The new foreign exchange market and foreign trade regulations are welcome news for taxpayers. These new regulations should make it easier for resident companies to access the foreign exchange market and import goods.

Argentina's new administration (through different agencies such as the Central Bank, the Federal Tax Authorities and the Ministry of Production) has issued measures to relax controls on the foreign exchange market and foreign trade.

Foreign exchange control system

The BCRA (Central Bank of Argentina) has implemented new regulations aimed at relaxing the control measures on the foreign exchange market.

Before December 17, 2015, nonresidents needed the BCRA's approval to repatriate investments. Beginning December 17, 2015, the regulations allow non-residents to repatriate new direct investments (e.g., capital contributions), without the BCRA's prior consent, to the extent the investments entered the Argentine exchange market.

In connection with "blue chip swap transactions" (known in Spanish as "contado con liquidación"), the regulations no longer require that the assets transacted remain in the seller's portfolio for at least three business days.

Additionally, all services rendered or purchased abroad until December 16 can be paid during January, up to a maximum of US $2 million; the sum paid for such services, however, will be deducted from the US $2 million monthly limit currently effective for the accumulation of external assets. For February and thereafter, the BCRA has established a schedule of monthly limits to access the foreign exchange market.

SIMI (imports' integrated monitoring system)

In addition to striking down export duties on most products, the new government also repealed the DJAI (early import declaration system) and implemented SIMI (imports' integrated monitoring system).

Starting December 23, 2015, importers must file a declaration through SIMI. Such declaration must be approved by the agencies, which already take part or will take part in the system, according to their jurisdiction.

The agencies responsible for controlling these declarations must render their decisions in connection with their approval within 10 days. Once approved, the declarations are effective for 180 days.

The SIMI identification number must be submitted when registering the import for the consistency controls to be performed by the agencies and for verifying that the declaration has been validated.

Import licenses

In addition to the newly implemented SIMI, the government has replaced the repealed DJAI system with a system of LAPIs (prior automatic import licenses) and LNAs (prior non-automatic import licenses).

Imports for consumption of goods from every tariff heading (i.e., the number used to identify goods imported or exported) of the Mercosur's common nomenclature (NCM) is subject, under the new regulation, to the approval of prior automatic import licenses, except for those headings established therein.

Permanent imports of the goods included in Exhibits II to XVII of the regulation are subject to the prior non-automatic import licenses system. Such goods include toys, thread, woven clothes, motorcycles, tires, paper, metalwork, textile and chemical products, as well as optics, photography, film-making and medical-surgical tools and machinery.

Import licenses are effective for 90 days as of the date of approval through the SIMI.

With these new regulations, the new Argentine government likely aims to optimize and facilitate foreign trade operations, which is an area that has been subject to several restrictions and delays in the last years.

EY Argentina has an experienced group of more than 60 professionals fully dedicated to international tax, global trade and foreign exchange matters and can assist you in evaluating of the effect of these measures.

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