ACUERDOS Ley 25.242 Aprébase un Acuerdo para el Funcionamiento del Centro Unico de Frontera Santo Tomé - Sao Borja, subscribe to the Federal Republic of Brazil.

Sanctioned: March 23, 2000.

Promulgated: March 24, 2000.

The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with outlaw:

ARTICLE 1 Appropriate the agreement between the ARGENTINA REPUBLIC and the FEDERAL REPUBLIC OF BRAZIL FOR THE FUNCTIONING OF THE SANTO TOME FRONT ONE CENTRE - SAO BORJA, signed in Brasilia .REPUBLICA FEDERATIVA DEL BRASIL. on 10 November 1997, which consists of DIECISEIS (16) articles, whose authenticated photocopy is part of this law. ARTICLE 2 Contact the National Executive.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE VEINTS DAYS OF THE MARZ0 YEAR DOS MIL.

# 25,242

PASCUAL RAFAEL. . ALVAREZ CHARLES. . Guillermo Aramburu. . Mario L. Pontaquarto.

_

THE ARGENTINA REPUBLIC

and

THE FEDERAL REPUBLIC OF BRAZIL

FOR THE FUNCTIONING OF THE

FRONTERA CENTRE

SANTO TOME - SAO BORJA

The Government of the Argentine Republic and the Government of the Federal Republic of Brazil, henceforth "the Contracting Parties".

VISTO, the need to establish additional rules for the Recife Agreement and Complementary Rules for the operation of the Unified Border Center of the Santo Tomé Sao Borja International Bridge.

Agree to the following:

ARTICLE I

For the purposes of this Agreement:

a) "Unified Border Center" ,CUF., means the area delimited under the International Contract of Concession, located on the Argentine side, adjacent to the Santo Tomé Sao Borja International Bridge, for the purpose of controlling the entry and exit of persons, goods and means of transport. as well as for the provision of similar services (public or private);

(b) The Unified Border Centre comprises the Integrated Control Area and other facilities, in accordance with the International Concession Contract.

(c) The area of the Unified Border Center is considered customs;

d) "Concession Area" means the area defined in the International Concession Contract.

ARTICLE II

The income, transit and departure of workers hired by private companies serving at the Unified Border Centre shall be authorized by the COMAB according to the area of exercise of the worker's activity at the request of the concessionaire.

ARTICLE III

Access to the Unified Border Centre of the Public Officials of the Contracting Parties, for the exercise of their functions, shall observe the provisions of the Recife Agreement.

ARTICLE IV

The transit of all the staff of the concessionaire and with whom the contract is free, provided that they are duly accredited, within the concession area, for the exercise of their activities in accordance with the rules of procedure of operation of the concession.

Unique paragraph. In the Area of Integrated Control, the discipline of entry, stay and movement of persons shall be carried out by the coordinating bodies of the Contracting Parties, in the terms of Resolution Mercosur/GMC Nro 3/95.

ARTICLE V

In the CUF the exclusive Brazilian and Argentine space will be delimited, which will be extended to both sides of the "Border Point" in accordance with the plane approved by the COMAB. In the exclusive Brazilian space will extend the tax jurisdiction, forecast and the right of the work of the Federal Republic of Brazil to the private economic activity that takes place in the "Private Services Zones", to the extent that these services were authorized to carry out their activities by the COMAB, and are necessary for the normal development of the tasks carried out in the CUF.

ARTICLE VI

For the purposes of the application of indirect taxes incidents on the services provided by the concessionaire or by those providing them in place within the scope of the CUF, the legislation of the country of origin corresponding to the flow of vehicles of the customers or users shall apply, to the extent that the services indicated are intended to meet the needs of the users for which they are perceived to be counter-budgeted by them.

In cases where service benefits do not meet the above-mentioned requirements, they shall pay in accordance with the law of their country of residence (physical persons) or where they have the effective direction of the company (legal persons).

For the purposes of the application of the direct taxes that correspond to tax the concessionaire, these shall be calculated according to the specific tax legislation Argentina, the collection obtained in fifty percent for each Party is distributed.

For the application, control, perception and collection of the taxes referred to in the preceding paragraph .including the penalties that may correspond la the tax legislation in force in the Argentine Republic will apply.

ARTICLE VII

Recruitment by the concessionaire and with whom the concessionaire employs natural persons residing in the States Parties is free to provide services in the area of concession.

1o) The State party ' s labour and tax legislation in which the employer has effective management, regardless of the nationality of the worker shall be applied.

2nd) As regards social security, the provisions of the Agreement of 20 August 1980 shall be observed for workers residing in a country other than that of their contractor until the matter is regulated. Once the two-year period authorized by the said agreement has not been regulated, it shall be compulsory for the employer, to ensure the worker the effective realization of the forecast contributions.

ARTICLE VIII

Workers who perform their duties in the CUF, whatever their nationality, shall have temporary or permanent residence in the bordering country or in the host country.

ARTICLE IX

Workers shall enter the CUF under special immigration conditions, in accordance with provisions established by the competent authorities of the Contracting Parties, with the sole and exclusive objective of fulfilling their employment contracts within the perimeter of the CUF, returning to their country of residence at the end of the working day.

ARTICLE X

Workers may benefit from the special migration conditions referred to in the previous article during the operation of the respective employment contracts.

ARTICLE XI

During the time of the Concession, the entry, circulation and departure of vehicles, equipment and materials owned by the Concessionaire, of whom the Contractor and of natural or legal persons operating in the CUF, from Brazil, Argentina or third countries, must be introduced through simplified procedures and by the temporary admission regime, as certified by the COMAB/DELCON.

1o The goods, materials and equipment that are ultimately incorporated into the estate of the concession shall be free of charge to the import.

2nd At the end of the Concession period, goods that had not been incorporated into the estate of the concession or which return to any of the States Parties, if not originating from them, shall be subject to the procedures of a common import.

ARTICLE XII

The provisions of the previous article shall not apply, for goods from third countries for marketing, which must be entered with taxes that tax the import by completing the customs clearance formalities.

ARTICLE XIII

The COMAB will serve as a link between the concessionaire and the coordinating agencies indicated in Resolution GMC 03/95 to ensure the necessary means for the operation of the CUF.

ARTICLE XIV

A) The Contracting Parties undertake to encourage the establishment of banking institutions in the CUF. The institutions designated or the administrative authorities of any Contracting Party shall be authorized to be installed in the CUF.

1o These institutions shall be subject to the regulations of the Central Banks of their respective countries, with respect to all banking operations related to international trade in goods, international trade operations and to the international transport of goods and persons and similar operations that are developed in the CUF, thus being forced to carry out their operation on a daily basis, without interruption.

2nd Payment of contributions, taxes, taxes, fees to be made in accordance with the laws of the Contracting Parties may be made at the branch of the Argentine or Brazilian banks located in the CUF.

3o The circulation of monetary values practiced by service providers or traders established in the CUF is free.

(B) For the purposes of the checks and registration requirements of legal persons acting within the CUF, the corresponding regulations shall be applied to the country of incorporation thereof.

ARTICLE XV

Any communication that occurs within the CUF with the territories of the host and border countries will be considered internal communication of each country. For this purpose the country's communication companies are authorized to install the necessary means to promote communication in the CUF.

Single paragraph. The final part of this article covers telephone, satellite and radio communications.

ARTICLE XVI

Each of the parties shall notify the other of compliance with the internal formalities necessary for the entry into force of this Agreement, which shall begin to rule on the date of the last such notifications.

Made in Brasilia at 10 days of November 1997, in two copies in Spanish and Portuguese of identical tenor and equally valid.