Notice No. 6/GGBM/2005: Procedures for Import and Export of Goods and Services

BANCO DE MOÇAMBIQUE
NOTICE No. 6/GGBM/2005
SUBJECT: Procedures to be observed in the process of import and export of goods and services.

Considering it necessary to establish the principles to be observed in the process of import and export of goods and services, and to define the discipline governing these foreign exchange operations, under the combined provisions of Articles 28 and 37, paragraph 2, letter d) of Law No. 1/92, of January 3 – Organic Law of the Bank of Mozambique – and paragraph 3 of Article 8 of Law No. 3/96, of January 4 – Foreign Exchange Law – the Bank of Mozambique determines:

CHAPTER I
GENERAL PROVISIONS

ARTICLE 1
(Object and Scope)
This Notice establishes the minimum rules and procedures to be observed by credit institutions in transactions involving payments or receipts related to import and export processes of goods and services through the national banking system.

ARTICLE 2
(Definitions)
For the purposes of this Notice, it is considered:
a) Import: the operation between a resident and a non-resident resulting in the entry of goods into the customs territory. b) Export: the operation between a resident and a non-resident resulting in the exit of goods from the customs territory. c) Services: the provision of an economic activity by a non-resident to a resident or vice-versa, in the following areas of economic activity: transport, communications,

travel, construction, insurance, IT, information, services related to trade, royalties and licenses, government services and financing (excluding income such as interest).

ARTICLE 3
(General Payment Modalities)

1. In the settlement of transactions related to the import and
   export of goods, the following general payment modalities are admitted:
   a) Remittance or Documentary Collection; b) Documentary Credit or Letter of Credit;
2. Any payments related to importation shall be made through commercial banks, except those referred to in paragraph 6 of Article 5 of Notice No. 5/GGBM/96, of July 19.
3. No payment shall be made abroad without the importer presenting supporting documents proving the entry of goods into the customs territory.
4. Payment for services can only be made upon confirmation of the provision of said services by the beneficiary company. This confirmation can be placed on the respective commercial invoice.
5. However, advance payments, total or partial, are permitted, provided that the importer commits to the commercial bank to satisfy the requirement set forth in paragraph 3 of this article, within a period of ninety days.
6. For all advance payments with a value greater than the equivalent of USD 50,000.00, a guarantee of equal value may be required, to be provided by a banking institution recognized by the importer's commercial bank.
7. In the use of the modalities referred to in paragraph 1 of this article, banking customs and best practices shall be taken into account,

namely the uniform rules and usages issued by the International Chamber of Commerce.

CHAPTER II
PROCEDURES RELATED TO IMPORTATION

ARTICLE 4
(Payments in Import Processes)

1. Banks shall prioritize the modalities indicated in letters a) and b) of paragraph 1 of the previous article, given their widespread use in international trade considering the lower degree of risk involved.
2. In addition to what is stated in paragraph 5 of the preceding article, advance payment has an exceptional character and should only occur when there is a solid relationship of trust between the bank and the importer, duly proven, with no adverse antecedents, namely delay or lack of payment or divergence in the characteristics of the goods, among other irregularities.
3. When Documentary Credit modalities are used, the initiative to open the credit belongs to the importer, who must obligatorily include the following information:
   a) Full and correct name of the beneficiary and respective address; b) Amount and currency of the credit; c) Type of credit; d) Reimbursement conditions; e) Brief description of the goods, including quantities and unit price, as indicated in the proforma invoice; f) Summary description of the required documents;

g) Place of shipment and destination of the goods h) Partial shipments permitted or not; i) Transshipments permitted or not; j) Validity for shipment (if applicable); k) Validity of the credit; l) Transferable or revolving credit; m) Revolving credit n) Form of notification to clients (by phone, telex, etc).

ARTICLE 5
Registration and Organization of Foreign Exchange Operations

1. Banks must register and organize the foreign exchange operations they carry out in a careful manner, for each payment modality having a sequential numbering and indicating the year to which it refers.
2. This information must always be available and updated.

ARTICLE 6
Mandatory Documents

1. Regardless of the adopted modality, for any importation of goods, the following documents are required:
   a) Proforma invoice, in triplicate at minimum; b) Transport documents; c) Pre-shipment Inspection Certificate, if applicable;

d) Document proving the entry of goods, accepted by the Customs Authority.
2. Transport documents must be issued to the order of the Bank of the Orderer and, according to the type of transport used, the documents specified in the following Table will be required:

Exigible Transport Documents
Transport Type Exigible Transport Document Type Maritime Bill of Lading Airway Bill Railway Waybill Road Road Transport Document or export declaration

ARTICLE 7
Requirements of the Commercial Invoice
The final invoice must contain, when applicable, at minimum the following information:
a) Supplier/exporter: name, full address, Country, telephone and/or fax; b) Consignee/Importer: name, full address, telephone and/or fax; c) Date of issue and respective number; d) Designation of the goods, e) Quantities, brands, models, serial numbers, units, gross and net weight, volume or measurement, and other specifications according to the quality of the goods;

f) Unit prices, transaction value and currency in which values are expressed; and g) Delivery and payment terms.

ARTICLE 8
(Requirements of the Transport or Shipment Document) The Transport Document must obligatorily contain the following information:
a) The name of the carrier or authorized agent; b) Signature and stamp of receipt or other similar indications that the goods have been received for shipment; c) Indication of the place of shipment and discharge of the goods; d) Number of originals issued in the case of bills of lading; e) Certify if there is agreement between the quantity and the description of the goods contained in the invoice; f) For road transport cases, the documents must contain the identification of the respective driver and the vehicle license plate; g) Other requirements required by the adopted payment modality.

ARTICLE 9
(Requirements of the Pre-shipment Inspection Certificate) In the verification of the Pre-shipment Inspection Certificate, credit institutions must obligatorily verify:
a) If the document was issued by the requested entity; b) If it is signed; c) If the certificate complies with the requested inspection; d) If it does not contain any declaration prejudicial to the goods.

ARTICLE 10
(Other Documents)

1. In addition to the documents mentioned above, others may be required depending on the foreign exchange legislation of the seller's country.
2. In the verification of the documents referred to in this article, their consistency with the other documents comprising the process must be taken into account.

ARTICLE 11
(Document Verification)

1. Documents must be rigorously verified by credit institutions considering the payment modality used.
2. After verification and settlement of the documents, they are endorsed and delivered to the importer.

ARTICLE 12
(Constitution of the Process and Filing)
For each operation, credit institutions must constitute an individual process in which the following documents must be included:
a) A copy of the single document, if applicable; b) Documentary credit, if applicable; c) Commercial invoice; d) Shipment document; e) Remittance letter (if applicable); f) Settlement and/or payment bordereaux; g) Correspondence received and sent regarding the transaction.

CHAPTER III
PROCEDURES RELATED TO EXPORTATION

ARTICLE 13
(Exportation via Documentary Credit)

1. In exports, the following payment modalities are admitted:
   a) Checks and transfers; b) Documentary credits; c) Documentary collections.

2. It is incumbent upon banks to adequately assist exporters in the strict observance of the terms and conditions of the documentary credit for the immediate settlement of said export.

3. Before notifying the documentary credit to the beneficiary (Exporter), they must ensure that the terms and conditions of the credit are in accordance with the foreign exchange legislation of the country, and if these are capable of being fulfilled within the established deadline.

4. In the event that there is a clause that cannot be fulfilled, the credit institution must recommend to its client (Exporter) to request the Importer to make the referred alteration(s), which must be communicated by the importer's bank to the credit institution of the Exporter before the shipment of the goods.

ARTICLE 14
(Mandatory Documents)

1. Exporters must present a copy of the Single Document.
2. The commercial invoice and the shipment document will obligatorily appear on the list of documents to be presented in any of the payment modalities.
3. Transport documents must be issued to the order of the exporter's bank and endorsed to the importer's bank.

ARTICLE 15
(Document Verification and Negotiation)

1. Documents must be rigorously verified by credit institutions considering the payment modality used, especially when it concerns a documentary credit.

2. When the conditions are found to be fulfilled by the beneficiary (Exporter), the credit institution claims reimbursement under the terms provided in the documentary credit.

3. If the conditions have not been fulfilled, the credit institution has one of the following alternatives:
   a) Request the beneficiary to make alterations to the documents in accordance with the requirements of the Documentary Credit; b) Request authorization from the issuing or confirming bank to pay or negotiate with the enumerated discrepancies; c) Send the documents to the issuing or confirming bank for their decision on payment.

ARTICLE 16
(Exportation via Documentary Remittance)

1. If the modality used for payment of the export is Documentary Remittance, the documents will be examined by credit institutions considering the international norms regulating Documentary Collections.
2. After the bank's authorization for negotiation or to make the payment, the respective payment is made and the Single Document is used by affixing a stamp indicating the amount used and respective date.
3. If they are in order, they are sent to the bank indicated by the Exporter (Presenting Bank) under a remittance letter where reimbursement conditions will also be included.

ARTICLE 17
(Constitution of the process and filing)
For each operation, credit institutions must constitute an individual process in which the following documents must be included:
a) A copy of the Single Document; b) Documentary credit and respective alterations to the terms of the credit. (if applicable); c) Remittance Letter to the Importer's Bank; d) Commercial invoice; e) Shipment document; f) Settlement bordereaux; g) Other telexes; h) Telex or payment confirmation.

CHAPTER V
FINAL PROVISIONS

ARTICLE 18
(General Register)
Credit institutions must maintain a register for each type of operation (import or export) where the following data must appear:
a) Sequential number of the operation, preceded by the year of the operation; b) Name of the orderer; c) Amount of the documentary credit; d) Type of documentary credit (irrevocable, revolving, etc); e) Name of the beneficiary; f) Negotiating bank; g) Confirming bank; h) Status of the credit (cancelled, settled or extended); i) A copy of the single document or equivalent document.

ARTICLE 19
(Entry into force and revocation)
This Notice enters into force immediately, revoking all provisions that contradict it.

ARTICLE 20
(Clarification of doubts)
Doubts arising from the interpretation and application of this Notice will be clarified by the Banking Supervision Department of the Bank of Mozambique.

Maputo, May 20, 2005
THE GOVERNOR,

---

Adriano Afonso Maleiane