November 12, 2007

Argentina grain exports open following tax hike

Argentina officially raised the export tax on a host of grains and subproducts Friday (November 9). The tax hikes will go into effect on Monday, theoretically allowing the resumption of exports, according to a resolution published in the government's Official Bulletin on Friday (November 9).

The soy, soymeal, soyoil and wheat export registries are expected to open on Monday when the new taxes come into effect, Roagro analyst Carlos Boglioli said. Wheat exports have been blocked since March.

The corn export registry, which has been closed since June, is expected to remain shut, Boglioli said.

The government lifted the export tax on soy to 35 percent from 27.5 percent and the tax on soyoil to 32 percent from 24 percent. Wheat export taxes have increased to 28 percent from 20 percent, while the tax on corn rose to 25 percent from 20 percent. Sunflower seed exports will now be taxed at 32 percent, while sunflower seed oil exports will carry a 30 percent duty.

The export tax on wheat flour remains unchanged at 10 percent.

The government announced the increased taxes on Wednesday, when the export registry for soy was closed.

Exporters must make a sworn declaration to the government of an export sale before shipping the goods. A reference price for tax purposes and the applicable tax rate are locked in once the company declares a shipment.