Notice No. 04/2021 of April 14: Exchange Rate Policy - Rules and Procedures Applicable to Import and Export Operations

PUBLISHED IN THE OFFICIAL GAZETTE, 1ST SERIES, NO. 65, OF APRIL 14, 2021 NOTICE NO. 04/2021 SUBJECT: EXCHANGE RATE POLICY

• Rules and Procedures Applicable to Exchange Operations for the Import and Export of Goods

Whereas it is necessary to simplify and update the regulation of the Bank of Angola regarding the Rules and Procedures Applicable to Exchange Operations for the Import and Export of Goods, aiming to keep pace with the evolution of the foreign exchange market; In exercise of the competence attributed to me under the combined provisions of Article 40 of Law No. 16/10, dated July 15 - Bank of Angola Law, paragraph 2 of Article 28 of Law No. 5/97, dated June 27, and Presidential Decree No. 126/20, dated May 5, which regulates the administrative procedures to be observed in the licensing of imports and exports of goods, and which grants competence to the Bank of Angola to define in a specific instrument the modalities of foreign exchange settlement. I DETERMINE:

CHAPTER I
General Provisions
SECTION I
Object, Scope and Definitions
Article 1.
(Object)
This Notice establishes the rules and procedures to be observed in carrying out exchange operations intended for the settlement of imports and exports of goods in the Republic of Angola.

Article 2.
(Scope)

1. This Notice applies to all parties involved in carrying out exchange operations for the import and export of goods, namely:
   a) Natural or legal persons holding rights and obligations within the scope of said operations; b) Intermediary Banking Financial Institutions in said operations; c) Public or private entities responsible for guaranteeing compliance with the standards established in this Notice.
2. The provisions of this Notice do not apply to entities covered by the special exchange regimes of the oil and diamond sectors.

Article 3.
(Definitions)
For the purposes of this instrument, the following are understood:
a) Advance Payment – the payment of an amount representing a percentage of the total value of the import, serving as a sign of intent to purchase the goods. b) Documentary Collection – a payment method in import and export operations, whereby the exporter ships the goods and forwards the documentation to their Bank, which will deliver it to the importer's Bank for collection or acceptance. c) Documentary Credit or Letter of Credit – a commitment assumed by a Bank (Issuing Bank) at the request and under instructions of an Importer client (Ordering Party), to make a payment to an Exporter (Beneficiary), through an Intermediary Bank (Advising/Confirming Bank), upon presentation of the stipulated documents, provided all terms and conditions have been met. d) Payment Commitment Declaration – a document necessary to allow customs clearance of the goods to be exported from Angola, issued and countersigned as follows:
i. Advance payment or documentary credit – by the Intermediary Bank attesting to the receipt of the advance payment or formal communication (SWIFT message) from the Issuing Bank of the documentary credit opened in favor of the exporter;
ii. Other payment instruments – by the exporter who assumes the irrevocable commitment to transfer the values resulting from the export to the Bank identified in the declaration, which signs it as confirmation of having taken knowledge of the operation.
e) Single Document (Final DU) – customs clearance declaration form for goods, approved by Decree No. 75/02, dated November 15, of the Council of Ministers, with adjustments introduced by Executive Decree No. 117/06, dated August 11, of the Minister of Finance. f) Commercial Invoice – invoice issued by the exporter, containing the elements provided for in the Customs Tariff currently in force in the Republic of Angola, as well as an adequate description of the goods. g) Bank Guarantee – document issued by a Bank at the request of an importing client, in favor of the exporter, before which the Bank assumes the obligation to make payment according to the terms of the guarantee text if it is not made punctually and in full by its client, the ordering party of the guarantee. h) Import/Export License for Goods (Quota or Provisional DU) – document issued by the ministerial department responsible for foreign trade authorizing the import and export of goods, as defined in Presidential Decree No. 126/20, dated May 5. i) Non-Resident Exchange Entities – natural or legal persons described as such in the Exchange Law. j) Exchange Operation – any act, business, or transaction carried out between a resident and a non-resident exchange entity that may result in a payment to or from abroad, or that is simply qualified by law as such. k) Advance Payment – a payment method in which the importer pays the exporter the full value of the invoice before the shipment of the goods. l) Documentary Remittance – a payment method where documents are sent directly to the importer, without a draft. m) Resident Exchange Entities – natural or legal persons described as such in the Exchange Law. n) Integrated System for Exchange Operations (SINOC) – automated information system made available by the Bank of Angola to Banks, for recording, monitoring, and controlling exchange operations.

SECTION II
Principles
Article 4.
(Bank Intermediation)
The settlement of import and export operations for goods may only be carried out through Banking Financial Institutions.

Article 5.
(Licensing by the Bank of Angola)

1. The operations subject to this Notice are exempt from licensing by the Bank of Angola.
2. Banking Financial Institutions may settle, without authorization from the Bank of Angola, any import operation for goods, regardless of the time elapsed since the date of unloading, as defined in this Notice.

Article 6.
(Responsibilities of Banks in Processing Exchange Operations)

1. Prior to carrying out any exchange operation related to the import or export of goods, Banking Financial Institutions must ensure they have detailed knowledge of the client, ordering party or beneficiary, resident exchange importer or exporter, as applicable, in compliance with identification and due diligence duties provided for in Legislation and Regulations on the Prevention and Combating of Money Laundering, Terrorism Financing, and Proliferation of Weapons of Mass Destruction.
2. Banking Financial Institutions must ensure they have sufficiently detailed knowledge of the client to allow assessment of the adequacy of exchange operations requested by them in the context of their business and financial capacity.
3. Banking Financial Institutions must analyze supporting documents for each operation to ensure their veracity and validity in terms of dates, conformity between supporting documents, and consistency with the nature of the operation.
4. Upon receiving values resulting from the export of goods from a client, Banking Financial Institutions must ensure the legitimacy of the bank transfer through analysis of supporting documents and their coherence with the client's business.
5. Whenever Banking Financial Institutions know, suspect, or have sufficient reasons to suspect that a transaction susceptible of being associated with money laundering, terrorism financing, or related offenses has occurred, is ongoing, or was attempted, they must comply with the provisions of Law No. 5/20, dated January 27 – Law on the Prevention and Combating of Money Laundering, Terrorism Financing, and Proliferation of Weapons of Mass Destruction.
6. In cases where there are suspicions of document forgery, Banking Financial Institutions must refrain from making the payment and must forward the file to criminal investigation bodies, informing the Bank of Angola of the occurrence and measures taken.

Article 7.
(Registration in SINOC)
All exchange operations carried out under this Notice must be registered in SINOC at the time of their contracting.

CHAPTER II
Import of Goods
SECTION I
Payment Modalities and Settlement
Article 8.
(Payment Modalities and Respective Terms)

1. For the import of goods, the following payment modalities and respective terms are admitted:
   a) Advances or Advance Payments:
   i. Advance payments with a maximum term of 90 (ninety) days for the entry of goods into the Country, counted from the date of payment abroad.
   b) Documentary Credits:
   i. With a maximum validity period of 360 (three hundred and sixty) days;
   ii. Advances are permitted as negotiated between the parties.
   iii. Collections or Documentary Remittances, under internationally used terms.
2. The issuance of bank guarantees, including “Standby LCs”, is also permitted to guarantee payments to the exporter to be made under documentary remittances.

Article 9.
(Settlement)

1. Importers who are also exporters, holders of foreign currency funds from exports, must obligatorily use these funds for the payment of any imports they carry out, regardless of the settlement modality used.
2. The importers referred to in the preceding paragraph may resort to purchasing foreign currency whenever their funds in that same currency are exhausted.
3. In the case of importers not covered by paragraph 1 of this article, Banking Financial Institutions are authorized to sell foreign currency to settle imports, regardless of whether they possess their own funds in foreign currency.
4. Whenever foreign currency is sold, the settlement of the operation must be effected by debiting the importer's national currency account at the time of settlement of the transaction abroad.
5. All payments to non-resident exchange entities, regardless of the use of own funds or purchase of foreign currency, are subject to applicable legislation and regulations on payments abroad.
6. Settlement abroad for imports of goods that, under the Private Investment Law, must be carried out without recourse to the Country's foreign exchange reserves is prohibited.

SECTION II
Documentary Requirements
Article 10.
(Mandatory Documents for Contracting and Settlement of Imports)

1. In the request to open a documentary credit or issue a bank guarantee, the importer must present the following documents:
   a) Documentary Credit:
   i. Valid import license, when applicable;
   ii. Proforma invoice;
   iii. Supply contract, when applicable.
   b) Bank Guarantee:
   i. Complete information on the exporter;
   ii. Valid import license, when applicable;
   iii. Supply contract.

2. At the time of import settlement, with the exceptions referred to in paragraphs 3, 4, and 6 of this article, confirming or advising Banking Financial Institutions, or the exporter's Bank, must forward to the importer's Bank, depending on the payment modality, the following documents, as applicable:
   a) Commercial Invoice; b) Single Document (Final DU); c) Other documents specified in the documentary credit.

3. In the case of an advance payment or advance, Banks must obtain the commercial invoice and import license before making the payment.

4. In the case of an advance payment, Banking Financial Institutions must ensure receipt of the transport document and Final Single Document within a maximum term of 30 (thirty) days from the date of customs clearance, not exceeding 180 (one hundred and eighty) days from the date of payment abroad.

5. In the case of an advance, the term for entry of goods into the Country must be informed by the importer, registered and controlled by Banking Financial Institutions.

6. Without prejudice to the preceding paragraphs, Banking Financial Institutions may request complementary documents they deem necessary to certify the legitimacy of the payment to be made abroad.

7. Banking Financial Institutions must make available to their clients the documents necessary for customs clearance of the goods, only after compliance with documentary requirements under this Notice.

Article 11.
(Control of Goods Entry)

1. Banking Financial Institutions must maintain a record of all advance payments and advances processed, to ensure that paid goods have entered the country.
2. Whenever non-compliance occurs in delivering documentation proving entry of goods for which payment was made, within the terms set forth in this Notice, Banking Financial Institutions must immediately notify the importer and request urgent delivery of missing documentation.
3. Banking Financial Institutions must forward to the Bank of Angola, by the 15th (fifteenth) day of each month, a list of importing entities that have not presented documents proving entry of goods into the Country within 180 (one hundred and eighty) days from the date of an advance payment, or when an advance has not resulted in importation of goods justifying it, within the term indicated by the importer.
4. Banking Financial Institutions must refuse to carry out new exchange operations, of any nature, whenever non-compliance occurs as set forth in this article, unless it occurred for justified reasons and has been duly regularized.

SECTION III
Special Import Modalities
Article 12.
(Consigned Goods)
Payment to the consignor (exporter) depends on presentation to the Banking Financial Institution by the consignee (importer), after sale of the goods and under terms negotiated with the consignor, of documents proving entry of goods into the Country and their sale, namely:
a) Commercial invoice; b) Single Document (Final DU); c) Proof of sale of goods and, in cases of loss or deterioration, a certificate issued by the competent authority.

Article 13.
(Goods Imported under Temporary Regime)
Requests submitted to Banking Financial Institutions for settlement of goods imported under a temporary regime and converted into definitive import must be accompanied by documents proving their entry into the Country and a commercial invoice.

CHAPTER III
Export of Goods
Article 14.
(Payment Modalities and Declaration)

1. For exchange operations intended for export of goods, the following settlement modalities are admitted:
   a) Advance or prepayment; b) Exporter's credit; c) Irrevocable and non-transferable documentary credit.

2. The Intermediary Banking Financial Institution of the operation must issue the Payment Commitment Declaration, meeting the conditions for that purpose, according to the model in the Annex, which is an integral part of this Notice, while simultaneously registering the export license in SINOC.

Article 15.
(Receipt and Use of Export Revenues)

1. The total proceeds from the sale of each export must be transferred by the foreign importer to a bank account held by the exporter, denominated in foreign currency, opened with a Banking Financial Institution domiciled in the Country.
2. The funds referred to in the preceding article are moved, respecting current exchange regulations.

Article 16.
(Compensation for Irregular Exports)

1. Compensation claims received from foreign importers due to any deficiency detected in the goods received, whether due to quality, quantity, or specification different from ordered, must be resolved through one of the following alternatives, depending on the situation:
   a) Transfers corresponding to the claimed value when goods are already fully settled; b) Issuance of a credit note and deduction of this value from the amount to be received in the next export; c) Shipment of identical goods replacing unsuitable ones, or shipment of missing quantities, without amounts to be paid by the importer.

2. Applying paragraph a) of the preceding number, the importer must present to the Bank all documents requested by it to confirm legitimacy of the claim, including but not limited to:
   a) Claim submitted by the importer, sufficiently detailed regarding the reason for the claim; b) Transfer request signed by the exporter indicating name and banking coordinates of the importer and value of the transfer; c) Documents proving the export that originated the claim and its full payment by the foreign importer.

3. Applying paragraph b) of number 1 of this article, the exporter must inform the Bank in writing of this situation before issuing the Payment Commitment Declaration for the following export, also presenting documents referred to in paragraphs a) and c) of the preceding number of this article.

CHAPTER IV
Final Provisions
Article 17.
(File Archiving)

1. Banking Financial Institutions must establish an individual file for each import and export operation of goods, which must contain all documents referred to in this Notice and others that may have been delivered to Banks and relate to said processes.

2. Archiving of the documents referred to in paragraph 1 must respect provisions in Law No. 12/15, June 17, Basic Law of Financial Institutions.

Article 18.
(Sanctions)

1. Violations of the standards of this Notice are punished under Law No. 5/97, June 27 - Exchange Law, and Law No. 12/15, June 17 - Basic Law of Financial Institutions.

2. The Bank of Angola reserves the right to publish lists of non-compliant entities regarding terms and conditions defined in this Notice and to prevent them from carrying out new exchange operations.

Article 19.
(Revocation)
Notices No. 5/18, dated July 17 and No. 01/20, dated January 9, and Instrutivo No. 17/20, dated October 15 are revoked, as well as all regulation contrary to provisions in this Notice.

Article 20.
(Doubts and Omissions)
Doubts and omissions resulting from interpretation and application of this Notice are resolved by the Bank of Angola.

Article 21.
(Entry into Force)
This Notice enters into force 30 (thirty) days from the date of its publication.

PUBLISH.
Luanda, April 5, 2021.
THE GOVERNOR
JOSÉ DE LIMA MASSANO

ANNEX
Model of Payment Commitment Declaration
No. of Declaration (DC/Bank Initials/No./Year) No. of Quota(s) Issuing Bank Date of Issue Exporter Exporters Tax Identification Number (TIN) Importer Name Proforma Invoice Value (Quota) Settlement Date (Expected) Place of Loading Date of Shipment (Estimate) Place of Discharge Date of Discharge (Estimate) Means of Transport Filling Note: fill as applicable.

Advance Payments/Documentary Credits (Article 14, No. 1 paragraphs a) and c)) Under Notice No. 04/2021, the Bank confirms receipt of advance payment/formal communication (SWIFT message) from the Issuing Bank of the documentary credit in favor of the exporter. Advance Payment Effective Date of Receipt Currency and Amount Received Documentary Credit No. of Documentary Credit Currency and Amount

Exporters Credit (Article 14, No. 1 paragraph b)) The exporter hereby assumes the irrevocable commitment to ensure that all revenues from this operation will be transferred to this Bank. The Bank confirms that the above exporter is its client and has taken knowledge of the operation to be carried out through it. Specify Modality and No. Assigned to Operation Currency and Amount

Signature of Exporter Signature of Intermediary Bank