The Argentine Central Bank clarified the scope of the regime with regard to the follow-up mechanism applied to the export permits.
Through Decree No. 1722/2011, published in the Official Gazette on October 26, 2011 (the "Decree"), the Argentine government eliminated the exemption that released hydrocarbon and mining companies from the obligation to repatriate all the foreign exchange proceeds from the export of goods and, consequently, equaled the treatment of these companies to the rest of the exporters (see "Repatriation of Foreign Currency Proceeds of Exports - Exemption to Hydrocarbon and Mining Companies Removed" published in Marval News # 110 dated October 31, 2011)
On December 30, 2011, the Argentine Central Bank ("ACB") clarified the scope of the Decree with regard to the follow-up mechanism applied to the export permits.
Exports officially made since or on October 26, 2011
The Decree revokes the provisions of:
Communication "A" 3971 of the ACB, which considered that the obligation to repatriate foreign exchange proceeds from export permits (for consumption purposes), corresponding to the exports of goods of mining projects with foreign exchange stability, has been fulfilled as long as the export company proves that the exported goods belong to the mining project by which the company obtained the tax stability; and Communication "A" 3978 of the ACB, which stated that the obligation to repatriate foreign exchange proceeds from export permits of hydrocarbon companies was deemed to have been fulfilled when the foreign exchange proceeds of at least 30% of the FOB or CyF...