5/24/2009
NEWS BRIEFS
Argentina Tightens Fastener Import Licenses

Exporting fasteners to Argentina is no longer automatic with a new government resolution adding procedures which may delay shipments 90 days.

Since 1999 imports of fasteners to Argentina were handled through a system of Automatic Licenses of Import (LAPI). This mechanism required the presentation of an information form identifying the destination of the imported product, after which an import license was normally granted within 48 hours.

In 2008 the Association of Metallurgical Industrialists of the Argentine Republic asked for protection measures, arguing that Argentinean producers were suffering through loss of competitiveness aggravated by the worsening global economic condition.

In March 2009 a new governmental resolution announcing that import licenses would no longer by automatic measures were justified by Minister of Production as necessary to preserve the domestic supply market, prevent damage to local industry and maintain employment.Now importers of products affected by the new regulations will have to adhere to a complex set of procedures requiring the submission of details. The new regulations do not define how long it will take for import certificates to be approved, according to Bulonero magazine.

The expectation based on previous experience is that the Secretariat of Industry & Commerce may delay approval for at least 90 days, effectively paralyzing imports of the affected product ranges.

Bulonero wrote that the situation and implications will be defined in the next few months. Importers are expected to present the argument that they are not participating in a dumping process, that free commerce should be respected, and that the capacity of domestic production is incapable of fulfilling demand. ©2009 GlobalFastenerNews.com