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Argentina Lowers Export Taxes on Many Specialty Crops

The Government of Argentina recently announced adjustments to export taxes on many specialty crops, including apples, pears, citrus fruits, blueberries, tomatoes, broccoli, cauliflower, nuts, and alfalfa intended to improve the international competiveness of these products.

Argentine Government Seeks to Boost Exports of Specialty Crops:

On Thursday, December 31, 2020 the Government of Argentina published Decree 1060/2020 which made adjustments to the export tax rates for many specialty crops as well as some manufactured goods. After several rounds of export tax changes in recent years the government is attempting to standardize export tax rates for many products at 0%, 3%, 4.5%, and 9% to avoid varying export tax rates among similar products. Previous export tax changes had given some products exchange-rate linked export taxes that had eroded in value as the Argentine peso devalued against the dollar.

The stated rationale for the policy change is to encourage exports of added-value products and products whose increased production will result in higher levels of employment, and for which increasing exports won’t raise food costs. The government also hopes to encourage investment in these same sectors. Major structural issues such as high fixed operating costs, lack of investment, and currency controls have reduced Argentine competitiveness in many specialty crops over the years, so this measure will be limited in its capacity to boost exports in the short run. Most fruits and vegetables have had export tax rates lowered from 5% to a 0%.

The list below, by HS Code Chapter, summarizes Annex 1 of Decree 1060/2020 where information on tax rates for specific products can be found. Export tax rates for most major field crops were unchanged, though the decree mentioned the need to adjust rates for certain commodities currently regulated by an expiring decree. Care should be taken to note if a specific HS code is listed in this decree or past decrees.

Chapter 1 – Live Horses, Cattle, Primates, Dolphins, Pet Birds 9%;

Chapter 2 Beef, Horse, Poultry Meat 9%; Sheep and Goat Meat 0%;

Chapter 3 Various Fish – 9%; Tilapia, Trout, Carp 0%;

Chapter 4 Fluid Milk 9%; Ultra High Temperature Milk, Yogurt, Butter, Cheese 4.5%; Honey 0%;

Chapter 5 Semen & Embryos 4.5%;

Chapter 6 Flowers and bulbs 4.5%;

Chapter 7 Tomatoes, Cauliflower, Broccoli, Brussel Sprouts, Carrots, Cucumbers, Chickpeas, Beans, Asparagus, Eggplant, Celery, Peppers, Spinach, Artichokes, Olives, Pumpkins, Squash, Potatoes, Sweet Corn, Onions, Mushrooms, Garlic, Vegetable Seeds 0%;

Chapter 8 Nuts, Plantains, Pineapples, Avocados, Mangos, Oranges, Mandarins, Clementines, Grapefruit, Lemons, Limes, Watermelon, Papayas, Apples, Pears, Quince, Sour Cherries, Peaches, Nectarines, Plums, Strawberries, Raspberries, Blueberries, Kiwis, Passionfruit, Persimmons 0%;

Chapter 9 Coffee, Pepper, Vanilla, Cinnamon, Cloves, Nutmeg, Mace, Cardamom, Saffron, Turmeric 4.5%; Tea, Paprika, anise, cumin, coriander – -0%;

Chapter 10 – “Other” Wheat, Rye, Barley, Corn, Oats, Sorghum – 12%; Grain seeds for planting, Buckwheat, Millet 4.5%; Quinoa 0 %

Chapter 11 Malt 9%; Flaked Grains and Germs4.5%; Buckwheat flower 0%

Chapter 12 Seeds of Soybeans, Peanuts, and Sunflowerseed for planting, Ginseng, Sugarbeets, Sugarcane 4.5%; Hops, Alfalfa pellets 0%

Chapter 13 Various Gums, Saps, & Pectins 4.5%
Chapter 14
Bamboo, Vegetable Plaiting Materials 4.5%
Chapter 15
Glycerol 9%; Olive oil 0%;
Chapter 16
Sausages, Hams, Other Prepared & Preserved Meats, Sardines, Tuna 4.5%

Chapter 17 Refined Beet & Cane Sugar, Glucose and Fructose Syrups, Non-Chocolate Confectionary 4.5%

Chapter 18 Chocolate ingredients 4.5%
Chapter 19
Cereals, Pastas, Tapioca, Cuscus 4.5%

Chapter 20 Pickled Cucumbers & Mushrooms, Preserved fruits and vegetables 4.5%; Preserved Peas, Olives, Tomatoes, Fruit Juices 0%

Chapter 21 Coffee Extracts, Yeasts, Sauces, Food Preparations and Ingredients 4.5%; Tea & Yerba Mate Extracts 0%

Chapter 22 Mineral Waters, Beer, Champagne, Wine, Liquor, Vinegar 4.5% Chapter 23 Livestock Feed 12%; Pet Food 4.5%
Chapter 24
Tobaccos 12%, Cigarettes & Cigars 4.5%
Chapter 41
Hides, skins, and leather 4.5%

Chapter 51- Wool 4.5%, Yarn – 3.0%

Chapter 52 Raw Cotton 12%; Carded Cotton and cotton waste 4.5%; Cotton thread and yarn 3.0%

— By Benjamin Boroughs, USDA Foreign Agricultural Service

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