Export to Argentina customers can not pay the balance.
With all imports except energy, capital goods and pharmaceuticals now subject to import controls, it is hard to get foreign currency.
Since February this year, Argentina has required all imported goods to be declared in advance with a license.
On June 27 this year, the Central Bank of Argentina issued Notice No. A7532, extending the import foreign exchange control measures to the financing system for the import of services and non-automatically licensed products for a period of 3 months until September 30 this year, and then extended to the end of this year.
Apply Import License (SIMI) for Class A or Class B products: Maintain access to the foreign exchange market for SIMI Class A products based on the lower amount of the following calculations, i.e., average monthly imports in 2021 plus 5% or total imports in 2020 plus 70%; Category B imports can only enter the foreign exchange market 180 days after the customs clearance.
Imports are also domestic producers and luxury goods: Argentina’s central bank, in coordination with the Ministry of Production and Development, extended the foreign exchange control measures to cover imports that are also produced in the country. Importers of such goods will have to wait 180 days before they can enter the foreign exchange market, and luxury goods (such as luxury cars, aircraft and heavy locomotives) will have to wait 360 days.
Massa said he would issue a resolution that would give all small and medium-sized companies access to a $50,000 upfront payment on import contracts.
On November 2, the first day of the system’s opening, a total of 1,029 Argentine importers registered to import in their own dollars, with a FOB value of $2.5 billion, including 596 small and medium-sized enterprises and 422 large enterprises, accounting for 37% and 62% of the total, respectively.
Among them, the main imports are machinery and generators, accounting for 24.3%, imported by mining and construction companies contracted for infrastructure construction projects; Telephone and transmission equipment products accounted for 6.6%, locomotives 3%, cameras and televisions 2.6%, and other products included bulldozers, vacuum cleaners, computers, cash registers, suitcases, Musical Instruments, backpacks and wallets.
That may be good news for Argentina’s exporters.
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Post time: Nov-13-2022