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Grain export fraud in Argentina estimated in 1.76 billion USD
MercoPress
July 21, 2008

The Argentine government will claim 1.76 billion US dollars from grain exporters who had registered overseas sales of cereals and oilseeds which they did not hold at the moment in silos or purchase orders, according to the Buenos Aires press.

Allegedly exporters registered overseas sales last October, previous to an increase in export taxes, although they did not have the declared grains, which enabled them to sell significant volumes at lesser taxes than what they should have paid.

The Buenos Aires press illustrates with soy beans which at the moment of registering the export, last October, tax stood at 27%. However the shipment was completed in November, when the tax was increased to 35%, and it was only then that exporters purchased the necessary oilseed to complete the shipment, thus pocketing the difference.

Apparently the Argentine government is targeting multinationals corporations such as Cargill, Bunge and Nidera and important domestic companies linked to cooking oil production such Aceitera General Deheza and Vicent n.

According to Pagina/12 the Argentine Federal Revenue Service and Customs inquiries could lead to "criminal cases for tax evasion and appropriation of tax money".

The investigation checked the activities of 57 corporations which totaled exports of 24.5 million tons of grains and oil seeds in 1.316 operations and in 89% of cases "the overseas sales registries showed the corporations did not have at that moment export volumes in silos or had not purchased the volumes declared".

Argentina is the world's leading exporter of sunflower, second in corn, third in soybeans and fourth in wheat, plus relevant positions in by products such as cooking oil and flour.