New Simplified Export Regime for Entrepreneurs and SMEs Enters into Force

On May 16, 2017, the Ministry of Production and the Federal Tax Authority published Joint General Resolution No. 4049-E/2017 in the Official Gazette. It sets out the framework of a new Simplified Export Regime called “Exporta Simple”, which purports to implement an agile procedure for small producers to make it easier to export their products via Private Postal Service Providers (Couriers).

The Regime seeks to enhance the production and merchandising of local products to foreign markets and to reinforce the economic integration with our MERCOSUR commercial allies, through simplifying export operations and reducing costs.

Exporters must comply with the following requirements to be able to export under this new Regime:
 

1. The beneficiaries must have an Argentine Tax ID Number and an at least a level 3 Tax Access Code to access electronic registers;

2. Each beneficiary may have annual revenue from exports made under this Regime up to USD 600,000 in FOB valuation of the exported goods;

3. Each export may have a FOB valuation up to USD 15,000;

4. The goods exported under this Regime must be manufactured in Argentina, and their export cannot be prohibited, suspended or subject to export quotas under the general Regime;

5. Each shipment must weigh less than 300 kg; and

6. The goods exported under this regime cannot be subject to other specific export procedures set out by Customs.

The goods exported under this Regime are shipped by the registered Postal Service Providers (Couriers). They must file the export declarations in the official electronic register (Sistema Informático MALVINA – SIM) according to the standards that further regulations will set forth.

These exports are subject to the applicable export duties, which must be paid electronically (through the official VEP -Electronic Ticket- system) by the exporter before the goods are shipped. The beneficiaries of this new Regime are able to collect all applicable export benefits, such as reimbursements.

This Regime may not be used to export goods imported under a temporary admission regime or for goods subject to adjustable prices or mineral concentration regimes.

To be beneficiaries of this new Regime, Exporters must be included in a special register. The Secretariat of Commerce (under the authority of the Ministry of Production) is the designated entity to keep this register.

Finally, in case of non-compliance with these standards, both the Postal Service Provider and the beneficiaries may be held joint or severally liable for customs infractions and subject to the application of fines and other sanctions.

Even though this Regime is already in force, it needs to be further regulated by the Secretariat of Commerce to become operational.

We expect that the ease of the Regime and the consequent reduction in cost to work as an incentive for small manufacturers or producers to place Argentine products in foreign markets.