Argentina puts restrictions on online shopping due to foreign reserves

Argentina has recently legislated new regulations on online shopping and has begun to instill strict limitations and heavy taxes.

Argentina has begun to enforce restrictions on foreign Ecommerce purchases coming into the country. The 30% drop in Argentina’s foreign reserves is the catalyst responsible for the new resections and currently stands at under $30 billion. This is the lowest the reserves have been since 2006 and Argentina has already regulated laws regarding USD currency exchanges over the past 2 years .

Argentina’s online shopping laws also have changed recently due to the dwindling reserves. Argentinians are now requested to sign a declaration prior to accepting an international package. Further restrictions include a yearly $25 tax free limit, afterwards the individual is requested to pay a 50% tax for online purchases. Online orders are now routed to customs rather than the customer’s home address or post office and require the signed declaration in order to release the package.

Yesterday, January 22^nd 2014, a new restriction was added, limiting the $25 tax purchases to just 2 packages a year before being taxed.

Argentinian residents are somewhat distraught on the matter. The heavy taxes for those who have passed the 2 items or $25 limit create a strain on the already harsh economy. Time is a factor as well with releasing a package from customs taking 3-4 hours.

“The real problem is that the item is received in customs now instead of at your home. Each time you go to customs, you need to spend three or four hours. I lose half a day's work, which is unacceptable," said one man on the restrictions to BBC news.

The Argentinian government claims the new restrictions and declarations will help enforcing the new import taxes, as the customs department until now has been finding it difficult to keep track of online purchases using the old system.

Image courtesy of DeviantArt