In recent months, driven by a change in government, significant adjustments have been made to Argentina's foreign exchange and import/export regulations. These changes are of critical importance for local businesses and multinational corporations interested in the Argentine market.

On Dec. 22, 2023, the Central Bank of the Argentine Republic (Central Bank) introduced the Bonds for the Reconstruction of a Free Argentina (BOPREAL) program, which allows importers to allocate payments for commercial debts (including imports of goods and services), and fulfill tax and customs obligations, by subscribing to certain bonds issued by the Central Bank. The BOPREAL bonds are subscribed in pesos at the official exchange rate, denominated in U.S. dollars, and payable in U.S. dollars.

Below is a summary of the key aspects of the regulations currently in place:

Imports of goods and services:

A distinction is made between debts for imports incurred prior to Dec. 13, 2023, and debts for imports incurred after such date.

Debts incurred prior to Dec. 13, 2023:

  • To settle debts incurred prior to Dec. 13, 2023, importers were allowed to subscribe to qualifying BOPREAL bonds in an amount equal to the outstanding debt for imports registered with applicable customs entry documentation prior to Dec. 12, 2023.
  • Importers can subscribe to various series of BOPREAL bonds offering different terms and conditions involving, for example, the ability to access the foreign exchange market, transfer restrictions, early redemption, secondary market trades and applicable taxes. The initial two series of the BOPREAL bonds have been fully subscribed, and the bidding process for the third (and possibly last) series is scheduled to take place during March 2024.

Debts incurred after Dec. 13, 2023:

  • The new regulations make a distinction between imports of goods and imports of services provided by foreign entities.
  • Goods: Certain goods, such as petroleum oils, petroleum gases, bituminous coal and electric energy, can be paid immediately upon completion of the relevant customs entry registration. Other goods, such as pharmaceutical products, health-related materials, food and fertilizers, can be paid 30 days after completing their customs entry registration, as long as the provider presents a sworn statement from the importer about the intended use. Finished automobiles and other goods can be paid after 180 days from their customs entry registration. For all other goods, payment can be made in installments: 25% at 30 days, 25% at 60 days, 25% at 90 days and the remaining 25% at 120 days from the customs entry registration.
  • Services: Importers can immediately access the foreign exchange market for certain services, such as passenger transport, travel, audiovisual services, government services, health care services by specialized travel companies, additional identified health services and operations associated with withdrawals and credit consumption. For services provided by unrelated foreign entities after Dec. 12, 2023, access to the foreign exchange market is set at 30 days from the provision or accrual of the service. For services provided by affiliated foreign entities, a waiting period of 180 days is established. These thresholds supersede the previous restrictions on payment of services to foreign providers.

Exports of goods and services:

Current rules contemplate that the payment of exports of goods and services must be settled in the domestic foreign exchange market.

A distinction is made between exports of goods and exports of services.

  • Goods: The deadline for settling the foreign exchange varies depending on the type of goods, counting from the date of the applicable customs-issued shipment certificate.
  • Services: Generally, payments for the provision of services must be settled in the domestic foreign exchange market within 5 business days from the date the service was rendered.

The new Argentine government has taken measures to reduce the fiscal deficit and stabilize the foreign exchange market, including adjustments to exchange rates, cuts in public spending and the elimination of multiple import restrictions. These changes impact import and export operations, requiring careful evaluation to ensure regulatory compliance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.