[ BSP CIRCULAR NO. 1291, July 02, 1991 ]
RULES ON SPECIAL FOREIGN CURRENCY DEPOSIT ACCOUNT FOR EXPORTERS
1. Whenever the foreign exchange receipts of an exporter reaches US$100,000 or its equivalent in foreign currencies for the calendar year immediately preceding the exporter may, upon application with the Central Bank thru the Export Department, qualify to retain a portion of said receipts in a special foreign currency deposit account (SFCDA) with AABs, provided said exporter has no overdue export accounts, based on Central Bank records, and the applicant is a Central Bank-certified export-oriented firm, or registered with the Board of Investments (BOI ) or the Export Processing Zone Authority (EPZA).
2. The amount of such retention which may be deposited in the exporter s SFCDA shall be two percent (2%) of export receipts from each export shipment during the calendar year the retention authority is granted, but in no case shall the cumulative total deposits to the SFCDA for one calendar year exceed US$100,000.00.
3. Exporters authorized by the Central Bank to use an Intercompany Open Account (offsetting) Arrangement under Chapter VI-B of Central Bank Circular No. 1029 dated October 12, 1984 shall not be entitled to an SFCDA under these rules.
4. The application for retention shall be filed in letter form thru the AAB concerned and shall be supported by the following documents:
5. The SFCDA may be used to pay any or all of the following expenses:
7. The unutilized balance of the SFCDA at the expiry date of the SFCDA authority shall be sold for pesos to the Authorized Agent Bank (AAB) concerned within thirty (30) days thereafter unless a renewal of the authority is applied for by the exporter and granted by the Central Bank.
8. Within thirty (30) days after the expiration of the SFCDA authority the exporter shall submit a summary report on deposits to and withdrawals from the SFCDA.
9. All expenses paid from the SFCDA, shall be supported by receipts/bills of accounts of payees and copies thereof shall be attached to the summary report required under paragraph No. 8 hereof.
10. Exporters that have qualified to the retention privilege under this Circular which fail to achieve a ten percent (10%) progressive increase in their yearly export receipts shall be disqualified to avail of the retention privilege in the succeeding year. During the year of disqualification, however, should the exporter achieve a 10% increase in export receipts over and above its export receipts which was the basis for the last retention authority granted, the retention privilege may be restored upon application by the exporter in the manner prescribed above.
This Circular shall take effect immediately.
Adopted: 02 July 1991
(SGD.) JOSE L. CUISIA, JR.
Governor
2. The amount of such retention which may be deposited in the exporter s SFCDA shall be two percent (2%) of export receipts from each export shipment during the calendar year the retention authority is granted, but in no case shall the cumulative total deposits to the SFCDA for one calendar year exceed US$100,000.00.
3. Exporters authorized by the Central Bank to use an Intercompany Open Account (offsetting) Arrangement under Chapter VI-B of Central Bank Circular No. 1029 dated October 12, 1984 shall not be entitled to an SFCDA under these rules.
4. The application for retention shall be filed in letter form thru the AAB concerned and shall be supported by the following documents:
- Articles of incorporation/partnership/registration of business name, and list of current board members officers;
- Latest audited financial statements showing the foreign exchange receipts from exports during the year immediately preceding the date of filing of the application; and
- AAB certification of inward remittance of foreign exchange receipts from exports sold for pesos to the AAB concerned.
5. The SFCDA may be used to pay any or all of the following expenses:
- commissions to agents abroad not exceeding 5% of total invoice value if supported by CB-approved commission agreement;
- freight/insurance costs to shipping/insurance firms abroad due on export shipments on CIF or C &F basis; and
- supervision/survey fees to foreign surveyors to determine outturn weights of export shipments at port of discharge, in accordance with international trade practice; and
- advertising and other promotional expenses incurred abroad not exceeding US$5,000.00 p.a.
7. The unutilized balance of the SFCDA at the expiry date of the SFCDA authority shall be sold for pesos to the Authorized Agent Bank (AAB) concerned within thirty (30) days thereafter unless a renewal of the authority is applied for by the exporter and granted by the Central Bank.
8. Within thirty (30) days after the expiration of the SFCDA authority the exporter shall submit a summary report on deposits to and withdrawals from the SFCDA.
9. All expenses paid from the SFCDA, shall be supported by receipts/bills of accounts of payees and copies thereof shall be attached to the summary report required under paragraph No. 8 hereof.
10. Exporters that have qualified to the retention privilege under this Circular which fail to achieve a ten percent (10%) progressive increase in their yearly export receipts shall be disqualified to avail of the retention privilege in the succeeding year. During the year of disqualification, however, should the exporter achieve a 10% increase in export receipts over and above its export receipts which was the basis for the last retention authority granted, the retention privilege may be restored upon application by the exporter in the manner prescribed above.
This Circular shall take effect immediately.
Adopted: 02 July 1991
Governor