WORLD TRADE
ORGANIZATIONG/SCM/N/48/ARG
13 July 1999
(99-2904)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
Updating Notifications Pursuant to Article XVI:1 of the GATT 1994 and Article 25
of the Agreement on Subsidies and Countervailing Measures
ARGENTINA
The following communication, dated 25 June 1999, has been received from the Permanent
Mission of Argentina.
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AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
NOTIFICATION
1. Title of subsidy programme, in relevant, or brief description or identification of subsidy
Modernization of the Agricultural Sector, Decr ee No. 257/99 establishing a regime for the
renovation and modernization of the fleet of tractors, combine-harvesters, trailers and otheragricultural machinery and implements and Resolution No. 204/99 of the Department of Industry,
Trade and Mining establishing a register of manufacturers of tractors, combine-harvesters, trailers and
other agricultural machinery and implements.
2. Period covered by notification
Up to 30 June 1999.
3. Policy objective and/or purpose of the subsidy
Maintain the competitiveness of the agricu ltural machinery and implement manufacturing
industry by encouraging access to modernization of the agricultural sector which is going through a
crisis due to external cyclical factors.
4. Background and authority for the subsidy (including identification of the legislation
under which it is granted)
Decree No. 257 of 19 March 1999 and Resolution No. 204 of 19 March 1999.
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Consists in issuing a certificate to be applied to the payment of taxes.G/SCM/N/48/ARG
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6. To whom and how the subsidy is provided (whether to producers, to exporters or
others;  through what mechanism;  whether a fixed sum or fluctuating amount per unit; if the
latter, how determined)
The beneficiaries will be manufacturers who produce and sell tractors, combine-harvesters,
trailers and other agricultural machinery and implements and have entered these goods in the register
authorized for the purpose.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit). Where
provision of per unit subsidy information (for th e year covered by the notification, the previous
year, or both) is not possible, a full explanation
The tax certificate is equivalent to 10 per cent of the selling price of the goods for those
manufacturers of the above-mentioned machinery who sell it directly or through concessionaires or
agents.
8. Duration of the subsidy and/or any other time  limits attached to it, including the date of
inception/commencement
The regime continues in force until December 1999.G/SCM/N/48/ARG
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MODERNIZATION OF THE AGRICULTURAL SECTOR
Decree 257/99
Establishing a Regime for the Renovation and Modernization of the Fleet of Tractors,
Combine-Harvesters, Trailers and Other Agricultural Machinery and Implements
Buenos Aires, 19 March 1999
O.J. : 24 March 1999
HAVING REGARD TO File No. 060-001301/99 in the Registry of the MINISTRY OF THE
ECONOMY AND PUBLIC WORKS AND SERVICES, and
WHEREAS:The current economic programme is aimed at achieving optimum utilization of the productive
resources available for the purpose of reducing real costs and improving per capita income;
To this end, it is necessary to encourage access to modernization of the country's productive
structure, especially in the agricultural sector which is currently going through a crisis due to external
cyclical factors;
The measures to achieve these objectives must be implemented through mechanisms which
facilitate the reorganization of the sector's productive structure;
The effect will be to maintain the competitiv eness of the domestic agricultural machinery and
implement manufacturing industry;
The National Government proposes to assist this productive sector, within the framework
established, without relaxing its continuing efforts to achieve a balanced budget;
The GENERAL DIRECTORATE OF LEGAL AFFAIRS of the MINISTRY OF THE
ECONOMY AND PUBLIC WORKS AND SERVICES has taken the appropriate action within its
sphere of competence;
In accordance with the above, this Decree is enacted under the powers conferred by
Article 99, paragraph 1, of the NATIONAL CONSTITUTION;
Wherefore,
THE PRESIDENT OF THE ARGENTINE NATION DECREEES:
Article 1. A regime for the renovation and modernization of the fleet of tractors, combine-
harvesters, trailers and other agricultural machinery and implements shall be established.
Article 2. This regime shall include the manufacturers of tractors, combine-harvesters, trailers
and other agricultural machinery and implements who sell such new, domestically produced goods for
investment in national economic activities. The regime established by this Decree shall apply to
transactions completed by 31 December 1999 inclusive and shall consist in the issuing of a certificate
to be applied to the payment of taxes, equivalent to TEN PER CENT (10%) of the selling price of theG/SCM/N/48/ARG
Page 4
goods indicated in the preceding paragraph, to those domestic manufacturers of the said goods who
sell them directly or through their concessionaires or agents.
Article 3. For the purposes of this regime, the beneficiaries shall be those manufacturers who
produce and sell tractors, combine-harvesters, trailers and other agricultural machinery andimplements and have entered the said goods in th e Register to be maintained by the DEPARTMENT
OF INDUSTRY, TRADE AND MINING of the MINISTRY OF THE ECONOMY AND PUBLIC
WORKS AND SERVICES.
Article 4. The selling price of the goods designated in Article 3 shall be deemed to be that
which follows from the invoice and/or equivalent doc ument, net of taxes, discounts, rebates and/or
financial charges contained therein. From the price thus determined there shall be deducted theamount resulting from applying the TEN PER CENT (10%) mentioned in Article 2. This amount shall
be indicated separately in the invoice and/or equivalent document and shall constitute an effective
reduction of the actual selling price in accordance with the procedures to be laid down by the
Implementing Authority. This sum shall not form part of the tax base for value added tax (VAT) and,
moreover, shall not be assessed for the purpose of calculating profits tax at the time of establishmentof the tax base for the latter.
Article 5. The beneficiaries of the regime may request the Implementing Authority to issue a
certificate to be applied against the payment of taxes insofar as they have effected delivery of the
goods to the purchasers and the latter have incorporat ed them in their assets as an investment in their
farming operation.
Article 6. The certificate mentioned in the preceding article may be used by the beneficiary to
pay all of the sums due as profits tax, presumptive minimum profits tax, value added tax (VAT),
internal taxes and any other national, provincial or municipal tax already in effect or introduced in thefuture.
Article 7. In the case of import operations, the certificate may be used for the payment on
account of valued added tax (VAT), provided that it is allocated to the importation of inputs, parts
and/or components intended for the manufacture of the goods listed in Article 3 or of capital
equipment used in their production.
Article 8. The goods covered by this regime shall not benefit from the provisions of Article 2 if
they are sold for export. Likewise, if they are exported by the purchaser, the latter shall refund to the
Implementing Authority the amount deducted as a tax incentive at purchase plus the interest specified
in Law No. 11.683 and its amendments (T.O. 1998), from the date of purchase up to the verification
of exportation, in accordance with the provisions of Law No. 22.415.
Article 9. The DEPARTMENT OF INDUSTRY, TRADE AND MINING shall be the
Implementing Authority for this regime, being expressly authorized to clarify and determine its scope
in each particular case and to adopt supplementary provisions.
Article 10. The provinces and municipalities are invited to apply the regime.
Article 11. The provisions of this Decree shall take effect from the day following their
publication in the Official Journal.
Article 12. This Decree shall be proclaimed, published and transmitted to the National
Directorate of Official Records and filed. Roque B. Fernandez – Jorge A. Rodriguez –
Carlos V. Corach.G/SCM/N/48/ARG
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Department of Industry, Trade and Mining
MODERNIZATION OF THE AGRICULTURAL SECTOR
Resolution 204/99
Establishing a Register of Manufacturers of Tractors, Combine-Harvesters,
Trailers and Other Agricultural Machinery and Implements
Buenos Aires, 23 March 1999O.J.: 26 March 1999
HAVING REGARD TO File No. 060-001435/99 in the Registry of the MINISTRY OF THE
ECONOMY AND PUBLIC WORKS AND SERVICES, and
WHEREASDecree No. 257 of 19 March 1999 establishes the Regime for the renovation and
modernization of the fleet of tractors, combine-harvesters, trailers and other agricultural machinery
and implements;
It is therefore necessary to constitute a Register of manufacturers of tractors, combine-
harvesters, trailers and other agricultural machinery and implements;
It is also necessary to specify the range of goods eligible for the said regime;
For reasons of administrative efficiency, it is expedient to determine the office responsible for
issuing the certificate mentioned in Article 2 of Decree No. 257/99;
The LEGAL DIRECTORATE FOR INDUSTRY, TRADE AND MINING of the GENERAL
DIRECTORATE OF LEGAL AFFAIRS of the MINISTRY OF THE ECONOMY AND PUBLIC
WORKS AND SERVICES has taken the appropriat e action within its sphere of competence;
The present resolution is adopted by virtue of the powers conferred by Article 9 of Decree
No. 257/99;
The DEPARTMENT OF INDUSTRY, TRADE AND MINING
RESOLVES:
Article 1. There shall be established a Register of manufacturers of tractors, combine-
harvesters, trailers and other agricultural machinery and implements under the DIRECTORATE FOR
THE APPLICATION OF INDUSTRIAL POLICY of the NATIONAL DIRECTORATE OFINDUSTRY of the UNDER-SECRETARIAT OF INDUSTRY, pursuant to the provisions of Article 2
of Decree No. 257/99.
Article 2. For the purposes of registration under Ar ticle 3 of Decree No. 257/99, manufacturers
must submit an application in the form of a swor n statement containing the particulars requested in
Annex I which, in ONE (1) table, forms part of the present Resolution, without prejudice to other
information which might be required in the future.
Article 3.  Manufacturers of tractors, combine-harvesters, trailers and other agricultural
machinery and implements who apply for the pres ent regime must submit, together with theG/SCM/N/48/ARG
Page 6
application for inclusion in the Register established pursuant to Article 1, a sworn statement listing the
goods they manufacture and their prices, net of taxes, in accordance with the models which as
Annexes II and III, in TWO (2) tables, form part of the present Resolution.
Article 4. A form of enrolment in the Register established under Article 1 of this Resolution
shall be prepared and issued to registered enterp rises. This form shall be adapted to the operating
procedures set out in Order of the Under-Secretariat of Industry No. 1 of 7 January 1998 and its
amendments, in accordance with Annex IV which, in ONE (1) table, forms an integral part of this
Resolution.
Article 5. Immediately after issuing the enrolment form, the DIRECTORATE FOR THE
APPLICATION OF INDUSTRIAL POLICY of the NATIONAL DIRECTORATE OF INDUSTRYshall evaluate the description of the goods, th e corresponding MCT tariff heading and the prices
declared.
Article 6. The goods listed in the headings of the Mercosur Common Tariff (MCT) in Annex V,
which, in TWO (2) tables, forms part of this Resolution, shall be deemed to be included in the regimeestablished by Decree No. 257/99.
Article 7. The manufacturers of tractors, combine-harvesters, trailers and other agricultural
machinery and implements shall apply for the issue of the certificate specified in Article 3 of Decree
No. 257/99 by making monthly s ubmissions justifying the TEN PER CENT (10%) discount for which
Article 4 of Decree No. 257/99 provides by means of certified and authenticated copies of the sales
invoices for the goods involved, accompanied by a sworn statement by the purchaser of the goods
undertaking not to dispose of the goods purchased within ONE (1) year.
Article 8. The DIRECTORATE FOR THE APPLICATION OF INDUSTRIAL POLICY of the
NATIONAL DIRECTORATE OF INDUSTRY is authorized to sign the certificate introduced by
Article 3 of Decree No. 257/99.
Article 9. The model certificate which as Annex VI, in ONE (1) table, forms an integral part of
the present Resolution is hereby approved.
Article 10. The Under-Secretariat of Industry is author ized to extend and/or modify the list of
goods identified in the tariff headings set out in Annex V which, in TWO (2) tables, forms an integral
part of the present Resolution, when changes are ma de in the Tariff Nomenclature or for other good
cause.
Article 11. The Under-Secretariat of Industry is authorized to conclude agreements with
provincial bodies and trade entities and associations with a view to advising manufacturers of tractors,
combine-harvesters, trailers and other agricultural machinery and implements located in the provincial
administrative areas and to establish the mechanisms n ecessary to ensure that the regime is effectively
applied and properly monitored.
Article 12. This Resolution shall take effect from the day following its publication in the Official
Journal.
Article 13. This Resolution shall be proclaimed, published and transmitted to the National
Directorate of Official Records and filed.  Aliero A. GuadagniG/SCM/N/48/ARG
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ANNEX I TO RESOLUTION No. 204
SWORN STATEMENT
INFORMATION FOR THE APPLICATION FOR ENROLMENT IN THE REGISTER
OF MANUFACTURERS OF TRACTORS, COMBINE-HARVESTERS, TRAILERS
AND OTHER AGRICULTURAL MACHINERY AND IMPLEMENTS
Text of enrolment application, in the form of a sworn statement, which must include the
following basic particulars:
1.1. Full name/company name1.2. Address
1.2.1. Statutory head office
1.2.2. Administrative, business, branches
1.2.3. Location of company's manufacturing plants1.2.4. Telephone numbers
1.3 Purpose of the company with certified copy of deed of partnership or articles of
association
1.4. Tax identification (CUIT) number1.5. Marketing channel(s) (direct and/or indirect sales)
If you work wholly or partly with agents and/or concessionaires, please indicate:1.5.1. Their full name/company name
1.5.2. Tax identification (CUIT) number
1.5.3. Address(es) and telephone number(s)
1.6. Persons authorized by the company to deal with the Registry of manufacturers of
tractors, combine-harvesters, trailers and other agricultural machinery and
implements. Indicate: full name, identity document, accompanying power of attorney.G/SCM/N/48/ARG
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ANNEX II TO RESOLUTION SICM No. 204
SWORN STATEMENT
COMPANYAUTHORIZED PERSONSTATUTORY HEAD OFFICETELEPHONE NUMBER
PRODUCT MCT
HEADINGLIST PRICE NET OF TAX
ON 31/12/98NET PRICE
Application of discount
Decree No. 257/99
(Article 4)
Place and date. Signature of legal representative or agentG/SCM/N/48/ARG
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ANNEX III TO RESOLUTION SICM No. 204
SWORN STATEMENT
COMPANYAUTHORIZED PERSONSTATUTORY HEAD OFFICETELEPHONE NUMBER
PRODUCT MCT
HEADINGPRICE
NET OF TAXPRICE
Net application of discount
decree no. 257/99
Place and date. Signature of legal representative or agentG/SCM/N/48/ARG
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ANNEX IV TO RESOLUTION SICM No. 204
NATIONAL DIRECTORATE OF INDUSTRY
DIRECTORATE FOR THE APPLICATION OF INDUSTRIAL POLICY
REGISTER OF MANUFACTURERS OF TRACTORS, COMBINE-HARVESTERS,
TRAILERS AND OTHER AGRICULTURAL MACHINERY AND IMPLEMENTS
RESOLUTION SICM No.
REGISTRATION No.
COMPANY NAME
BUENOS AIRES
The sole purpose of this form is to allocate a number in the register established by Article 1 of
Resolution SICM No.G/SCM/N/48/ARG
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ANNEX V TO RESOLUTION SICM No. 204
THE GOODS IDENTIFIED BY THE TARIFF HEADINGS OF THIS ANNEX
MUST BE ASSIGNED TO AGRICULTURAL SECTOR ACTIVITIES
MCT HEADING MCT HEADING MCT HEADING MCT HEADING
73090010 84232000 84248129 84283200
73090090 84233090 84248190 84283990
84186920 84248119 84282010 84321000
84193100 84248121 84282090 84322100
MCT HEADING MCT HEADING MCT HEADING MCT HEADING
84322900 84335100 84351000 87011000
84323010 84335200 84361000 87019000
84323090 84335300 84362100 87162000
84324000 84335911 84362900 87163100
84328000 84335919 84368000 87163900
84332010 84335990 84371000 87164000
84332090 84336010 84378090 94060010
84333000 84336090 84798940 94060092
84334000 84341000 84798999 -G/SCM/N/48/ARG
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ANNEX VI TO RESOLUTION SICM No. 204
CERTIFICATE FOR THE PAYMENT OF TAXES
Article 2 Decree No. 257/99, and Ar ticle 9, Resolution SICM No. …,
CERTIFICATE No.XXX-XXXX-XXXXXTax identification (CUIT) No.: XX-XXXXXXXX/X…….
This certificate is issued under cover of the submission made under File No. … dated … .
……. OF THIS CERTIFICATE
CURRENCY AMOUNT IN FIGURES AMOUNT IN WORDS
Pesos
This certificate is valid from ……. to ……
The Directorate for the Application of Industrial Policy of the Under-Secretariat of Industry is
issuing this certificate, on the conditions set out above, in the city of Buenos Aires on the date
indicated.
Executive official Date of issue
Signature and stamp
TO BE ENDORSED AT TIME OF APPLICATION
We endorse this certificate in favour of the Federal Public Revenue Administration
Place and date Signature and stamp Capacity
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