Argentina, Macri says his farewell by removing the duties on leather exports

Argentina, Macri saluta togliendo il dazio sull’export della pelle

The last decree by Argentina’s president, Mauricio Macri, had to do with the leather industry. On Monday, December 10th, the Head of States signed decree 847. The document brings duties on raw material for the tanning industry to a lower percentage. But not all raw material: the liberalization has to do only with a quota of total production. As reads the document, “the fiscal duty generated a significant contraction of the livestock industry with a consequent loss of competitivity of Argentinian leather on foreign markets”. The goodbye present of Mr. Macri was to remove the duty on raw hides’ exports.

The last Act

This move is the last one made by Macri as Argentina’s president. The results of the elections that took place at the end of October will see a new president for the South American country, Alberto Fernàndez. The new legislation is already in effect and it will be valid until December 31st 2021, but will be applicable only to a limited number of exported leather amount: the quota set for this new law is for 2 million units, equal to 8% of the total volume.

Duties on exported leather

One year ago, the representatives of Mesa de la Carne, the reference association that represents Argentina’s players of the livestock industry, asked Macri to eliminate or at least reduce the duties placed on exported raw material for the tanning industry. Macri ad announced he would reduce the duty from 10% to 5% and by 2020 the liberalization would have been complete. 5 months had gone by, and the reduction of the duty by half still hadn’t been implemented. The segment’s representatives had complained, obtaining last May, from customs authorities, in the Salta province (which borders Chile and Bolivia), authorization to export raw hides. The privilege had already been granted for the ports in Buenos Aires and Gualeguaychú (town bordering Uruguay). A new chapter has started now.

Image from Wikipedia

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