Monitoring System for the Supply and Availability of Goods and Raw materials

On February 13, 2015 the Secretariat of Trade (the “ST”) issued Resolution 17, published in the Official Gazette on February 18, 2015 (“Resolution 17”).

Resolution 17 aims to obtain more extensive information so that the Price Monitor, created by Law No. 26,992 under the scope of the ST, can achieve its goal.  In other words, provide the National State with the analytical and diagnostic tools in order to intervene in favor of weaker actors in the supply chain (smaller manufacturers, consumers and users).

This means that the Price Monitor needs appropriate information in order to comply with its objectives.   Such information is provided by the private sector through the monthly Price Reporting Regime (created by Resolution ST No. 29/2014 –see “Price Reporting Regime” in Marval News   137 of March 31, 2014), and now through Resolution 17 the ST will complete the flow of information of the private companies that is needed.

Resolution 17 created the “Monitoring System for the Supply and Availability of Goods and Raw materials” (“SIMONA”) whose purpose is to preventatively detect any contingencies that may occur in the production, distribution and/or commercialization process, with the potential to substantially affect the normal supply of raw materials and/or finished goods in the National Territory or in a particular geographical area.  By means of the information that it obtains through this system, the ST will be able to identify and determine concrete actions in order to neutralize distortive effects created by the supply shortage (Section 2).

In other words, through Resolution 17, all manufacturers and/or distributors of raw materials and/or finished goods must inform the ST (by means of the SIMONA information system through the website www.mecon.gob.ar/comerciointerior/simona) within 48 hours of taking note of the obstacles specified mentioned in the previous paragraph (pursuant to Section 3 and 4).  For this purpose, they should report the supply alert by completing the electronic form (see Annex I of Resolution 17) on the indicated website.

Micro, Small and Medium-Sized Enterprises are exempt from complying with this resolution except those that manufacture or distribute medicines, raw materials for the manufacture of medicines, raw materials and medical products, or that have a dominant position in the applicable market (Section 5).

The non-compliance of this obligation to inform will be subject to sanctions provided for in Laws No. 20,680 (Supply), 22,802 (Fair Trade), 24,240 (Consumer Protection) and 25,156 (Antitrust).

On the other hand, companies that commercialize raw materials and/or finished goods (whether they are wholesalers or retailers), as well as the chambers and/or business associations will be able to inform the ST about those cases where they note a substantial impact in the normal supply of products likely to create shortages at their points of sale on a national level or in a particular geographical area (Section 7). To this end, they should inform regarding product shortages by completing the electronic form (see Annex II of Resolution 17) on the indicated website.

Consumers and users, as well as associations, can also file a claim with the ST for those cases where they note a generalized and repeated product shortage (Section 9).  To this end, they should report any product shortages by completing the electronic form (see Annex III of Resolution 17) on the indicated website.

The ST will investigate any alerts, notices and claims and can order the necessary evidence measures to verify authenticity and existence.  Additionally, the ST may also request additional information from any of the intervening parties within the supply, distribution and commercialization chain related to product shortages.  Failure to respond within the term set out by the ST will give rise to  the sanctions provided for in Laws No. 20,680 (Supply), 22,802 (Fair Trade), 24,240 (Consumer Protection) and 25,156 (Antitrust).

Additionally, it establishes that the ST can publish on its website the product shortage cases that due to their importance, duration, essential nature or dominance in the applicable market need to be reported to protect the interests of users and consumers (said publication will be limited exclusively to report the scope and duration of the product shortages, the circumstances from which they arose and –where applicable- the remedies ordered by the ST).

All sensitive and confidential information of the companies involved reported through SIMONA will only be used by the ST and its publication and/or distribution is prohibited.

Resolution 17 will enter into force on March 2, 2015.