacity persists over committed production plans, it will be at the discretion of manufacturers of pulp and paper for newspapers, production adjustment or stocks.

ARTICLE 25. - Investment system. Manufacturers of pulp and paper for newspapers must commit a capacity projection to three (3) years depending on the investment programs that they will carry forward. For the purpose of investment financing, companies will have the promotional benefits it offers or that in the future it offers the National Executive.

ARTICLE 26. - The Federal Advisory Commission will estimate, on a quarterly basis, the requirements for the import of pulp and paper for newspapers from the information provided by manufacturers, distributors and marketers as provided for in Article 20 of this Law, in order to ensure the full supply of the local market.

Define “Qm” as the estimated import volume required by quarter.

The Federal Advisory Commission shall also estimate, on a quarterly basis, the maximum national production of pulp and paper for newspapers from the information provided by the manufacturers as provided for in article 20 of this Act, in order to ensure the full supply of the local market.

Define “Qn” as the estimated volume of national production per quarter.

Refer to the relationship between the estimated volume of imports required (Qm) and the estimated volume of national production (Qn); P = Qm/Qn.

In order to avoid potential import overruns for small and medium-sized buyers, the National Executive Power is empowered to exempt them from the provisions of article 27 of this Act.

ARTICLE 27. - In order to ensure an equitable sharing of the relative cost of importing all claimants, the purchaser of pulp and paper for newspapers, in order to become a creditor to the confirmation of the sale of pulp and paper for national production journals must prove that it imported (or will import) directly or indirectly, the “P” ratio defined in the preceding article.

ARTICLE 28. - National Register of Manufacturers, Distributors and Marketing of Cellulose Pasta and Paper for Journals. Créase the National Register of Manufacturers, Distributors and Commercializers of Celulous Pasta and Paper for Journals within the scope of the application authority.

For the purpose of better control of the provisions of this regulatory framework, such registration shall contain the data and operations of the subjects involved in the manner and conditions determined by the regulation.

ARTICLE 29. - Time to register. Manufacturers, distributors, marketers and buyers of pulp and paper for newspapers will have a maximum time, for the purposes of their registration in the national registry created by the above article.

ARTICLE 30. - Jurisdictional control. For the purpose of the administrative action of the implementing authority, the National Administrative Procedures Act, 19,549, and its regulatory rules shall apply.

Exhausted the administrative channel shall proceed to appeal in judicial headquarters directly to the Federal Appeals Chamber with jurisdiction in the place of the act.

ARTICLE 31. - Sanctionary regime. Any actor reached by this law, who engages in maneuvers that violate the provisions of this law, in respect of any other member of the chain of manufacture, distribution and/or marketing of pulp and paper for newspapers, shall be liable to the penalties set out in article 33 of this law, without prejudice to the penalties established in the substantive legislation.

ARTICLE 32. - The present normative framework provides for the penalties prescribed by article 33 of this Act, the following:

1. Negative or obstruction to be inspected, and non-collaboration with inspection when required.

2. Non-compliance with the obligation to maintain the levels of quality and quantity of pulp and paper for newspapers.

3. Use in conditions other than those authorized by the present regulatory framework of pulp and paper for newspapers.

4. Failure to comply with the instructions issued by the enforcement authority, within its competence, on safeguarding free competition in the market.

5. Failure to comply with the resolutions adopted by the implementing authority in the exercise of its functions.

6. The repeated non-compliance with the information requirements formulated by the Bicameral Commission for the Monitoring of Manufacturing, Commercialization and Distribution of Celulous Pasta and Paper for Journals or by the implementing authority, in the exercise of its corresponding functions.

7. The poor distribution or sale of pulp and paper for newspapers.

8. The fraudulent alteration, manipulation or replacement of the characteristics of pulp and paper for newspapers.

9. Failure to comply with the deadlines set by this regulatory framework.

10. Any other conduct that violates this regulatory framework or existing legislation.

ARTICLE 33. - Contraventions and sanctions. Failure to comply with this Act shall be sanctioned by the enforcement authority with:

(a) Perception;

(b) Fines: the value of which shall be determined by the enforcement authority, taking into account the seriousness of the offence, the repetition of the facts, the amount of the injury caused, the conduct after the breach by the breacher, the financial and economic capacity of the offender and the other circumstances and particularities of the case;

(c) Disqualifications: the time limits of which shall be set by the implementing authority, as set out in subparagraph (b) of this article;

(d) Suspensions: whose deadlines shall be set by the enforcement authority, according to the criteria set out in subparagraph (b) of this article;

(e) Repair of the damage caused: where the conduct has caused injury to a particular person and the public or third party interest is not affected, the application authority may order the repair of the damage by the manufacturers, distributors and marketers of pulp and paper for newspapers;

(f) Closures and forfeiture.

ARTICLE 34. - Control. In the prevention, finding of contraventions, complying with the measures of kidnapping, confiscation or others that may correspond, the enforcement authority may require the competent judge to provide assistance to the public force.

To this end, it is sufficient to submit to the judge the corresponding administrative proceedings, and formal requirement of competent authority.

ARTICLE 35. - Control rate. Refer to the control rate and assign to the enforcement authority the collection thereof, which shall be used for the operation of the Federal Advisory Commission and the surplus for the trust fund established by article 37 of this Act.

ARTICLE 36. - They will be obliged to pay the rate of control of the production of pulp and paper for newspapers, manufacturers, marketers and distributors of such products.

The liquidation period will consist of one (1) calendar month and the taxable base will be given by zero comma zero one percent (0.01%) of the billing.

The application by the enforcement authority of the rate established by article 35 of this Act and the imposition of fines, interests, updates and sanctions shall be governed by the rules and procedures set out in Act No. 11.683 (T. 1998) and their amendments.

ARTICLE 37. - Trust Fund. Create a trust fund to promote investments in capital assets of small and medium-sized enterprises that develop activities related to the manufacture, marketing and distribution of pulp and paper for newspapers and for registered buyers.

ARTICLE 38. - The trust fund established above shall consist of the following resources:

(a) All remedies from the sanctions regime established by this Act;

(b) Funds allocated by budget law;

(c) Funds obtained under special credit programmes that are agreed with relevant national and international agencies or institutions;

(d) Specific inputs that the implementing authority agrees with the operators of the activity;

(e) The excesses of the rate created by article 35 of this Act.

ARTICLE 39. - The National Executive Branch shall regulate the constitution and operation of the said fund, and must arbitrate the means for the operation of the fund to have the greatest transparency and efficiency in its operation.


ARTICLE 40. - Pursuant to the implementation of the objectives of the creation of the Paper Prensa S.A. firm, of the compliance of the equal access clause of all the graphic media to the aforementioned essential input as well as of the declaration of public interest of the production of paper for newspapers, the Paper Prensa S.A. company shall:

(a) Operate at least in full of its operational capacity or internal demand for paper (when it is less than operational capacity);

(b) To present and execute every three (3) years an investment plan to satisfy the entire internal demand for paper for newspapers.

ARTICLE 41. - Where the funds necessary for the investments provided for in the preceding article are provided in a more than proportional manner by the national State with respect to other partners, the additional political rights emerging from such capital contributions shall be exercised by the Federal Advisory Commission established by article 12 of this Act. Without prejudice to the foregoing, the emerging property rights of the aforementioned contributions are part of the national State's share in Paper Prensa S.A., which is eventually enhanced through this mechanism.

ARTICLE 42. - Contact the National Executive.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE TWENTY DAYS OF THE TWO YEAR DOS MIL ONCE.


LOVE BOUDOU. - JULIAN A. DOMINGUEZ. - Gervasio Bozzano. — Juan H. Estrada.