IMPESTS Decree 593/91 (*) Unimpededly leave the application of the established tax on nationally manufactured products detailed under the headings of Template II-Anexa to article 70 (b) of the Internal Revenue Act (t. 1979) and its amendments

Bs.As.4/4/91

VISTO the provisions of art. 86 of the Internal Tax Law, ordained in 1979 and its amendments, and

CONSIDERING:

That this rule empowers the NATIONAL EXECUTIVE PODER to temporarily diminish or leave the levies involved in the law without effect, when advised by the economic situation of a particular productive sector.

That the reduction of the specific tax burden in the field of the electronic industry, referring to certain goods involved in the activity, in addition to benefiting the consumer, will result in increased productivity, employment and competition.

That in that line of reasoning it is considered appropriate to exercise the pre-reference with respect to the levy established by Article 70 (b) of Chapter VI of the Law on Internal Taxes, which was ordained in 1979 and its modifications, with respect to certain goods elaborated by the sector and whose payroll integrates the agreement between the parties concerned and is set out in Annex I to the present. All this according to the technical report produced by the SUBSECRETARIA DE INDUSTRIA AND TRADE.

That the legal service of the MINISTERIO DE ECONOMIA has also been favourably pronounced on the feasibility of this administrative act.

That the measure is based on the powers granted by article 86 of the law on internal taxes, which was ordered in 1979 and its amendments.

Therefore,

THE RPESIDENT OF ARGENTINA NATION

RIGHT:

Article. 1. The application of the established levy on nationally produced products detailed under the headings of Table II - annexed to Article 2 (b). 70 See Text of the Internal Tax Law, t.o. in 1979 and its amendments, as follows:

Part 85.12:	Food cooking furs by electromagnetic waves (microondas) or energy radiofrequency (R 925/1979 M.E.).
Part 85.15:	The entire game.
Part 92.11:	Repairs for registration or repro- ducting of images and sound on television.

Art. 2. The provisions of the previous article shall govern for the unenforceable facts arising from the date of publication of the present decree in the Official Gazette and until 28 February 1992 both inclusive dates. Art. 3. Contact, post, give to the National Directorate of the Official Register and archvese. Domingo F. Cavallo

AGREEMENT FOR ELECTRONIC INDUSTRIA

Together the representatives of the National Government and the Association of Argentine Factorys Electronic Terminals (AFARTE) decide to conclude this agreement, exclusively for electronic mass consumption products, with the companies listed in the annex "A" that adhere to the present.

1. As a result of the joint effort of the National Government and Industry, the discounts are agreed on the dollar prices in force in December 1990 as detailed in Annex "B". The prices thus discounted will govern until 28.02.1991.

2. The industry is committed not to firing, except for disciplinary reasons, during the validity of this agreement.

3. The industry, if necessary, will increase its output to an average 35 per cent compared to 1990.

4. The National Government, in the use of the powers granted by law 19,640 (art. 19, item 2, subparagraph (e) exempts the products manufactured in the Special Customs Area (AAE) from the current domestic taxes to date.

5. The National Government for the Importance of the National Continental Territory of finished products and/or subsets of third countries shall establish:

(a) Reasonable values (Annex C).

(b) It shall maintain in its entirety the tariff and tax conditions in force to date.

6. A Mixed Commission (Government-Industry) is constituted, which will propose guidelines for the reconversion of the sector it currently produces under Law 19,640. The Commission shall be issued on the points set out in Annex "D", within sixty days of the date of signature of the present.

7. Considering the important commitments that the Industry will undertake to ensure the normal supply of the market, no further changes will be made to the current regime, than those provided for in this Agreement, until 28.02.1992.

8. During the validity of this Agreement:

(a) Industries will not receive reimbursement for exports from the National Continental Territory to the Special Customs Area.

(b) The VAT will not be recovered. for purchases in the National Continental Territory.

(c) With regard to exports to third countries, companies in the Special Customs Area will not receive additional reimbursement of 5 per cent established by Decrees 1139 and 1345/1988 (d) Reimbursement for Patagonian port will be perceived in BOCREX and the general reimbursement provided for Decree 1555/86 will be received in cash.

Annex "A"

VIDEUS S.A.

TELEUSHUAIA S.A.

BENCER S.A.

NOBLEX ARGENTINA S.A. (WHERE)

NEWSAN S.A.

CONTINENGAL FUEGUINA S.A.

RADIO VICTORIA FUEGUINA S.A.

SONTEC S.A.

BGH S.A.

SIGIS S.A.

SICOM S.A.

FÁBRICA AUSTRAL DE PRODUCTS ELÉCTRICOS S.A.

PHILCO USUHAIA S.A.

AUDIVIC S.A.

INTERNATIONAL TELEVISION COLOR S.A.

SONTEC S.A.

KENIA FUEGUINA S.A.

ELECTRONIC ATHUEL S.A.

FAMAR FUEGUINA S.A.

NOVA FUEGUINA S.R.L.

ELECTRO FUEGUINA S.A. (ADHERENTE)

AUDIOWELTON S.A. (ADHERENTE)

OLYMPIC ELECTRONIC S.A. (ADHERENTE)

PAPUL S.A. (ADHERENTE)

Annex "B"

DISCUSSIONS ON THE VIRGENT PRICE as at 31.12.1990

LÍNEA TV	33%
LÍNEA VIDEO	33%
LÍNEA AUDIO	33%
LÍNEA MICROONDA	33%
LÍNEA AUTORRADIO	28%
(excluding automotive terminals)

Annex "C"

Annex "D"

Agenda Mixed Commission:

1. The established regime for the conversion and growth of the electronic industry in conditions of international competitiveness.

2. The National Executive Branch shall be part of the Joint Commission through its various representations and Afarte.

3. The Commission shall have sixty days to raise its proposal.

4.Realize the follow-up so that the commitments made on the basis of the current economic variables as of the date, retain their relationship.