Tax Reform Update: Argentine Customs Code

There are some comments to be made on certain special regimes, smuggling misdemeanors and customs proceedings.

In relation to special regimes, the defective goods replacement regime was loosened to include not only imported fully defective goods but also imported goods that do not reach the standards required. The reform also provides for a special regime to get a refund of the import duties paid for the defective goods and some waivers to the obligation to keep or replace the goods imported.

The main modification to customs infractions has been updating the amount by which criminal smuggling becomes a mere smuggling misdemeanor (ARS 500,000 for all goods but tobacco, at ARS 160,000). Changes were introduced to relieve the amount of criminal smuggling cases carried out by the federal judiciary and allow Customs to investigate them itself.

The most significant changes can be found in the customs proceedings regulations. First, we should point out that this piece of legislation finally includes the use of electronic means for notifications and filings.

Among the modifications to proceedings to challenge customs tax claims (“impugnación”), we must point out the return of the suspensory effect of these filings when challenging the claims for excess refunds and automatic fines.

It is also worth mentioning the new possibility of avoiding the customs stage matters related to these proceedings and on tax devolution proceedings, letting the importer/exporter access Tax Court and/or the federal judiciary directly when the decision was issued by the Customs Director General or when customs agents issue decisions directly grounded on resolutions or instructions from the Director General.

Several modifications were made to the proceedings to be carried out before the Tax Court for customs matters, inserting a new evidence audience the parties must attend and new specific deadlines for the body to carry out certain procedural acts, which were not previously determined.

The reforms, even though they do not fully address other relevant issues, are intended to speed up the proceedings and to include electronic means of communication between Customs and importers/exporters.