In this sense, Fermani explained that “the raw materials used by the optical industry are mainly purchased from China, and the concern is that finished products from Brazil will end up being financed and we will continue to be restricted from producing due to the lack of raw materials.”
For this reason, The optical businessman requested that the country’s authorities limit the entry of finished products into Argentina to protect the local industry.
What is the mechanism to finance imports?
Within the framework of President Lula Da Silva’s visit to the country, the Ministers of Economy of Argentina and Brazil, Sergio Massa and Fernando Haddad, announced the implementation of a 366-day import financing line between the Banco de the Argentine Nation and the Bank of Brazil.
The general scheme that governs the country establishes that companies have access to the foreign exchange market to pay for imports within the period determined by the SIRA, counting from the date of customs registration.
Thus, the foreign supplier dispatches the good and the importer cancels it after the minimum term determined by the SIRA (generally 180 days). In this way, to import the local company must access some form of financing, usually of a commercial nature.
Nevertheless, In many cases, the foreign supplier is not in a position to extend the volume of credit under the conditions required by the Argentine importer.. For this reason, the standard enables companies to carry out an import financing operation -Fi de impo- in the measure that this is granted by local financial entities through lines funded abroad or by foreign financial entities, according to a report to which Ámbito agreed.
The IMPO FI modality consists of a local financial entity having a line of credit with a foreign entity that it uses to fund credits to Argentine importers. Disbursements are made by the foreign entity directly to the suppliers of the Argentine importer. When accessing the exchange market, the importer transfers the dollars to the local bank to pay the credit and the local entity cancels the section of the foreign line.
Source: Ambito
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