FREE PORT REGULATIONS
The characteristics of this unique system on the South American Atlantic coast have allowed for the establishment of Regional Distribution Centers located at the region’s entry and exit gates. Through the Ports Law and its regulations, this innovative system has been established, positioning Uruguay as a highly efficient port alternative.
The term «free ports» refers to port customs areas where special tax and customs regimes apply, including the free movement of goods, without the need for authorizations or formal procedures.
FREE CIRCULATION OF GOODS
No authorizations or formal procedures are required. Intraport movement is documented through an electronic Simplified Message to the National Customs Directorate.
PERMANENCE PERIOD OF THE GOODS
The new regulatory framework incorporated under CAROU establishes that merchandise entering ports may remain for a maximum of five years (extendable).
FREE DESTINATION OF THE MERCHANDISE
No prior permits or reports are required to move merchandise, so the destination can be freely changed.
TAX FREE
All merchandise and goods entering from outside the national territory are exempt from customs taxes, fees, and duties applicable to or related to the import (VAT, Wealth Tax, Income Tax).
When they are introduced into the national customs territory, they are considered imports and only in those cases are they subject to the corresponding tariffs.
PERMITTED ACTIVITIES AND DEPOSIT METHODS IN FREE PORTS
Since the enactment of the C.A.R.O.U., the operations that can be carried out in the Free Ports are not limited to those enumerated by Article 2 of Law 16,246 and its Regulatory Decrees, but have been expanded, covering a wider range of possibilities in accordance with the provisions of the C.A.R.O.U.
The possible modalities that can be adopted by intra-port warehouses will be the following:
- Storage warehouse: the goods can only be subject to operations intended to ensure their identification, preservation, splitting into lots or volumes, and any other operation that does not alter their value or modify their nature/state.
- Commercial warehouse: the goods can be subject to operations intended to facilitate their commercialization or increase their value, without modifying their nature or state.
- Repair and maintenance warehouse: the goods can be subject to repair and maintenance services, without modifying their nature.
- Temporary warehouse for exhibition or other similar activity: foreign goods entered can be destined for exhibitions, demonstrations, fairs, or other similar activities, with prior authorization from the National Customs Directorate (D.N.A.).
- Logistical warehouse: the goods can be subject to operations that may modify their state or nature, provided they do not modify their origin and consist of: assemblies or mounting; mixtures; placement or replacement of parts, pieces, or accessories; hardware configuration; software installation; manufacturing of packaging, assemblies, labels, or other products provided they are used for the commercialization of goods that will leave the warehouse; and other similar operations established by the Executive Branch.
Currently, there is a single restriction which consists of the impossibility of using the industrial warehouse modality, within which goods can be subject to operations intended to modify their nature or state, including the industrialization of raw materials and semi-finished products, assemblies, mounting, and any other analogous operation (alteration of origin).
OPERATION
Companies, and in particular port operators, must maintain complete, accurate, and up-to-date records of goods handled, deposited, or stored, received and delivered, shipment by shipment and separated by storage location.
Port services are provided in the Republic’s commercial ports 24 hours a day, every day of the year, if demand so requires.
This regime applies to the country’s main port as well as to all other commercial ports capable of receiving overseas vessels.
