Changes in the Export Increase Program

On October 23, 2023, through Decree 549/2023, the Argentine Executive Brach readjusted the Export Increase Program on an extraordinary and transitory basis, to continue strengthening the development of the export sector and the foreign currency reserves of the Argentine Central Bank (BCRA).

The Program had initially been implemented through Decree 576/2022 and was later reestablished in several occasions through the Decrees 443/2023 and 492/2023. For further details on the creation of the Program, see this article, and for further details on its expansion, see this other article.

The Decree allows exporters of goods and services to repatriate and liquidate at the official exchange rate 70% of the proceeds for their exports through the Foreign Exchange Market (FX Market), and to carry out purchase and sale transactions with securities acquired with settlements in foreign currency and sold with settlements in local currency (Inbound Blue-Chip Swap Transactions) for the remaining 30%.

The Decree establishes that the export duties must be paid at the effective exchange rate resulting from settling the currency in the FX Market and the result of the Blue-Chip Swaps operations.

 

The transactions in the Decree include:
 

1. export of goods of all merchandise in the Mercosur Common Nomenclature,
2. pre-financing and post-financing of such exports,
3. advance export collections, and
4. services provided in Argentina with effective use or exploitation abroad.

 

The deadline for this Program was originally set to be on November 17, 2023. The Decree states it is mandatory for all exports included in the Decree.

On November 21, by means of Decree 597/2023, the Program was extended until December 10. The Decree also included modifications to the procedure initially established regarding the entry and liquidation of Foreign Exchange from exports.

Accordingly, the countervalue of the operations included in the Program must be repatriated and sold for ARS (i) 50% through the FX Market and (ii) the remaining 50% to execute Inbound Blue-Chip Swap Transactions.

Before December 31, 2023, exporters must also pay the fees and taxes AFIP established, considering the exceptional and transitory exchange rate in the Decree.

The BCRA established through Communications “A” 7873 and “A” 7894 that the proceeds from the exports transactions under the Decree must be repatriated and liquidated in the FX Market within 5 business days after being collected.
 

The proceeds from the export transactions under the Decree liquidated for ARS through the FX Market can be:

 

(i) credited in a special account, the payment of which will be determined according to the evolution of the reference exchange rate in Communication "A" 3500, or

ii) applied to the direct subscription of BCRA Internal Bills in USD, payable in ARS at the reference exchange rate in Communication "A" 3500, under the terms and conditions established in the regulations.

 

The amounts for which Inbound Blue-Chip Swap operations have been carried out may be used for paying principal and interests of advances, pre-financing, and post-financing operations meant to finance those exports included in the Decree.