Article 9. Requirement of repatriation of national and (or) foreign currency for export or import of the Law on Currency Regulation and Currency Control

Home / Laws / Article 9. Requirement of repatriation of national and (or) foreign currency for export or import of the Law on Currency Regulation and Currency Control

1. The repatriation of national and (or) foreign currency for export or import consists in crediting it to bank accounts with authorized banks.:

1) revenue in national and (or) foreign currency from exports;

2) national and (or) foreign currency transferred by a resident in favor of a non-resident for making import payments, in cases of non-fulfillment or incomplete fulfillment of obligations by a non-resident.

2. A resident (with the exception of a branch (representative office) of a foreign organization) is obliged to ensure the repatriation of national and (or) foreign currency within the time limits stipulated by the currency agreement on export or import.

The period in which a resident (with the exception of a branch (representative office) of a foreign organization) fulfills the repatriation requirement (hereinafter referred to as the repatriation period) is determined based on the terms of fulfillment of obligations by the parties to a currency agreement on export or import in accordance with the procedure established by the rules for export–import currency control in the Republic of Kazakhstan.

The terms of a foreign exchange agreement for export or import, which is subject to the repatriation requirement, should provide for deadlines for the fulfillment of obligations by non-residents. Authorized banks servicing foreign exchange contracts for export or import have the right to require a resident to specify the deadline for repatriation.

The national and (or) foreign currency subject to repatriation and credited to accounts in foreign banks and international financial organizations must be transferred to the accounts of a resident (with the exception of a branch (representative office) of a foreign organization) in authorized banks before the expiration of the repatriation period.

3. The repatriation requirement is considered partially or fully fulfilled in the following cases::

1) crediting national and (or) foreign currency to the resident's accounts in foreign banks and international financial organizations intended to secure the resident's obligations in accordance with the terms of a financial loan attracted from a non-resident or to secure the activities of the resident's branches (representative offices) opened abroad;

2) the use of foreign currency received by residents from holding exhibitions, sports, cultural and other similar events outside the Republic of Kazakhstan to cover expenses during their holding;

3) crediting foreign currency earnings to accounts in foreign banks, international financial organizations, and resident transport organizations in order to pay for expenses related to the payment of port and other fees on the territories of foreign states and servicing vehicles of such transport organizations and their passengers located outside the Republic of Kazakhstan, as well as expenses for ensuring the activities of those located outside the Republic of Kazakhstan; branches (representative offices) of such transport organizations on the territory of the Republic of Kazakhstan;

4) termination of a non-resident's obligation by offsetting a counterclaim under currency export or import agreements;

5) termination of a non-resident's obligation by replacing the original obligation that existed between the resident and the non-resident with another obligation between the same persons providing for a different subject or method of performance;

6) receiving an insurance payment upon the occurrence of an insured event under insurance contracts for the risk of non-fulfillment of obligations by a non-resident.

4. If a resident assigns the right of claim to a non-resident to another resident, the corresponding obligation to ensure repatriation of exports or imports within the prescribed period passes to the resident who accepted the right of claim.

Under currency export or import agreements that are subject to the repatriation requirement, a resident's assignment of his right of claim to a non-resident in favor of an individual who is not a business entity, as well as a gratuitous assignment by a resident to a non-resident of his right of claim to another non-resident is not allowed.

5. The State Revenue Body, together with the National Bank of the Republic of Kazakhstan and currency control agents, monitors the movement of money and other fulfillment of obligations under certain currency export or import agreements in order to monitor the fulfillment of the repatriation requirement by residents (with the exception of branches (representative offices) of foreign organizations).

For the purposes of this monitoring, the authorized bank servicing the export or import currency agreement assigns it an account number, which is subsequently indicated when submitting reports on the export or import currency agreement to the currency control authorities.

6. The procedure for obtaining accounting numbers for currency export or import agreements, monitoring the movement of money and other fulfillment of obligations under such agreements, including forms and deadlines for submitting reports and deadlines for submitting documents confirming the occurrence, fulfillment and termination of obligations and (or) circumstances that affect the terms and (or) conditions for the repatriation of national and (or) foreign currency, as well as conditions and criteria, including the threshold value of the amount of the currency agreement for export or import, in the presence of which foreign exchange contracts for export or import are subject to control of the fulfillment of the repatriation requirement, and exceptions to the repatriation requirement, the procedure for transmitting information and (or) documents on foreign exchange contracts for export or import are determined by the rules for the implementation of export-import currency control in the Republic of Kazakhstan.

This Law regulates public relations related to the implementation of currency transactions, defines the goals and objectives of currency regulation and currency control.

President

Republic of Kazakhstan

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