New government in Argentina: measures regarding imports

On December 10, 2023, Argentina's new president, Mr. Javier Milei (La Libertad Avanza), took office.

Since embarking on his campaign, Mr. Milei has consistently expressed his commitment to implementing a profound transformation in the state's framework. His agenda includes:

• A reduction in public spending.
• Eliminating subsidies for general services.
• Implementing substantial fiscal adjustments.

Despite assuming office only three weeks ago, the new president has already implemented several measures on economic matters and imports of goods and services.

Prior importation and payment process (in force until December 13, 2023)

On October 11, 2022, AFIP (Federal Administration of Public Revenues) and the Secretary of Commerce of Argentina issued General Resolution No. 5271/2022, which was in force until December 13. 2023.?

The following outlines the key provisions specified in this resolution:

1. Importers had to request import approval through SIRA (Import System of the Argentine Republic), reporting the company's general tax situation, customs risk matrix, and economic and financial capacity.
2. AFIP (Federal Administration of Public Revenues) had to analyze the above information within 60 days of its submission, approving or rejecting the SIRA declaration.
3. The Secretary of Commerce and the Central Bank of the Republic of Argentina (BCRA) had to inform the date to access the foreign exchange market to pay the import, which was recorded in the SIRA declaration.
4. On the date indicated in the SIRA declaration, importers had to submit a payment application to their banks to obtain foreign transfer authorization.

New government measures- Communication No. 7917

On December 13, the BCRA issued Communication No. 7917.

The main changes established by the communication above are detailed below:

• The Argentine Republic's (SIRA) import system has been eliminated and replaced by a new one.
• For imports made after December 13, 2023, the requirement to obtain approval from the importer's bank and the BCRA to make import payments is eliminated.
• New periods allow access to the foreign exchange market to pay for imports made after December 13, 2023. This period will depend on the type of imported goods.
• The requirement to obtain the approval of the debtor's bank and the BCRA for the payment of imports will be maintained for imports made before December 13, 2023.

IA Insights

The measure implemented is expected to increase flexibility for importers, facilitating the importation of products from abroad.

It will also provide greater predictability for creditors, who will have clarity on the timeframe for receiving payment for the goods sold.

It is important to note that this measure applies to imports made after December 13, 2023. Therefore, it does not extend to prior imports, for which payment approval from the importer's bank and the BCRA remains necessary.

Even so, further announcements are expected in the following weeks, specifically addressing payments for imports made before December 13, 2023.

Additionally, given the prevailing economic challenges in the country, the government has announced that any liberalization of the exchange market for import payments will be implemented gradually.

Written by: Guido Soria

*This article is informative and is not to be used as legal, economic, or commercial advice.