Notice No. 07/2014 of October 8, 2014: Sale of Foreign Currency

Published in the Official Gazette, First Series, No. 186, of October 8

NOTICE No. 07/2014

SUBJECT: SALE OF FOREIGN CURRENCY

Given the need to define the applicable regulation for foreign exchange operations provided for in Law No. 02/12 of January 13, Law on the Foreign Exchange Regime Applicable to the Petroleum Sector;

In the exercise of the competence attributed to me under the combined provisions of Article 3 of Law 05/97 of June 27, Foreign Exchange Law, Article 22 of Law 02/12 of January 13, Law on the Foreign Exchange Regime Applicable to the Petroleum Sector, and Articles 17 and 40 of Law No. 16/10 of July 15, Law of the Bank of Angola;

I DETERMINE:

Article 1. (Object) This Notice establishes the procedures to be adopted by the National Concessionaire, national and foreign investor companies, and oil operators, including companies that are part of the Angola LNG Project, in their foreign currency sale operations.

Article 2. (Sale of Foreign Currency for Payment of Tax Liabilities and Other Tax Obligations to the State)

1. Under the terms of Article 8 of Law No. 2/12 of January 13 - on the Foreign Exchange Regime Applicable to the Petroleum Sector, the National Concessionaire and national and foreign investor companies must sell to the Bank of Angola the foreign currency corresponding to the payment of their tax liabilities and other tax obligations to the State.
2. Excluded from the provision in the preceding paragraph is the foreign currency corresponding to receipts of the National Concessionaire, as well as contractual bonuses and excess over the limit price, provided for in Articles 54 and 55 of Law No. 13/04 of December 24, on the taxation of petroleum activities.
3. Upon instruction from the National Concessionaire and national and foreign investor companies, the Bank of Angola will credit the national currency equivalent related to the operations referred to in paragraph 1 of this Article to the Single Treasury Account.

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Article 3. (Sale of Foreign Currency for Making Payments to Foreign Exchange Residents)

1. Oil operators, with a view to acquiring national currency for the payment of goods and services supplied by foreign exchange resident entities, must sell to the Bank of Angola the corresponding foreign currency.
2. The rule defined in the preceding paragraph applies to oil companies as investors, whenever they are an operator in any petroleum exploration in the country.
3. Investor entities not covered by the provision in the preceding paragraph may freely sell foreign currency to banking financial institutions to make payments to foreign exchange residents.
4. The Bank of Angola will credit the national currency equivalent related to the operations referred to in paragraphs 1 and 2 of this Article to a bank account indicated and maintained by the ordering party at a banking financial institution domiciled in the country.

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Article 4. (Settlement Period for Operations)

1. The foreign currency purchase operations referred to in Articles 2 and 3 of this Notice, whose confirmation of the availability of foreign currency funds in the Bank of Angola account occurs by 1:00 PM, are settled in national currency equivalent on the same day.
2. The foreign currency purchase operations referred to in Articles 2 and 3 of this Notice, whose confirmation of the availability of foreign currency funds in the Bank of Angola account occurs after 1:00 PM, are settled in national currency equivalent by 9:00 AM on the next business day.

Article 5. (Exchange Rate and Commissions)

1. The exchange rate to be applied by the Bank of Angola in the foreign currency purchase operations referred to in Articles 2 and 3 is the primary market reference purchase exchange rate, published daily on its website, in force on the day of confirmation of receipt of the foreign currency funds.
2. For the execution of foreign exchange operations and bank transfers, within the scope of this Notice, no commissions are due to the Bank of Angola.

Article 6. (Duty to Inform)

1. Oil operators must inform the Bank of Angola, by the 28th of each month, or if this occurs on a weekend day, on the next business day, the forecast of fund needs for the following month, to be provided by the entities covering the current expenses inherent to petroleum operations.
2. From the forecast of fund needs referred to in the preceding paragraph, those entities must inform the portion corresponding to payments in favor of foreign exchange resident entities.

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Article 7. (Transitional Provisions)

1. With a view to safeguarding the effects of tripartite contracts for the purchase and sale of foreign currency between oil operating companies, commercial banks, and service provider companies to oil operators, and until the publication of specific regulation by the Bank of Angola, oil operators may sell foreign currency to commercial banks to cover said obligations.
2. In the foreign currency sale operations by the oil operating companies mentioned in the preceding paragraph, the exchange rate mentioned in paragraph 1 of Article 4 of this Notice is applicable.
3. In the foreign currency sale operations by commercial banks to service providers who are signatories to the tripartite contracts, commercial banks must apply an exchange rate not higher than the average of the purchase and sale exchange rate published by the BNA, which may include a spread of up to 0.15%.
4. The contracts referred to in paragraph 1 must be registered at the Bank of Angola by the oil operators, within a period of 15 days from the date of entry into force of this Notice or from the date of celebration of said contracts.
5. Oil operators must inform the Bank of Angola of the foreign currency sale operations provided for in paragraph 1 of this Article, under the terms to be defined.

Article 8. (Violations) Violations of the provisions of this Notice are punishable under the terms of Law No. 5/97 of June 27, Foreign Exchange Law.

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Article 9. (Doubts and Omissions) Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the Bank of Angola.

Article 10. (Revocation) All regulation that contradicts the provisions established in this Notice is revoked.

Article 11. (Entry into Force) This Notice enters into force thirty (30) days after the date of its publication.

PUBLISH.

Luanda, October 3, 2014.

THE GOVERNOR

JOSÉ DE LIMA MASSANO