Legal

Argentina: Lawyers comment on bunker supply and VAT rules

Discusses how maritime cabotage rules and flags of convenience affect the payment of VAT in Argentina.

Published

7 years ago

April 29, 2019

Admin

The following article is written by San Lorenzo-based maritime consultancy and international law firm Venetucci & Asociados, and shared with Singapore bunker publication Manifold Times; it was first published in the newsletter of the International Law Office:

There are many legal issues that operators should be aware of when deciding to supply bunkers in Argentina, not to mention operational issues regarding:

– the lack of barges available;
– delays due to weather; and
– congestion during the grain season.

In this context, the question of whether foreign-flagged ships involved in international trade are subject to value added tax (VAT) when supplying bunkers in Argentina is frequently posed.

If a vessel is supplied bunkers in one Argentine port and subsequently calls to another Argentine port before proceeding overseas, this is generally considered to be cabotage and is therefore subject to VAT.

Maritime cabotage

By definition, ‘maritime cabotage’ concerns laws and regulations that restrict the right to transport goods or passengers by water between ports in the same country. If a ship loads in different port terminals in Argentina (eg, at a river berth and subsequently a southern port), the rule of cabotage is not triggered provided that the total cargo is carried abroad, as is the case in most operations.

Decree 19,492/1944 regulates maritime cabotage in Argentina. According to the decree, maritime cabotage is restricted to Argentine-flagged vessels that fulfil the following requirements:

– the vessel is registered in Argentina;
– the master and officers are Argentine nationals; and
– 25% of the crew are Argentine nationals.

In the case of force majeure, foreign-flagged vessels can be authorised by the government to transport goods or passengers between ports in Argentina.

Flags of convenience

Conversely, there are several Argentine regulations that address the use of flags of convenience for all types of transport (including cabotage). The Menem government introduced Decree 1772/91 in 1991, which authorised Argentine owners and charterers to use flags of convenience, but in 2004 the Kirchner government passed Decree 1010/2004, which required Argentine owners and charterers of vessels flying a flag of convenience to adopt the Argentine shipping registry. Nonetheless, Decree 1010/2004 authorised foreign registries where the demise charterer was based in Argentina and the charterparty was subject to the rules of temporary import.

In 2017, Decree 1010/2014 was replaced by Act 27,419 with the aim of developing a national merchant shipping fleet with several tax benefits for Argentine owners and charterers under the Argentine flag. Similar to the previous regime, the new regime includes the possibility of chartering with demise foreign flag vessels. These regulations do not affect bunker supply, apart from the tax benefits of Argentine shipping companies that aim to incorporate Argentine ships into their fleets.

Comment

Under Article 513 of the Customs Code, supplies to vessels not under the cabotage regime are considered exports by the Argentine supplier. Further, Article 8(d) of the VAT Regulation (Decree 280/1997) establishes that all exports are exempt from VAT. As a result, if a ship is bunkering in a common anchorage zone (eg, the city of La Plata) before proceeding upriver to Paraná, it will not be levied with VAT. A similar scenario exists when a ship partially loads upriver and bunkers before continuing loading in a southern port (eg, Necochea or Bahia Blanca).

Published: 29 April

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

11 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

11 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

Winding up

Singapore: Liquidator of Nan Shan Maritime Pte Ltd issues notice of dividend

Third interim dividend to admitted unsecured claims of Nan Shan Maritime is payable from 15 July, according to Government Gazette notice.

Published

5 days ago

July 16, 2026

Admin

A notice of dividend for Nan Shan Maritime Pte Ltd, which is currently in creditors’ voluntary liquidation, was published on the Government Gazette on Wednesday (15 July).

The following are the details of the notice:

Name of Company : Nan Shan Maritime (Pte.) Ltd.(In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 201701967H
Address of Registered Office : 10 Anson Road, #10-10, International Plaza, Singapore 079903
Amount per centum : 5.00 Per Centum of all admitted unsecured, claims
First and Final or Otherwise : Third Interim
When Payable : 15 July 2026
Where Payable : Entitlements will be made by way of cheque.

Photo credit: Drew Beamer
Published: 16 July, 2026