On July 8, 2020, through Communiqué “A” 7068, the Argentine Central Bank (the “Central Bank”) enable new scenarios to access the foreign exchange market (the “FX Market”) to cancel commercial obligations by Argentine importers. In this sense, Argentine importers will be able to access the FX Market for the payment, on their maturity date, of letters of credit drawn and other financing granted by foreign banks, financial entities and credit agencies.
For the sake of clarity and as a summary of the new regulations, we detail below the payments of imports of goods[1] [1] or cancellations of principal of debts related to imports of goods[2] [2] that do not require prior written authorization from the Central Bank as from July 13, 2020 to July 31, 2020.
- If the amount of nationalized imports in 2020 exceeds payments made
To the extent that the aggregate amount of import payments and prepayments made during the year 2020 – including the intended payment – does not exceeds the aggregate amount of imports of goods that are registered in the importer’s name in the system for monitoring the payment of imports of goods (“SEPAIMPO”) and that the clearing custom (i.e., nationalization) was between January 1, 2020 and the day prior to access to the FX Market., the prior written authorization from the Central Bank will not be required.
Although the Central Bank will carry out an ongoing inspection, this requirement will be deemed fulfilled by the submission of an affidavit by the importer.
- Deferred payments or on demand of new imports
Payments (deferred or on demand) of imports that have been shipped after July 1, 2020 [3] or that, having been shipped earlier, have not arrived to the country before that date, don’t require prior written authorization from the Central Bank.
- Payments to foreign financial entities and credit agencies
Payments for the cancellation of commercial debts for imports of goods with export credit agencies or foreign financial institutions, insofar as they are not payments associated with the operations included in the preceding paragraph, do not require prior written authorization from the Central Bank.
- Payments from the public sector
Payments from the public sector, companies with majority state participation or trusts set up with contributions from the national public sector do not require prior written authorization from the Central Bank.
- Essential medicines
Payments for imports of goods with pending customs entry registration to be made by a legal entity responsible for the provision of essential medicines to be imported by the request of the beneficiary of such medical coverage, do not require prior written authorization from the Central Bank.
- COVID-19 Kits
Payments for imports of goods with pending customs entry registration made for the purchase of COVID-19 coronavirus detection kits [4] do not require prior written authorization from the Central Bank.
- Other import payments of up to USD 1,000,000
Other payments for imports of goods shall not require prior written authorization from the Central Bank to the extent that the aggregate amount of: (i) the amount pending regularization (i.e., nationalization) for payments of imports made on or after September 1, 2019, and (ii) payments for imports of goods with clearing custom (i.e., nationalization) on or after July 13, 2020 (which do not fall under sections 1, 2 and 3 above); do not exceed the equivalent of USD 1,000,000[5]
This report cannot be considered as legal or any other kind of advice by Allende & Brea.
[1] Codes B05, B06, B07, B10, B12 and B13.
[2] Code P13.
[3] This date will be 12 June 2020 for goods under Chapters 30 and 31 of the Mercosur Common Nomenclature (Nomenclatura Común del Mercosur) or for supplies for the local production of medicines.
[4] Or other goods whose customs tariff positions are included in the list of Decree No. 333/2020 (as amended).
[5] This amount shall be raised to USD 2,000,000 in the case of payments for the import of products related to the provision of medicines or other goods related to the medical and/or health care of the country or supplies required for local production.
