Problems can be encountered in Argentina in relation to customs fines when discrepancies are found between the store list presented upon arrival and the customs’ findings. In 2018, the Argentine Customs Authorities issued General Resolution 4317 approving new forms related to the store list declaration, which seems to have provided some uniformity as to what should or should not be declared. Unfortunately, there have been a number of cases of fines in recent years due to strengthened searches. Club correspondents Pandi Liquidadores of Buenos Aires have provided more than one update on this regard, recommending Members trading to Argentina to make all effort to declare as accurate as possible their store lists.

I. Case review

An entered vessel of the Association was recently caught in such situation. The bulk carrier involved was boarded and inspected by local Customs officials while unloading cargo in the port of San Nicolas, Argentina. The master of the vessel submitted the Ship’s Store Declaration prior to entry into port as required by the agent. Subsequently, the search team claimed, after the on-board inspection, that the master had failed to declare accurately the quantity of fuel oil on board the vessel, as well as lubricating oils and some expired chemicals, and a fine was to be levied on the shipowner.

The correspondent was involved immediately. The surveyor boarded the ship and found that there was some undeclared lubricating oils stored in the fore peak and the steering gear compartment, as well as some expired chemicals. The master insisted that fuel oil was declared truthfully, and the customs search team checked only the engine logbook, instead of actually measuring the ship’s fuel tanks. According to the Customs procedure, the fine notice was issued to the agent, and the owner had to provide a guarantee of more than US$400,000 in order for the ship not to be arrested.

II. Argentina Customs Code

The Customs Code provides in article 962 that goods that are not opportunely declared in the ship’s store list are subject to confiscation and fines equal to the market value of the goods. In the event that the goods are not amenable to confiscation, an additional fine equal to the market value of the goods will be levied. Thus, for undeclared or misdeclared goods that are not amenable to confiscation, fines can amount to two times the market value of the goods. In this case, the master of the ship failed to declare up to 3,000 liters of lubeoil, which would result in fines of over $70,000 with the market value estimated at $12/liter.

According to the correspondent, the decision of customs fines will be subject to an administrative review first and then made by the Fiscal Courts – the procedure usually takes months or even years. For this reason, fines are often imposed on the port agent, partly because the agent can be held liable for the infringement committed by the ship, and partly because the fines cannot be imposed on ships that are only calling for several days as it takes so long to make the decision.

Additionally, the customs fines are imposed in Argentine pesos, and if the payment is made in US dollars, it should be calculated at the rate of exchange in effect on the date of the infringement and does not accrue any interest. If the owner wishes to contest the items and amount of the customs fines, it can only be done after the decision is made, which may take a long time.

III. Advice to Members

In its Circular 053/2024, Pandi Liquidadores informed about an intensification of Argentine Customs House inspections of the ship's store list declaration, with a continued upward trend of cases resulting in alleged infringements, especially at Campana, San Nicolas, Rosario and San Lorenzo port. 

We would therefore suggest Members trading to Argentina to instruct their crews to make all efforts to declare as accurate as possible their store lists, especially fuel, gasoil and/or diesel, lubeoils in bulk and cans, chemicals, paints, etc. Prior to entry into ports, the relevant ship’s agents shall be consulted in every case and advise sought from them accordingly.

If misdeclaration are found by the Customs search team, members are encouraged to contact the Association immediately and instruct the crews to work with the surveyor appointed by the local correspondents for investigation and collection of evidence, as far as possible before the ship’s departure.

For more information, please contact Managers of the Association.