Requirements to import into Argentina: foreign trade between Argentina and Spain

Challenges and requirements for importing from Spain to Argentina: a detailed guide for foreign trade

Anyone who has tried to export from Spain to Argentina in recent years knows the extreme level of difficulty involved in importing goods from the latter country.

Challenges for Spanish exporters

Spanish exporters assume that once the interested party for their product, good or service has been obtained in Argentina and the commercial conditions have been agreed, including incoterm, price, term, payment method, etc., the deal is closed.

However, they are unaware that thanks to the tangle of new regulations and constant changes in current regulations, there are increasing criteria to qualify to request import authorizations and the virtual impossibility of making advance payments to the exporter.

It is almost impossible for Argentine importers to escape the import blockade established by the Argentine government, which results in the loss of business for both parties or at least remains on hold for many months. However, there are some models that allow these operations. operations to be carried out strictly observing the current legal framework, therefore below we will detail the requirements to be able to import into Argentina and in our post we will detail the current alternatives to be able to carry out the business.

Requirements to import into the Argentine Republic

Those interested in carrying out foreign trade operations in Argentina, whether individuals or legal entities, in addition to complying with current legislation, must be registered and authorized as exporters and importers.

To do so, they must comply with all the requirements required by the National Customs Administration and the Federal Public Revenue Administration – AFIP, equivalent to the Tax Administration Agency of the State of Spain.

However, it is necessary to clarify that not everyone interested in importing will be able to register, since this condition only grants taxable persons who have been previously registered for Value Added Tax or VAT.

Once registered as an importer, and when it can be assumed that you are in a position to start importing, that is when the ordeal of Argentine bureaucracy really begins to unfold.

Import Process and Bureaucracy

Firstly, the new importer must wait for AFIP to electronically grant him the so-called CEF or Financial Economic Capacity, a variable that determines the maximum value that the operator will be able to import.

In principle, the importer’s CEF is usually equal to USD 1. Yes, you read that right, it is USD 1 and is only updated monthly.

The CEF is determined through an algorithm that only AFIP knows and which takes into account, among other factors, the VAT declarations made by the importer, as well as the Income Tax and Gross Income Tax declarations, from of which the Tax Authority defines the financial value. economic capacity of the interested party.

But in addition, other conditions that must be met are taken into account, such as not registering tax or tax debts, not being late in submitting declarations to the treasury, closing previous operations, not being late in observing notifications, etc.

When the importer’s CEF is finally updated, authorizing a reasonable value to be able to make purchases abroad, its forwarder will be able to process the authorization request in the Import System of the Argentine Republic or SIRA, which currently (November 2023), records delays that vary from one to three months depending on the merchandise.

It is very important to keep in mind that it is not advisable for the importer to ship the merchandise without having the SIRA approved, even if they have credit and payment conditions granted by the exporter, because if it arrives in Argentina it will not do so. If you have the necessary approval for import, the merchandise cannot be nationalized and must wait in a tax warehouse for approval, with the consequent costs resulting from the delay (port or airport terminal expenses, deconsolidation of the merchandise and/or transportation to the tax warehouse, storage costs, handling costs, etc.).

But that’s not all, as once the corresponding SIRA has been granted, AFIP will determine the period within which the importer will be able to make payment to the exporter, which is generally longer than 6 (six) months, which normally closes the possibilities of the business taking into account given the exporter’s natural distrust in charging and/or their inability to finance the charging of the operation for so long.

Finally, it is necessary to remember that the SIRA, once approved, is valid for 90 days, during which the merchandise must enter the country. If the merchandise has not arrived in Argentina, which is common in the production, shipping and transport process when it is seaborne, it is possible to request an extension of the SIRA for a single time and for a new period of time. 90 days, which is final and non-extendable. If the first 90 days pass without the goods entering the country and without an extension being requested, SIRA would automatically expire, forcing the entire procedure to restart.

Final considerations

Obviously, importing goods to Argentina is a task that has been reduced to importers and customs brokers with a lot of knowledge and skill and eventually to operations between companies in the same group or in which the exporter decides to trust the importer’s future payment. .

If you would like more information, contact us and we will be happy to send you other suggestions, or send us an email to comercial@comexar.es informing us of the details relating to the merchandise, goods or services you are interested in and we will be able to advise on foreign trade operations between Spain and Argentina, including international logistics and insurance, regulations and operating protocols, in addition to offering export and import customs clearance services in Argentina and a detailed cost analysis so that you know exactly the total value of your operation before starting it.