In Argentina, a sharp drop in import tariffs has begun

The National Government implemented a reduction in import tariffs for a wide range of products, such as home appliances, tires, industrial supplies and household goods.

This measure, made official through Decree 908 published on October 16, 2024 in the Official Gazette, seeks to improve competitiveness, strengthen trade and offer better prices to consumers.

Objective of the tariff reduction

Decree 908, signed by President Javier Milei, Chief of Cabinet Guillermo Francos, and Minister of Economy Luis Caputo, highlights that this decision is “timely and convenient” to balance productive incentives and improve competitiveness. In addition, it will allow consumers to have access to certain goods at more accessible prices.

Products covered by the tariff reduction

The reduction covers a total of 89 products, distributed in different categories ranging from household appliances and tires to plastic and textile inputs.

These products previously had tariffs higher than those set by Mercosur.

Among the most outstanding items are:

Small appliances: fans, carafes, coffee makers, LED appliances, heaters, kettles and electric ovens are included. Tariffs on these products are reduced from 35% to 20%.

Tires for automobiles will see a reduction from 35% to 16%, while tires for motorcycles will go from 35% to 20%. This reduction will be gradual, with three tranches of 5 points every four months for car tires and two tranches for motorcycle tires.

Plastic inputs: PET and ABS, key materials for the production of packaging and white goods, will see their import tariffs reduced from 12.6% to 6%.

Textile inputs: lycra will have its import tariff reduced from 18% to 2%, while polyester will be reduced from 18% to 6%.

Impact on household products and other goods.

The measure also includes everyday products such as ground coffee, energizers and sunglasses, which will see their tariffs reduced from 35% to 20%.

In addition, sun creams and deodorants, which were previously taxed at 25%, will now be taxed at 18%.

Capital goods and machinery

In addition to the above-mentioned products, the reduction of tariffs reaches 38 industrial machinery, including industrial furnaces and boilers.

This equipment, which had tariffs of between 12.6% and 35%, will now have rates of between 2% and 12.6%, which will allow a greater investment in capital goods with more competitive conditions.

Inclusion in the national list of exceptions to the common external tariff.

The tariff reduction includes several products in Mercosur's National List of Exceptions to the Common External Tariff (CET).
This list allows up to 100 products to have tariffs below those established by the regional bloc, facilitating the importation of essential goods without being affected by Mercosur's high customs costs.

Benefits for consumers and industry

The Government's decision aims at multiple benefits. On the one hand, end consumers will have access to higher quality products at more competitive prices, while domestic industries will have access to key inputs for their production at lower tariffs.

This will allow for greater competitiveness in the domestic market and a strengthening of foreign trade by reducing tax barriers affecting the import of essential goods for various industrial sectors.

Source

Posted Using InLeo Alpha