VISTO Law No. 21.932, the Act for the Stability and Growth of Automotive Industry, the Economic Complementation Agreement No. 14 and the Mercosur Treaty, and
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 the results have been sufficiently experienced, 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. 21.932.
THE PRESIDENT OF THE ARGENTINA NATION
RIGHT:Article 1 de Institutionalize by this decree the rules for the reordering and regulation of the Argentine automotive industry and the import of motors, which will govern from 1 January 1992 and until 31 December 1999. From 2000 onwards, they shall exclusively govern the rules that are agreed upon under the General Agreement on Tariffs and Tariffs (GATT). Art. 2o . Automotive vehicles that occur in the country or which are imported, must comply with the technical standards on safety requirements, issue of contaminants and other aspects related to transit that govern the national territory, for which the Implementation Authority, in coordination with the relevant units, may verify the technical specifications thereof.
DEFINITION OF CATEGORIES AND INDICES OF IMPORTED CONTAINEDArt. 3o la Please find the following classification for national production motors:
Category A: Passenger motors of any weight and cylinder, and utilitarian vehicles such as pick up, vans and other vehicles for the transport of passengers and cargo, with a useful load capacity of up to 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 cargo vehicles and with or without carriages for collective passenger transport, with a service capacity greater than MIL QUINIENTS (1500) kilograms of weight per unit.(Replaced by Art. 2nd of National Decree No. 683/94 B.O. 13/5/1994) Art. 4o . Until 31 December 1995, the terminal companies included in this production regime will be able to incorporate in the automotives that produce imported autopies only up to the CENTER (40 %) and ACCOUNT AND DOS FOR SCIENTO (42 %) of the value of the vehicles, for the case of Categories A and B respectively.
From 1996, terminal companies will be able to incorporate into the Category A and B motors that produce a maximum of imported autopies according to the following schedule:
1996 ACCOUNT BY SCIENTI (40 %)
1997 TREINTA AND ALWAYS BY SCIENTY WITH CENTER (37.50 %)
1998 TREINTA AND CINCO BY CIENTO (35 %)
1999 TREINTA AND TWO IN ACCOUNT CENTESImos (32.50 %)
1996 BODY AND TWO FOR SCIENTY (42 %)
1997 TREINTA AND ALWAYS BY SCIENTY WITH CENTER (37.50 %)
1998 TREINTA AND CINCO BY CIENTO (35 %)
1999 TREINTA AND TWO IN ACCOUNT CENTESImos (32.50 %)(Replaced by Art. 1 National Decree No. 33/96 B.O. 18/1/1996) Art. 5o . Until 31 December 1995, the terminals will be able to mediate the imported content between the vehicles that produce within the same category. From 1996 to 31 December 1999, imported content indexes will govern for each particular model.
In the case of the launch of new models, the progressive integration of these models will be allowed for the period of THREE (3) years with a percentage of CINCUENTA BY CIENTO (50 %) on average in that period, having to reach the percentage established in Article 4 of Decree No. 2677/91 at the end of the same period.(Replaced by Art. 3rd National Decree No. 683/94 B.O. 13/5/1994 National Decree No. 523/95 B.O. 29/9/1995 National Decree No. 33/96 B.O. 18/1/1996)
PRODUCTION REGIME AND COMPENSED IMPORTATIONS FOR RADIACIAL COMPANIESArt. 6th . In order to produce in the country motor vehicles that incorporate imported parts and parts, the terminal companies located in the country will be, as of 1 January 1992, obligated to meet the requirements set out in Articles 7o, 8o, 9o, 11 and 15 of this Decree, and will consequently have access to tariff breaks in their import of parts and parts and to the possibility of complementing their supply of vehicles in the national market. Art. 7o . The terminal companies must present 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 lagging 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 that is 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. 8o . Commercial balance: terminal companies must credit exports that at least compensate one by one, in currency, their imports. Exports and imports will be measured in FOB values. Art. 9th . Terminal companies shall submit to the Authority of Application, in the modality that this rule, compensated exchange programs that preview the fulfillment of the relation of trade balance that establishes 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.
In the case of the establishment of new terminal companies, their initial exchange plans compensated for the fulfillment of the relationship established in Article 8 may cover a period of up to THREE (3) years and in the event of registration of non-compliance of the same shall apply the scheme of options referred to in Article 1 of this Decree. New terminal companies will have to credit significant investments in fixed assets in accordance with the amounts of the automotive industry in the terms determined by the Implementing Authority. When terminal companies prove that the development of their exchange is framed without significant deviations within the forecasts of their original plan, the Application Authority that will monitor such performance will be extended on a regular basis to the respective Import Certificates for full vehicles or parts and parts, as appropriate. If, on the other hand, companies register significant breaches or deviations in their exchange, the Application Authority will only extend the respective Certificates of Importation, on a regular basis, upon export accreditation and decide on the eventual application of the corresponding sanctions and/or the corresponding deduction of the accumulated deficit.(Replaced by Art. 4th of National Decree No. 683/94 B.O. 13/5/1994) Art. 10. s 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 (40 per cent) by the acquisition of fixed assets (in the case of real estate, the value of the building facilities, which are still used) of national origin may be computed permanently to the production in the country.
(d) As of 1 January 1994, they will also be computed as exports, increases in foreign sales by companies producing capital goods, compared with 1993.
This implies that the above-mentioned companies may assign to the terminal companies of the automotive industry, the right to use such increments as their own export under the conditions established by the Implementation Authority.
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.(Replaced by Art. 5 of the National Decree No. 683/94 B.O. 13/5/1994) Art. 11. . The total annual exports of terminal companies must contain at least a VEINTICINCO FOR SCIENT (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. NOTE: For Art. 33 National Decree No. 660/2000 B.O. 2/8/2000 provided that for the purposes of compliance with the provisions of articles 8 and 11 of Decree No. 2677/91 and article 1 of Decree No. 33 of 15 January 1996 shall be considered as a single period for the period from 15 January 1996. 1 January 1999 and on 31 July 2000. The automotive terminals that had a multi-year Compensate Exchange Programme in 1999, in accordance with article 4 of Decree No. 683 of 6 May 1994, should include for that year the period referred to in the preceding paragraph, thus closing the Compensated Exchange Programme on 31 July 2000. Art. 12. de For the calculation of the trade balance defined in Article 8, as imports will be computed:
(a) all imports of parts, parts and components for production (excluding spare parts) by terminal enterprises.
(b) acquisitions in the country of parts, parts and components (excluding spare parts), which have still been imported by third parties and/or companies associated with the terminals are intended for the production of the terminal company, except when the latter had been previously imported and compensated with exports by auto-party companies with approved offset exchange programmes.
(c) imports of full vehicles under Article 14 as amended by Article 8 of Decree No. 683/94.(Replaced by Art. 6th of National Decree No. 683/94 B.O. 13/5/1994 National Decree No. 1179/94 B.O.20/7/1994National Decree No. 682/99 B.O. 25/6/1999) Art. 13. Las Imports of parts, parts and components for their production (excluding spare parts) carried out by terminal companies and their associated companies, to the extent that they are new goods and are compensated according to Article 8, will pay a right of import of DOS by SCIENTO (2 %). If imports are made under bilateral programmes, provided that they are in the LATINAMERICAN INTEGRATION ASSOCIATION, up to the amounts offset will pay a Import Right similar to the one that the counterpart country applies to the entry of Argentine auto parts, according to the principle of tariff reciprocity. The import of parts and parts with the benefits provided for in the MERCOSUR area, including the consideration of these products as nationals, shall be carried out by the terminal companies through the Certificates of Import issued by the SECRETARIAN OF INDUSTRIA, TRADE and MINERIA of the MINISTERY OF ECONOMY AND PUBLIC SERVICES. In addition, terminal enterprises shall carry out their imports with the tariff benefits of this article through the Certificates of Imports issued by the SECRETARIAT OF INDUSTRIA, TRADE and MINERIA of the MINISTERY OF ECONOMY AND PUBLIC SERVICES. (Replaced by Art. 7th of National Decree No. 683/94 B.O. 13/5/1994 National Decree No. 110/99 B.O. 22/2/1999) Art. 14. . Terminal companies will be able to complete their supply of vehicles on the national market by importing new vehicles, subject to compliance with the corresponding compensation requirements set out in Article 8, for which the respective offset exchange programmes defined in Article 9o will be considered. The importation of vehicles under these conditions will not tax tariffs when they are appropriate and originating from MERCOSUR member countries.
Where vehicles are originating from extrazone, the tariff that terminal companies shall tax shall be the current tariff or that obtained by application of the convergence formula provided for in Article 22 of this Decree. Always the least. This formula, as stated in the above article, converges with the common external tariff set by Decree No. 998 of 28 December 1995, and will be adjusted quarterly. In the case of imports of category "B" vehicles, defined in Article 3 of this Decree, whose current tariff is less than the Common External Tariff, the CINCUENTA BY CIENTO (50%) of the tariff obtained by application of the convergence formula provided for in Article 22 of this Decree shall be taxed.
In all cases, whether intrazone or extrazone, the import must be carried out through the certificates issued by the SECRETARIAT of INDUSTRIA, TRADE and MINERIA of the MINISTERY OF ECONOMY AND ARTWORKS and PUBLIC SERVICES.(Replaced by Art.8o of National Decree No. 683/94 B.O. 13/5/1994 National Decree No. 475/99 B.O. 11/5/1999) NOTE: By Art. 1 National Decree No. 1522/99 B.O. 9/12/1999 established that the certificates issued to the automotive terminal companies in accordance with the provisions of the amended texts of articles 13 and 14 of Decree No. 2677/91 and to the auto-party companies under the approved Compensate Exchange Programs, in accordance with Article 6 of Decree No. 33/96, will remain valid until the 31 December 2000. By Art. 31 National Decree No. 660/2000 B.O. 1/8/2000 extended the period of validity of such certificates until 31 March 2001, can be used only for imports from extrazone. Art. 15. . Terminal companies must submit in advance to the Application Authority, in the modality that this rule, their model production programs. The Implementation Authority is empowered to establish that such models and their equivalents as provided for by regulation may also be imported by any natural or legal person, providing for such cases the exception of the provisions of article 19 of this Decree. Imports carried out by this mechanism will tax the respective import right in force without any preference. In determining the models produced by the terminals that will be importable by third parties the Application Authority shall consider the intention of supplying the respective terminal when producing the model in question in certain quantities. The regulation shall establish the criteria for the approval of a model, with the approval of its possibility of free import, the periodicity of the respective listings, the equivalence parameters for the determination of the approval of models similar to those produced locally and the clauses that will govern when a locally produced model is discontinuated or is generally available its exclusion or decrease of the listing. When the level of imports of a homologated vehicle represents more than one VEINTE BY CIENTO (20 %) of the level of production of the same for an annual period, no new imports of the vehicle in question will be allowed by the terminal companies or their linked ones.
Locally unproduced vehicles that are now in the condition of being freely imported by any natural or legal person will continue in this condition until 31 December 1994. From the entry into force of this decree only vehicles produced in the National Territory may be approved.(Replaced by Art. 9 of the National Decree No. 683/94 B.O. 13/5/1994) Art. 16. . The Application Authority will monitor the proportionality ratio between imports of models carried out by terminal companies under Article 14 and those 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 it proves that a significant disproportionality generates distortions in the market.
REGIME OF COMPENSED IMPORTATIONS FOR NON-RADIC TERMINAL COMPANY COMPANY COMPANY COMPANY COMPANY COMPANY COMPANY COMPANIESArt. 17. Las Foreign companies manufacturers 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 importation of full vehicles according to the following relationship: they may import A STATE DOLAR (U$S 1.-) for each dollar export of the product of the sector, evaluating both exports and imports at FOB values.
(c) Vehicles imported under these conditions shall pay up to 31 December 1994 for the corresponding tariff rate (50 per cent). Since 1995, this percentage will increase quarterly to the rate of convergence with the general tariff agreed upon in MERCOSUR and detailed in article 22 of this decree.(Replaced by Art. 10 of National Decree No. 683/94B.O. 13/5/1994)
GENERAL REGIME OF COMPLETE VEHICLES IMPORTATIONArt. 18. . The import 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, until 1 December 1994, be taxed by the SCIENTO (22 %) of Import Rights. As of 1 January 1995, the common external tariff to be determined in the Mercosur area will be governed by the same. Art. 19. . The unproduced import whose characteristics are in accordance with the description of the categories A and B set out in article 3 of this Decree; it will be during the years 1995 to 1999 not less than TEN BY SCIENTO (10%) and the QUINCE per SCIENTO (15 %) of the estimated national production of units of the same year, respectively.
The Implementing Authority will increase these percentages according to the supply of the demand for motors that is verified in the domestic market, for which it will take into account the number of vehicles that have been imported in the immediate year preceding Article 14 without compensation, as well as those imported under Article 15 of this Decree.
The imports under the mechanisms provided for in articles 14, 15 and 17 of this Decree are exempt from this quota.(Replaced by Art. 11 of National Decree No. 683/94 B.O. 13/5/1994) Art. 19: - National Decree No. 1398/97 B.O. 29/12/1999. - National Decree No. 110/99 B.O. 22/2/1999. - National Decree No. 682/99 B.O. 25/6/1999) Art. 20. . Please enable the Implementation Authority to establish quota allocation mechanisms among importing potentials and to establish the necessary rules and procedures to effect the imports to be allocated. The allocation mechanisms may, as established by the Implementation Authority, consider the application of overpayments above the corresponding tariff, the advance payment of rights and other relevant taxes. (Replaced by Art. 12 of National Decree No. 683/94 B.O. 13/5/1994) Art. 21. La The Implementation Authority will permanently monitor the supply situation of the national market. Please refer to the Authority of Implementation, beginning on 1 July 1992, to increase the import quotas provided for in the previous article, in the event of verification of situations of disapproval, as such periods of delay in the delivery to the acquirers greater than NOVENTA (90) days.
GENERAL PROVISIONSArt. 22. de FORMULA DE CONVERGENCIA DE ARANCELES as at 31 December 1999.
If At-1 greater than x then At= (At-1) - (At-1)-x))/(21-n)
If At-1 less than x then At= (At-1) - (At-1)-x))/(21-n)
At ... tariff to rule in period t
At-1 tariff in force in the period t-1
x ... target tariff to be established in Mercosur.
n ... numberer of the period t, from 1 to 20, corresponding 1 to the first quarter of 1995 and 20 to the fourth quarter of 1999.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 does not exempt in any case the terminal industry from the fulfilment of the global trade balance relationship 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 5 of Law No. 21.932, without prejudice to the penalties that may amount to a violation of customs regulations, shall apply.
As of 1 January 1995, in the particular case of non-compliance with the trade balance ratio defined in Article 8, the companies shall pay surcharges on the decompensated imports of the relation one to one established in that Article, regardless of whether or not they had been carried out under the terms of import certificates issued by the SECRETARIA DE INDUSTRIA, TRADE AND MINERIA of MINISTERIA.
The surcharges will be calculated according to the following pattern:
Basic Recharge Mount= (0.20 x A) - B
A= value of decompensated imports to ratio one to one (deficit amount).
B= amount of rights that the company had actually paid for the decompensated imports plus the credit, in respect of the tax refund provided for in article 2 of Decree No. 647/95, accumulated by the same or by another terminal company that gave it. The Implementation Authority shall regulate the use of such credits.
The terminal companies that make imports without the use of the Certificates of Import issued by the SECRETARIAN OF INDUSTRIA, TRADE AND MINERIA of the MINISTERIO OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, may choose to pay at the time of the dispatch the difference between the corresponding Import Rights and the VEINTE FOR CENTY (20 %) mentioned, cancelling. If the Implementation Authority does not do so, it will periodically calculate the corresponding surcharges.(Replaced by Art. 13 of National Decree No. 683/94 B.O. 13/5/1994 National Decree No. 1045/96 B.O. 17/9/1996) Art. 26. . The SECRETARIAT OF INDUSTRIA AND TRADE, of the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, which is empowered to dictate the regulatory, complementary and clearing rules, will be an aUTHORITY of the implementation of this regime.
The companies shall facilitate the inspections or verifications ordered by the Implementation Authority and shall 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. de Trust in the field of the SECRETARIAT OF INDUSTRIA And COMMERCY, the Advisory Council of the Automotive Industry, composed, 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 terminal firms that had 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. (Derogated from Art. 4th of National Decree No. 2018/93 B.O. 6/10/1993) Art. 29. El This Decree shall begin to govern from 1 January 1992, the date on which the Decree No. 2226/90 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 I
For all purposes of this Decree it shall be understood by:
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SECRETARIAT OF INDUSTRIA AND TRADE OF THE MINISTERY OF ECONOMY AND PUBLIC SERVICES.
Appropriately authorized companies that develop industrial activities in the country for the manufacture of motor vehicles, in accordance with Law No. 21.932 and its regulations.
These are the assemblies, subsets, parts, loose parts and accessories used in automotive production.
Parts or parts:
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 separate application and which is intended to physically integrate one of the assemblies or subsets, with specific mechanical or structural function.
It is the meeting of parties resulting from the arming of them and having a certain function.
It's a set that forms part of another.
Part or national piece:
They are considered to be those that are produced entirely from materials 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 their 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 package:
It shall be considered totally national, when the value of the imported autopies incorporated is as high as those indicated in each period below:
1996 ACCOUNT BY SCIENTI (40 %)
1997 TREINTA AND ALWAYS BY SCIENTY WITH CENTER (37.50 %)
1998 TREINTA AND CINCO BY CIENTO (35 %)
1999 TREINTA AND TWO IN ACCOUNT CENTESImos (32.50 %)
The measurement of the imported content will be carried out according to the following methodology:å Imported autopies value incorporated into the subset or set x 100
Sales value of the autopieza to the terminal before taxes
The subset or joint produced locally under a national manufacturing regime authorized by the Implementation Authority shall also be considered as a whole national, which in all cases should be expected to reach the above percentage within a maximum period of THRE (3) years.(Replaced the above definition by Art. 5o National Decree No. 33/96 B.O. 18/1/1996
Conditions of origin that must bring together parts, subsets or assemblies from ALADI countries under bilateral programmes:
They must comply with the same conditions established in the country of origin for parts, subsets and assemblies to be considered 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.
Independent self-equipment supplier:
It is any self-builder whose management is not controlled by terminal or subsidiary companies, either by holding shares or by other substitute mechanisms that allow it to be owned by the same economic group