Vehicle terminals will be able to import about 130 vehicle parts that are not manufactured in Argentina with a tariff of just 2%. Currently, they pay between 12% and 14%. The decision was published yesterday in the Official Gazette, "in order to improve the competitiveness of the automotive and auto parts industry," says the regulation.
On a Ministry of Production statement, it was highlighted that the initiative is the result of joint work with the Association of Automotive Manufacturers (ADEFA), the Association of Argentine Factories of Components (AFAC) and the Association of Metallurgical Industries of Argentina (ADIMRA) within the framework of the "Plan 1 Millon”. And he recalled that the Common Automotive Policy signed by Argentina and Brazil, effective until June 2020, allows States to implement tariff reductions of up to 2% for auto parts not produced in the respective countries. It also mentioned that the Common Automotive Policy signed by Argentina and Brazil, effective until June 2020, allows States to implement tariff reductions of up to 2% for auto parts not produced in the respective countries.
The statement also states that "the Government has been working on different measures to improve the competitiveness of the industry with technical assistance, financing and the reduction of non-wage tax, logistics and labour costs, especially with the automobile parts value chain". "We want to further strengthen the investment process, production and export, based on a work agenda that incorporates the development of new electric and hybrid engines and the internalization of 4.0 technologies throughout the industry”.
Date: 19 July 2018