Notice No. 5/GBM/2024, March 21 – Establishes the Regime for Repatriation and Conversion of Export Revenues from Goods, Services, and Foreign Investment Income

SUMMARY
NOTICE
The matter to be published in the «Republic Gazette» must be submitted as a duly authenticated copy, one for each subject matter, containing, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated:
For publication in the «Republic Gazette».
IMPRENSA NACIONAL DE MOÇAMBIQUE, E. P.
Bank of Mozambique:
Notice No. 4/GBM/2024:
Establishes the Regime for Liberalization of Capital Operations and Other Foreign Exchange Operations.
Notice No. 5/GBM/2024:
Establishes the Regime for Repatriation and Conversion of Export Revenues from Goods, Services, and Foreign Investment Income.
Thursday, March 21, 2024 I SERIES — Number 58
BANK OF MOZAMBIQUE
Notice No. 4/GBM/2024 dated March 21
Given the need to establish the necessary conditions for the liberalization of capital operations and other foreign exchange operations, the Bank of Mozambique, exercising the competence conferred upon it by paragraph 2 of Article 27 of Law No. 28/2022, dated December 29, Foreign Exchange Law, determines:
CHAPTER I
General Provisions
Article 1
Object
This Notice establishes the regime for liberalization of capital operations and other foreign exchange operations.
Article 2
Scope
This Notice applies to all participants in foreign exchange operations carried out under the Foreign Exchange Law.
CHAPTER II
Liberalized Capital Operations and Other Foreign Exchange Operations
SECTION I
General Liberalization of Capital Operations and Other Foreign Exchange Operations
Article 3
Liberalized capital operations and other foreign exchange operations

1. The capital operations and other foreign exchange operations established in this Notice do not require authorization from the Bank of Mozambique.
2. Capital operations and other foreign exchange operations not indicated in this Notice are subject to the authorization regime provided for in the Notice on Standards and Procedures for Carrying Out Foreign Exchange Operations.
   Article 4
   Liberalized capital operations
   The following capital operations do not require authorization from the Bank of Mozambique:
   a) foreign direct investment; b) foreign investment, up to the maximum equivalent of USD 1,000,000.00 (one million United States dollars) per each calendar year; c) real estate investment in Mozambique; d) operations on securities and other instruments traded on the capital market outside the stock exchange in Mozambique; e) credits linked to the transaction of goods or provision of services; f) export of banknotes and coins in Metical for numismatic and public exhibition purposes, by resident or non-resident entities, up to the equivalent amount of USD 250.00 (two hundred and fifty United States dollars); g) loans and financial credits, carried out in accordance with the conditions determined in Articles 6 and 7 of this Notice; h) guarantees related to current transactions; i) other guarantees when at least one of the following circumstances applies:
   i. granted for a period equal to or less than 1 year;
   ii. granted in favor of a non-resident or on behalf of a resident under a transaction previously authorized by the Bank of Mozambique;
   iii. granted on behalf of a non-resident for any purpose, provided it is counter-guaranteed by a deposit of equal amount, payable on first demand;
   iv. granted on behalf of a resident or non-resident in favor of the customs authority, during proceedings regarding lack of documents, authenticity of signatures, and redemption of goods under receipt.
   j) operations on certificates of participation in collective investment undertakings; k) transfers executed under insurance contracts related to current transactions and already authorized capital operations; l) export of invested capital, in case of partial or total disinvestment, or liquidation.
   Article 5
   Other liberalized foreign exchange operations
   The following other foreign exchange operations do not require authorization from the Bank of Mozambique:
   a) receipts not classified as current transactions; b) account opening by non-residents in national or foreign currency in Mozambique, when related to capital operations; c) account opening in foreign currency in Mozambique by residents, provided they have a proven relationship with the abroad or non-residents and, from it, results a flow of values in foreign currency, namely:
   i. exporters;
   ii. companies or organizations;
   iii. workers or employees of diplomatic, consular, or equivalent representations;
   iv. other entities generating or receiving foreign exchange.
   SECTION II
   Special Liberalization of Capital Operations and Other Foreign Exchange Operations
   Article 6
   Supplies or credit from related companies
3. The contracting of supplies or credit by a resident company from a related non-resident company is freely carried out, provided that:
   a) contracted at an interest rate of 0%, with maturity equal to or greater than 3 years, not conditioned on the provision of guarantee and without commissions or charges; b) contracted at an interest rate above 0% and not exceeding the reference rate (base lending rate) of the currency of denomination of the credit, with maturity greater than 3 years, not conditioned on the provision of guarantee and without commissions or charges, up to the equivalent amount of USD 5,000,000.00 (five million United States dollars) for individuals and USD 10,000,000.00 (ten million United States dollars) for legal entities.
4. For the purpose of foreign exchange registration of the operation, the process must be prepared in accordance with paragraph g) of Article 69 of the Notice on Standards and Procedures for Carrying Out Foreign Exchange Operations, with the presentation of financial statements from the last two economic years or proof of the source of resources for credit repayment being waived.
   Article 7
   Financial credit received from abroad
   The contracting of financial credit up to the equivalent amount of USD 5,000,000.00 (five million United States dollars) for individuals and USD 10,000,000.00 (ten million United States dollars) for legal entities does not require authorization from the Bank of Mozambique, provided that:
   a) the interest rate does not exceed the reference rate (base lending rate) of the currency of denomination of the credit, plus 4 percentage points; b) maturity is equal to or greater than 3 years; c) the sum of commissions and other administrative costs does not exceed 5% of the credit value.
   Article 8
   Supplementary payments
   The making and repayment of supplementary payments do not require authorization from the Bank of Mozambique, provided that the requirements established in the Commercial Code are observed.
   Article 9
   Accessory payments
   The making of accessory payments in favor of a resident company does not require authorization from the Bank of Mozambique, provided that:
   a) carried out at an interest rate of 0%, with maturity equal to or greater than 3 years and without commissions or charges; or b) carried out at an interest rate above 0% and not exceeding the reference rate (base lending rate) of the currency of denomination of the credit, with maturity equal to or greater than 3 years and without commissions or charges.
   CHAPTER III
   Final Provisions
   Article 10
   Sanctioning regime
   Violation of the provisions provided for in this Notice constitutes a regulatory offense punishable under Law No. 28/2022, dated December 29.
   Article 11
   Clarification of doubts
   Doubts regarding the interpretation and application of this Notice must be submitted to the Licensing and Foreign Exchange Control Department of the Bank of Mozambique.
   Article 12
   Entry into force
   This Notice enters into force 30 days after its publication.
   Bank of Mozambique, in Maputo, February 2, 2024.
   – The Governor, Rogério Lucas Zandamela.

MARCH 21, 2024 725
Notice No. 5/GBM/2024 dated March 21
Given the need to establish the conditions for repatriation of export revenues from goods, services, and foreign investment income and their respective conversion, the Bank of Mozambique, exercising the competence conferred upon it by paragraph 3 of Article 20 of Law No. 28/2022, dated December 29, Foreign Exchange Law, determines:
Article 1
Object

1. This Notice establishes the regime for repatriation and conversion of export revenue from goods, services, and foreign investment income.
2. For the purposes of this Notice, revenues resulting from credits and loans granted abroad are equated to foreign investment income.
   Article 2
   Scope
   This Notice applies to all participants in foreign exchange operations carried out under the Foreign Exchange Law.
   Article 3
   Repatriation of revenues
3. The repatriation of export revenues from goods, services, and foreign investment income by residents must be carried out within 90 days, calculated from:
   a) shipment, in the case of goods export; b) receipt of the price or fees arising from the provision of services; or c) receipt of income, in the case of foreign investment.
4. The repatriation of export revenues from goods, services, and foreign investment income must be carried out in foreign currency, by bank transfer, to a bank authorized to operate in the Republic of Mozambique.
   Article 4
   Conversion of revenues
5. Export revenues from goods, services, and foreign investment income must be converted into national currency, amounting to 30% of the received value.
6. The conversion referred to in the preceding paragraph must be carried out at the time of receipt, at the prevailing spot exchange rate.
7. The following revenues are not subject to the conversion referred to in paragraph 1:
   a) those resulting from rent payments by non-resident entities for the use of real estate belonging to residents, located within national territory, when such payment is made to accounts domiciled in the national banking system; b) those regarding remuneration payments, arising from employment relations or services provided by residents to embassies, diplomatic or consular representations and equivalents established in Mozambique.
   Article 5
   Sanctioning regime
   Violation of the provisions provided for in this Notice constitutes a regulatory offense punishable under Law No. 28/2022, dated December 29.
   Article 6
   Entry into force
   This Notice enters into force 30 days after its publication.
   Article 7
   Clarification of doubts
   Doubts regarding the interpretation and application of this Notice must be submitted to the Licensing and Foreign Exchange Control Department of the Bank of Mozambique. Bank of Mozambique, in Maputo, February 2, 2024. – The Governor, Rogério Lucas Zandamela.

Price — 20.00 MT
IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.