Argentina Restrictions on Imports

Many U.S. exporters have begun hearing from their Argentine buyers that they are unable to access U.S. dollars to pay them for the imported goods. The Central Bank of Argentina (BCRA) tightened capital controls to preserve rapidly-dwindling foreign reserves by limiting importers’ access to hard currency (i.e., USD) to pay for imports. This measure will be in force for a minimum of three months but may be extended.  

Importers must wait six months from the time that products arrive in Argentina to access hard currency to pay their suppliers. Products that are deemed to be luxury items must wait an additional six months, totaling a year, before the importer is able to access funds for payment. Approval times within these established time windows can vary. When BCRA reserves increase, foreign exchange (FX) acquisition requests tend to be approved faster. 

The main restrictions are:

• Importers of goods based on non-automatic licenses will be able to access FX only 180 days after the time of arrival to Argentina, while luxury goods importers must wait 365 days.
• Importers of goods based on automatic licenses may access FX for amounts either equal to the monthly average of imports in 2021 plus 5 percent, or of imports in 2020 plus 70 percent.
• Importers of services are allowed access to the same amount of FX as allocated in 2021 but must wait 180 days for any excess amount. 
• Capital goods importers may access FX to pay 80 percent of the value when the goods are shipped from the port of origin, with the remaining 20 percent paid 180 days after arrival. However, a previous resolution that allowed for a 30 percent down payment was revoked.

Some exceptions exist. For example, imports of medicines and energy sector equipment are exempt from the new restrictions, as are services imports for shipping, cargo, and tourism. Moreover, local SMEs are also exempt if their exports increase by 15 percent compared to 2021 and their imports were less than $1 million.

The BCRA states that the decision is largely aimed at “responding to the extraordinary needs for foreign currency to meet energy imports” during the austral winter among other causes. However, Argentina has been struggling since pre-pandemic years with a challenging macroeconomic situation. Factors affecting the economy include a parallel exchange rate that has reached record highs in 2022 and continues to rise, slow economic growth, and increased inflation, which is predicted to be over 70 precent in 2022.

For further information please contact us: Office.BuenosAires@trade.gov.