· Introduction:
By means of Decree 86/2023, published in the Official Gazette on 02/22/2023, the Executive Branch reestablished the Incentive Regime for the Domestic Supply of Fuel (“RIAIC”), created by Decree N° 329/2022, for the importation of fuels.
We recall that the RIAIC was established as a measure to guarantee the incremental supply and the compensation of the refineries’ extraordinary costs, in view of a complex international context.
In this case, the reestablishment of the benefits of said regime for imported fuels, is decided with the purpose of ensuring the above said purpose and to guarantee the proper supply of the domestic market, due to the gap existing between the gasoil and the imported gasoline price and the price of the liquid fuels made in local refineries, with the purpose of safeguarding the balance between both products, thus avoiding an increase of their price in the dispenser.
Next, we will analyze the most relevant aspects of the new regulations.
· Subjects that may join the RIAIC:
· Refining companies and/or integrated refineries referred to in section 1st of Decree N° 329/22 under the terms to be set forth by the Enforcement Authority (i.e., the Secretariat of Energy):
· Surplus domestic suppliers of gasoil and/or gasoline grade 2 or grade 3 with respect to their capacity to produce gasoil and/or gasolines, with full use of their refining installed capacity, and
· Those who obtain on a monthly basis a Mobile Bimonthly Participation in the Domestic Supply of gasoil and/or gasolines of not less than their average annual participation in the domestic supply of gasoil and/or gasolines of year 2022 in more than 1 %.
· Small Refineries of Affected Regions –PReRA– located in regions with deficiencies in the domestic supply of gasoil and/or gasolines exceeding the national average which for reasons related to their geographical location, the declining situation of the crude oil basin that mainly supply them and/or for the lack of local crude oil offer at an arm’s length basis are unable to make full use of their refining capacity if they obtain, in the last 2 months, an average monthly volume of supply to the domestic market of gasoil and/or gasolines exceeding at least 10 % of their average monthly volume of supply of year 2022, under the terms to be defined by the Enforcement Authority.
· Request of amount for importation of gasoil and gasolines. Limitations:
Decree 86/2023 sets forth that the subjects that join the Regime may request an amount equivalent to the sum they should pay for the Tax on Liquid Fuels and Carbon Dioxide for gasoil and gasolines imports, with the following limits:
a. For imported gasoil: up to a maximum equivalent to 20 % of the sales in the domestic market of imported gasoil, completed between January 1st, 2023 and February 28, 2023, both dates inclusive.
b. For imported gasolines: up to a maximum equivalent to 17 % of sales in the domestic market of imported gasoline, completed between January 1st, 2023 and February 28, 2023, both dates inclusive.
In case of integrated refineries, the Decree provides for the addition to the amount mentioned above, of an amount equivalent to the one resulting from multiplying the addition of the fixed amounts of the Taxes on Liquid Fuels and Carbon Dioxide applicable to gasoil and/or gasolines, for 150 % of the crude oil volume supplied to refineries identified by the Enforcement Authority as Small Refineries of Affected Regions.
It sets forth that the amount may be applied only to the sums to be paid as Taxes on Liquid Fuels and Carbon Dioxide for taxable events and imports completed within 90 days following their crediting, under
the terms to be set forth by the Enforcement Authority and the Federal Administration of Public Revenues (Administraciòn Federal de Ingresos Públicos -AFIP-), an autarchic entity within the Ministry of Economy, and it cannot generate a favorable balance.
· Application to the RIAIC:
It is provided that the provisions of the Decree will apply to all the applications made within the term to be set forth by the Secretariat of Energy -as Enforcement Authority – and by the gasoil and/or gasolines grade 2 or grade 3 import transactions and for those corresponding to the transfer of crude oil to PReRA, carried out within the period comprised between January 1st, 2023 and February 28, 2023, both dates inclusive, and the Enforcement Authority may extend said last term for TWO (2) more months.
· Effective date of the Resolution:
This measure was effective as from the date of its publication in the Official Gazette, namely 02/22/2023.