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Argentina fines Huawei $2 million for failing to declare imported software

The fine is 407 million pesos. | Fountain: AFP

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Customs Argentina Argentine subsidiary of Chinese tech company says Huawei $28 million for unpaid taxes and a fine of 407 million pesos ($2 million), according to official sources.

The claim arises because Customs Argentina it is not possible for a Chinese firm to import equipment (hardware) without buying software and without cancellation of license rights to the parent company abroad, according to the analysis of the territory of related companies Customs on the import value of the Argentine subsidiary Huawei technologies investments.

Why was the Chinese giant fined?

Customs Argentina explained that the Argentine subsidiary Huawei imported equipment (hardware) for technological developments in Argentina its parent company in China.

These commands are part of global contracts called “Systems” with technical specifications that make hardware, software and licensing rights “inevitable” as they are all-encompassing purchase requirements, the state agency explained.

Argentina It is based on the fact that it is part of the General Agreement on Customs Tariffs and Trade (GATT), which stipulates that the importer is obliged to pay, in addition to the agreed price of the goods, an additional amount called “canon, license fee or simply royalties” as compensation. for the right to use this intellectual creation of the other party, and this amount of money “integrates value for customs purposes.”

For Customsthe technology company was fully aware of the licensing fees that it was required to pay when importing goods, and was aware of the presence and amount of this obligation, but only declared the cost of the equipment, not including it in the customs base taxing the cost of software and licenses.

Due to the false declaration of the company, damaging the treasury, Customs collected the difference in tax and applied a penalty. EFE

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Source: RPP

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