Doing business

(Last updated: 05 Nov 2008)
 

Business opportunities

Austrade’s business development specialists have prepared a range of market profiles that offer potential to assist in your exporting investigations. Austrade’s in-market teams have identified opportunities for Australian exporters in various industries (see 'Profiled industries in this market' on the left side of this page).

In conjunction with the market profiles, the Opportunities Online portal may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, identified by our overseas network to Australian businesses.

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business tips

It is common that being part of a network involves reciprocity and you will be expected to use your own contacts and relationships to help others when called upon for assistance.

Although Argentine business people are time-conscious and are convinced that time is money, a sense of urgency may be viewed with mistrust or as rudeness.

It is not uncommon for meetings to be held in an informal environment, such as a bar or restaurant.

Many Argentines will not try new things until they have been thoroughly tested and accepted.

Business commitments and promises made in a social context need to be verified in a work environment.

Argentines do not generally bargain.

It is common for people to touch each other often when speaking, and to maintain little physical distance.

Argentines are interested in family, so be prepared to talk about your personal life.

Titles can be generally disregarded without offence in conversation, however, when formally addressing letters to Argentines, all names should be written in full, with titles

included.

The titles Dr (male) and Dra. (female) indicate a university graduate in medicine, law or economics, and the title Ing. indicates an engineering university graduate.

Exchanging gifts and favours is common business practice in Argentina and is a good way to get things done, however, it is recommended not to bring a business gift until a friendly relationship has been established. Never go empty-handed to anyone's home.

Please also note:

Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

On January 1, 1995, Argentina implemented the Mercosur Common Nomenclature (NCM), consistent with the Harmonised System. Most duties are ad valorem (%) assessed on the CIF value.

Tariff rates depend on whether the same goods are produced in Argentina and also on the stage of manufacture. Rates range from 2.5 per cent to 20 per cent for virtually all finished goods, with an average of 14 per cent.
 

Certain non-competing capital goods and medicines are admitted duty free. Basic food items and raw materials: 2.5 per cent; most capital goods 14 per cent; consumer goods such as clothing, motor cars and home appliances 20 per cent.

Certain primary and intermediary goods used in the manufacture of exports are exempt from duty if the final product is exported within a year. Importers should obtain approval for duty exemption from the National Institute of Technology and Industry.

Members of the regional grouping Mercosur (Southern Common Market) pay no duties on virtually all items with the exception of specifically negotiated items. This agreement was signed in 1991 by Argentina, Brazil, Paraguay and Uruguay. Chile and Bolivia have recently joined as partners and will probably become full members in the future.

A system of bilateral tariff preference agreements between members of the trade group LAIA (Latin American Integration Association) is also in place between member countries. Preference applicable on certain items only.

Textiles and some plastics are subject to specific duties, determined on a minimum CIF value per kilogram.

Customs authority contact details:
 

Administrador Nacional
Administracion Nacional de Aduanas
Calle Azopardo 350
Buenos Aires
Tel: +54 11 4331 7330

Non-tariff barriers

Import restrictions

Although there are almost no prohibitions for imports, certain products require an import licence or approval of the appropriate ministry. Some of the products requiring licences are pharmaceuticals, foodstuffs, insecticides, medical devices, defence materials, etc.

Importers must be listed with the National Tax Authority and obtain an importer license number.
 

A quota on motor cars is still in effect. However, the quota has been gradually increasing in recent years. There are also quotas on paper, pulp and footwear.

In February 1999 the government implemented an import license regulating products such as certain chemicals, plastics and plastic products, footwear, wood, apparel, newspapers, furniture and toys. The objective is to identify potential problem shipments, ie. possible under-invoicing or other unfair trade practices.
 
There are no restrictions on foreign exchange, which is usually channelled through banks.

Product certification, labelling and packaging

Labelling and marking

Labels of all products commercialised in country should contain the name and description of the product and country of origin, and quality or purity and net weight if the product is edible. Labels should also be in Spanish or have a sticker/label with the above-mentioned information in Spanish attached to the package.

The National Chemistry Board and the Ministry of Health and Social Action must approve imported foods packaged for consumption. No packing likely to carry disease should be used. Maize and sorghum straw are prohibited.

Exterior packing cases should bear shipping marks and numbers on at least two sides (not top and bottom) with an indication of gross and net weights in metric units. Repetition of numbers in packages shipped under one bill of lading is prohibited.

Labelling on products (preferably in Spanish) must indicate the country of origin, the quantity, quality, and the measurement or net weight unit in the metric system. Where applicable, the purity or mixture should be shown on the label. The approval number, issued by the Argentine Health Ministry should also be shown on the label of affected products (see 'Public health requirements' below)

Importers are required to submit to the Bureau of Commerce and Industry samples of labels, container, wrapping and advertising material relating to any product sold at retail. Argentine branches of foreign companies must provide, in addition to the above, a certificate issued by the home office and legalised by an Argentine consulate, stating that the accompanying label is the same as the one used on the home country. Country of origin must be indicated.

Many products such as fruits and vegetables, textiles, hats, gloves, shoes, metal manufactures, bricks, tiles, glass manufactures, furniture, toys, paper products and fertilisers are subject to special labelling requirements which should be confirmed with the importers prior to shipment. 

Special certificates

Shipments of livestock, live plants and seeds, fruits, vegetables, meats, offal and certain other foodstuffs, must be accompanied by sanitary certificates, issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service (AQIS), Commonwealth Department of Agriculture, Fisheries and Forestry-Australia or the relevant state departments of agriculture.

In addition, many of the above products require approval by the Argentine Agriculture Ministry and inspected on arrival by the Argentine Quarantine Service (SENASA).

An official analysis certificate (certificado de análisis), approved by the Argentine Consulate and stating the degree of purity, is required for imports of certain raw materials (tariffs on raw materials vary according to purity).

Certificates of analysis, issued by the Argentine Health Ministry, are required for the registration of insecticides, foodstuffs, pharmaceuticals, drugs and veterinary products (see 'Public health requirements'). Consular legalisation of the above documents may be required.

A certificate of end-use (certificado de destino) is required for certain items for purposes of tariff identification or for exemption from prior deposit.

The importation of artificial sweeteners is limited to authorised importers (see 'Public health requirements'). A certificate of aging is required for spirituous beverages.

Methods of quoting and payment

Quotations should preferably be in US dollars FOB or C&F.
 
Payment terms of 180 days are desirable. The import of capital goods is covered by special procedures.

The method of payment will be stipulated in the contract. In general, companies should insist on confirmed irrevocable letter of credit unless cash has been deposited at an Australian bank for release on shipment, or partly as a deposit prior to manufacture and the remainder in shipment. Importers will ask for credit terms because of high rates of
interest in Argentina.

Payments may be made in any convertible currency.

Documentary requirements

Commercial invoice

Commercial invoices must accompany all shipments. An original and three copies (in Spanish or English) are required.
 

The following details are to be included and must be listed separately:

• Number of invoice
• Place and date of execution
• Full name and address of exporter
• Consignees and forwarding agent (if any)
• Place of export to, and entry in Argentina (port or city)
• Country of origin
• Means of transport
• Date of departure and carrier's flag
• Full description of the goods and quality and nature of the packages
• Unit price of article
• Marks and numbers on packages as in the bill of lading
• Gross, legal and net weights, (preferably in kilos)
• Net FOB value and all other expenses such as internal freight and insurance; Australian customs tax (if any); handling; other insurance (if relevant). Each of these items should be listed separately.

Where applicable, composition of such items as fabrics, chemicals, and other liquids must be stated clearly on the commercial invoice. No generic terms, such as 'medicinal products', 'spare parts', 'textiles', etc may be used unless followed by an exact description of the product.

Each copy of the invoice must be signed in ink by the authorised officer of the exporting firm. The officer's name and position in the firm should be clearly typed beneath the signature. Fax signatures are not acceptable.

Bill of lading

Three originals plus copies are required. Consular legalisation is not required. All relevant details regarding the shipments must be included and these must agree with the other documents. The bill should show whether freight has been prepaid or is subject to payment at destination. To Order bills are accepted with the following exceptions:

• To the order of a bank
• Arms and ammunition consignments 
• Perishable goods
• Fax signatures are not acceptable 

Packing list

To obtain customs clearance, four copies of both the packing list and the commercial invoice must be produced. The contents of each package should be detailed unless the contents of all packages are identical. Separate legal, gross and net weights must be shown. The packing list should be completed in Spanish if possible. English may be accepted if the authorities consider a translation unnecessary. It must bear the following signed declaration: 'We swear that all the information contained in this packing list is true and correct'. 

Certificate of origin

Merchandise proceeding from Mercosur or LAIA countries has to be accompanied by a certificate of origin stating that the product has been manufactured in a member country. The certificate is not usually required for imports from other countries. If one is requested, a recognised Chamber of Commerce should certify it. An original and three copies are usually required.

Public health requirements

Imports of food products must comply with the Codigo Alimentario Argentino for safety and wholesomeness. The National Administration of Medicaments and Food is responsible for the approval of food products and pharmaceuticals.

Animal-related products, plants and plant materials must enter through specified ports and are subject to inspection on arrival. Most primary products require certification prior to importation (see 'Special certificates'). The regulatory bodies for these inspections are the National Service of Animal Health and the Argentine Institute of Vegetal Health & Quality.

Raw foods such as fruit, vegetables, nuts and grains must be approved by the Agriculture Ministry and inspected upon arrival. The Agriculture Ministry must also approve frozen meat and fish imports.

All foodstuffs and pharmaceuticals must be registered with the Argentine Ministry of Public Health. The importer will be required to submit a container, label, sample, completed entry form, and a technical report on the product. On approval, a number will be given which must appear on the label of approved products. Pharmaceutical registration must be renewed every five years. Registration of these products is the importer's responsibility but the exporter must supply all data on commodities.

Electrical products for home use must obtain prior approval from the Argentine Institute of Standards (IRAM).

Insecticides and veterinary products must be registered with the Secretariate of Agriculture and Livestock prior to import.

The importation of artificial sweeteners (such as saccharine) may only be made by people or companies registered with the Secretary of State for Public Health, and who hold the appropriate permit issued by this body.

Insurance

If the transport risk is borne by the Argentine importer, goods must be insured in Argentina with a licensed insurance company.

Taxation

The Australian-Argentine Double Taxation Agreement came into effect in 1999, and is for the avoidance of double taxation to income flowing between Australia and Argentina. This Agreement assists Australian companies with subsidiaries or branches in Argentina to be taxed in Argentina and in Australia for the incomes generated by their foreign operations, and vice-versa. 

A surcharge of 0.5 per cent called 'statistical tax' applies to most imports coming from third countries. However, there is a maximum amount for this tax (US$500 for imports exceeding US$100,000).

A value added tax (VAT) of 21 per cent, assessed on the duty-paid value, is applied to most goods. A reduced rate of VAT applies to many agricultural and mining products, medicines, educational materials and certain chemicals. Some basic products such as bread, milk, newspapers and books are exempt from VAT.

An additional nine per cent or 10 per cent VAT must be paid for all goods imported for resale.

Three per cent anticipated profits tax on all retail goods is paid, unless goods imported by direct users.

Most provincial governments also apply a similar rate on most goods, known as Gross Income Tax. The tax varies in each province.

Federal excise taxes are imposed on a number of products including:

• Cigarettes - 60 per cent 
• Whisky - 12 per cent 
• Hard liquor - 6 per cent 
• Beer - 4 per cent 
• Soft drinks - 4 per cent
• Microwave ovens - 17 per cent 
• Electronic products - between 10 per cent and 24 per cent

Stamp tax is collected on sales contracts as a percentage of the value of the contract. Rates are dependent on the type of product being sold.

Motor vehicles are subject to an import surcharge. Special tax is applied to forest products and their derivatives (newsprint is exempted). Rates range from four per cent to 10 per cent assessed on the CIF value.

Fundacion Invertir has a more detailed explanation of the Argentine Taxation System, which can be complex at times.