Free economic zones in Argentina

In accordance with the legislation of Argentina, special zones may be created on its national territory, which are not subject to the provisions of the current Customs Code. Their legal regulation is carried out by special laws. Such territories include free zones, special economic zones and special customs territories.

Currently, Law No. 24.331 of May 18, 1994 "On Free Zones" is in force, which determines the general provisions, objectives, procedures and other issues related to free trade zones.

In accordance with the Law, free zones are designed to promote the economic development of territories by increasing the number of jobs and attracting investment. Their activities are carried out in accordance with the country's trade policy, aimed at increasing the competitiveness of the economy and its full inclusion in the process of regional integration.

The investment policy of Argentina, including the creation of free zones, is aimed primarily at ensuring equal protection of the rights, interests and property of investment entities, regardless of the form of ownership. At the same time, the ongoing economic policy of Argentina is aimed at ensuring the principle of public-private partnership, which consists, first of all, in providing program measures of financial and material support to business entities that will operate in the territory of free zones.

Subjects of investment activity on the territory of free zones can be:

• investors;
• customers;
• workers;
• users of investment activity objects;
• legal entities and other participants in the investment process.

The following can act as investors:

• citizens;
• enterprises;
• business associations and legal entities;
• foreign individuals and legal entities;
• States and international organizations

State regulation of free zones is carried out by the Ministry of Economy of Argentina. At the same time, the Federal State Revenue Agency is authorized to regulate and control the activities of free zones by issuing regulations regarding the import and export of goods in relation to these zones.

As a general rule, the export of goods from the free zone and the import of goods into its territory are not subject to prohibitions and restrictions of an economic nature that apply to the rest of the country. In some cases, by special decision of the government, non-economic bans may be introduced for the free zone.

Goods imported into the Free Zone are exempt from import duties and other fees, with the exception of fees for services provided. Goods exported from the territory of the free zone to other countries are not subject to taxes, with the exception of fees for the services provided. At the same time, in the free zone, goods are exempted from paying taxes in force in the country for the provision of basic services (for the supply of gas, electricity, drinking water, telecommunications, etc.).

There are no special restrictions on operations with currency, securities and precious metals in the free zone. The same financial and exchange laws apply on its territory as on the common customs territory.

In free zones, warehousing of goods, trade operations, provision of services, as well as production activities can be carried out. The main purpose of such activities is the export of goods. In free zones, it is allowed to manufacture goods for industrial purposes that are not produced in the common customs territory, with the aim of importing them into the specified territory.

All types of goods can be imported into free zones, with the exception of weapons, ammunition and other goods that infringe on morality, health, safety and protection of flora, fauna and the environment.

All industrial goods undergo customs clearance in accordance with general provisions.

Forms of production activity can be:

• recycling;
• production;
• any other transformation and improvement of the product.

The creation of the necessary infrastructure is carried out at the expense of the concessionaire. The right to operate the free zone is granted through public tenders (national or international) carried out in accordance with the conditions set by the Bidding Commission.

According to the law, the concessionaire or concessionaires have the following basic rights and obligations:

• create the infrastructure necessary for the normal functioning of the zone;
• to lease land for the construction of buildings intended for various activities;
• to enter into contracts related to their activities;
• to design and construct buildings and structures for the implementation of various activities permitted in the territory of the zone;
• make changes to internal charters with the permission of the Control Committee and in accordance with applicable law;
• receive the provision of water, electricity, gas, telecommunications, heat, and other services required to operate in the free zone;
• send all necessary information about the activities of the free zone, as well as statistical data to the Control Committee;
• be responsible for violation of customs laws and free zone provisions;
• Pay the cost of customs control of the zone in accordance with the rules established by the Control Committee and the National Customs Administration.

Controlling authorities of Argentina carry out appropriate control on the territory of the free zone in accordance with the current legislation of Argentina.

The Customs Code of Argentina also provides for the possibility of creating special customs territories. The main difference between special customs territories and free zones lies mainly in the amount of duties levied in the implementation of import and export operations, as well as in the establishment of special economic regimes, regulated by separate legislative acts, to stimulate exporters.

So, for example, in accordance with Law No. 19640 of May 16, 1972, a territory was defined that received the status of "Special Customs and Tax Zone". According to this law, in the national territory "Tierra del Fuego, Antarctica and the South Atlantic Islands" a system of tax and customs privileges was established. All import-export operations carried out in this territory are not subject to duties and taxes, including taxes on sea freight. All individuals and legal entities are exempt from national taxes. In particular, the following taxes are exempt:

• income tax;
• sales tax (domestic trade);
• income tax;
• tax on free transfer of property rights;
• national emergency taxes on agricultural land;
• tax on the sale, purchase or exchange of currency;
• Any other national taxes that may apply in the future.

The following free zones currently exist in Argentina:

• La Plata, Province of Buenos Aires;
• "Cordoba", province of Cordoba;
• "Luján de Cuyo", Province of Mendoza;
• "Port of Igasu", province of Misiones;
• Justo Daract, Province of San Luis;
• Cruz Alta, Province of Tucuman;
• "General Pico", Province of La Pampa;
• Comodoro Rivadavia, Province of Chubut;
• "General Guemes", province of Salta;
• "San Fernando", Province of Chaco;
• Paso de los Libres, Province of Corrientes;
• Sapala, Province of Neuquen;
• "Sierra Grande", Province of Rio Negro;
• Villa Constitución, Province of Santa Fe;
• Frías, Province of Santiago del Estero;
• "Concepción de Uruguay", Province of Entre Ríos;
• National territory of Tierra del Fuego, Antarctica and the South Atlantic Islands (special customs and tax territory).

The territories of the following free zones are put up for auction:

• "Tinogasta", province of Catamarca;
• "General Rosales", Province of Buenos Aires;
• "Clorinda", Province of Formosa;
• "Perico La Puna", province of Jujuy;
• Chamikal, Province of Rioja;
• San Juan, San Jawn Province;
• "Rio Gallegos", province of Santa Cruz;
• Rio Grande, Province of Tierra del Fuego