Some voices that closely follow the dynamics of foreign trade indicated in the last few hours that the Government will apply an increase in import duties on various tariff positions. There are those who say that the measure will be implemented next week. This is so? What is really happening?
The truth is that this week Decree 557 was published in the Official Gazette, which incorporates into the national legal system all the resolutions of the Mercosur Group that were issued recently, in order to comply with the obligations agreed at the regional level, and the lists of tariff positions of the Common Nomenclature of that regional market (NCM).
Likewise, this adaptation establishes differential levels of the Export Refund (ER) in line with what was provided in the VII Amendment of the Harmonized System of Designation and Coding of Goods of the block.
What the news is about
But, one element worth explaining is what the seventh amendment is. As explained to Ambit the former Secretary of Imports of the Nation, Esteban Marzorati, “the amendments refer to the agreements made by all the Mercosur technical committees regarding the modifications that must be made to the commercial block nomenclator”. That is to say, the necessary adjustments are made to the list of goods that have special treatment within trade between Mercosur countries.
Once all the technical committees submit the decision to Mercosur, the countries are obliged to internalize the necessary amendments and that is what Argentina did through the aforementioned decree. “The amendment reflects the changes that have occurred in the production of goods over recent times. As production becomes more complex, what is done is to make the tariff nomenclature more and more specific,” says Federico Vaccarezza, an economist who is an expert in foreign trade.
Thus, what was approved is a new list, which implies that, effectively, Some products will begin to pay more taxes than before because some positions are redefined. Thus, there is a complete adaptation of the foreign trade system within Mercosur, since some tariff modifications are made.
That, on the one hand, however, on the other hand, Marzorati explains that One of the things that could happen is that, given this update, in the current complex context for the accumulation of dollars in the Central Bank (BCRA), in which the administration of imports and exports is key and an adjustment in fiscal matters is required, Argentina introduces some changes outside the list provided in the VII Amendment of Mercosur.
“We have to see what the final lists of modifications will be. Those of the amendment have already been made and it remains to be seen if some are made outside of this, taking advantage of this change that comes from Mercosur,” says Marzorati. This is possible given that Argentina has the license to raise the applicable rates for the Extrazone Import Duty (DIE) above the Common External Tariff (CET) and up to the maximum tariff consolidated before the World Trade Organization (WTO) for some products.
And through Decision No. 11/2021 of the Mercosur Council, extended the authorization granted to our country to maintain a National List of Exceptions to the Common External Tariff of up to 100 productsuntil December 31, 2028.
Likewise, through Decision No. 8/2021, Argentina was authorized, until December 31, 2028, to establish a rate different from the Common External Tariff (CET) – even 0% – for imports of goods considered in the regional scope such as Capital Goods (BK) and IT and Telecommunications (BIT).
Recently, the Minister of Economy, Sergio Massa, anticipated, within the framework of the bidding process for frequencies to provide 5G technology services for mobile telephony, that he contemplated the possibility of benefiting the operators that obtained the licenses with tax benefits in the import of material for the development of these services, so it is likely that there will be news in that regard soon.
In a few days, surely, the final definitions will be known and how the lists look after these adjustments and the different positions and tax charges that will correspond to each product and item going forward.
Source: Ambito
