Discusses requirements for products entering the country/economy temporarily. Includes information on warranty and non-warranty items shipped for repairs.
The Temporary Admission Regime (TAR) allows duty-free admission of goods to the territory for a specific purpose with the obligation to re-export them within the stipulated time as set by Customs, in accordance with the type of imported merchandise.
The eligible goods for the TAR can remain with no changes or be substantially transformed in an industrial process that has the end goal of producing an export. Examples of “transformation” include manufacturing, combination, mixture, dosage, repair, rehabilitation, assembly, or installation within a more complex final product. This includes products that are consumed either completely or partially in another process, as with oils and combustibles, disposable materials used in a production process, machinery parts, packaging, and bottling, etc. Merchandise may incur changes, which increase or lower its value, but no export charges will be levied when goods remain unchanged. If value is increased, charges will apply to the value added. Remainders with commercial value that were originated during the transformation must pay the corresponding import tariffs or be exported.
Commercial samples, packaging, pallets, containers, machines and testing devices that remain with no changes must be exported within 240 days from the date of the temporary admission. There are special permissions for capital goods used in long-term projects, for which the maximum stay under the TAR is 1,080 days. Finished goods must be exported within 360 days; however, this deadline may be extended for an additional 360 days if a justified request is presented at least one month prior to the TAR deadline. Customs can approve another one-time extension of 360 days in case of natural disaster, war, revolution, uprising, restriction in the destination country, or any other force majeure cause. Some other goods from the entertainment, cultural, educational, scientific, and transportation industries are listed as eligible for the TAR regime. Damaged goods in need of repair can also enter the country under this program to undergo repairs, contingent upon their subsequent re-exportation.
Failure to re-export goods will result in a fine but also goods will be considered imported for consumption when the agreed term for its permanence has expired without having fulfilled the obligation to re-export. Nevertheless, the importer will be exempted to re-export the goods if these are abandoned, destroyed, or useless for sale. In this case, a petition must be submitted to the Customs at least one month prior to the TAR deadline and the process will be controlled by the authority.
The transfer of property, possession, or use is not permitted. A bond is required to cover the value of import charges for the goods and will be refunded when these are re-exported.
The process to request the TAR regime is:
- Get authorization from Customs by presenting a written note for the request. *
- Register the operation in the National Customs System (SIM) detailing term, reason, authorization nr., etc.
- At the moment of the registration, pay the bond.
- Present documentation to Customs. This includes:
- Bill of Lading or Air Way Bill.
- Proforma or Commercial Invoice.
- Authorization Letter.
- Specific documents originated from SIM (consult with a local customs broker).
- Verification and final approval from Customs. Ready to pick the goods up from port/airport.
- Before the allowed time expires, cancel the TAR operation against a re-exportation one on SIM.
*Note: The written note must be accompanied by documentation supporting the TAR request. It varies depending on the type of imported goods.
Argentina is not included in the A.T.A. Carnet (temporary admission) program of the U.S. Council for International Business, which allows the importation of goods, display booths, and literature for display in local trade shows for subsequent re-export. The TAR should be used. Many trade show organizers obtain a special waiver from the Ministry of Economy by declaring an event ‘of national interest’.
TAR provides opportunities for Argentine manufacturers of exportable goods to reduce costs by not paying tariffs, VAT, or anticipated profits tax on imported goods. Nearly one-fifth of all Argentine exports are related in some way to this regime. The sectors that take most advantage are automotive, chemical, basic metallurgy, food and beverage, machinery and equipment, leather, petrochemical, and paper. The usage of this regime is highly concentrated: approximately 10 percent of the firms that have used this regime import 90 percent of the goods that qualify.