The Government opens free shops at land border crossings

The Government opens free shops at land border crossings
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Argentina

Through a decree, a Mercosur resolution was incorporated to establish duty-free shops at the borders and promote tourism and regional trade

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The national government has moved forward with a measure to boost trade in border areas. Through decree 436, published in the Official Bulletin, it incorporated a Mercosur resolution into Argentine law that allows the opening of free shops at land border crossings.

This decision aims to enhance competitiveness in border regions, promote tourism, and contribute to local economic development. Until now, duty-free shops primarily operated in airports and ports, with specific exceptions like Puerto Iguazú and Ushuaia.

Free shops are businesses authorized to sell tax-exempt products to people entering or leaving the country. With this new regulation, that possibility is extended to authorized land crossings, as long as the corresponding customs control can be exercised.

Requirements for operation

The installation and operation of these stores will require dual authorization. On one hand, the Ministry of Economy will grant commercial approval. On the other hand, the Revenue and Customs Control Agency (ARCA) must approve the specific operation of each store.

Purchases made by travelers will be subject to the current baggage regime. This means that the products will be for personal use and cannot be intended for commercial or industrial purposes. The limits on quantity and value will be determined by the current allowances for that type of entry.

It is crucial to highlight that not all items will be allowed for sale in these border free shops. There is a clear list of exclusions to ensure compliance with customs regulations and protect various sectors.

Among the prohibited products are vehicles, spare parts, and fuels; food; animals and plants; weapons and ammunition; cigarettes; agricultural, industrial, or commercial machinery; large household appliances; construction and electrical materials; tires; and clothing and footwear, with the exception of sports shoes and flip-flops.

Expected impact on regional economies

The incorporation of this Mercosur resolution, which has been in effect since 2018, responds to the need to revitalize border areas. Authorities believe that these businesses can attract more travelers and generate economic activity in towns that depend on border crossings.

In this way, the aim is to encourage tourism and regional trade without altering the basic rules of customs control. Free shops must operate exclusively at authorized crossings where it is possible to supervise operations.



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