Exports with no commercial value

In Communication “A” 4839, enforceable as of September 9, 2008, the Argentine Central Bank established that financial entities appointed to follow-up export transactions can certify compliance with foreign exchange regulations with respect to exports made using the customs’ advantage “EXPONOTITONEROSO” (export transactions with no commercial value) as long as the following requirements are complied with:

1.    Restitution of previously imported goods:

(a)   The tariff position registered in the bill of lading corresponding to the exported goods must match with the one corresponding to the imported goods, and the amount of exported goods must not exceed the amount of the imported ones.

(b)   The exporter must submit a sworn statement indicating that: i) he/she has never owned the goods being returned and that the goods have always belonged to the foreign resident receiving them; and (ii) that no payments have been made abroad as consideration for the import transaction.

(c)   The exporter must provide an independent audit certification evidencing that from the company’s balances and documentation, there is nothing which would invalidate the statement given.

(d)   The financial entity intervening in the transaction must register the restitution in the 2nd copy of the clearance form.

2.    Exports made to replace defective exported goods covered with insurance; without re-importation of the defective goods:

(a)   The exporter must provide evidence of the importer’s claim when receiving the defective goods, along with the insurance documentation provided to the importer when the claim was made.

(b)   The re-importation of goods to the country or its placement must be of economic disadvantage due to the type good imported and/or the goods’ deficiencies; this must be professionally certified.

(c)   The person/entity receiving the goods must be the same who imported the defective ones in the first place, or someone by that person designated.

(d)   The tariff position registered in the bill of lading from the exported goods must match with the one from the defective goods; or, according to professional certification, the goods exported in replacement must have been part of the goods previously exported which resulted defective.

(e)   The exporter must submit a sworn statement indicating that he/she did not and will not receive any kind of payment for the goods sent in replacement of the defective ones.

(f)    The exporter must also submit an independent audit certification proving that from the company’s balances and documentation there is nothing which would invalidate the exporter’s statement.

This alternative may not be used together with the one established by Communication “A” 4025 as amended, for the case of wastage, shortage and/or deficiency.

3.    Exports of dangerous waste for destruction purposes:

The exporter must submit:

(a)   Copy of the contract between the local exporter and the foreign importer where it is stated that the importer commits itself to the destruction of the dangerous waste.

(b)   Copy of the decision taken by the Environmental and Development Agency in which it authorizes the export dangerous waste.

(c)    A record stating that the item exported has the customs’ advisory label “RESIDUOPELIG”.

4.    Exports not included in the above, provided that the FOB value registered in the bill of lading does not exceed the equivalent of US$ 10.000:

The exporter must:

(a)   Submit a sworn statement indicating that the imported goods will not be the cause of any payment, and that they have been given to a non-Argentine resident without any consideration.

(b)   Submit an independent audit certification proving that from the company’s balances and documentation the transfer of goods to the non-Argentine resident was made without consideration.

(c)   Not have used this alternative for sums exceeding the equivalent to US$ 100,000 per calendar year.

In all these cases, the financial entity intervening in the transaction must inform to the Sub-management Agency of Foreign Exchange Regulations within the next five business days following the export transactions for which the approval to the value of the goods was granted; informing specific details of the exporter and the transaction.

5.    If the export does not fall in any of the above, the financial entity in charge of following up the transaction must file a request with the Argentine Central Bank. The entity must inform specific details of the exporter and the transaction, as required by the Communication.