Circular on External Receipts and Payments - COPEX 1 - 105

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 905 23/07/86
TO AUTHORIZED FINANCIAL ENTITIES FOR OPERATING IN EXCHANGE AND FOREIGN EXCHANGE BROKERS:
Ref.: Circular EXTERNAL RECEIPTS AND PAYMENTS - COPEX - 1 - 105

We address ourselves to you and through your intermediaries to those interested, to inform you that this Bank has resolved to establish an "ex officio" foreign exchange compensation regime, of a permanent nature, effective from 24.4.86. To this effect, it is ordered:
1. Incorporate into Circular EXTERNAL RECEIPTS AND PAYMENTS, COPEX - 1, point 1 - Exchange Regime for exports, section 2. "Other provisions", the following:
2. Other provisions
…
2.6. Ex officio foreign exchange compensation.
It applies when the rights and other taxes levying exports, must be settled at a different exchange rate than that corresponding to the negotiation of the currencies resulting from the sale abroad that originates the payment of the aforementioned taxes and only for the amount corresponding to these latter.
2. The regime to which the aforementioned "ex officio" foreign exchange compensation must adhere, is the one
detailed below:
a. The authorized entities intervening in the operation will proceed to sell to the exporter an amount in foreign currency equivalent to the amount in currencies of the rights and other taxes of the export in question and whose FOB value had been negotiated under the conditions indicated in point 2.6., applying the exchange rate at which the currencies were negotiated. b. Simultaneously, they will repurchase the same amount in currencies at the closing buyer rate for customers, of the single exchange market reported by the Banco de la Nación Argentina of the business day prior to the date of payment of the export duty and other customs taxes.
c. As consideration for the operations indicated above, the authorized entities
will carry out with this Bank, via Formulas 2600, the respective simultaneous purchases and sales for equal amounts and quotations. In Formula 2600, the number of this Communication will be recorded, in a visible place, detailing besides the usual information, in the column "Concept", name of the exporter and number of the corresponding shipping permit.

-- 2 - d. The intervening entities may directly process the compensations adopting the following precautions:
i. require from the importers a copy of the corresponding shipping permit with the completed customs clearance and of copy No. 4 of the Customs Tax Deposit Slip.
ii. Affect, for the compensation being made, with stamp and signature of the entity, the original documentation (exchange settlement) corresponding to the negotiation of the currencies in the single exchange market and the cited copy No. 4 of the Customs Tax Slip.
e. The compensations must be carried out within fifteen business days of the payment of customs duties. The operational method established in this Communication does not constitute the realization of actual exchange operations, but rather an "ex officio" purchase-sale, aimed at establishing accounting adjustments derived from the compensation regime. We greet you very respectfully. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Orlado N. Fernández Manager of Foreign Affairs and Exchange Julio A. Piekarz General Manager