Chapter 3: Selling U.S. Products and Services

Using an Agent or Distributor &n= bsp; = ; &n= bsp; = ; <= /span>Return to top

U.S. companies typically market their products through an Argentine agent/representative or a distributor.

Distributors purchase goods directly from the manufacturer with the intent = of reselling them. Consequently, they assume the risk of sales to third partie= s. Unlike distributors, an agent or representative (equivalent to the U.S. sal= es agent) acts on behalf of its principal and promotes the principal's business without actually taking title. Agents typically earn a commission or fee on sales. In contrast, distributors earn their margins on the difference betwe= en the price at which they purchase the goods for resale and the price at which they sell these goods in the market.

Working with a distributor has several advantages. Distributors can provide strategic support for positioning brands in the market through advertising = and promotion. Furthermore, they understand the local culture and can assist wi= th after-sales service. This value-added service is increasingly important for customers, and contributes to a positive image of U.S. firms doing business abroad. It should be noted that some Argentine importers/distributors compl= ain that U.S. companies are sometimes inflexible on financing options for impor= ts and providing promotional support in the local market.

When deciding upon the optimal form of representation to use, U.S. companies should consider their control over price, channel distribution network, pol= icy, operational expenses, after-sales service, and potential liability under Argentine labor law.

Variable Forms of Representation	Representative	Distributor	Branch/Subsidiary
Price Control	Yes	No	Yes
Channel	Yes	Yes	Yes
Policy	Short Term	Short/Medium Term	Long Term
Operational Expenses	No	No	Yes (No, in cases of large multinational companies)
After-sales Service (Well-served Clientele)	No/Yes (According to % of revenue)	No/Yes	Yes

The Civil and Commercial Codes govern principal-agent relations. No special legislation has been en= acted to regulate the cancellation of agency/distribution agreements, although a company could incur additional costs associated with the cancellation of an agency agreement under Argentine labor law.

The contract entered with agents/distributors should specify rights and responsibilities, the exclusive or non-exclusive nature of the relationship, geographical scope, description of the product or services included, and the compensation plan. Contracts = do not require a specific format and can be executed verbally. However, given the complexity of the legal and commercial environment, contracts are generally= negotiated in writing through the exchange of reversal letters or via a basic instrume= nt.

If the distributor is granted exclusive representation in an area, this rig= ht must be explicitly noted. Areas may be assigned according to geography, sec= tors of activity (public or private sectors), transaction volumes (large compani= es, retailers, etc.), and transaction modes (cash segment, home sale, etc.).
The agent may become an employee when any of the following requirements is fulfilled:

When he/she sells in the name of his/her employer
When he/she sells at the prices and sales conditions established by the ones he/she represents (terms of sale defined by principal)
When he/she receives a salary, travel allowances, fees, or any other kind of compensation
When he/she usually and personally carries out his/her activity as a travel= ing salesperson
When he/she renders his/her services within a determined geographic area
When the risk of his/her operations is levied on the employer

<= /o:p>

In these cases, Law 11,544 of 1929, as amended, may regul= ate the agent. In particular, Law 14,546 of 1958 extends Labor Law benefits to business agents.

The parties may not elect foreign laws to govern the agreement. If a contract is executed abroad to avoid Argentine law, Argentine courts will not enforce it.

The Civil and Commercial Codes permit a principal to cancel an agency agree= ment at his or her discretion. How= ever, the terminating party may be liable for damages resulting from a wrongful cancellation. All agreements, whether for a definite or indefinite term, should include a notice of cancellation clause.

Labor laws similarly require the service of a cancellation notice sometime before the actual cancellation date; otherwise, the principal may be liable= to the employee for earnings that would have accrued during the notification period. In all cancellation cases, except those based on a just cause, the agent is entitled to one month's compensation for each year of service, pay= able in a lump sum.

In addition, when a contract is terminated after one year, the agent or the distributor is entitled to compensation for the lost customers, which will amount to 25 percent of the amount corresponding to a wrongful dismissal.
Distributors of U.S. exporters may have experienced problems in transferring funds for imports, particularly during the first months of 2002. However, financial transactions have gradually returned to normal, allowing for adva= nce import payments and transfer of foreign exchange (further details may be fo= und in Chapter 5 on Trade Regulations and Standards).

Many U.S. companies have been successful exporting to Argentina during the economic crisis. Notably, many firms that have reported export success have done so because they took the = time to develop a close relationship with a representative, agent, distributor, = or other business partner. Relationships are key. U.S. companies should look at the long-term picture and keep in mind that current difficulties should be view= ed in the context of circumstances beyond a partner's control.

Finding a Partner

The U.S. Commercial Service of the U.S. Department of Commerce assis= ts exporters in finding appropriate partners in the local market. The U.S. Commercial Service in Buen= os Aires (CSBA) offers the following partner search services: <= br>
Customized Contact List= : Using a variety of resourc= es, including in-country databases and local expertise, we will prepare a customized list of Argentine companies in the sector of your choice. This list will contain company nam= e, address, phone/fax numbers, a contact name, e-mail address, web site, and a description of the firm and products/services offered. We will provide the list within two to 10 business days from receipt of notification from the pertinent U.S. Export Assistance Center th= at the $250 fee has been paid. <= o:p>

International Partner Search= : We will conduct a pre-screened search to identify up to five qualified potential representatives, distributors, licensees, franchisees, = or other strategic partners interested in your product or service. The preferred method for showing y= our products and company information to Argentine firms is your web site or electronic catalog/brochure. = If a web site or electronic catalog is not available, we will require 20 sets of product literature. The cost for this service is US$500; turnaround time is 30 business days.<= /o:p>

Gold Key Matching Service: This service allows U.S. firms to efficiently and effectively travel to Buenos Aires for face-to-face meetings with potential business pa= rtners. We will prepare a customized sched= ule of appointments with pre-screened potential agents, distributors, or other business contacts, according to your needs. The cost for= this service is $685 the first day, $320 each additional day of appointments. Six wee= ks advance notice is required. <= o:p>

Video Gold Key Matching Service (VGK)= : The VGK offers all the advantages of the Gold Key Service (GKS), without the expense of travel. We will arrange for pre-screened potential agents, distributors, or other business contacts to come to our offices for video meetings. T= he service includes at least three quality meetings with pre-screened potential Argentine firms, up to four hours of video interaction (including a briefing with Commercial Service staff). Please contact us for price and payment met= hod.

Platinum Key Service: This service is intended for U.S. firms active in a k= ey industry sector, involved in bidding on a major project, or seeking commerc= ial intelligence to achieve their business goals. A senior staff member will actively monitor and seek out information and intelligence in your area of interest. You will receive up-to-the-minute privileged market intelligence, trade leads, insights and major projects news or developments. These report= s, via e-mail or through confidential periodical telephone or videoconferences with the Embassy Commercial Specialist, will discuss political, strategic, financial and competitive developments in your firm's sector or in any numb= er of specific projects in Argentina. In short, you can now access the perfect tool to know --or double check-- what your foreign competitors, colleagues, customers, private and government clients are doing and how it affects your competitive position. This on= going service is available for six months, one year, or a specified timeframe bas= ed on the mutually agreed-upon scope of work.= Price will be quoted prior to initiation of service.

Please see further information on CS Argentina products and services, especially designed for U.S. companies to successful= ly enter this market, under Services Offered by the Comm= ercial Service Argentina below.

Establishing an Office = ; &n= bsp; = ; &n= bsp; = ; &n= bsp; Return to top

Foreign companies may carry out any sing= le transaction. To carry on a habitual activity, a foreign company must establ= ish a branch (sucursal) in Argentina. An individual must be appointed as= the company's legal representative, but assignment of capital to the branch is = not necessary.

Legal Structures Commonly Used by Investors

Regardless of whether they are associated with local investors, foreign investors may do business in Argentina as individuals or through corporatio= ns, branches of foreign corporations, limited liability companies, limited partnerships, general partnerships and "joint ventures".

Foreign corporations often operate in Argentina through a separately incorporated subsidiary rather than through a branch, primarily to reduce t= heir potential liability. If a branch is used, all of the foreign corporation's assets, not only its Argentine assets, may be subject to potential liabilit= y. In contrast, if an Argentine or foreign subsidiary were used, the foreign corporation's liability would generally be limited to the assets owned by t= hat subsidiary.

Registration Procedures: a law effective throughout Argentina regulates Corporations. Corporations are set up with the approval of at least two leg= al or natural persons, whether Argentine or foreign.

A corporation may not be a partner in a partnership. A corporation can usua= lly be established within three to four weeks if capital is supplied only in ca= sh. If supplied in kind, the corporation can be established within approximately two months.

The estimated total incorporation cost ranges f= rom US$350 to US$850, including statutory books and excluding both professional fees and stamp tax (1 percent of capital).

A minimum of two founders, whether legal or natural persons, is required. T= here is no maximum limit on the number of founders. The founders of a company mu= st report a domicile in Argentina for related proceedings.

A minimum of two shareholders is required. No maximum is prescribed.

The minimum initial capital required is US$4,000, except for corporations engaged in banking, insurance or related activities. If the capital is supp= lied in cash, at least 25 percent must be paid at incorporation, with the remain= der payable in two years. If in kind, it must be fully paid at incorporation.
U.S. firms considering setting up operations in Argentina are encouraged to fully investigate the tax and legal aspects of establishing a business with legal counsel before making any final decisions. (A brief list of local English-speaking law firms is available in Chapter 9: Contacts, Market Rese= arch and Trade Events.)

Franchisi= ng &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

While franchising billings reached over US$4 billion in the year 2000, after five-years of growth, it fell by 20 percent= by the end of 2001 and gradually started recovering in 2003. In 2005, turnover reached over US$2.6 billion, reflecting an increase of 21.8 percent from the previous year and equivalent to 1.5 percent of GDP. As a result of the recuperating ec= onomy, franchises, particularly domestic franchises, are once again on the rise. Revenue was projected to reach approximately US$2.8 billion in 2006. While revenues have increased in local currency terms, in dollar ter= ms they are still below 1990s market levels.&= nbsp; At that time, the currency exchange was one Argentine peso to one U.= S. dollar.

During the last five years companies created different types of business partnerships, adjusted costs, and reduced the requirements to franchisees in order to adapt to real market demand and opportunities. For example, t= he franchising businesses that used to be rated in the medium-investment range were forced to reduce installation costs and fees. They are now rated in the medium-low to low investment range. Their reduced costs allowed several micro-entrepreneurial businesses to grow in an orderly fashion, starting wi= th an investment as low as US$8,000.

Another system that has emerged in past years is the franchise concept, whi= ch doesn’t involve a physical outlet, entrance fees or royalties, and ar= e a starting point for ventures in sectors such as merchandising, souvenirs, decoration supplies, key-holders, and pins among others.

Development of franchising in Argentina has been uneven and shows a high level of concentration: 10-15 chains handle 36 perc= ent of the franchises and 50 percent of the total turnover. According to the Economist Intelli= gence Unit, there are approximately 410 franchise brands and more than 16,000 franchise points of sale. The percentage of local franchisers has grown considerably in the past decade, = now accounting for approximately 87 percent of the total number of franchisers. U.S. companies make up about 6.1 percent of the total,<= /span> and Spanish and Brazilian companies each account for about 1.9 percent of t= he total. The peso exchange rate disadvantage vis-à-vis the dollar and scarce credit render it increasingly difficult for potential Argentine franchisees to acquire international or U.S. franchises. However, each opportunity should be evaluated on a case-by-case basi= s.

The most popular areas for international franchisers are fast foods, foreign language training, apparel, dry cleaning, hotels, and car rental services. Local franchises have been particularly successful in ice creams, "empanada" pastries, health clubs, and education. Significant U.S. market players include Kodak Express, McDonald's, Burger King, Blockbuster, Holiday Inn, FutureKids, and the Wall Street Institute. Recent entries of companies in services such as real estate (Re-Max, Coldwell Banker) open ro= ads for new market niches.

Franchise contracts are generally protected under the Argentine Commercial = Code as opposed to being governed by specific legislation. The scope of the serv= ice, commercial trade market/name, expertise, and shared production elements are covered by contractual obligations on both franchiser and franchisee.

Elements of the contract include: the license, methods/systems or proprieta= ry information transferred to a franchisee, the supply of needed inputs, metho= ds of sales, and quality standards, and ultimate control by franchiser of the contract elements.

Franchises have been successfully used in Argentina, but the obligations of= the franchiser must be clearly delineated in the contract to avoid legal obligations associated with the operator, in case of default, bankruptcy, e= tc. Argentine law is unclear about franchiser obligations in case of bankruptcy= or other commercial failings. Legal advice should be sought before signing contracts.

Franchise contracts are generally protected under the Argentine Commercial = Code as opposed to being governed by specific legislation. The scope of the serv= ice, commercial trade market/name, expertise, and shared production elements are covered by contractual obligations on both franchiser and franchisee.

Elements of the contract include: the license, methods/systems or proprieta= ry information transferred to a franchisee, the supply of needed inputs, metho= ds of sales, and quality standards, and ultimate control by franchiser of the contract elements.

Franchises have been successfully used in Argen= tina, but the obligations of the franchiser must be clearly delineated in the contract to avoid legal obligations associated with the operator, in case of default, bankruptcy, etc. Argentine law is unclear about franchiser obligat= ions in case of bankruptcy or other commercial failings. Legal advice should be sought before signing contracts.

Direct Marketing &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; <= span lang=3DEN style=3D'font-weight:normal'>Return to top

Due to the combination of four consecutive year= s of economic growth and rising consumption levels, direct marketing methods have renewed opportunities for development. For example, telemarketing h= as been one of the quickest growing tools for businesses to contact their clie= nts during recent years. E-commerce is becoming a part of daily life particular= ly given the higher penetration of home broadband connections. While in most cases it still repre= sents a marginal portion of total sales, e-commerce activity has grown 1000 perce= nt since 2000 in peso terms. Credit through installments (interest free installment plans) is once again seeing positive growth. Consumption paid for by credit cards increase= d 45 percent in 2006.

=
Mail order marketing is still not widespread in Argentina. Mail distribution prices remain high, while duties and other taxes to be paid on international mail order merchandise depend on the nature of the product or shipment. Obstacles that impede the development of mail orders include payment methods (the most common being credit card), and delivery, which is not clearly regulated. Other means of delivery include local messenger services.

Despite increased competition during past years and growing efficiency among postal carriers to reduce costs, leading courier companies have been greatly affected by the macroeconomic situation. Employee layoffs and salary reduct= ions have resulted as fuel costs have risen. Neverthe= less, many have incorporated new services related to e-business development and telephone sales, and have introduced logistics centers that connect the ent= ire country via satellite. <= /o:p>

Some imported products are marketed directly through cable and satellite TV programs. There are over 70 cable TV channels and cable TV penetration is estimated around 68 percent, the highest in Lat= in America, and similar to fixed telephone line penetration.=

Large = and specialized retailers, such as household appliance stores, print flyers to = lure consumers into their stores. Use of coupons has still not caught on as a successful marketing tool, as redemption rates are still low. Traditionally, companies that sell cosmetics, kitchenware, fragrances, and books have been most likely to util= ize direct marketing tools. However, the increasing use of the Internet is enab= ling other firms/sectors to penetrate the market.

Additionally, companies selling household consumer goods, electronic device= s, merchandising, books and CDs, computer hardware, tourism services, and even cars, publish their product catalogs on-line. On-line product catalogs are an increasingly used tool for Argentine companies interested in exporting prem= ium Argentine products (wine, leather products, polo gear and accessories, etc.= ).

More Argentines continue to use the Internet for two main reasons. The channel expansion allows people to connect from multiple locations such as offices,= cyber-cafes, phone booths, and education institutions.&= nbsp; Additionally, the late positive economic scenario has contributed to increasing the number of Internet home connections, particularly broadband services, which increased 90 percent since 2005. Nearly 794,000 people use broadband services. Dial-up connections dropped by 8.6 percent, while free service connections now amount to 919,000 (an 8 percent increase).

According to private surveys, the number of Internet users in Argentina reached approximately 10.3 million people in 20= 06, with pre-paid accounts increasing by 31.6 percent, according to the National Statistics Institute. B= uenos Aires City represents 47 percent of Internet clients in Argentina. Another = 23 percent is located in the Buenos Aires province and the remaining 30 percen= t is spread throughout the rest of the country.= A study from Prince & Cooke reveals t= he profile of Internet users in Argentina. For example, 60 pe= rcent of users are in the middle and lower classes, with only high-school level education, since most of them are younger than 24 years old. Half of users surf the net at leas= t once a day and Internet usage is similar for both men and women. Internet penetrati= on in the upper classes is about 98 percent and these users spend an average of t= hree hours per day online. Approximately 35 percent of homes in Argentina have a PC.

According to Prince & Cooke, e-commerce in Argentina in the business to consumer segment reached approximately US$0.73 million in 2006 (or approximately 2.2 million pesos versus 23 million pesos in 2000.) Home banking services are used by 2 million Argentines. <= /span>

E-commerce is growing at a 60 to 100 percent annual rate. However, actual sales via the Inte= rnet have not reached the same levels as in other countries, since still 60 perc= ent of Internet users (about 6 million Argentines) make purchases through traditional channels after consulting the Internet. On-line sales have a higher rate of acceptance in the interior of the country, where the supply of products is limited and delivery is a growing sales tool.

Joint Ventures/Licensing &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; <= span lang=3DEN style=3D'font-weight:normal'>Return to top

Argentine legislation permits the establishment= of temporary associations, equivalent to "joint ventures", known as = UTEs (Union Transitoria de Empresas). This is an association of two or mo= re individuals or companies that contribute assets to develop or perform a particular transaction in Argentina or outside the country using Argentina = as its base of operations. The UTE can also perform work or render services th= at are supplementary or accessory to its main purpose. UTEs (joint ventures) are not considered to be companies or legal entities in their own right. Participan= ts may be resident businesspeople, locally constituted entities, or non-reside= nt companies that have established a separate branch or other type of presence= in Argentina.

A contract must be signed and registered with the Public Commercial Registr= y at the Office of the Inspector General of Justice (Inspeccion General de Justicia) in the Federal Capital, or its provincial equivalent. The contract must contain the objective, term of duration, name and other speci= fic information regarding their partners' responsibilities, financial contribut= ion, and many other specific clauses. It must also provide for the appointment o= f a legal representative in charge of management.

See below the different forms or structures local investment can take, whet= her as a "joint venture" or wholly owned. (Also see Chapter 6: Investment Climate, for further information.)

Sellin= g to the Government &nb= sp; = &nb= sp; = &nb= sp; Return to top

Decree 472/2002 establishes that contracts in foreign currency with the public administration are to be converted to 1.40 Argentine peso for each U.S. dollar, adjustable = with the Coeficiente de Estabilizacion de Referencia (CER-Reference Stabilization Ratio). Bidding= on official government tenders requires a case-by-case analysis of the project= and government situation.

Federal government purchases are referred to as "compras y contrataciones de la Nacion". These are classified in larger categories or subsections of the expenditure budget: consumer goods (foods, textiles, office supplies, cleaning products, etc.); non-personal services (basic services, rentals, maintenance, cleaning services, technical and commercial services, advertising, traveling services, etc.); and fixed asse= ts (land, buildings, facilities, equipment, books, collectibles, artwork, intangible assets, etc.). Pub= lic service contracts, petty cash purchases, contracts with foreign governments, contracts with international public law institutions or multilateral credit organizations do not fall under these categories.

Decree 436/2000, called "Rules for Acquiring, Selling and Contracting Goods and Services for the National Government", establishes the rules applicable to federal government purchases. Resolution 515/2000 supplements this decree through a manual for describing such hiring of services. These and other regulations relate= d to federal government purchases can be found at https://www.argentinacompra.gov.ar/prod/onc/sitio= /Paginas/Contenido/FrontEnd/normativas.asp (in Spanish).

This decree applies to all federal public agencies (including autonomous or decentralized institutions), but excludes federal banks. It also establishes the amounts determining the selection process. Government purchases of less than US$35,= 000 are affected by direct invitation to bid; no tender is published. Purchases= of US$25,000 or less undergo direct purchase. Contracts under US$3,000 undergo= a simplified process and are considered petty cash expenses. Purchases of und= er US$100,000 or less may undergo private bidding, but any purchases greater t= han that amount must have an open public bidding process.

Advertising and publishing procedure terms apply regarding important contra= cts in main publications and Internet sites such as the National Contracting Office= (ONC, www.argentinacompra.gov.ar), as well as in the Official Bulletin and publications of suppliers associations. Requirements for first-time sales to the Government depend on the type of provider. Informat= ion should be submitted in writing and in the form of a diskette. Furthermore, documents should be formatted in compliance with the regulations set by the= National Contracting Office= in order to be incorporated in the Supplier Information System (SIPRO) databas= e.

The National Contracting Office (Oficina Nacional de Contrataciones - ONC) is the agency supervising procurement for the National Public Administration. This Office is part of the Under Secretariat of Budgeting, Secretariat of Treasury, Ministry of Economy.
Contact Information:
Oficina Nacional de Contrataciones (National Contracting Office)
Hipolito Yrigoyen 250, Piso 10, Of. 1001
C1086AAB Buenos Aires
Phone: (54-11)-4349-6592/79.
Fax: (54-11)-4349-6588.
E-mail: controlmcc@sgp.gov.ar
URL: www.argentinacompra.gov= .ar

A prominent NGO looking out for the interests of companies participating in national, provincial, and municipal procurements= is the Union Argentina de Proveedores del Estado (UAPE). UAPE has a database of government procurements. More information can be fou= nd at www.uape.org.ar.

Most provincial governments have their own websites with procurement information. Both the Inter-American Devel= opment Bank and the World Bank have a number of active loans in Argentina presenting procurement opportunities for U.S. companies. The U.S. Com= mercial Service in Buenos Aires publishes information about many of these opportunities and can sometimes assist in obtaining bidding documents.

Procurement = from Local Companies (Buy Local Regime)

By Law 25551 issued on November 2001 and implemented by Decree <= span lang=3DEN-US style=3D'mso-bidi-font-size:10.0pt;mso-bidi-font-family:Arial'= >1600/2002 <= span lang=3DEN-US style=3D'mso-bidi-font-size:10.0pt;mso-bidi-font-family:Arial'= >the national government established the Buy National Regime. The "Compre Trabajo Argentino" regime, affects national treatment in that it obligates all government agencies and privatized utilities to purchase dome= stic materials, goods and products, provided that the price is "reasonable" (precio razonable) and the performance= is identical or similar (idénticas o similares prestaciones) to that of the imported/foreign goods offered, as defined by regulatory Dec= ree 1600/2002 of August 28, 2002.

Preferences:

Goods: Preference will be given to domestic goods. The origin of the goods shall be determined by the nature/composition of the goods themselves, n= ot based on the nationality or ownership of the manufacturing company. Goo= ds containing imported parts shall be considered domestically produced when the value of the imported parts is no more than 40 percent of the sales value of the finished good, or when the imported product undergoes substantial transformation in country; such that the MERCOSUR tariff classification cod= e of the transformed item differs from that of the imported part.

Services: Preference will be given to bids submitted by a domestic company = or consultant.

Public Works: Preference will be given to domestic materials and to domestic services (i.e., project design, management, and construction services) as defined above.

Preferential Treatment:

In cash payment conditions, when the cost of the domestic goods is five or seven percent higher than the cost of the imported/foreign goods, the contracting party should select the domestic goods. SMEs - seven percent; o= ther companies - five percent. In the case of deregulated markets, the contracti= ng party should select the domestic goods when the value quoted is equal to or lower than that of the imported/foreign goods.

The above applies only when the domestic goods meet all the requirements set forth in the contracting documents and can fulfill the expected functions (= idénticas o similares prestaciones).

Foreign Goods:

When a bidder offers to supply foreign goods not available in country, he/s= he must guarantee "nationalization" of the goods by depositing a bon= d on behalf of the contracting party. In addition, the Secretariat of Industry, = Commerce and SMEs will issue a certificate verifying the value of the goods to be purchased abroad at the request of the contracting party, within 96 hours of receiving said request. To obtain the Certificate of Verification (Certific= ado De Verificación-CDV), the contracting party must submit a sworn statement declaring (1) that it has complied with the Compre Argentino regime, (2) the end price or value of the foreign goods, and (3) that said price or value is lower than that of domestic goods offered or that no dome= stic goods were offered.

Disputes:

Whenever the selection of imported/foreign goods is challenged, the Secretariat of Industry, Commerce and SMEs will determine whether the domes= tic goods offered in fact meet all the requirements set forth in the contracting documents and can fulfill the expected functions (idénticas o similares prestaciones) in the same manner as the imported/foreign goods selected. The Secretariat may request the advice of the National Institute of Industrial Technology (Instituto Nacional de Tecnolog&iacut= e;a Industrial-INTI) or any other body accredited by the Argentine Accreditation Organization (Organismo Argentino de Acreditación-O= AA). If the challenge fails, the challenging party pays the costs of the Secretariat's intervention; if the challenge succeeds, the bidder offering = the imported/foreign goods pays the costs.

Remaining provisions refer to announcement or advertisement requirements. Definitions:

Reasonable Price: In cash payment conditions, when the cost of the domestic goods is five or seven percent higher than the cost of the imported/foreign goods. SMEs - seven percent; other companies - five percent. In the case of deregulated markets, a domestic good is "reasonably priced" when = the value quoted is equal to or lower than that of the imported/foreign good.
Deregulated Market or Market in Competition: That which is free of tariff controls, performance controls, investment controls and/or approvals by the Federal Government.

Identical or Similar Performance: The good meets all the requirements set f= orth in the contracting documents and can fulfill the expected functions.

SMEs: Micro, Small and Medium-sized Enterprises are defined on the basis of their annual sales in Argentine pesos (excluding VAT and domestic taxes) as follows.

SIZE/SECTO= R

AGRICULTUR= E
/ LIVESTOCK

INDUSTRY &= amp; MINING

COMMERCE

SERVICES

MICRO ENTE= RPRISE

$ 150,000<= o:p>

$ 500,000<= o:p>

$ 1,000,00= 0

$ 250,000<= o:p>

SMALL ENTE= RPRISE

$ 1,000,00= 0

$ 3,000,00= 0

$ 6,000,00= 0

$ 1,800,00= 0

MEDIUM ENTERPRISE

$ 6,000,00= 0

$24,000,00= 0

$48,000,00= 0

$12,000,00= 0

Source: SEPyME Resolution 24/2001.=

Domestic Parts: Parts wholly produced with domestic materials or locally produced with imported raw materials, provided the composition, shape or structure of the latter is changed during the production or manufacturing process.

Domestic Components or Subcomponents: (1) The va= lue of the imported parts is no more than 40 percent of the "sales value"= ;, without VAT, of the component or subcomponent. (2) The component or subcomponent undergoes substantial transformation in country, such that the MERCOSUR tar= iff classification code of the transformed item differs from that of the import= ed part.
Note: the Decree says "sales value"; the Law says "gr= oss production value"

Domestic Origin Formula: RM + I + M =3D X
GPV
RM =3D Cost of the imported raw material once placed in the market.
I =3D Cost of the imported input (supplies) once placed in the market (incl= udes components and subcomponents).
M =3D Cost of the imported materials once placed in the market.
GPV =3D Gross Production Value of the good.

Input (insumos): The parts, components, or subcomponents that make up a goo= d.

Gross Production Value (of a domestic good): Cost of the domestic or foreign raw material, input, or material needed to produce the good before taxes= PLUS Cost of conversion (labor, services and other charges, exclu= ding VAT) incurred by the company to produce or sell the good PLUS Financial costs (i.e., explicit and implicit interest, monetary updates, exchange differentials) derived from using capital belonging to other than = the producing/selling company PLUS Prorated overhead costs PLUS T= he company's unit profit or mark-up.

Cost of Raw Material, Input or Material: (1) In the case of goods purchased by the domestic producer, the procurement cost plus the cost of transportation to the location where the goods will be converted or incorporated into the finished product. (2) In the case of goods imported by the domestic producer, the CIF cost plus import duties and taxes paid to pl= ace the good in the local market, except VAT, plus the cost of transportation to the location where the goods will be converted or incorporated into the finished product. (3) In the case of goods manufactur= ed by the local producer, all the costs associated with the production process, including the cost of transportation to the location where the goods will be converted or incorporated into the finished product.

Comparable Prices: Must include transportation costs to the location specif= ied in the contract.

Distribution and Sales Channels    &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;          Return to top

After = analyzing the product and its uses, and defining the potential customers, U.S. compan= ies intending to export to Argentina should identify the geographical areas whe= re the major users of the product reside. It is important to recognize that 80 percent of the Argentine population is concentrated in urban areas, with ne= arly 35 percent living in Buenos Aires city and its suburbs, and almost 10 perce= nt in the cities of Cordoba, Rosario, and Mendoza.

Segmentation is key. It is increasingly difficul= t to establish a "typical customer", due to new consumption habits and= to the dynamics of income distribution and demography.

&= nbsp;

Channel selection should be based on the nature of the product and the company's knowledge of the Argentine market. Generally, firms new to this market find= it more effective to sell through a distributor. Large firms generally buy directly= from overseas suppliers, while smaller firms prefer to buy through intermediarie= s. Industrial equipment is sold by sales agents or through trade fairs, while consumer goods are increasingly sold through large outlets such as supermarkets.

Argentine distribution channels have gained increased efficiency through merging and streamlining during the past decade, as a result of the increas= ed competition and changes in the consumer buying process that require goods t= o be delivered at lower prices and in a timely manner. (Please refer to the Reta= il Network for further details.)

War= ehouse and Distribution

Argent= ines have realized the benefits of logistics management in order to be more competitive. State-of-the-art technology plays an important role in upgrading warehouses. The introduction of "paperless" warehouses by large companies has been well received = due to its inherent advantages and the reduction of operating costs. Approximately 70 percent of Argent= ina's 1,500 warehouses and manufacturing plants are located in the Greater Buenos Aires city area. Nearly 35 pe= rcent of the population is concentrated in Greater Buenos Aires area to include t= he city of Buenos Aires.

&= nbsp;

Distri= bution in Argentina tends to be radial, with all roads converging on the Port of Buen= os Aires. This dates back to the= turn of the century when Argentina's rail and road systems were developed by the British to bring products to the Port of Buenos Aires to satisfy the foreign demand for commodities. The h= ub-oriented distribution approach used in the U.S. does not exist in Argentina as of yet. There have been signific= ant improvements in transportation infrastructure during the past decade as a result of deregulation and privatization.

&= nbsp;

Land Transportation

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Argent= ina stretches 4,000 km (2,400 mi.) from north to south, an expanse crossed by o= nly a few major highways. Argenti= na's 208,350 km road network carries 85 percent of domestic freight traffic. Argentina has 35,000 km (21,000 mi.) of railroads.

&= nbsp;

Althou= gh rail, maritime, river and air cargo services are all improving, the popular and q= uite efficient trucking industry cannot afford to run into bottlenecks in a coun= try that is experiencing increased international trade growth.

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In an = effort to relieve some of this pressure, 29 vital national corridors, encompassing al= most 10,000 km, have been privatized, with concessions for conservation and improvements of existing roads rather than construction of new ones.

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While = tolls are comparatively high, the preexisting road conditions actually made operations much more costly. However, tr= ucking has drawbacks as well. Trucks= are not inspected regularly, and many fleets use old and poorly maintained vehicles.

&= nbsp;

Riv= er and Maritime Transportation

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Almost= 70 percent of Argentina’s foreign trade is carried by ship, and about 80 percent of the import/export transactions are carried out through the ports= of Buenos Aires and La Plata. The waterways on the Parana and Uruguay rivers are well dredged and maintained.= These rivers link the port of Buen= os Aires to internal Argentine ports, as well as to Paraguay and Brazil.<= /o:p>

&= nbsp;

Port-r= ail links in Argentina are generally poor. This lack of interconnectivity is the main reason why trucking servi= ces handle the bulk of all overland freight.

&= nbsp;

Air= cargo

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In the= late 1990s, Argentina completed the world’s largest airport privatization program by selling concessions to 33 airports, which introduced significant upgrades. A recent terminal merging imports and exports in one single area = at Ezeiza International Airport in Buenos Aires is proof of this, allowing products imported under air-routed services to benefit from this service.

&= nbsp;

Terminal de Cargas Argentina (TCA) was created as a concessionary partnership established by the Argentine Government for the operation = of airfreight terminals at international airports. TCA provides full logistics and storage services to all foreign cargo agents. TCA's primary business is bonded warehouse management at the major Argentine Internationa= l Airports, where the company stores imported and exported cargo while their consignees perform all relevant formalities with the General Customs Administration or= Direcci&o= acute;n General de Aduanas (DGA). TCA's headquarters are located at Ezeiza International Airport. Additionally, the company has branches in Córdoba, Mendoza, Mar del Plata, and Jorge Newbery Domestic Airport,= in Buenos Aires City. (To see step-by-step operations at the Terminal de Cargas Argentina please click here.)

&= nbsp;

Air ca= rgo imports have been growing rapidly in the last several years. U.S. exporters shipping small items to Argentina in a short time frame may want to consider the benefits of air routed or express delivery services. U.S. products imported under air-r= outed services correspond mainly to the following sectors: pharmaceutical products; electric = power systems; computer software; computers and peripherals; telecommunications equipment; medical equipment and supplies; automotive parts and service equipment; pollution control equipment; office equipment; irrigation equipm= ent; mining supplies; construction machinery and equipment; security equipment components; industrial chemicals.

Express delivery has rapidly evolved following Argentina's liberalization of postal services and strong local and international competition. International courier delivery services are extremely active and most global express deli= very firms have significant operations in Argentina, including FedEx, DHL, and U= PS.

The Retail Netw= ork

There = are two types of traditional sales channels in Argentina. One is through large-scale retailers with a defined but limited share of the market. The other is thro= ugh the many specialized retailers that seek to protect their niches.

The food retail market is loosely separated into three categories: traditio= nal "mom and pop" stores scattered throughout local neighborhoods, self-service mini markets and drugstores, and the supermarkets and hypermarkets.

Throughout the past decade, supermarkets and hypermarkets have dominated the Argentine retailing market. (i.e. very large stores that carry products found in a supermarket as well as merchandise commonly found in a department store). Some discount stores that emerged in 1999, characterized by smaller retail space, a limited product selection, and very low prices, are reconverting into a traditional format supermarket.

Consumers prefer hyper= markets and supermarkets for practicality and convenience, particularly for monthly= or weekly purchases. Hypermarkets provide a selection of between 50,000 to 100= ,000 items and supermarkets provide between 5,000 and 15,000 items. In an effort= to become more competitive, these stores are providing additional services suc= h as film developing, dry-cleaning, and an array of new products such as toys, apparel, school supplies, and holiday decorations.

A larg= e number of mergers, acquisitions, and transfers have taken place during the last few years. This wave has impacted several industries, including apparel, housing construction, decoration materials and music. Concentration of distribution channels is expected to continue over the next few years.=

Social assis= tance and barter distribution methods appeared during the economic crisis. There are still bartering centers operating, particularly in the interior of Argentina.

Selli= ng Factors/Techniques    &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;     Return to top

The Argentine economy has been recovering remarkably since 2003 and as demonstrated by four years of consecutive growth. A combination of seve= ral factors is contributing to a rise in consumption, particularly influenced by real wage increases, a partial reentry of personal credit, and rising employment levels.

From August 2005 to 2006, shopping mall consump= tion increased by 14 percent and supermarket consumption by 13 percent. Nevertheless, the increase in consumption should be seen in the context of Argentina’s high levels = of poverty, and a significant amount of this growth coming exclusively from the upper economic classes. Accor= ding to the Statistics and Census Institute (INDEC), the current poverty rate is approximately 34 percent. The= per capita GDP in 2006 was calculated at about US$5,250.

While industrial activity, as well as consumpti= on expanded rapidly, this expansion cycle is expected to moderate since it is predicted to have reached its peak in some industry sectors, mostly due to increased costs of production. Scarce local financing and inability to access foreign credit may limit the expans= ion plans of local companies.

Some industry sectors have benefited from Argentina's devaluation through increased export competitiveness. This has presented new opportunities for = U.S. companies. This information i= s detailed in Chapter 4: Leading Sectors for U.S. Export and Investment.

For several years Argentina had the second highest GDP in Latin America and= the highest in South America. Sev= eral factors that have helped Argentina attract the attention of US companies include long life expectancy, a large middle class, and a highly literate population. U.S. companies intent on exporting to Argentina should consider economic, demographic, and cultural characteristi= cs that distinguish it from other Latin American countries.

The population and economic activity are highly concentrated in the Greater Buenos Aires area. The population is of largely European descent and contin= ues to have strong ethnic, cultural, and business ties with Europe. Consumer preferences tend to resemble those of Europeans more than those of other La= tin America nationals. However, revenues are highly dependent on MERCOSUR trade, especially with Brazil, and the regional economic situation.

In many sectors, European competitors of U.S. firms are already present in = the market, and may be well entrenched. Nevertheless, the U.S. is Argentina's second largest trading partner after Brazil, and competes with Spain for the top investment spot. Many U.S. firms have been very successful in this mark= et. The U.S. lifestyle and consumption habits are increasingly influential. U.S. products have a strong reputation for quality and technological innovation, however U.S. firms are sometimes viewed as lacking commitment to the market. It is important to be prepared for a competitive market environment before doing business in Argentina.

As in many countries, personal relationships are fundamental when doing business in Argentina. Success requires taking the time to develop a close personal relationship with the representative, agent, or distributor. Marke= ting U.S. products and services in Argentina requires a higher level of research, preparation, and involvement than marketing products domestically.

U.S. firms handicap themselves if their company’s product literature labels, manuals, and other written materials are not distributed in Spanish. When preparing Spanish-language materials, care should be taken to ensure t= he meaning is consistent for all Spanish-speaking markets in which they will be used. For example, Argentine Spanish differs from Mexican or Chilean Spanis= h, therefore unintended --and sometimes embarrassing-- meanings result when a translator is not familiar with variations in the language from market to market. Always use a professional translator, and if possible, have a native Argentine speaker, such as your agent or distributor, review any materials before using them in the Argentine market. Any official document to be presented before the Argentine government authorities that is not in Spanis= h requires attachment of an official translation into Spanish by a Sworn Public Transl= ator (Traductor Publico), as well as certification by the Translators Association.

Due to payment chain problems and virtual lack of credit as a result of the economic meltdown of 2002, price and financing terms have become more impor= tant selling factors than marketing. Purchases are concentrated in simple or critically needed products with a minimum marketing component.

In many ways, current marketing strategies seem to resemble those favored several years prior. Numerous massive consumption companies have started or= are about to re-launch old brands, product lines, glass bottles, and packaging popular in the 1980's to reduce final costs.

However, Argentine end users, who have become much more demanding and knowledgeable during the past open-import decade, will still look for a bal= ance between price, quality, and after-sales service.

Some practical tips to successfully approach Argentine consumers are the following:

·= ;      =    Appoint a representative or distributor

·= ;      =    Have Spanish language capacity in firm

·= ;      =    Furnish materials in Spanish<= /p>
·= ;      =    Have a long term outlook

·= ;      =    Personalize your approach

·= ;      =    Be consistent in attention to service and deliv= ery

·= ;      =    Provide fair credit terms

·= ;      =    Dot your I's and cross your T's (lawyers and accountants)

·= ;      =    Protect your trademarks

·= ;      =    Do not take no for an answer/ frequent visits a= nd follow-ups

Many fax numbers are both voice and fax lines. = When sending a fax to Argentina be prepared to say: &= quot;Linea de fax, por favor", when hearing an inquiring voice answering the call.

Electronic Commerce      = ;            &n= bsp;            = ;            &n= bsp;            = ;            &n= bsp; Return to top

The first wave of Internet business conceived in Argentina was mainly B2C (business to consumer) activity. These sites were essentially related to information, entertainment, and small retail service= s. The second wave in early 2000, however, entailed development and expansion = of B2B (business to business) portals.

The Argentine economic collapse, accompanied by the global Internet crisis = has had an enormous impact on local virtual communities, causing the shutdown of over 394 portals of the 484 that were on-line in 2000. Only 18.6 percent ha= ve survived. Leading sectors encompassing 60 percent of the Argentine dotcom activity include entertainment, information, and tourism. To a lesser degre= e, other sectors include financial services, health, agriculture, job search, = and real estate.

Argentina reportedly hosts 11 of the top 15 most visited Spanish-language sites. Approximately half of the 700 Internet start-up companies in Latin America are based in Argentina.

Growth of e-business will likely continue to drive change in most industrie= s. As technology transforms business processes, consulting firms are leading t= he way in setting international standards to protect electronic transactions conducted online and through wireless communications and electronic payment systems. However, there is still a generalized lack of confidence in the culture of Argentine e-consumers regarding online transactions. Although 85 percent of online retailers accept electronic transactions, only 15 percent deliver a first class electronic payment "customer experience". <= br>

According to a Boston Consulting Group report, Latin America's top 25 sites generate over 90 percent of online sales in Mexico, Brazil, and Argentina. The top 10 hold over 70 percent, and, in Argentina and Brazil, the top three hold over 70 percent of electronic sales revenues.

Trade Promotion and Advertising        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;    Return to top

An important component of the marketing-= mix is promotion. Companies are encouraged to visit or exhibit at local and regional trade shows, and to vi= sit trade shows in the U.S. attended by Argentine buyers. (See Chapter 9: Conta= cts, Market Research and Trade Events, for a list of upcoming events.)

Single Company Promotions, a trade event service offered by the U.S. Commercial Service in Buenos Aires, provides a good means for a single comp= any to launch its product, make technical presentations, or identify and cultiv= ate key market makers.

Argentina has many advertising agencies and management consultants, but only the largest firms offer complete services. The leading agencies are members= of the Argentine Association of Advertising Agencies (Asociacion Argentina = de Agencias de Publicidad). Many major U.S. advertising agencies have bran= ches or affiliates among the leading agencies.

Advertising in the print media is the most widely used method, although television, cable TV, and radio advertising are highly effective and most generally aimed at the Buenos

Aires market. Many daily newspapers are published in Buenos Aires city, including "Clarin", "La Nacion&quo= t;, and "Ambito Financiero". Industry-focused publications are= an effective mechanism for advertising.

Internet advertising, though in its beginning stages, is growing in popular= ity and use among advertising firms.

Major Daily Newspapers:

AMBITO FINANCIERO
Av. Paseo Colon 1196
C1063ACY Buenos Aires
Phone: (5411) 4349-1500
Fax: (5411) 4349-1505
E-mail: redaccion@ambito.com; <= /span>publicidad@ambito.com.ar

URL: www.ambitoweb.com<= /span>

Established: 1976
Frequency: Daily, except Saturday & Sunday
Circulation: 75,000

BUENOS AIRES ECONOMICO
F.J.S.M. de Oro 1744 3P.
C1414 DBB Buenos Aires
Phone: (5411) 4011-1200
Fax (5411) 4011-1237
E-mail: info@baedigital.com.ar
URL: www.infobae.com
Established: 1997
Frequency: Daily, except Saturday & Sunday

BUENOS AIRES HERALD NEWS
Azopardo 455
C1107ADE Buenos Aires
Phone: (54-11) 4342-8476/77/78
Fax: (54-11) 4334-7917
Contact: Drey Spaulding
E-mail: info@buenosherald.com =
URL: www.buenosairesherald.co= m
Advertising: adv@buenosairesherald.com
Established: 1876
Frequency: Daily
Comment: English-language newspaper.

CLARIN
Tacuari 1842
C1139AAN Buenos Aires
Phone: (5411) 4309-7500
Fax: (5411) 4309-7319
E-mail: clasificados@cl= aringlobal.com.ar
URL: www.clarin.com.ar
Established: 1945
Frequency: Daily
Circulation: 780,000 (1 million Sunday circulation)

CRONICA
Av. Juan de Garay 140
C1063ABO Buenos Aires
Phone: (5411) 4361-1001/1051
Fax: (5411) 4361-4237
E-mail: editor@cronica.com.ar =
Established: 1963
Frequency: Daily
Circulation: N/A
Comment: Published by Editorial Sarmiento S.A.

EL CRONISTA
Honduras 5663
C1414BNE Buenos Aires
Phone: (5411) 4778-6789
Fax: (5411) 4775-0531
E-mail: publicidad@cronista.com<= /a>
URL: www.cronista.com
Established: 1908
Frequency: Daily
Circulation: 68,000

LA NACION
Bouchard 557
(1106) Buenos Aires
Phone: (5411) 4319-1600
Fax: (5411) 4319-1611/2
E-mail: diario@lanacion.com.ar
URL: www.lanacion.com.ar
Established: 1870
Frequency: Daily
Circulation: 250,000 (300,000 Sunday circulation)

LA RAZON
Rio Cuarto 1242
C1168AFF Buenos Aires
Phone: (5411) 4309-6000
Fax: (5411) 4309-6000, ext. 3
E-mail: lcantero@lazon.com.ar<= br> URL: www.larazon.com.ar
Established: 1992
Frequency: Daily
Circulation: N/A
Comment: Afternoon paper

PAGINA/12
Av. Belgrano 673
(C092AAG) Buenos Aires
Phone: (5411) 4334-2323
URL: www.pagina12.com.ar <= /o:p>

Circulation: 25,000

PERFIL

Chacabuco 253
(C1069AAE) Buenos Aires
Phone: (5411) 4341-9000
URL: www.perfil.com

Circulation: 65,000

LA PRENSA

Azopardo 715 (C1107ADK)

Phone: (5411) 4349-1000
URL: www.laprensa.com.ar
Established: 1869

Circulation: 5,000

Business Magazines:

APERTURA
Av. de Mayo 605, Piso 3
C1084AAB Buenos Aires
Phone: (5411) 4331-6505
Fax: (5411) 4331-5208
E-mail: cartas@apertura.com
URL: www.apertura.com
Established: 1983
Frequency: Every two months
Circulation: 18,000
Comments: Published by Mind Opener S.A.

MERCADO
Av. Rivadavia 877, Piso 2
C1002AAG Buenos Aires
Phone/Fax: (5411) 4346-9400
Email: info@mercado.com.ar
URL: www.mercado.com.ar
Established: 1969
Frequency: Monthly
Circulation: N/A
Comments: Published by Coyuntura S.A.

NEGOCIOS
Azopardo 579
C1107ADG Buenos Aires
Phone: (54-11) 4331-4591
Fax: (54-11) 4346-0202
E-mail: negocios@atlantida.com= .ar
URL: www.negocios.com.ar
Established: 1991
Frequency: monthly
Circulation: N/A
Comments: Published by Editorial Atlantida S.A.

The public and private sectors operate radio and television stations. Argen= tina has 46 television broadcasting stations, 180 relay stations, and about 1600 closed-circuit TV systems. Some eight million TV sets are in use, with a potential audience of about 21 million. Argentina has 170 AM stations and 2= 000 FM radio stations. Nearly 12 million radio sets are in use, with an estimat= ed weekly listener audience of 21 million. In addition, 200 cable companies op= erate throughout the country.

Services Offered by the U.S. Commercial Service Argentina

The U.S. Commercial Service Argenti= na (CSA) offers the services described below to assist exporters of U.S. goods= and services in doing business in Argentina:

Customized Market Research: = We provide customized market research for companies wishing to have specific questions answered such as: the overall marketability of a product or service; market trends and size, customary distribution and promotion practices; market entry requirements; regulations; product standa= rds and registration; key competitors, and potential agents, distributors, or strategic partners. You have the flexibility to design your own question(s). Price is depende= nt on level of detail, availability of information, and time required to conduct the research. The average cost ranges from US$250-$1,500, and will be quoted to the company prior to providing the service. We will normally provide the information requested in two to ten business days.

Customized Contact List:= Using a varie= ty of resources, including in-country databases and local expertise, we will prep= are a customized list of Argentine companies in the sector of your choice. This list will contain company name, address, phone/fax numbers, a contact name, e-mail address, web site, and a description of the firm and products/servic= es offered. We will provide the list within two= to ten business days from receipt of notification from the pertinent U.S. Expo= rt Assistance Center that the $250 fee has been paid.

International Partner Search: We will conduct a pre-screened search to identify up to five qualified potential representatives, distributors, licensees, franchisees, = or other strategic partners interested in your product or service. The preferred method for showing y= our products and company information to Argentine firms is your web site or electronic catalog/brochure. = If a web site or electronic catalog is not available, we will require 20 sets of product literature. The cost for this service is US$500; turnaround time is 30 business days.<= /o:p>

Gold Key Matching Service: This service allows U.S. firms to efficiently and effectively travel to Buenos Aires for face-to-face meetings with potential business partners. We will prepare a customized schedule of appointments with pre-screened potential agents, distributors, or other business contacts, according to your needs. The cost for= this service is $685 the first day, $320 each additional day of appointments. Six we= eks advance notice is required. <= o:p>

Video Gold Key Matching Service (VGK):= The VGK offers all the advantages of the Gold Key Service (GKS), without the expense of travel. We will arrange for pre-screened potential agents, distributors, or other business contacts to come to our offices for video meetings. T= he service includes at least three quality meetings with pre-screened potential Argentine firms, up to four hours of video interaction (including a briefing with Commercial Service staff). Please contact us for price and payment met= hod.

Platinum Key Service: This service is intended for U.S. firms active in a key indust= ry sector, involved in bidding on a major project, or seeking commercial intelligence to achieve their business goals. A senior staff member will actively monitor and seek out information and intelligence in your area of interest. You will receive up-to-the-minute privileged market intelligence, trade leads, insights and major projects news or developments. These report= s, via e-mail or through confidential periodical telephone or videoconferences with the Embassy Commercial Specialist, will discuss political, strategic, financial and competitive developments in your firm's sector or in any numb= er of specific projects in Argentina. In short, you can now access the perfect= tool to know --or double check-- what your foreign competitors, colleagues, customers, private and government clients are doing and how it affects your competitive position. This on= going service is available for six months, one year, or a specified timeframe bas= ed on the mutually agreed-upon scope of work.= Price will be quoted prior to initiation of service.

Business Facilitation Service: CS Argentina provides low-cost logistical and administrative support to its U.S. clients to facilitate insertion in this market. This may include pick-up and delivery of bid documents, single company promotions, providing information on foreign government tenders, videoconferencing facilities, courier services, invitations to targeted members of the local business community, and/or targeted commercial presentations. Price will be quoted prior to providing the service.

Payment Methods: If you would like to order any of the services described abo= ve, please provide your American Express, Discover, MasterCard, or Visa credit = card information, so we may start working on your request immediately. Please indicate credit card type a= nd number, holder name, and card expiration date. Our telephone number is 54-11-5777= -4753, our fax number is 54-11-5777-4203; our e-mail address is Buenos.Aires.Office.Box@mail.doc.gov

=

Please keep in mind that to qualify= for U.S. Government assistance your product/service must have at least 51 perce= nt U.S. content.&= nbsp; We would appreciate your confirming that your product or service mee= ts this requirement when ordering any of our services.

In addition, we encourage you to contact the nearest U.S. Department of Commerce Export Assistance Center, w= here trade specialists can provide you with guidance on entering the Argentine or other international markets. = Please call 1-800-USA-TRADE (1-800-872-8723) to locate the one nearest you or visit the U.S. Government Export Portal at http://www.buyusa.gov/home/us.h= tml.

=

= MONEY BACK GUARANTEE:

= The success of your ventures in Argentina is important to us. We are committed to providing time= ly and quality service. If you are n= ot satisfied with the quality of our work, we will gladly refund your money.

Pricing           &nb= sp;            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;         Return to top

Customized services and products can s= till charge price premiums demanded by the high end of the population in certain geographical areas. Even though Argentina has been traditionally characteri= zed by high prices, high costs, and relatively low competitive pressures due to highly concentrated markets, particularly during the past few years, exchan= ge rate comparisons, relative prices and a decreased purchasing power have tra= nslated into an decline in domestic demand particularly affecting the middle and lower classes.&nb= sp; While consumption is now on the rise triggered by expenditures by the middle-high and high population classes, as well as tourists, Argentine products are more economically priced than a decade ago. A prime example, Buenos Aires, traditionally ranked as one of the most expensive cities in t= he world and now is one of the most inexpensive cities for tourists.

Inflat= ion for 2005 reached 12.3 percent. As a result, the government initiated a voluntary price freeze agreement asking retailers and suppliers to freeze and/or cut prices. By the end of 2006, inflation had decreased to 9.8 percent.

In order to compete locally, U.S. exporters should take into account that loca= lly manufactured products, though mostly of inferior quality, have become more competitive in terms of pricing due to reduced labor costs. Due to the peso= 's devaluation, imports have become almost three times more expensive since 20= 02. Additionally, U.S. exporters should consider that virtually no trade financ= e is available for potential importers, although some firms have access to offsh= ore dollar accounts. Since foreign exchange controls have been lifted, purchases are more often made with cash upfront.

For information on import costs, please refer to the cost breakdown example in Chapter 5: Trade Regulations and Standards.

Sales Service/Customer Suppo= rt        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;     Return to top

Customer service is becoming a differentiating factor when selling a product. Argentine consumers are payi= ng increased attention to home delivery and after-sales service, emphasized by= a need to repair and maintain existing equipment and machinery, rather than replacing it with new imports. Therefore, the availability of spare parts a= nd maintenance services are particularly important for electronic equipment, w= hile capital goods are a plus for entering and serving this market.

Protecting Your Intellectual Property      = ;            &n= bsp;            = ;             <= /span>Return to top

Argentina remains open to foreign investment. However, continuing le= gal uncertainties surrounding creditor, contract and property rights in Argenti= na, and the changing regulatory environment, have diminished the country’s attractiveness for foreign investors, at least in the short term.

The g= overnment of Argentina adheres to most treaties and international agreements on intellectual property and belongs to the World Intellectual Property Organization (WIPO) and the World Trade Organization (WTO). The Argentine Congress ratified the Uruguay Round agreements, including the provisions on intellectual property, in Law 24425 on January 5, 1995.

While intellectu= al property protection in Argentina has improved in recent years, enforcement = is uneven. This is part= icularly the case for pharmaceuticals, which has been a highly contentious bilateral issue.

It is strongly recommended that a local attorney review any agreements before they are signed. (To have legal standing in Argentina, documents must be either written in Spanish or translated by a S= worn Public Translator. Be sure the Spanish and English versions of any document= are carefully reviewed for concordance, so that both parties fully understand t= he content)

See Chapter 6: Investment Climate – for a complete report on Protection of Property Rights.

Due Diligence            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;         Return to top

Companies interested in the Argenti= ne market should always conduct their own due diligence before entering into business ventures or other commercial arrangements. The U.S. Commercial Service in Bue= nos Aires has discontinued the International Company Profile (ICP) service base= d on availability of adequate commercial information and financial reporting at a reasonable cost from the private sector.&n= bsp; However, there is a list of firms in the U.S. and in Argentina that provide due diligence reports on foreign companies (Please refer to Chapter= 9: Contacts, Market Research and Trade Events). The U.S Commercial Service in Buen= os Aires does not endorse or recommend these firms, but will provide the list = only to assist U.S. companies identify commercial reporting firms on Argentine companies.

Local Professio= nal Services      = ;            &n= bsp;            = ;            &n= bsp;            = ;    Return to top

Market Research

While demand for consulting services has grown = at an accelerated pace over the last decade, to remain competitive, accounting firms have shifted resources into consulting services to help global clients understand and improve their business performance. In this sense, most consulting firms in the country have created, and in some cases expanded, t= heir market research departments.

U.S. consulting firms with local subsidiaries, as well as major local playe= rs, provide a wide scope of business solutions that include IT consulting, tax work, and M&A due-diligence, and usually offer competitive intelligence (market research) as part of their seamless business solutions. (A brief li= st of consulting and market research firms is available in Chapter 9: Contacts, Market Research and Trade Events.)

The U.S. Commercial Service in Buenos Aires prepares Industry Sector Analys= is (ISA) and other market research reports on an ongoing basis. Industry Highlights reports on best prospect sectors are available on the websit= e at = U.S. Commercial Service in Buenos Aires (See also Chapter 9: Contacts, Market Research and Trade Events for a list of available reports).

In addition, as mentioned above, The U.S. Commercial Service in Buenos Aires offers Customized Market Research (CMR) to U.S. companies seeking assistance in answe= ring questions regarding the Argentine market (please refer to “Services Offered by the U.S. Commercial Service Argentin= a“ above for detailed information regarding this program).

Web Resources            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;      Return to top

For additio= nal information and useful links please visit the following websites:

=

U.S. Commer= cial Service - Argentina

www.BuyUSA.gov/a= rgentina/en

=

The American Chamber of Commerce in Argentina

www.amchamar.com.ar

Importers and Exporters Association (Asociaci&o= acute;n de Importadores y Exportadores) (Spanish)

http://www.aiera.org/

Cámara de Importadores de la Repúbli= ca Argentina (Spanish)

http://www.cira.org.ar/

Cámara Argentina de Comercio (Spanish)

http://www.cac.com.ar/

U.S. Chamber of Commerce

http://www.usc= hamber.com/default.htm

Return to table of contents<= /a>

Return to table of= contents

Chapter 5: Trade Regulations and Standards

Import Tariffs

Trade Barriers

Import Requirements and Documentat= ion

U.S. Export Controls

Temporary Entry

Labeling and Marking Requirements<= /a>

Prohibited and Restricted Import= s

Customs Regulations and Contact I= nformation

Standards

Trade Agreements<= /li>
Web Resources

Import Tariffs = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Since January 1, 1992, the Argentine tariff classification system --Harmonized Schedule (HS)-- has been used to specify tariff classifications. The HS was implemented on January = 1, 1992 and is aligned with the WTO Customs Classification Code adopted in 197= 9.

On January 1, 1995, Argentina imple= mented the MERCOSUR Common Nomenclature, known as the Nomenclatura Comun del MERCOSUR (NCM), which is consistent with the U.S. Harmonized System for tariff classification.

Ad-va= lorem duties are assessed on the CIF (Cost+Insurance+Freight) value of the imported merchandise (at the Argentine port or airport of entry). The average tariff is approximately 13.7 percent.

Specific duties are applied to certain products, and are expressed in monetary terms per unit of measurement. A combination of both ad-valorem a= nd specific duties ("mixed duties") is used in some cases.

Minimum Specific Duties (DIEM)

The application of minimum specific duties (DIE= M) was initially enforced in December 1995 to protect domestic industry. DIEM applies to the following prod= ucts:

Textiles and apparel classified under Chapters 51 to 63, until December 31, 2007.

Other footwear until December 31, 2007.

Toys, classified under Chapter 95 of the MERCOSUR Tariff Schedule until Dece= mber 31, 2007.

Average Tariff Rates by Type of Products

According to the MERCOSUR Common Nomenclature, these are the average tariff rates for some of the Chapters*:=

Chapter 1: Live Animals; Animal Products: 2.5% ad-valore= m;

Chapter 28: Inorganic chemicals; or= ganic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes: 5% ad-valorem;

Chapter 31, Fertilizers 2.8% ad-val= orem;
Chapter 38, Miscellaneous chemical products: 10.2%;

Chapter 39, Plastics and articles t= hereof: 14.7% ad-valorem;
Chapter 48, Paper and paperboard; articles of paper pulp, of paper or of paperboard: 14% ad-valorem;
Chapter 49, Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans: 6.4% ad-valorem;

Chapter 61, Articles of apparel and clothing accessories, knitted or crocheted: 20% ad-valorem;

Chapter 62, Articles of apparel and clothing accessories, not knitted or crocheted: 20%;

Chapte= r 70, Glass and glassware: 12.4% ad-valorem;
Chapter 94, Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated sign illuminated nameplates and the like; prefabricated buildings: 17.8% ad-valorem;
Chapter 95, Toys, games and sports requisites; parts and accessories thereo= f: 19.8% ad-valorem.

&= nbsp;

*Tariff rates provided by AFIP (Federal Public Revenue Administration), corresponding to import duties applied by Argentina to products imported from non-MERCOSUR countries.

Minimum Import Prices<= /span>

In May 2001, the Government of Argentina (GoA) <= span lang=3DEN-US style=3D'mso-bidi-font-size:10.0pt;mso-bidi-font-family:Arial'= >introduced minimum import prices/reference values on several products covered by speci= fic HS codes to avoid under-invoicing. When there is a difference between the minimum import price and the declared value at Customs, the importer must make a deposit for taxes due on the price differential to take merchandise out of customs. This deposit will be held during t= he period of investigation on the "real/market" import price. These minimum import prices apply = when goods are imported for consumption.

In determining the minimum import price, Argent= ine Customs takes into consideration information derived from:

Argentine Customs records on goods imported for consumption
Available public and private databases
Services of specialized firms hired to that effect

In 2005, in an attempt to continue adjusting mechanisms against fiscal evasion= in import operations, the GoA issued Resolutions 1907 and 1908. These regulations created a new sy= stem to determine reference import values (“valores criterio”) for products to be compared with the value declared at Customs by the impor= ter, and impose stricter conditions to import when the declared unitary FOB value represents less than eighty percent (80%) of the reference value. In these cases, the import process= will continue, but the importer will bear additional restrictions such as:<= /o:p>

§ Increase on Valued Added Tax (VAT) and Income Tax paid on imports, reaching 21% and 11% respectively, depending on the type of product.=

Loss of tax benefits= such as exemption or deferment of VAT and Income Tax payments.
Perception of a guar= antee equivalent to the difference between the reference value and the decla= red value. Deposit/guarantee policies are no longer accepted for these cases. Only cash, bank collaterals, = or public debt bonds will act as a guarantee to allow the import transact= ion.

At the same time, the Argentine Customs Bureau recently announced that there would= be specific Customs checkpoints, which will control imports of certain types of product categories such as textiles, apparel, footwear and toys. These items are traditionally the = most affected.

For a complete list of the U.S.-made products f= or which minimum import prices have been established, please contact the U.S. Commercial Service Buenos Aires at Buenos.Aires.Office.Bo= x@mail.doc.gov.

Trade Barriers = &nb= sp; = &nb= sp; = &nb= sp; Return to top

The basic legislation affecting import and export transactions is contained in = the Customs Code (Law 22,415), which came into force in September 1981, and has been modified and complemented several times through subsequent laws, resol= utions and other regulations.

In the 1990s, the GoA eliminated most non-tariff barriers (through government procurement and investment regime reform) and specific duties, and made maj= or progress in reducing traditional border barriers (such as tariffs and import licensing). Trade was opened = to all potential exporters and importers, making Argentina one of the most open economies in the world.

In the year following the January 2002 collapse of Argentina’s currency board, a 70 percent nominal devaluation of the peso led to a 56 percent dro= p in imports and a three percent decline in exports (the latter due to general post-crisis uncertainty and lack of financing). Since that time, the nation’s exchange rate policy has been based on a managed float, targeting a nominal exchange rate in the ARP 3 per U.S. dollar range. Market analysts consider the peso’s real exchange rate broadly undervalued, a factor that (along with historically high global commodity prices) has contributed to a significant increase in the volume and value of Argentine exports. 2005 Argentine world= wide goods and services exports totaled $46.2 billion, up an accumulated 58.8 percent since 2002.

In 2006, there has been a significant increase in regulation of goods and capi= tal flows by the GOA. The most significant changes include product-specific export restrictions; variation= s in tariffs on key export commodities; the extension of an Argentina/Brazil automotive managed trade regime that had been due to expire in 2006; the implementation of government-promoted private sector agreements to limit intra-MERCOSUR trade in sensitive sectors including textiles and shoes; and more extensive regulations of capital movement.

There are currently no restrictions= on cash withdrawals from local bank accounts, or payment delays for the releas= e of foreign exchange. Foreign companies are allowed to send profits abroad. Export proceeds, on the other hand, still must be repatriated to Argentina.&nb= sp; Repatriation deadlines vary based on product categories, and eventua= lly could become more flexible as the economy continues to evolve favorably.

Companies located in Argentina wishing to import must be registered in the National Registry of Importers and Exporters. Registration is free of charge and procedures are relatively simple.=

Antidumping and Countervailing Measures<= /b>

Regulations define "dumping" to exist when the export price of imported merchandise is lower than the comparable sales price in normal commercial operations of identical or similar goods d= estined for consumption in the domestic market of the country of origin.=

Imported goods for consumption that bene= fit from a subsidy abroad may also be subject to a compensatory duty when they cause, or threaten to cause, serious damage or delay to the commencement of= a productive activity in Argentina. Argentine fair trade laws are base= d on Article VI of the WTO under Resolutions 281/97 and 622/95.

Argentina has set antidumping and countervailing measures at various opportunities, some of which still remain currently in force.

<= span lang=3DEN-US style=3D'font-size:11.0pt;mso-bidi-font-size:12.0pt;font-famil= y:"Arial","sans-serif"'>Tariff Barriers

MERCOSUR (Common Market of the South), created in 1991, gradually eliminated almost all non-tariff restrictions and other limitations to trade among its members (Argentina, Brazil, Paraguay a= nd Uruguay). As of 2006, over 99= % of all MERCOSUR tariff lines had been reduced to zero. Sugar has not yet been incorporate= d into MERCOSUR’s internal free trade regime, and certain other products suc= h as autos and auto parts, while officially incorporated, are actively managed, = including by the use of quantitative restrictions.

For countries outside the MERCOSUR = area, Argentina and its MERCOSUR partners established the MERCOSUR common external tariff (CET) on January 1, 1995. The CET currently ranges from zero to 20 percent for most products.<= span style=3D'mso-spacerun:yes'> However, some products in the auto= motive sector can reach 35 percent.

There is a list of sensitive products temporari= ly exempted from the CET. The fi= rst group includes very sensitive products such as Information Technology and Capital Goods.&= nbsp; At the same time, the MERCOSUR countries can set an import du= ty different from the CET until December 31, 2008 for specific products, using= the so-called Exceptions List (pursuant to Decision 38/05 CMC MERCOSUR). The list of exempted products may = be obtained from the U.S. Commercial Service in Buenos Aires (Buenos.Aires.Office.Bo= x@mail.doc.gov).

= ;

The CET for capital goods was implemented on December 30, 2000 for Argentina, and was fixed = at 14 percent. However, the Argentine Government negotiated with MERCOSUR members and applied a zero percent import d= uty for capital goods produced in non-MERCOSUR countries (Resolution 8/2001 by = the Ministry of Economy). The exc= eption will remain in effect until January 1, 2009. A list of capital goods under this regime may be obtained from the U.S. Commercial Service in Buenos Ai= res (Buenos.Aires.Of= fice.Box@mail.doc.gov).

Information and telecommunications-related (IT) products are regulated by a separate tariff sch= edule, which expires on December 31, 2007. After this date all import = duties will begin to converge among MERCOSUR members according to a fixed schedule. Additionally, Decision 39/05 CMC MERCOSUR asks for revision of the CET for information and telecommunication-related products that must be applied starting January 1, 2009. Duty levels for IT products may be obtained from the U.S. Commercial Service in Buenos Aires (Bu= enos.Aires.Office.Box@mail.doc.gov).

Also, some goods not produced within MERCOSUR such as newsprint and books, and certain petroleum products pay zero percent import duties.

The tariffs on imports apply to the declared CIF (Cost + Insurance + Freight) value in Argentina. In addition to the tariffs, the following fees and taxes are applied:

0.5 percent statistics fee on the CIF value, with some exceptions. This fe= e is not levied on MERCOSUR intra-zone trade.

<= /o:p>

21 or 10.5 percent (depending upon the product) of Value Added Tax (VAT) = on the CIF value plus tariff plus statistics fee.

<= /o:p>

10 or 5.5 percent (depending upon the product) of advanced VAT on CIF plus tariff and statistics fee on all goods imported for resale. Goods impo= rted directly by end-users are exempted.

<= /o:p>

3 percent anticipated profits tax on all retail goods, except for goods imported directly by users. Individuals pay 11 percent.

The CIF value plus the duty and the import statistics fee form the base for the application of domestic taxes. For this reason, imports must be supported by the foreign supplier's invoice. VAT and Profits Tax are deduct= ible from gross income tax.

Domestic taxes (i.e. excise taxes) are levied on tobacco, alcoholic beverages, soft drinks, syrups, extracts and concentrate= s, television sets, tape recorders, record players, and microwave appliances, among other products. Excise = taxes are paid on the basis of sworn returns or through stamps affixed to the product. Rates vary considera= bly, reaching up to 60 percent of the retail price in the case of cigarettes.

Decree 690/2002 specifies exceptions to the payment of the statistics fee, which include:

Certain imported goods for animal or vegetable reproduction, which pay a zero percent CET.

<= /o:p>

Certain imported mineral products that pay zero percent CET.

<= /o:p>

Imported books, brochures, and newsprints.

New imported capital and information and telecommunications-related goods.=

<= /o:p>

Goods imported under the temporary import regime

Import Duties on Capital and Consumer Products<= /span>

The GoA has reduced the import duty for a broad range of new capital goods to zero percent. Products classified under approxim= ately 700 harmonized system numbers were affected by this reduction. Most of these goods fall under cha= pters 84, 85, 86, 87, 89, 90 and 94. This reduction applies only to imports of new equipment.

In Mar= ch 2002, the Argentine Government (GOA) lowered import duties on many consumer products. The new duties rang= e from 12 to 22 percent. The approximately 1,500 harmonized system codes affected include meat, milk, edible oils, canned tomatoes, canned meat, canned fish, juices, fruits, alcoholic drinks, tobacco, wood products, apparel, textiles= and footwear, as well as household appliances such as vacuum cleaners, freezers, shavers, stereos, and telephones. Consumer goods represented 16 percent of all products imported by Argentina during the third quarter of 2006.

For a complete list of products affected by the= se regulations contact the U.S. Commercial Service in Buenos Aires at Buenos.Aires.Office.Bo= x@mail.doc.gov.

Illustrative Study of Direct Import Costs<= /span>

(In U.S. dollars)

A-     The following example illustrates the import of industrial furnaces or ovens (HS 8417.10.10) by a private company, for resale. Imports of capital goods benefit from a reduction on import duties as well as on the VAT rate.

FOB Base Price

US$10,000.= 00

Freight *

8%

US$ 800.00=

Insurance *

1%

US$ 108.00=

CIF =3D Dutiable Base

US$ 10,908=

Import Duty

0%

US$ 0=

Statistics Fee

0%

US$ 0=

SUBTOTAL

US$ 0=

VAT Dutiable Base

US$ 10,908=

VAT

10.5%

US$ 1,145.= 34

VAT (additional)

5%

US$ 545.40=

Profits Tax (advance)

3%

US$ 327.24=

SUBTOTAL

US$2,017.9= 8

Total after taxes

US$ 12,926=

Port Costs (on CIF) * **

6%

US$ 791.92=

Customs Broker Fees (on CIF) * **<= /span>

1.5%

US$ 197.98=

Bank Charges (on FOB) * ** ***

2%

US$ 242.00=

SUBTOTAL

US$1,231.9= 0

LANDED COST

US$14,158<= o:p>

Notes:=

* Average. Actual costs depend on type of merchandise, mode of transportation, and the value/weight or volume ratio. Please consult a freight forwarder, an insurance company, a port terminal, = or a customs broker for exact costs.
** These amounts include 21 percent VAT (Value Added Tax), charged on these services.

*** Bank charges assume letter of credit.<= /o:p>

Please note that VAT and Profits Tax are deduct= ible from gross income tax.

B-     The following example illustrates the import of plastic furniture (HS 9403.70.00) by a private company, for resale. High imp= ort duties are applied to imports of consumer products.

FOB Base Price

US$10,000.= 00

Freight *

8%

US$ 800.00=

Insurance *

1%

US$ 108.00=

CIF =3D Dutiable Base

US$ 10,908=

Import Duty (DIE)

19.5%

US$ 2,127.= 06

Statistics Fee

0.5%

US$ 54.54<= o:p>

SUBTOTAL

US$ 2,181.= 60

VAT Dutiable Base

US$ 13,089=

VAT

21%

US$ 2,748.= 81

VAT (additional)

10%

US$1,308.9= 0

Profits Tax (advance)

3%

US$392.69<= o:p>

SUBTOTAL

US$4,450.3= 9

Total after taxes

US$ 17,540=

Port Costs (on CIF) * **

6%

US$ 791.92=

Customs Broker Fees (on CIF) * **<= /span>

1.5%

US$ 197.98=

Bank Charges (on FOB) * ** ***

2%

US$ 242.00=

SUBTOTAL

US$1,231.9= 0

LANDED COST

US$ 18,772=

Notes:=

* Average. Actual costs depend on type of merchandise, mode of transportation, and the value/weight or volume ratio. Please consult a freight forwarder, an insurance company, a port terminal, = or a customs broker for exact costs.
** These amounts include 21 percent VAT (Value Added Tax), charged on these services.
*** Bank charges assume letter of credit.

Please note that VAT and Profits Tax are deduct= ible from gross income tax.

The following offices draft customs rules, regulations and tariffs:

National Tax Bureau, Ministry of Economy:

Direccion Nacional de Impuestos
Ministerio de Economia
Hipólito Yrigoyen 250, Piso 9, Of. 903
(C1109ADA) Buenos Aires, Argentina
Tel: (54-11) 4349-6968/70
Fax: (54-11) 4349-6965
Contact: Dr. Eduardo Carbone, National Director E-mail: pmagli@mecon.gov.ar

Technical Administration, Argentine Customs Bureau:

Subdireccion General Técnico Legal Aduanera
Dirección General de Aduanas (DGA)
Administración Federal de Ingresos Públicos - AFIP
Azopardo 350, Piso 2
C1107ADD Buenos Aires, Argentina
Phone: (54-11) 4338-6736 / 6738
Fax: (54-11) 4338-6739
URL: www.afip.gov.ar
Contact: Dra. María Silvina Tirabassi, Deputy Director General for Customs
E-mail: mtirabassi@afip.gov.ar

<= span lang=3DEN-US style=3D'font-size:11.0pt;mso-bidi-font-size:12.0pt;font-famil= y:"Arial","sans-serif"'>Non-Tariff Barriers

Generally, there are no preliminary requirements for imports, and document requirements have been simplified substantially in the past decade. However, certain types of goods may only be imported into Argentina with a permit from the pertinent authority. In addition, Governme= nt officials have used phytosanitary rules, safeguard measures involving speci= fic duties, anti-dumping investigations and other practices to inhibit imports = and protect domestic industry. Argentina continues to delay issuance of health certificates that wo= uld allow the resumption of exports of poultry meat and products from the United States; Argentina imposes a number of trade restrictions, including safegua= rd provisions on Brazilian color televisions; Argentina currently imposes anti-dumping duties on imports of U.S. polyvinyl chloride; and in 2005, the government imposed new non-automatic licenses on toys (Resolution 485/2005), requiring importers to obtain a certificate reviewed by three different off= ices in the Secretariat of Industry.

Prior government approval is required for impor= ts of sensitive goods such as pharmaceuticals, foodstuffs, insecticides, veterinary products, medical devices, and defense materials, cosmetics and toiletries, and others. Many = such products are subject to registration, presentation of a sanitary certificate issued by a competent authority in the exporting country or other requisite= s to protect human, animal or plant health.&nbs= p; Also certain type of special vehicles, publications, shoes, carpets, paper and automobiles to be used as prototypes require prior government approval to be imported into Argentina.

Many food-related and agricultural imports, suc= h as livestock, plants, bulbs, cuttings, rhizomes, roots, grains, and plant products, require a sanitary certificate issued by a competent authority in= the exporting country. Products destined for human consumption must fulfill certain specifications and be labeled and packed accordingly.

In addition, certain sensitive products must be imported through specifically identified customs points of entry. Such products include drugs, medic= ines, vines and their parts for experiment or research purposes, and cotton fiber= and seeds.

Quotas

The quota sy= stem and the special regime for auto parts imports constitute a major non-tariff barrier in the automotive industry. The bilateral auto agreement between Arg= entina and Brazil establishes preferential market access treatment for both countries to protect the MERCOSUR automobile industry. A complicated system of reciprocal obligations exists between Argentina and Brazil. Currently, there is a trade-balanc= ing scheme that determines import levels for auto assemblers. The Argentine government separatel= y sets annual quotas for official distributors of foreign cars and auto dealers, as well as for other firms and individuals.&n= bsp; Foreign auto manufacturers (including U.S. firms) in MERCOSUR countr= ies receive national treatment.

In addition,= temporary quotas exist on organic chemicals with MERC= OSUR HS code 2915.90.21 and fluoride of aluminum (2826.12.00), affecting = U.S. exports.

<= /o:p>

For further details on products affected by quotas contact the U.S. Commercial Service = in Buenos Aires at Buenos.Aires.Office.Bo= x@mail.doc.gov.

Import Requirements and Documen= tation        &= nbsp;           &nbs= p;            &= nbsp; Return to top

Import Licenses

On February 8, 1999, the Argentine Government implemented an automatic import license regime. Pursuant to resolution MEOSP 17/99, later modified numerous times, the Government of Argentina requires the presentation of an import license (Licencia Automatica de Importacion - LAPI) for the purpose of customs clearance. This measure was designed to provi= de Argentine customs officials with a lead-time to identify potential problems (i.e., possible under-invoicing or other unfair trade practices) and to obt= ain data about sensitive sectors.

While a subsequent resolution is required for a= ny specific tariff line, most products are potentially subject to automatic licensing. The following are exemptions to this regulation (Resolution SICM 150/1999):=

Import transactions of less than FOB US$800

Goods imported under the "Postal Regime"

Goods imported under the "Sample Regime"

Goods imported under the "Automotive Industry Regime" to be includ= ed in a production process

Goods covered by Decree 732/72 "Science, Art, Technical and Human Health", and donations covered by Law 23.871, Article 17.<= span lang=3DEN-US style=3D'mso-bidi-font-family:Arial'>

If you are interested in finding out if your product requires an import license, please contact the U.S. Commercial Serv= ice in Buenos Aires at Buenos.Aires.Office.Box@mail.doc.gov.

<= /o:p>

To receive customs clearance, the application f= orm must be registered with the Under Secretariat of Foreign Trade Management at the Secretariat of Industry, Commerce, and Small & Medium-Size Enterpri= ses (SMEs). As a rule, approval takes 48 hours for both air and maritime shipmen= ts. However, for imports of sensitive products, subject to monitoring, the procedure may take up to ten days.&= nbsp; If the Under Secretariat does not reply within the specified ten-day timeframe, the importation is considered automatically approved. This procedure is considered an automatic system of authorization, and it complies with the WTO. Neither importers nor exporters mu= st pay a fee for this license, which is valid for 60 days from the approval date.<= span style=3D'mso-spacerun:yes'> Only clean and complete original c= opies are accepted; corrections, manual markings, edits or additions will result = in non-acceptance. If discrepanc= ies exist between this form and other relevant customs documentation, the Under Secretariat will not authorize the required license, and the registration p= rocess must be restarted. Each Harmo= nized Schedule (HS) Code; i.e. each distinct product, must be covered by a separa= te form.

Documentation Requirements and Restrictions

In 1997 the Argentine government put in place greater certificate of origin and consula= rization requirements on a broad range of imports generally covering but not limited= to consumer goods, textiles, apparel and footwear, printing machines, and mach= ine tools.

<= /o:p>

Import/Export Documentation

Maritime Shipments

The following documents are required for all maritime shipments, regardless of value:

·            = ;         Commercial invoice (original and three copies)

·            = ;         Bill of lading (minimum of one negotiable copy for customs purposes)=

·            = ;         Packing list (not generally required for bulk commodities or for articles that are

        =     identical in kind, characteristics, composition, weight, etc.)

·            = ;         Insurance certificate (if insurance coverage is purchased by the exporter)

Air Cargo Shipments

These documents are always required for air cargo shipments, regardless of value:=

·= ;      =             &nb= sp; Commercial invoice (original and three copies)

·= ;      =             &nb= sp; Airway bill (number of copies depends on requirements of the importer and of the

        =     airline used)

·= ;      =             &nb= sp; Packing list.

Freight forwarding and/or ag= ents' fees cannot be shown on airway bills on a freight collect basis; i.e., the = fees must be prepaid.

Commercial Invoices=

Commercial invoices must be presented in Spanish (one original and three copies), with= the caption "Original Invoice".   Carbon copies, printed copie= s, or photocopied invoices will not be accepted in place of the original. In addition, a properly authorized member of the firm must provide an original signature in ink on each copy of the invoice presented (i.e., the original and three copies). This member of the firm is to be identified by the typing of the full name directly underneath the signature, followed by the typing of his title or position in the firm. Where these commercial invoices are handled or in any way completed by the shippers or agents, a responsible representative should sign as well, and identify the signature in the same manner, giving the full name of the firm as agents for the exporter or manufacturer. All agents and shippers countersigning and completing invoices for exporters or manufactur= ers should add their telephone numbers after the name of the firm.

The invoice should contain:

·            = ;         Invoice number

·            = ;         Place and date of execution

·            = ;         Full name and address of the exporter

·            = ;         Full name and address of consignee and name and address of the agent (freight
        =     forwarder), if any quantity, indicating measuring units invoiced

·            = ;         Name and description of goods (in Spanish)

·            = ;         Unit price and total

·            = ;         Currency used in transaction

·            = ;         Terms of payment and delivery, using INCOTERMS

·            = ;         Origin and place/port of export of the merchandise

·            = ;         Means of transport (specifying via ocean or air or parcel post)

·            = ;         Port or place of entry into Argentina

If the invoice is in English, the common practice is to show the Spanish translati= on just below the English text.

The invoice must contain the following declaration in Spanish:

"<= /em>DECLARO BAJO JURAMENTO QUE LOS PREC= IOS CONSIGNADOS EN ESTA FACTURA COMERCIAL SON LOS REALMENTE PAGADOS O A PAGARSE= , Y QUE NO EXISTE CONVENIO ALGUNO QUE PERMITA SU ALTERACION, Y QUE TODOS LOS DA= TOS REFERENTES A LA CALIDAD, CANTIDAD, VALOR, PRECIOS, ETC., Y DESCRIPCION DE LA MERCADERIA CONCUERDAN EN TODAS SUS PARTES CON LO DECLARADO EN LA CORRESPONDIENTE SHIPPER'S EXPORT DECLARATION."

&nb= sp;

(Unofficial Translation: "I swear under oath that the prices on this commercial invoice are those really paid or to be paid, and that no agreement exists t= hat permits their modification, and that all data pertaining to quality, quanti= ty, value, prices, etc., and description of the merchandise agree in all their parts with what was declared in the corresponding Shipper's Export Declaration.")

A fax of the commercial invoice may be used as a working copy for customs, but the original must be presented in order to complete entry.

Bill of Lading

The bill of lading should be issued (at minimum) in one negotiable copy; additional negotiable copies may be required by the importer, bank, steamship line, or other interested party (follow instructions from the importer or those give= n in the letter of credit or other contractual arrangement). Bills of lading must indicate the = weight and volume of each package, as well as the total weight and volume of the shipment. All bills of lading must also show the amount of freight and a statement "Freight Paid," or "Freight Payable at Destination= " as appropriate.

The bill of lading must show the following:

·            = ;         Name of the ship

·            = ;         Name of the ship's captain

·            = ;         Port of registry and registered tonnage (weight and volume)

·            = ;         Name of the charter or the shipper

·            = ;         Name of the consignee (unless it is "to the bearer" or "to order")

·            = ;         Number of packages, as specific description of the contents, the quantity, quality

        =     and marks of the goods<= /p>
·            = ;         Port of loading and unloading, with a declaration of the port of cal= l, if any

·            = ;         Freight amount

·            = ;         Place, method and date of payment

·            = ;         Date of preparation of the document and signature of the captain and= of the

        =     shipper (signature of the shipping compan= y and shipper should be signed

        =     manually, facsimile signatures are not acceptable)

·            = ;         Container and seal number, and terms of shipment
·            = ;         Invoice number suggested

Packing Lists

Packing lists are necessary for customs clearance in Argentina and must describe the contents of each package. Where the contents of a parcel are the same as th= ose in other parcels of the same lot, one description on the packing list cover= ing the lot will be sufficient. The packing list preferably should be in Spanis= h.

No packing list is necessary for goods imported in bulk, such as coal, petrole= um, sand, etc., or for articles identical in kind, characteristics, composition, weight, etc.

It is suggested that the packing list be included in every air shipment.

Insurance Certificate

The U.S. exporter needs to be concerned about this document when purchasing insurance and should act according to the details provided by the importer. Marine insurance can be obtained from any insurance company.

Certificate of Origin

The certificate of origin is a document required by Argentine Customs under various circumstances:

Control of Preferential Origin

§   &= nbsp;    To claim pre= ferential import duties when the country of origin has signed a trade agreement endor= sing these preferences, as is the case of imports from member countries of MERCO= SUR or ALADI, the Latin American Integration Association.

The Argentine Customs authorities will require this docum= ent to grant preferential treatment at the importer’s request.=

Control of Non-Preferential Origin<= /p>

To control trade policies that are not related with preferential treatment, such as:

·  &n= bsp;      Antidumping Duties

·  &n= bsp;      Countervailing Measures

·  &n= bsp;      Safeguard Measures

·  &n= bsp;      Import Quotas

·  &n= bsp;      Trade Statistics

The government of Argentina also requires a certificate of origin for certain products, such as textiles and footwear, regardless of t= heir country of origin (Resolution MEOSP 39/96).

For information on products requiring certifica= te of origin, please contact the U.S. Commercial Service in Buenos Aires at Buenos.Aires.Office.Bo= x@mail.doc.gov.

U.S. Export Controls        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;             = Return to top

An export license grants permission to conduct a certain type of export transaction. It is issued by= the appropriate licensing agency after a careful review of the facts surrounding the export transaction.

Not all exports require a license. In fact, a relatively small percentage of all U.= S. export transactions require licenses from the U.S. government. <= /span>

An exporter must think of the transaction as the element that may or may not require a license. However, the characteristics of the product are key elem= ents of any transaction.

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce is responsible for licensing products that are “dual-use,” or have both commercial and military or proliferation applications. The first step = to establishing whether a dual-use product requires a license is to find the product’s Export Control Classification Number (ECCN) on the Commerce Control List (CCL). BIS’= ;s Office of Exporter Services in Washington, DC, (202-482-4811) or in Newport Beach, CA, (949-660-0144), can guide you through this process. You may also find guidance on this process in a previously published Export America <= /i>article entitled “Export Control Classification Numbers-ECCN,” which is on the Trade Informa= tion Center’s Web site www.export.gov/tic under “Answers to = Your Export Questions.”

=

Once the ECCN number is determined, the specialists at BIS can also help you navigate the Export Administration Regulations (EAR) to find out whether you must ap= ply for a license and how to submit the requisite application. An excellent explanation of how to understand the Export Administration Regulations is available on the BIS Web site<= /a>.

If the product to export does not fall into one of the specific categories listed = in the EAR, EAR 99 is a designation for dual-use goods that are covered by the= EAR but are not specifically listed on the Commerce Control List. EAR 99 items = can be shipped without a license to most destinations under most circumstances.= In fact, the majority of commercial exports from the United States fall into t= his category. Exporters of most consumer goods, for instance, may find their product listed under EAR 99.

Other U.S. Government agencies regulate certain specialized articles. For instanc= e, the export of defense articles falls under the purview of the Directorate of Defense Trade Controls at the U.S. Department of State. Licensing nuclear materials and equipment for export is the responsibility of the Nuclear Regulatory Commission. The Office of Imp= orts and Exports under the Office of Fossil Energy in the Department of Energy regulates the export of natural gas and electric power. The Department of Energy’s O= ffice of Export Control Policy and Cooperation authorizes the use of nuclear technology and technical data for nuclear power, as well as special nuclear materials. The U.S. Drug Enforcement Administration regulates the export of controlled substances and precursor chemicals. For the relevant contact information regarding export controls issues at any of these agencies, call= the Trade Information Center at (800) USA-TRADE.

But what if the product does not fall into any of the categories mentioned above or = is EAR 99? Two other elements of the transaction must be considered:

The item’s destination, and

The recipient’s intended end-use of the item.

The Office of Foreign Assets Control (OFAC) at the U.S. Department of Treasury enforces economic sanctions based on U.S. foreign policy and national secur= ity goals, which are set forth by Congress. In the case of a few countries, lik= e Iran, Libya, Cuba and Sudan, the United States maintains comprehensive trade sanctions, which means that the export of most goods to these countries is prohibited. However, licensing programs for the exportation of agricultural goods, medicine, and medical products are in place for Iran, Libya, Cuba, a= nd Sudan. OFAC licenses exports of allowable products to Iran, Libya, and Suda= n, while BIS licenses exports of products to Cuba. Limited sanctions programs = are in place against other countries, or groups within those countries. Detailed information on these sanctions is available on the OFAC Web site at = http://www.treas.gov/offices/enforc= ement/ofac/programs/index.shtml. U.S. sanctions programs= change frequently. Exporters are encouraged to monitor U.S. sanctions programs on = the OFAC Web site on a daily basis. For questions regarding U.S. sanctions programs, contact OFAC at (800) 540-6322.

Exporters should screen all parties involved in an international transaction against = the four “Prohibited Parties Lists,” of entities with which an expo= rter is prohibited from doing business under most circumstances:

The Specially Design= ated Nationals List, or SDN List, is published by OFAC on the Internet (www.treas.gov/ofac) as well as in the = Federal Register. SDNs are individuals or entities located throughout the world that are blocked pursuant to various sanctions programs. SDNs can be f= ront companies, quasi-government organizations, or individuals determined by the U.S. government to be owned, controlled by, or acting on behalf of, targeted countries or groups. They may also be specifically identified individuals, such as terrorists, narcotics traffickers, or banks and o= ther institutions owned or controlled by the government of Burma. U.S. pers= ons are prohibited from engaging in any transactions with SDNs and must bl= ock any property under their control in which an SDN has an interest.

The Denied Persons L= ist contains the names of persons who are subject to a denial order by BIS= . In general, U.S. exporters are prohibited from dealing with denied person= s in export transactions involving U.S. items. The list is accessible via <= /span>http://www.bis.doc.gov.

The Entity List, also maintained by BIS, is composed of foreign end-users engaged in proliferation activities. Based on these proliferation concerns, expor= ts to these entities may require a license when the export transaction is within the parameters found in Part 744, Supplement 4, of the Export Administration Regulations. This list can be accessed through the BIS = Web site at www.bis.doc.gov.

=

The Debarred Parties= List is maintained by the State Department. It lists the names of individuals denied export privileges under the International Traffic in Arms Regulations (ITAR).

Trade restrictions often change as a result of shifts in geopolitics and the need= to adapt U.S. foreign policy. In the aftermath of the September 11 terrorist attacks, President Bush issued Executive Order 13224 for the purpose of “blocking property and prohibiting transactions with persons who comm= it, threaten to commit, or support terrorism.” This order created a new category of Specially Designated Nationals (SDNs), called Specially Designa= ted Global Terrorists (SDGTs), expanding the list of parties with which U.S. companies are not permitted to do business. Due to the frequency of additio= ns to the SDN list and changes to sanctions programs, U.S. persons are encoura= ged to check the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) Web site at www.treas.gov/ofac on a daily basis for updates. Exporters may= also subscribe to OFAC’s “What’s New File” to receive e-= mail notification whenever changes are made to the SDN list. Subscribe at www.treas.gov/offices/enforcement/ofac/subscriberecent.html= .

<= span lang=3DEN-US style=3D'font-size:11.0pt;mso-bidi-font-size:12.0pt;font-famil= y:"Arial","sans-serif"'>Penalties For Violating Export Control Laws

Millions of dollars in civil penalties are imposed each year by the federal governme= nt for violating export control laws. The BIS Web site contains examples of ci= vil penalties that have been imposed in the past. Civil penalties assessed by O= FAC are $11,000 per prohibited transaction for violations of most sanctions programs, but they can exceed $1 million if the transaction involves narcot= ics kingpins. In cases where criminal intent to violate export control laws is found, criminal penalties can be imposed, resulting in significant corporat= e or personal fines and/or imprisonment.

For any other questions about this section, or about exporting in general, please c= all the Trade Information Center (TIC) at (800) USA-TRADE and “Ask the TIC.”

Temporary Entry            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;   Return to top

The Temporary Admission Regime (TAR) allows duty free admission of goods such as commercial samples, packaging, pallets, containers and goods for exh= ibits. The exports must be completed within the stipulated time as set by customs = in accordance with the type of imported merchandise. Failure to re-export goods will re= sult in a fine. Merchandise may suffer changes, which increase or lower its valu= e, but no export charges will be levied when goods remain unchanged. If value is increased, charges will apply to the added value. The transfer of property, possession, or use is not permitted. A bond is requir= ed to cover the value of import charges for the goods. The bond will be refunded when the= goods are re-exported.

Resolution 392/2006 SICPyME modifies Decree 1439/96, and regulates the import of primary and intermediate goods into Argentina for use in export production.&nb= sp; The finished goods must be exported within 360 days from the date of temporary admission; however this deadline may be extended for an additional 360 days. There are special permissions for long-term projects, for which the maximum stay under the TA= R is 1080 days.

Ar= gentina is not included in the A.T.A. (Temporary Admission) Carnet program of the U= .S. Council for International Business, which allows the importation of goods, display booths, and literature for display in local trade shows for subsequ= ent re-export. The TAR regime sho= uld be used for this purpose. Many t= rade show organizers, however, obtain a special waiver from the Ministry of Econ= omy by declaring an event "of national interest".

Decree 1001/82 and Disposition 34/9= 8 of the Argentine Customs Bureau (Direccion General de Aduanas - DGA) include imports of new or used capital goods destined to production under t= he Temporary Admission Regime. T= he importer must fulfill the following requirements:

A)     Present a contract accrediting:

Ownership of the equipment by a third party in the exporting country<= /span>

Mandatory re-exportation of the equipment

Contract length, up to three years, renewable for another three-year period

Certification by the Argentine Consulate, if signed in the exporting country, or not= ary public, if signed in country.

B)     Present a sworn statement attesting that a temporary higher demand exceeds present producti= on capacity or that lack of adequate technology prevents him/her from satisfyi= ng that temporary demand. If the equipment is to be used for public works (e.g. infrastructure projects), the importer must present a certificate issued by the awarding authority.<= /o:p>

The Argentine Customs B= ureau established a program allowing duty free admission of primary and intermedi= ate goods into Argentina for use in export production or for applying finishing touches on goods destined for re-exportation. This regime, known as the Temporary Admission for Re-export (TAR) provides opportunities for Argentine manufacturers of exportable goods to reduce costs by not paying tariffs, VA= T, or anticipated profits tax on imported inputs. This also is important for Argenti= ne businesses that make repairs on goods that are shipped from other countries. Between 1999 and 2= 003 temporary imports have increased by 65%, while imports in general have fall= en by 16%. Nearly one-fifth of a= ll Argentine exports are related in some way to this regime. U.S. exporters of processed and unprocessed inputs into Argentine export production can take advantage of the Temporary Import Regime.&= nbsp; This is especially attractive since Argentine exports are surging si= nce the devaluation of the Peso in January 2002. This regime will be phased out beg= inning January 1st, 2006.

Decree 1439/96 for the duty free admission of primary and intermediate goods for use in export production, as well as exemption from VAT, statistics fee= and anticipated profits taxes. Argentine manufacturers that use imported processed and unprocessed inputs, auxiliary elements, packaging and bottling materials that are invol= ved in the production process are exempt from tariffs and taxes if the final go= od is exported to a third country. This regime also benefits repair service providers who receive goods shipped from abroad. These finished goods must be exported within 180 days, although extensions for an additional 180 days are permitted. A bo= nd is required to cover the value of import charges for the goods, which will = be refunded when the goods are re-exported.&n= bsp; The more a company pays in import duties on its inputs the more incentive it has to take advantage of this regime.
Goods are considered eligible for the TAR program if they are substantially transformed in an industrial process that has the end goal of producing an export. Examples of “transformation” include: manufacturing, combination, mixture, dosage, repair, rehabilitatio= n, assembly, or installation within a more complex final product. This includes products that are co= nsumed either completely or partially in another process, as with oils and combustibles, disposable materials used in a production process, machinery parts, packaging and bottling, etc. Damaged goods in need of repair can also enter the country under this program to undergo repairs, contingent upon their subsequent re-exportation= .

These goods may remain in Argentina without paying tariffs for a one-year period,= or in the case of inputs for the production of capital goods that are listed as “non-serialized” by the MERCOSUR Common Nomenclature System. Failure to re-export goods will re= sult in a fine.

The sectors that take advantage of this regime are automotive, chemical, basic metallurgy, food and beverage, machinery and equipment, leather, petrochemi= cal, and paper. The usage of this = regime is highly concentrated: approximately 10% of the firms that have used this = regime import 90% of the goods that qualify.

Timeframes for merchandise imported into the country.

a) For general merchandise:

Initial period: 1 year
Extension: 1 additional year

b) For “non-serialized” production goods (Annex 1 - Decree 1439/96. Exam= ples: custom made boats, industrial machines, bridges, etc.)

Initial period: 2 years
Extension Period: 1 additional year.

c) Prolonging the extension period (due to natural or manmade disasters that make re-export impossible): 1 additional year.

Entry bonds

<= span lang=3DEN-US style=3D'mso-bidi-font-size:8.0pt;font-family:"Arial","sans-se= rif"'>A)   The bond equivalent for the amount of import duties, domestic taxes, statistics fees plus an additional 24% bond must be paid upon entry of the goods into customs. If the goods admitted under TAR are re-exported unaltered, the entirety of the bond will be returned. Otherwise, this bond will be returned upon export of the goods that the TAR goods formed part of. If the goods th= at are imported are subject to antidumping duties, a corresponding bond will a= lso be required upon entry. This bond will also be returned upon re-export of t= he goods.

<= span lang=3DEN-US style=3D'mso-bidi-font-size:8.0pt;font-family:"Arial","sans-se= rif"'>B)   The bond may be paid in cash, by bank guarantee, or through an insurance bond.<= /span>

The following is an example of the amount of bonds that must be paid to customs=

FOB Base Price

US$10,000.00

Freight *

5%

US$ 500.00=

Insurance *

0.2%

US$ 200.00=

CIF =3D Dutiable Base

US$ 10,700

Additional Import Duty

24.00

US 2568.00=

Import Duty (DIE)

10.0

US$ 1070.00=

Statistics Fee

0.5%

US$ 53.50=

SUBTOTAL

&nbs= p;        3781.50

VAT Dutiable Base

= ;

= ;

US$ 14391.50

VAT<= /span>

21%<= /span>

US$ 3022.15

= ;

VAT (additional)

10%<= /span>

US$1,439.2

= ;

Prof= its Tax (advance)

3%

US$431.75

= ;

SUBT= OTAL

= ;

      4893.10

= ;

= ;

= ;

BOND=

= ;

US$ 8,674.60

<= /o:p>

Importing for Consumption

If the goods that were admitted for entry under the TAR regime are imported in= to Argentina for consumption, payment must be made not only of the correspondi= ng duties and taxes, but an additional 2% will be charged per month (since the entry date) on the value of the merchandise. This charge will be calculated fro= m the month of temporary importation until the month when the goods were imported= for consumption, which will be no less than 12% of the value of the goods in customs unless said value is determined to be less than when the goods were admitted for temporary importation.

Labeling and Marking Requiremen= ts        &= nbsp;           &nbs= p;            &= nbsp;           Return to top

Under Argentine law 22,802/8= 3, the Direccion de Lealtad Comercial establishes labeling requirements= for products in Argentina. = The law requires that product labels bear all the information that the customer needs, and that information is true and valid. The Secretariat of Industry in the= Ministry of Economy ensures transparency in all business transactions and enforces t= he labeling regime.

Law 22,802 of 1983, known as the Merchandise Marking Act, supersedes Law 11,275 of 1923. The current law states the general= and basic labeling requirements for domestic or imported products, as follows:<= o:p>

Article 1: - All packaged products sold in Argentina will bear the following information on a printed label in a visib= le manner on the package or container:

a) Name (description of product)
b) Country of origin
c) Quality, purity, or blending description
d) Net weight

All non-packaged products commercialized in cou= ntry will have to comply with requirements a), b) and c), as stated above.<= /o:p>

Article 2: - Products manufactured in country w= ill bear a mark that reads "Industria Argentina". If products have been manufactured= with foreign raw material, or any other element that does not modify the nature = of the product, it will still be considered an Argentine product. Indication of the foreign origin o= f the component/s of the final product is allowed; however, it has to be smaller = than the original label.

Article 3: - Imported products that undergo a f= inal local process of assembly and finishing that does not modify the nature of = the product will be considered of foreign origin. It is optional to indicate that su= ch a process has occurred on the product label. Imported products manufactured w= ith elements of different countries will be considered as originating from the country in which it acquired its nature.

Article 4: - Labels of all products commerciali= zed in country should be in Spanish, with the exception of foreign words/phrase= s of common usage in trade. Import= ed products may keep the original label of country/language of origin but shou= ld have a sticker/label attached to the package in Spanish with the information requested in Article 1 (above).

Article 5: - The use of words, phrases, descriptions, trademarks, product literature, brochures, etc. that may lead= to error, deceit, or confusion regarding the nature, origin, quality, quantity, etc. of the product, its features, and usage is completely forbidden.<= /o:p>

Article 6: - Importers, manufacturers and assemblers will be responsible for the truthfulness of the information stat= ed on the labels.

This law has many complementary regulations from different Ministries according to the nature of the product. Industry secto= rs such as medical, fine chemicals, fertilizers, hazardous materials, food, beverages, textile and apparel, and footwear have more detailed specificati= ons for labeling requirements.

Law 19,511 establishes the use of the metric sy= stem in the Argentine Republic. Regulation 100/83 of the Ministry of Economy provides that the indication of net content in labeling must be in the metr= ic system.

The Direccion de Lealtad Comercial of the Secretariat of Industry, Ministry of Economy, works together with the other Ministries (or corresponding Argentine government agency) in the developmen= t of in-depth labeling requirements for each industry/product. For further inquiries, please contact:

DIRECCION DE LEALTAD COMERCIAL
Secretaria de Coordinacion Tecnica
Ministerio de Economia y Produccion
Av. Julio A. Roca 651, Piso 4, Of. 26
(C1067ABB) Buenos Aires, Argentina
Phone: (54-11) 4349-4075/76/77
Fax: (54-11) 4349-3755
Contact: Prof. Fernando Carro, Director
Comments: Government agency under the Ministry of Economy.=

In some cases, the Government Regulatory bodies= of each industry provide information on the corresponding labeling requirement= s.

For example, for information on labeling requirements for the medical industry, hygiene and food products etc, the A= NMAT (the equivalent of the USFDA, the regulatory body of the Ministry of Health) provides additional information to the general rules for a specific product= .

Administracion Nacional de Medicamentos, Alimentos y Tecnologia Medica (ANMAT)
Av. de Mayo 869, Piso 3
C1084AAD Buenos Aires, Argentina
Phone/Fax: (54-11) 4340-0899; 4340-0800
Fax: (54-11) 4342-4578
E-mail: postmaster@anmat.gov.ar<= span style=3D'mso-bidi-font-size:9.0pt;mso-bidi-font-family:Arial;mso-ansi-langu= age: ES'>
URL: www.anma= t.gov.ar
Contact: Manuel Limeres, Director a.i.

There is no general regulation for labeling of hazardous materials. The Direccion de Lealtad Comercial and the Ministry of Health are currently discussing the terms on labeling requirements of hazardous materials. For information on labeling requir= ements of hazardous materials, please contact the ANMAT (above) with your request including the product's HS number.

Argentina has adopted the U.N. recommendations for the labeling and packing of hazard= ous materials. For more informati= on please refer to the International Maritime Dangerous Goods Code (IMDG Code)= .

Prohibited and Restricted Imp= orts        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;   Return to top

Prohibited Imports

The Government of Argentina has prohibited importation of the following product= s:

Used automobiles (with some exceptions, Decree 110/1999)<= /li>
Used motorcycles and velocipedes (Resolution 790/1992, Ministry of Economy)=

Used equipment and its parts, as indicated by Decree 690/2002, App= endix XIV and its modifications (Resolution 89/2003 ME, article 7°)

Worn clothing and accessories (MERCOSUR Tariff Codes 6309.00.10 & 6309.00.90) until June 30, 2010. (Resolution ME 367/2005)

All types of dangerous residues (Law 24051)

Certain dangerous substances (Resolutions 750/2000, 845/2000, 182/1999, etc.)<= o:p>

Telephone terminals that operate in a band between 1880 Mghz-1900 Mghz (Resoluti= on SC 1994/1999)

Toys considered dangerous for children. This is a temporary measure valid f= or twenty-four months starting September 22, 2005 (Resolution MSA 243/200= 6)

Used and recapped tires (MERCOSUR Tariff Codes 4012.10.00 & 4012.20.00,= Law 25,626 8/8/2003)

Used equipment, instruments, parts and transportation material (Resolution MEOSP 909/94, article 4°, and modifications). Resolution MP 37/2003 exempted donations of used goods over 5 years old made to governmental institutions and registered religious entities

Raw cotton (not carded or combed, harsh or rough) as per Res. SENASA 208/0= 3

Additionally, ANMAT (Administracion Nacional= de Medicamentos, Alimentos y Tecnologia Medica), the regulatory equivalent= of the U.S. Food and Drug Administration within the Ministry of Health, regula= tes and prohibits imports of certain toxic substances contained in products suc= h as pharmaceutical products and cosmetics.

For additional information on the mentioned products, please contact the U.S. Commercial Service in Buenos Aires at = Buenos.Aires.Office.Bo= x@mail.doc.gov.

Used C= apital Goods

The Government of Argentina places restrictions on imports of used products, including medical equipment, to facilitate market entry for well-established and qualified suppliers and to= bar unreliable suppliers, who have sold improperly refurbished machines or equi= pment without suitable after-sales support.

As a general rule, used capital go= ods must be refurbished in the country of origin or the country of export. The machinery must have been overh= auled (repaired or remanufactured) and certified by a "technical organizatio= n" in the country of origin. The Commercial Section of the Argentine Embassy or an Argentine Consul in the U= .S. must then validate the certification. Used goods may be refurbished in Argentina by the importer, who is t= he end user of the goods. In this case, the importer is subject to proof-of-use regulations for two years, du= ring which the donation or sale of the goods is prohibited. These proof-of-use regulations also apply to goods refurbished abroad and imported by the end user. Existing regulations require that = the exporter maintain an official agent or representative in Argentina who can assure the availability of spare parts and servicing.

Decree 690/2002 lists used equipme= nt subject to this regime, as well as used equipment banned from import. Products not mentioned in the decr= ee (as either permitted or prohibited) are considered as new for tariff purposes.<= o:p>

For additional information, please contact the U.S. Commercial Service in Buenos Aires at Buenos.Aires.Office.Bo= x@mail.doc.gov.

Customs Regulations and Contact Information     &n= bsp;            = ;         Return to top

At a national level, the General Cu= stoms Bureau (Dirección General de Aduanas, DGA) applies, collects and controls taxes under the Argentine Customs Code. Additionally, it regulates other t= axes on import and export transactions on behalf of other entities. In general, the DGA applies and co= ntrols import and export transactions.

The DGA depends on the Federal Public Revenue Administration (Administracion Federal de Ingresos Públicos, AFIP). AFIP is an autonomous authority in= the administrative level, under the general supervision and legal control of the Ministry of Economy. It execu= tes the tax and customs policies set by the Executive Branch.

For Customs-related information or questions, contact:

Administracion Federal de Ingresos Públicos, AFIP
Phone<= i>: 0810-999-2347 (0810-www-afip) (Spanish)
Mo-Fr 8am-7pm

&= nbsp;

Contact Information

&= nbsp;

FEDERAL PUBL= IC REVENUE ADMINISTRATION
(Administracion Federal de Ingresos Públicos, AFIP)

Mr. Alberto Abad

Federal Administrator

Hipólito Yrigoyen 370 (C1086AAD)<= /p>
Phone: (54) (11) 4347-2000

GENERAL CUSTOMS BUREAU
(Dirección General de Aduanas, DGA)

Mr. Ricardo Echegaray

General Director

Azopardo 350 (C1107= ADD)

Buenos Aires=

Phone: (54) = (11) 4338-6400/6640

Fax: = (54) (11) 4338-6644

For online Customs-related informat= ion, please visit the AFIP/DGA’s website at http://www.afip.gov.ar/secci= on_ad.asp (Spanish).

For Customs regulations, visit the AFIP’s online library at: http://biblioteca.afip.gov.ar/<= /span> (Spanish).

Standards            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =    Return to top

Overview

Standards Organizatio= ns

Conformity Ass= essment

Product Certif= ication

Accreditation

Pub= lication of Technical Regulations

Labeling and Mar= king

Contacts

&= nbsp;

            Overview        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;         Return to top

    =

A 1994 decree created the legal framework (Decr= ee 1474/94) for standards-related activities in Argentina.

As a member of the World Trade Organization (WT= O), Argentina signed the Agreement on Technical Barriers to Trade (TBT), affirm= ing its obligations relative to technical regulations and conformity assessment procedures. IRAM has signed t= he WTO TBT Code of Good Practice for the Preparation, Adoption and Application of Standards. Responsibilities under the TBT agreement include the establishme= nt of a national inquiry point to serve as a central location for information = on standards-related issues, including proposed mandatory regulations. The Argentine inquiry point is in = the Secretariat of Industry, Commerce and SMEs (see Information Sources below). The U.S. inquiry poin= t is the National Center for Standards and Certification Information (NCSCI),<= span lang=3DEN-US style=3D'mso-bidi-font-size:10.0pt;mso-bidi-font-family:Arial'> located at National Institute of Standards and Technology (see Information Sources below).

Standards and Regulations in MERCOSUR

Argentina, as an active MERCOSUR member, participates in the development of MERCOSUR standards and regulations. The MERCOSUR Standards Association= , AMN (previously known as the Comite MERCOSUR de Normalizacion) --compose= d of the standards institutes of Argentina, Brazil, Paraguay, and Uruguay-- deve= lops and harmonizes standards. The Executive Secretariat of the AMN is located in Sao Paulo, Brazil. Voluntary standards are developed = in 16 technical committees and deal mostly with steel products, cement and concrete, and electrical safety. Several hundred standards are at different stages of preparation or in the work plan.

Regional technical regulations are developed an= d/or harmonized by the MERCOSUR governments in Sub Working Group 3 in the follow= ing fields: automotive, foods, metrology, safety issues for electrical products, toys, and pre-measured products. Separate working groups, such as those on telecommunications and hea= lth issues, also focus on mandatory technical requirements for their particular sectors. Approved MERCOSUR regulations are not automatically adopted in each country. To be applicable, harmonized MERCO= SUR regulations must be adopted by each country. The four countries generally a= dopt all MERCOSUR regulations at different speeds.

Agricultural and Health-related Products=

Please note that agricultural and health-related products are subject to specific and different voluntary standards and mand= atory technical regulations. Medical devices, pharmaceuticals, and foods are the purview of the National Administration of Drugs, Food and Medical Technology (Administracion Nacional de Medicamentos, Alimentos y Tecnologia Medica - ANMAT).<= /o:p>

            Standards Organizations     =             &nb= sp;            =             &nb= sp;         Return to top

There are two private sector organizations that work under the National System for Standards, Quality and Certification. The Argentine Standardization Inst= itute (Instituto Argentino de Normalizacion - IRAM) is the official nation= al standards body for the Republic of Argentina. The Argentine Accreditation Organi= zation (Organismo Argentino de Acreditacion - OAA) is the accreditation body. These are the only organizations that carry out standardization and accreditation in Argentina= .

NIST - - Notify U.S. Service

Member countr= ies of the World Trade Organization (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technic= al regulations that could affect trade with other Member countries. = Notify U.S. is a free, web-based e-mail subscription service that offers an opportunity to review and comment on proposed foreign technical regulations that can affect your access to international markets. Register online at Internet URL: http://www.nist.gov/= notifyus/=

&= nbsp;

        &= nbsp;   Conformity Assessment     &nb= sp;            =             &nb= sp;            =            Return to top

IRAM, created in 1935, is the only developer of national voluntary standards in Argentina.= Reliance on international standards as a basis for developing nation= al standards continues to be a strong trend in Argentina. While many IRAM standards are comp= atible with U.S. standards, many others are patterned after requirements of various European countries and may place U.S. products at a significant disadvantag= e.

IRAM is also a certification organization, both= for products and systems. Its product certification mark, the "Sello IR= AM" is widely recognized in the country as indicating conformity to an IRAM voluntary standard. See below= for the mandatory safety mark.

In Argentina, most standards are voluntary. The buyer and seller share responsibility in determining what product standard is applicable. Products conforming to U.S. standa= rds may or may not be acceptable. Reflecting long-standing tradition and practice, products that meet European requirements are often preferred.= This preference may be expressed in procurement specifications, in customary design and construction practices, or as market issues.

Given the growing importance of standards and conformity assessment in expanding U.S. exports, a standards expert is assi= gned to work in the U.S. Commercial Service office at the U.S. Embassy in Brasil= ia, with regional responsibilities for South American countries, including Argentina.

        &= nbsp;   Product Certification     =             &nb= sp;            =             &nb= sp;            =      Return to top

Mandatory Testing and Mandatory Product Certification

Regulated products must display an official saf= ety "S" mark to show they conform to the regulations. However, as described above and du= e to implementation issues, it is difficult to state with certainty at this time= the products that must be tested, certified, and marked as required by the resolutions.

Non-Mandatory Testing and Product Certification=

There is no legal mandate to retest non-regulat= ed products that have been approved in their country of origin. For non-regulated products, some U= .S. trademarks and product certifications are well known and accepted in Argentina. As with standards,= any certification that may be required for non-regulated sectors is a contractu= al matter to be decided between the buyer and the seller. However, it is important to be awa= re that market conditions and preferences may impose the use of particular standards, certification, or trademarks.

Traditionally, product certification in Argenti= na has been mostly voluntary with few active organizations including IRAM. However, this has changed due to t= he partial implementation of regulations that mandate product certification. A number of U.S. certification bod= ies are now active in Argentina, along with several multinationals and new local entities.

INTI, the National Institute of Industrial Technology (Instituto Nacional de Tecnologia Industrial) is a govern= ment agency that participates in standards development and performs product test= ing and certification. Due to the continuing shortage of independent laboratories in Argentina, INTI is viewe= d as a prime testing and calibration laboratory for the country.

INTI's position attracts interest and substanti= al technical support and cooperation from foreign countries, most notably Germ= any, Japan, and the U.K. These, and other countries such as France, regularly offer scholarships for long and medium-term training courses abroad. Other Argentine private and public organizations also benefit from t= hird country largesse.

To facilitate the acceptance of U.S. products in the Argentine market, agreements between U.S. and local certifiers and test= ing houses are encouraged. This could provide recognition of existing certifications. Also, there i= s no impediment for U.S. certification organizations to be established and accredited in Argentina.

            Accreditation        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p; Return to top

&nb= sp;            =            =

Entities that engage in certification for regul= ated products must be accredited by the Argentine Accreditation Organization (Organismo Argentino de Acreditacion, OAA) and recognized by the Government. Testing laboratories must similarl= y be accredited and recognized.

Organismo Argentino de Acreditación

Av Julio A. Roca = 651

Piso 5 – Se= ctores 8 y 9 (1067)

Buenos Aires=

Tel./Fax: 4349-3962/63/64

U= RL: www.oaa.org.ar

<= o:p>

<= o:p>

&nb= sp;          Publication of Technical Regulations           &nb= sp;            =         Return to top

In 1998, the Argentine government embarked on a= new path of issuing regulations mandating that certain products meet safety requirements. The trend has s= lowed down considerably and, generally, implementation schedules have been postpo= ned.

Low voltage electrical equipment was the first product category subjected to safety regulations and mandatory certification (Resolution 92/98). Regulations have also been issued = for toys, shoes, gas appliances and products, construction steel, elevators, en= ergy consumption and noise labeling of appliances, closures for dangerous produc= ts, and personal protective equipment. Since the end of 1999, efforts have been concentrated in implementat= ion rather than in adding new categories of product to safety regulations. Full-phased implementation of most regulations is not following original schedules.

Resolution 92/98 originally covered= all low voltage electrical equipment, but subsequent modifications have excluded various categories of products. However, the vast majority of electrical and electronic products in = the consumer marketplace are still subject to this regulation. Evidence of compliance with the regulation is mandatory through product certificatio= n. Resolution 92/98 provided for a phased three-stage implementation, with different dates depending on the product.&= nbsp; Phase 1 calls for a sworn declaration of conformity, phase 2 provides for a type-certification, and phase 3 requires full third-party certificati= on with mark of conformity.

Safety regulations for other products are at different stages of implementation.

        &= nbsp;   Labeling and Marking     &n= bsp;            = ;            &n= bsp;            = ;            &n= bsp; Return to top

Resolution 197/2004, published in the Boletin Oficial on January 7^th, 2005 establishes the requirements for certification by mark (ISO 4), type (ISO 5= ), or batch (lot-ISO 7)). Type a= nd lot requirements have applied since June 28^th, 2005, while mark stam= ps have applied since January 7^th, 2005. Manufacturers and importers of the products affected by these requirements (electric apparatus over 50 volts, toys, personal protection equipment, elevators, steel, lighters, and bicycl= es) can choose among the three-certification criteria (steel products can only = be certified by mark or batch). Products certified by type or lot must bear a seal that includes the certification number. The latter must also consign batch number information= .

Labeling requirements include safety information, voltage, fire safety, and child sa= fety information. Canned and bottl= ed food labeling requirements include ingredients, identification of manufacturer/importer, and manufacturing/expiration dates. Pharmaceuticals must indicate the = name of the responsible technical director of the pharmaceutical laboratory, as = well as the ingredients by weight/volume.

On July 6, 2005 the Government revised Resolution 197 and passed a new Resolution (= 109) that incorporated all of the changes the industry requested. An unofficial translation is below= :

Quote:

Secretariat of Technical Coordination/Ministry of Economy and Production of the Argenti= ne Republic

Commercial Loyalty

Consumers Defense

Resolution 109/2005

Resolution No. 197/2004, which refers to the mandatory Certification Regime in force in compliance with safety requirements, is hereby amended.

Buenos Aires, July 5, 2005

Whereas:

Record No. S01:0116093/2005 of the Registry of the Ministry of Economy and Product= ion

The Secretariat of Technical Coordination of the Ministry of Economy and Production, being the Authority that enforces the mandatory Certification Regime can assess the technical and legal requirements of such regime.=

Resolution 197 dated December 29, 2004 passed by the Secretariat of Technical Coordina= tion of the Ministry of Economy and Production established the requirements in f= orce for certification by type (ISO 4) or batch (lot-ISO 7) for specific product= s in compliance with security requirements, as established in Resolution No. 799 dated October 29, 1999 passed by former Secretariat of Industry, Trade and Mining of former Ministry of Economy, Publ= ic Works and Services, that establishes the requirements for certification by = mark (ISO 5).

The above mentioned resolution established the requirements for certification i= .e. all affected products must have a symbol (mentioned above) on their packagi= ng which shows compliance with the safety requirements of the certification re= gime

Taking into consideration the practical aspects of this process, it would be advis= able to adjust the requirements for identification by means of a symbol based on= the physical characteristics of the affected products, and to limit the amount = of mandatory information needed to identify the bodies of certification for the respective products.

<= /p>
The Legal Affairs Office of the Ministry of Economy and Production has interven= ed in the aspects incumbent on it and proceeds to act, according to Articles 11 and 12, Section b) of Bill No. 22.802; Article 43, Section a) of Bill No. 24.240 and Decrees No. 1283 dated May 24, 2003, Decree No. 25, dated May 27, 2003 and Decree No. 1359 dated October 5, 2004.

Therefore the Secretary of Technical Coordination resolves:

Article 1: Article 6 of Resolution No. 197 dated December 29, 2004, of the Secretar= iat of Technical Coordination of the Ministry of Economy and Production should = be replaced by the following text:

Article 6: the symbols required for identification, mentioned in Articles 4 and 5 of this Resolution and described in Resolution 799 dated October 29, 1999 of former Secretariat of Industry, Trade and Mining, of former Ministry of Eco= nomy and Public Works shall be exhibited on all affected products.

Such symbol on all affected products will be visible and inerasable when such products are sold commercially. If the product is too small and the symbol is illegible it will have to be exhibited on the packaging or rating label.

All symbols exhibited, as mentioned in abovementioned articles must be accompan= ied by the corresponding certificate listing the type of product.

Article 2: Any infringement of this Resolution will be subject to sanctions pursuan= t to Bills No. 22.802 and 24.240, as it applies.

Article 3: This Resolution shall be in force after its publication in the Official Bulletin.

Article 4: Be it published, filed and passed on to the Official Registry Office.

Contacts        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;         Return to top

Information Resources<= /span>

For information on Argentine and MERCOSUR standards, contact:

IRAM, Instituto Argentino de Normalizacion
Peru 552/556
C1068AAB Buenos Aires, Argentina
Phone: (54-11) 43 46 06 00
Fax: (54-11) 43 46 06 01
E-mail: iram@iram.org.ar
URL: www.iram.org.ar=
Contact: Ing. Jose Francisco Lopez, Director General
Comments: Argentine Standardization Institute

AMN, Asociacion MERCOSUR de Normalizacion
Av. Auro Soares de Moura Andrade 664
01156-001 Sao Paulo - SP (Brazil)
Phone: (55-11) 3823-4603
Fax: (55-11) 3826-3724
E-mail: secretaria@amn.org.br
URL: www.amn.org.br
Comments: MERCOSUR Standards Association

Organismo Argen= tino de Acreditación

Av Julio A. Roca = 651

Piso 5 – Se= ctores 8 y 9 (1067)

Buenos Aires=

Tel./Fax: 4349-3962/63/64

U= RL: www.oaa.org.ar

For information on the WTO-TBT inquiry point, contact:

Direccion Nacional de Comercio Interior =
Secretaria de Industria, Comercio, y de la Pequeña y Mediana Empresa=

Ministerio de Economía y Produccion
Av. Julio A. Roca 651, Piso 4, Sector 22
C1067ABB Buenos Aires, Argentina
Phone: (54-11) 4349-4051/4052
Fax: (54-11) 4349-4038
Email: megime@mprod.gov.ar, = = siperr@mprod.gov.ar
Contact: Dr. Carlos Plana, Director
E-mail: cplana@miproduccio= n.gov.ar=
Comments: National Domestic Commerce Bureau, Ministry of Economy

For medical products, contact:

ANMAT, Administracion Nacional de Medicament= os, Alimentos y Tecnologia Medica
Av. de Mayo 869, Piso 3
C1084AAD Buenos Aires, Argentina
Phone/Fax: (54-11) 4340-0899; 4340-0800
Fax: (54-11) 4342-4578
E-mail: postmaster@anmat.gov.ar
URL: www.anmat.gov.ar
Contact: Manuel Limeres, Director a.i.
Comments: National Administration of Pharmaceuticals, Foods and Medi= cal Technology

For information in the U.S., contact:

National Center for Standards and Certification Information (NCSCI)
National Institute of Standards and Technology (NIST)
Gaithersburg, MD 20899
Phone: (301) 975-4038
Fax: (301) 926-1559
E-mail: ncsci@nist.gov=
URL: www.ts.nist.gov/ncsci= =

American National Standards Institute (ANSI)
11 West 42nd Street
New York, NY 10036
Phone: (212) 642-4900
Fax: (212) 398-0023
URL: www.ansi.org

Trade Agreements        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;     Return to top

Member= ship in Free Trade Arrangements

ALADI<= /span>

Argentina is a founding member of = the Association for Latin American Integration (ALADI-Asociación Latinoamericana de Integración), which was created with the long-term goal = of establishing a Latin American Common Market. Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela are also founding members; Cuba attained full membership in 1999. Under the ALADI, member countries = sign regional and bilateral agreements that allow partial trade liberalization t= hat can then be extended to other members.&nbs= p; In the 25 years since its creation, Argentina has signed several regional, multilateral and bilateral arrangements. The Internet address for ALADI is:= www.aladi.org.

MERCOS= UR

Argentina is a member of the Common Market of the South (MERCOSUR-Me= rcado Común del Sur), which entered into force in January 1991. MERCOSUR member countri= es originally include Argentina, Brazil, Paraguay, and Uruguay. Bolivia, Chile, Colombia, Ecuador,= Peru, and Venezuela* joined the pact as associate members.= By 1995, about 75 percent of tariff categories were included in the Common External Tariff (CET) and the remaining categories will be phased-in= by 2009. MERCOSUR represents 70 percent of the South American territory and 64 percent of its population. The Internet address is as follows= : www.mercosur.int. <= /p>

*M= ERCOSUR-Venezuela

=

In July 2006, MERCOSUR = members accepted Venezuela’s request to become a MERCOSUR full member. Venezuela must adapt to MERCOSUR C= ommon External Tariff scheme within a four-year timeframe, and will gradually lose its benefits from being part of the Andean Community of Nations.=

During 2004, MERCOSUR took a more active role in negotiating trade agreements with other economic blocs and countries:

MERCOS= UR-European Union

The two blocs had made the commitment of reachi= ng an agreement in the process of integration by October 2004, but several differences between the blocs impeded final negotiations. These are broad and include goods,= services, investments, government procurement, and intellectual property rights, among other issues.

MERCOS= UR-Andean Community of Nations (Bolivia, Colombia, Ecuador, Peru, and Venezuela)=

The agreement took place in Octo= ber 2004 and contemplates the liberalization of 80 percent of trade between the blocs within the next ten years, beginning in 2005.

ME= RCOSUR-Mexico

In July 2004, Mexico was accepte= d by MERCOSUR as an “observer country” within the bloc, toward its inclusion as associate member.

For additional information on trade regulations, customs and standards, visit the U.S. Commercial Service in Buenos Aires (C= SBA) web site at http:/= /www.buyusa.gov/argentina/en or contact CSBA at Buenos.Aires.Office.Box@mail.doc.gov.

Web Resources            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;      Return to top

Ministry of E= conomy (htt= p://www.mecon.gov.ar/default_english.htm).

Ministry of Foreing Affairs, International Trade and Worship (http://www.mrecic.gov.ar/)

= Central Bank (http://www.bcra.gov.ar/hm000000_i.asp): National self-governed institution, whose primary and fundamental mission i= s to preserve the value of the Argentine currency. It formulates and implements the monetary and financial policy and is officially not subject to the orders, guidelines or instructions of the National Executive branch of government.<= /span>

National Comission of Foreign Trade (http://www.mecon.gov.ar/cnce/): = (Comision Nacional de Come= rcio Exterior): National Bureau under the Secretary of Industry, Commerce and Sm= all and Medium Enterprises (http://www.indcompyme.gov.ar/). Applies legislation international trade-related and as a research and information center for international trade y trade policy.

National Institute of Statistics and Cens= uses (http://www.indec.gov.= ar/indec/ingles.asp) (INDEC): Tech= nical government agency responsible for the coordination and supervision of all public statistical activities taking place in the Argentine territory.=

Administracion Nacional de Medicamentos, Alimen= tos y Tecnologia Medica (ANMAT): (http://= www.anmat.gov.ar) Equivalen= t of the USFDA, the regulatory body of the Ministry of Health. It provides additional information to the general rules for a specific product.

Federal Public Revenue Administration (http= ://www.afip.gov.ar/) (AFIP): National tax collection agency that executes the tax and customs policies set by the National Executive Branch.

Association for Latin American Integration (http://www.aladi.org/) (ALADI).

= ;

Common Market of the South, (http://www.mercosur.int/) (MERCOSUR).=

Return to table of contents<= /a>

	2004	2005	2006 (estimated)
Total Market Size	145	162.4	194 &nbs= p;
Total Local Production	&nbs= p; 64	73.6 &nbs= p;	75 &nbs= p;
Total Exports	22	26	31 &nbs= p;
Total Imports	&nbs= p; 100.5	110	115 &nbs= p;
Imports from the U.S.	&nbs= p; 23.6	27	28

	2004	2005	2006 (estimated)
Total Market Size	2,050	2,255	2,415
Total Local Production	1,745	1,919	2,011
Total Exports	= 105	= 115	125
Total Imports	= 410	= 451	503
Imports from the U.S.	53<= /span>	65<= /o:p>	70

	2003	2004	2005 (estimated)
Total Market Size	150	170	190
Total Local Production	136	149.9	169.5
Total Exports	38	47.1	51,4
Total Imports	52	67.2	71.9
Imports from the U.S.	4.3	5.2	5.6

	2004	2005	2006 (estimated)
Total Market Size	1,200	1,390	1,492
Total Local Production	900	1,000	1,100
Total Exports	65	74	90=
Total Imports	365	464	482
Imports from the U.S.	145	170	132

	2004	2005	2006 (estimated)
Total Market Size	693	928	1.141
Total Local Production	162	230	276
Total Exports	15	15	17
Total Imports	531	711	881
Imports from the U.S.	129	135	123

SIZE/SECTO= R	AGRICULTUR= E / LIVESTOCK	INDUSTRY &= amp; MINING	COMMERCE	SERVICES
MICRO ENTE= RPRISE	$ 150,000<= o:p>	$ 500,000<= o:p>	$ 1,000,00= 0	$ 250,000<= o:p>
SMALL ENTE= RPRISE	$ 1,000,00= 0	$ 3,000,00= 0	$ 6,000,00= 0	$ 1,800,00= 0
MEDIUM ENTERPRISE	$ 6,000,00= 0	$24,000,00= 0	$48,000,00= 0	$12,000,00= 0

In Million US$	2004	2005	2006 (estimated)
Total Market Size	10.5	15.5	18.0
Total Local Production	5.2	8.6	9.5
Total Exports	0.3	0.6	1.0
Total Imports *	5.3	7.6	9.5
Imports from the U.S. **	0.5	2.5	3.1

FOB Base Price		US$10,000.= 00
Freight *	8%	US$ 800.00=
Insurance *	1%	US$ 108.00=
CIF =3D Dutiable Base			US$ 10,908=
Import Duty	0%	US$ 0=
Statistics Fee	0%	US$ 0=
SUBTOTAL		US$ 0=
VAT Dutiable Base			US$ 10,908=
VAT	10.5%	US$ 1,145.= 34
VAT (additional)	5%	US$ 545.40=
Profits Tax (advance)	3%	US$ 327.24=
SUBTOTAL		US$2,017.9= 8
Total after taxes			US$ 12,926=
Port Costs (on CIF) * **	6%	US$ 791.92=
Customs Broker Fees (on CIF) * **<= /span>	1.5%	US$ 197.98=
Bank Charges (on FOB) * *	2%	US$ 242.00=
SUBTOTAL		US$1,231.9= 0
LANDED COST			US$14,158<= o:p>

FOB Base Price		US$10,000.00
Freight *	5%	US$ 500.00=
Insurance *	0.2%	US$ 200.00=
CIF =3D Dutiable Base			US$ 10,700
Additional Import Duty	24.00	US 2568.00=
Import Duty (DIE)	10.0	US$ 1070.00=
Statistics Fee	0.5%	US$ 53.50=
SUBTOTAL		&nbs= p; 3781.50
VAT Dutiable Base	= ;	= ;	US$ 14391.50
VAT<= /span>	21%<= /span>	US$ 3022.15	= ;
VAT (additional)	10%<= /span>	US$1,439.2	= ;
Prof= its Tax (advance)	3%	US$431.75	= ;
SUBT= OTAL	= ;	4893.10
= ;	= ;	= ;
BOND=	= ;	US$ 8,674.60

Sectors	Sector Specialist	Phone Number
Agricultural	Eugenio Pallares	(54 11) 5777-4754
Apparel/Footwear/Textiles	Liliana Paz	(54-11) 5777-4519
Audio/Visual Equipment	Silvia Yaber	(54-11) 5777-4325
Automotive	Eugenio Pallares	(54-11) 5777-4754
Aerospace	Eugenio Pallares	(54-11) 5777-4754
Chemicals	Mariangeles Perez Manoileff	(54-11) 5777-4456
Computers	Silvia Yaber	(54-11) 5777-4325
Constructio= n = ;	Eugenio Pallares	(54-11) 5777-4754
Household Consumer Goods	Marina Millet	(54-11) 5777-4851
Cosmetics and Toiletries	Josette Fiore	(54-11) 5777-4683
Education and Training Services	Marcelo Amden	(54-11) 5777-4509
Electronic Components	Silvia Yaber	(54-11) 5777-4456
Energy	Alvaro Mendez	(54-11) 5777-4419
Environmental	Alvaro Mendez	(54-11) 5777-4419
Financial & Insurance Services	Marcelo Amden	(54-11) 5777-4509
Food Processing/Packaging	Liliana Paz	(54-11) 5777-4519
Forestry	Marcelo Amden	(54-11) 5777-4509
Furniture	Marcela Carello	(54-11) 5777-4765
General Consumer Goods	Marina Millet	(54-11) 5777-4851
General Industrial Equipment	Josette Fiore	(54-11) 5777-4683
General Services (Advertising, Retailing, Artwork, etc.)	Liliana Paz	(54-11) 5777-4519
Healthcare/Medical Equip.	Liliana Paz	(54-11) 5777-4519
Hotel/Restaurant Equip.	Diana Brandon	(54-11) 5777-4509
Jewelry	Josette Fiore	(54-11) 5777-4683
Laboratory Equipment	Marina Millet	(54-11) 5777-4851
Lawn & Garden Equipment=	Marcela Carello	(54-11) 5777-4765
Management Consulting Services	Marcelo Amden	(54-11) 5777-4509
Metalworking Equipment	Alvaro Mendez	(54-11) 5777-4419
Mining	Alvaro Mendez	(54-11) 5777-4419
Paper/Packaging/Printing	Marcelo Amden	(54-11) 5777-4509
Plastics	Mariangeles Perez Manoileff	(54-11) 5777-4456
Pollution Control Equipment=	Alvaro Mendez	(54-11) 5777-4419
Ports & Ships	Eugenio Pallares	(54-11) 5777-4754
Processed/Pet Foods	Josette Fiore	(54-11) 5777-4683
Safety & Security Equip.	Marina Millet	(54-11) 5777-4851
Software	Silvia Yaber	(54-11) 5777-4325
Sporting Goods	Marcelo Amden	(54-11) 5777-4509
Telecommunications	Silvia Yaber	(54-11) 5777-4325
Toys & Games	Jo= sette Fiore	(54-11) 5777-4683
Travel & Tourism	Diana Brandon	(54-11) 5777-4550

= Doing Business in Argentina: A Country Comm= ercial Guide for U.S. Companies

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STA= TE, 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

Chapter 1: Doing Busines= s In Argentina

Market Overview &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; Return to top

Market Challenges &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; Return to top

Market Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Market Entry Strategy= &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Chapter 2: Political and Economic Environment

Chapter 3: Selling U.S. Products and Services

Using an Agent or Distributor &n= bsp; = ; &n= bsp; = ; <= /span>Return to top

Establishing an Office = ; &n= bsp; = ; &n= bsp; = ; &n= bsp; Return to top

Franchisi= ng &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Direct Marketing &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; <= span lang=3DEN style=3D'font-weight:normal'>Return to top

Joint Ventures/Licensing &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; <= span lang=3DEN style=3D'font-weight:normal'>Return to top

Sellin= g to the Government &nb= sp; = &nb= sp; = &nb= sp; Return to top

Distribution and Sales Channels &= nbsp; &nbs= p; &= nbsp; &nbs= p; Return to top

The Retail Netw= ork

Selli= ng Factors/Techniques &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; Return to top

Electronic Commerce = ; &n= bsp; = ; &n= bsp; = ; &n= bsp; Return to top

Trade Promotion and Advertising &= nbsp; &nbs= p; &= nbsp; &nbs= p; Return to top

Pricing &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; Return to top

Sales Service/Customer Suppo= rt &= nbsp; &nbs= p; &= nbsp; &nbs= p; Return to top

Protecting Your Intellectual Property = ; &n= bsp; = ; <= /span>Return to top

Due Diligence = &nb= sp; = &nb= sp; = &nb= sp; Return to top

Local Professio= nal Services = ; &n= bsp; = ; &n= bsp; = ; Return to top

Market Research

Web Resources = &nb= sp; = &nb= sp; = &nb= sp; Return to top

Chapter 4: Leading Sectors for U.S. Export and Inves= tment

Agricultural Machinery, Equ= ipment and Parts

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Products/Services &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Airport and Ground Support Equipment

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Prospects/Services= &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Residential Building Mate= rials and Supplies

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Prospects/Services= &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Books and Periodicals

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Prospects/Services= &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Electric Power Systems

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Prospects/Services= &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Financial Services<= /h2> &n= bsp;

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Products/Services &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Food Processing and Packag= ing Equipment and Parts

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Products/Services &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Information Technology

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Argentine Market for Hardware & Consumables

Best Products/Services &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Medical Equipment and Supplies

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Products/Services &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Mining Machinery and Equi= pment

Overview = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Best Products/Services<= span style=3D'mso-tab-count:6'> &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Return to top

Opportunities &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Return to top

Resources = &nb= sp; = &nb= sp; = &nb= sp; = Return to top

Pleasure Boats

Financial Services<= /h2>
&n= bsp;