Argentina’s Customs Launches Probe into Soybean Imports Overbilling

Argentina’s Customs Office reported on Sunday (11/26) that it is investigating seven major agro-industrial companies that may have engaged in overbilling on soybean imports from Paraguay.

The agency stated that the effect of these maneuvers is the hollowing out of the taxable base of operations in the country and the improper leakage of foreign exchange, with 3,000 operations currently under analysis.

According to the Customs investigation, the documented operations constitute violations of Article 954 of the Customs Code, which deals with inaccurate declarations, making these companies liable for significant fines.

In all cases, improper triangulations are suspected, as the maneuver involved importing merchandise directly from Paraguay, with re-invoicing by intermediaries based in other countries.

In the investigated operations, the merchandise was imported to Argentina for processing and then re-exported. Under the temporary import regime, the value of the input entering the country is deducted from any export duties on the product manufactured in Argentina.

In this way, overbilling on imports allowed the investigated companies to deduct almost $4 million more than they were entitled to.

According to the agency’s report, the declared total value would amount to $16,210,925, but its actual value would be $12,312,279, resulting in a total overbilling of $3,898,646, or 31.66% of the actual value.

The companies under investigation, as reported by Customs, include Aceitera General Deheza, Bunge Argentina, Cargill, Cofco International, LDC Argentina SA (Louis Dreyfus Company), Molinos Agro SA (Molinos Río de la Plata), and Viterra Argentina SA (linked to Vicentin).

As an example of the operation, a case was highlighted in which the actual circuit of the merchandise entered Argentina directly from Paraguay for processing in the local agro-industrial complex.

However, the billing circuit was carried out with an intermediary based in Switzerland who declared an initial trajectory of the merchandise exported from Paraguay to Chile at $473 per ton, only to later go through the import process from Chile to Argentina at a value of $625.60.

This would justify a process resulting in an overbilling of 32.02%.

National authorities stated that “nothing can explain the commission of more than 30% charged by the intermediary regarding the merchandise acquired in Paraguay.”

It is presumed that the true objective of the maneuver is to transfer abroad funds obtained at the official exchange rate illicitly.

Source: Télam

Click here to read the original text in Spanish: https://www.telam.com.ar/notas/202311/647820-aduana-investigacion-sobrefacturacion-importacion-soja.html

Sharing is caring!