Circular COPEX 1-162: Foreign Currency Settlement for Exports with Imported Components under Temporary Admission

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 1410
02/05/89

TO THE ENTITIES AUTHORIZED TO OPERATE IN FOREIGN EXCHANGE AND FOREIGN EXCHANGE BROKERS:

Ref.: Circulars Collections and External Payments COPEX-1- 162.

We address you and through you the interested parties with reference to the provisions made known by Communication "A" 1397 of 13.4.89 and its amendments, to bring to your knowledge the following resolution referring to the negotiation of foreign currency from exports of products containing imported components, under the temporary admission regime, and whose shipping permits have been registered with the National Administration of Customs until 17.4.89 or of products included in Law No. 21.453 whose sales were declared to the National Grain Board until 18.4.89.

The portion of the FOB value of export products consisting of foreign-origin goods entered into the country under the regime of Decree No. 1554/86, pending cancellation as of 13.4.89, shall be settled at the buyer's exchange rate of the Free Exchange Market of the Bank of the Argentine Nation on the business day prior to the exchange closing of the operation. For the remainder of the FOB value, the provisions established in Chapter I, point 2. of Communication "A" 1409 of 2.5.89 shall be followed.

When the foreign currency from the export is applied to the cancellation of loans in foreign currency (point 1.5. Circular COPEX - 1, Communication "A" 12 and complementary), which had entered until 13.4.89 through the former Official Exchange Market and the Free Exchange Market, in accordance with the conditions stipulated in Chapter I, point 3. of Communication "A" 1409 of 2.5.89, the portion of foreign currency corresponding to the foreign-origin goods temporarily entered, pending cancellation as of 13.4.89, must be ceded to this Bank at the buyer's exchange rate of the Free Exchange Market of the Bank of the Argentine Nation at the close of operations of the previous business day, and may be repurchased at the exchange rate established in Chapter I, point 2., of Communication "A" 1409 of 2.5.89.

The treatment provided above shall be granted to the financing operations of promoted exports (point 2.3. of Circular OPRAC-1, Communication "A" 1205 and complementary) and credit lines (formula 2417) that comply with the indicated conditions.

To access this exchange treatment, for the CIF value of the goods imported under the aforementioned temporary admission regime, its amount must arise from the shipping permit, a copy of which with the proof of customs shipment completion must invariably accompany the submission of the respective formula.

The interested parties must reliably prove the existence of the debt abroad as of 13.4.89 before the intervening entity of the temporarily imported inputs incorporated into the exported products.

The foreign currency from exports of goods included in the provisions of the first paragraph of this Communication, containing imported inputs under the regime of Decree 1554/86, settled during the period from 18.4.89 to 27.4.89 inclusive, may be re-settled, for the portion corresponding to the imported inputs under the conditions set forth.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Clodomiro R. Raposo
Deputy Manager of
Foreign Trade

Antonio G. Zoccali
General Deputy Manager