Argentina Approves Major Import Tariff Reduction for Natural Gas Powered Trucks

| Argentina: Buenos Aires | Source: Government of Argentina

Galileo LNG dispenser to Scania TruckThe Government of Argentina has reduced to between 2% and 5% the importation tariffs for trucks powered by Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and biogas/biomethane, and associated components, through Decree 440/2019 as published in the Official Gazette. The Decree brings into effect the ‘Thirty-eighth Additional Protocol’ pertaining to Argentine Standard Agreement No. 00014/2008, which set the previous tariff at 35%.

Effective 1 January, 2008 under the terms of agreement for Mercosur, the trade pact existing between several South American countries since 1991, Decree 415/91 imposed a tariff of 35% on automobiles and light utility vehicles (up to 1500kg load capacity), buses, trucks, tractor trucks for semi-trailers, chassis with engine (including those with cabins), trailers and semi-trailers, and car bodies and cabins.

Decree 440/2019 also determines limits upon imports: a global quota of 800 trucks, 200 gas engines for trucks and 200 chassis with a gas engine of minibuses. This decree covers import operations carried out up to December 31, 2021.

Specifically:

  • ARTICLE 2: “The goods covered by this standard are those new complete trucks, without use, as well as new engines, without use, of vehicles categorized as “N2 or N3” and chassis with new engines, without use, of vehicles categorized as “M- MINIBUSES”, according to the classification provided in Annex A of Decree No. 779 dated November 20, 1995, regulating Transit Law No. 24.449 and its modifications, in all cases with engine designed for the use of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) or Biogas as fuel.”
  • ARTICLE 3: “Establish as a maximum limit of new total units, without use, that may effectively be imported under this measure, EIGHT HUNDRED (800) trucks that use conventional internal combustion engines designed for the use of gas as fuel, TWO HUNDRED (200) truck engines with gas engines and TWO HUNDRED (200) chassis with minibus engines with gas engines.”

By facilitating the importation of these commercial vehicles, the Government considers that increased activity in the natural gas mobility sector will eventually lead to the development of a domestic commercial vehicle manufacturing sector.

The Government further acknowledges the evolution towards the use of alternative technologies in the propulsion of vehicles, recognising that it is natural gas that has positioned itself not only as one of the most friendly variants with the environment, but also for its reduced cost compared to the current diesel and the use of cleaner energy.

At the beginning of this year, through ENARGAS (National Regulatory Gas Entity) Resolution 42/19, the “Procedure for the qualification of imported vehicles powered by the use of natural gas” was made based on an order made by local subsidiaries of Scania and Iveco.


Related article: Lid Lifted off CNG and LNG Vehicle Imports for Argentina

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