The recently elected government of Argentina has issued the following measures related to the Argentine exchange control regime and export duties:

Exchange control regime modifications

Importations of goods and services

On December 17, 2015, the Argentine Central Bank has issued Communication ‘A’ 5850, which introduced significant modifications to the Exchange Currency Market related to payment for the import of goods and services. Payments for the import of goods on shipments dated on or after December 17 can be executed without any restrictions.

Certain public and public guaranteed debt for the import of goods dated on or before December 16, 2015, can be also paid through the Argentine exchange currency market without limitations.

For outstanding debt, a schedule has been outlined limiting the debts (from USD 2 million to USD 4 million) that each importer may pay per calendar month. Commencing June 1, 2016, there will be no limit on the amount of debt to be paid.

Payments for the import of services provided on or after December 17 can be also executed without any restrictions. Likewise, other schedule limiting the monthly payments of the outstanding debt from import of services has been outlined until June 2016.

Purchase of foreign currency by Argentine residents

Resident individuals and corporations (with certain exceptions) and local governments may access to the Exchange Currency Market to purchase foreign currency without the previously required approval of the Central Bank, for amounts not exceeding USD 2 million in the calender month. The currency must be used for certain listed payments as loans granted to non-residents or direct investments abroad by Argentine residents.

Financial debts with non-resident entities

Communication ‘A’ 5850 also provides that all financial debts incurred abroad by the financial sector, the non-financial private sector, and local governments no longer must settle the related funds through the Exchange Currency Market.

If a resident entity seeks repayment of principal or interest through the exchange currency market (i.e., the Argentinian resident needs to acquire the foreign currency via this market to repay the debt), then the funds lent by the non-resident entity must comply with the Exchange Currency Market settlement requirements.

For new debts (or renewals) incurred on or after December 17, 2015, the minimum period to retain the funds in Argentina is reduced from 365 to 120 calendar days.

The requirement to initiate a non-interest-bearing deposit amounting to 30% of the borrowed funds has been repealed.

Export duties relief

Decree 133/2015 provides a 0% tax rate for the export of most agricultural and industrial products, effective on or after December 17, 2015. Certain exceptions may apply.