Regulatory Adjustments for Paying Capital Goods

Through Communique “A” 7408 dated November 25, 2021, the Argentine Central Bank (the “BCRA,” after its acronym in Spanish) authorized access to the foreign exchange market for the payment of imports of capital goods with advance payments of up to 270 days starting December 1, 2021.

The remaining amount due under this framework as of December 1, 2021 may not exceed the equivalent of USD 1,000,000 (one million US dollars), including the installment for which access is requested.

If that amount is exceeded, the following conditions apply:

•    the sum of the prepayments may not exceed 30% of the total amount of the goods to be imported; and

•    the sum of the prepayments on demand and commercial debt without customs entry record may not exceed 80% of the total amount of the goods to be imported.

Therefore, payment for the acquisition of capital goods, which had been suspended, is once again enabled, with some modifications.

According to the  BCRA, capital goods include the tariff positions denominated as BK (Capital Goods) in the Common MERCOSUR Nomenclature.

Finally, when an advance payment includes capital goods and other goods, prior BCRA approval is not required if the capital goods represent at least 90% of the total value of the goods purchased from the supplier in the transaction and the entity has a sworn statement from the client stating that the remaining goods are spare parts, accessories or materials necessary for the operation, construction or installation of the capital goods being purchased.