Instruction No. 04/95 on Foreign Exchange Policy for Goods Operations

INSTRUCTION NO. 04/95

Subject: Foreign Exchange Policy
Goods Operations

Considering the need to clarify certain situations contained in Instructions No. 7/94 and 9/94, of April 22, with a view to monitoring the foreign exchange operations resulting from the importation of goods; Demonstrating that practice makes it necessary to define the appropriate documents for this purpose; Taking into account the advantage for all parties involved in consolidating the regulatory norms for these operations into a single instrument; In the exercise of the competence provided for in Article 42 of the Organic Law of the Bank of Angola; I determine:

ARTICLE 1

In carrying out foreign exchange operations concerning the importation of goods, credit institutions must request that interested parties present the following documents:
a) - A letter requesting the transfer of funds abroad, containing the registration number as an importer at the Ministry of Commerce and the taxpayer number; b) - The original of the corresponding proforma invoice, valid for 90 days, signed by the supplier, with the following indications:

• The name of the supplying Bank
• The number of its bank account
• The CIF value of the goods

ARTICLE 2

1. • After effecting the coverage in national currency of the value of the operation based on the exchange rate agreed upon by the parties, credit institutions shall deliver to the importer proof of the acquisition of foreign exchange to be presented to the Ministry of Commerce for the issuance of the Import Registration Bulletin, in accordance with paragraph 2 of Article 5 of Decree No. 16/94, of April 22.
2. • After obtaining the registration bulletin, it is incumbent upon the importer to request, prior to the realization of the foreign exchange operation, from the BNA - Capital and Current Transactions Directorate - Goods Department, an Inspection Order for goods by a competent entity, whenever its value exceeds USD 15,000.00.
     Any requests for exemption from inspection shall be sent to the same Directorate - Department and submitted to the Board of the BNA for decision.
3. • To comply with the provisions of paragraph 1 of Article 5 of the same decree, credit institutions may only proceed with the transfer of foreign exchange abroad if, in addition to the necessary documentation and the "E" copy of the Import Registration Bulletin, they are also presented with one of the following elements:
     a) Customs document proving the entry of the goods into the Country; b) Document proving the shipment of the goods (bill of lading, air waybill, etc.), if the payment modality contracted with the exporter establishes this condition.
4. • If, 30 days after the start of the operation, the documentation referred to in the previous paragraph is not presented by the importer, the financial institutions involved in the operations must carry out the reverse operation, proceeding to purchase the foreign exchange at the exchange rate valid on the day of the initial operation and registering them in such a way as to effect their foreign exchange position.

ARTICLE 3

1. • Within 2 business days after the realization of the transfers, the "E" copies of the corresponding Import Registration Bulletins, duly annotated on the back, with stamp and signature, by the foreign exchange operation carried out, or, in the case of liquidation of part of the goods, the corresponding partial use forms (Annex I), must be sent to the BNA - Capital and Current Transactions Directorate - Goods Department.
     The aforementioned documents must accompany the map whose model constitutes Annex II of this Instruction, relating to the foreign exchange operations.
2. • After 30 days from the date predicted for the entry of the goods into the national territory, credit institutions must request from the importer, if he has not done so within three business days following the customs clearance of the goods, the respective proof document.
     This proof may be made via Form 23, the "B" copy of the IRB or another equivalent document, provided it emanates from the customs authority. A copy of the invoice certified by the customs services, indicating the dispatched value, may also be accepted.

This document, upon its receipt, will be forwarded to the BNA - Capital and Current Transactions Directorate - Goods Department, and its lack must be immediately communicated to them.
3. - Importations of goods whose value does not exceed the equivalent of USD 3,000.00 are exempt from prior licensing. The communication of the corresponding foreign exchange operations must be made by filling out the map - model Annex III, to be sent to the BNA - Capital and Current Transactions Directorate - Goods Department, on the last day of each month.

ARTICLE 4

1. • In compliance with the provisions of Article 6 of the aforementioned Decree No. 16/94, of April 22, in the importation of goods without recourse to foreign exchange reserves, the following must be observed:
     a) - The importer will present to a credit institution, together with the proforma invoice, an "Declaration of Import without recourse to foreign exchange reserves", according to the attached model (Annex IV), filled out in four copies, duly signed; b) - The Bank will stamp the receipt on the four copies, retaining the original copy for its file and sending the last copy to the Bank of Angola (Capital and Current Transactions Directorate - Goods Department). The 2nd and 3rd copies will be returned to the importer so that he may request the Ministry of Commerce to issue the Import Registration Bulletin. Simultaneously, the invoice must be stamped with the following indication: "Payment Abroad without recourse to Foreign Exchange Reserves (Article 6 of Decree No. 16/94, of April 22)",
2. • It is prohibited for the importer to resort to the purchase of foreign exchange at the "fixing", when it concerns operations for which the Declaration referred to in the previous number was issued.
3. • For payment abroad of importation without recourse to foreign exchange reserves, the interested party must use the services of the banking network, being responsible for first selling the foreign currency in the amount corresponding to the value of the operation to the Bank to which he delivered the Declaration referred to in No. 1.
4. • The intervening Bank must carry out two simultaneous foreign exchange operations, one of purchase of the foreign currency and another of sale of the same currency to the client for external coverage of the importation, applying, in both cases, the deadlines and exchange rates agreed upon by the parties, with the sale and purchase rates not exceeding a margin of 1% relative to the average value of these two rates.
5. • The provisions of paragraph 3 of Art. 2 and paragraphs 1 and 2 of Art. 3 of this Instruction apply to importation operations without recourse to foreign exchange reserves.
     6 - The provisions of paragraph 1 of this article are dispensed with for importation operations of goods whose value does not exceed the equivalent of USD 3,000.00 as well as all those in which there is no settlement with the foreigner. The communication of the inherent foreign exchange operations must be carried out through the map indicated in No. 3 of the previous Article 3.

ARTICLE 5

The realization of foreign exchange operations concerning the settlement of goods not subject to licensing, or which have specific characteristics, always requires special authorization from the Bank of Angola, safeguarding the exceptions consigned in the law, especially those relating to imports of value lower than the minimum amount established. Requests for authorization for the operations listed below must be submitted to the Bank of Angola, Capital and Current Transactions Directorate - Goods Department, by credit institutions, by letter accompanying the justifying elements of the request. In the case where the granted authorization is not used, the respective credit institution must communicate this fact to the Bank of Angola.

SETTLEMENT REGARDING ADJUSTMENTS OF VALUE OF GOODS ALREADY CLEARED 1 - Requests for authorization concerning transfers abroad resulting from:
.weight
.quantity
.price and also resulting from:
.laboratory analyses
.billing errors must be accompanied by:
a) - AUTONOMOUS TRANSFERS to the foreigner
. letter from the orderer stating the value to be transferred, the name of the beneficiary and the nature and reason for the payment; . invoice or document proving the amount to be settled; . correspondence exchanged between the parties regarding the complaint presented; . photocopy of the invoice of the goods; . "E" copy of the import or export bulletin annotated by the foreign exchange operation carried out in settlement of the goods; . other elements considered relevant for the process. NOTE: When in the importation the value of the adjustment is transferred simultaneously with the main operation, the respective license will obviously not contain the annotation of the foreign exchange operation. b) - SETTLEMENT BY DEDUCTION

If it concerns the export of goods not yet settled, it is accepted that the regularization of amounts due by said value adjustments be carried out by deduction from the proceeds of collections from the foreigner, in which cases, the process must be informed with:
. letter from the orderer indicating the value to be transferred, the name of the foreign beneficiary and the nature and reason for the payment; . invoice or document proving the amount to be settled; . photocopy of the correspondence exchanged regarding the operation with the importer; . photocopy of the invoice of the exported goods; . photocopy of the "E" copy of the export bulletin; . other documents considered useful for the appreciation of the operation. 2 - In any of the situations described in the previous number, the "E" copies of the respective bulletins must be annotated with the following elements:
. main foreign exchange operation
. number of the authorization from the Bank of Angola . value of the adjustment transferred or deducted, as the case may be 3 - Transfers from abroad, in the cases in question, do not require authorization but must, however, be communicated to the Bank of Angola, in the usual manner.

SETTLEMENT OF GOODS ENTERED IN BOND
1 - Requests for authorization concerning transfers abroad for payment of goods entered in bond must contain the following documents:
a) - photocopy of the letter from the orderer of the transfer; b) - invoice regarding the goods to be settled; c) - customs document proving the entry of the goods in bond.
2 - Whenever the settlement of the goods is carried out before the document referred to in letter c) is issued, the processes must also contain one of the following elements:
a) - photocopy of the request for opening of a negotiable documentary credit against the presentation of a document of shipment of the goods or letter of remittance including such document, if the settlement is processed by one of these ways; b) - document proving the shipment of the goods; c) - document proving that the goods are already in the Country, if that is the case, for which purpose a declaration from the customs broker, containing the essential elements of the clearance, will be accepted.

NOTE: If the goods to be settled, after being assembled or transformed, are intended for export, the letter from the orderer must indicate the numbers of the export bulletins, if already issued.
3 - Whenever the settlement occurs in a period exceeding one year from the date of customs clearance, the regulatory provisions for capital operations must be observed.

ADVANCED, TOTAL OR PARTIAL, SETTLEMENT OF IMPORT OPERATIONS OF GOODS SUBJECT TO THE ISSUANCE OF IRB 1 - Requests for authorization must contain the following elements:
a) - copy or photocopy of the letter that the importer addressed to the credit institution, requesting the realization of the advance payment; b) - "E" copy of the import bulletin and, if it has been rectified, the "E" copy of the corresponding rectifying bulletin; c) - commercial invoice or sales contract regarding the goods to be imported, as well as any other documentation from the exporting firm stating the delivery and payment conditions of the goods, specifying the predicted dates for shipment and realization of transfers abroad.

COMPENSATION FOR DEFICIENT QUALITY OF EXPORTED GOODS 1 - Requests for authorization concerning the settlement of compensation claimed by foreign importers, for lack of characteristics of exported goods, namely:
.deficient quality
.poor finish
.color and/or dimension differences
. other reasons of analogous nature must obey the following:
1.1. - AUTONOMOUS TRANSFERS, due to the exported goods already being fully settled.
Documents necessary for the instruction of the process:
a) - letter from the orderer, explanatory of the payment to be made, indicating:
. the value to be transferred
. the name of the foreign beneficiary
. the nature and reason for the payment

b) - invoice or photocopy of document proving the amount to be settled; c) - photocopy of the correspondence exchanged with the importer of the goods regarding the complaint presented, from which the destination given or to be given to the goods is stated; d) - photocopy of the invoice of the exported goods; e) - photocopy of the export bulletin or, in its absence, indication of its number and date of issuance; f) - photocopy of the banking document proving that the value of the exported goods was transferred to the Country; g) - any other elements that the economic agent considers attaching, for better information of the request.
1.2. - COMPENSATION BY DEDUCTION from the proceeds of export collection
Documents that must accompany the request:
a) - photocopy of the letter from the orderer transmitting instructions to his bank to proceed with the deduction; b) - photocopy of the "E" copy of the export bulletin; c) - the elements contained in letters b), c), d), e) and g) of the previous point. 2 - When the goods, object of the complaint, have returned or will return to the possession of the exporter, the information elements must state that the goods in question have already returned or will return to the Country, or that, on the contrary, they have already been or will be placed with another foreign client. 3 - In the case of compensation by deduction referred to in No. 1.2, the amount to be annotated by credit institutions in the "E" copy of the export bulletins will be the corresponding to the net proceeds of the export collection. This annotation will also contain the value of the compensation, the mention that it was settled by deduction, and also the number of the authorization granted by the Bank of Angola.

PROVISION OF BANK GUARANTEE ON COMMERCIAL EFFECTS 1 .-Requests for authorization must contain the following elements:
a) - copy or photocopy of the letter that the importer or re-exporter addressed to the credit institution; b) - commercial invoice; c) - "E" copy of the import or re-export bulletin and also, if the bulletin has been rectified, the corresponding "E" copy; d) - indication of the number of the authorization granted by the Bank of Angola for the settlement of the goods, when necessary, or simultaneous formulation of the request for authorization for that settlement.

BANK GUARANTEES AND COUNTER-GUARANTEES
1 - If it concerns a BANK GUARANTEE to be provided IN THE NAME OF A RESIDENT in national territory in favor of A NON-RESIDENT, the requests must be accompanied by the following elements:
a) - copy or photocopy of the letter from the economic agent, indicating:
. value of the guarantee
. name and domicile of the beneficiary entity
. reasons justifying the provision of the guarantee b) - indication of the name and domicile of the foreign bank, if this intervenes in the provision of the guarantee; c) - draft of the guarantee; d) - photocopy of the import or export bulletin, whenever the operation is subject to licensing; e) - indication of the number of the authorization granted by the Bank of Angola for the settlement of the respective goods, whenever necessary, or simultaneous formulation of the request for authorization for that settlement; f) - photocopy of the specifications, the contract proposal or equivalent document, if it concerns the provision of a guarantee for the purpose of admission to a tender, opened abroad, for the supply of goods. In the case of voluminous documentation, the presentation of only the part that includes the object of the tender, payment conditions and provision of guarantees is admitted. 2 - If it concerns a BANK GUARANTEE to be provided in favor of A RESIDENT IN THE NAME OF A NON-RESIDENT COUNTER-GUARANTEED from abroad, the requests must be instructed with the following elements:
a) - value of the guarantee and the counter-guarantee; b) - name and domicile of the non-resident entity, in whose name the guarantee will be provided; . c) - name and domicile of the resident beneficiary entity; d) - name and domicile of the non-resident entity offering the counter-guarantee, normally a credit institution; e) - indication of the purposes to which the guarantee is destined; f) - copy of the export or import bulletin, whenever the operation is subject to licensing; g) - indication of the number of the authorization granted by the Bank of Angola for the settlement of the respective goods, when necessary, or simultaneous formulation of the request for authorization for that settlement; h) - photocopy of the counter-guarantee; i) - photocopy of the draft of the guarantee provided.

3. -In the cases of BANK GUARANTEE to be provided in favor of A RESIDENT IN THE NAME OF ANOTHER RESIDENT, AT THE REQUEST AND UNDER THE RESPONSIBILITY OF
   a) - copy or photocopy of the letter from the economic agent, indicating:
   . value of the guarantee
   . name and domicile of the beneficiary entity
   . reasons justifying the provision of the guarantee b) - indication of the name and domicile of the foreign bank, if this intervenes in the provision of the guarantee; c) - draft of the guarantee; d) - photocopy of the import or export bulletin, whenever the operation is subject to licensing; e) - indication of the number of the authorization granted by the Bank of Angola for the settlement of the respective goods, whenever necessary, or simultaneous formulation of the request for authorization for that settlement; f) - photocopy of the specifications, the contract proposal or equivalent document, if it concerns the provision of a guarantee for the purpose of admission to a tender, opened abroad, for the supply of goods. In the case of voluminous documentation, the presentation of only the part that includes the object of the tender, payment conditions and provision of guarantees is admitted. 2 - If it concerns a BANK GUARANTEE to be provided in favor of A RESIDENT IN THE NAME OF A NON-RESIDENT COUNTER-GUARANTEED from abroad, the requests must be instructed with the following elements:
   a) - value of the guarantee and the counter-guarantee;' . b) - name and domicile of the non-resident entity, in whose name the guarantee will be provided; c) - name and domicile of the resident beneficiary entity; d) - name and domicile of the non-resident entity offering the counter-guarantee, normally a credit institution; . e) - indication of the purposes to which the guarantee is destined; f) - copy of the export or import bulletin, whenever the operation is subject to licensing; g) - indication of the number of the authorization granted by the Bank of Angola for the settlement of the respective goods, when necessary, or simultaneous formulation of the request for authorization for that settlement; h) - photocopy of the counter-guarantee; i) - photocopy of the draft of the guarantee provided.

4. -In the cases of BANK GUARANTEE to be provided in favor of A RESIDENT IN THE NAME OF ANOTHER RESIDENT, AT THE REQUEST AND UNDER THE RESPONSIBILITY OF A NON-RESIDENT ENTITY, COUNTER-GUARANTEED FROM ABROAD, requests for authorization must be accompanied by the elements referred to in the previous number, with the exception of that relating to letter b) and also with the indication of:
   . name and domicile of the non-responsible for the provision of the guarantee; . name and domicile of the resident in whose name the guarantee will be provided.

5. • Requests for the provision of guarantees intended for participation in tenders for the supply of goods (bid bond) are exempt from the presentation of the bulletins mentioned in letters d) of No. 1 and f) of No. 2. It is also dispensable the presentation of export bulletins in the case of provision of guarantees with the aim of ensuring the reimbursement of amounts transferred from abroad in settlement of goods to be exported, for which the bulletins have not yet been issued.
6. • Whenever a guarantee to be provided results from a contract subject to agreement by the Bank of Angola, in accordance with the law, in the requests for authorization, this data must be indicated, as well as the contractual clause that provides for the provision of the guarantee.
7. • The currency of issuance of the guarantees must be one of those admitted by monetary directives.
8. • The execution of guarantees or counter-guarantees, in which one of the parties is a non-resident, is subject to the provisions applicable to capital operations.
9. • The extension of the validity period of the guarantees, as well as the alteration of value, also require prior authorization from the Bank of Angola.
10. • These instructions encompass guarantees and, likewise, the corresponding counter-guarantees regarding goods operations, namely the following:
      . admission to tender for the supply of goods (bid bond) . good performance of the period stipulated for the payment of the goods . securing of advance payments or receipts of the value of goods . securing of the value of goods to be cleared under temporary import or export regime . good execution of supply contract of goods (performance bond)

SETTLEMENT OF GOODS IMPORTED UNDER TEMPORARY REGIME

1. -Requests for authorization must be instructed with the following elements:
   a) - letter from the importer; b) - commercial invoice;

c) - document proving the clearance or declaration from the customs broker, from which the type of customs regime, authenticated with stamp and signature, indicating the fiscal entity, the order number of the clearance, the invoice number, the designation, the weight and the value of the goods, is stated.
2. - In the case where the clearance has not yet been carried out at the time of the request for authorization, documentation proving that one of the following conditions is met must be presented:
a) - the goods are at customs awaiting clearance, a situation that can be proven by a declaration from the customs broker, in the manner indicated in letter c) of the previous number; b) - document proving the shipment of the goods; c) - copy of the letter for opening of a negotiable credit against the presentation of a document of shipment of the goods or photocopy of the letter of remittance, including such document, if the settlement is processed in one of these modalities.
3. - In the case where the settlement is carried out beyond one year from the date of customs clearance, the regulatory provisions for capital operations must be observed.

SETTLEMENT OF GOODS DESTINED FOR CUSTOMS WAREHOUSES

1. -For the appreciation of requests for authorization regarding the settlement of goods entered in customs warehouses or bonded, it is necessary