INTERNATIONAL LICITATIONS DECEMBER 2.616

Determined under the Act No. 20,852 and its amendment to international tenders for the implementation of the Arid Land Programme referred to in Decree No. 701/81.

Bs. As., 6/10/83

I look at the SIM file. 3.202/82 where the former Public Service Secretariat of the Ministry of Public Works and Services requested to be declared under Act No. 20,852 to international tenders for the execution of arid land recovery projects in various provinces, and

CONSIDERING:

That Law 20.852 and its amendment 21.522 prescribe 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 convened by bi- or multinational entities to which the Argentine Republic is a party for the execution of works of an international character.

That the implementation of the aforementioned projects is financed by the Inter-American Development Bank, concluded through contract number 392/OC-AR, approved by Decree No. 701 of 27 March 1981.

That international tenders will be convened by various Provincial Executing Units, coordinated by the Central Executing Unit under the Ministry of Public Works and Services.

The terms of funding provide for the opening of international tenders that facilitate the participation of foreign and foreign suppliers, and a comparison method is provided between the offers of products of national origin and foreign origin, which is to recognize the former a margin of preference of fifteen per cent (15 per cent) or 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 the works to be carried out in different provinces will result in an increase in agricultural productivity by providing greater employment opportunities in the rural sector and reducing operating and maintenance costs.

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 Law 19.549.

That this Decree is issued in the use of the powers conferred by articles 2 and 5 of Law 20,852 as amended by Law 21.522 and by Article 1 of Decree No. 2.099 of September 17, 1976.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . Decláranse understood in the regime of Law 20,852 as amended by Law 21.522, to the international tenders financed by the Inter-American Development Bank (Code No. 392/OC-AR) convened by the Provincial Executing Units coordinated by the Central Executing Unit under the Ministry of Public Works and Services for the implementation of the programme of Aridas Lands referred to in Decree No. 701 of the National Execution.

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 set out in article 2°, paragraph (c) of Law 20.852, as amended by Law 21.522 and Article 6 of Decree No. 2.099 of September 17, 1976.

(b) Exemption of import duties, prior deposits, and any special contribution to import and freight under article 2 (d) of Law 20,852 and Article 11 of Decree No. 2,099 of September 17, 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 goods are not incorporated into the domestic manufacture. The exemption 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.

Refunds or draw-back pursuant to article 2 (a) of Law 20,852 and art. 9th Decree No. 2.099 dated 17 September 1976 for the property specified in article 3 of this Decree.

(d) The pre-financing and financing regimes that take place at the time of the opening of the international tenders referred to in article 1 of this Decree for the export of the goods referred to in article 3 of the Decree.

Art. 3rd s For the purposes of this Decree the following shall be considered as assets subject to franchises:

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

(b) those who physically incorporate into assets that in turn are physically incorporated into works.

c) equipment and machinery that are used directly in the works, provided that their need is certified by the respective Provincial Executing Unit.

Art. 4° . When, as a result of the rules applicable to the 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 shall require the respective Provincial Executing Unit to record that the asset in question falls within the provisions of article 3 of this Decree.

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

BIGNONE

Jorge Wehbe