ARGENTINA Law and Practice Contributed by: María Belén Espiñeira, Espiñeira Maritime Lawyers
tion clause has been agreed between the parties or because another court might be competent due to another provision of international private law. Furthermore, as Argentina is a party to the Conven - tion on the Recognition and Enforcement of Foreign Arbitral Awards, Argentine courts could order an arrest on a vessel to secure a claim, which would be subject to arbitration proceedings in a country that has rati - fied such convention, if they are empowered to do so under Argentine law. 7.5 Domestic Arbitration Institutes The Argentine Maritime Law Association ( Asociación Argentina de Derecho Marítimo ) has issued Arbitration Rules and created an Arbitration Committee within the organisation. Although it is known that some contracts will have incorporated an arbitration clause referring all disputes that may arise thereunder to be resolved following the Association’s Arbitration Rules and by the Arbitration Committee, there is no record of dis - putes being resolved by the institution. 7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses At the first appearance at court, the defendant should raise an objection of lack of competence based on the breach of a foreign jurisdiction or arbitration clause. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies In Argentina, there is no tonnage tax and the incomes earned by ship-owners established in Argentina are fully subject to income tax. The income tax is calcu - lated on the profit or loss shown in the company’s financial statements, which is adjusted by adding up non-deductible expenses, and deducting non-taxable incomes and/or allowable deductions not accounted for in the accounting records. The tax rate on the net income of companies incorporated in Argentina is 30%. Depending on the particulars of the case, if a ship-owner’s vessel is engaged in several contracts, in excess of her ordinary use during a fiscal year, the benefits of the accelerated depreciation of such asset
may be claimed before the tax authority, in the form of a reduction in income tax.
9. Implications of Non-Performance, IMO 2020, Trade Sanctions and International Conflict 9.1 Force Majeure and Frustration The Argentine Navigation Law, when regulating the different shipping contracts, provides that a force majeure event shall operate as an exemption from liability cause, in different specific scenarios. The mar - itime doctrine and relevant judicial precedents have stated that the defence of force majeure should be interpreted narrowly, that the concept of force majeure is dynamic and cannot be analysed in abstract situ - ations, and that the admissibility of this defence depends strictly on the circumstances of the case. Further, it has stated that for an event to be consid - ered force majeure, it should not be a mere difficulty, but unforeseeable, unavoidable, real, current, beyond the control of the parties and supervening, and should pose an insuperable obstacle that prevents the full performance of a contractual obligation. The theory of frustration as such is provided by Section 1091 of the National Civil and Commercial Procedural Code; however, it should be pointed out that this contractual remedy may not apply to all maritime matters. 9.2 Enforcement of the IMO 2020 Rule Limiting the Sulphur Content of Fuel Oil On 8 June 2021, Argentina deposited the instrument of accession to the Protocol of 1997, adopting Annex VI of MARPOL with the IMO. Therefore, the limit on the sulphur content in the fuel oil used on board ships navigating Argentine territorial waters is a maximum of 0.50% mass by mass. The Argentine Maritime Authority is empowered to inspect vessels arriving at Argentine ports, regardless of their flags, to ensure compliance with the environmental protection provi - sions stipulated by MARPOL Annex VI, and demand the fulfilment of the operational requirements set forth by the convention for national-flag vessels. 9.3 Trade Sanctions The Argentine Republic is a founding member of the United Nations. Since its foundation, the country has
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