Today, Executive Order N° 629/2017 introduced a number of changes to the current regulations applicable to the importation of components devoted to the domestic Oil Industry. The most important changes introduced are the following:
- Establishes tax benefits for the importation of both used (up to 10 years old) and brand-new components devoted exclusively to the local Oil Industry. Depending on the tariff code, some components are taxed at a reduced rate (14 % - 7 %) while others are not taxed at all.
- The entities entitled to these benefits are: Oil Companies (registered as such before the Ministry’s Special Register) and firms which provide services to Oil Companies.
- In order to get these benefits the importer must obtain an Import Certificate issued by the Secretariat of Foreign Commerce. It must be filed before the Customs Agency when performing any import and will be valid for up to 120 days since its issuance (the overall procedure to get the certificate would take around 20 days).
- Such certificate will be issued as long as there are no local suppliers of the components being imported.
- If there are local producers, the importer will have to commit the purchase of locally-made products whose value adds up to a certain percentage of the products imported (depending on the tariff code, said off-set percentage ranges from 15 % to 80 %)