NEW RULES ON FOREIGN EXCHANGE TRANSACTIONS IMPORT, EXPORT AND RE-EXPORT OF GOODS Notice nr. 19/2012, 19.04., of National Bank of Angola establishes the new regime for foreign exchange transactions relating to payment of import, export and re-export of goods in Angola. June 2012 This new regime applies to: (i) individuals or legal persons holders of rights and obligations; (ii) bank financial institutions, intermediaries in these operations. The diploma starts by defining the obligation of Bank intermediation in any such operation, through the intervention of a financial institution (and only one per transaction), under prior licensing of the National Bank of Angola. However, the dispensation of prior licensing is established to every foreign exchange transactions whose settlement term is less than 360 days from the date of the shipment/discharging documents. The financial institution concerned is obliged to the following: (i) to know the nature, the economic cause, the identity and legitimacy of the resident exchange of the orderer, importer or exporter, in accordance with the identification and due diligence requirements stipulated by Angolan law; (ii) to verify the legality of the foreign exchange transaction at issue, requesting any documentation it deems necessary. In every exchange transactions (import and export) become admitted the settlement procedures hereunder discriminated. a) Documentary credit or letter of credit agreement whereby the bank issuer acts at the request and on instructions from a client (the Orderer), being obliged to: (i) make a payment to a third (the Beneficiary); (ii) accept and pay commercial papers drawn by the beneficiary; (iii) authorize another bank to carry out the said payment or accept and pay these commercial papers;
(iv) authorize the other bank to negotiate, upon presentation of the stipulated documents, fulfilled the conditions of documentary credit. b) Prepayment the importer pays the exporter prior to shipment of the goods, running on their own the risk of non-delivery of goods or delivered outside the agreed standards. c) Post payment payment made, total or partially, by exchange resident to exchange non-resident or vice-versa, and that is the result of import/export of goods in one of the following ways: - Documentary Collections the exporter ships the goods and forwards the documentation to the bank, that delivers it to the importer upon receipt; - Documentary Sending documents are sent directly to the importer without withdrawal, and payment can be realized after the customs clearance of the goods. IMPORT OF GOODS This information will only be dealt with foreign exchange operations concerning the import of goods, being that the notice in question also covers specific rules for export. A) Mandatory Documents To perform the exchange operation, and varying in accordance with the chosen mode of settlement, must be submitted to the bank the following documents among others: (i) Letter from the Customer stating the registration number as importer and its NIF, requesting the implementation of the operation; (ii) Pro forma invoice; (iii) Original commercial invoice (meeting certain requirements); (iv) Transport Document; (v) Import License; (vi) Single Document; (vii) Supply Contract; (viii) Bank Guarantee.
B) Dispensation of Licensing Are dispensed of prior licensing from the Ministerial Department responsible for external trade the following operations: - Imported goods whose value does not exceed the equivalent of USD 5,000.00 (Five thousand dollars of the United States of America); - Goods carried as accompanied baggage and entering in Angola via posts and border controls declared under the simplified regime for importation; - Goods already dispensed under article 14 of the Presidential Decree No. 265/10, of 26 November, namely: (i) temporary import of goods subject, by law, to such customs regime; (ii) import of parts and accessories covered by surety; (iii) import of donated goods, unless used; (iv) import, export and re-export of cinematograph films whose commercial exploitation is allowed; (v) import of goods necessary for the protection of the security essential interests of the country, namely arms, munitions and war material consigned to the Defense and Security Forces provisioning; (vi) import, export and re-export of materials sent abroad for testing, surveys and/or research, with industrial or scientific purposes; (vii) import, export and re-export of samples; (viii) import, export or re-export of goods dispensed of licensing by means of any express legal provision. C) Prepayments Prepayments are allowed in the following cases: a) when the amount of the transaction does not exceed the equivalent of USD 100,000.00 (one hundred thousand Dollars of United States of America); b) When the payment is in excess of USD 100.000,00 (hundred thousand dollars of the United States of America) since that cumulatively it complies with the following: (i) the merchandise is intended and has been specifically manufactured for the make payments in advance; importer, is difficult to sell in an alternative market or that is industry practice to
(ii) the deadline for entry in Angola of the goods referred to in the preceding paragraph is 180 days from the date of liquidation of the prepayment point; (iii) the exporter is not a related entity and/or in group relationship with the importer; (iv) the global amount of prepayments relating to ongoing operations does not exceed 2.5 times the capital of the importer, according to the certified accounts in date not exceeding 360 days from the date of the transaction prepayment. c) When the payment is in excess of USD 100.000,00 (hundred thousand dollars of the United States of America) upon presentation of a good performance guarantee of equal value, to be provided by foreign bank recognized and accepted by the importer; Banks can proceed with the opening of documentary credits that admit prepayments up to 20% of its value. Banks can only make prepayments in the following cases: a) If the importer does not have any non-compliance of delivery of documents for performing (as described below); b) If the importer maintains with the bank a regular relationship of satisfaction of its commitments. After performed the prepayment the importer is required to submit, at the bank through which the operation was made, the document issued as evidence of entry of the goods into the country, as soon as possible, between 180 days from the date of effecting the exchange transaction and 30 days from the date of entry of the merchandise in Angola. When the prepayment is made under a documentary credit, the deadline for submission of documentation is equal to the expiration date of the letter of credit plus 30 days. In case of non-compliance there will be specific registration, which must be remitted by the bank to the National Bank of Angola, up to the 15th of each month, as well as will be refused any future import operations of the same nature, until the situation is set right.
D) Payment The exchange coverage for the payment of the import of goods may take place as follows: a) by use of funds in foreign currency available to the bank account of the importer; b) by charge in the account in national currency, at the time of payment of the foreign transaction; c) by use of international payment card, in accordance with the provisions of specific regulations. In the case of contracts for the import of goods with payment up to 360 days, banks may enter into forward exchange contracts with their customers. Are also subject to the regulation of capital transactions all import contracts providing for the payment of the goods within a period exceeding 360 days after the date of the Single Document. We lay stress upon the following legal prohibitions: (i) Foreign payment of imports that, falling within the law of private investment, should be carried out without recourse to foreign exchange reserves of the country; (ii) Implementation of any foreign exchange transactions to pay imports that have resulted from disbursements, in the form of assets or lines of credit export promotion and whose reimbursement must occur within their amortization; (iii) Payment of goods coming from donations, emergency aid or other, whose documentation explicitly dispenses foreign exchange payment. E) Forms of Import Are the following: - Consigned Imports: when the payment to the exporter (consignor) depends on the submission by the importer (consignee) to the Bank, in the maturity date of sale of the goods, of the following documents: (i) mandatory documents mentioned above; (ii) document with evidence of goods sold, and in case of loss or deterioration of the same, certified by the competent body.
- Goods Entered in Free Customs Warehouse: the import process should include the Customs document as proof of entry of the goods in free customs warehouse. If the payment takes place before the issuance of such document, the process shall contain a copy of the application for opening of documentary credit against the submission of dispatch of goods or remittance letter including such document, or, alternatively, the document certifying the remittance of goods. - Goods Imported under Temporary Regime and Goods to Customs Warehouses: the process should contain the mandatory documents already mentioned above in the case of post payments. The Angolan banking institutions are required to keep current and complete records of each import, export and re-export transaction accomplished in the country, in order that the National Bank of Angola can, whenever it so requests, proceed to the respective control. This new regime enters into force in June 19, 2012.