Applicable Exchange Rate for Late Repatriation of Proceeds from Exports and Reentry of Import Payments

Through the issuance of Communication “A” 5630 on September 11, 2014 the Central Bank of Argentina (the “Central Bank”) reinstated Communication “A” 3608 which had been suspended by Communication “A” 4668 as of May 16, 2007. Communication “A” 3608 regulates the applicable exchange rate for the settlement of proceeds from exports of goods and services which were collected after the expiration of the applicable term.
(i) Late repatriation of export proceeds
As of September 26, 2014, foreign currency proceeds resulting from the exports of goods and services, which are transferred through the Foreign Exchange Market (“FX Market”) after the expiration of the applicable legal term must be sold for Argentine Pesos (“Pesos”) by the intervening entity at the reference exchange rate informed by the Central Bank on the last day of the applicable legal term. Thus, in the event the applicable exchange rate at the date of the settlement is higher than the exchange rate which was in force on the last day of the applicable legal term, this last exchange rate must be applied. 
Furthermore, the foreign currency settled at the reference exchange rate must be sold by the intervening entity to the Central Bank on the day the settlement occurs and at the applied exchange rate. In the event of non-US dollar currencies, the intervening entity shall carry out an arbitration to such foreign currency and then sell such funds for Pesos.
However, this differential exchange rate may not be applicable if the infringement to the obligation to repatriate proceeds from exports took place due to lack of payment from the foreign importer, provided that: (i) the transaction was reported under the figure of “collection efforts” of the exporter (“gestión de cobro”) under the terms of Communication “A” 5274; and (ii) once the funds are collected, they are settled within 5 business days as of the day of collection. Moreover, the intervening entity must request the corresponding documentation evidencing the date of the payment by the importer from the exporter.
(ii) Reentry of import payments and exemptions to prove the reentry of foreign currency
Communication “A” 5630 also amended Section 5 of Exhibit II of Communication “A” 5274 which regulates follow-up of payments made prior to the customs entrance registration of the goods. Accordingly, as of September 26, 2014, the reentry of foreign currency, for the purpose of regularizing the payment of such imports, shall be sold for Pesos at the reference exchange rate informed by the Central Bank at the day in which the advance or sight payments were made.
Finally, Section 5.7 of Communication “A” 5274, which regulates the exceptions to prove the reentry of import payments, was also amended. In this regard, as of September 12, 2014, in the event of outstanding amounts or an infringement by the foreign supplier, the importer may request the intervening entity to inform the fulfillment of the obligation to demonstrate the nationalization of goods or the reentry of the foreign currency, provided that this option has not been exercised during the calendar year for an amount higher than USD 10,000. This modification eliminated the alternative to request such exemption in the event of transactions of an amount lower than USD 10,000.