Foreign Exchange Regulations in the Democratic Republic of Congo (March 2014)

OFFICIAL JOURNAL of the Democratic Republic of Congo PRESIDENTIAL CABINET FOREIGN EXCHANGE REGULATIONS IN THE DEMOCRATIC REPUBLIC OF CONGO 55th Year Special Issue 28 March 2014 Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 2 Subscription, purchase of the issue, and insertion conditions Subscription requests as well as those for the purchase of separate issues must be addressed to the Official Journal Service, Presidential Cabinet, P.O. Box 4117, Kinshasa 2. The amounts corresponding to the price of the subscription, the issue, and paid insertions are paid according to the payment method for sums due to the State. Any acts and documents to be inserted in the Official Journal must be sent either directly to the Official Journal of the Democratic Republic of Congo, in Kinshasa/Gombe, Colonel Lukusa Avenue No. 7, or by the Clerk of the Tribunal if it concerns acts or documents whose Law prescribes publication by its care, or finally by the interested parties if it concerns acts or documents whose publication is made at their diligence. Subscriptions are annual. They commence on January 1st and are renewable no later than December 1st of the year preceding that to which they relate. Any complaint regarding the subscription or insertions may be addressed to the Official Journal Service, P.O. Box 4117, Kinshasa 2.

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Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 3 TABLE OF CONTENTS CENTRAL BANK OF CONGO 2014 Page 25 March FOREIGN EXCHANGE REGULATIONS IN THE DEMOCRATIC REPUBLIC OF CONGO .............................................................................. 5 Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 5 FOREIGN EXCHANGE REGULATIONS IN THE DEMOCRATIC REPUBLIC OF CONGO Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 7 THE CENTRAL BANK, Having regard to Law No. 005 of 07 May 2002 relating to the constitution, organization, and functioning of the Central Bank of Congo, specifically in its articles 6, 18, and 60; Having regard to Law No. 73-009 of 05 January 1973 particular on commerce, as modified to date by Law No. 74-014 of 10 July 1974, specifically in its articles 12, 14, 18, and 20; Having regard to Law No. 007/2002 of 11 July 2002 establishing the Mining Code, specifically in its articles 263 and following; Having regard to Law No. 04/016 of 19 July 2004 on the fight against money laundering and the financing of terrorism, specifically in its articles 6 and 7; Having regard to Ordinance-Law No. 67/272 of 23 June 1967, relating to the regulatory powers of the National Bank of Congo in matters of Foreign Exchange Regulation, as modified and supplemented to date, specifically in its articles 1st and following; Having regard to Decree-Law No. 004/2001 of 31 January 2001 relating to the regime of operations in national and foreign currencies in the Democratic Republic of Congo, specifically in its articles 1st and following; Having regard to Ordinance-Law No. 10/002 of 20 August 2010 establishing the Customs Code, specifically in its articles 37 and 85; Having regard to Decree No. 038/2003 of 26 March 2003 establishing the Mining Regulation; Having regard to Decree No. 09/42 of 03 December 2009 fixing the statutes of a public establishment of a scientific and technical nature named Congolese Control Office, "OCC" in short; Having regard to Decree No. 09/43 of 03 December 2009 establishing and organizing the General Directorate of Customs and Excises, "DGDA" in short; Considering the international commitments undertaken by the Democratic Republic of Congo, in the realm of external financial relations and specifically its adherence to the provisions of Article VIII of the Articles of Agreement of the International Monetary Fund relating to the non-recourse to restrictions on current payments and to the General Agreement on Tariffs and Trade of 1994; Considering the evolution of the nomenclature of foreign exchange operations as defined in the Balance of Payments and International Investment Position Manual, 6th edition, HEREBY ENACTS THE FOLLOWING PROVISIONS:

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Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 8 Chapter I: GENERAL PROVISIONS SECTION 1: DEFINITIONS Article 1: For the purposes of these Foreign Exchange Regulations, the following terms are understood as: Public Administration: a set of organs and Public Services, lacking legal personality, charged with ensuring State interventions to achieve the general interest. Cancellation of a foreign exchange document: an operation by which an approved intervening bank, on its own initiative or by its subscribing client or by the Central Bank, ends the life of a Declaration during or after the maximum validity date, provided that the operation has not known a beginning of execution. Arbitrage: a speculative operation of purchase or sale between foreign currencies, consisting of using price differences on different stock exchanges. AV (Import Verification Certificate): a document issued by the OCC agent at the end of an inspection or control of goods before shipment, in accordance with the Declaration for import of goods model "IB" and the final invoice. Luggage and personal effects: articles, new or used, which a traveler can reasonably need for personal use during their journey, taking into account all circumstances of this journey and intermediate stays, excluding any merchandise imported or exported for commercial purposes. Central Bank: Central Bank of Congo. Intervening bank: any approved bank involved in a transaction between residents and non-residents. Good: in the context of foreign trade, any thing capable of satisfying a need and undergoing customs formalities for the purpose of a transfer of ownership between a resident and a non-resident. Capital: the set of tangible, financial, or intellectual resources sent or received by a resident as part of the transfer of ownership of fixed assets; transfers of funds linked or dependent on the acquisition or disposal of fixed assets; the cancellation, without compensation received in return, of commitments by creditors and the acquisition or disposal of non-produced non-financial assets (intangible assets). Fuels: combustibles notably: super gasoline, ordinary gasoline, tourism gasoline, aviation gasoline (avgas), kerosene, diesel, fuel-oil (fomi), gas, liquefied petroleum gas (l.p.g.), and aviation kerosene (JETA1). Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 9 Bank guarantee: an act of commitment by the intervening bank which accepts to take on the main obligation existing between its client and the Central Bank, in the event of default by the latter. CVEE (Export and Shipment Verification Certificate): a document issued by the Congolese Control Office (OCC) attesting to the real quality, quantity, and value of exported and shipped goods. Border trade: any activity of purchase and sale of goods carried out between resident and non-resident of neighboring countries, during periodic markets organized in certain border localities of the DRC and said countries. It also includes import and export transactions of goods settled in these border localities by resident natural persons (of very small economic size) with neighboring countries. In all cases, the value of the goods cannot exceed USD 2,500 or its equivalent in other foreign currencies per operation, the splitting of their import or export values being prohibited. Exchange rate: price expressed in national currency, of certain units of foreign currencies. Beginning of execution: when for a valid Declaration one of the following operations has already been carried out:

• on the import of goods (IB): the control of goods by the OCC agent [AV or ARA (Notice of Refusal of Certificate) being authoritative]; the partial or total payment in favor of the foreign supplier;
• on the export of goods (EB): the advance financing received or the early repatriation of partial or total proceeds; the partial or total shipment of goods [CVEE or SD (Final Exit) being authoritative]. DDR: Declaration of Expenses and Revenues DGDA: General Directorate of Customs and Excises. DGI: General Directorate of Taxes. Sample with no commercial value: articles considered by customs as having negligible value and which are used only to seek orders for merchandise of the kind they represent. Material error: any erroneous imputation or bad transcription of the amounts due for the payment of the Foreign Exchange Monitoring Fee (RSC). Export of goods: transfer of ownership of goods from a resident to a non-resident for consideration or gratuitously after customs formalities. Export on consignment: sending of goods to the importing country, not as a result of a concluded sale, but with the intention of selling them there on behalf of the supplier. Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 10 Temporary export: a customs regime that allows sending goods from the national territory to abroad, for any reason, certain goods intended to be reimported, within a determined deadline. Temporary export for passive processing: a customs regime that allows sending from the national territory to abroad, certain goods intended to be reimported, within a determined deadline, after having undergone transformation, finishing, or repair. SRD (Export Without Repatriation of Foreign Exchange): any export of goods for which the repatriation of proceeds is not required. Commercial invoice (final): a document detailing the goods sold or services rendered. It must, unless otherwise stipulated, be issued by the supplier of the goods and services and be drawn up in the name of the importer. It describes the goods or services corresponding to those realized in the transaction. It is denominated in the currency of the transaction. Pro forma invoice: a document prepared by the exporter, carrying an evaluation of the services or goods before their provision or shipment, offering the conditions for the execution of an order and intended to be handed to potential importers for information. It is issued before the execution of the transaction and can serve as proof for the buyer to subscribe to a Declaration with an approved bank. Bank guarantee: commitment of the resident exporter by the constitution, with the intervening bank, of a provision equal to or greater than the value of the good to be temporarily exported. Import of goods: acquisition of ownership of goods from a non-resident by a resident for consideration or gratuitously after customs formalities. SAD (Import Without Purchase of Foreign Exchange): any import of goods financed by resources not intercepted by the national banking system. Import under bond: import for which no sale has taken place since arrival on the national territory and whose goods remain the property of the foreign supplier until they have been sold through the intermediary of the broker, agent, or concessionaire. Temporary import: a customs regime that allows receiving on the national territory, for any reason, certain goods intended to be reexported, within a determined deadline. Temporary import for active processing: a customs regime that allows receiving on the national territory, certain goods intended to be reexported, within a determined deadline, after having undergone transformation, finishing, or repair. Urgent import: a derogatory regime for the acquisition of goods intended to resolve an unexpected inconvenience that would block the normal functioning of a production entity. Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 11 Incoterms: a set of uniform rules defined by the International Chamber of Commerce (ICC), codifying the interpretation of commercial conditions defining the rights and obligations of the seller and the buyer in an international transaction. Foreign exchange market: a non-localized place where foreign currencies are negotiated confronted with offers and demands of foreign currencies against the national currency. Electronic Money: monetary value that is loaded in electronic form, representing a claim on the issuer, which is issued against the handover of funds for the purpose of payment operations and which is accepted by a natural or legal person other than the issuer of electronic money. International trade: any operation of purchase of merchandise by a resident from a non-resident supplier, with a view to its subsequent resale to a non-resident buyer without the merchandise being present in the reporting economy, which is the Democratic Republic of Congo. Just like the supply of merchandise by a resident exporter on order of a non-resident buyer to be delivered to a final beneficiary, also a non-resident. Non-resident: any natural or legal person having their habitual residence or economic activity abroad, including diplomatic representations, diplomats, and international civil servants, with the exception of students, tourists, and patients as well as Congolese civil servants and military personnel posted abroad. NRME: Non-Resident in Foreign Currencies OCC: Congolese Control Office Foreign exchange operations: the set of transactions settled between the DRC and the rest of the world, concerning goods, services, income transfers, capital, and financial operations as well as those settled in foreign currencies on national territory. Financial operations: the set of operations mobilizing financial assets and liabilities carried out between residents and non-residents. Payment: settlement of an obligation by means of a sum of money in exchange for a good or service acquired, executed either in cash, or at the counters of a credit establishment by bank transfer (national or international) to a beneficiary or by handing over cash funds to the beneficiary. Exchange Position: state that describes the respective structures of the stocks of holdings and commitments in foreign currencies of a bank on a given date. Tariff position: designation appearing in the text of a tariff nomenclature of a single merchandise or a single group of associated merchandise. Export advance financing: credit received from a non-resident lender, reserved for financing the expenses necessary for the preparation of a stock of merchandise intended for export for the benefit of the lender. Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 12 Principal center of interest: place where the natural or legal person exercises their main economic activity. Extension of validity deadline: attribution of a new deadline to an unexpired Declaration. Report of the lot ready for export: document delivered to the exporter by the OCC after inspection of the goods, prior to subscribing to a Declaration for export of goods model "EB" with a bank. Foreign Exchange Monitoring Fee: monetary levy, instituted by Law, in favor of the Central Bank on any operation subject to its Regulation. Foreign Exchange Regulation: the set of provisions enacted by the Central Bank that govern transactions in foreign currencies within the country and those between the Democratic Republic of Congo and the rest of the world. Reinstatement: act by which the Central Bank authorizes an approved intervening bank to give new validity to an expired foreign exchange document. Resident: any natural or legal person having their habitual residence or principal center of interest in the Democratic Republic of Congo, including diplomatic representations, diplomats, and Congolese international civil servants abroad, with the exception of students, tourists, and patients as well as foreign civil servants and military personnel posted in the DRC. Primary income: income that accrues to residents in exchange for: (i) their contribution to the production process of goods and services, (ii) the provision of financial assets, and (iii) the rental of natural resources to non-residents and vice versa. Secondary income: any current transfer without consideration between residents and non-residents. RME: Resident in Foreign Currencies Service: intangible good whose production and consumption are theoretically simultaneous. Bank transfer: any operation of sending or receiving international funds by banking channel. Transaction: operation of exchange of values or transfer of ownership. Tariffs and Conditions: the set of modalities fixed by the Central Bank on its operations, accompanied by monetary and administrative sanctions applicable in case of violation of the regulatory texts enacted by it. Transfer of Declaration: cession between two banks of a validated Declaration for the continuation of operations relating to it. Transit of goods: a duty-free regime recognized to goods that cross the national territory without being consumed there. Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 13 Current transfer: transfer of ownership of real resources or financial assets without consideration. Contract work: transformation undergone by a temporarily imported or exported good. Traveler: natural person, resident or non-resident, who crosses the borders of the Democratic Republic of Congo, in entry or exit. SECTION 2: DETENTION OF FOREIGN CURRENCIES Article 2: The detention of foreign currencies in the Democratic Republic of Congo is free. Article 3: Paragraph 1: The detention by resident and non-resident travelers of payment means in foreign currencies, upon entry into the national territory, is free. Paragraph 2: Notwithstanding the provisions of Article 6 of the Law on the fight against money laundering and the financing of terrorism, the amount in foreign currencies to be held in cash upon entry and exit from the national territory cannot be equal to or greater than ten thousand United States dollars (USD 10,000) or its equivalent in other foreign currencies. Sums exceeding this ceiling upon entry as well as upon exit from the national territory must be subject to a bank transfer. SECTION 3: TRANSACTIONS AND SERVICE PROVISIONS IN FOREIGN CURRENCIES Article 4: Paragraph 1: Transactions on national territory are expressed and settled in national currency. Unless otherwise provided by these Regulations, they may also be denominated and settled in foreign currencies according to the agreement of the parties. Paragraph 2: The prices of goods and services on national territory are displayed in national currency. Official Journal - Legal Data Bank - 2014

Official Journal - Special Issue – 28 March 2014 Central Bank of Congo 14 Paragraph 3: Transactions denominated in foreign currencies can only be executed in one of the currencies or units of account quoted by the Central Bank. The Central Bank publishes daily the exchange rates of the currencies and units of account quoted by it. Article 5: Any payment in foreign currencies on national territory, equivalent to or greater than USD 10,000.00 (ten thousand United States dollars) must be made by banking channel, except in a locality devoid of a bank. Subject to this exception, the competent authorities authorized to certify or authenticate acts relating to these transactions are required to require proof of their settlement in a bank, prior to their issuance. Article 6: Paragraph 1: Service provisions on national territory are evaluated and remunerated in national currency. Unless otherwise provided by these Regulations, they may also be evaluated and remunerated in foreign currencies according to the agreement of the parties. Paragraph 2: Services relating to operations concluded between residents are fixed and paid exclusively in national currency:

• rents of leases for residential buildings;
• short-term credits granted to households by credit establishments;
• school and academic fees;
• costs related to health care, water consumption, and electricity for domestic use. Paragraph 3: Taxes, duties, fees, rights, and other payments of any nature whatsoever due to the State, to the Provinces, or to Decentralized Territorial Entities as well as the prices of forms and other documents delivered on national territory by the Administration and the service provision enterprises of the State portfolio are fixed and paid in national currency. Paragraph 4: Taxes, duties, fees, rights, and other payments of any nature whatsoever due to the State, to the Provinces, or to Decentralized Territorial Entities by enterprises of Official Journal - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of the Congo 15 petroleum production and holders of mining rights are fixed and paid in national currency.

SECTION 4: ON DONATIONS AND LIBERALITIES IN FOREIGN CURRENCIES

Article 7:

Paragraph 1:

Donations and liberalities in cash granted by public authorities and administrations on national territory are denominated and effected in national currency, regardless of the beneficiary.

Paragraph 2:

Donations and liberalities in cash granted by public authorities and administrations in favor of residents, non-residents, or other institutions located abroad may be effected in foreign currencies.

SECTION 5: ON THE MONITORING OF FOREIGN EXCHANGE OPERATIONS

Article 8:

Paragraph 1:

Foreign exchange operations referred to in Chapters II, III, and IV of this Foreign Exchange Regulation require the prior subscription of a change document with an approved bank or any other agent of the Central Bank.

This subscription is carried out through the IT system set up by the Central Bank.

The Central Bank fixes by instruction the procedures for carrying out these operations.

Paragraph 2:

Under cover of a transmission statement including the number of each validated declaration and the references of supporting documents, copies of the annexes and other physical supporting documents required by this Foreign Exchange Regulation upon the validation of any change document, are transmitted to the Central Bank/Direction responsible for monitoring foreign exchange operations in its attributions on the first working day of each week.

For operations validated in the provinces, these documents are deposited, under the same conditions, with the Provincial Direction, the Autonomous Agency, or the Mandate Agency of the Central Bank of the jurisdiction.

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Article 9:

For better monitoring of foreign exchange operations, the Congolese Control Office, hereinafter OCC, the General Directorate of Customs and Excise, hereinafter DGDA, the General Directorate of Taxes, hereinafter DGI, or any other national public or private body, have access to the Central Bank's database.

To this end, a specific convention determines the conditions of collaboration with the Central Bank.

Article 10

Paragraph 1:

Intermediaries, approved banks, and all other bodies mandated by the Central Bank are obliged to transmit information related to foreign exchange operations via the IT system.

Paragraph 2:

Approved banks, bodies referred to in Article 9 above, as well as other agents of the Central Bank, are responsible for the content of the information transmitted via the IT system by their staff using the personal identifiers attributed to them by the Central Bank.

Paragraph 3:

Without prejudice to the means of proof admitted by legal texts, proof of transmission of the data required by this Regulation, within the regulatory deadline, is given by the IT system which indicates the date and time.

Article 11:

Paragraph 1:

Change documents referred to in Chapters II, III, and IV of this Foreign Exchange Regulation may, before the closure of the operation relating to them, be modified, extended, transferred to another bank, or reinstated.

Paragraph 2:

A valid change document may, at the request of the subscriber and supported by justifications, be modified by the intervening bank or the concerned agent of the Central Bank.

Paragraph 3:

Modifications to be made on a valid change document may concern all fields, except that relating to the nature and quality of goods, services, and revenue and capital operations. In the event of modification of the nature and quality of goods, services, and revenue and capital operations, a new declaration must be subscribed.

Paragraph 4:

Modification of the payment method Without Purchase of Foreign Exchange (SAD) is also not admitted. However, the payment method Without Repatriation of Foreign Exchange (SRD) may, for its part, be modified.

Paragraph 5:

In the case of an export or import operation that has seen a start of execution, the modification of fields relating to the quantity of goods and the amount to be paid or repatriated can only be validated on the basis of the Notice of Refusal of Attestation (ARA) for imports or the Export and Shipment Verification Certificate (CVEE) for exports and a new invoice.

Article 12:

Paragraph 1:

The validity of a change document is 360 calendar days, from its validation, for import declarations of goods and services. It is 90 calendar days, from its validation, for export declarations of goods and services and those of transfer of revenues and capital.

Paragraph 2:

This validity may be extended ex officio by the intervening banks once for a maximum period of 180 calendar days for imported goods and services and 90 calendar days maximum for other operations. Any subsequent extension must be submitted to the appreciation and authorization of the Central Bank.

However, the validity of a Declaration covering an operation justified by a commercial contract may correspond to that of said contract, after favorable opinion of the Central Bank.

Paragraph 3:

Any reinstatement requested of an expired Declaration is only granted by the Central Bank.

Paragraph 4:

The intervening bank is jointly liable, with the subscriber, to ensure the proper outcome of the operation in accordance with the provisions of this Foreign Exchange Regulation.

Paragraph 5:

At the initiative of the client, the intervening bank may request from the Central Bank, the transfer of the validated Declaration to another approved bank.

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This request must be supported by a document proving the commitment of the cessionary bank to continue the outcome of the operation.

In case of authorization, the cessionary bank is subrogated to the rights and obligations of the ceding bank.

The transfer of the physical file from the ceding intervening bank is supported by a transmission letter of which a copy is reserved for the Central Bank.

Paragraph 6:

When payment is governed by the Uniform Rules and Usances relating to documentary credits in force, the transfer is not authorized.

SECTION 6: ON ADMINISTRATIVE FEES AND OTHERS

Article 13:

The Central Bank levies administrative fees and others in accordance with its Instructions, following notably:

• the authorization of modification, extension, reinstatement, cancellation, and transfer of change documents;
• the late transmission of statistical data;
• the poor codification of foreign exchange operations;
• the monitoring of foreign exchange operations;
• the registration of counters for the purchase and sale of mineral substances as well as entities for the processing and transformation of mineral substances.

SECTION 7: ON THE FOREIGN EXCHANGE MONITORING FEE

Article 14:

Paragraph 1:

The Central Bank collects a Foreign Exchange Monitoring Fee of 2‰ on all foreign exchange operations regardless of the quality of the order giver or the beneficiary, with the exception of cases provided for in Article 15 paragraph 2.

Paragraph 2:

The Central Bank may mandate approved banks or any other body to collect, on its behalf, the Foreign Exchange Monitoring Fee.

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Paragraph 3:

Any intervening approved bank automatically deducts the Foreign Exchange Monitoring Fee on the total amount of the operation subject to it validated by it during the repatriation of export receipts, the payment of imports, as well as any other incoming or outgoing transfer.

For imports without purchase of foreign exchange and exports without repatriation of foreign exchange, the deduction of this Fee takes place upon the validation of the change document.

Article 15:

Paragraph 1:

The following operations are subject to the collection of the Foreign Exchange Monitoring Fee:

a) any account funding by international transfer and any payment originating from or destined for abroad;

b) any international debit of an RME or NRME account using a bank card;

c) any import Without Purchase of Foreign Exchange;

d) any export Without Repatriation of Foreign Exchange;

e) any import or export carried out outside the national banking system.

Paragraph 2:

The following are not subject to the collection of the Foreign Exchange Monitoring Fee:

a) operations carried out on behalf of the Public Treasury and the Central Bank;

b) foreign exchange operations carried out by approved banks for their own accounts in terms of arbitrage, intervention on the interbank foreign exchange market, fees and commissions charged by correspondents as well as arbitrages carried out by exchange offices;

c) debit and credit operations between foreign currency accounts opened with the national banking system;

d) cash withdrawals on RME and NRME accounts carried out on national territory;

e) any sale and any purchase of foreign currencies against national currency by banks or other approved intermediaries;

f) any debit or credit operation carried out by residents on their accounts held abroad;

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g) operations of diplomatic missions and those of diplomats accredited in the Democratic Republic of Congo;

h) any debit movement made on the main account abroad of a holder of mining rights towards the account affected to the service of external debt;

i) operations of international bodies enjoying diplomatic status, and this, in accordance with headquarters agreements concluded with the Democratic Republic of Congo.

Article 16:

Except for deductions made by agents designated by the Central Bank whose tax base is determined in national currency, the Foreign Exchange Monitoring Fee is payable in foreign currencies and the amounts related thereto are paid in favor of the Central Bank, in accordance with its administrative instructions.

Article 17:

The Foreign Exchange Monitoring Fee collected is not refundable, except in case of material error. In this case, the refund request must be submitted to the appreciation of the Central Bank.

SECTION 8: ON OPERATIONS CARRIED OUT UNDER INTERNATIONAL AGREEMENTS

Article 18:

Foreign exchange operations initiated within the framework of international agreements are settled in accordance with the provisions of this Foreign Exchange Regulation.

SECTION 9: ON INTERNATIONAL TRANSIT OF GOODS

Article 19:

Paragraph 1:

Goods in international transit are not subject to the provisions of this Foreign Exchange Regulation and are admitted on national territory in accordance with the Customs Code.

Paragraph 2:

The DGDA informs the Central Bank of any international transit movement of goods.

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These information cover the following aspects:

• customs post and entry date;
• nature of the merchandise;
• quantity of the merchandise;
• identity of the importer and their physical address;
• identity of the service provider;
• duration of the transit;
• customs post and exit date.

Paragraph 3:

The economic operator service provider, on an international transit operation, is required to subscribe to a model "ES" Declaration with an approved bank, before ensuring the transport of goods.

The DGDA is required in this case, to release the goods, for transport, only upon presentation of a valid model "ES" Declaration, subscribed by the service provider.

Paragraph 4:

In the event of renunciation of international transit in favor of release for consumption on national territory, the importer or their agent authorized for this purpose is required to comply with the provisions of the Customs Code and this regulation relating to the importation of goods.

SECTION 10: ON INTERNATIONAL TRADE

Article 20:

Paragraph 1:

Foreign exchange operations within the framework of International Trade are authorized.

Paragraph 2:

At the time of payment, the resident must subscribe to a model "RC" declaration with an approved bank.

Paragraph 3:

The approved bank validates the model "RC" declaration on the basis of the commercial contract and/or pro forma invoice obtained from the non-resident supplier.

Paragraph 4:

The resident must also, on the same occasion, present:

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a) the commercial contract concluded with the non-resident buyer and/or the final invoice established by the resident;

b) the letter of commitment by which the economic operator undertakes to bring back the total invested capital as well as the profit within the regulatory deadline.

Paragraph 5:

The ratio between the amount of the sales invoice and that of the purchase invoice must be greater than 1.05.

Paragraph 6:

The invested capital and the profits realized are repatriated within sixty (60) calendar days.

Paragraph 7:

No loss is admitted in an international trade operation, except in case of force majeure certified by the competent bodies.

Paragraph 8:

When an export is carried out within the framework of International Trade, the resident has no obligation to indicate the country of destination on the model "EB" Declaration, if this is stipulated in the contract.

In this case, repatriation is due before the shipment of the goods.

SECTION 11: ON THE REGISTRATION OF ENTITIES FOR THE PROCESSING AND TRANSFORMATION OF MINERAL SUBSTANCES AND OF COUNTERS FOR THE PURCHASE AND SALE OF PRECIOUS AND SEMI-PRECIOUS MINERAL SUBSTANCES OF ARTISANAL MINING

Article 21:

Paragraph 1:

Entities for the processing and transformation of mineral substances as well as counters for the purchase and sale of artisanal mining mineral substances are obliged to obtain prior to their approval by the Ministry of Mines, a registration number with the Central Bank/Direction responsible for monitoring foreign exchange operations in its attributions.

Paragraph 2:

Entities for the processing and transformation of mineral substances may, in case of necessity, request the modification of their registration status.

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Article 22:

The registration request is addressed to the Central Bank/Direction responsible for monitoring foreign exchange operations in its attributions specifying the quality for which registration is requested, and supported by:

• the copy of the statutes of the applicant company;
• proof of national identification;
• proof of identification in the Mining Cadastre;
• proof of registration in the Commercial and Movable Credit Register;
• proof of payment of registration and file fees.

Chapter II: ON GOODS

SECTION 1: ON COMMON PROVISIONS APPLICABLE TO EXPORT AND IMPORT OPERATIONS OF GOODS

Article 23:

Except for border trade, any export or import operation of goods, regardless of the financing mode, requires the prior subscription, with an approved bank or any other agent designated by the Central Bank for this purpose, of a model "EB" Declaration for exports and model "IB" for imports of goods.

Article 24:

A model "EB" or model "IB" Declaration may cover the export or import of goods of different tariff positions provided that the related commercial contract is concluded with the same client or the same supplier, and that the goods have the same destination or the same origin.

If this condition is not met, it is obligatory to subscribe to a Declaration both for each client or supplier as well as for each destination or origin.

Article 25:

Paragraph 1:

At the time of their subscription, the model Declarations "EB" and "IB" must be supported by the following documents:

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a) For exports:

• the commercial contract and/or the final invoice or the Notarial Deed of Donation (in the case of in-kind donations);
• specific authorizations required from the Public Administration, if applicable;
• the lot report ready for export;
• the quality certificate;
• the expertise certificate (raw materials);
• the certificate of origin (precious materials);
• proof of payment of the reforestation tax (logs).

b) For imports:

• the commercial contract and/or the pro forma invoice or the Notarial Deed of Donation (in the case of in-kind donations);
• specific authorizations required from the Public Administration, if applicable.

Paragraph 2:

The intervening banks are required to keep all the justifications listed in paragraph 1 above and to indicate only their references in the relevant section of the change document.

Paragraph 3:

Approved banks and any other agent approved by the Central Bank for this purpose are authorized to validate the model Declarations "EB" and "IB" in accordance with these provisions.

Article 26:

Any unused model "EB" or "IB" Declaration is automatically cancelled by the intervening bank within seven (7) days following its expiration.

In case of non-cancellation within the required deadline, the Central Bank proceeds to the ex officio cancellation on the eighth (8th) day and charges the default intervening bank with a penalty.

Article 27:

Paragraph 1:

For the urgent importation of goods of the same tariff position, whose characteristics are not known at the time of validation of the change document, economic operators may use the model "IB formula" Import Declaration of goods "global" established on the basis of estimated annual forecasts and not accompanied by pro-forma invoices.

Paragraph 2:

The model "IB" global formula Declaration must indicate in the box reserved for the customs tariff, the chapter relating to the tariff positions of the goods to be imported.

In the event of importation of several goods belonging to different chapters, the importer is required to subscribe to a model "IB" global formula Declaration per chapter.

The fields reserved for the countries of origin and provenance of the merchandise and those reserved for the name and address of the supplier must be filled in at the time of subscription.

Article 28:

Paragraph 1:

The importation and exportation of goods are carried out FOB or CIF or according to other terms of international commerce (incoterms) in force issued by the Chamber of Commerce International.

Paragraph 2:

Transport costs, insurance as well as related costs must be indicated in the relevant box of the model "IB" Declaration or the model "EB" Declaration in the event that the operation is carried out FOB, FCA or FAS.

Paragraph 3:

In the event that the resident ensures the movement of goods by their own means of transport, the cost of transport must be indicated in the relevant box of the model "IB" Declaration or the model "EB" Declaration.

Article 29:

Paragraph 1:

The payment of imports and exports is carried out according to the payment modes generally accepted in international commerce.

Paragraph 2:

For any payment of import or export of goods, the intervening bank is required to establish, within three (3) working days, a Declaration of expenses or receipts in foreign currencies (DDR).

Journal Officiel - Legal Data Bank - 2014

Article 30: Paragraph 1: Any control of goods to be imported or imported is conditioned by the existence of the model declaration "IB" relating to them. Any resident wishing to carry out an import operation of goods is required to obtain the Verification Certificate or the Notice of Refusal of Verification from the OCC mandatee after pre-shipment control. Any resident who has imported goods at sea, goods exempt from inspection, or goods that escaped inspection before shipment, is required to have them controlled upon arrival; the OCC Import Verification Certificate shall be conclusive.

Paragraph 2: Any resident wishing to carry out an export operation of goods is required to have them controlled before their exit from the national territory; the OCC Export and Shipment Verification Certificate shall be conclusive. The exporter is required to present the customs declaration attesting to the actual exit of the goods to the intervening bank within ten (10) working days from the date of exit. In the event of non-presentation of the customs declaration by the exporter within the required period, the intervening bank is required to request it within five (5) working days following. It is further required to denounce the offender to the Central Bank/Direction having the supervision of foreign exchange operations within its purview, within a period of five (5) working days after the expiration of the request period.

Paragraph 3: The payment of the OCC's or its mandatee's services is guaranteed by the establishment of a provision or a bank guarantee upon validation of the declaration. Regarding "Global Formula" declarations for which the provision is not required at validation due to their prospective and urgent nature, it will be established, by authorized banks, pro rata to the amount of each payment relating to it. The payment of said services is made to the benefit of the OCC within eight days, by automatic deduction charged to the importer or exporter, upon presentation of the OCC control fee statements to which are attached the Import Verification Certificates (AV), the Notice of Refusal of Verification (ARA) or the Export and Shipment Verification Certificates (CVEE) or the Non-Export Certificates (CNE) as the case may be. For reasons other than the payment of services, this provision or guarantee can only be lifted upon express request of the Congolese Control Office after favorable opinion of the Central Bank.

SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO THE EXPORT OF GOODS

Article 31: Paragraph 1: A duly validated model declaration "EB" constitutes the intention of the subscriber to export and, in case of export, the intervening bank is obliged to receive the total value of the export realized within the deadlines defined in Article 33 below. The model declaration "EB" is valid for ninety (90) calendar days from the date of validation and may be extended for the first time by the intervening bank at the request of the subscriber for a new period of ninety (90) calendar days. Any other extension must be submitted to the authorization of the Central Bank.

Paragraph 2: The Central Bank may also grant, in specific cases and at the express request of the exporter, if the commercial contract justifies it, a derogation to adapt the validity period of the declaration to that of the commercial contract.

Article 32: Paragraph 1: Except for artisanal-produced gold and diamonds, the amount of which must be received in the bank within twenty (20) days at the latest from the date of exit, the repatriation of export or re-export proceeds of all other products of whatever nature must take place at the latest sixty (60) calendar days from the date:

• of exit of the goods from the national territory for a final destination;
• of loading from an African country for a final destination. The exporter is required to transmit to the intervening bank the transport document of the goods shipped for certification of the loading date.

Paragraph 2: For consignation exports, the repatriation of export proceeds must take place upon the sale of the goods and at the latest on the expiry date of the validity of the model declaration "EB". As sales are realized, the exporter is required to receive a consignation statement, as well as the corresponding payment in his favor when he must repatriate the proceeds.

The consignation statement must be accompanied by the sales invoice and mention: a) the nature and quantity of the merchandise sold; b) the effective selling price; c) the various fees and commissions due by the exporter according to the terms of the commercialization agreement; d) the net amount to be paid to the exporter and repatriated through the channel of the intervening bank.

Paragraph 3: The intervening bank ensures the repatriation of proceeds within the prescribed deadlines.

Paragraph 4: The intervening bank is required to credit the exporter's RME account within 48 hours of the receipt of these proceeds.

Article 33: Exporters are not required to retrocede their export proceeds to the banks or the Central Bank. However, in the event of cession of export proceeds, the conditions and modalities are to be agreed upon between the bank and its client.

Article 34: The export of the following goods is exempt from the subscription of the model declaration "EB" provided for in Article 23. These are: a) samples of no commercial value; b) luggage and personal effects; c) newspapers, periodicals, and magazines intended for personal use within the framework of a subscription; d) objects deemed to have no commercial value; e) goods whose value is less than or equal to USD 2,500 (two thousand five hundred US dollars) or its equivalent in other foreign currencies, to be carried out solely within the framework of frontier trade.

Article 35: Paragraph 1: The supply of goods for provisioning on board aircraft, ships, and other non-resident means of transport, making a stop in the Democratic Republic of Congo, must be subject to the subscription of the model declaration "EB of regularization". The proceeds from these supplies must be repatriated within a period of thirty (30) calendar days from the date of validation.

Paragraph 2: The model declaration "EB" of regularization must be subscribed within five (5) working days from the date of supply. Upon subscription, the exporter must present the final invoice and the OCC batch report ready for export.

Article 36: The export of certain goods is subject to the prior agreement of the Competent Public Authority, namely: a) banknotes; b) coins; c) commemorative pieces; d) products not listed on global markets; e) equipment goods in all their forms subject to relocation in favor of a foreign country; f) weapons, ammunition, and other military effects; g) species of fauna and flora threatened with extinction; h) samples.

Article 37: Paragraph 1: Residents are authorized to send temporarily, consigned packaging, objects deemed to have no commercial value, goods abroad for the purpose of passive processing (repair, verification, maintenance, transformation), rental, exhibition, or contract work, subject to subscription of a temporary model declaration "EB".

Paragraph 2: According to the cases listed below, the temporary model declaration "EB" must be supported by: a) case of rental and contract work:

• the batch report ready for export issued by the OCC, specifying the state and current value of the good;
• the rental or work contract specifying the rents to be paid;
• other documents justifying the temporary export. b) case of repair, verification, and maintenance:
• the batch report ready for export issued by the OCC, specifying the state and current value of the good;
• the repair or maintenance contract specifying the fees to be paid;
• other documents justifying the temporary export. c) case of contract work:
• the batch report ready for export;
• the passive processing contract specifying the fees to be paid;
• other documents justifying the temporary export. The passive processing statement established by the refiner must mention:
• the nature and quantity of raw material received;
• the nature and quantity of refined products (main products and by-products), extracted from the raw material;
• the various refining fees. The value of the products and by-products resulting from the refining of the raw material must be repatriated. The exporter submits a copy of these documents to the authorized intervening bank. d) case of consigned packaging:
• the batch report ready for export specifying the state and current value of the consigned packaging;
• the model "EB" export declaration of goods to which the consigned packaging relates;
• the guarantee of restitution. e) case of exhibition:
• the batch report ready for export or the export verification certificate, specifying the state and current value of the good;
• the exhibition contract specifying the conditions determining the place, duration, and reason for sending;
• other documents justifying the temporary export. f) case of objects deemed to have no commercial value:
• the inspection report specifying the state of the object;
• the contract and/or pro forma invoice of the new object to be manufactured;
• other documents justifying the temporary export.

Paragraph 3: Temporary exports are covered by a bank guarantee established by the exporter or a guarantee act of his banker of a value at least equal to that of the good as certified by the OCC. The original of the guarantee act or letter of guarantee must be transmitted to the BCC, at the latest ten (10) days after its establishment. The depositor is exempt from the payment of consignation and custody fees for securities.

Paragraph 4: The reimportation of goods is carried out under the cover of the model declaration "EB-temporary" validated for temporary export. The guarantee or bank guarantee must be lifted at its maturity or upon the full return of the temporarily exported goods, by the BCC, at the request of the authorized intervening bank. The request must be accompanied by proof of the return of the entirety of the goods issued under the cover of the OCC Import Verification Certificate (CVI) or Verification Attestation of its mandatee.

Paragraph 5: The payment of services relating to temporarily exported goods is carried out in accordance with the provisions of Chapter III of this Regulation relating to provisions applicable to services.

Paragraph 6: In the absence of reimportation within the fixed deadline, the Central Bank reserves the right to:

1. collect the Foreign Exchange Monitoring Fee by debiting automatically the account of the economic operator or the intervening bank as the case may be, without prejudice to the sanctions provided for by this Regulation;
2. require the regularization of this situation by the economic operator.

Article 38: Paragraph 1: The resident must solicit, as the case may be, the cancellation or modification of the temporary model declaration "EB" for the export of goods or subscribe to a model declaration "EB" of regularization with his banker when reimportation has not taken place due to: a) the planned export not having been carried out; b) the exported good having been sold abroad; c) the good being deemed deteriorated or downgraded.

Paragraph 2: This request must be accompanied: a) for goods not exported, by the Non-Export Certificate of the OCC depending on whether the good is still in the country. This Certificate will allow the cancellation of the temporary model declaration "EB" for the export of goods; b) for goods sold abroad, by an attestation relating to the selling value of the goods concerned issued by the OCC mandatee abroad, the final invoice, the Declaration for Final Export of the DGDA, and the model "EB" of regularization replacing the temporary model "EB"; c) for goods deemed deteriorated and downgraded, by an attestation from the OCC mandatee abroad certifying that the goods are indeed deteriorated and downgraded to close the temporary model declaration "EB" for the export of goods.

Article 39: Paragraph 1: Exports may be subject to pre-financing from abroad.

Paragraph 2: The amount of pre-financing is received based on a model declaration RC to which a copy of the contract relating to it and any other supporting document is obligatorily attached.

Paragraph 3: The contract in question above is to be concluded between the non-resident lender and the resident exporter. It must clearly indicate the following conditions: a) the amount of the operation; b) the interest rate to be applied; c) the duration of the loan; d) the modalities and conditions of repayment.

Paragraph 4: The payment of interest on the financing cannot take place before the exit of the goods. The interest rate must be consistent with those applied on major international financial centers for the same conditions and durations. Interest on the financing is due only on the amount actually received by the authorized intervening bank. The duration of the pre-financing accompanied by interest cannot exceed six (6) months from the date of cession of funds by the foreign creditor, except for any financing granted without interest, the duration of which is twelve (12) months. The repayment of the principal and the payment of any interest must be made using the proceeds from the export of the pre-financed goods and are to be deducted from them upon repatriation. The Central Bank reserves the right to verify a posteriori the respect of these conditions in the authorized intervening banks. The repayment of the pre-financing and the payment of any interest relating thereto are carried out based on model declarations "EB" including the number of the model declaration "RC" relating to it.

Paragraph 5: The positive difference between the total proceeds of pre-financed exports and the amount of pre-financing must be repatriated in accordance with the provisions of Article 32. In this case, the "declaration sub-type" code to be used remains that of an export with pre-financing.

Article 40: Paragraph 1: With specific authorization from the competent authority, Exports Without Repatriation of Foreign Exchange are authorized under cover of a model declaration "EB" for the export of goods to be subscribed with an authorized bank. The intervening bank will ensure that the mention "Without Repatriation of Foreign Exchange" is inscribed in the "payment modality" field.

Paragraph 2: Exports Without Repatriation of Foreign Exchange intercepted without subscription of a model declaration "EB" for the export of goods must be subject to regularization before final exit.

Paragraph 3: For the proper conclusion of an export under the regime of Without Repatriation of Foreign Exchange, the subscriber is required to submit to the intervening bank the supporting documents within a period of ten (10) working days after customs clearance and before the expiry date of the exchange document.

SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO THE IMPORT OF GOODS

Article 41: Paragraph 1: Unless otherwise provided by this Foreign Exchange Regulation, a model declaration "IB" duly validated by an authorized bank constitutes the intention to import and, in case of import, the intervening bank is authorized to make the payment in favor of the foreign supplier.

Paragraph 2: Any other request for extension must be submitted to the authorization of the Central Bank.

Paragraph 3: The Central Bank may also grant, if the commercial contract justifies it, a derogation to adapt the validity period of the model declaration "IB" to that of the commercial contract. This is however a particular authorization granted in specific cases.

Article 42: The authorized intervening bank pays the foreign supplier based on the Declaration to which are annexed the contracts and/or invoices, the Verification Attestation of the Office Congolais de Contrôle or its authorized mandatee, the proof of customs clearance by the General Directorate of Customs and Excise, and other supporting documents. The authorized intervening bank must keep the proof of customs clearance for possible control purposes without obligation to transmit it to the Central Bank.

Article 43: Paragraph 1: The intervening bank may also proceed to partial or full payment in favor of the foreign supplier before shipment, at shipment, and/or upon arrival, on the condition of presentation by the importer, upon validation of the model declaration "IB", of the following supporting documents: a) the commercial contract and/or pro forma invoice accompanied by such a requirement; b) the letter by which the importer undertakes to present the following documents: the final invoice, the Verification Attestation, the transport document, the proof of customs clearance, as well as any other document required in international trade, within the period of:

• ninety (90) calendar days for payments before shipment;
• forty-five (45) calendar days for payments at shipment;
• fifteen (15) calendar days for payments upon arrival.

Paragraph 2: The intervening bank keeps the originals of the documents referred to in point b of paragraph 1 of this article for subsequent control by the Central Bank. However, copies of said documents are transmitted on the first working day of each month, to the Central Bank/Direction having the supervision of foreign exchange operations within its purview, under cover of a transmission statement titled "Statement of transmission of the advance payment statement" including the number of each validated declaration and the references of the supporting documents.

Paragraph 3: The intervening bank is required to request, within five (5) working days after the expiration of the deadline provided for in Article 43, these documents from the importer.

Paragraph 4: The intervening bank is required to denounce the offender to the Central Bank, within a period of five (5) working days from the request, in the event of failure to present said documents by the importer.

Paragraph 5: When, after payment of the deposit or advance payment, the subscriber cancels the import, he is required to get reimbursed by his supplier and to repatriate the entirety of the sums paid within thirty (30) calendar days from the date of cancellation.

Article 44 Paragraph 1: The intervening bank may proceed to partial or full payment of a good before its manufacture, on the condition of presentation by the importer, upon validation of the model declaration "IB", of the following supporting documents: a) the commercial contract and/or pro-forma invoice accompanied by such a requirement; b) the letter by which the importer undertakes to present within the required deadlines: the final invoice, the Verification Attestation, the transport documents, the proof

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 36 customs consumption clearance as well as any other document required in international trade; c) the guarantee of restitution of the amount of the transaction issued by the supplier's bank. Paragraph 2: The advance payment must correspond to the amount stated on the guarantee of restitution. This amount will be reduced proportionally to the value of deliveries made. Paragraph 3: The presentation of the documents referred to in paragraph b of paragraph 1 of this article must be carried out within the time limit stipulated in the commercial contract. Paragraph 4: The intervening bank keeps the originals of the documents referred to in points b and c of paragraph 1 of this article for subsequent control by the Central Bank. However, copies of said documents are transmitted on the first working day of each month, to the Central Bank/Department responsible for monitoring foreign exchange operations within its remit, supported by a transmission statement titled "Transmission Sheet of the Statement of Advance Payments" listing the number of each validated Declaration and the references of the supporting documents. Paragraph 5: The intervening bank is required to request these documents from the importer, within five (5) working days after the expiration of the time limit as stipulated in the commercial contract. It is required to denounce the offender to the Central Bank, within a period of five (5) working days from the date of the request, in case of failure by the importer to present said documents. Article 45: Paragraph 1: Imports "Without Purchase of Foreign Currency" are authorized subject to the subscription of an Import Declaration of Goods form "IB". The banks will ensure that the mention "Without Purchase of Foreign Currency" is inscribed in the field "payment terms". Paragraph 2: Said Declaration must be supported by the evidence required under Article 25 letter b of this Foreign Exchange Regulation and the Import Verification Certificate from the OCC. Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 37 Paragraph 3: To ensure the proper completion of an import under the "Without Purchase of Foreign Currency" regime, the subscriber is required to submit to the intervening bank, within ten (10) working days after customs clearance and before the final validity date of the foreign exchange document, the following evidence:

• the final invoice and/or the commercial contract;
• The Verification Attestation or the Notice of Refusal of Attestation from the OCC representative or the Import Verification Certificate from the OCC. Article 46: Imports of the goods listed below are exempted from the provisions of Article 26 provided they are not intended for resale. These are: a) items deemed to have no commercial value or serving as models; b) newspapers, periodicals and magazines intended for personal use within the framework of a subscription; c) luggage and personal effects; d) articles whose total value, including transport and insurance costs, does not exceed USD 2,500,- (two thousand five hundred US dollars) per shipment, splitting being prohibited; e) items deemed to have no commercial value or serving as models. Article 47: The supply of supply goods on board aircraft, ships and other means of transport residents, making stops in foreign countries, must be subject to the subscription of the declaration for importation of goods form "IB" regularization based on the final invoice established. In this case, the verification attestation and the customs consumption declaration are not required. Article 48: Import operations for certain products require the prior agreement of the Competent Public Authority. These include notably: a) coins; b) commemorative pieces; c) second-hand equipment intended for investment; Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 38 d) weapons and ammunition as well as military effects and materials; e) explosives; f) substances that deplete the ozone layer and materials using these substances; g) pharmaceutical products. Article 49: Paragraph 1: Residents are authorized to receive temporarily, goods intended to be used on national territory for active processing (verification, repair, maintenance, rental, subcontracting), exhibition, consigned packaging, or contract work subject to the subscription of a temporary "IB" model declaration with an approved bank or the representation of the Central Bank. Paragraph 2: According to the cases enumerated below, the temporary "IB" model declaration is supported by: a) case of rental and contract work:

• the inspection certificate from the OCC or its representative, specifying the condition and current value of the good;
• the rental contract specifying the rents to be paid;
• other documents justifying temporary importation. b) case of repair, verification and maintenance:
• the inspection certificate from the OCC or its representative, specifying the condition and current value of the good;
• the repair or maintenance contract specifying the fees to be paid;
• other documents justifying temporary importation. c) case of subcontracting:
• The Verification Attestation from the OCC representative;
• the processing contract specifying the fees to be paid;
• other documents justifying temporary importation. d) case of consigned packaging:
• The Verification Attestation specifying the condition and current value of the consigned packaging; Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 39

• the import declaration of goods form "IB" to which the consigned packaging relates;
• proof of payment of the guarantee. e) case of exhibition:
• the inspection certificate from the OCC or its representative, specifying the condition and current value of the good;
• the exhibition contract specifying the conditions determining the location, duration and reason for sending;
• other documents justifying temporary importation. Paragraph 3: The payment of services related to temporarily imported goods is carried out in accordance with the provisions of Chapter III of this Regulation relating to provisions applicable to services. Paragraph 4: The re-exportation of goods is carried out under cover of the temporary "IB" model declaration to which will be attached the documents required for this purpose by the DGDA and the OCC. The economic operator must present to the intervening bank proof of the definitive exit of said goods, the re-exportation declaration form "EX3". Paragraph 5: The temporary "IB" model declaration must bear the mention "NONE" in the box reserved for payment terms, no payment being planned. Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 40 Chapter III: OF SERVICES SECTION 1: COMMON PROVISIONS APPLICABLE TO SERVICES Article 50: Any operation of export or import of services requires the prior subscription, with an approved bank, of an "ES" model declaration for exports of services and "IS" model for imports of services, regardless of the amount. The "ES" model has a validity of ninety (90) calendar days from validation. This validity is three hundred sixty (360) calendar days for the "IS" model. Article 51: Paragraph 1: At the time of their subscription, Declarations models "ES" and "IS" must be accompanied by the following documents: a) for exports: the commercial contract and/or the final invoice or any other supporting document. b) for imports: the commercial contract and/or the pro forma invoice or any other supporting document. Paragraph 2: The intervening banks are required to communicate to the Central Bank all supporting documents in accordance with Article 8 paragraph 2 of this Foreign Exchange Regulation. Paragraph 3: Approved banks and any other agent of the Central Bank are authorized to validate the "ES" and "IS" model declarations in accordance with these provisions. Article 52: The services concerned by these provisions are those received from non-residents by residents or provided by residents to non-residents based on a commercial contract or any other document acting as a contract. These include notably: a) manufacturing production services; Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 41 b) maintenance and repair services not included elsewhere; c) transport; d) travel; e) buildings and public works; f) insurance and pension fund services; g) financial services; h) remuneration for use of intellectual property not included elsewhere; i) telecommunications, computer and information services, e-commerce; j) other business services (research and development services, professional and management consulting services, technical services, trade-related services and other services provided to businesses); k) personal, cultural and leisure services; l) public administration services not included elsewhere. Article 53: Paragraph 1: A duly validated "ES" model Declaration constitutes an intention to export and, in case of export, the intervening bank is obliged to receive payments of invoiced amounts. Paragraph 2: Unless otherwise provided by this Foreign Exchange Regulation, a duly validated "IS" model Declaration constitutes an intention to import and, in case of import, the intervening bank is authorized to make payments of invoiced amounts. Article 54: For any payment of import or export of services, the approved intervening bank has three (3) working days to establish a declaration of expenses or receipts in foreign currencies. Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 42 SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO EXPORTS OF SERVICES Article 55: Paragraph 1: The payment of services provided by the exporter to the non-resident beneficiary is carried out obligatorily based on the "ES" model declaration to which are joined the service contract, the invoice and/or any other supporting document as the case may be. The exporter is required to repatriate the amount received in payment through the channel of the intervening bank. Paragraph 2: Services provided without prior subscription of the declaration for export of services must be regularized in conformity with the provisions of Article 50 above, within fifteen (15) days from their realization. Article 56: Paragraph 1: The repatriation of export proceeds from services must take place at the latest thirty (30) calendar days from the provision of services. The approved intervening bank is required to ensure compliance with this provision. Paragraph 2: In case of regularization, the payment must be declared 15 (fifteen) calendar days from its realization. Paragraph 3: Service exporters are not required to pass on their export proceeds to banks or to the Central Bank. In case of assignment, the conditions and methods are to be agreed upon between the bank and the client. Paragraph 4: The approved bank is required to credit the foreign currency account of the economic operator within 48 hours after receipt of funds. Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 43 Paragraph 5: The payment of services related to material sent abroad within the framework of a rental contract must be subject to the subscription of an "ES" Model Declaration which must include in the box reserved for payment terms the number of the temporary "EB" Model Declaration having covered the export. SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO IMPORTS OF SERVICES Article 57: Paragraph 1: The payment of services received, by the importer, from a non-resident supplier is carried out obligatorily based on the "IS" Model Declaration to which are joined the service contract, the invoice and/or any other supporting document as the case may be. The importer is required to make the payment of the invoiced amount through the channel of an intervening bank. Paragraph 2: Services received without prior subscription of the declaration for import of services must be regularized in conformity with the provisions of Article 50 above, within fifteen (15) calendar days from their realization. Article 58: The payment of service imports is realized using the importer's own resources or foreign currencies acquired from an approved intermediary. Article 59: The payment of services related to repairs of equipment or other equipment that has been the subject of temporary export for transformation or verification operates based on the "IS" Model Declaration to which, it is necessary to attach all required supporting documents. Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 44 Chapter IV: OF INCOMES, CAPITALS AND FINANCIAL OPERATIONS SECTION 1: COMMON PROVISIONS APPLICABLE TO INCOMES, CAPITALS AND FINANCIAL OPERATIONS Article 60: Paragraph 1: Residents are authorized to send or receive funds in respect of primary and secondary incomes, capitals and financial operations. The funds to be sent or received in respect of primary and secondary incomes, capitals and financial operations must originate from transactions having a lawful economic origin. Paragraph 2: Any resident wishing to carry out an operation in respect of primary and secondary incomes, capitals and financial operations is required to domicile it with an approved bank or financial messenger. Paragraph 3: Revenues resulting from financial operations must be declared to the Central Bank via the intervening bank within a period of thirty (30) days from their realization. Paragraph 4: Revenues resulting from investment operations must be repatriated within a period of thirty (30) calendar days, unless the resident is authorized by the Central Bank to reinvest them. Paragraph 5: The intervening bank is required to ensure the monitoring of the Revenue Declaration generated as well as its repatriation and/or, if applicable, the product of its reinvestment. Article 61: Paragraph 1: Any operation of sending or receiving primary incomes or secondary incomes and capitals of a value equal to or greater than USD 10,000,- (ten thousand US dollars), or its equivalent in other foreign currencies, requires the prior subscription of an "RC" Model Declaration with an approved bank. Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 45 These primary, secondary incomes and capitals can be sent by debit or received by credit of a foreign currency account of the resident with the national banking system. Paragraph 2: For financial operations, the subscription of an "RC" Model Declaration is prior, regardless of the amount, with an approved bank. Article 62: Primary incomes are considered as defined in the IMF Balance of Payments Manual, notably: a) remuneration of employees; b) investment incomes notably interest, distributed income of companies, reinvested earnings of foreign direct investments, investment incomes attributed to holders of investment fund shares, investment incomes attributed to insured persons, pension fund beneficiaries and standard guarantee scheme beneficiaries; c) other primary incomes notably tax on production and imports, subsidies and rents. Article 63: Secondary incomes are considered as defined in the IMF Balance of Payments Manual, notably: a) current taxes on income and wealth; b) social contributions; c) social benefits; d) net premiums of property damage insurance; e) property damage insurance indemnities; f) current international cooperation; g) personal transfers; h) adjustments made in case of variation of pension rights; i) other current transfers. Article 64: Capitals are considered as defined in the IMF Balance of Payments Manual, notably: a) non-financial assets not produced; Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 46 b) capital transfers (debt forgiveness, capital taxes, investment aid). Article 65: Financial operations are considered as defined in the IMF Balance of Payments Manual, notably: a) direct investments (direct investments by investors, reverse investments, intra-company investments); b) portfolio investments (shares, investment fund shares, debt securities); c) financial derivative products (interest rate risk, exchange rate risk, price variation risk of property titles and raw materials, credit risk, etc.); d) other investments (other participations, cash and deposits, loans, rights on insurance technical reserves, on pension funds and on standard guarantee reserves, commercial credits and advances, other accounts receivable/payable). Article 66: Paragraph 1: The subscription of an "RC" Model Declaration requires the presentation of any supporting document. Paragraph 2: The intervening bank is required to communicate all supporting documents in accordance with Article 8 paragraph 2 of this Foreign Exchange Regulation. Paragraph 3: The intervening bank or any other agent approved for this purpose is authorized to validate the "RC" Model Declaration in accordance with these provisions. Article 67: For any payment to be made or received in respect of primary and secondary incomes, capitals and financial operations, the intervening bank is required to establish a Declaration of expenses or receipts in foreign currencies within three (3) working days from its execution. Article 68: Any bank that has received funds in respect of primary and secondary incomes, capitals and financial operations for the account of its unavailable client, Journal Official - Legal Data Bank - 2014

Journal Officiel - Special Issue – March 28, 2014 Central Bank of Congo 47 must subscribe an "RC" Model Declaration of regularization based on correspondent messages and credit advices. SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO INCOMES Article 69: The remuneration of employees provided in kind by diplomatic missions and non-resident enterprises to resident employees is carried out subject to the subscription of an "RC" Model Declaration by the employer, to which is joined the final invoice. SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO CAPITALS Article 70: Paragraph 1: The investment aid in kind to be received by a resident or to be sent to a non-resident is covered for its value by an "RC" Model Declaration. Paragraph 2: The good to be imported or exported in respect of investment aid requires the subscription of the "IB" or "EB" Model Declaration repeating the number of the "RC" Model Declaration subscribed in accordance with the previous paragraph. SECTION 4: SPECIFIC PROVISIONS APPLICABLE TO FINANCIAL OPERATIONS Article 71: Banks are required to verify the conformity of the terms of commitments before executing transactions related to financial operations. To this end, they must require the following supporting documents: a) the table detailing the nominal participations in the capital of the enterprise benefiting from the direct investment; b) the dispatch of the statutes of the company or the decision of the increase in capital; Journal Official - Legal Data Bank - 2014

Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 48 c) the balance sheet, income statement and reports of the statutory auditors for the last three years, for existing companies; d) the projected balance sheet and income statement for new companies; e) the loan, borrowing, pre-financing, commercial credit or other contract.

Article 72: Paragraph 1: For any external borrowing, the repayment of the principal as well as the payment of interest are carried out freely upon subscription of the Model Declaration RC. Paragraph 2: The Central Bank may grant an exemption, if the relevant contract justifies it, to adapt the validity period of the Model Declaration "RC" to that of the contract.

Chapter V: PROVISIONS APPLICABLE TO HOLDERS OF MINING RIGHTS AND OIL COMPANIES SECTION 1: SPECIFIC PROVISIONS APPLICABLE TO HOLDERS OF MINING RIGHTS

Article 73: Paragraph 1: The holder of mining rights is authorized to freely import goods under investments and capital contributions necessary for its activities. He is also authorized to export his production on the market of his choice, in accordance with mining legislation. Paragraph 2: To carry out his import and export operations of goods, the holder of mining rights is authorized to subscribe, based on forecasts, the Model Declarations "IB" and/or "EB" global form with the approved banks of his choice, provided that:

• the imported goods come from the same supplier and are of the same nature and origin;
• the exported goods are of the same nature and destined for the same foreign buyer.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 49 Paragraph 3: The subscription of these Declarations is carried out based on:

• annual forecasts of imports for the Model Declaration "IB" global form;
• quarterly forecasts of exports for the Model Declaration "EB" global form. Paragraph 4: The Model Declarations "EB" and "IB" global form must indicate in the box reserved for the customs tariff, the chapter relating to the tariff positions of the goods to be exported or imported. In case of export or import of several goods belonging to different chapters, the exporter or importer is required to subscribe a Model Declaration "EB" and "IB" global form per chapter. The fields reserved for the countries of origin and provenance of the goods and those reserved for the name and address of the supplier must be filled in upon subscription. Paragraph 5: The validity of the Model Declaration "IB" global form is three hundred sixty (360) calendar days, while that of the Model Declaration "EB" global form is ninety (90) calendar days. Paragraph 6: However, before any validation of a Declaration for export of mineral products subscribed by a holder of mining rights, the intervening bank is required to ensure with the Central Bank that the subscriber complies with the requirements.

Article 74: The settlement of import and export services operations as well as those related to the transfer of revenues, capital and financial operations, requires the prior subscription of Model Declarations "IS" for service imports, model "ES" for service exports and model "RC" for transfers of revenues, capital and financial operations.

Article 75: Paragraph 1: Any holder of mining rights is authorized to hold accounts abroad opened at banks of international reputation, including:

• an account called "principal account" for the management of funds which he is authorized to hold outside the national territory;

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• other accounts where he manages or has managed the funds transferred from his principal account for the servicing of foreign debt, as well as for legal, statutory and free provisions and reserves. Paragraph 2: The holder of mining rights is also authorized to hold one or more accounts in foreign currencies with the national banking system. Paragraph 3: The holder of mining rights is obliged to communicate to the Central Bank the coordinates of the accounts opened in accordance with paragraphs 1 and 2 of this article.

Article 76: Paragraph 1: The Principal Account is credited with export receipts, pre-financing received and any other financing to be received under any title whatsoever. Paragraph 2: Export receipts of mineral products must be received in this principal account abroad within forty-five (45) calendar days, starting from the exit of the goods from the national territory for an African country and from boarding from an African country, unless the sales contract contains special provisions concerning the payment deadline. Paragraph 3: The holder of mining rights is authorized to keep 60% of export receipts in this principal account. Paragraph 4: Only the holder of mining rights who has communicated the banking coordinates and who regularly transmits to the Central Bank the report of his activities recorded in the principal account, as stipulated in paragraph 1 of Article 79 below, can keep a portion of export receipts or pre-financing abroad.

Article 77: Paragraph 1: The quota of 40% of export receipts to be repatriated obligatorily must be cashed in an account opened with the Intervening Bank, within 15 days from the cashing of funds in the principal account abroad.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 51 Paragraph 2: This repatriated quota is intended to cover domestic expenses in favor of residents and cannot be used to finance imports or any other international payment. Paragraph 3: Accounts opened with the national banking system are also credited with pre-financing, various resources and commitments related to the exploitation of the company.

Article 78: Paragraph 1: The holder of mining rights is required to pay to the Central Bank or to any person mandated by the latter a Foreign Exchange Monitoring Fee of 2‰ on the total (100%) amount of any export carried out. Paragraph 2: This fee is calculated on the total export receipts and is deducted from the repatriated quota. Paragraph 3: The holder of mining rights is also required to pay to the Central Bank or to any person mandated by the latter a Foreign Exchange Monitoring Fee of 2‰ on:

• any payment made to or from abroad through an approved bank;
• any export of goods without repatriation;
• any import of goods without purchase of foreign exchange;
• any debit or credit movement carried out on his principal account abroad.

Article 79: Paragraph 1: By the fifteenth (15th) day of the month at the latest, any holder of mining rights is required to transmit to the Central Bank a Declaration covering the fund movements carried out during the previous month in his principal account abroad as well as the corresponding bank statement.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 52 Paragraph 2: The Central Bank reserves the right to verify the regularity of the operations recorded on the principal account abroad of the holder of mining rights after having previously informed him in writing. To do this, the holder of mining rights is obliged, within thirty (30) days from receipt of this correspondence, to acknowledge receipt and transmit to the Central Bank the legalized copy of the letter addressed to his banker authorizing the verification of operations carried out on his principal account.

SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO EXPLORATION-PRODUCTION OIL COMPANIES

Article 80: The exploration-production oil company is authorized to freely export all of its production, upon prior subscription with an approved bank, of a Model Declaration "EB".

Article 81: The unit price on the basis of which the value of Model Declarations "EB" must be established must correspond to that included in the sales contract concluded by the company, supporting documents must be attached, the OCC report being authoritative.

Article 82: Paragraph 1: Any import carried out by an exploration-production oil company requires the prior subscription with an approved bank, of an Import Declaration model "IB". Paragraph 2: Any exploration-production oil company wishing to import is authorized to subscribe, based on annual forecasts, Model Declarations "IB" global form with an approved bank of its choice, provided that the imported goods come from the same supplier and are of the same nature and origin. Paragraph 3: Model Declarations "IB" global form are established based on an annual forecast and are to be signed as imports are carried out.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 53 Article 83: The settlement of import and export services operations as well as those related to the transfer of revenues, capital and financial operations, requires the prior subscription of Model Declarations "IS" for service imports, model "ES" for service exports and model "RC" for transfers of revenues, capital and financial operations.

Article 84: Paragraph 1: Any exploration-production oil company is authorized to hold an account abroad opened at a bank of international reputation for the management of funds which it is authorized to hold outside the national territory. Paragraph 2: The exploration-production oil company is also authorized to hold one or more accounts in foreign currencies with the national banking system for the management of the repatriated quota deemed necessary for operational needs. Paragraph 3: The exploration-production oil company is obliged to communicate to the Central Bank the coordinates of the account opened in accordance with paragraphs 1 and 2 of this article.

Article 85: Paragraph 1: The Principal Account is credited with export receipts, pre-financing received and any other financing to be received under any title whatsoever. Paragraph 2: Export receipts of petroleum products must be received in this principal account abroad within forty-five (45) calendar days, starting from the exit of the goods from the national territory for an African country and from boarding from an African country, unless the sales contract contains special provisions concerning the payment deadline. Paragraph 3: The quota of export receipts to be repatriated obligatorily must be cashed in an account opened with the Intervening Bank, within 15 days from the cashing of funds in the principal account abroad.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 54 Article 86: Paragraph 1: By the fifteenth (15th) day of the month at the latest, any exploration-production oil company is required to transmit to the Central Bank a Declaration covering the fund movements carried out during the previous month in its principal account abroad as well as the corresponding bank statement. Paragraph 2: The Central Bank reserves the right to verify the regularity of the operations recorded on the principal account abroad of the exploration-production oil company after having previously informed it in writing. To do this, the exploration-production oil company is obliged, within thirty (30) days from receipt of this correspondence, to acknowledge receipt and transmit to the Central Bank the legalized copy of the letter addressed to its banker authorizing the verification of operations carried out on its principal account.

Article 87: Exploration-production oil companies are required to pay to the Central Bank or to any person mandated by the latter, a Foreign Exchange Monitoring Fee of 2‰ on any payment to or from abroad, any export without repatriation as well as any import without purchase of foreign exchange.

SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO OIL DISTRIBUTION COMPANIES

Article 88: Paragraph 1: Any fuel import operation requires the prior subscription of a Model Declaration "IB". Paragraph 2: The intervening bank may pay before loading or at loading for fuel imports based on:

• the commercial contract and/or pro-forma invoice accompanied by such a requirement;
• a letter by which the importer undertakes to present the following documents: the final invoice, the Verification Certificate, the transport document, the proof of customs clearance "E" as well as any other document required in international trade, and this within the deadline of: (i) one hundred (100) calendar days for payments before loading; (ii) sixty (60) calendar days for payments at loading; (iii) thirty (30) calendar days for payments upon arrival.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 55 Article 89: Regarding consignation imports, the intervening bank is authorized to pay for fuel based on:

• the provisional invoice or sales contract;
• the letter of commitment by which the importer undertakes to present the following documents: the final invoice, the verification certificate, the transport document, the proof of customs clearance "IM7" as well as any other document required in international trade.

Article 90: The intervening bank, being jointly liable with its importing client, must ensure the successful completion of the operation by demanding, as appropriate, one of the proofs of customs clearance below and other supporting documents, namely:

• Warehouse Declaration model "IM7";
• Final Import Declaration model "IM4";
• Transit Declaration model "IM8";
• Exemption Import Declaration model "IE";
• Conditional Import Declaration model "IC".

Article 91: Paragraph 1: The intervening bank transmits to the Central Bank/Direction responsible for monitoring foreign exchange operations, the documents referred to in Article 85 paragraph 2 above within a period of seven (7) working days from the receipt of said documents. Paragraph 2: The intervening bank is required to request, within five (5) working days after expiration of the period provided for in Article 85 paragraph 2, these documents from the importer. It is required to denounce the offender to the Central Bank, within a period of five (5) working days from the claim, in case of failure to present said documents by the importer.

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 56 Chapter VI: THE FOREIGN EXCHANGE MARKET

Article 92: There exists a foreign exchange market called "Foreign Exchange Market in the Democratic Republic of Congo".

Article 93: A particular Convention, signed between the Central Bank and the participants, determines the conditions of access, organization and functioning of this market.

Article 94: The exchange rates published by the Central Bank serve as reference rates.

Chapter VII: ACCOUNTS DENOMINATED IN FOREIGN CURRENCIES AND NON-RESIDENT ACCOUNTS IN NATIONAL CURRENCIES

Article 95: Paragraph 1: Approved banks are authorized to open accounts in foreign currencies for residents (RME) and non-residents (NRME) without prior authorization from the Central Bank. Paragraph 2: The Central Bank prohibits itself from automatically buying back the foreign exchange lodged in RME and NRME accounts. Paragraph 3: Approved banks can also under the same conditions open accounts in national currency for non-residents (NRMN). Paragraph 4: These accounts can: a) be held on demand or at term; b) be remunerated; c) be credited or debited freely;

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 57 d) record domestic transfers between RME and NRME accounts, which do not require the subscription of exchange documents. Paragraph 5: As for initiated international transfers, the order giver or the beneficiary must comply, as appropriate, with the provisions of this regulation relating to them.

Article 96: Approved banks will ensure that their foreign currency commitments resulting from deposits in RME and NRME accounts have sufficient coverage to guarantee on-demand payments in favor of the holders of said accounts.

Chapter VIII: APPROVED INTERMEDIARIES SECTION 1: COMMON PROVISIONS APPLICABLE TO APPROVED INTERMEDIARIES

Article 97: There are two categories of approved intermediaries, namely: a) approved banking intermediaries (approved banks); b) approved non-banking intermediaries which include financial institutions, savings and credit cooperatives, microfinance institutions, exchange offices, financial messengers and electronic money establishments.

Article 98: Paragraph 1: The status of approved intermediary must be requested in writing to the Central Bank. Paragraph 2: The status of approved intermediary is granted by an approval act signed by the Governor of the Central Bank. It may be withdrawn by decision of the Central Bank when the beneficiary does not comply with legal requirements.

Article 96: Approved intermediaries are required to:

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Journal officiel - Numéro spécial – 28 mars 2014 Banque Centrale du Congo 58 a) comply with the regulations, provisions and prescriptions of the Central Bank; b) ensure compliance with the regulations, provisions and prescriptions of the Central Bank and report to it any irregularity they detect; c) observe the instructions and directives of the Central Bank regarding the registration of exchange operations and the establishment of various exchange situations; d) provide the Central Bank with all justifications it requests concerning operations subject to its control; e) transmit to the Central Bank any statistical and accounting information requested by it; f) collect and pay to the Central Bank any duty, fee or other amount due under this Regulation.

SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO APPROVED BANKING INTERMEDIARIES

Article 99: In accordance with this Foreign Exchange Regulation, approved banks, in execution of banking transactions for their clients' account or their own account, are authorized notably to: a) open accounts with correspondents abroad; b) negotiate and obtain confirmation lines; c) constitute provisions in foreign currencies to cover their commitments; d) make and receive external payments; e) place external assets held with correspondents under the best conditions and repatriate the proceeds from these placements; f) buy and sell foreign exchange.

Sub-Section 2.1.: On the Import and Export of Banknotes

Article 100: Banks are authorized to export and import banknotes denominated in foreign currencies upon prior authorization from the Central Bank.

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Article 101:

Paragraph 1: The sending abroad of banknotes denominated in foreign currencies by authorized banks forming part of their foreign exchange positions is carried out with prior authorization from the Central Bank.

Paragraph 2: The concerned bank is required to request in writing from the Central Bank/Direction responsible for monitoring foreign exchange operations within its purview, an export authorization specifying the amounts to be exported by currency, the details of the packaging, as well as the name and address of the foreign correspondent recipient. This authorization, which has a validity of seven (7) working days from the date of issuance and whose export amount cannot be split, is granted within two (2) working days after receipt of the request.

Paragraph 3: Any export operation requires the involvement of the Central Bank/Directions responsible for monitoring foreign exchange operations and managing cash and banknotes within their purview for the preparation of the package, sealing of the packaging, escorting of funds to the exit border post, as well as handing over the packages to the carrier against acknowledgment of receipt on the LTA or any other supporting document serving as proof.

Paragraph 4: Upon exit of funds from the national territory, the bearer or the mandated carrier must have, in addition to the original of the authorization issued by the Central Bank, an attestation duly signed by the managers of the authorized bank mentioning the references of international transport titles such as travel title, LTA, Bill of Lading (BL), CDA or any other document notably including:

• the name of the bearer or carrier;
• the detail of the packaging;
• the date of travel or transport;
• the recipient.

Paragraph 5: The exporting authorized bank is required to transmit to the Central Bank/Direction responsible for monitoring foreign exchange operations, within seven (7) working days, from the date of export, the acknowledgment of receipt as well as proof of credit in account with the correspondent, equivalent to the exported amount.

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Paragraph 6: The Central Bank reserves the right to cash in banknotes in foreign currencies against transfer to the correspondent of the selling authorized bank, at value date.

Article 102:

Paragraph 1: The importation of banknotes denominated in foreign currencies by the concerned authorized banks is carried out with a written authorization from the Central Bank. The concerned bank is required to request in writing from the Central Bank /Direction responsible for monitoring foreign exchange operations within its purview, an import authorization specifying the amounts to be imported by currency, the details of the packaging, as well as the name and address of the foreign supplier. This authorization, which has a validity of seven (7) working days from the date of issuance and whose import amount cannot be split, is granted within two (2) working days after receipt of the request. The currencies thus imported must form part of their foreign exchange positions.

Paragraph 2: Upon entry of funds into the national territory, the bearer or the mandated carrier must have, in addition to the original of the authorization issued by the Central Bank, an attestation duly signed by the managers of the authorized bank mentioning the references of international transport titles such as LTA, BL, CDA or any other document notably including:

• the name of the bearer or carrier;
• the detail of the packaging;
• the date of travel or transport;
• the name of the supplier.

Paragraph 3: Any import operation requires the involvement of the Central Bank/Directions responsible for monitoring foreign exchange operations and managing cash and banknotes within their purview for the reception, escorting and counting of funds.

Paragraph 4: Importing authorized banks are required to communicate to the Central Bank /Direction responsible for monitoring foreign exchange operations within its purview, within seven (7) working days after the import, the detailed status of the operation carried out.

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Sub-Section 2.2.: On the Foreign Exchange Position

Article 103:

Paragraph 1: Banks must manage their foreign exchange positions in accordance with the instructions issued on this matter by the Central Bank.

Paragraph 2: Banks are authorized to decentralize the management of their foreign exchange positions in favor of their branches and agencies.

Paragraph 3: The prudential rules relating to the management of banks' foreign exchange positions are defined by the Central Bank in appropriate administrative instructions.

Article 104: Banks are required to declare their foreign exchange position and transmit these data to the Central Bank in accordance with the administrative instructions on this matter.

SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO AUTHORIZED NON-BANKING INTERMEDIARIES

Article 105: Any authorized non-banking intermediary wishing to carry out operations in foreign currencies must solicit prior authorization from the Central Bank, which determines the conditions under which these operations must be realized.

Sub-Section 3.1.: Currency Exchange Offices

Article 106:

Paragraph 1: Any legal entity of Congolese law wishing to make buying and selling of foreign currencies its sole profession must previously obtain the approval of the Central Bank as a Currency Exchange Office.

Paragraph 2: An administrative instruction of the Central Bank determines the conditions for approval, operation and transmission of statistical data related to their operations.

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Sub-Section 3.2.: Financial Messengers

Article 107:

Paragraph 1: Any legal entity, other than authorized banks, interested in carrying out fund transfer operations in national currency and foreign currencies must previously obtain the approval of the Central Bank as a Financial Messenger.

Paragraph 2: An administrative instruction of the Central Bank determines the conditions for approval, operation and transmission of statistical data. It also determines the authorized operations as well as the disciplinary regime applicable to financial messengers.

Sub-Section 3.3.: Electronic Money Institutions

Article 108:

Paragraph 1: Any establishment wishing to issue electronic money must previously obtain the approval of the Central Bank granting it the status of financial society.

Paragraph 2: An Instruction of the Central Bank determines the conditions for approval and operation of Electronic Money Institutions.

Chapter IX: PRACTICAL MODALITIES FOR THE PREPARATION AND TRANSMISSION OF STATISTICS TO THE CENTRAL BANK

Article 109: The practical modalities relating to the preparation and transmission of statistics to the Central Bank are defined in the administrative instructions relating to the codification of foreign exchange operations.

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Chapter X: FINAL PROVISIONS

Article 110: Diplomatic missions and international organizations accredited in the Democratic Republic of Congo benefiting from diplomatic immunities and privileges are exempted from the obligations set forth in Articles 3, 14, 23 and 50.

Article 111: Without prejudice to other legal or regulatory provisions, any failure to comply with the provisions thus established results in the application of sanctions provided for by Ordinance-Law No. 67/272 of June 23, 1967 regarding the regulatory power of the Central Bank in matters of foreign exchange.

Article 112: Any matter relating to foreign exchange that has not been treated by this Regulation will be governed by provisions of the Central Bank.

Article 113: This Regulation is applicable without prejudice to legal and regulatory provisions notably in fiscal, customs and excise matters, insurance, transport or control both for the export and import of goods and services.

Article 114: This Foreign Exchange Regulation abrogates all previous provisions contrary to it and specifically:

• The Foreign Exchange Regulation of February 13, 2003;
• Circular 282 of March 5, 1999;
• Instruction No. 000574 of April 4, 2007 carrying implementing measures of the foreign exchange regime for companies holding mining rights;
• Instruction No. 000577 of April 4, 2007 relating to the particular foreign exchange regime applicable to exploitation-production petroleum companies. It enters into force six (6) months after its signature.

Made in Kinshasa, on March 25, 2014

Déogratias MUTOMBO MWANA NYEMBO Governor

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ANNEXES

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TABLE OF CONTENTS Pages THE FOREIGN EXCHANGE REGULATION IN THE DEMOCRATIC REPUBLIC OF CONGO ..................................................................................... 5 THE CENTRAL BANK, .................................................................................................... 7 Chapter I: GENERAL PROVISIONS ................................................................................. 8 SECTION 1: DEFINITIONS .................................................................................................. 8 SECTION 2: HOLDING FOREIGN CURRENCIES .......................................... 13 SECTION 3: TRANSACTIONS AND SERVICE PROVIDING IN FOREIGN CURRENCIES ................................................................................... 13 SECTION 4: GIFTS AND LIBERALITIES IN FOREIGN CURRENCY ............................ 15 SECTION 5: MONITORING OF FOREIGN EXCHANGE OPERATIONS ......................................................... 15 SECTION 6: ADMINISTRATIVE FEES AND OTHERS ......................................................... 18 SECTION 7: FOREIGN EXCHANGE MONITORING FEE ........................................................ 18 SECTION 8: OPERATIONS EXECUTED UNDER INTERNATIONAL AGREEMENTS ................................................................................................ 20 SECTION 9: INTERNATIONAL TRANSIT OF GOODS ......................................................... 20 SECTION 10: INTERNATIONAL TRADE ........................................................................... 21 SECTION 11:REGISTRATION OF ENTITIES FOR PROCESSING AND TRANSFORMATION OF MINERAL SUBSTANCES AND PURCHASING AND SELLING COUNTS OF ARTISANAL EXPLOITATION PRECIOUS AND SEMI-PRECIOUS MINERAL SUBSTANCES ........... 22 Chapter II: GOODS ................................................................................................................... 23 SECTION 1: COMMON PROVISIONS APPLICABLE TO EXPORT AND IMPORT OPERATIONS OF GOODS………………………………23 SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO EXPORTS OF GOODS ................................................................................ 27 SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO IMPORTS OF GOODS ............................................................................................................ 34 Chapter III: SERVICES ........................................................................................................... 39 SECTION 1: COMMON PROVISIONS APPLICABLE TO SERVICES .................. 40 SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO EXPORTS OF SERVICES ..................................................................................... 42 SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO IMPORTS OF SERVICES ..................................................................................... 43 Journal Officiel - Banque des Données Juridiques - 2014

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Chapter IV: REVENUES, CAPITALS AND FINANCIAL OPERATIONS ................................ 44 SECTION 1: COMMON PROVISIONS APPLICABLE TO REVENUES, CAPITALS AND FINANCIAL OPERATIONS ...................................................... 44 SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO REVENUES ................. 47 SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO CAPITALS ................ 47 SECTION 4: SPECIFIC PROVISIONS APPLICABLE TO FINANCIAL OPERATIONS ....................................................................................................... 47 Chapter V: PROVISIONS APPLICABLE TO HOLDERS OF MINING RIGHTS AND PETROLEUM COMPANIES .................................................................................... 48 SECTION 1: SPECIFIC PROVISIONS APPLICABLE TO HOLDERS OF MINING RIGHTS .................................................................................................. 48 SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO EXPLOITATION-PRODUCTION PETROLEUM COMPANIES .............................................. 52 SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO DISTRIBUTION PETROLEUM COMPANIES ...................................................................... 54 Chapter VI: FOREIGN EXCHANGE MARKET .................................................................................... 56 Chapter VII: ACCOUNTS DENOMINATED IN FOREIGN CURRENCIES AND NON-RESIDENT ACCOUNTS IN NATIONAL CURRENCY .................................. 56 Chapter VIII: AUTHORIZED INTERMEDIARIES ............................................................................ 57 SECTION 1: COMMON PROVISIONS APPLICABLE TO AUTHORIZED INTERMEDIARIES ................................................................................ 57 SECTION 2: SPECIFIC PROVISIONS APPLICABLE TO BANKING AUTHORIZED INTERMEDIARIES ........................................................................................... 58 Sub-Section 2.1.: Import and Export of Banknotes ........................ 58 Sub-Section 2.2.: Foreign Exchange Position ........................................................................ 61 SECTION 3: SPECIFIC PROVISIONS APPLICABLE TO NON-BANKING AUTHORIZED INTERMEDIARIES ................................................................................. 61 Sub-Section 3.1.: Currency Exchange Offices ................................................................................. 61 Sub-Section 3.2.: Financial Messengers .................................................................. 62 Sub-Section 3.3.: Electronic Money Institutions ......................................... 62 Chapter IX: PRACTICAL MODALITIES FOR THE PREPARATION AND TRANSMISSION OF STATISTICS TO THE CENTRAL BANK .................................................... 62 Chapter X: FINAL PROVISIONS .................................................................................... 63 ANNEXES……….………………………………….………………………………………………...63 TABLE OF CONTENTS ..................................................................................................................... 75