Argentina Requires Imports of Certain Motorcycles Benefitting from Duty-Free Treatment to Face Enhanced Value Analysis
26 September 2019
Argentina unveiled a programme earlier this year to provide duty-free treatment through 31 December 2023 to incomplete, wholly unassembled motorcycles and certain other vehicles classified under NCM 8711.10.00, 8711.20.10, 8711.20.20, 8711.20.90, 8711.30.00, 8711.40.00, 8711.60.00 and 8703.21.00. The term “incomplete, wholly unassembled” refers to goods having the essential characteristics of finished or complete goods in accordance with Rule 2.a of the Harmonised System.
Argentinean authorities are now requiring products entered under this special programme to be processed through the Federal Public Revenue Administration (AFIP)’s red channel for customs value verification without the need to provide an economic guarantee for their importation. Goods processed through the red channel are subject to enhanced risk-based value analysis.
To qualify for this flexibility, importers of subject merchandise must have an industrial establishment for the production of motorcycles in Argentina and their operations must add a minimum aggregate domestic value of five percent through 31 December 2019, seven percent from 1 January through 31 December 2020, and nine percent from 1 January 2021 through 31 December 2023. Moreover, each product model imported under this arrangement must comply with a value added threshold of at least two percent. Entities wishing to take advantage of this arrangement must notify the appropriate authorities at least 30 days prior to the date of commencement of the relevant activities.
- Auto Parts
- Central & South America