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In brief

On 10 April 2023, the National Executive Power issued the Decree of Necessity and Urgency No. 194/2023 (“Decree 194“) with the purpose of re-establishing, on an extraordinary and transitory basis, the Export Increase Program  (“Program“) created by Decree of Necessity and Urgency No. 576/2022 (“Decree 576“) for those subjects and producers of regional economies that have exported at any time during the 18 months immediately prior to the entry into force of this decree, goods whose tariff positions of the Common Nomenclature of MERCOSUR (N.C.M.) are listed in Annexes I and II of Decree 194.


In focus

On 10 April 2023, the National Executive Power issued Decree 194 with the purpose of re-establishing, on an extraordinary and transitory basis, the Program created by Decree 576 for those subjects and producers of regional economies that have exported at any time during the 18 months immediately prior to the entry into force of this decree, goods whose tariff positions of the Common Nomenclature of MERCOSUR (N.C.M.) are listed in Annexes I and II of Decree 194.

In this regard, Decree 194 determines the following:

  1. Adhesion to the Program: (a) will be voluntary for those subjects that have exported at any time during the 18 months immediately prior to the entry into force of this decree, the goods whose tariff positions of the NCM are listed in Annex I of Decree 194; and (b) must be made in accordance with the mechanism established in Decree 576 (“Producers“).
  2. It is conditional, for the purposes of adhesion to the Program, to have registrations of Sworn Statements of Sales Abroad (DJVE for its Spanish acronym), if applicable, made before or after the effective date of Decree 194 for the goods indicated in Annex I thereof, provided that they correspond to soybean sale and purchase transactions executed as from the effective date of Decree 194 and until 31 May 2023, including sale and purchase transactions with price in Argentine pesos “to be fixed” after such date.
  3. The Central Bank of the Argentine Republic (BCRA for its Spanish acronym) will establish the mechanisms so that the counter-value of the goods indicated in Annex I of Decree 194 exported, including the cases of pre-financing and/or post-financing of exports from abroad or an advance of settlement, by the Producers adhering to the Program and complying with the requirements set forth in Decree 194, shall be settled at ARS 300 for each United States dollar through the foreign exchange market (MLC for its Spanish acronym).
  4. The Producers that adhere to the Program shall, if applicable: (a) liquidate not later than 31 May 2023, inclusive, the foreign currency referred to in the previous section under the terms and conditions established by the complementary regulations, including pre-financing and/or post-financing of exports from abroad or an advance of settlement; and (b) register the DJVE and the definitive export destinations for consumption for goods not covered by Act No. 21. 453 and its amendments, under the conditions set forth in Decree 194.
  5. With respect to the definitive export destinations for consumption, the DJVE, as well as when a pre-financing or post-financing of exports from abroad or a liquidation advance is complied with, the Producers adhering to the Program will pay the duties, taxes and other items under the conditions and terms established by the applicable regulations and according to the scheme provided in Decree 194.
  6. The Program is extended, on an extraordinary and transitory basis, for regional producers that meet the eligibility requirements established by the regulations issued by the Ministry of Economy, through the Secretariat of Agriculture, Livestock and Fisheries, taking into account: (a) the supply capacity in the local market; (b) the level of employment generated and the compliance with the sectorial price agreements; and (c) the export at any time during the 18 months immediately prior to the entry into force of Decree 194 of goods whose tariff positions included in the sections of the NCM listed in Annex II of Decree 194 (“Regional Producers“).
  7. Adhesion to the Program shall be voluntary for the Regional Producers who, if they opt for it, shall: (a) adhere in accordance with the mechanism set forth in Decree 576; and (b) comply with the price agreements for the local market established by the Secretariat of Commerce and the other conditions established by the Ministry of Economy.
  8. The BCRA shall establish the mechanisms so that the counter-value of the goods indicated in Annex II of Decree 194 exported, including the cases of pre-financing and/or post-financing of exports from abroad or a liquidation advance, by the Regional Producers adhering to the Program and complying with the requirements set forth in Decree 194, is settled at ARS 300 for each US dollar through the MLC.
  9. The Regional Producers that adhere to the Program, and that are effectively applicable to them, shall settle the foreign currency referred to in the preceding paragraph under the terms and conditions established by the complementary regulations, and such term shall not exceed 31 August 2023, inclusive, including the cases of pre-financing and/or post-financing of exports from abroad or an advance of settlement.
  10. With respect to the definitive export destinations for consumption, as well as when a pre-financing or post-financing of exports from abroad or an advance payment is made, the Regional Producers that adhere to the Program shall pay the duties, taxes and other items under the conditions and terms established in the applicable regulations, and such term shall not exceed 30 August 2023, inclusive, and the exceptional and transitory counter value provided for in section (viii) shall be applied.
  11. A proportion of the amounts actually received by the national government, on an incremental basis, as export duties for the goods indicated in Annex I of Decree 194 and by virtue of the application of the exceptional and transitory counter value detailed in the preceding section will be destined to finance programs aimed at addressing the negative effects of the drought.
  12. The BCRA will implement the necessary mechanisms so that the result of any foreign currency settlement under the Program is credited to a special account whose remuneration is determined according to the evolution of the reference exchange rate of BCRA Communication “A” 3500, under the terms and conditions established by the complementary regulations of such institution.

The Resolution became effective on 3 April 2023.

Click here to access the Spanish version.

Author

Gabriel Gomez-Giglio is partner at Baker McKenzie’s Buenos Aires office, chair of the Latin America Banking & Finance Practice of Baker McKenzie and a member of the Global Steering Committee of the Firm’s Financial Institutions Industry Group. He advises clients on a variety of general commercial issues. His practice focuses on the areas of transactional and regulatory matters, including but not limited to multinational financial transactions, commercial agreements and mergers and acquisitions. Gabriel is a member of the Board and Adjunct Professor of Law at Universidad Torcuato Di Tella and a visiting professor with the Centre for Commercial Law Studies, Queen Mary College, University of London.

Author

Francisco José Fernández Rostello is a partner and member of the Firm’s Banking & Finance Practice Group in Buenos Aires. He has worked for the International Swaps and Derivatives Association and for Société Générale, New York Branch. He is knowledgeable on matters related to issuance of debt, derivatives transactions, local and cross-border financing, and securities transactions.

Author

Juana Allende is an Attorney at Law in Baker McKenzie, Buenos Aires office.

Author

Jeronimo Argonz is an Attorney at law in Baker McKenzie, Buenos Aires office.

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