Changes of the terms to repatriate exports of goods and services

Through Communication “A” 4860, in force as of October 30, 2008, the Central Bank set forth that proceeds of exports of goods collected in foreign accounts of the exporter that, pursuant to the regulations, are subject to mandatory repatriation (excluding those proceeds applied to cancel export pre-financings abroad) and advance export payments must be transferred within 10 business days to the respective accounts of local financial entities.

In the case of medium and long term pre-financings, such term should be counted as from the date when the funds are available to the exporter according to the terms of the respective agreements.

In the case of exports of goods, the communication maintains the term of 120 business days in addition to such terms set forth by the Secretary of Industry and Commerce, which is extended to 180 business days if the funds that are repatriated are a product of the collection of an export insurance (upon non-payment of the importer).

The new regulation eliminates the additional 120 business days to repatriate foreign currency proceeds of exports of services which, under the new rules, have to be sold in the local foreign exchange market within 15 business days of being collected in an account in Argentina or abroad.