Today, 9 August 2018, the new law "Buy Argentinean and Suppliers Development Law" No. 27,437 (the "Law"), which had been published in the Official Gazette of May 10, 2018, entered into force. The Law establishes preferences for the purchase of goods of national origin by the National Public Sector and repealed and replaced, thus, the previous regime established by Law No. 25,551 and Decree No. 5340/63.

Among the main reforms of the Law, the following should be highlighted:

  1. Defines with greater precision and broaden its scope of application, including the entire National Public Sector (pursuant to Article 8 of Law No. 24,156) and also the Judicial Power, the Legislative Power, the Public Prosecutor's Office and CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico S.A.).
  2. Includes under its scope any operation that such entities perform for the acquisition, leasing and leasing of goods.
  3. On the other hand, it keeps out of its scope -at least, at a textual level- the contracting of services.
  4. Establishes, like its predecessor Law No. 25,551, that a good is of national origin when it has been produced or extracted in the territory of the country, provided that the cost of imported raw materials, inputs or imported materials does not exceed 40 % of its gross value of production.
  5. Increases the margin of preference for goods of national origin: up to 15% for MiPyMEs companies and cooperatives registered in the National Institute of Social Economy and Associations (INAES), and up to 8% for the rest of the companies.
  6. In the event that offers that are not of national origin compete, it grants a margin of preference applied over the portions of local integration of the offer, up to a maximum of 8%.
  7. It establishes that the system of preferences is compulsory when the amount of purchase is equal to or greater than the amount established by the Contracting System of the National Administration as a limit to enable direct contracting (currently, ARS 1,300,000).
  8. Establishes a preference regime for national public works -i.e., when at least 50% of the materials used meet the requirement of goods of national origin and the company, in addition, meets the requirements of "local company with an internal capital" according to Law No. 18.875.
  9. Creates the figure of "productive cooperation agreements", in which the winners of the National Public Sector must, in certain cases, commit to contracting local goods and services and promote the participation of MiPyMEs companies.
  10. Creates the National Suppliers Development Program whose objective will be the identification of opportunities for local suppliers.

The Law must be regulated by the National Executive Power, who must also designate the enforcement authority.

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