Notice No. 2/GBM/2023, of June 16 – Regime for Repatriation and Conversion of Reexportation Revenues from Petroleum Products

SUMMARY A V I S O The matter to be published in the «Boletim da República» must be submitted as a duly authenticated copy, one for each subject matter, containing the necessary indications for this purpose, along with the following endorsement, signed and authenticated: For publication in the «Boletim da República». IMPRENSA NACIONAL DE MOÇAMBIQUE, E. P. Ministry of Economy and Finance and Ministry of Mineral Resources and Energy: Ministerial Diploma No. 91/2023: Approves the Reference Price Regulation, for purposes of determining the value of mining products. Bank of Mozambique: Notice No. 2/GBM/2023: Establishes the regime for Repatriation and Conversion of Reexportation Revenues from Petroleum Products. Friday, June 16, 2023 | SERIES I — Number 116

MINISTRY OF ECONOMY AND FINANCE AND MINISTRY OF MINERAL RESOURCES AND ENERGY

Ministerial Diploma No. 91/2023 of June 16

Given the need to define procedures for setting the reference price, in order to establish the value of mining products for purposes of determining the taxable base under the Mining Production Tax, in accordance with Article 11(3) of the Specific Taxation and Fiscal Benefits Regime for Mining Activity approved by Law No. 28/2014 of September 23, amended and republished by Law No. 15/2017 of December 28, under Article 4(5) of Decree No. 28/2015 of December 28, which approves the Regulation of the Specific Taxation and Fiscal Benefits Regime for Mining Activity, the Ministers of Economy and Finance and Mineral Resources and Energy determine:

Article 1. The Reference Price Regulation, for purposes of determining the value of mining products, attached to this Ministerial Diploma and forming an integral part thereof, is approved. Article 2. A joint team for determining applied reference prices is established, comprising representatives of the following institutions: a) Ministry of Economy and Finance; b) Mozambique Tax Authority; c) National Mines Institute; d) General Inspectorate of Mineral Resources and Energy; e) Kimberley Process Management Unit.

Article 3. The Mozambique Tax Authority and the National Mines Institute must hold the necessary licenses to access baseline data for calculating reference prices in accordance with international market prices. Article 4. It is the responsibility of the Mozambique Tax Authority to issue a Monthly Reference Price Bulletin on the first business day of each month for the operationalization of this Ministerial Diploma. Article 5. This Ministerial Diploma enters into force on the date of publication.

Maputo, June 9, 2023. – The Minister of Economy and Finance, Ernesto Max Elias Tonela. – The Minister of Mineral Resources and Energy, Carlos Joaquim Zacarias.

Reference Price Regulation for purposes of Determining the Value of Mining Products

Article 1 (Object) This Regulation establishes the procedures for setting the reference price, for purposes of determining the value of mining products and the taxable base under the Mining Production Tax.

Article 2 (Scope of Application) This Regulation applies to extracted mining products, including commodities, and to all transactions, direct or indirect, carried out in the local or international market.

Article 3 (Definitions) Without prejudice to the concepts provided in the Mines Law and the Specific Taxation and Fiscal Benefits Regime for Mining Activity,

JUNE 16, 2023 1197 BANK OF MOZAMBIQUE Notice No. 2/GBM/2023 of June 16

Article 8 of Notice No. 20/GBM/2017, of December 27, as amended by Notice No. 6/GBM/2020, of June 10, establishes the general regime for repatriation and conversion of export revenues from goods and services. Given the need to establish a specific regime for the repatriation and conversion of revenues from reexportation of petroleum products, the Bank of Mozambique, exercising the competence conferred by Article 20(3) of Law No. 28/2022, of December 29 (Exchange Control Act), determines:

Article 1 Object This Notice establishes the regime for repatriation and conversion of revenues from reexportation of petroleum products.

Article 2 Scope This Notice applies to: a) Entities reexporting petroleum products; b) Intermediary banks for reexportation.

Article 3 Definitions For purposes of this Notice, the following are understood: a) Petroleum products – derivatives and residues from refining or processing of petroleum, such as: propane, butane and their mixtures, also known as liquefied petroleum gases (LPG), automotive gasoline, aviation gasoline, naphtha, kerosene, jet fuel, diesel, fuel oils, lubricating oils and greases, paraffins, solvents, bituminous products, and any other analogous products with other designations and origins that may serve the same purpose, including synthetic products, as well as compressed natural gas (CNG) and other gaseous fuels intended exclusively for use as fuel, excluding pure biofuels; b) Reexportation – the sale abroad of petroleum products in the same physical state in which they had been previously imported or acquired from local production to supply the domestic market.

Article 4 Repatriation of Revenues Entities reexporting petroleum products are obliged to repatriate reexportation revenues by bank transfer within thirty days, counting from the date of shipment.

Article 5 Duty to Remit and Convert Revenues

1. The intermediary bank for reexportation is obliged to immediately remit to the Bank of Mozambique the total value of the received reexportation.
2. The Bank of Mozambique converts, into meticais, the received value, at the reference exchange rate in force on the date of the transaction, and remits it to the intermediary bank, which in turn credits the account held by the reexporter.

Article 6 Sanction Regime Violation of this Notice is punishable under the terms of Law No. 28/2022, of December 29 (Exchange Control Act).

Article 7 Clarification of Doubts Doubts regarding the interpretation and application of this Notice must be submitted to the Licensing and Exchange Control Department of the Bank of Mozambique.

Article 8 Entry into Force This Notice enters into force on the date of its publication.

Maputo, March 30, 2023. — The Governor, Rogério Lucas Zandamela.