Key Benefits:
Bs. As., 20/12/91
VISTO Law No. 21.932, the Act for the Stability and Growth of the Automotive Industry, the Economic Complementation Agreement No. 14 and the Mercosur Treaty, and
CONSIDERING:
That the Argentine Automotive industry is a significance activity in our country, both for its contribution to the industrial gross product, and for its contribution to the elevation of the social and technological level of those who directly or indirectly participate in its realizations.
That its activities are governed by Law No. 21.932 and its regulatory rules, of which sufficient experience has been collected, which advises the introduction of some modifications that guide the integration of this industrial sector into the international market.
It is desirable that the automotive sector be actively and gradually inserted into international markets.
It is desirable that vehicles and their components be made at efficient and quality scales and at internationally competitive prices, so that they are accessible to the national consumer and are susceptible to export.
It is advisable to boost the exports of the sector, in order to compensate the imports that terminal companies make for their manufacturing lines.
It is desirable that the national auto-part industry actively participate in industry exports.
That it is necessary to maintain an adequate investment rate, so that the industry reaches efficiency, productivity and technology levels.
That in order to maintain an active administration of the regime established, the operation of an Automotive Industry Advisory Council is necessary, with the active participation of the sectors involved.
That this decree is issued in the use of the powers conferred by Act No. 932.
Therefore,
THE PRESIDENT
OF ARGENTINA NATION
RIGHT:
Article 1- Introduce the present decree the rules for the reordering and regulation of the Argentine automotive industry and the import of automotives, which will govern from 1 January 1,992 and until 31 December 1,999. From 2000 onwards, they shall exclusively govern the rules that are agreed upon under the General Agreement on Tariffs and Tariffs (GATT) Art. 2°- Automotive vehicles that occur in the country or which are imported shall comply with the technical standards on requirements related to security, issue of contaminants and other aspects related to transit that govern the national territory, for which the Implementing Authority, in coordination with the relevant units, may verify the technical specifications thereof.CHAPTER I
DEFINITION OF CATEGORIES AND INDICES OF IMPORTED CONTAINED
Art.3°-Second the following classification for national production motors.Category A: Passenger motors of any weight and cylinder, and pick-up vehicles, utilitarians, vans and other vehicles mixed for the transport of passengers and cargo with a useful load capacity of up to UN MIL QUINIENTOS (1500) kilograms of weight per unit, derivatives or not of series of production of passenger cars.
Category B: Chassis and self-porting platforms with and without cabins for passenger cargo and collective transport vehicles with a payload capacity greater than UN MIL QUINIENTOS (1,500) kilograms of weight per unit.
Art.4°- The terminal companies included in this production system may incorporate in the automotives that produce imported autopies only up to the CENTRE FOR SIGN (40 %) and ACCOUNT AND DOS for SCIENTO (42 %) of the value of the vehicles, for the case of Categories A and B respectively, until 31 December 1,994. From 1.995 and until 31 December 1,999, the maximum indexes of imported content will be governed by Mercosur, which cannot be less than those set for this first period. Art.5° _ Until December 31, 1,994, terminals will be able to average the imported content between vehicles that produce within the same category. From 1.995 to 31 December 1,999, imported content indices will govern for each particular model by allowing an additional TEN per cent of imported content, for the period of UN (1) year, when it comes to the launch of a new model. The calculation of the imported content will be carried out in accordance with the methodology for the valuation established by the Implementation Authority, which will observe in this regard the need to harmonize the measurement system with the FEDERAL REPUBLIC BRAZIL, in particular, as committed by our country in the bilateral negotiation of Annex VIII to the Economic Complementation Agreement No. 14 and in general with other Mercosur member countries. Until the Implementation Authority reformulates the measurement system, it will continue to be carried out according to the application of capacity values set by Resolution ME No. 578 of 22 December 1,982.CHAPTER II
PRODUCTION REGIME AND COMPENSED IMPORTATIONS FOR RADIACIAL COMPANIES
Art. 6°- In order to produce in the country motor vehicles that incorporate imported parts and parts, the terminal companies located in the country shall, from 1 January 1,992, be obliged to comply with the requirements set forth in Articles 7°, 8°, 9°, 11 and 15 of this Decree, and shall consequently have access to tariff breaks in their import of parts and parts and to the possibility of supplementing their supply of vehicles in the national market. Art. 7°- The terminal companies shall submit to the Authority of Application, within the SEIS (6) months of the validity of this Decree, a plan of reconversion, which involves investments, the production in the country of models that do not remain lacking regarding the production of the central houses, the ostensible reduction of the number of models that each terminal manufactures in the country, as well as the way in which they will achieve the compensation of commercial balance required in this Decree. In the absence of these reconversion plans in time and form by the terminal companies, the import quotas of complete vehicles established in Article 19 of this Decree shall be terminated. Art. 8°-Balanza comercial: Terminal companies must credit exports that at least compensate one by one, in currency, their imports. Exports and imports will be measured in F.O.B. values. Art. 9°- The terminal enterprises shall submit to the Authority of Application, in the modality that this rule, compensated exchange programs that preview the fulfillment of the relationship of trade balance established by Article 8. These programmes may be annual or multi-year, in which case they may cover a maximum period of THREE (3) years, according to the modality established by the Implementation Authority, which may adopt multi-year programmes only to the extent that the implementation of a plan is credited (investments in progress, the allocation of models, assemblies or subsets and the respective markets by reasonably matrices, the commitment to purchases, etc. Art. 10.- Exports to be computed in the calculation of the trade balance defined in Article 8 may be constituted by:(a) exports of completed or incomplete vehicles, self-equipments and dies for automotive production, which are carried out by terminal companies, their associated companies or international marketing companies that distribute goods produced by the above. When it comes to exports of full vehicles, they will be evaluated differently, applying a conversion formula, computing DOLARES ESTADOUNIDENSES ONE WITH VEINTE CENTAVOS (U$S 1,20) for each effective export dollar.
(b) the exports of self-parts of independent auto-partists promoted by the terminal that had given to the terminal their export credits, according to the modality established by the Authority of Application. It will be understood by exports promoted to the exports of automotive products manufactured by the independent autopartist who are directed to the parent house of the terminal industry, its subsidiaries, subsidiaries or its authorized dealers. Promoted exports shall be considered whenever there is a written agreement between both parties.
(c) In addition, the amount of investments made by the terminals may be computed as if they were exports by means of the acquisition of fixed assets (except real estates) of national origin that are intended permanently for production in the country.
In all cases it should be new property. Exports may include elements imported by existing temporary admission mechanisms, in which case the value of temporary import for compensation will not be computed in exports.
Art. 11.-The annual total exports made by terminal companies must contain at least one VEINTICINCO FOR SCIENTY (25 %) of products originating from the independent auto-party sector, measured on the value of export FOB. Terminal companies shall credit annually to the Implementation Authority the effective fulfilment of these obligations by indicating the payroll of independent self-improvement suppliers who participated in their exports with indication of the respective taxable values. Art. 12. - For the calculation of the trade balance defined in Article 8, imports are computed:(a) all imports of parts, parts and components for their production (excluding spare parts) by terminal companies and their associated companies.
(b) In addition, acquisitions in the country by terminal companies and their associated companies, of imported parts, parts and components for their production (excluding spare parts) will be computed as imports, although they have been imported by third parties.
(c) In addition, imports of full vehicles under Protocol 21 for Integration with the BRAZIL FEDERAL REPUBLIC (Annex VIII to the Economic Complementation Agreement No. 14) will be added, even if they have been carried out by other companies not linked to the terminal to the extent that they are vehicles of the terminal representing in the country.
Art. 13. - Imports of parts, parts and components intended for their production (excluding spare parts) by terminal enterprises, to the extent that they are new goods and are compensated under Article 89, shall pay a right of import of DOS by SCIENTO (2 %). If imports are made under bilateral programmes, provided that they are in the ALADI area, up to the amounts offset, they will pay a Import Law similar to that which the country is applying to the entry of Argentine auto parts, according to the principle of tariff reciprocity. Art. 14.-Terminal companies may supplement their supply of vehicles in the national market by importing new vehicles when they have positive balances in trade balances as set out in Article 89 of this Decree, for which the programmes set out in Article 9 shall be considered. These balances may be applied until they are exhausted to import new vehicles, according to the following ratio: they will be deducted from their balance A STATE (U$S 1.-) for each dollar import of vehicles. Vehicles imported under these conditions will tax a DOS tariff for SCIENT (2 %) until 31 December 1,994. Art. 15.-Terminal companies shall submit in advance to the Implementation Authority, in the modality that this rule, their production and import programmes of vehicles within the mechanism established in the previous article detailing the models to be produced and those to be imported. Automatically, the Implementation Authority shall proceed to establish that the models produced in the country and the models imported by the mechanism of Article 14, may be imported by any natural or legal person, with the exception of the provisions of Article 19 of this Decree. Imports carried out under this mechanism shall tax the import right established by art. 18 of this Decree. Art. 16.-The Implementation Authority will monitor the proportionality ratio between imports of models carried out by terminal companies under Article 14 and that of the same models under Article 15, being entitled to suspend in particular or general cases of application, simultaneously, of the mechanisms of Articles 14 and 15 if they verify that a significant disproportionality generates distortions in the market.CHAPTER III
REGIME OF COMPENSED IMPORTATIONS FOR COMPANY
NON-RADICALS IN THE COUNTRIES
Art. 17.-Foreign companies manufactures of vehicles not based in the country may, through their representatives in our country, import full vehicles with a differential regime, which provides preferential tariff treatment subject to compensation, under the following conditions:(a) may apply to compensation programmes for the import of full vehicles the exports of own automotive products or the promoted by third parties for the use in vehicles of their brands, in accordance with the modality established by the Implementation Authority. For this purpose, it will be understood by exports promoted to the exports of automotive products manufactured by the independent autopartist who is directed to the parent house of the company manufacturer of the vehicles to import, its subsidiaries, subsidiaries or its authorized dealers. Promoted exports shall be considered whenever there is a written agreement between both parties.
(b) Such exports may be applied within the SESENTAL TRESCIENTS (360) days after their realization to the import of full vehicles according to the following relationship: they may import A STATE DOLAR (U$S 1.-) for each dollar of export of products of the sector, evaluating both exports and imports at FOB values.
(c) Vehicles imported under these conditions shall be subject to a DIECHO duty per SCIENTI (18 per cent) until 31 December 1,994. From 1 January, 1995 and until 31 December 1,999, this tariff will vary on a quarterly basis, according to the formula of convergence with the general tariff agreed upon in Mercosur as detailed in Article 22 of this Decree.
CHAPTER IV
GENERAL REGIME OF COMPLETE VEHICLES IMPORTATION
Art. 18.-The importation of vehicles whose characteristics are in accordance with the description Categories A and B set out in Article 3 of this Decree shall tax until 1 December 1,994 the VEINTIDOS BY CIENTO (22 %) of Import Rights. As of 1 January 1,995, the common external tariff to be determined in the Mercosur area will be governed by the same. Art. 19.- The importation of vehicles whose characteristics are in accordance with the description of the categories A and B set out in Article 3 of this Decree shall be subject during the years 1.992, 1.993 and 1.994, for each Category, to quotas equivalent to the OCHO FOR SCIENTO (8 %), NEW PORCIENTO (9 %) and DIEZ PORCIENTO (10 %) of national production in units of the same year, respectively. These quotas are exempt from imports under the mechanisms provided for in articles 14, 15 and 17 of this Decree. From 1.995, and until 31 December 1,999, the Implementation Authority will be able to arrange for the maintenance of an annual import quota equivalent to TEN per cent of national production, depending on:CHAPTER V
GENERAL PROVISIONS
Art. 22.- ARRANGEMENT CONVERSITY AS AT 31 December, 1999.Formula:
If At- 1 greater than x then At= (At- 1) - (At- 1)-x)/(21-n)
If At-1 less than x then At= (At-l) - (( At-l)-x))/(21-n)
Being:
At... duty to govern in the period t
At- 1 tariff in force in the period t - 1
x...arance to be established in Mercosur.
n... period t numberer, from 1 to 20, corresponding 1 to the first quarter of 1.995 and 20 to the fourth quarter of 1.999.
Art. 23.- For the purposes of the calculations referred to in this Decree, the Applicable Authority may determine the value of the parts, parts, components and vehicles, on the basis of which such products have as a result of a transaction made in free competition conditions between a buyer and an independent seller. Art. 24.- The benefits agreed upon by our country in the framework of the exchange under Protocol 21 (Annex VIII to the Economic Complementation Agreement No. 14 between the ARGENTINA REPUBLIC and the BRAZIL FEDERAL REPUBLIC) remain valid, which in no case exempts the terminal industry from the fulfilment of the global trade balance ratio and the remaining obligations established by this Decree. Art. 25.- In the event of the verification of breaches of the goals or obligations set out in this Decree, the penalties provided for in Article 59 of Law No. 21.932, shall be applied without prejudice to the penalties which may amount to a violation of customs regulations. Art. 26.- The SECRETARIAT OF INDUSTRIA AND TRADE, of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, which is empowered to dictate the regulatory, complementary and clearing rules for which the collaboration of the sectors involved may be required, will be an AUTHORITY OF IMPLEMENTATION.The companies shall facilitate the inspections or verifications ordered by the Implementation Authority and provide it as an affidavit within the time limits that it may establish any information required to them on any matter related to this decree.
Art. 27.-Believe in the field of the SECRETARIAT OF INDUSTRIA And TRADE the Advisory Council of the Automotive Industry, integrated in an ad-honorem character by representatives of the terminal industry based in the country, representatives of the auto parts industry, representatives of the union organizations and representatives of unrelied terminal firms that have made effective use of the mechanisms established in Article 17 of this Decree. The Council will be tasked with advising the Implementation Authority on all aspects of the implementation of this Decree. This Council shall be chaired by the Secretary of Industry and Commerce and shall be constituted within the TREINTA (30) days of the publication of this Decree in the Official Gazette. Art. 28.-The SECRETARIAT OF INDUSTRIA And COMERCIO will make, before 30 April 1,992, a public invitation to bid between audit and/or consulting companies for the purpose of selecting a firm that collaborates in the follow-up, verification and control of this regime, which will be exclusively solvent with the contributions of the terminal companies and the autopie supplier sector. Art.29.- The present Decree shall begin to govern from 1 January 1,992, the date on which the Decree No. 2.226/90 and any other rule opposing this Decree shall be repealed. Art. 30.-Communicate, publish, give to the National Directorate of the Official Register and archvese.-MENEM.-Domingo F. Cavallo. Annex IFor all purposes of this Decree it shall be understood by:
-Authority of Application: The SECRETARIAT OF INDUSTRIA AND TRADE of the MINISTERY OF ECONOMY AND PUBLIC SERVICES.
_Company Terminal: The duly authorized companies that develop industrial activities in the country for the manufacture of motors, in accordance with Law No.21.932 and its regulations. _Autopiezas: These are the assemblies, subsets, parts, loose parts and accessories used in automotive production. _Parts or pieces: It is a product developed and finished, technically characterized by its functional individuality, not composed in turn by other parts or parts that may have application separately and which is intended to physically integrate one of the assemblies or subsets, with specific mechanical or structural function. _Second: It is the meeting of parties resulting from the armed of them and having a certain function _Subset: It is a set that is part of another. _Parte or national piece: They are considered to be those that are produced entirely from matter of national origin or those that are produced in the country from imported raw materials, provided that they experience in the process of elaboration or manufacture a transformation in its original composition, form or structure. Parts that are not covered by the above definitions shall not be considered national, even if they have been acquired in the country. _Subset or national assembly: It will be considered totally national, when the value of the incorporated national parts is equal to or greater than the SESENTA BY CIENTO (60 %) of the sum of the values of all its components, in accordance with the methodology of valorization established by the Implementation Authority, which will observe in this regard the need to harmonize the measurement system with the FEDERAL REPUBLIC OF THE BRAZIL country. Until the Implementation Authority reformulates the measurement system, it will continue to be carried out according to the application of capacity values set by Resolution ME 578 of 22 December 1982. The subset or joint produced locally under a national manufacturing regime authorized by the Implementation Authority shall also be considered as a whole national; that in all cases it shall be expected to reach the above percentage within a maximum period of THRE (3) years. _Conditions of origin that must be fulfilled in the country of origin to gather together the pieces, subsets or the same established conditions set from countries so that the pieces, subsets and ALADI under joint programs are considered bilateral: national production. In the case of subsets and assemblies, it may be considered originating from the country of origin when it is exceeded the SCIENTY ACCOUNT (40 %) of imported parts and pieces, provided that they are originating from the ARGENTINA REPUBLIC. Self-equipment Provider It is every independent manufacturer: self-equipment whose management is not controlled by terminal or subsidiary companies, either by holding shares or by other alternative mechanisms that allow to assume membership in the same economic group.
