CELLULOSE PULP AND PAPER FOR NEWSPAPERS

Law 26,736

Parliamentary control and regulatory framework. Objectives. Sanctioned: December 22, 2011 Enacted: December 27, 2011

The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:

PULP PAPER FOR DAILY PAPER. STATEMENT OF PUBLIC INTEREST. PARLIAMENTARY CONTROL AND REGULATORY FRAMEWORK. CHAPTER I Public interest

Article 1-State of public interest the manufacture, marketing and distribution of pulp and paper for newspapers.

CHAPTER II

Parliamentary control

Article 2-Crease in the field of the Honorable Congress of the Nation, the Bicameral Commission for the Follow-up of the Manufacture, Marketing and Distribution of Cellulose Pulp and Paper for Diaries, which will have the character of a permanent commission. The Bicameral Commission shall exercise control of the activity referred to in Article 12 of this Law. It will be made up of eight (8) senators and eight (8) deputies, appointed by the president of their respective chambers, on a proposal from the respective parliamentary blocs. the political sectors that are represented within each Chamber.

CHAPTER III

Regulatory framework

ARTICLE 3-Object. The present participatory regulatory framework is essential to ensure for the domestic industry the manufacture, marketing and regular and reliable distribution of pulp pulp for paper and paper for daily newspapers, declared de public interest, establishing the

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progressive implementation of the best available techniques, considering the employment factor and applying environmental practices that ensure the preservation and protection of the environment with sustainable development. For the purposes of this standard, 'cellulose pulp' means only that which is intended to produce paper for a day.

ARTICLE 4-Scope of application. The present participatory regulatory framework for paper industries is applicable to natural or legal persons with domicile in the Republic of Argentina who are manufacturers, distributors and marketers of pulp and pulp. paper for newspapers and buyers of such products.

ARTICLE 5-Definitions. For the purposes of this Regulation, the following shall be established: (a) Manufacturers, distributors and traders of pulp and paper for newspapers: natural or legal persons domiciled in the Republic of Argentina carrying out the manufacturing, distribution and marketing of pulp and pulp paper for newspapers and buyers of such products; b) Manufacture of paper for newspapers: paper making for newspapers from cellulose pulp obtained from natural fibres or recycled cellulosic materials, using, in any case proportion, mechanical, chemical-mechanical, semi-chemical or chemical processes; Paper buyers for newspapers: any natural or legal person with an address in the Argentine Republic who directly or through third written press publications destined for the Argentine market and who has duly registered to be regarded as such in the register which is established for that purpose by Article 28 of this Law.

ARTICLE 6-Subjects. For the purposes of this scheme, manufacturers of pulp and paper pulp are subject to newspapers and to the traders, distributors and buyers of such products.

ARTICLE 7-General principles. The activities covered by this law shall be exercised freely, in accordance with their public interest, in accordance with the general provisions laid down therein and the rules governing them. These activities should be aimed at national production, competition, non-discrimination, free access, efficient allocation of resources and the preservation of the environment.

ARTICLE 8-Environmental impact. The production activity of pulp and paper for newspapers must be developed in an environment and with technology that reduces the possibility of generating an environmental impact. In this regard, compliance with the current environmental protection regulations, especially in relation to the dumps and the gaseous emissions, must be complied with. All companies will have to carry out an environmental impact study in which there should be a description of the expected effects, as well as proposals for technological improvements, in order to minimize these impacts. The study should be updated annually, reflecting improvements made both in the process and in the treatment of waste.

Article 9-In the event of adverse changes in the environment, a clear policy of repair of the damage caused. It will tend to be the first step towards the recomposition of the damaged environment, with the technological means available. If it is not possible, it will tend to generate a positive impact that will compensate for the damage caused. The damage assessment shall be permanent, with the undertaking required to inform the implementing authority in case it is increased and to propose measures for the reduction of the damage.

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ARTICLE 10. -Application Authority. The Ministry of Economy and Public Finance will be the implementing authority whose functions will be, among others, to monitor compliance with the present regulatory framework. It shall also be responsible for issuing the clarification and supplementary rules, approving the action plans and taking action in all the acts provided for in the applicable legislation.

ARTICLE 11. -Privileges of the implementing authority. Without prejudice to the provisions of the preceding Article, the implementing authority shall: (a) Incentives for the efficiency of the sector and ensure national production in all stages of the activity starting from wood as a basic input; b) Propelling a better operation of the pulp and paper pulp industry (c) to enforce this law, its rules and complementary provisions, in the field of its competence; (d) to lay down the rules governing the application of the laws of the Member States; the subjects of this law must be adjusted in the field of technical standards and procedures; Require the actors of the present regime, supporting documentation and information that is necessary to verify compliance with this law and its regulations. It shall also carry out the necessary inspections for the same purposes and shall provide the relevant records; (f) Promote to the competent courts the relevant actions to ensure the performance of their duties and the (g) Take control of the exports and imports of pulp and paper for newspapers, by means of the register established by Article 28 of this Law. It shall also recommend measures relating to external trade for the purposes of this scheme; (h) to apply the penalties provided for in this law and its rules; (i) to exercise the appropriate supervision measures; (j) to promote and control the production and sustainable use of pulp and paper for newspapers; (k) Establish the quality standards to which the production of pulp and paper pulp should be adjusted; (l) Establish requirements and conditions necessary for the production of pulp and paper pulp production plants for newspapers, to decide on their qualification and approval and to certify the date of their implementation; (m) to establish the selection criteria and criteria for the submission of projects which are intended to benefit from the benefits established by the (n) to carry out audits and inspections of plants which are enabled for the production of pulp and paper for newspapers in order to monitor their proper functioning and their adjustment to the (o) Carry out audits and inspections of the beneficiaries of the promotion scheme established in this law, in order to control its proper functioning, its adjustment to the current regulations and the permanence of the conditions established to maintain the benefits that have been granted to them; at present as well as those which are eventually granted; (q) To update the national register created by Article 28 of this Law, in particular with respect to the data of the subjects and the plants authorized for the production of pulp and paper pulp for newspapers, as well as a detail of those to which they have been granted promotional benefits established under the pre-existing schemes in the present; r) Signing cooperation agreements with various public, private, mixed and organisations bodies

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(i) to publish on its website the register created by Article 28 of this Law, as well as the amounts of the benefits granted to each company; necessary for the best performance of their functions and the objectives of this law and its regulation.

ARTICLE 12. -Federal Advisory Commission. Create the Federal Advisory Commission for the Promotion of Production and Sustainable Use of Cellulose Pulp and Paper for Diaries, whose role will be to assist and advise the implementing authority. This commission shall be composed of one (1) representative of the newspapers of each of the provinces and of the Autonomous City of Buenos Aires chosen by paper buyers for newspapers of the Argentine Republic who have a regular appearance and they do not participate directly or indirectly in the production of paper for newspapers or any of their strategic inputs. It will also be integrated by two (2) representatives of representative organisations of users and consumers and three (3) by the workers, corresponding one (1) representative to the graphs, one (1) to the press and one (1) to the sellers of newspapers and magazines. The representatives of paper buyers for newspapers will last four (4) years in their duties, and must rotate annually among the various buyers. The representatives of the user and consumer organizations will last four (4) years in their duties, and will have to rotate annually among the different organizations.

ARTICLE 13. -The coordination of the Federal Advisory Commission will be carried out by the Ministry of Economy and Public Finance.

ARTICLE 14. -For the purposes of integrating the Federal Advisory Commission, buyers must be registered in the register created by Article 28 for this purpose in the Ministry of Economy and Public Finance. In the same case they must prove the legal status.

ARTICLE 15. -For the purpose of the operation and decision making within the Federal Advisory Commission all the member media will have the same voice and vote regardless of their size, production volume and/or level of sales.

ARTICLE 16. -The functions of the aforementioned Federal Advisory Committee: (a) To analyse the situation and development of the international and local paper market for newspapers; (b) to analyse the commercial and access conditions of the input in the local market; (c) to monitor and monitor the implementation of the (d) To analyse and make proposals on the investment plans of the firm Papel Prensa S.A.; and) to propose measures to extend the spectrum of diversity, democratization and federalization of the (f) Collaborating with the national state advising on their action within the framework of the Papel Prensa S.A.; g) Advising the national state on the whole problem of paper for newspapers; h) Eventually exercising the political rights of the increase in the participation of the national state in the firm Papel Prensa S.A. the product of the change in its share share through capital contributions;

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(i) Dating its own operating rules.

ARTICLE 17. -Separate accounting. Manufacturers of pulp and paper for newspapers must keep separate accounts for the activity, in the case of being vertically integrated.

ARTICLE 18. -Transparency. Manufacturers, distributors and marketers of pulp and paper for newspapers should keep up to date a publication for pulp and paper buyers for newspapers and for the Bicameral Commission for Monitoring the Manufacture, Marketing and Distribution of Cellulose Pulp and Paper for Diaries. This obligation shall be deemed to be fulfilled by the creation and daily updating of an Internet site in which it consists of at least: the prices of the equivalent purchase, of the wood, the cellulosic paste, the paper for recycling, the soda caustic and any other input that, in the future, according to more than ten percent (10%) of the annual purchases of the activity. Without prejudice to this, manufacturers, distributors and marketers of pulp and/or paper pulp for newspapers may add other forms of advertising to that indicated above.

ARTICLE 19. -Publication of balance sheets. Manufacturers, distributors and marketers of pulp and paper for newspapers shall publish to the general public the quarterly balance sheets in the terms and conditions established by the National Securities and Exchange Commission.

ARTICLE 20. -Single price of spot payment. Without prejudice to Article 18 of this Law, manufacturers, distributors and traders of pulp and paper pulp for newspapers shall publish for the knowledge of the buying-in and of the Bicameral Commission. Follow-up to the Manufacturing, Marketing and Distribution of Cellulose Pulp and Paper for Diaries: (a) the total and available stock, on a daily basis; (b) the maximum production capacity and the estimated production for the next three (3) months, quarterly; (c) The single price paid out of paper for daily paper to the plant output, which is obtained from the formula set out in Table I which forms part of this Law. This price will be the same for any operation involving the acquisition of more than one (1) tonne of said product, in terms of immediate delivery, both committed and new operations to be confirmed in the day. In no case shall contracting be effected involving a lower price than the single payment price.

ARTICLE 21. -Manufacturers, distributors and distributors of pulp and paper for newspapers may set prices higher than the single payment price when they grant payment periods.

ARTICLE 22. -Sales regime. Manufacturers, distributors and distributors of pulp and paper pulp for newspapers shall, without discrimination of any kind, take care of all supply requests for which there is no stock or production capacity. compromised.

ARTICLE 23. -The buyers of pulp and paper for newspapers are obliged to place orders and the fulfillment in time and form of the withdrawal of the goods that they will request. This is without prejudice to the actions that manufacturers decide to initiate to compensate for any damage caused.

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ARTICLE 24. -In the event that for a certain period surpluses of capacity persist over the production plans committed, it will be at the discretion of the manufacturers of pulp and paper for newspapers, the adjustment of production or stocks.

ARTICLE 25. -Investment scheme. Manufacturers of pulp and paper pulp for newspapers will have to commit a capacity projection to three (3) years depending on the investment programmes they are going to carry out. For the purpose of financing investments, companies will have the promotional benefits that they offer or that the National Executive Branch will offer in the future.

ARTICLE 26. -The Federal Advisory Commission shall estimate, on a quarterly basis, the requirements for the importation of pulp and paper for newspapers on the basis of the information provided by the manufacturers, distributors and traders as provided for in the Article 20 of this law, in order to ensure the full supply of the local market. Define "Qm" as the estimated volume of imports required per quarter. The Federal Advisory Commission shall also estimate, on a quarterly basis, the maximum national production of pulp and paper for newspapers on the basis of the information provided by the manufacturers as provided for in Article 20 of this Regulation. law, in order to ensure the full supply of the local market. Define "Qn" as the estimated volume of domestic production per quarter. Define as 'P' to the ratio of the estimated volume of imports required (Qm) to the estimated volume of domestic production (Qn); being P = Qm/Qn. In order to avoid possible import costs for small and medium-sized buyers, the National Executive Branch is empowered to exempt them from the provisions of Article 27 of this Law.

ARTICLE 27. -For the purpose of ensuring a fair distribution of the relative cost of importing between all the applicants, the purchaser of pulp and paper for newspapers, to be granted a confirmation of the sale of pulp and paper for newspapers national production must prove that it imported (or is to import) directly or indirectly the "P" ratio defined in the preceding article.

ARTICLE 28. -National Register of Pulp Pulp and Paper Manufacturers, Distributors and Dealers. Create the National Register of Pulp Pulp and Paper Manufacturers, Distributors and Dealers for Diaries within the scope of the implementing authority. For the purposes of better control of the provisions of this regulatory framework, such registration shall contain the data and operations of the subjects involved in the manner and conditions to be determined by the regulation.

ARTICLE 29. -Deadline to register. Manufacturers, distributors, marketers and buyers of pulp and paper for newspapers will have a maximum period of time, for the purposes of their registration in the national register created by the article above.

ARTICLE 30. -judicial review. For the purposes of the administrative action of the implementing authority, the National Administrative Procedure Law, 19,549, and its rules shall apply.

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regulations. The administrative route will be exhausted directly before the Federal Court of Appeals with jurisdiction in administrative and administrative matters with jurisdiction at the place of the event.

ARTICLE 31. -sanctioning regime. Any actor reached by this law, who incurs a violation of the provisions of this law, in respect of any other member of the chain of manufacture, distribution and/or marketing of pulp and paper for (a) shall be subject to the penalties provided for in Article 33 of this Law, without prejudice to the penalties laid down in the substantive legislation.

ARTICLE 32. -The present normative framework establishes as passively of the penalties prescribed by article 33 of this law, the following behaviors: 1. The refusal or obstruction to be inspected, and the non-collaboration with the inspection when it is is required. 2. Failure to comply with the obligation to maintain the levels of quality and quantity of pulp and paper production for newspapers. 3. The use under conditions other than those authorized by the present normative framework of pulp and paper for newspapers. 4. Failure to comply with the instructions given by the implementing authority, in the field of its powers, on the safeguarding of free competition on the market. 5. Failure to comply with the resolutions adopted by the implementing authority in the performance of its duties. 6. The repeated non-compliance with the information requirements formulated by the Bicameral Commission for the Monitoring of the Manufacture, Marketing and Distribution of Cellulose Pulp and Paper for Diaries or by the implementing authority, in the exercise of their duties. 7. Poor distribution or sale of pulp and paper production for newspapers. 8. The alteration, manipulation or fraudulent substitution of the characteristics of pulp and paper for newspapers. 9. Non-compliance with the deadlines set by the present regulatory framework. 10. Any other violations of this regulatory framework or current legislation.

ARTICLE 33. -Violations and sanctions. The non-compliance with this law shall be sanctioned by the implementing authority with: (a) "payments"; (b) fines: the value of which shall be fixed by the implementing authority, taking into account the seriousness of the infringement, the reiteration of the facts, the amount of the damage caused, the conduct after the infringement by the defaulter, the economic and financial capacity of the infringer and the other circumstances and particularities of the case; (c) Inratings: the time limits shall be set by the implementing authority in accordance with the criteria set out in point (b) of this Article; (d) Suspensions: the time limits shall be fixed by the implementing authority, criteria set out in point (b) of this Article; (e) Repair of the damage caused: where the conduct has caused injury to a particular person and the public interest or third parties, the implementing authority, is not affected; can order the repair of the damage from the manufacturers, distributors, and the pasta marketers

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Paper pulp and paper for newspapers; (f) Clauses and seizures.

ARTICLE 34. -Audit. In the cases of prevention, finding of violation, enforcement of the measures of kidnapping, confiscation or other measures that may be appropriate, the enforcement authority may require the competent judge to assist the public force. For this purpose, the relevant administrative and formal requirements of the competent authority shall be sufficient to bring before the judge.

ARTICLE 35. -Tax rate. Create the audit fee and assign to the enforcement authority the collection of the charge, the production of which will be used for the operation of the Federal Advisory Commission and the surplus for the trust fund created by Article 37 of this law.

ARTICLE 36. -They shall be obliged to pay the tax on the production of pulp and paper for newspapers, manufacturers, traders and distributors of such products. The settlement period shall comprise one (1) calendar month and the rateable value shall be given by zero-point one per cent (0,01%) of the invoicing. The application, by the enforcement authority, of the fee created by Article 35 of this law, and the imposition of fines, interest, updates and penalties shall be governed by the rules and procedures laid down in Law 11.683 (t.o. 1998) and its amendments.

ARTICLE 37. -Trust Fund. Create a trust fund to promote investments in capital goods of small and medium-sized enterprises that develop activities related to the manufacture, marketing and distribution of pulp and paper for newspapers and for registered buyers.

ARTICLE 38. -the trust fund set up above shall be composed of the following resources: (a) the totality of the resources arising from the system of penalties provided for in this law; (b) the funds which are allocated by law; (c) funds to be obtained under special programmes of appropriations to be agreed with the relevant national and international bodies or institutions; (d) the specific contributions which the implementing authority agrees with the operators of the (e) The surplus of the levy created by Article 35 of this Law.

ARTICLE 39. -The National Executive Branch will regulate the constitution and operation of the aforementioned fund, and will have to arbitrate the means for the operation of the fund to have the greatest transparency and efficiency in its operation.

Transitional clauses

ARTICLE 40. -By virtue of the fulfilment of the objectives of the creation of the firm Papel Prensa S.A., the fulfilment of the clause of equal access of all the graphic media to the aforementioned essential input as well as of the declaration of public interest of the paper production for newspapers, the company

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Paper Press S.A. shall: (a) Operate at least full of its operational capacity or internal demand for paper (where this is less than the operating capacity); (b) Present and execute every three (3) years an investment plan to satisfy the entire internal demand for paper for newspapers.

ARTICLE 41. -When the funds necessary for the investments provided for in the previous article are provided more than proportional by the State in respect of other partners, the additional emerging political rights of such capital contributions shall be exercised by the Federal Advisory Committee established by Article 12 of this Law. Without prejudice to the foregoing, the emerging heritage rights of the aforementioned contributions are part of the national state's shareholding in Papel Prensa S.A., which is eventually increased through this mechanism.

ARTICLE 42. -Contact the National Executive Branch. GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE TWENTY-TWO DAYS OF DECEMBER OF THE YEAR TWO THOUSAND ELEVEN. -REGISTERED UNDER NO. 26,736-AMADO BOUDOU. -JULIAN A. DOMINGUEZ. -Gervasio Bozzano. -Juan H. Estrada.

Table I

Date of publication: 28/12/2011

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