Circular No. 05/EES/2011 of 8 June - Mandatory Repatriation of Foreign Exchange Assets

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--- Bank of Mozambique --- Administration

ECONOMIC STUDIES AND FOREIGN EXCHANGE CIRCULAR NO. 05/EES/2011

Maputo, 08 June 2011

Subject: Mandatory Repatriation of Foreign Exchange Assets

Deeming it necessary to issue instructions to ensure full compliance with the obligation to repatriate revenues from the export of goods, services, and investment abroad by resident entities, the Bank of Mozambique, under paragraph 2 of Article 130 of the Foreign Exchange Law Regulations, approved by Decree No. 83/2010 of 31 December 2010, as well as under letter d) of paragraph 2 of Article 37 of Law No. 1/92 of 3 January – Organic Law of the Bank of Mozambique – establishes the following procedures:

1. The process of repatriating revenues from the export of goods, services, and investment abroad by resident entities is carried out through the national banking system, at the beginning of the export operation or receipt of income, with the Intermediary Bank completing in triplicate the Forms for Remittance of Export Revenues of Goods and Services and for Remittance of Investment Income Abroad, both annexed to this Circular and forming an integral part of it.

2. The completion of the forms in triplicate as per the previous paragraph may be done electronically, through the Bank of Mozambique's computer platform, Meticalnet, or manually when the former is not possible; one copy must be attached to the respective file, and the remaining copies delivered to the client and the Bank of Mozambique.

3. The repatriation of revenues or income abroad must occur within a maximum period of 90 days, counted from the dates of the situations provided for in paragraph 2 of Article 8 of the Foreign Exchange Law Regulations.

4. Upon receipt of the revenue or income abroad, the bank must indicate the date on the form and attach the respective banking justification.

--- Bank of Mozambique --- Administration

5. For the purpose of retaining part of the export revenues in foreign currency accounts, the bank must:

   a) Require proof that the applicant is in one of the situations described in the letters of paragraph 5 of Article 8 of the Foreign Exchange Law Regulations,

   b) Calculate the amounts for amortization of foreign currency loans contracted with the national banking system.

6. After deducting amounts for allocation to the situations provided for in the letters of paragraph 5 of this Circular, the remainder may be retained in foreign currency accounts in the national banking system held by the resident entity, up to a limit of 50%.

7. The conversion of export revenues of goods, services, and investment income abroad into the national currency must be made by the intermediary banker of the export, via credit to an account denominated in national currency held by the resident remitting entity, at the exchange rate on the date of receipt of the funds by said banker.

8. This Circular enters into force on 11 July 2011, revoking all provisions to the contrary.

9. Any doubts arising from the interpretation and application of this Circular must be submitted to the Foreign Exchange Department of the Bank of Mozambique.

Waldemar Fernando de Sousa ADMINISTRATOR

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Annex 1 to Circular No. 05

BANK OF MOZAMBIQUE FOREIGN EXCHANGE DEPARTMENT

FORM FOR REMITTANCE OF EXPORT REVENUES OF GOODS AND SERVICES

I. Exporter Data	ATM ID	Advance Payment
Exporter
Address
Contact Person		Email:

Has obligations abroad?	Yes	No

Specify which:	BM Ref.	Amount
External loan amortization
Payment for account maintenance
Other cases
Total
Amortization of local loans in Foreign Currency

II. Importer Data
Buyer		Country
Address		Phone
Contact Person		Email

III. Export Details
Intermediary Bank
Goods / Type of Service Provided		Value
Date of Shipment / Receipt (*)
Date of Repatriation
Exported Amount		Amount Repatriated
Currency		Currency

IV. Retention Calculation
Retention Amount up to 50% of balance
Exchange Rate		MZN Account Dep.
		FCY Account Dep.
Conversion Date

(*) The date of receipt of the price or fees for services provided

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Annex 2 to Circular No. 05

BANK OF MOZAMBIQUE FOREIGN EXCHANGE DEPARTMENT

FORM FOR REMITTANCE OF INVESTMENT INCOME ABROAD

I. Investor Data
Name
Address
Contact Person		Email:
Type of Investment (*)		Value

Has obligations abroad?	Yes	No

Specify which:	BM Ref.	Amount
External loan amortization
Payment for account maintenance
Other cases
Total
Amortization of local loans in Foreign Currency

II. Recipient Data
Company Name		Country
Address		Phone
Contact Person		Email

III. Operation Details
Remitting Bank
Date of Receipt
Date of Repatriation
Amount Received		Amount Repatriated
Currency		Currency

IV. Retention Calculation
Retention Amount up to 50% of balance
Exchange Rate		MZN Account Dep.
		FCY Account Dep.
Conversion Date

(*) a) Foreign Direct Investment; b) Portfolio Investment; c) Debt Instrument; d) Other applications