INDUSTRIA Standards for calling for international tenders. Impositive exemptions.

Documentation.

DECRETO N° 2.099

Bs. As., 17/9/76

VISTO Act No. 20,852 and proposed by the Ministry of Economy; and

CONSIDERING:

That Law No. 20,852 prescribes various benefits for the national industry involved in international tenders with funding from the Inter-American Development Bank or convened by binational entities, of which the country is a party to the execution of works of an international character.

It is desirable that the national industry and, in particular, the companies offering the necessary goods for this purpose participate in the planned equipment.

That, in order to allow the participation of companies offering goods produced in the country, the aforementioned Law gives them franchises equivalent to those that benefit exports of manufactured products.

It is essential to ensure that local companies are fully committed to contractual relations according to which they have made their offers.

In order to properly implement Act No. 20,852 and comply with international loan contracts concluded or concluded with the Inter-American Development Bank, it is necessary to implement a procedure to regulate the entry into the country of goods imported as a result of international tenders to be called within the prescribed legal regime.

That the proceeding of tenders agreed upon for the loan contracts that are held with the Inter-American Development Bank prescribes, for the comparison of local and foreign offers, that the proposed price of the articles of national origin be the price of delivery on the project site after deducting the paid import duties on major raw materials or manufactured components as well as national sales taxes, consumption and added value that are incorporated into the cost of these items.

That, therefore, the goods subject to the tenders, whatever their origin, must be entered free of import duties, prior deposits and any other special contribution that falls on them, except the customs fees and the fund established by Decree-Law No. 1.052/58.

In the event that the awardees are suppliers of goods produced in the country, the Honorary Commission of Decree-Law No. 5,340/63 must intervene, in accordance with article 2 (d) of Act No. 20.852.

That such a mechanism cannot be required, by its nature, in the international tenders held within the requirements of Act No. 20.852, in the event that the awardees are not suppliers of goods produced in the country, given that local suppliers will be benefited in the comparison of bids with a margin of preference of fifteen per cent on the value of foreign source quotations.

It is desirable to ensure the highest speed in the implementation of projects funded from the sources mentioned in article 1 of Act No. 20.852, clarifying situations in compliance, for loans that have been granted.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . The determination of international tenders under the Act No. 20,852, to be called by the entities covered by Article 1 of Decree-Law No. 5,340/63 and the binational or multinational entities to which the country is a party shall, in each particular case, be made by the National Executive Branch, on the proposal of the Secretariat of State for Industrial Development, who shall act as the Authority for the Application of the present Decree.

For the purposes of this Decree, international tendering shall be considered to the one which has been disseminated both at the national and foreign levels, admits contributions from companies based in the country and abroad.

Art. 2o . In the approving administrative acts of projects of state or private entities that contemplate the financing given by the Inter-American Development Bank and which are determined after the present, the inclusion of the project in the law of Law No. 20,852 and the extent of the benefits to be granted to the offerers of goods produced in the country will be established. The companies offering these goods that are awarded in the tenders for loans granted by the Inter-American Development Bank prior to the date of this Decree shall enjoy all the benefits set out in article 2 of Act No. 20.852.

Art. 3o . Goods subject to the benefits of Article 2 of Law No. 20,852 shall be deemed to be the materials, elements, equipment and machinery of local manufacture, without use, whose supply is awarded to the local industry as a result of international tenders covered by the determination referred to in Article 1 of this Decree and/or of what is established in each administrative act referred to in Article 2 of this Decree.

Art. 4o Los The benefits referred to in Article 2 of Law No. 20,852 shall be applied both on the basic amounts and on the eventual readjustments at the prices originally set.

Art. 5o La The deduction to consider in the tax balance of the Income Tax by the procuring companies of the tenders referred to in this Decree and other beneficiaries referred to in the offer, as prescribed in Article 9o, shall be determined by applying on the net price invoiced to the tenderer the corresponding percentage in each case in accordance with Article 2 (b) of Law 20.852.

Art. 6th . The exemption from the Attached Value Tax reaches the goods and services of national origin or the imported ones introduced to the country by the awardees and other beneficiaries in the offer, as prescribed in Article 9 of this Decree. The awardees may compute against the tax that they ultimately owed for their encumbered operations, the tax that had been invoiced to them for goods, services and locations, which effectively assign to the performance of the contract resulting from the tender to the extent that it had not already been used by the responsible. If the compensation referred to above could not be made or only partially realized, the resulting tax credit balance shall be credited to them against other taxes by the Tax General Directorate.

Art. 7o La The Secretariat of State for Industrial Development will receive the documentation for the awards made in each of the tenders made under the Act No. 20.852, for the following purposes:

(a) Where the awardees are suppliers of goods produced in the country, the necessary certificates will be issued so that the perception of the benefits granted on the basis of article 2 of this Decree can be managed.

(b) Where the awardees are suppliers from abroad, the Secretariat of State for Industrial Development shall issue the necessary documentation to proceed with the free import of import duties, prior deposits and any other special contribution to the import and freight of the goods subject to the award, except the customs fees and the fund established by Decree Law No. 1.052/58.

Art. 8o o Direct awards of goods produced in the country shall be entitled to the award of the compensatory adjustment established in Decree No. 2.785/75, which assures the offerers of the maintenance of the economic conditions of such offers during the validity of their obligations, or those which in the future are generally and identically defined.

Art. 9o o The benefits provided by article 2 (a) of Act No. 20,852 shall be received by enterprises that are directly awarded, associated, subcontractors or suppliers. To this end, the direct award will clearly state in its offer who will be the beneficiaries, the amount on which the benefits will be applied and their eventual participation in the determination of the readjustments; otherwise, such benefits can only be perceived by the direct awardee.

Art. 10. La The Ministry of Economic Affairs ' Ministry of Foreign Trade and International Economic Negotiations will authorize the creation of the products of the beneficiary companies in the same way as if they were for export.

Art. 11. Lo Article 2(d) of Law No. 20,852, shall apply to raw materials, inputs and parts, which are not produced in the country, which are incorporated into the goods to be provided by local manufacturers, for which the following procedure shall be followed:

(a) If the bidder is a state entity, the tenderer shall extend within the period of fifteen (15) days of request by the direct awardee the corresponding certificate of import necessity. This certificate shall be submitted by the direct awardee to the Honorary Advisory Commission Decree Law No. 5,340/63, with the necessary documentation for the purposes of its formation;

(b) In the event that the bidder is not a state entity, the certificate of import necessity will be granted in the same time period, by the Secretariat of State that has jurisdiction over the performance of the work and/or by the Secretariat of State for Industrial Development. This certificate shall be made up of the competent body of the Secretariat of State for Industrial Development for which the direct award shall accompany the corresponding documentation;

(c) The authorization with exemption from tax and miscellaneous import charges shall be granted in accordance with articles 11 and 12 of Decree 5.344/64, as amended by Articles 4 and 5 of Decree No. 911/70.

Art. 12. . With the intervention of the Ministry of Economy, through the Central Bank of the Argentine Republic, the extension of the benefits of pre-financing regimes will be regulated for the alleged employees of this Decree. post-financing and/or financing for current or future exports by the Central Bank of the Argentine Republic, the latter ' s competence to issue the regulatory procedure for the granting of such benefits.

Art. 13. . The clauses inserted in the solicitation documents and the benefits granted by the application of Law No. 20,852 may not be altered when the respective contracts are entered and their regime shall not be reached by new legal rules or regulatory provisions during the entire period of the performance of the project.

Art. 14. El The Ministry of Economy will set the procedures to be followed by stakeholders for the perception of the benefits granted by this Decree.

Art. 15. . In cases of international tenders in which the bidder belongs to an interprovincial province or corporation, provided that the respective governments have made the accession provided for in Article 7 of Law No. 20.852, the Secretariat of State for Industrial Development shall establish, in accordance with the tender, the procedure for the perception of the benefits to be granted, within the guidelines of this Decree.

Art. 16. . Communicate, publish, give to the National Directorate of the Official Register and archvese.

VIDELA.

José A. Martínez de Hoz.