Instruction on Implementation Measures for the Exchange Regime of Mining Rights Holding Companies

CENTRAL BANK OF CONGO
Kinshasa, 04 APR. 2007
D15/Gov. No. 000574
THE GOVERNOR

INSTRUCTION ON IMPLEMENTATION MEASURES FOR THE EXCHANGE REGIME OF MINING RIGHTS HOLDING COMPANIES

Considering Ordinance-Law No. 67/272 of June 23, 1967, defining the regulatory power of the Central Bank of Congo in matters of exchange,

Considering Decree-Law No. 005 of May 07, 2002, on the organization and functioning of the Central Bank of Congo.

Considering Law No. 007/2002 of July 11, 2002, on the mining code,

Taking into account Decree No. 038/2003 of March 26, 2003, on the Mining Regulation, and the evolution of the Exchange Regulation in force in the Democratic Republic of Congo, the Central Bank of Congo communicates below the provisions relating to the exchange regime applicable to mining rights holding companies:

I. ON THE IMPORTS AND EXPORTS OF GOODS

Mining rights holding companies are authorized to freely import, under the cover of the "I.B." model declaration, goods for investments and capital contributions necessary for their activity;

They are also authorized to commercialize and export all of their production on the market of their choice;

All import and export operations must be settled in accordance with the Exchange Regulation in force.

However, to facilitate the execution of import and export operations in the mining sector by avoiding the multiplication of exchange documents, mining companies are authorized to subscribe, based on forecasts, the "I.B." and/or "E.B." model import and/or export declarations "global formula" with the banks of their choice, provided that:

• The imported goods concerned are of the same nature, same origin, from the same supplier;

• The exported goods concerned are of the same nature, and destined for the same foreign buyer.

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The subscription of the "I.B." model declarations "global formula" is carried out based on annual forecasts of imports, while those of the "E.B." model declarations "global formula" are carried out based on quarterly forecasts of exports. The "I.B." model declaration "Global Formula" has a validity of 12 (twelve) months, while the "E.B." model declaration "Global Formula" has a validity of 3 (three) months.

II. ON SERVICES

The imports and exports of services are settled based on the I.S. and E.S. model declarations, to be subscribed with an authorized bank, in accordance with the exchange regulation in force.

III. ON PRINCIPAL ACCOUNTS

Mining rights holding companies are authorized to hold accounts named "principal account" opened with an internationally reputable bank abroad and "national principal account" in foreign currencies with the national banking system;

These accounts are credited with export revenues, the quotas of revenues to be repatriated, pre-financings, various credits and commitments related to the operation of the company;

The "national principal account" will be debited with the amounts necessary for the local operational needs of the company.

IV. ON EXPORT REVENUES.

Export revenues from mining products must be received in the principal account abroad within 45 (forty-five) days from loading, and the quota to be repatriated to the national principal account within 15 days after their collection in the principal account abroad;

Mining rights holding companies are authorized to keep in the principal account opened with a bank abroad 60% of export revenues and must report the remaining 40% to the credit of the national principal account.

V. ON THE EXCHANGE CONTROL FEE

Mining rights holding companies are required to pay to the Central Bank of Congo or to any person mandated by it, an exchange control fee of 2 ‰ (two per mille) on the total (100%) amount of exports realized.

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Calculated on the total export revenues, this fee will be deducted upon the collection of said revenue abroad, and paid upon the repatriation of the required quota to the national principal account.

These companies are also required to pay to the Central Bank of Congo or to any person mandated by it, an exchange control fee of 2 ‰ (two per mille) on any payment made to or from abroad through an authorized bank.

VI. ON THE TRANSMISSION OF STATISTICS

Mining rights holding companies are required to transmit monthly to the Central Bank/Foreign Services Department, the statement of operations passed on the principal account abroad, model in annex, accompanied by proof of payment of the exchange control fee on export revenues.

Mining rights holding companies are required to instruct their bankers to transmit quarterly to the Central Bank/Foreign Services Department, a summary table of imports and exports realized under the "I.B." or "E.B." model declaration "Global Formula", including the following data:

• Exact nature of imported or exported goods;
• Customs tariff number;
• Quantity;
• FOB Value;
• Freight Cost;
• Bill of Lading (B/L) Number;
• Insurance Cost;
• Country of origin and destination;
• Customs Declaration Reference;
• OCC Verification Certificate Reference.

VII. ON THE MONITORING OF OPERATIONS

The Provincial Directorates and Autonomous Agencies of the Central Bank within the jurisdiction of the mining companies' activities are now responsible for monitoring the payment of the Exchange Control Fee, on the exchange operations of the concerned companies based on the copy of the statement received from authorized banks in accordance with point 3 of the Instructions relative to the collection and payment of the ECC.

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

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VIII. ON CRIMINAL OFFENSES AND REPRESSIVE MEASURES

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