‘Banco Central do Brasil’ (BCB) introduced changes in regulation for foreign exchange (FX) operations related to exports and for the advance payment of imports, considering the potential effects of the Covid-19 crisis on trade.

The BCB extended to 1,500 days the maximum settlement period of FX operations related to exports. Additionally, if the FX operation is settled after the shipment of the goods or after the rendering of the services, it must be observed a maximum period of 1,500 days between these events and the settlement. The previous maximum settlement period of FX operations related to exports was 750 days. During that period, the exporter also had to observe the intermediate term of 360 days to ship the goods or render the service.

In this sense, the new regulation establishes a single maximum period of 1,500 days to settle the FX operation and to freely ship the goods or render the services within that period — providing the exporter greater flexibility to renegotiate the date of payment by the importer.

Considering the potential effects of the Covid-19 crisis on trade, the new regulation, applies to export FX operations starting on March 20, 2020, as well as to earlier FX operations that were in regular situation on March 20, 2020 — when the national State of Public Calamity was decreed. The use of the new rule must be agreed between the parties and foreseen in the FX operation.

The term for advancements payment of imports was extended from 180 to 360 days, enabling the importer to renegotiate conditions agreed with the foreign exporter. This term extension also applies to anticipated payment of imports already made [BCB Circular Nr. 4,002/2020].