Hide levy situation on splits resolved

Published:  22 January, 2014

Leather Insiders reported on January 21 that last December, an administrative mistake by the AFIP (AFIP – Administraciòn Federal de Ingresos Pùblicos) in Argentina had led to the adoption of a resolution (the “General Resolution n° 3557/13”) within the Mercosur Common Nomenclature that levelled a US$2.85 levy on any kind of hide, including splits, crust and finished leather. 

The primary purpose was to avoid under-invoicing of wet-salted and wet-blue full grain hides. Although the minimum price levy did not create any significant complications to the trade of the crust and finished leathers, it did cause major problems in the sale of splits, which are sold at a much lower price.

The Argentine authorities took almost a month to resolve the situation and subsequently the Customs Director lost his job for the damage caused. However, from January 13th 2014, it is now possible once more to ship splits from Argentina.