Through Communication "A" No. 7917 issued by the Central Bank (hereinafter referred to as "BCRA"), the national government has begun to outline the new control system for payments for the importation of goods and services. Although it will no longer be necessary from now on to submit a prior request to access the foreign exchange market to purchase US dollars, import payments will continue to be deferred.

This communication implies that the local importer will no longer need to submit a declaration through the "System for Imports of the Argentine Republic" (SIRA) or "System for Imports of the Argentine Republic and Payments for Services Abroad" (SIRASE) to pay for goods or services abroad, respectively.

These control and prior authorization systems — which had been implemented by General Resolution 5271 jointly issued by the Federal Public Revenue Administration (AFIP) and the Ministry of Commerce— will cease to be used and will be replaced by a new online system that the BCRA will soon implement. This system will be exclusively statistical and informational, so prior approvals will not be required to make import payments.

This communication could be interpreted as a first step towards opening the foreign exchange market, although restrictions continue for imports prior to the publication of this communication, as well as payment deferrals in general.

Regarding access to the Foreign Exchange Market for payments for the importation of goods, the new provisions can be summarized as follows:

• It will not be necessary to have a declaration made through the "SIRA" system with the "Salida" status for imports of goods with customs entry registration from 13/12/2023 onwards, nor validate the operation in the "Single Foreign Trade Current Account" computer system.
• The following goods can be paid immediately from the customs entry registration: (i) petroleum or bituminous mineral oils, their preparations, and residues; (ii) petroleum gases and other gaseous hydrocarbons; (iii) non-agglomerated bituminous coal; (iv) electric energy.
• The following goods can be paid within 30 running days from their customs entry registration: (i) pharmaceutical products and/or inputs used in their local production, other goods related to health care, or food for human consumption; (ii) fertilizers and/or phytosanitary products and/or inputs that can be used for their local production. The bank must have the importer's sworn statement stating that the goods will be used for the purposes outlined in this point.
• Finished automobiles and goods corresponding to the tariff positions detailed in point 12.2 of the consolidated text of the Central Bank regulations on "Foreign Affairs and Exchange" can be paid within 180 running days from their customs entry registration.
• For the rest of the goods, payment can be made within the following periods counted from the customs entry registration: (i) 25% from 30 running days; (ii) an additional 25% from 60 running days; (iii) another additional 25% from 90 running days; (iv) the remaining 25% from 120 running days.
• Freight and insurance that are part of the purchase agreement with the seller can be fully paid from the first date the importer has access to the foreign exchange market for the covered goods.
• Access to the Foreign Exchange Market for the payment of imported goods, whose customs entry registration occurred until 12/12/2023, will require prior approval from the BCRA. The exceptions outlined in the communication are the following: (i) payment corresponds to operations financed or guaranteed by local or foreign financial entities, international organizations, and/or official credit agencies; (ii) payment is made within the framework of the promotional regime established by decree No. 277/2022 for the oil and natural gas industry, or the promotion regime for the knowledge economy established by decree 679/2022.
• All transactions must be validated, at the time of access to the foreign exchange market, in the online system that the BCRA will soon implement. In the case of transactions carried out between 12/13/2023 and the date of system implementation, banks will have 10 days from implementation to report the transaction.
• The communication includes some exceptions for the payment of imports with pending or pre-established customs entry registration deadlines. Among others, these include: (i) the importer accesses the foreign exchange market with funds originated from an import financing provided by a local financial entity from a credit line abroad; (ii) the client accesses the foreign exchange market simultaneously with the settlement of funds for advances or pre financing of exports from abroad or pre financing of exports granted by local financial entities funded by credit lines abroad; (iii) the importer accesses the foreign exchange market simultaneously with the settlement of funds originated in a financial indebtedness with foreign entities.

Regarding access to the Foreign Exchange Market for payments of service imports, the new provisions are as follows:

• It will not be necessary to have a declaration made through the SIRASE system in the "Aprobado" status or validate the operation in the "Single Foreign Trade Current Account" system.
• Entities may grant immediate access to the foreign exchange market without the need for prior approval from the BCRA for the following services: (i) S03 Passenger transportation services; (II) S06 Travel; (iii) S23 Audiovisual services; (iv) S25 Government services; (v) S26 Health services by travel assistance companies; (vi) S27 Other health services; (vii) S29 Operations associated with withdrawals and/or expenses with resident cards with non-resident suppliers or non-residents with Argentine suppliers.
• For the payment of freight services for import operations of goods provided or accrued from 12.13.23, the entity may grant access to the foreign exchange market after the provision of the service and from the date on which the transported good can be paid.
• For other services provided by unrelated counterparts from abroad starting from 12/13/2023, there is a 30-running day access period from the date of provision or accrual of the service. When it comes to a related counterpart from abroad, a waiting period of 180 days is established. Thus, the previously existing prohibition that prevented the payment of services to related counterparts from abroad is eliminated.
• Access to the Foreign Exchange Market for the payment of service imports provided until 12-12-2023 will require prior approval from the BCRA, except for the same exceptions applicable to the payment of goods.
• All transactions must be validated, at the time of access to the foreign exchange market, in the online system implemented by the BCRA.
• The Communication includes some exceptions for the payment of services provided or accrued from 12/13/23 before the prescribed deadlines, which are similar to those already described for the payment of goods importation.