The National Ministry of Productive Development (ex - National Ministry of Production) (Ministry) issued the Resolution No. 1/2020 (Resolution) introducing significant changes to the Import Monitoring System (IMS) and the products falling under Automatic Importation Licenses (AL) and Non Automatic Importation Licenses (NAL).

Below you will find the main changes introduced by the Resolution:

(i) Expansion of the tariff codes subject to NAL. The Resolution modifies the list of tariff codes reached by NAL by adding more than 300 new tariff codes that will now be subject to the NAL regime. According to official sources, with these inclusions, 14.8% of universe of tariff codes are subject to NAL. This implies an increase of 2.8% compared to the 12% of tariff codes that were subject to NAL before the Resolution.

(ii) Reduction of the tolerance margin. The Resolution lowers the tolerance margin to 5% (assessed over the FOB value) for merchandise subject to NAL. The former regime provided a tolerance of 7%. As in the previous regime, there will be no limitations when the documented amount is less than the indicated in the license.

(iii) Reduction of validity. The Resolution limits the validity of import licenses to a 90 calendar-day term, which implies a substantial reduction compared to the 180 calendar days foreseen by the previous regime. This period may be extended at the request of the importer, as long as the extension request is made within at least 15 days before the expiration date and invoking substantiated reasons. It is worth clarifying that this period of validity does not reach the merchandise that is declared under the importation special staggered regime, where the 180 calendar-day period established in art. 5 of Resolution No. 1243/1992 remains effective.

(iv) New enforcement authority and the effective date of its entry into force. The new authority in charge of implementing the SIMI regime is the "Undersecretary of Policy and Commercial Management " of the "Secretariat of Industry, Knowledge Economy and External Commercial Management" of the Ministry. The Resolution is effective as of January 10, 2020. That is to say that, as from tomorrow, their previsions will be fully operational.

(v) Licenses already issued before the effective date. Import licenses approved prior to the entry into force of the Resolution, will remain in effect until its use or the compliance with the term for which it was granted, whichever comes first.