How to win government contracts and tenders in Argentina

A Comprehensive Guide to Securing Government Contracts in Argentina

Winning contracts in Argentina's governmental sector requires thorough preparation and compliance with specific regulations. For businesses aiming to secure government projects in Argentina, it is essential to understand the country's trade policies aligned with Mercosur obligations, complete necessary supplier registrations, and prepare accurate bids that adhere to official documentation requirements.

Legal Framework Governing Public Procurement

International Trade Agreements: WTO & Mercosur

Argentina currently holds observer status within the World Trade Organization's (WTO) Government Procurement Agreement (GPA), which indicates ongoing alignment toward internationally recognized procurement standards. However, as a member of Mercosur, Argentina adheres to trade policies agreed upon among its partners—Brazil, Paraguay, and Uruguay—making unanimity necessary for external agreements or significant policy changes affecting procurement rules.

This regulatory framework means foreign companies bidding for contracts must closely follow registration and procedural guidelines outlined by Argentine authorities until full alignment with GPA standards occurs.

Main Legislative Instruments

National procurement activities are primarily governed by Law No. 9643/2006 (Public Contracts Law) and its subsequent amendments. Competitive bidding is mandatory except in specific circumstances, such as:

• National security considerations (e.g., defense procurement).
• Presence of a single vendor due to intellectual property constraints.
• Declared urgency in humanitarian situations, justifying expedited contracts without usual public tender timelines.

Supplier Registration and Requirements

Registration with National Authorities

Foreign suppliers aiming to participate in Argentine public procurement must first register with Argentina's Federal Administration of Public Revenues (AFIP). Essential documents typically include:

• Notarized Articles of Association and Company Incorporation Proofs (translated into Spanish).
• Audited Financial Statements from the most recent fiscal year.
• Formal Declarations confirming no outstanding debts or liabilities exceeding threshold limits established by AFIP regulations.

Successful completion of AFIP registration provides suppliers with a Unique Tax Identification Code (CUIT), essential for all subsequent commercial activities within Argentina.

Sector-Specific Licensing

Suppliers within specialized sectors, especially pharmaceuticals or agricultural products, must meet additional licensing requirements, including sanitary and hygiene certifications by domestic regulatory bodies (such as ANMAT or SENASA) and corresponding authorities from originating countries.

Documentation Requirements for Tender Submission

Bidders submitting proposals must strictly adhere to standardized documentation requirements provided by Argentine agencies, typically including:

• Economic Offer document clearly breaking down cost estimates and financial terms.
• Technical Compliance documentation detailing conformity to specifications outlined in tender documents.
• Certification of financial solvency, usually demonstrated via bank guarantees or bonds equivalent to approximately 10% of the project's estimated cost.

Submission inaccuracies or non-compliance with official documentation formats can result in immediate disqualification or scoring penalties during bid evaluations.

Practical Considerations for Foreign Companies

Navigating Customs and Tariffs

Foreign companies must account for Mercosur's Common External Tariff (CET), ranging up to 35% depending on product classifications. Accurate cost forecasting and bid pricing depend on understanding tariff implications, especially for imported equipment or materials. Additionally, the Comprehensive Import Monitoring System (SIMI) demands prior submission of documents before goods arrive at customs, affecting delivery timelines.

VAT and Import Duties

Argentina employs a standard VAT rate of either 10.5% or 21%, depending on the nature of imported goods, alongside additional statistical charges of around 3%. Such taxes significantly impact project budgeting and cost strategies and must be factored into bids to avoid unexpected financial challenges.

Recent Regulatory Shifts and Opportunities

Recent government policies indicate momentum towards liberalization, exemplified by the increased allowable percentage of imported components within public contracts and reductions of previously rigid local content requirements. Firms should anticipate potential policy shifts adapting to such trends, while carefully monitoring political and economic adjustments to mitigate associated risks.

Conclusion and Recommendations

Securing government contracts in Argentina requires meticulous adherence to registration, documentation, and compliance procedures defined clearly by official authorities. Businesses are encouraged to engage qualified local legal experts proficient in administrative law to navigate the complexities of procurement rules, optimize competitive positioning, and ensure preparedness for periodic regulatory adjustments.

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