Import of Used Capital Goods

On January 9, 2013 Decree No 2646/12 was published in the Official Gazette, significantly changing the definitive import regime of used capital goods included in chapters 84 through 90 of the customs tariff nomenclature. The Decree has been in force since January 10, 2013.

The new regime sets forth three groups of goods, with import duties of 6%, 14% and 28%. As per the Decree’s ‘Whereas’, the distinction is based on the possibility of getting these goods supplied by the local industry.

Another significant change refers to the requirements imposed so as to allow the import of the goods. As opposed to the previous regime that set different refurbishment mechanisms depending on the tariff code of the good, the new Decree allows the refurbishment to be made in Argentina or in the country of origin for all the goods.

If said process is performed within the country of origin, it shall be made by the original manufacturer of the goods.

If the goods are refurbished in Argentina, the importer will have to prove that it is capable of performing the function for which it is meant through a technical report to be issued by the Instituto Nacional de Tecnología Industrial (INTI). The regime provides for a differentiated regime for goods used in the aircraft industry.

Notwithstanding the place in which the refurbishment of the goods takes place, the importer shall be the “direct user” (usuario directo) of the goods and the goods will be subject to the “Destination Control Regime” (Régimen de Comprobación de Destino) for a 4-year term, during which transfer of property of the goods, either for free or for a valuable consideration, is prohibited.

The Decree establishes the Secretaría de Comercio Exterior and the Secretaría de Industria as enforcement authorities.

In the event of infringements to the provisions of the regime, the used goods shall be re-exported.

Even though the regime applies as of the date it is in force, it does not apply to imported goods which, before the regime’s effective date, had been delivered to the customs territory or placed in customs primary zone (zona primaria aduanera).

Even though the amendment to the regime is quite recent, there are questions in connection with the functions of the INTI, the timing involved and the conditions set forth in the regime, such as the Destination Control Regime (Régimen de Comprobación de Destino) and the prohibition of transferring the property of the goods.