Resolution 103/2010 Approving Internal Regulations for Operations Through the SUCRE

BOARD RESOLUTION NO. 103/2010
SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVAL OF INTERNAL REGULATIONS FOR OPERATIONS THROUGH THE SUCRE.

HAVING VIEWED:

The Law 1670 of October 31, 1995 of the Central Bank of Bolivia.
The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005 of October 21, 2005 and its modifications.
The Constitutive Treaty of the Unified System of Regional Payment Compensation (SUCRE) signed on October 16, 2009.
Law No. 016 of May 24, 2010.
The Report of the International Operations Management GOI No. 07/2010 of May 31, 2010.
The Report of the Legal Affairs Management SANO No. 172/2010 of May 31, 2010.

CONSIDERING:

That the Constitutive Treaty of the Unified System of Regional Payment Compensation, approved by Law No. 016 of May 24, 2010, establishes that the Central Clearing Chamber of Payments of the SUCRE will be channeled through the central banks of the State Parties to the SUCRE.

That the Report of the International Operations Management GOI No. 07/2010 recommends approving an Internal Regulation to govern the operations through the SUCRE carried out by public and private entities in the country.

That the Report of the Legal Affairs Management SANO No. 172/2010 states that there is no legal impediment for the Board of Directors of the BCB, in exercise of its powers conferred by Law No. 1670 and the Statute of the Central Bank of Bolivia, to consider the Regulation for operations through the SUCRE.

That by virtue of what is provided by Law No. 1670 article 54, subsection o) and the Statute of the Central Bank of Bolivia in its article 11 numeral 29, the Board is empowered to approve, modify and interpret the regulations of the BCB by two-thirds of the votes of all its members, without the need for any additional administrative act.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Approve the Internal Regulation for operations through the Unified System of Regional Payment Compensation (SUCRE), which forms part of this Resolution as an annex.

Article 2.- The Internal Regulation for operations through the Unified System of Regional Payment Compensation will enter into force on the date of this Resolution.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, September 14, 2010.

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Gabriel Loza Tellería

_________________________ _________________________ Gustavo Blacutt Alcalá Hugo Dorado Araníbar

_________________________ _________________________ Rolando Marín Ibáñez Ernesto Yáñez Aguilar

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Rafael Boyán Téllez

//3. R.D. N° 103/2010
INTERNAL REGULATION FOR OPERATIONS
THROUGH THE SUCRE

CHAPTER I
OBJECT AND DEFINITIONS

Article 1.- (Object)

This Regulation aims to establish the procedures for channeling payments through the Central Clearing Chamber of Payments (CCC) of the Unified System of Regional Payment Compensation (SUCRE) by financial entities authorized as Authorized Operational Banks (AOB).

Article 2.- (Definitions)

For the purposes of this Regulation, the following definitions are established:

BCB: Central Bank of Bolivia.
Central Banks: Central Banks of the Signatory States to the Constitutive Treaty of the Unified System of Regional Payment Compensation (SUCRE).
Authorized Operational Banks (AOB): Central Banks and financial institutions established in each of the Member States of the SUCRE, expressly authorized by their central bank to operate in the SUCRE. CCC: Central Clearing Chamber of Payments of the SUCRE where operations for the trade of goods and services agreed upon between the State Parties of the SUCRE are registered, cleared, and settled. Instruments: Payment means that will be used to channel operations through the CCC of the SUCRE. SUCRE: Unified System of Regional Payment Compensation. Sucre: Common accounting unit of the SUCRE, used for the registration, valuation, clearing, and settlement of operations at the level of the Central Banks of the State Parties.

//4. R.D. N° 103/2010

CHAPTER II
SCOPE AND PARTICIPANTS

Article 3.- (Scope)

This Regulation will apply to trade operations of goods and services, and financial operations originating from commercial operations, agreed bilaterally or multilaterally between the State Parties of the SUCRE for their channeling through the CCC of the SUCRE.

Article 4.- (Participants)
The participants of the CCC of the SUCRE are:

• Private Importers and Exporters of the State Parties of the SUCRE.
• Authorized Operational Banks (AOB).
• Public Entities of the State Parties of the SUCRE.

Bolivian private importers and exporters may pay or collect their foreign trade operations through the CCC of the SUCRE, through an AOB.

Any banking financial institution with operations in Bolivia and regulated by the Financial System Supervision Authority (ASFI), that wishes to operate within the CCC of the SUCRE, must request its inclusion as an Authorized Operational Bank (AOB) from the BCB, via a formal note, committing to comply with all norms of this Regulation.

The BCB will communicate to each banking financial institution its authorization as an AOB in the CCC, allowing it to channel payments and collections on behalf of its clients.

In the case of Bolivian public entities (importers or exporters), the BCB will act as the AOB.

CHAPTER III
PAYMENTS THROUGH THE CCC OF THE SUCRE

Article 5.- (Irrevocability of payments)

Operations processed through the CCC of the SUCRE are irrevocable, from the moment the registration and corresponding payment are made.

//5. R.D. N° 103/2010

Article 6.- (Admissible payments)

Payments corresponding to trade operations of goods and their associated services, and financial operations derived from commercial operations, previously agreed upon between the State Parties of the SUCRE, will be admitted.

Payments for commercial operations involving an advance payment for exports are permitted.

For a payment to be effected through the CCC of the SUCRE, the AOBs must:

• In the payment method established in the terms and conditions of the Purchase-Sale Contract, indicate that the payment will be made through the CCC of the SUCRE.
• In the trade instruments to be used (letters of credit or payment orders), mention in the payment method: payable through the CCC of the SUCRE.

Article 7.- (Payment Method)
Collection for private sector imports
Collection for private sector imports channeled through the CCC will be made in Bolivianos or US Dollars.

The AOB of the Bolivian private entity will authorize the BCB via form to debit its current and reserve accounts in Bolivianos or US Dollars, to make the payment abroad, citing all details of the operation.

In the case of debit in Bolivianos, the AOB will be exempt from entering the Foreign Exchange Market (Bolsín), applying the official selling exchange rate of the date of the operation.

Collection for public sector imports
Collection for public sector imports channeled through the CCC will be made in Bolivianos or US Dollars.

In the case of payment in US Dollars, the Bolivian public entity must carry out the procedures with the Ministry of Economy and Public Finance for the allocation of the corresponding foreign currency.

Payment for private sector exports

//6. R.D. N° 103/2010

The BCB will credit the amount of the payment received from abroad, to the AOB's account, in US Dollars or in Bolivianos at the buying exchange rate of the date, according to the AOB's request in the corresponding form.

Payment for public sector exports
The BCB will credit the amount of the payment received from abroad, to the account of the Bolivian public entity, in US Dollars or in Bolivianos at the buying exchange rate of the date, according to the request of said public entity in the corresponding form.

CHAPTER IV
INSTRUMENTS

Article 8.- (Authorized instruments)
Payments originating from the following instruments are authorized:

• Letters of credit.
• Payment orders.

Any other payment instrument must have the prior and express authorization of the Board of Directors of the BCB.

CHAPTER V
RESPONSIBILITIES

Article 9.- (Underlying commercial transaction)
It is the responsibility of the AOBs to verify, prior to the issuance of an Instrument, that it originates from the commercial transaction indicated in said document.

Article 10.- (Disputes)

Disputes that may arise between an AOB authorized by the BCB and an AOB of another State Party of the SUCRE regarding the issuance, notification, and payment of instruments, will be resolved directly between them. Therefore, the BCB assumes no responsibility for any dispute that may arise between them, their clients, or third parties, or between the AOBs and a foreign central bank.

CHAPTER VI
OBLIGATIONS OF AOBs AND PUBLIC ENTITIES

//7. R.D. N° 103/2010

Article 11.- (Notice of Issuance or Receipt of an Instrument)

AOBs must inform the BCB of the operations issued and those received from abroad that will be paid through the CCC of the SUCRE, within a maximum period of 10 business days from their issuance or receipt.

Payments by instruments that were not notified cannot be processed through the CCC of the SUCRE.

Article 12.- (Notice of signing of Purchase and Sale Contract)

The Bolivian public entity that signs a purchase and sale contract or agrees on a commercial operation that will be paid through the CCC of the SUCRE, must send this information to the BCB within a maximum period of 10 business days.

CHAPTER VII
OPERATIONAL PROCEDURES

Article 13.- (Operational procedures)

The General Management of the BCB, through an express Circular, will regulate the operational procedures of the operations to be channeled through the CCC of the SUCRE.

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