Notice No. 04/2017 of June 28 - Exchange Regime for the Export of Goods

Published in the Official Gazette, 1st Series, No. 105, of June 28

NOTICE No. 04/2017 of June 28

SUBJECT: EXCHANGE REGIME FOR THE EXPORT OF GOODS

Considering Presidential Decree No. 75/17, of April 7, which regulates the administrative procedures to be observed for the licensing of imports, exports, and re-exports of goods, and being the competence of the Bank of Angola to define the modalities of exchange settlement;

There is a need to adapt the norms regulating foreign exchange operations for the export of goods to the macroeconomic context, aiming to promote exports in the country;

In these terms, under the combined provisions of paragraph 2 of Article 28 of Law No. 5/97, of June 27, and Article 40 of Law No. 16/10, of July 15 - Law of the Bank of Angola, and paragraph 2 of Article 56 of Presidential Decree No. 75/17, of April 7.

DETERMINES:

Article 1.
(Object)
This Notice establishes the rules and procedures to be observed in carrying out foreign exchange operations intended for the receipt of revenues from the export and re-export of goods in the Republic of Angola.

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Article 2.
(Scope)

1. This Notice must be observed by all parties involved in the realization of foreign exchange operations for the export and re-export of goods occurring in the Republic of Angola, in accordance with the provisions of Presidential Decree No. 75/17, of April 7, including the entities responsible for ensuring compliance with applicable norms, namely:
   a) Individuals or legal entities, resident for exchange purposes, holding rights and obligations within the scope of export operations; b) Banking Financial Institutions operating in Angola, intermediaries in the aforementioned operations.
2. This Notice is not applicable to export operations carried out in accordance with the rules of an international treaty or decisions of International Organizations of which the Country is a Party.

Article 3.
(Banking Intermediation)

1. The settlement of export or re-export operations of goods may only be carried out through a Banking Financial Institution, duly authorized to operate within the national territory.
2. The intermediation and settlement of the same export or re-export operation of goods by more than one Banking Financial Institution is not permitted.

Article 4.
(Authorization)
To carry out foreign exchange operations related to the export of goods, considering the stability of the respective exchange position, the Bank of Angola authorizes Banking Financial Institutions to guarantee to exporting entities the availability of foreign currency for the operations of exporters provided for in Article 6 of this Notice.

Article 5.
(Deposit of Foreign Currency)

1. The total amount of revenue in foreign currency, resulting from each export operation of goods carried out under and in accordance with Presidential Decree No. 75/17, of April 7, must be deposited in a foreign currency bank account held by the exporting entity, opened at a Banking Financial Institution in the Country.
2. Exporting entities may deduct from the total value of exports or re-exports referred to in the previous number, the values related to commissions, expenses abroad, freight, insurance, or other legitimate charges inherent to the operations carried out.

Article 6.
(Availability of Foreign Currency)

1. The foreign currency resulting from export activity may only be used by its holder to make payments in Angola or abroad, related to the export activity, or to make financial applications with the Banking Financial Institution where the funds are domiciled.
2. The foreign currency resulting from export activity may also be used to purchase national currency, aiming at the payment, within the Country, of expenses with resident exchange entities.
3. Payments to be made in foreign currency by the exporting entity to non-resident exchange entities abroad are subject to the general rules applicable.
4. The Bank of Angola will use prudential and behavioral supervision mechanisms on Banking Financial Institutions, to ensure the good execution of transactions on foreign currency accounts resulting from export activity as provided for in this article.

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Article 7.
(Exemption from Prior Licensing)

1. Foreign exchange operations intended for the receipt of foreign currency resulting from the export and re-export of goods do not require prior licensing from the Bank of Angola, unless they are carried out in a manner different from that established in this Notice.
2. The aforementioned does not exempt that, whenever necessary, exporters provide the Bank of Angola with information on the foreign exchange operations of goods they carry out, including expected future transaction flows.

Article 8.
(Conditions prior to the availability of export resources)

1. Prior to the availability of export or re-export resources of goods, Banking Financial Institutions must ensure that:
   a) They know the nature, economic basis, identity, and legitimacy of the resident exchange exporter, in compliance with the duties of identification and diligence provided for in Fiscal Legislation, as well as in the Legislation on Prevention and Combating Money Laundering and Financing of Terrorism; b) The foreign exchange operation complies with applicable legislation, for which purpose they must request documentary support in accordance with this Notice.

Article 9.
(Payment Modalities and Mandatory Documents)

1. In foreign exchange operations intended for the export and re-export of goods, the following settlement modalities are admitted:
   a) Documentary Credit; b) Advance Payment; c) Deferred Payment, through:
   i. Documentary Collections;
   ii. Documentary Remittances.
2. Whenever a documentary credit is received, before its notification to the beneficiary exporter and resident exchange entity, Banking Financial Institutions must ensure that the terms and conditions thereof are in accordance with the exchange legislation of the country, and must, when necessary, request the necessary alterations to guarantee compliance with said legislation.
3. For the receipt of resources from the export of goods, the exporter must present to their Banking Financial Institution the following documents:
   a) Letter listing the documents, subject to negotiation, attached to the same; b) Export License, issued by the Ministerial Department responsible for external trade, containing the licensing number; c) Original of the letter of credit in operations conducted under this modality, or; d) Payment commitment title (acceptance) to be signed by the non-resident exchange importer, or bill of exchange obliging payment against delivery of documents, depending on whether it is a documentary collection or remittance for collection.

Article 10.
(Deadlines for Receipt of Export Revenues)

1. In the case of a documentary credit, the maximum period allowed for the receipt of revenues in foreign currency resulting from the export is 360 days.

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2. In the case of a documentary collection, the exporter must ensure the delivery of documents to their Banking Financial Institution, for sending to the importer's bank within 10 days after the date of shipment of the goods, with the maximum allowed receipt period being 90 days.
3. In the case of a documentary remittance, the exporter must ensure the sending of the necessary documents to the importer, allowing them to make payment within a maximum period of 90 days.
4. Banking Financial Institutions must prove the entry of export revenue into the Country within the periods indicated in paragraphs 1, 2, and 3 of this article and proceed to register it in the Foreign Exchange Operations Information System (SINOC).

Article 11.
(Compensation for Poor Quality of Exported Goods)

1. Whenever there are claims regarding indemnities claimed by importers abroad for deficiency in quantity or quality, in the case where the exported goods have already been fully settled, the exporter may request an autonomous transfer of the values to be returned to the importer, presenting to their bank the following documents:
   a) Explanatory letter of the payment to be made, indicating the name and bank coordinates of the foreign beneficiary/importer, the value, and the reason for payment; b) Copy of the credit note issued by the exporter proving the amount to be settled; c) Copy of the correspondence exchanged with the importer of the goods regarding the complaint presented, in which the destination given or to be given to the goods is stated; d) Copy of the invoice of the exported goods; e) Copy of the banking document proving that the value of the exported goods was transferred to the country; f) Export License issued by the Ministerial Department responsible for external trade containing the licensing number; g) Original of the Single Document annotated by the National Customs Service.
2. When it concerns compensation by deduction of the product, the exporter must inform their bank in writing, also presenting the documents referred to in letters b) to g) of the previous paragraph.
3. When the goods, object of the complaint, have returned to the possession of the exporter, the information elements must state that the goods in question have returned or will return to the Country, or that, on the contrary, they have already been or will be placed with another foreign client.
4. Treating it as compensation by deduction as referred to in paragraph 3 of this article, the amount to be annotated by banking financial institutions in the original of the Single Document will be the corresponding to the net product of the collection of the export. This annotation will also state the value of the indemnity and the mention that it was settled by deduction.

Article 12.
(Exemption from Export Settlement)

1. Records of exit of goods may be carried out with express exemption from exchange settlement, provided they are duly authorized by the Ministerial Department responsible for external trade and are not intended for a regularizing operation, total or partial, notably by compensation of other operations, or when it concerns:
   a) Export of propaganda articles and samples without commercial value, parts, and other goods sent in replacement of goods that arrived unsuitable or damaged or with insufficient tare, which must be subsequently re-sent; b) Export of articles intended for diplomatic, consular, and religious representations, whether for their installations, or for the official residences of their respective officials, or still, for purposes of propaganda or representation of the countries or institutions to which they relate; c) Export of didactic material, articles of religious worship, and other durable or non-durable consumer goods, offered to non-profit institutions, provided they are intended for the exercise of their respective activities; d) Export of durable or non-durable consumer goods, offered to individuals residing abroad, which, by their nature or small value, are not to be considered intended for further commercial transactions or for correspondence aiming to conceal the export of goods; e) Export of goods intended for donations or emergency aid.
2. The record of exit of goods with exemption from exchange settlement, for cases not provided for in paragraph 1 of this article, always depends on the authorization of the Bank of Angola, to be requested through their Bank.

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Article 13.
(Archiving of the Process)

1. For each export or re-export operation of goods, banks must constitute an individual process that, in addition to the documents provided for each type of operation and settlement modality, must obligatorily include the following documents:
   a) Copy of the Export License issued by the Ministerial Department responsible for external trade; b) Documentary Credit and respective alterations of terms and release of discrepancies, if applicable; c) Remittance letters and correspondence exchanged between banks guaranteeing or participating in the operation; d) Transport Document; e) Settlement Slips; f) Confirmation of payments/receipts from abroad; g) Other correspondence between the economic agent and the banking financial institution related to the operation.
2. The period for maintaining the documents referred to in the previous paragraph of this article in archive is defined in Law No. 12/15, of June 17 - Law of the Bases of Financial Institutions.

Article 14.
(Control Procedures)

1. For each export or re-export operation, the banking financial entities concerned must maintain a register containing the following data:
   a) Sequential number of the operation, including the indication of the year of its realization; b) Name of the orderer; c) Tax Identification Number; d) Amount of the operation; e) Name and address of the beneficiary; f) Negotiating bank, if applicable; g) Confirming bank, if applicable; h) Date of each settlement; i) Import/Export License issued by the Ministerial Department responsible for external trade; j) Status of the credit (cancelled, settled, or extended), if applicable; k) Reference and date of the copy of the Single Document.
2. The registration and organization of foreign exchange operations must be carried out carefully, obeying a sequential numbering, by modality, and with the indication of the year to which they relate.
3. The information resulting from the registers referred to in this article must be updated and made available to the Bank of Angola, whenever requested by it.

Article 15.
(Duty of Information)

1. Banks must send to the Exchange Control Department of the Bank of Angola, by 10:00 AM on the 15th day of each month, the list of entities in default regarding the entry into the country of revenues resulting from the exports of goods.
2. The list referred to in the previous paragraph must be sent in XML format through the Supervision System of Financial Institutions (SSIF), in conformity with the model and filling instructions attached to this Notice.
3. The information to be contained in the list, referred to in paragraph 1 of this article, must reflect the situation of the entities in default until the last business day of the previous month, and they must continue to appear in the list until the default is remedied.

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Article 16.
(Sanctions)

1. Violations of the norms of this Notice, by banking financial entities, will be punished in accordance with Law No. 5/97, of June 27 - Exchange Law, as well as Law No. 12/15, of June 17 - Law of the Bases of Financial Institutions.
2. The untimely sending of the list provided for in the previous article of this Notice is punishable in accordance with Notice No. 16/07, of September 12.
3. Exporters who do not comply with the obligation to receive the foreign currency resulting from exports in the Country may be prohibited by the Bank of Angola from carrying out new foreign exchange operations of import, export, or re-export of goods until full compliance with these obligations.
4. Without prejudice to the provisions in the previous paragraphs, the Bank of Angola reserves the right to publish the lists of exporting entities that, after the expiration of the period provided for the entry into the Country of revenues resulting from exported goods, have not done so.

Article 17.
(Revocation)
Chapter III of Notice No. 19/12, of April 25, is revoked.

Article 18.
(Doubts and Omissions)
Doubts and omissions arising in the interpretation and application of this Notice are resolved by the Bank of Angola.

Article 19.
(Entry into Force)
This Notice enters into force 30 days from the date of its publication.

PUBLISH.
Luanda, June 27, 2017.

THE GOVERNOR
VALTER FILIPE DUARTE DA SILVA

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ANNEX