Instruction No. 09/2018 of 2 July on Foreign Exchange Policy – Limits for Foreign Exchange Operations in Goods

INSTRUCTION NO. 09/2018
SUBJECT: FOREIGN EXCHANGE POLICY
− Limits for Foreign Exchange Operations in Goods Whereas it is necessary to define limits for carrying out foreign exchange operations in goods, as provided by Notice No. 05/2018, with the objective of ensuring control over the country's foreign currency debt and providing greater predictability regarding future foreign currency fund flows; In the exercise of the powers conferred upon me by the combined provisions of paragraph 2 of Article 28 of Law No. 5/97, dated July 27 - Foreign Exchange Law, and Article 40 of Law No. 16/10, dated July 15 - Law of the National Bank of Angola; I HEREBY DETERMINE:

1. Limits
   1.1 Advance Payments, Documentary Remittances and Documentary Collections
   In foreign exchange operations in goods, banks must ensure compliance with the limits set out below, per importer:
   a) Advance Payments
   Up to EUR 25,000.00 (twenty-five thousand Euros) per transaction and up to EUR 300,000.00 (three hundred thousand Euros) per year, excluding advances permitted under documentary credits.

CONTINUATION OF INSTRUCTION NO. 09/2018 Page 2 of 3 b) Documentary Remittances and Documentary Collections
i. Documentary Remittances - up to EUR 50,000.00 (fifty thousand
Euros) per transaction.
ii. Documentary Collections - up to EUR 100,000.00 (one hundred thousand
Euros) per transaction.
iii. The total limit per importer, regardless of the payment instruments used referred to in this subsection, is
EUR 1,000,000.00 (one million Euros) per year. c) Whenever the payment instruments referred to in subsections a) and b) of point 1.1 of this Instruction are used cumulatively, the limit is EUR 1,000,000.00 (one million Euros) per year, and the limit set out in subsection a) of point 1.1 of this Instruction must always be respected. d) The limits referred to in subsections b) and c) of point 1.1 of this Instruction do not apply to payments for the importation of goods under external financing contracts, previously approved by BNA, in accordance with the prevailing regulations.
1.2 Documentary Credits
a) For amounts up to EUR 100,000.00 (one hundred thousand Euros), importers may use documentary credits in goods import operations. b) For import transactions exceeding EUR 100,000.00 (one hundred thousand Euros), importers must exclusively use documentary credits.
1.3 Currency
The limits expressed in Euros apply to equivalent values in another foreign currency.
2. Exceptions
The National Bank of Angola may, upon justified request by the importer through its bank, approve an alternative payment regime to those set out in Notice No. 05/2018, or limits different from those stated above, after reviewing the

CONTINUATION OF INSTRUCTION NO. 09/2018 Page 3 of 3 submission made by the applicant, considering, among other factors, the parties involved in the transaction, the nature of the goods to be imported, the contract term, price advantages and the country's foreign exchange situation, in cases where the following conditions are cumulatively met:
a) Supply contracts for specific [durable] goods are concluded between the importer and an exporter, and; b) The exporter (and payment beneficiary) is the proven manufacturer of the goods or an authorized official brand representative, or c) The goods are purchased wholesale on a “commodities” stock exchange.
3. Interpretation and Omissions
Doubts and omissions arising from the interpretation of this Instruction are clarified by the National Bank of Angola.
4. Penalties
Violation of the provisions set out in this Instruction subjects banks to penalties, in accordance with the Financial Institutions Framework Law and the Foreign Exchange Law.
5. Entry into Force
This Instruction enters into force 60 days from the date of its publication. LET IT BE PUBLISHED. Luanda, 2 July 2018. THE GOVERNOR

JOSÉ DE LIMA MASSANO