DECRETO INTERNATIONAL LICITATIONS No. 1.974 Declate under the Act No. 20,852 to international tenders for the implementation of projects for the installation of units of processes in different provinces, corresponding to the Fiscal Petroliferous Foundations.

Bs. As., 17/11/81

VISTO file M.I.M. number 82.444/81 where Petroleum deposits Taxes State Society requests to be declared included in Law No. 20,852 to international tenders for the execution of their projects of installation of units of processes in the Distilleries of Luján de Cuyo, Province of Mendoza, and La Plata, Province of Buenos Aires, and

CONSIDERING:

That Law No. 20,852 prescribes various benefits for the national industry involved in international tenders with the financing of the Inter-American Development Bank, the International Bank for Reconstruction and Development, or convened by bi- or multinational entities of which the Argentine Republic is a party to the execution of works of an international character.

That the implementation of such projects should be financed by the International Bank for Reconstruction and Development, approved by Decree No. 1.432 of 22 September 1981.

That the terms of financing provide a method of comparison between the offers of products of national origin and foreign origin, which is to recognize to the former a margin of preference of fifteen per cent or of the import law, according to which it is less.

In response to this modality, it is necessary to grant the offerers of goods produced in the country tax incentives that allow their concurrence to provisions with a reasonable likelihood of success.

That by the nature of the goods to be acquired it is advisable to grant the benefits provided for in article 2 (a), (c), (d) and (e) of the Act.

That the Directorate-General for Legal Affairs of the Ministry of Industry and Mining has issued its Views, in accordance with article 7 (d) of Act No. 19.549.

This Decree is issued in the use of the powers conferred by articles 2 and 5 of Act No. 20,852 and by article 1 of Decree No. 2.099 of 17 September 1976.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . Decláranse included in the regime of Law No. 20,852 to international tenders with financing of the International Bank for Reconstruction and Promotion, open for civil works, construction, assembly and provision of goods corresponding to the installation of new units of processes in the Distillery of Luján de Cuyo, Province of Mendoza, and La Plata, Province of Buenos Aires, of Petrolfers Fiscales Society of the State.

Art. 2° La The provision of goods produced in the country to comply with the international tenders mentioned in the previous article will benefit from the following incentives:

(a) Exemption of the value-added tax, under the conditions laid down in article 2 (c) of Act No. 20.852 and article 6 of Decree No. 2.099 of 17 September 1976;

(b) Exemption of import duties, prior deposits, and any special contribution to import and freight under article 2 (d) of Act No. 20,852 and article 11 of Decree No. 2,099 of 17 September 1976, which shall be granted by the Ministry of Industry and Mining (National Directorate of Industry) for the entry into the country of the applicable raw materials, inputs and parties The waiver provided for in this subparagraph will also benefit the local manufacturer of the good to provide, even if it does not qualify as a bidder;

(c) Reimbursements or draw-back pursuant to article 2 (a) of Act No. 20.852 and article 9 of Decree No. 2.099 of 17 September 1976 for property specified in article 3 of the present decree;

(d) The pre-financing and financing regimes that are granted at the time of the opening of the international tenders referred to in article 1 of this decree, for the export of the goods mentioned in article 3 of the decree.

Art. 3rd s For the purposes of this decree, goods subject to franchises shall be considered as follows:

(a) Those who physically join the works, whether in the same state or after a process of transformation or manufacturing.

(b) Those who are physically incorporated into goods that are physically incorporated into the works;

(c) Equipment and machinery that are used directly in the works, provided that their need is certified by the Petroliferous Public Prosecutors' Societies.

Art. 4° . When as a result of the rules applicable to international tenders mentioned in Article 1 the acquisition of foreign goods, the Ministry of Industry and Mining (National Industry Directorate) shall issue the necessary documentation for the importation exempted from the tax on the aggregate value and free of import duties, prior deposits and any other special contribution to the import and freight of the purchased goods, except for customs fees. To that end, the said Agency will require the State Society Petroleum Tax Deposits to substantiate that the good in question falls within the provisions of article 3 of the present decree.

Art. 5° . Communicate, publish, give to the National Directorate of the Official Register and archvese.

VIOLA

Livio G. Kühl