Instruction on the Special Exchange Regime Applicable to Exploration-Production Oil Companies

BANQUE CENTRALE DU CONGO

THE GOVERNOR

Kinshasa, 04 APR. 2007
D.15/Gouv. 000577

INSTRUCTION ON THE SPECIAL EXCHANGE REGIME
APPLICABLE TO EXPLORATION-PRODUCTION OIL COMPANIES

• Considering Ordinance-Law No. 67/272 of June 23, 1967, defining the regulatory power of the Central Bank of the Congo in matters of exchange, as amended and supplemented to date;

• Considering Ordinance-Law No. 81-013 of April 2, 1981, establishing general legislation on mines and hydrocarbons;

• Considering Decree-Law No. 005 of May 7, 2002, on the organization and functioning of the Central Bank of the Congo;

• Taking into account the evolution of exchange regulation in the Democratic Republic of the Congo;

• Considering the Agreements between the Democratic Republic of the Congo and exploration-production oil companies, specifically in their articles governing the exchange regime regulating the operations of the aforementioned companies; the Central Bank of the Congo communicates below the provisions relating to the exchange regime applicable to production oil companies:

I. ON THE EXPORT OF SOLID, LIQUID AND GASEOUS HYDROCARBONS AS WELL AS ASSOCIATED SUBSTANCES.

1. Companies are authorized to freely export and commercialize their entire production on the market. Export receipts related thereto must be collected within sixty days from the date of loading of said products.

2. Any export operation of products by companies requires the prior subscription with an authorized bank of an Export Declaration model "E.B".

The unit price on the basis of which the value of the "EB" models must be established must correspond to that included in the sales contract concluded by the companies, supporting documents must be attached, and the report of the O.C.C. shall serve as proof.

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II. ON THE IMPORT OF GOODS.

1. Any importation carried out by companies requires the prior subscription with an authorized bank of an Import Declaration model "I.B". The amounts of payments to be made must correspond to those indicated on the final invoice, the Verification Certificate of the OCC agent, the customs declaration and any other supporting document.

However, in order to facilitate regular supply of various goods due to the high frequency of their imports, oil companies are authorized to use the Global formula Import Declarations of Goods model "I.B", provided that the goods to be imported come from the same supplier and are of the same origin and provenance.

2. Global formula "IB" Declarations are established on the basis of an annual forecast (12 months) and are to be countersigned as imports are carried out.

3. Companies that have subscribed to global formula "I.B" declarations are required to transmit to the Central Bank / Directorate of Foreign Services a quarterly report on Imports and countersignatures carried out on this formula, including the exact nature of the goods, the customs tariff number, the quantities, the FOB value, the freight cost, the insurance cost and the countries of provenance and origin.

III. ON THE IMPORTS AND EXPORTS OF SERVICES

4. The import and/or export of services by companies must be carried out under the cover of a Declaration model "I.S" or "E.S" to be subscribed previously with an authorized bank. To this Declaration must be attached all required supporting documents:

• the service or leasing contract,
• the invoice or any other supporting document.

ON THE TRANSFER OF REVENUES AND MOVEMENTS OF CAPITAL

5. Any operation for the transfer of revenues, current transfers and capital movements with a value greater than USD 10,000 requires the prior subscription with an authorized bank of a Declaration model "R.C". The subscriber is required to attach to the "RC" model Declaration any supporting document, in particular:

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• the service lease contract, trademarks, patents, ...
• the loan contract, the interest statement, the decision of the General Assembly on the distribution of profits, ...

V. ON THE EXCHANGE CONTROL FEE

6. Companies are required to pay to the Central Bank of the Congo or its agent an exchange control fee "R.C.C" of 2‰ (two per mille) on any payment to or from abroad and on any export without repatriation;

Companies are required to calculate, every 15 days, the amount of the RCC and to credit the BCC by the 1st and 16th of each month at the latest in the RME/BCC accounts in USD and EUR opened with an authorized bank indicated by the Central Bank of the Congo.

Payment orders to be issued for this purpose must indicate the following mention: "Exchange Control Fee, period from ........... to .............".

VI. ON THE MANAGEMENT OF EXPORT RECEIPTS

7. Companies may repatriate to the Democratic Republic of the Congo the amounts that would be necessary for their treasury needs.

8. Any transfer to be made on an amount held in an RME account in the Democratic Republic of the Congo can only be carried out to the extent that the companies do not have sufficient assets in their accounts abroad.

VII. ON THE TRANSMISSION OF STATISTICS.

9. Companies are required to communicate to the Central Bank of the Congo / Directorate of Foreign Services by the 15th day of the following month the following statistical data:

• the production report;

• The Production and Export Statement of crude oil;

• the statement of payments made to the Public Treasury;

• the statement of operations on accounts abroad according to the model in the annex;

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• the account statement established by the depositary of assets held abroad proving the movements of receipts and expenses suffered by these assets.
• the statement of the amounts of the RCC due on operations whose model is in the annex.

VIII. ON THE MONITORING OF OPERATIONS

10. The Central Bank reserves the right to verify the regularity of the operations recorded on the main account of the companies, held abroad, after having previously informed the holder in writing.

IX. ON CRIMINAL OFFENCES AND REPRESSIVE MEASURES.

11. Infractions to the Exchange Regulation as well as the regime of sanctions relating thereto are provided for by the legal provisions (articles 13 to 20 of Ordinance-Law No. 67/272 of June 23, 1967 defining the regulatory power of the Central Bank of the Congo in matters of exchange).

12. This instruction enters into force on the date of its signature and repeals all prior provisions contrary to it, in particular those of article 27 of the Exchange Regulation in the Democratic Republic of the Congo, February 2003 edition, relating to exemptions granted for the supply of oil platforms.-