In brief
As of 3 October 2023, by means of Resolution No. 808/23 of the energy secretariat, as amended ("Resolution"), exporters of crude oil, petroleum, gas and by-products are allowed to settle their exports at a preferential exchange rate as a result of settling 75% of such exports through the local exchange market and the remaining 25% through blue chip transactions ("O&G Dollar").
To be eligible for the O&G Dollar, exports must have a settlement date between 2 and 20 October 2023 inclusive and the actual export must be made by 30 November 2023 at the latest.
The Resolution is applicable to hydrocarbons from all the country's basins. It was enacted within the context of the need of the national state to strengthen its foreign currency reserves and the expectations generated around the result of the upcoming presidential elections to be held on 22 October 2023.
In focus
Decree No. 576/2022 ("Decree 576") created the Export Increase Program ("Program"), which was extended until 25 October 2023 by Decree No. 492/2023 ("Decree 492") on 30 September 2023. Likewise, Decree 492 enabled the energy secretariat to incorporate into the Program, on an exceptional and transitory basis, all the basins and exportable products of the hydrocarbon sector (crude oil, petroleum, gas and by-products) included in the tariff positions of the Common Nomenclature of Mercosur ("Goods").
The Resolution extended the Program to the Goods as indicated in Decree 492. Thus, exporters of oil, gas and by-products will get a preferential exchange rate in the settlement of their exports (75% of the exports must enter the country and be traded through the local exchange market, while the remaining 25% can be traded through securities, particularly through the "contado con liquidación" mechanism) as long as they comply with the following guidelines:
- To adhere to the Program in accordance with the mechanism established in Decree 576
- To carry out the export settlement between 2 and 20 October 2023 inclusive, if the effective export date of such exports is not later than 30 November 2023
- To register by 5 pm on 13 October 2023 the Affidavits of Sale Abroad (ASA), having to cancel the export duties (withholdings) up to 48 hours later
(It should be noted that the advance payment of export duties will not be applicable to companies subject to the price agreement benefit under Decree No. 433/2023).
In addition, the Resolution instructed the Sub-Secretariat of Hydrocarbons to adapt the existing hydrocarbon export regimes (Resolution No. 241/2017 of the former Secretariat of Hydrocarbon Resources of the former Ministry of Energy and Mining, and Resolution No. 774/2022 and No. 175/2023 of the Secretariat of Energy) to the Program, so that exports that comply with the guidelines indicated above may also benefit from the preferential exchange rate.
If the applications for the exports under the Resolution are rejected based on their potential impact on local market supply, they could be reapplied under the export regime of Resolution No. 241/2017.
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