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January 2001

The Law Nº 1064/97, of the industry exports assembly plant

The Law Nº 1064/97, of the industry export assembly has for object to promote the establishment and to regulate the operations of companies of industrial assembly that are devoted total or partially to carry out industrial processes or of services dedicated to the transformation, elaboration, repair or assembling of goods of foreign origin imported temporarily.

THE COMPANIES ASSEMBLY PLANTS

As company assembly plants are recognized those who are especially founded for this purpose and which already exist and which were guided to the national market but do have lazy capacity in their facilities.

As an assembling program the Law Nº 1067 defines one which contains the description in detail and characteristic of the industrial process or service to be developed, chronogram of imports, of production, of exports, of generation of employments, percentage of added value, percentage of reductions and waste, period of time that will embrace the program and other data that they will be able to settle down in the pertinent regulation.

One of the main characteristics of a company assembly is to have signed a treatment with one or several companies in the exterior, those that are the buyers of the assembling products. As contract of export assembling is defined that type of agreement reached among the assembling company and a different company domiciled in the exterior, for which an industrial process is hired or a service in support to the same one dedicated to the transformation, elaboration, repair or assembling of foreign goods to be imported only temporary, for its later reexport, being able to provide the primary goods, inputs, machineries, teams, tools, technology, address and technical attendance, of agreement with the modality that the parts freely establish.

To be able to take ahead the process of assembling, the assembling company can import machinery and inputs. This kind of import is characterized by the temporary entrance in national territory, with liberation of the tributes to the import of machineries, teams, tools and other production goods, as well as of primary goods, inputs, parts and pieces for the realization of the assembling programs and their later export or reexport.

In a contrary form the assembling export is the exit of the national territory of the goods or goods elaborated by the industries assembly plants according to the authorized program and with the use of the primary goods, inputs, parts and pieces cared temporarily and whose value has been increased with the contribution of the work and other natural and national resources.

Different forms defined as assembling and which also will enjoy the benefits of the law 1064/97 are the reexport, the sub assembling, the assembling of lazy capacity and the assembly plants with program harbor or shelter.

The assembling of reexport is the exit of national territory of those production goods, such as machineries, tools, teams and others that have not suffered transformation neither a increase of its value that have been imported temporarily to fulfill the programs of assembly for export.

As sub assembling are defined those cases in which it is a complement of a productive program of the activity object of the program stops later on to reinstate it to the assembly that hired the service, for their later export.

The assembly for capacity is applicable in the case of that company that established and guided to the production for the national market, got permission for any assembling program.

Finally, assembly plants with program of harbor or shelter are companies to those that are approved programs factory workers that are good to carry out export projects for foreign companies that facilitate the technology and the productive material.

THE NATIONAL ADVICE OF INDUSTRIES ASSEMBLY PLANTS

The decisions on the delivery of a assembling license take in the Unique Center of Steps (CUT), incorporated to the National Council of the Industries of Assembly Plants for Exportation (CNIME), in which the different institutions involved in the handling of the assembly plants will be represented by the Ministry of Treasury, Ministry of Industry and Trade, General Office of Customers, National Administration of Sailing and Ports, the Central Bank of the Paraguay, the General Office of Statistics and Census and the Institute of Forecast.

The CNIME is the authorized institution of receiving solicitudes of licenses, to evaluate the same ones and to give the permits. Among the permits that he can give the institution are the approval of a program of activities of the companies applicants; the delivery of an initial permission for the import of machineries and teams; the permission for the import of machineries and necessary inputs for the production and the permission to modify, amplify, to reduce, to suspend or to cancel the Program of Assembling.

Thomas Otter

 
 
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