What are free zones and what is their purpose?
The «Free Zones» are spaces in which the merchandise is not subject to the usual control of the customs service and both its «introduction» (importation) and its «extraction» (export) there are no taxes levied – except for the rates of remuneration that could be established – not achieved by economic bans. (Law 22415 – Customs Code – Art. 590) The objective of these Zones is to promote trade and industrial activity through cost reduction and simplification of administrative procedures, offering, in addition, fiscal incentives.
Activities that take place in the free trade zones
In the Free Zones, the following activities may be carried out:
Storage: the merchandise, although it can be transferred, is waiting for a further destination, and can only be the object of the operations necessary for its conservation and ordinary manipulations aimed at improving its presentation, commercial quality or for transportation.
Marketing: in addition to operations described in storage, the merchandise may be marketed, used or consumed.
Industrialization: the merchandise can be transformed, elaborated, combined, repaired or subjected to any improvement.
All kinds of goods and services may be introduced into Free Trade Zones, with the sole exception of weapons, ammunition and other species that violate morals, health, plant and animal health, safety and the preservation of the environment.
The activity of the free zones, their implementation and operation is regulated by Law No. 24,331 Free Zones – General Provisions.