Guideline No. 7/94: Exchange Rate Policy – Floating Rate Regime – Merchandise Operations

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GUIDELINE NO. 7/94 SUBJECT: EXCHANGE RATE POLICY

• Floating Rate Regime .Merchandise Operations Through Guideline No. 4/94, dated April, the methodology for two-level exchange operations under the floating rate regime established by Decree No. /94, dated April, by the Council of Ministers, was established; Whereas the aforementioned Guideline also revoked Guideline No. 03/93, of 27 May, which defined the procedures to be observed by authorized financial institutions in merchandise operations; In exercise of the competence provided for in Article 42 of the Organic Law of the Banco Nacional de Angola, I HEREBY DETERMINE: Article 1 (REQUIRED DOCUMENTATION) Exchange operations for the import of merchandise shall be conducted with importers registered with the Ministry of Commerce, who, for this purpose, must present the following to the operating financial institution: a) proof of importer registration document issued by the Ministry of Commerce; b) letter requesting a bank transfer; c) original of the corresponding proforma invoice, valid for 90 days, signed by the supplier, stating the name of its bank and its bank account number, and whose value includes freight and insurance costs.

Article 2 (INTERNAL AND EXTERNAL COVERAGE GUARANTEE)

1. Once the national currency coverage of the operation's value is effected based on the exchange rate agreed upon between the operating financial institution, it shall provide the importer with a document proving the acquisition of foreign exchange, so that the importer may prove the exchange coverage guarantee to the Ministry of Commerce and request licensing, as established in paragraph 2 of Article 5 of the Decree referred to in the preamble of this Guideline.
2. To comply with the provisions of point 1 of Article 5 of the same Decree, financial institutions shall only issue payment orders, letters of credit, or bank checks after the importer presents the necessary documentation, including the Import Registration Form.
3. If the importer fails to present the necessary documentation for the purposes referred to in the preceding paragraph within 30 days from the date of the operation's commencement, the operating financial institution shall execute the reverse operation, repurchasing the foreign exchange from the importer at the exchange rate in effect on the day of the initial operation, and recording it in a manner that affects its exchange position. Article 3 (INFORMATION AND CONTROL)
4. Operating institutions, within 48 hours after executing the transfers, shall send to the Directorate of Capital and Current Transactions – Merchandise Department, a detailed list of the operations carried out, indicating:

a) the invoice number; b) the importer's name; c) the foreign exporter's name; d) the transferred amount; e) the type of merchandise. 2. Importers are relieved of the obligation to deliver to the operating institution proof of the merchandise's entry into the country within 72 hours after receipt of the goods. 3. Operating institutions shall notify the Directorate of Capital and Current Transactions – Merchandise Department when importers fulfill the requirement to provide proof of merchandise entry into the country. Article 4 (FINAL PROVISION) This Guideline enters into force immediately. Luanda, on April 1994 THE GOVERNOR GENEROSO HERMENEGILDO GASPAR DE ALMEIDA

GENEROSO HERMENEGILDO GASPAR DE ALMEIDA ~