Importing Guidance

[Pensador]

I am looking at opening a distributorship for a business equipment company down here. I will need to import from the US to Argentina metal parts and components and some inks and other chemical products from the US. Any Expats here ever engaged in this sort of project? Anyone know any good importation consultants?

Any pointers or experienced info would be greatly appreciated

 

[Girino]

Are you out of your mind or did you use to live in Uruguay until yesterday?

 

[Gringoboy]

I won't be as blunt as Serafina and without wishing to sound negative, the business of importing in this country is extremely difficult, to put it mildly.
Unless you're backed up by some huge corporation, the hurdles are usually insurmountable.
A friend of mine runs what used to be a very successful business which relies almost exclusively on importing from China in 20' container loads.
Over the last few months he has been denied import permits so many times or the container has been held in customs by La Campora or he has been told to pay bribes of more than US$10000 to release said containers.
On that basis he can no longer afford to be held hostage by the state and is now winding up his much loved business, laying off the staff and locking up the premises.

 

[Dublin2BuenosAires]

I am looking at opening a distributorship for a business equipment company down here. I will need to import from the US to Argentina metal parts and components and some inks and other chemical products from the US. Any Expats here ever engaged in this sort of project? Anyone know any good importation consultants?

Any pointers or experienced info would be greatly appreciated

sit tight, go again next year. Spent some time talking to aduana agents recently. First you'd need to get someone to categorise your products for tax purposes, next you'd need to register as a new importer (red channel = paper and physical inspection every time), thirdly by dint of being a new import agent set aside a chunk of change for bribes. This was the advice given to me. I was looking at btw 15 to 30 % tax on each item depending on what it is.

Given the industrial nature of your products, I would suggest you'll run up against some very hefty protectionist import restrictions. You may even have to prove the products simply do not exist here.

seriously, not the time.

 

[Pensador]

I am well aware of the issues as stated I am "looking at it". Yes backed by a huge corporation and I see imported products and businesses functioning on some level with the same types of imported products. So far as I have heard the best way in is through Paraguay but thats a land locked country. Certainly do not want to pay bribes or any of that.

I was just curious if anyone here had any experience with this beyond the horror stories we hear. Which I have seen some of that myself. Best to get good legal consultation. Most likely it can be done just have to get the right connections I guess. But thanks for the posts.

 

[Dublin2BuenosAires]

paraguay to b.a is a long road, factor in additional risk of highway robberies.

 

[Pensador]

sit tight, go again next year. Spent some time talking to aduana agents recently. First you'd need to get someone to categorise your products for tax purposes, next you'd need to register as a new importer (red channel = paper and physical inspection every time), thirdly by dint of being a new import agent set aside a chunk of change for bribes. This was the advice given to me. I was looking at btw 15 to 30 % tax on each item depending on what it is.

Given the industrial nature of your products, I would suggest you'll run up against some very hefty protectionist import restrictions. You may even have to prove the products simply do not exist here.

seriously, not the time.

Thanks for the post Magico!

Interesting we were thinking about bringing in only the patented parts which are small and not very heavy and saying these cannot be manufactured here because of the patents. And the rest of the parts we would be manufacturing in the country. Which are just fairly simple large steel parts very easy to contract that manufacturing out and more affordable than in the US actually. I would estimate the parts we would have to bring in would be no more than 200 to 400 killos per shipment per month. The inks and chemicals we could bring through another company that does that.. of course it is going to cost it always does.

But you are right might be best to wait but we can work on plan between now and then.

 

[Pensador]

paraguay to b.a is a long road, factor in additional risk of highway robberies.

Yeah we looked at and thought distribution from Corrientes or Ressistancia. Stealing the parts would be worthless to a thief really unless want to sell them as scrap which I would not put that past the average Tigre!

 

[sleslie23]

paraguay to b.a is a long road, factor in additional risk of highway robberies.

I think the worst aspect of moving things by land is you are putting yourself at the mercy of Moyano. Not a position I would want to be in.

 

[Girino]

Certainly do not want to pay bribes or any of that.

You might want to relocate your business, then. You can take KFC out of the Casa Rosada, but you cannot take bribes out of a Latin system.