Circular on External Receipts and Payments - COPEX 1 - 23

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 189 02/08/82
TO FINANCIAL ENTITIES AUTHORIZED TO OPERATE IN EXCHANGE AND EXCHANGE BROKERS:
Ref.: Circular ON EXTERNAL RECEIPTS AND PAYMENTS.
COPEX - 1 - 23
We address you to inform you that it has been decided to modify point 2 of Chapter II of Communication "A" 12, Circular COPEX 1 dated 2.3.81., in the following manner, with respect to goods that are shipped as of this date:

II. Foreign Exchange Regime for Imports.
2 - Provisions regarding Capital Goods.
2.1. Conditions for the negotiation of operations.
The purchase of capital goods included in the list of Annex I, whose FOB value does not exceed the sum of USD 2,000,000 or its equivalent in other currencies, must be carried out in accordance with the following minimum payment conditions:

Purchase Amount | More than USD | Up to USD | Cancellation a) - | 50,000 | - | According to the rules of the general payments regime for imports. b) 50,000 | 250,000 | 1 year. c) 250,000 | 500,000 | 2 years. d) 500,000 | 1,000,000 | 3 years. e) 1,000,000 | 1,500,000 | 4 years. f) 1,500,000 | 2,000,000 | 5 years. g) 2,000,000 | - | To be proposed to the Central Bank, in formula 3124.

The interest rates for such financings will be adjusted as indicated in point 1.3.1.
For acquisitions exceeding USD 50,000, advance payments up to 5% of the FOB value of the purchase will be admitted upon shipment, and additionally, an amount may be paid against the delivery of shipping documents, which can total up to 15% when combined with the amount previously transferred for said formalization. In cases where this allowance is used, the import must be instrumented with a documentary credit for an amount no less than the total paid until the delivery of shipping documentation, in which the amortization conditions of the balance financed in installments will be stated. For the making of advance payments, the corresponding documentary credits must record that the exporter must deliver the respective shipping documentation within the validity period of the credit and that, otherwise, they commit to refund the transferred amount within 10 days following the expiration of said period. Amortizations for financings corresponding to items b) to f) of the preceding scale (85% of the FOB value as a minimum) must be made through equal installments in amount and periodicity, the first maturing at least 6 (six) months from the date of shipment.

2.2. Procedure for operations.
Entities authorized to operate in exchange can directly process private sector operations, in accordance with general provisions, and may also process transfers corresponding to freight and insurance premiums for exports. For operations exceeding USD 20,000 or its equivalent in other currencies, Form 3125 shall be used (continuing with its sequential numbering), in which the payment conditions will be recorded in "Observations", and they must be sent to the Central Bank for statistical purposes within three business days of their issuance. Inquiries that must be lodged regarding the regime of this Circular will be made in form 3124.

2.3. Other provisions.
The following are exempt from this regime:

• Imports that have financing granted by international or national external credit organizations that cover at least 85% of the FOB value, in which case the conditions established by the respective loan contracts will apply.
• Imports carried out by firms located in the National Territory of Tierra del Fuego, Antarctica and South Atlantic Islands (Law No. 19.640), which may be paid in full or partially against shipping documentation or with installment financing.

We salute you very respectfully.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Jorge E. Magistrelli
Manager of Foreign Exchange and Changes
Evaristo H. Evangelista
Deputy General Manager