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AMENDMENT ACT NO 18.483

Original Language Title: MODIFICA LEY N° 18.483

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AMENDMENT OF LAW N ° 18.483 Taking into account that the National Congress has given its approval to the following Bill: " Single article.-Please introduce the following amendments to the law N ° 18.483: 1. In Article 1, add the following points (o), (p) and (q): " (o) Export Development Programme: programme whose purpose is to increase annual exports, to be counted from 1991, by the average of exports carried out in 1989 and 1990. The programme allows the terminal industries to access an extension in the period of validity of the tax benefit referred to in Article 10. (p) Exports in Excess: the difference between the value of exports by a terminal industry in one year and the average value of exports by the same industry in the years 1989 and 1990. q) Tax Credit in Excess: the difference between the annual amount of tax credit for national integration granted to a terminal industry incorporated in the export development program and the amount of tax credit that will have been granted to it in the (d) to declare whether they will be incorporated into the export development programme. 3. The following point shall be added: "(d) declare whether they will be incorporated into the export development programme." 3. In the first paragraph of Article 9, the date '31 December 1995' is replaced by '31 December 1998'. 4. Replace Article 10 by the following: " Article 10.-The tax credit for national integration shall only be recognised in respect of the terminal industries which arm or assemble vehicles from CKD. The amount of tax credit for national integration will be determined as a percentage of the customs value product of the respective CBUs by the ratio of integration accomplished by the incorporation of national components and the process of assembly. In the case of industries which are not included in the export development programme, a percentage of 40% is established, as of 31 December 1991, and is reduced by 10 percentage points each year from 1 January 1992. In the case of industries which are incorporated into the export development programme, the date on which the percentage of national integration tax credit starts to be reduced by 10 percentage points per year will be deferred until 1 January 1996. This delay will remain in force for industries whose excess exports, as from 1991, are at least equal to the amount of the excess tax credit granted to them. In order to verify compliance with the condition set out in the preceding paragraph, in the first fifteen working days of each year, at the end of 1992, the Automotive Commission will compare the value of the excess exports in the year Three times the amount of the excess tax credit given to the industry by the vehicles produced and transferred in the same year. Each time the required condition is not met, the percentage of national integration tax credit that will be recognized to the industry in each of the years that subtract until the extinction of the benefit, including the year in the year, will be reduced by 10 points. the comparison is made. If the industry does not meet the required condition for two consecutive years, it will be removed from the export development programme without the possibility of reinstatement. To make the comparison referred to in the fourth indent of this Article, the FOB value of the annual exports of national components shall be considered, including exports in compensation referred to in Article 3 and the amount of represents the integration of national components into the FOB value of the SKDs or CBUs that they have exported, expressed in US dollars. The average value of exports made in 1989 and 1990 will be updated in line with the variation in the monthly wholesale price index of the United States of America between December 1989 and June of the year in respect of the which are made up of the computes. The annual amount of tax credit for national integration shall be obtained by adding the respective monthly amounts, expressed in dollars of the United States of America, considering the exchange rate established in accordance with Article 122 of the Ordinance 5. Customs, in force on the date on which they were granted. " 5. Replace the first paragraph of Article 11 by the following: " Article 11.-The tax credit for the purpose of encouraging exports of national components shall be calculated as a percentage of the FOB value of exports with a maximum of 11% of the customs value of imported CKD or SKD imported or imported in accordance with the programmes approved by the Automotive Commission, as the case may be, not being considered for this purpose exports in compensation referred to in Article 3. The percentage to be considered will be 11% until 31 December 1995, reducing this, to be counted from 1 January 1996, by 2.75 percentage points each year. " 6. Replace Article 11a by the following: " Article 11a.-The terminal industries shall be entitled to a tax credit equivalent to the value resulting from the same percentages referred to in Article 11 on the integration of National components in the FOB value of the SKDs or CBUs that they export. " 7. Following Article 12, the following Article 12a: " Article 12a.-Vehicles produced and transferred in the country by the terminal industries may not be exported without the exporter having previously entered into coffers Tax credit is equal to the tax credit granted to the terminal industry by such vehicles, pursuant to Article 9 °. This amount shall be updated according to the variation experienced by the monthly consumer price index between the month preceding the granting of the credit and the month preceding its refund. For this purpose, the Automotive Commission shall issue a certificate indicating the amount of the tax credit to be returned by the vehicle or the vehicles to be exported within 15 working days, counted from the time the exporter has requested. This certificate and proof of the Service of the Treasury will be required by the Customs Service in the export procedure. The terminal industries must state on the invoices for sale of the vehicles transferred in the country, that they may not be exported without the provisions of this article. " 8. The following Article 14a: " Article 14a.-If the terminal industry is to arm or assemble vehicles under a manufacturing licence granted by the owners of two or more trade marks, the profits shall be added to the following: referred to in Article 3 (4) and Articles 9 and 11 (a) shall be granted in respect of each individual mark. In addition, the conditions required for access to the extension of the period of validity of the tax benefit referred to in Article 10 shall be assessed for each separate mark. For these purposes, when approving the compensation programmes referred to in Article 3, the Automotive Commission shall enter by extension of a certificate, the automotive trade mark to whose account the export is to be carried out and to which the the corresponding import duties shall be paid. In order to carry out the computes referred to in Article 10 (4), the excess exports and the excess tax credit shall be determined for each vehicle mark which has been assembled or assembled in accordance with the records it bears. the Automotive Commission and the background that is required of the terminal industry. " 9. In Article 15, replace the expression "a representative of the Central Bank of Chile" by "a representative of the Ministry of Economy, Development and Reconstruction". 10. Repeal Article 6 of the transitional measure. ' And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, October 24, 1991.-PATRICIO AYLWIN AZOCAR, President of the Republic.-Carlos Ominami Pascual, Minister of Economy, Development and Reconstruction.-Alejandro Foxley Rioseco, Minister of Finance. What I transcribe to you for your knowledge.-Salute attentively to you-Raul Pellicer Navarro, Undersecretary of Subrogating Economy.