Decree No. 56/2023 of October 3 Approves the Regulation of Law No. 28/2022 of December 29 (Exchange Control Law) and Revokes Decree No. 49/2017 of September 11

SUMÁRIO A V I S O The material to be published in the «Boletim da República» must be submitted as a duly authenticated copy, one per subject matter, containing besides the necessary indications for this purpose the following endorsement, signed and authenticated: For publication in the «Boletim da República». IMPRENSA NACIONAL DE MOÇAMBIQUE, E. P. Council of Ministers: Decree No. 56/2023: Approves the Regulation of Law No. 28/2022, of December 29, Exchange Control Law and revokes Decree No. 49/2017, of September 11. Decree No. 57/2023: Creates the Topuito Industrial Free Zone, in the locality of Topuito, Larde District, Nampula Province. Resolution No. 38/2023: Ratifies the Credit Agreement for financing Credit Number 7278-MZ, concluded between the Government of the Republic of Mozambique and the International Development Association (IDA), on May 12, 2023, in Maputo, in the amount of SDR 222,500,000.00, equivalent to USD 300,000,000.00 (three hundred million US Dollars), which is intended to finance the Project for Improving Access to Financing and Economic Opportunities-More Opportunities. Interministerial Commission for Public Administration Reform: Resolution No. 16/2023: Reviews the content of Articles 4, 5, 6 and 11 of Resolution No. 1/2018, of February 27. Tuesday, October 3, 2023 | FIRST SERIES — Number 190 CONSELHO DE MINISTROS (COUNCIL OF MINISTERS) Decree No. 56/2023 of October 3 In view of the need to establish procedures necessary for the effective implementation of the Exchange Control Law, the Council of Ministers, pursuant to Article 25 and paragraph 1 of Article 72, both of Law No. 28/2022 of December 29, decrees:

ARTIGO 1 (Subject Matter) The present Decree establishes: a) the rules and procedures for the exercise of partial foreign exchange trade, including applicable fees; b) the delimitation of the exercise of foreign exchange trade by payment service providers.

ARTIGO 2 (Foreign exchange trade by payment service providers) Only payment service providers that include in their corporate object the dispatch or transfer and receipt of funds to and from abroad may exercise foreign exchange trade.

ARTIGO 3 (Payment of fees for the exercise of partial foreign exchange trade)

1. The exercise of partial foreign exchange trade activity is subject to the payment of authorization and renewal fees set out in the Annex to this Decree, which forms an integral part thereof.
2. The authorization fee is paid upon approval of the application for the exercise of partial foreign exchange trade activity.

ARTIGO 4 (Authority to update fees) It is the responsibility of the Minister overseeing the finance portfolio, by ministerial instrument, to update the authorization and renewal fees for the exercise of partial foreign exchange trade.

ARTIGO 5 (Frequency and failure to pay the renewal fee)

1. The payment of the renewal fee for the exercise of partial foreign exchange trade activity must be made annually by March 31 of the year to which it relates.
2. Failure to pay the renewal fee within the established period results in the suspension of the license.

ARTIGO 6 (Exemption from fee payment)

1. Public services directly provided by the State or public entities that, by their nature, receive payments in foreign currency upon the entry of non-residents into national territory are exempt from fee payments.
2. Without prejudice to the foregoing, the Bank of Mozambique may request any information in accordance with paragraph 2 of Article 17 of Law No. 28/2022 of December 29.
3. The exemption referred to in paragraph 1 does not cover services provided to the public indirectly by the State or public entities, namely through concessions.

ARTIGO 7 (Revenue from fee payments) The amounts resulting from the payment of fees constitute revenue for the Bank of Mozambique.

ARTIGO 8 (Cancellation or cessation of the exercise of partial foreign exchange trade)

1. The Bank of Mozambique cancels the authorization for the exercise of partial foreign exchange trade under the following circumstances: a) upon request by the entity carrying out partial foreign exchange trade activity; b) non-compliance with the verification, information, preservation, and foreign exchange registration duties set forth in Articles 16, 17, 18 and 29 of Law No. 28/2022 of December 29, and other applicable legislation; c) submission of false statements to the Bank of Mozambique, during the authorization process or in the exercise of partial foreign exchange trade activity; d) in case of cessation or suspension of the main activity for a period exceeding 6 months; e) non-compliance with measures determined by the Bank of Mozambique in foreign exchange matters; f) others that constitute a serious violation of the rules governing partial foreign exchange trade activity.
2. In the case provided for in paragraph (a) of paragraph 1 of this Article, the entity must submit a notification containing a brief statement of reasons for the cessation of partial foreign exchange trade activity.
3. The Bank of Mozambique may authorize, in exceptional circumstances and upon a duly justified request by the interested parties, the suspension of partial foreign exchange trade activity for a period exceeding 6 months but less than 12 months, which may be extended once.
4. Prior to the cancellation decision, the Bank of Mozambique notifies the concerned entity to present, within 10 days, if deemed appropriate, clarifications it considers relevant.
5. The Bank of Mozambique publishes license cancellations through legally permitted communication channels, including its website.

ARTIGO 9 (Instructions) The Bank of Mozambique, in exercising its function as the foreign exchange authority, issues normative instructions for the implementation of this Decree.

ARTIGO 10 (Offenses) Violation of the mandatory provisions of this Decree is subject to the sanctioning regime of Law No. 28/2022 of December 29.

ARTIGO 11 (Allocation of fines) The proceeds from fines resulting from contravention proceedings are distributed as follows: a) 70% to the State; b) 30% to the Bank of Mozambique.

ARTIGO 12 (Repeal) Decree No. 49/2017 of September 11 is hereby repealed.

ARTIGO 13 (Entry into Force) The present Decree enters into force on the date of its publication.

Approved by the Council of Ministers, August 1, 2023. Published. The Prime Minister, Adriano Afonso Maleiane.

Anexo (Annex)

Authorization Fee	Percentage	Reference
Travel Agencies	9%	1 Minimum wage of the banking sector
Hotels	16%	1 Minimum wage of the banking sector
Hotel-like Entities	11%	1 Minimum wage of the banking sector
Other entities authorized by the Bank of Mozambique	9%	1 Minimum wage of the banking sector
Institutions established in specific legislation	9%	1 Minimum wage of the banking sector

Renewal Fee – Until March 31 each year	Percentage	Reference
Travel Agencies	4.5%	1 Minimum wage of the banking sector
Hotels	8%	1 Minimum wage of the banking sector
Hotel-like Entities	5.5%	1 Minimum wage of the banking sector
Other entities authorized by the Bank of Mozambique	4.5%	1 Minimum wage of the banking sector
Institutions established in specific legislation	4.5%	1 Minimum wage of the banking sector

Edição electrónica da Pandora Box, Lda.