Foreign Exchange Laws & Regulations
Customs & Foreign Trade
On April 8, 2021, the Argentine Central Bank (the “BCRA”) issued Communication “A” No. 7259 that states that proceeds of exports of goods under the investment promotion regime for exports set forth by Decree No. 234/21 (the “Promotion Regime”) might be applied, in the terms set by its regulators, to the following transactions:
a) Payment of principal and interests of debts arising from import of goods and services as from the maturity date;
b) Payment of principal and interests of debts connected to foreign financial debts as from the maturity date;
c) Payment of profits and dividends corresponding to closed and audited balance sheets; and
d) Repatriation of direct investments by non-residents in companies that are not controllers of local financial entities.
Such applications shall be admitted to the extent that the following conditions are met:
- The amount applied does not exceed 20% of the amount in foreign currency corresponding to the permit of export whose charges are applied.
- The amount does not exceed 25% of the gross amount of foreign currency settled through the FX market for financing the project that generated the applied exports. This gross amount will be calculated based on the foreign currency settled through the FX market as of April 7, 2021 as (i) foreign financial debts and (ii) foreign direct investments. The settlements through the FX market can only be computed after a year has elapsed since such settlement was carried out.
- Exporters who opt for this mechanism must designate a local financial institution to monitor the project included in the Promotion Regime.
Likewise, Communication “A” 7259 sets forth that exports proceeds that being eligible, are not simultaneously applied to the admitted uses, may remain deposited until their application in foreign correspondent accounts of local financial entities and/or in local accounts in foreign currency of local financial entities. In the event that the application had not taken place at the time of expiration of the deadline for the settlement of exports proceeds of the corresponding export permit, the exporter may request to the monitoring entity the extension of the term until the date on which it estimates the application will take place.
To access the full text of Communication “A” 7259 (in Spanish), click here.