New Promotion for Investments in the Automotive and Automotive Parts Industry

Decree 281/2023 was published in the Official Gazette on May 29, 2023, regulating the “Regime of Promotion of the Automotive - Automotive Parts Industry” and establishing benefits for exports in this sector.

The Automotive – Automotive Parts Industry Promotion Regime applies to investments in capital goods and infrastructure projects carried out by manufacturing and development companies in Argentina. The regime encompasses the manufacturing of goods such as automobiles, utility vehicles, trucks, engines, transmission boxes, automotive parts systems, parts and pieces of said goods, and industrial processes such as painting, machining and forging, among others.

To receive the benefits in the program, applicants must obtain the corresponding authorities’ approval of their investment projects.

Regarding customs benefits, the Resolution establishes that until December 31, 2031, a 0% export duty will apply to exports of goods manufactured following projects approved within this regime and to incremental exports of the goods included in the regime but manufactured by companies without an approved project.