Argentina: Mining - Argentine government cancels reimbursement of lithium exports from Puna region

In brief

By Decree No. 57/2023 ("Decree") issued on 3 February 2023, the National Executive Power (NEP) cancelled the 5% export refund on exports of lithium, lithium oxide and hydroxide, lithium chloride and lithium carbonate ("Benefit") produced in the provinces of Catamarca, Jujuy and Salta ("Provinces").


In focus

  • The NEP decided that the reimbursement of lithium exports by the Provinces will be 0%, considering that the sector of the economy dedicated to the extractive activities of lithium and its derivatives has registered an exponential growth by virtue of an increase in global demand.
  • This decision of the NEP is made in accordance with Resolution No. 15/23 of the Ministry of Economy, through which the competent areas of such ministry were instructed to draft the administrative act to cancel the effects of the reimbursement of exports of lithium, lithium oxide and hydroxide, lithium chloride and lithium carbonate.
  • The custom positions affected are 2805.19.90, 2825.20.10, 2825.20.20, 2827.39.60 and 2836.91.00 of the MERCOSUR Common Nomenclature (NCM) originating in the Provinces.

The cancellation of the Benefit (which was calculated on the FOB value of the goods, including all transport and insurance costs to the port of shipment of the goods, but not the taxes levied on exports) by the NEP is a measure that negatively affects the situation of projects in northern Argentina (Puna region), which will see their competitiveness and profitability margins affected by the change in the indirect tax burden that weighs on them.

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