The Emergency and Urgency Decree 70/23 (the ‘Decree’), published on December 21, 2023, in the Official Gazette, introduces a broad reform to the Customs Code embedded in Law 22,415 (the ‘CC’) with the purpose of streamlining foreign trade operations. In this regard, Sections 42, 43, 44, 45, 46, 55, 56, 93, 95, 96, 97, 98, 99, and 107 of the CC, which referred to registrations and enrollments in the Customs Brokers Registry and the Importers and Exporters Registry, have been repealed. Additionally, a new Section, 120 bis, has been included, which establishes that the national executive branch is obligated to adopt procedures and mechanisms that simplify compliance with obligations for the various stakeholders involved in foreign trade. These procedures shall be executed using electronic computer services.

In exceptional cases, the General Customs Directorate will have the power to authorize the submission of procedures or documentation in a different manner through special procedures.

AMONG THE MAIN MEASURES HIGHLIGHTED ARE:

(i) Henceforth, the intervention of a customs broker will not be necessary for the purpose of managing the clearance and destination of goods (section 37 CC);

(ii) The need to be registered in the Customs Brokers Registry to practice that profession is eliminated. Consequently, it also removes the requirements for enrollment in the aforementioned registry. Likewise, it lists the scenarios that disqualify certain individuals from acting as Customs Brokers (section 41 CC);

(iii) Regarding penalties directed at Customs Brokers, it eliminates the two-year time limit for suspension sanctions and adds the prohibition to act as a Customs Broker before the General Customs Directorate, establishing that suspension sanctions will be imposed by the Director General of Customs and not by the National Customs Administrator (section 47 CC);

(iv) The need to register in the Importers and Exporters Registry to request customs destinations is eliminated, allowing that all individuals and legal entities can request customs destinations and carry out foreign trade operations without the need to enroll in any registry, enabling any person to perform these activities (section 92 CC);

(v) Consequently, the requirements to register in the Importers and Exporters Registry are eliminated, and a series of scenarios are listed where certain natural persons cannot carry out export and import operations (section 94 CC);

(vi) Concerning penalties directed at importers and exporters, similar to penalties imposed on Customs Brokers, it eliminates the two-year time limit for suspension sanctions for conducting foreign trade operations and adds the sanction of prohibition to carry out said operations (section 100 CC);

(vii) Regarding control matters, customs service agents, and where applicable, security and police forces operating in customs control, shall seek to preserve the activity and continuity of import or export operations that are ongoing. It also establishes that any interruption will only proceed upon the existence of evidence leading to a reasonable state of presumption of the commission or initiation of a crime or infraction typified in the CC (section 119 CC); and

(viii) It is established that the Executive Branch cannot establish prohibitions or restrictions on exports or imports for economic reasons, and these can only be enacted by law (section 609 CC). This measure will liberalize international trade and thus favor free competition.

EFFECTIVENESS:

In relation to the modifications to the Customs Code, the DNU does not contain a provision declaring its effective date. Therefore, given its publication date, its provisions should be understood to take effect from the eighth day following publication, i.e., on December 29, 2023, in accordance with the general rules on the entry into force of regulations contained in Section 5 of the Civil and Commercial Code of the Nation.

In the event of rejection by resolution of both houses of the National Congress, these modifications will be repealed, “preserving acquired rights during their validity,” according to Section 24 of Law No. 26.122.