BOARD

BOARD RESOLUTION NO. 009/2024

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – MODIFY THE REGULATION FOR THE DEFINITION OF THE GOLD EXPORT QUOTA AND FOR THE ISSUANCE OF THE GOLD EXPORT CERTIFICATE.

VIEWING:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 1503 of May 5, 2023, Law on the Purchase of Gold Intended for the Strengthening of International Reserves.
• Supreme Decree No. 5076 dated November 30, 2023.
• The BCB Statute, approved by Board Resolution No. 95/2022 of October 6, 2022.
• Board Resolution No. 156/2023 dated November 30, 2023, which approves the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate.
• The Report from the International Operations Management and the BCB Treasury Management BCB-GOI-SRES-DNI-INF-2024-4 of January 10, 2023.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2024-7 of January 10, 2024.

CONSIDERING:

That Article 327 of the Political Constitution of the State determines that the Central Bank of Bolivia (BCB) is a public law institution, with legal personality and its own assets, which, within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That numeral 5 of Paragraph I of Article 328 of the Political Constitution of the State establishes that it is an attribute of the Central Bank of Bolivia - BCB, in coordination with the economic policy determined by the Executive Branch, to administer international reserves.

That Paragraph I of Article 349 of the Political Constitution of the State provides that natural resources are the direct, indivisible, and imprescriptible property and domain of the Bolivian people, and their administration will correspond to the State based on the collective interest.

That Article 1 of Law No. 1670 establishes that the Central Bank of Bolivia is an institution of the State, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with its legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.

That Article 14 of Law No. 1670 states that the BCB will ensure the strengthening of International Reserves so as to allow the normal functioning of Bolivia's international payments.

That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal rules.

That subsections a), c), and o) of Article 54 of Law No. 1670 indicate the following as attributes of the Board of Directors: Issue the rules and adopt the general decisions that would be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law; carry out follow-up on the execution of monetary, exchange, credit, financial intermediation, and international reserve administration policies and regulations; and approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That Paragraph III of Article 9 of Law No. 1503 establishes that the Central Bank of Bolivia will take the necessary actions for the replenishment of international reserves, based on market conditions and the liquidity of foreign exchange in the International Reserves.

That the Final Provision of Law No. 1503 states that within the framework of Articles 327 and 328 of the Political Constitution of the State, the BCB, with the objective of complying with its constitutional mandate, is authorized to apply what is provided in Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia and its modifications, which is sufficient for the development of its functions, without requiring further provisions from said law.

That Supreme Decree No. 5076 regulates the export of gold, authorizing the Central Bank of Bolivia to issue the Gold Export Certificate.

That Paragraph II of Article 2 of Supreme Decree No. 5076 determines that the BCB, through specific regulation issued by its Board of Directors, will define the quota that will be exported periodically and the requirements for the issuance of the Gold Export Certificate, prior to verification of the quantity required for the replenishment of gold reserves.

That Paragraph I of the Sole Transitional Provision of Supreme Decree No. 5076 establishes that the BCB must regulate Paragraph II of Article 2 of the aforementioned Supreme Decree.

That numeral 1) of Article 10 of the BCB Statute provides that the Board of Directors has the faculty to approve general decisions and issue the rules that would be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law.

That numeral 30) of the aforementioned Article 10 of the BCB Statute states that the Board of Directors may approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for an additional administrative act.

That Article 26 of the Statute stipulates that the Board of Directors pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Likewise, every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the resolution corresponds and by a report from the Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate aims to regulate the determination of the gold export quota and the requirements for the issuance of the Gold Export Certificate.

That Article 2 of the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate regarding the Scope of Application provides that all exporters whose goods to be exported fall under the tariff subheadings contemplated in Paragraph I of Article 2 of Supreme Decree No. 5076 dated November 30, 2023, are subject to the aforementioned Regulation.

That the Report from the International Operations Management and the Treasury Management BCB-GOI-SRES-DNI-INF-2024-4 recommends the BCB Board of Directors approve the proposal to modify the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate.

That the Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2024-7 concludes that the modification to the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate proposed by the International Operations Management and the Treasury Management is legally appropriate, as it does not contravene the current legal framework, recommending the BCB Board of Directors its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 5 of the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, with the following text:

“ARTICLE 5.- (REQUIREMENTS FOR THE ISSUANCE OF THE GOLD EXPORT CERTIFICATE)

I. The requirements that the exporter must meet for the issuance of the CEO are the following:

a) Be registered as a gold seller with the BCB.
b) Written request addressed to the General Management of the BCB, according to the standard note (Annex I).
c) Copy of the identity document of the company's legal representative.
d) Have no pending commitments with the BCB.

II. In the case where the gold exporter requests the issuance of the CEO in advance, they must meet the following requirements:

a) Be registered as a gold seller with the BCB.
b) Have no pending commitments with the BCB.
c) Submit a written request addressed to the General Management of the BCB, according to the standard note (Annex II), requesting the issuance of a CEO in advance for an amount equal to or greater than 0.5 tons, declaring the existence of gold export commitments and attaching a copy of the identity document of the company's legal representative.
d) Sign the Sale Commitment (Annex III).
e) Present a promissory note as established in Article 9 of this Regulation.”**

Article 2.- Modify Article 6 of the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, with the following text:

“ARTICLE 6.- (VERIFICATION)

I. In the event that the exporter meets the requirements established in Paragraph I of the preceding Article, the International Operations Management (GOI), prior to verification of the quantity required for the replenishment of gold reserves, will issue the corresponding CEO within a maximum period of one business day from receipt of the written request.

II. In the event that the exporter meets the requirements established in Paragraph II of the preceding Article, the GOI will issue the CEO within a maximum period of one business day from receipt of the request and the promissory note. The GOI will carry out the corresponding follow-up on the fulfillment of the commitments assumed by the gold exporter.”

Article 3.- Modify Article 7 of the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, with the following text:

“ARTICLE 7.- (QUANTITY TO BE RELEASED FOR EXPORT)

I. The quantity released for the issuance of the CEO in accordance with what is established in Paragraph I of Article 5, will be the quantity equivalent to what was previously acquired by the BCB or the percentage that the Board of Directors determines through Resolution.

II. The quantity released for the issuance of the CEO in advance will be the quantity requested by the exporter, prior to verification that the commitment to sell to the BCB is at least 1.5 times the quantity released.”

Article 4.- Incorporate Article 8 into the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, with the following text:

“ARTICLE 8.- (CONDITIONS FOR SALE COMMITMENTS FOR THE ISSUANCE OF THE CEO IN ADVANCE)

For the issuance of the CEO in advance, the exporter must commit to selling to the BCB the quantities of gold within the following timeframes:

Committed Gold Sale Quantity	Timeframe for Sale Computable from the Date of Issuance of the CEO
from 0.75 tons to 1 ton	Up to 30 calendar days
More than 1 ton to 2 tons	Up to 45 calendar days
More than 2 tons	Up to 60 calendar days

Article 5.- Incorporate Article 9 into the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, with the following text:

“ARTICLE 9.- (PROMISSORY NOTE)

I. In the case of requesting the CEO in advance, the gold exporter must issue a promissory note as a guarantee to the BCB, which will be 1% of the committed value of the sale of gold to the BCB, considering the gold price from the BCB's quotation table on the date of presentation of the promissory note.

II. The promissory note granted by the exporter must have a validity of 30 calendar days greater than the sale timeframe established in the preceding Article of this Regulation. Likewise, this document must comply with what is established in Article 592 of the Bolivian Commercial Code.

III. The BCB will return the promissory note once the GOI verifies the fulfillment of the commitment to sell gold to the BCB. In the event of non-compliance, the BCB reserves the right to execute the promissory note, as established in Article 598 of the Commercial Code.

IV. The Promissory Note will be custodied by the Treasury Management at the request of the GOI.”

Article 6.- Incorporate Article 10 into the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, with the following text:

“ARTICLE 10.- (SANCTIONS IN CASE OF NON-COMPLIANCE)

In the event of non-compliance by the company with the commitment to sell gold to the BCB contemplated in this regulation, it will not be able to obtain a new CEO in advance for a period of three months from the date of non-compliance; in the event of a second non-compliance, the period will be 6 months, and upon a third occurrence, it will not be able to request the advance CEO again.”**

Article 7.- Modify Annex I and incorporate Annexes II and III into the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, which form part of this Resolution.

Article 8.- This Resolution will enter into force from its publication.

Article 9.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, January 10, 2024

SIGNED. ROGER EDWIN ROJAS ULO, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Perez Cueto Eulert

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Annex I: Standard Written Request Note

Date: //____

Mr. General Manager Central Bank of Bolivia Present.-

REF: REQUEST FOR ISSUANCE OF GOLD EXPORT CERTIFICATE - CEO

By means of this document, I, [Name of the representative], with identity document [CI Number or other], representative of the company [Name of the exporting company] with NIM: [NIM Number], request the Issuance of the Gold Export Certificate - CEO for [Quantity of gold in fine kilograms] kilograms of fine gold in favor of the company I represent.

Likewise, I declare that the company [Name of the exporting company] has no pending commitments with the BCB.

Sincerely,

Signature: _________________________ Full Name: _________________________ Identity Document Number: _________________________ Cell Phone: _________________________ Email: _________________________

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Annex II: Standard Written Request Note

Date: //____

Mr. General Manager Central Bank of Bolivia Present.-

REF: REQUEST FOR ISSUANCE OF ADVANCE GOLD EXPORT CERTIFICATE

By means of this document, I, [Name of the representative], with identity document [CI Number or other], representative of the company [Name of the exporting company] with NIM: [NIM Number], request the Issuance of the Gold Export Certificate – CEO in advance for [Quantity of gold in fine kilograms] kilograms of fine gold in favor of the company I represent, for which the company [Name of the exporting company] commits to the Central Bank of Bolivia to sell at least 1.5 times the requested quantity equivalent to ………… within the timeframe of ………… in accordance with Article 8 of the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, thereby guaranteeing the faithful fulfillment of the request through the delivery of a promissory note and the attached Sale Commitment.

In the same way, the company [Name of the exporting company] declares the existence of gold export commitments, which is the reason for this request.

In the event that the company [Name of the exporting company] which I represent incurs in non-compliance, the amount of said promissory note will be consolidated in favor of the BCB.

Finally, I declare that the company [Name of the exporting company] has no pending commitments with the BCB.

Sincerely,

Signature: _________________________ Full Name: _________________________ Identity Document Number: _________________________ Cell Phone: _________________________ Email: _________________________

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Annex III

SALE COMMITMENT

Let this "Sale Commitment" serve solely for the recognition of signatures and rubrics, producing legal effects as a public instrument, signed under the following clauses:

FIRST. The [Name of the exporting company], represented by its [Representative's Position], [Name of the representative], with Identity Card No. [], according to the Power of Attorney Testimony No. [] of [Date], granted before Notary [], Public Faith Notary No. [] of the Municipality of [______], hereinafter referred to as the SELLER.

SECOND. (DECLARATION) Voluntarily, I declare that I have no pending commitments with the BCB; as well as I declare the existence of gold export commitments that the [Name of the exporting company] has. In the same way, I commit to strict compliance and adhere to what is established in the Regulation for the Definition of the Gold Export Quota and for the Issuance of the Gold Export Certificate, approved by Board Resolution No. 156/2023 of November 30, 2023 and its modification, hereinafter the REGULATION.

THIRD. (OBJECT) By this Sale Commitment, the SELLER is granted the Gold Export Certificate (CEO) in advance, to carry out its export, with the condition of selling gold to the BCB of at least 1.5 times the released quantity equivalent to ………… within the timeframe of ………… computable from the issuance of the advance CEO in accordance with Article 8 of the REGULATION.

FOURTH. (GUARANTEE) As a guarantee, I grant in favor of the BCB a promissory note which will be 1% of the committed value of the sale of gold to the BCB, considering the gold price established in the BCB's quotation table on the date of presentation of the promissory note, with the objective of guaranteeing the sale of at least 1.5 times the quantity released for export, in accordance with what is established in the REGULATION. Likewise, in compliance with Article 592 of the Bolivian Commercial Code, the promissory note has the following characteristics: ________.

Once the SELLER carries out the sale to the BCB of at least 1.5 times the quantity released for export and the Final Liquidation Form is issued by the International Operations Management, the return of the promissory note will be authorized.

In the event of non-compliance with the sale to the BCB, the amount of the Promissory Note will be consolidated in favor of the BCB, and the corresponding judicial route may be pursued.

FIFTH. (RESPONSIBILITY) The SELLER and its representative are responsible for the sale of gold to the BCB of at least 1.5 times the quantity released for export, in execution of this Sale Commitment; as well as they submit to the conditions determined by the BCB in its REGULATION.

SIXTH. (CONFORMITY) As a sign of conformity, the SELLER expresses its full acceptance and agreement with the entire text of this Sale Commitment, signing at the foot thereof as evidence, for its faithful and strict compliance.

La Paz, ________.