The Argentine Central Bank Updates Foreign Exchange regulations

These amendments were made through Communique "A" 7586 (August 25, 2022) and Communique "A" 7601.
 

Communique "A" 7586 established:

• The modification of the tariff position list in the Mercosur Common Nomenclature (NMC) included in item 10.14.2. 13 of the Foreign Exchange Regulations (FX regulations). This item refers to the import of products intended for locally processing goods necessary for infrastructural works contracted by the public sector. Provided the remaining regulatory requirements applicable to the payment of imports of goods are complied with, the modification allows accessing the foreign exchange market (FX Market) if the documentation requirements are met that permits the verification of the entry of goods with an allowed NMC and a declaration in the Integral Import Monitoring System (SIMI) category B or C in force.
   
• The replacement of the third paragraph of point 3.16.3 of the FX regulations, related to the affidavit regarding transactions with securities. In those situations where a public sector entity is the direct controller of the client, it will not be necessary to submit such affidavit; this requirement will be considered fulfilled.  
• A clarification stating that the delivery of local assets for cancelling a debt with an export credit agency or a foreign financial institution will be considered consistent with the affidavit for the execution of transactions with securities, if it occurs upon maturity and as a consequence of a guarantee clause stated in the debt agreement.
   
• The modification in the wording of the numeral 4.3.2 heading in the FX regulations. It now establishes that the transactions set forth in numerals 3.16.3.1 and 3.16.3.2 -referring to the requirements for accessing the FX Market for transactions with securities- may not be carried out.
   

Communication “A” 7601 extends the following rules in Communique "A" 7532:

• The limit amounts for the payment of imports of goods for category A or C declarations in the SIMI was extended until December 31, 2022:
   
• The limit amount of SIMI A or C category, which at each moment will be the equivalent to the proportional part of the annual limit of each category accrued up to the current month and including this current month. If the amount indicated for a category is lower than USD 250,000, this amount or the corresponding annual limit, whichever is lower, will be adopted.
   
• The suspension of the exception that allowed access to the FX Market for those imports associated to an actual SIMI declaration category B or C, the goods of which were subject to non-automatic import licenses. During the term of this suspension, imports of goods subject to non-automatic licenses for the years 2020 and 2021 will be included to calculate the limit amounts applicable to the SIMI categories A and C.

An affidavit must be attached when it comes to the payment of imports of goods through the exceptions to the complementary provisions for access to the FX Market established in items 10.11.1 (import ratio), 10.11.2 (deferred payment of imports of goods corresponding to operations that have been shipped as of July 1st, 2020), 10.11.11 (payment on demand or of commercial debts without customs entry registration), and 10.11.12 (payment with pending customs entry record  processed with funds originating in an import financing) of the FX Regulations. The affidavit must state that the equivalent to the proportional part of the annual limit of SIMI category A was not exceeded when adding the amount of the payment whose processing is being requested to the total of the payments processed from January 1, 2022.

Communique “A” 7601 established that the application of the current scheme prior to the effective date of Communique "A" 7532 remains in force for companies in the energy sector and/or those engaged in the construction of infrastructure works for that sector.