The Board of the BCRA has laid down regulations for implementing Decree No. 234/21 which creates the Investment Promotion Regime for Exports. This program is aimed at expanding existing businesses and encouraging new productive projects related to the forest industry, mining, hydrocarbon, manufacturing, and agro-industrial activities.
The companies that join this regime and make investments exceeding USD100 million may allocate up to 20% of the foreign currency proceeds from their exports to pay principal and interest on commercial or financial liabilities abroad and/or profits and dividends from closed and audited balance sheets and/or to repatriate non-residents' direct investments.
However, the amount so allocated cannot exceed 25% of the gross aggregate of foreign currency sold by the company in the Free and Single Foreign Exchange Market on a yearly basis.
According to the BCRA’s regulation, the proceeds from exports of goods as under the promotion regime may be assigned, subject to the limits set forth in the decree, to:
- Pay upon maturity principal and interest on debts for the import of goods and services.
- Pay upon maturity principal and interest on financial debts held abroad.
- Pay profits and dividends from closed and audited balance sheets.
- Repatriate non-residents' direct investments in companies other than parent companies of local financial institutions.
The exporters who choose this option must appoint a local financial institution to follow up the project by:
- Ensuring that exporters have an “Export Investment Certificate”.
- Ensuring that the allocated portion of the goods exported are in agreement with the approved project.
- Monitoring shipping permits and pending funds.
Any export proceeds pending allocation may be deposited in the exporters’ accounts held in correspondent banks of local financial institutions abroad and/or in their accounts in foreign currency held in local financial institutions until they are used.
April 8, 2021.