Global Trade Alert

In 22 October 2014, the government of the Republic of Argentina, viaResolution 803/2014, reduced export taxes for hydrocarbon goods and their derivatives (crude oil or bituminous minerals). 
According to the resolution, the novel export duty will be as follows (old duties stated in brackets):

• 13 percent if the international barrel price is lower than $80 per barrel or $503 per cubic meter;
• 11.50 percent if the price is lower than $75 per barrel or $472 per cubic meter, and
• 10 percentif the price is lower than $70 per barrel or $440 per cubic meter. 

Prior to the announcement of this resolution, the export duty was 45% if the international pricewas lower than the reference value. In case the international price exceeded or equaled the reference value, the export tax was calculated via the following formula:International Price - Valor de Corte (Cutof Value)/ Valor de Corte (Cutof Value).