Argentinean authorities have pursued a comprehensive import substitution strategy over the past several years in an attempt to promote domestic production and maintain a substantial trade surplus with the rest of the world. This has resulted in the imposition of a variety of import restrictions on products ranging from apparel to books and motor vehicles, and has created tensions with neighbouring Brazil and other countries. Argentina’s latest attempt at protectionism involves the establishment effective from 1 February of an “anticipated sworn declaration of import” (declaración jurada anticipada de importación, or DJAI), which will require importers to submit a sworn declaration with certain information to the Federal Public Revenue Administration (AFIP) prior to the issuance of a request, purchase order or similar document used for completing an overseas purchasing transaction.
According to AFIP General Resolution 3252/2012, AFIP will enable relevant government agencies to access the information included in the sworn declaration. These agencies will then approve or reject the declaration (or possibly require additional information) following an evaluation. If the declaration is approved, the importer will have to enter the numeric code associated with that declaration in the appropriate import and foreign exchange databases at the time of entry.
AFIP General Resolution 3255/2012 provides additional details on the information that must be submitted as part of the sworn declaration process as well as the products that are exempt from this requirement. Required information includes the importer’s tax identification number, the FOB value of the goods and the currency used, the tariff classification/AFIP code, the type and quantity of the goods to be imported, the state of the goods, the country of origin and the country where the goods were shipped. Goods exempt from the DJAI requirement include goods entered under Argentina’s re-importation regime or the regime to compensate for goods shipped with defects, donations, samples, diplomatic shipments, courier and postal shipments, and in certain other instances. Also exempt are goods shipped to Argentina prior to 1 February, while import operations governed by an irrevocable letter of credit or an equivalent document issued prior to 1 February or where an anticipated payment has been made prior to that date will be provided additional flexibility.
General Resolution 3255/2012 also indicates that DJAIs will be processed though a single electronic window. The government agencies tasked with examining the sworn declarations will be identified at the time the declaration is filed and will be required make any observations electronically within 72 hours from the time of submission of a DJAI, although that time limit can be extended to a maximum of 10 days under certain circumstances. The import process will continue if no observations are filed in the single electronic window; if any observations are filed, the importer will be informed and the relevant government agency will consider those observations and take any appropriate steps. DJAIs will be valid for 180 days from their date of approval with the possibility of extensions.
The information issued by Argentinean authorities on this matter remains vague and the full impact of the DJAI system will only become evident in the coming weeks and months. Some argue that this mechanism could conceivably be used as an informational or statistical tool or as a means to prevent tax fraud and money laundering. However, there is no question that the sworn declaration could also potentially be used by Argentinean authorities to severely restrict the flow of imports into the country.
