Instruction No. 03/96: Exchange Policy for Merchandise Operations

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INSTRUCTION No. 03/96 . SUBJECT: EXCHANGE POLICY MERCHANDISE OPERATIONS

Whereas the Exchange Law regulates the matter of foreign exchange control, namely the obligation to deliver to the exchange authority for conversion all foreign exchange revenues of residents, the prohibition of offsetting debts and credits between residents and non-residents, the limitation of foreign exchange trading to duly authorized entities, In view of the provisions of Decree No. 12/89 of 8 March, which regulates the operations of Merchandise, Given the need to systematize and update the rules on the matter of merchandise importation, namely those set forth in Instruction No. 4/95 of 28 June, In the exercise of the competence established in Art. 42 of the Organic Law of the National Bank of Angola, I HEREBY DETERMINE:

Art. 1 WITHOUT REFERENCE TO FOREIGN EXCHANGE RESERVES 1- Considering as merchandise import operations without reference to foreign exchange reserves only those provided for in Art. 23 of Decree 12/89 of 8 March, namely: a) import or export of promotional articles and valueless samples, parts and other merchandise received or sent in replacement of identical merchandise found unsuitable or damaged, and tare weights that must be subsequently re-sent, whose value is included in that of the merchandise they contained; b) import of remnants or waste from ship cargo, sweepings from wagons or similar items that, by their nature, must be paid in national currency to agents of shipping companies or to those involved in the transit of merchandise through national territory;

c) import or export of articles intended for diplomatic, consular and religious representations, whether for their premises, for the official residences of their respective officials, or still for purposes of propaganda or representation of the Countries or institutions to which they relate; d) import or export of educational materials, religious worship articles and other goods, whether durable or non-durable, donated to non-profit institutions, provided that they are intended for the exercise of their respective activities;

e) import or export of goods, whether durable or non-durable, donated to individuals residing in the Country or abroad, which, by their nature or low value, are not to be considered intended for further commercial transactions or as a means to conceal the import or export of merchandise; f) import or export of merchandise originating from donations or emergency aid. 2- The issuance of licenses for the operations provided for in the preceding point, as well as the subsequent granting of exemption from already issued licenses, always depends on the favorable opinion of the Central Bank. 3- The import of merchandise without reference to foreign exchange reserves is prohibited when they are intended for further commercial transactions, as well as those that constitute a form of total or partial regularization, namely through the offsetting of other operations. 4- Considering Art. 6 of Decree 16/94 of 22 April, in the import of merchandise without reference to foreign exchange reserves, the following shall be observed:

a) The importer shall present to a Commercial Bank, together with the pro-forma invoice, a "Declaration of Import Without Reference to Foreign Exchange Reserve" to be completed based on the attached model, in four copies, with all copies to be signed by a duly identified person. b) The Commercial Bank shall send the respective file to the Central Bank for analysis, which after decision will return it to the sending Bank. If that decision is favorable, it shall stamp the receipt on all four copies, retaining the original for the files, returning two copies to the importer and sending the last one to the National Bank of Angola (Directorate of Capital and Current Transactions) for control purposes. Simultaneously, it shall stamp the pro-forma invoice, diagonally, with the following indication "Without Reference to Foreign Exchange Reserve". c) The importer shall present one of the two copies of the Declaration to the Ministry of Commerce to qualify for the issuance of the Import Registration Bulletin, and the licensing entity shall send directly to the Central Bank copies E and C of the licenses. Art. 2 IMPORTATION WITH OWN FUNDS 1 - Importations with own funds are considered those based on the allocation of foreign currency accounts, duly authorized by the Central Bank, where the economic agent holds funds in Commercial Banks located in the Country. 2 - In the import of merchandise under the conditions provided for in the preceding point, the following shall be followed: a) Based on Art. 6 of Decree 16/94 of 22 April, the importer must first, sell the foreign currency to the Commercial Bank, the amount equal to the operation it intends to carry out.

b) The operating Commercial Bank shall carry out two simultaneous exchange operations, one of purchase of the foreign currency and another of resale of the same currency to the client for external coverage of the importation, applying in both cases the deadlines and exchange rates that are officially determined. c) Once the sale of foreign exchange is carried out, the Commercial Bank shall comply with all the formalities in Art. 2 and 30 of Instruction 4/95 as well as those of Instruction 7/95 of 29 September. Art. 3 IMPORTATION UNDER THE WAREHOUSING, CUSTOMS OR GUARANTEED REGIME For the import of merchandise under this regime, the following rules shall be complied with: 1- The importer, when requesting the competent authorization from the Commercial Bank to carry out the said importation must present the documentation provided for in Instruction 4/95 of 28 July and attach the supporting document that allows him to import under that modality. 2- The Commercial Bank sends the documentation referred to in the preceding point to the Central Bank for analysis and opinion. 3- The Central Bank returns to the Commercial Bank the opinion referred to in the preceding point, and the latter, if the opinion is favorable, shall send a letter to MINCO. Art. 4 . Art. 4 of Instruction No. 4/95 of 28 June is hereby revoked. Art. 5 This Instruction enters into force immediately. Luanda, 28 June 1996 THE GOVERNOR SEBASTIÃO BASTOS LAVRADOR