Decree No. 308/2022: establishment of the “Optional Copper Export Registry”.
Mining Department Report | Decree No. 308/2022: establishment of the “Optional Copper Export Registry”
Dear Sir or Madam,
Federal Executive Branch Decree No. 308/2022 (the “Decree”), published in the Official Gazette on June 14th, 2022, sets up the “Optional Copper Export Registry” (the “Registry”). The aim of the Decree is to promote mining activity by means of a voluntary export duty scheme, pursuant to Section 1.
How does the voluntary scheme established by the Registry work?
The scheme fixes the rate calculation of the Export Duty by means of the following formula:
Rate= ([IP-BV] / [RV-BV]) x 8%.
The Decree establishes the following amounts:
a. BASE VALUE (BV): USD 7700 per ton.
b. REFERENCE VALUE (RV): USD 11,500 per ton
c. INTERNATIONAL PRICE (IP): on the last working day of each month the SMN, through the corresponding agency, will publish the price of the quotation of the tonnage of grade A copper, cathodes, in the “London Metals Exchange”.
Thus, the Decree sets:
(a) 0% tax rate in cases where the IP is equal to or less than the BV, pursuant to Sec. 4.
(b) The 8% tax rate in cases where the IP is equal to or higher than the RV, pursuant to Sec. 5.
(c) The rate shall be determined by the formula when the IP is greater than the BV and less than the RV.
Under which field does the Registry operate?
The Decree establishes that the Registry will operate under the control of the Federal Mining Secretariat (“FMS”), pursuant to Sec. 2.
FMS will oversee the issuance of any complementary and clarifying rules related to the Register (Sec. 8).
Who can join the Registry?
The Decree establishes that companies incorporated or authorized to carry out their activity in Argentina, which:
(i) make investments for the start-up of new productive projects – being the FMS in charge of defining the terms and conditions in this regard; and
(ii) export goods included in the tariff positions set forth in Annex I of the Decree:
Companies that are registered in the Register will enjoy the benefits for 30 years, counted from the date of registration. (Sec. 2)
What happens to the companies that do not choose to join the Registry?
Companies that do not opt for registration in the Register will maintain the rates established in Decree No. 1060/2020. (Sec. 7).
Regarding copper and its alloys, the Decree also fixes the 4.5% export duty rate for the tariff items detailed in Annex II of the Decree:
When the Decree becomes effective?
The Decree becomes in force on June 14th, 2022.
Please, do not hesitate to contact us should you require any further information.
Marcos Moreno Hueyo