What applies to foreign currency operations on export or import?
Export - export of goods from the territory of the Republic of Kazakhstan, delivery of works, provision of services, a partial transfer of exclusive rights for intellectual property items, property lease by a resident of the Republic of Kazakhstan to a non-resident of the Republic of Kazakhstan.
Import - the import of goods into the territory of the Republic of Kazakhstan, delivery of works, provision of services, a partial transfer of exclusive rights for intellectual property items, property lease by a non-resident of the Republic of Kazakhstan to a resident of the Republic of Kazakhstan.
What is accounting registration of foreign exchange agreement on export or import?
Accounting registration of a foreign exchange agreement for export or import is a procedure for assigning an account number to a foreign exchange agreement for export or import for the subsequent submission of reports on the fulfillment of obligations under such an agreement in order to monitor the fulfillment of the repatriation requirement.
The procedure for an exporter or importer to obtain an account number under a foreign exchange agreement for export and import, conditions and criteria, including the threshold value of the amount of a foreign exchange agreement for export and import, in the presence of which the foreign exchange agreement for export and import is subject to control over compliance with the repatriation requirement, are set out in the Rules for Export -import currency control, jointly approved by the resolution of the Board of the National Bank of the Republic of Kazakhstan dated September 29, 2023 No. 78 and the order of the Deputy Prime Minister - Minister of Finance of the Republic of Kazakhstan dated October 4, 2023 No. 1054.
What is repatriation?
The requirement to repatriate national and/or foreign currency means the need to return to the country 1) foreign exchange earnings for exports and 2) advance payments for imports in cases of non-fulfillment or incomplete fulfillment of obligations by a non-resident.
Control over compliance by an exporter or importer with the repatriation requirement under a foreign exchange agreement for export or import from January 1, 2024 is carried out by the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, including its territorial divisions.
What foreign exchange contracts for export or import are subject to accounting registration?
Foreign exchange contracts for export or import in an amount exceeding 50 thousand US dollars in equivalent, or foreign exchange contracts for export or import, on the date of conclusion of which there is no contract amount, are subject to accounting registration.
Who should apply for account registration?
An exporter or importer is a resident of the Republic of Kazakhstan (a legal entity, its branch, as well as an individual entrepreneur), who has entered into a foreign exchange agreement for export or import with a non-resident, or has accepted the right of claim against a non-resident as a result of an assignment of a claim, or has accepted a debt to a non-resident as a result of the transfer of a debt by such an agreement
Where to apply for accounting registration of a foreign exchange agreement for export or import
An exporter or importer for accounting registration applies to the authorized bank servicing his bank account in cases of:
- - payments and (or) money transfers using accounts opened with an authorized bank (its branch);
- - payments and (or) money transfers using accounts opened with an authorized bank (its branch) and a foreign bank.
An exporter or importer for accounting registration applies to the territorial branch of the National Bank in cases of making payments and (or) money transfers using an account in a foreign bank to service a financial loan attracted from a non-resident or to ensure the activities of branches (representative offices) of a resident opened abroad in accordance with subparagraph 1) of paragraph 3 of Article 9 of the Law of the Republic of Kazakhstan “On Currency Regulation and Currency Control”.
When to apply for account registration?
Before the start of fulfillment of obligations under a foreign exchange agreement for the export or import of one of the parties.
What documents to provide for account registration?
For accounting registration, the exporter or importer submits:
1) an application for acceptance of a foreign exchange agreement on export or import for currency control in the prescribed form;
2) original or copy of the foreign exchange agreement on export or import. If a foreign exchange agreement on export or import is concluded in a foreign language, then its translation into Kazakh or Russian is provided.
When receiving an account number from a territorial branch of the National Bank of the Republic of Kazakhstan, the exporter or importer additionally submits a document with sample signatures.
Time frames for accounting registration
Within two business days from the day when an exporter or importer submits all necessary documents.
What are provisions for refusal to assign a registration number?
- Presence in the currency contract on export or import conditions that contradicts to the requirements of legislation
- Inconsistency in the signature of the exporter or importer in the application for currency control with the signature sample in the document with the signature samples
- In case of existence of suspicions that business relations shall be used by the client for legalization (аnti-money laundering) or combating the financing of terrorism.
The exporter or importer is obliged to ensure compliance with the requirement for repatriation of national and (or) foreign currency within the time limits stipulated by the foreign exchange agreement for export or import.
Is there liability for violating the procedure for obtaining an account number for a currency agreement and submittion of information, documents and reports on it?
Yes, there is administrative responsibility.
Is there any liability for failure to repatriate the currency?
Yes, there is administrative responsibility.
Who conducts the currency control requirement about repatriation of currency?
Currency control over the fulfilment by the exporter or importer of the requirement of repatriation under the currency contract for export or import from 1 January 2024 is carried out by the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, including its territorial subdivisions.
What reports are required to be submitted by exporters or importers?
The exporter or importer must submit reports when making payments and (or) transfers of money through an account in a foreign bank under a foreign exchange agreement for export or import.
The report is submitted monthly until the 20th (twentieth) day (inclusive) of the month following the reporting period.
The report is submitted in the prescribed form, which includes:
1) information on the fulfillment of obligations under foreign exchange contracts for export or import through an account in a foreign bank;
2) statements of an account in a foreign bank.
What are the conditions for withdrawing a contract from accounting registration?
A foreign currency contract for export or import is removed from registration after completion of the procedures for monitoring compliance with the repatriation requirement if there is a basis provided for in paragraph 26 of the Rules for Export-Import Currency Control in the Republic of Kazakhstan, approved by a joint resolution of the Board of the National Bank of the Republic of Kazakhstan dated September 29, 2023 No. 78 and by order of the Deputy Prime Minister - Minister of Finance of the Republic of Kazakhstan dated October 4, 2023 No. 1054.
