November 14, 2007

Argentina reopens wheat and soy export registries
 

Argentina reopened the wheat, soy, soymeal and soyoil export registries Tuesday, according to a resolution published in the Official Bulletin.

The government shortened the period in which advance sales can be declared, however. Previously, exporters could declare export sales up to one year in advance of actual delivery. Now, wheat exports cannot be declared more than 90 days in advance, with a 15 day automatic extension. Exports of soy products cannot be made more than 150 days in advance, with a 30 day automatic extension.

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.

In March, the government closed the registry for new wheat exports in the face of soaring export declarations. The corn export registry has been closed since June. Last week, the government shut down the soy, soymeal and soyoil export registries before announcing an export tax increase on most agricultural exports.

The corn registry is not expected to be opened for some months.

The tax hikes announced last week are an effort to raise revenue and to shield the domestic market from soaring international commodity prices, according to the government. The export tax on soy was increased to 35 percent from 27.5 percent and the tax on soyoil to 32 percent from 24 percent. Wheat export taxes were raised 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.