Turnkey Exports - Applicable Regimen - Full Text Of The Norm

Original Language Title: EXPORTACIONES LLAVE EN MANO - REGIMEN APLICABLE - Texto completo de la norma

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DECRETO EXPORTS No. 525 Regimen for exports sold under the "Llave Export Contract in Hand". Requirements.

Bs. As., 15/3/85

VISTO Law No. 23.101, and


That the development of the external sector requires the promotion of exports of goods and services of national origin, providing a policy framework appropriate to the needs of each sector.

That the exporting sector of industrial plants under the "Llave Export Contract in Mano" modality has been developing its activities by collecting a valuable experience that indicates the need to update its promotional regime.

As a result, it is necessary to extend the promotional treatment also to engineering works intended to provide a service sold under the "Llave Export Contract in Mano" modality.




Article 1 Artículo This regime will include Argentine exports that are sold under the form of "Llave Export Contract in Mano" and that meet the requirements of this norm and their respective regulations. Art. 2o o It is considered "Llave Export Contract in Hand" to industrial plants or engineering works intended for the provision of services, which are sold abroad in the form of a complete and completed unit in order to comply with the object of the contract that is to transmit the domain of the final good in exchange for payment of a total price. Art. 3o o For the purposes of this Decree it is understood by "hand-in" export: the construction of the work, the provision and installation of the respective elements or goods, the handling and supervision of the assembly, the provision of the operating method, the assistance in the start-up and the training of the personnel necessary for its operation, when it corresponds and any other service necessary for the realization of the object of the contract. Industrial plants may not include their construction but the other elements indicated above. Art. 4o — Export contracts that are acceding to the benefits of this regime should have a percentage of the share of goods and services of national origin not less than 60% (six percent) of the export FOB value. Concurrently, 40% (accounted per cent) of this FOB value should consist of physical goods of national origin. Art. 5o o In the case of the export of engineering works, intended for the provision of services, sales must respond to an international public tender or be made with public buyers from the importing country, and only those works listed in the annex to the present instrument may be accessed to the benefits of this regime. Art. 6o o As part of the "Llave Export Contracts in Mano", and provided that the conditions set forth in this Decree are met, the export of services that comprise all those activities that represent immaterial goods whose application abroad implies an export of Argentine talent and that are necessary complement to the plant or work to export, such as:

(a) Technical and/or economic feasibility studies;

(b) Designs, calculations and descriptive plans for construction, installation and/or systems;

(c) Documentation of operational methods, procedure and pain;

(d) Technical assistance for implementation, including the necessary personnel for operation;

(e) control and inspection of works.

Art. 7o o The turnkey export contracts covered by this regime will have a tax refund of 10% (ten percent). Art. 8o o The reimbursement set out in the preceding article shall be calculated on the value of new, unused domestic goods, as well as on services and technology of national origin, as detailed in the respective export contract. Foreign goods, services and technology shall be excluded in all cases. Art. 9o o Temporary exports and their amortizations, arising from the operations envisaged by this regime, shall be excluded from the considerations and benefits thereof. Art. 10. The export contracts referred to in this rule may include technology, raw materials and materials of direct use of foreign origin, provided that these values added to the profit according to the affidavit of the exporter to the Central Bank of the Argentine Republic do not exceed 40% (account per cent) of the contract value by excluding freight and insurance. Similarly, the sum of the above-mentioned concepts, exempts the utility, should not exceed 30% (treinth percent) of the contract value excluded freight and insurance. Art. 11. National capital companies may be beneficiaries of this promotion according to the definition that arises in this respect from Law No. 21.382 (t. a.) or of which in the future replaces it, in all cases the holder of the contract being responsible for the final good object of the contract. Art. 12. In the case of participations of national companies in international projects "soever in hand", the Authority of Application may arrange for their acceptance, and exclusively for national companies for their participation in them and provided that they are compliant with the requirements of this norm; the responsibility of the holder shall in these cases be expressly determined in the corresponding contract, and shall be met by article 27 of this regime. Art. 13. A record of Llave Export Contracts in Mano shall be established in the Secretariat of Foreign Trade, for which presentations requesting the benefit of this regime shall be made. Art. 14. For the purposes of becoming creditors to the benefit set out in Article 7 of this Decree, the exporters of the above-mentioned plants or works shall submit to the National Customs Administration and the Intervening Bank an authenticated copy registered in the Foreign Trade Secretariat of the respective export contract, enclosing also an affidavit declaring that the requirements of this decree are met. Art. 15. The affidavit quoted in the preceding article shall also include a list of the nationally manufactured goods that make up the plant or work and the value of the services and/or technology provided for in this Decree, on which the reimbursement shall apply. Art. 16. The exporters of the above-mentioned plants or works shall record under affidavit in the respective shipping tickets, that the goods they send abroad are intended to integrate the types of plants or works referred to in this decree. They should also indicate the number of records under which the corresponding export contract is registered with the Foreign Trade Secretariat. Art. 17. The amount of reimbursements to the present regime for physical property shall be determined on FOB, CI, CyF and CIF values as follows: (a) on the FOB value, when export to destination is carried out in foreign international transport and insurance is contracted outside the country; (b) on the CI value, when the insurance is contracted in the country; (c) on the CyF value, when the export to destination is carried out in international transport; Exceptions may be considered in cases where the Transport Secretariat certifies the lack of freight. Art. 18. The Foreign Trade Secretariat shall be the authority to implement this regime. Art. 19. The Authority of Implementation shall, in all cases, determine the origin of requests submitted to it, and may:

(a) To accept them smoothly and plainly;

(b) to submit its registration to the full submission of all documentation related to the export operation concerned and its corresponding analysis, and may require additional information as it deems necessary;

(c) Denial of applications for registration where the operation subject to them does not conform to the rules established by this regime and/or when the agreed marketing modality is deemed to be inconsistent with current practices.

The refusal of registration shall be decided by resolution of the Secretariat for Foreign Trade with the advice of the Commission established by article 24 of the present regime.

In addition, the functions of the Implementation Authority shall be to intervene the boarding permits for the goods exported by this regime, without which the National Customs Administration shall not give them the appropriate course, and shall authorize, where appropriate, any application for the perception of the benefit when it comes to services and technology that have been covered by this regime and without which requirement the liquidating entity shall not give them course. It will also have the authority to request any information it deems necessary to carry out the export tracking and control its compliance.

Art. 20. The Secretariat of Foreign Trade in its capacity as the Implementing Authority of the present regime shall, when it deems appropriate, propose modifications to the regime established by this decree. Art. 21. Provide the Ministry of Economy with a view to amending, where circumstances so advise, the reimbursement set out in article 7 of this decree. However, exports registered in the present regime shall, at a minimum, be guaranteed the level of reimbursement provided for by the present decree or the rule that in the future replaces it, in force at the date of registration of the respective contract and during the total validity of the contract accepted by the Secretariat of Foreign Trade. In addition, and in the event of any changes in the level of reimbursement, the "Llave Export Contracts in Mano" will be the subject of a treatment similar to that which is generally given to industrial exports with greater added value. Art. 22. The benefits set out in this decree may be enjoyed by those contracts that are being executed provided that they comply with the requirements set out here and only by the contract portion that is required to execute from the 60 (sixty) days of the date of this decree and as a result of the contractually agreed delivery schedule. Art. 23. In all cases, for the settlement of reimbursement for imputation to the present regime, the exchange rules corresponding to the exports of promotional products shall be applied and shall be the same for all items of the contract. The same provisions will be used in such liquidations as may be applicable to the liquidation of the general export reimbursement regime (Decree No. 3.255 of 24 August 1971, or to replace it in the future). Art. 24. A Commission consisting of the National Institute of Industrial Technology, the National Institute for Agricultural Technology, the Secretariat of Industry, the Central Bank of the Argentine Republic and the Secretariat for Foreign Trade shall be established in the Secretariat of Foreign Trade, which shall serve as an adviser to the authority for the implementation of this regime. Art. 25. The exporters, in the cases of exported goods which, by any circumstances, return to the country, shall proceed to enter, in whole or in part, as the return, the amount corresponding to the reimbursement that had been paid or credited to them; inescapable condition to arrange the dispatch to square of such goods. Art. 26. In cases where the terms of the contract for reasons that are attributable to the exporter are not complied with, the amount corresponding to the refund that has been paid or credited to it by application of the present regime shall be refunded at values updated to the date of the return. Art. 27. Exporters who violate the provisions of this decree and their respective regulations by declaration of values other than the real ones or by any other false declaration, act or omission, aimed at obtaining an illegitimate benefit shall be liable to the exclusion of the registration of exporters and importers (Decree 604/65), without prejudice to the penalties set out in Act No. 22.415. Art. 28. The perception of the tax refund provided in Article 7 is disqualified to request any other current or future refunds regarding a turnkey export contract already benefited from this regime. Art. 29. The National Customs Administration, the Central Bank of the Argentine Republic and the Secretariat of Foreign Trade shall, within 30 (treinth) days of the date of this decree, issue the additional rules necessary for its application, as well as the operation to which the exporters of the plants or works referred to in this decree shall be subject, in respect of the conditions and requirements to which the required documentation shall be subject. Art. 30. All deadlines set forth in this decree must be understood as working days. Art. 31. Default of Decree No. 2.786 of 6 October 1975. Art. 32. Contact, post, give to the National Directorate of the Official Register and archvese.


Juan V. Sourrouille LISTA ANEXA

(a) Refrigerators.

B) Airports, ports and cargo terminals (with transport systems, handle and storage).

C) Hotels and resorts.

D) Shipyards and naval workshops.

E) Electric power plants, transformative substations, networks, platform and infrastructure for generating, transporting and distribution of electricity.

F) Dikes, dams and/or mechanical, hydromechanical and electrical power generation equipment.

G) Hospitals and health centres.

H) Water treatment plants and effluents.

I) Communications and telephone systems.

J) Oleoducts, pipelines and their distribution networks.

K) Pumping and compression stations of gas and oil. Oil and gas treatment and separation plants. Oil refineries.

L) Railway lines, stations and all their annexed infrastructure.

M) Marketing centers with all your infrastructure for manipuleo and storage.

N) Housing complexes with its urban infrastructure.

Ñ) Nuclear centers.

O) Packing and storage centers with lifting silos and grain dryers.

P) Government service centres.