Argentina: Extension Of Term For The Repatriation Of Foreign Currency Proceeds From Exports Of Goods

The Ministry of Economy extended certain terms previously reduced for the repatriation and settlement of foreign currency proceeds from exports of goods.

Resolution No. 142/2012 (see "Reduction in the Terms for the Transfer into Argentina of Foreign Exchange Proceeds from Exports" in Marval News # 116 dated April 27, 2012) had reduced the terms for the transfer into the financial system of foreign exchange proceeds from export of goods established by Resolution No. 269/2001.

On May 28, 2012, Resolution No. 231/2012 of the Ministry of Economy ("Resolution 231") was published in the Official Gazette. Resolution 231 extended from 15 to 30 calendar days the term to repatriate and settle foreign currency proceeds from (i) transactions with certain tariff codes the settlement term of which previously was 15 calendar days pursuant to Appendix I of Resolution No.142/2012 of the Ministry of Economy, and (ii) transactions between related companies.

According to Resolution 231, the regulation is effective as from the date of its publication in the Official Gazette; that is, May 28, 2012. While it is clear that the extension of the term will benefit transactions with shipment date as from May 28, 2012, the regulation is unclear as to whether the new term applies to transactions with shipment date prior to that date.

Finally, Resolution No. 230/2012 of the Ministry of Economy, also published in the Official Gazette on May 28, 2012, has delegated the notification to those exporters that have been excluded by the Secretary of Foreign Trade from complying with the terms established by Resolution No. 142/2012 of the Ministry of Economy to the Federal Tax Authority ("AFIP"). Such exception applies to exporters that registered exports of goods for an amount of less than US$ 2,000,000 during 2011, in accordance with Resolution No. 187/12. (See "New Changes to the Terms for the Repatriation of Foreign Currency Proceeds from Exports of Goods" published in the present edition).

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