ARTICLE

An export transaction is classified as “subject to a collection claim”

The Argentine Central Bank eases the requirements for an export transaction to qualify as “subject to collection claim”.
January 4, 2010
An export transaction is classified as “subject to a collection claim”
On December 18, 2009, the Argentine Central Bank enacted Communication “A” 5,019 which eases certain requirements that the Argentine exporters must comply with in order to obtain the characterization as “subject to a collection claim” for an export transaction that remains unpaid due to the default of the importer. This modification is relevant because, if the exporter is able to prove that the unpaid export transaction is “subject to a collection claim” before the deadline to transfer and sell for pesos the corresponding foreign currency proceeds in the foreign exchange market, then this minimizes the risk of being prosecuted by the Central Bank for infringing the criminal foreign exchange regime.

Specifically, Communication “A” 5,019 sets forth the following relevant modifications to the applicable regulation:

(i) Increases from US$ 30,000 to US$ 100,000, the annual aggregate maximum amount of export proceeds that can be characterized as “subject to a collection claim” due to the importer’s payment default by filling documentary evidence of simple claims (for instance, e-mails with certified by notary public) without the need of bringing a court claim (and to US$ 200,000 when the claims are made by Argentine or foreign collection agencies hired by the exporter for such purpose).

(ii) Eliminates the maximum limit of three annual export transactions that can be characterized as “subject to a collection claim” by filing evidence of the type of simple claims mentioned in the preceding paragraph.

(iii) Allows classification as “subject to a collection claim” for an unpaid export transaction due to a payment default caused by the foreign exchange controls applicable in the importer’s country, even if the exporter and the importer are affiliates.

(iv) Allows classification as “subject to a collection claim” for an unpaid export transaction when the foreign exchange controls applicable in the importer’s country require a prior authorization for payment and as long as the exporter files documentary evidence to prove that there has been an unavoidable delay in obtaining such authorization that cannot be attributed to the parties or to the financial entities involved in the transaction

This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.