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Exchange Control Manual

Exchange Control Manual

The Exchange Control Manual is produced by the South African Reserve Bank and includes full information on exchange control regulations in South Africa. It provides a general understanding of the purpose, scope and regulations within the exchange control system in South Africa.

It can be used by banks, customers and interested parties as a guideline only as to the rules applied by the Financial Surveillance Department (FSD) of the South African Reserve Bank (SARB).

   
Section
A.
A
B.
B
C.
C
D.
D
D.1
Legislation, Regulations, Orders and Rules
 
D.2
Delegation of Powers
 
D.3
Liaison with Department of Finance
 
D.4
Functions of Authorised Dealers
 
D.5
Applications to the Financial Surveillance Department
 
D.6
Organisation of the Financial Surveillance Department
 
D.7
Territory of exchange controls
 
D.8
Resident and non-resident status
 
E.
E
F.
F
F.1
Introduction
 
F.2
G
2.1
Payments for merchandise imports
 
2.1.1
General requirements
 
2.1.2
Required procedures and documents
 
2.1.3
Purpose of control
 
2.1.4
Matters to be referred to the Financial Surveillance Department
 
2.1.5
Norms applied and factors considered
 
2.1.6
Payments on a cash-with-order basis
 
2.1.7
Payments by means of credit and/or debit cards
 
2.1.8
Acquisition of patents, copy-rights, trademarks, franchises and/or intellectual property in general
 
2.2
H
2.2.1
Purpose of control
 
2.2.2
Single discretionary allowance
 
2.2.2.1
Travel allowances and associated facilities
 
2.2.3
Temporary exportation of personal effects and jewellery
 
2.2.4
Temporary exportation of motor vehicles, caravans, trailers, horse-boxes and motor/sail boats overland and of ocean going yachts by residents
 
2.2.5
Renewal of passports, obtaining visas, copies of birth/death certificates, testimonials, degrees and/or diplomas
 
2.2.6
South African residents proceeding abroad on a temporary basis
 
2.2.7
Study facilities
 
2.2.8
Conference, congress, seminar and examination fees
 
2.2.9
Medical and dental expenses
 
2.2.10
Subscriptions
 
2.2.11
Export of South African Reserve Bank notes
 
2.3
I
2.3.1
Remittance of dividends profits and income from the RSA
 
2.3.2
Royalties and fees arising from the use of copyrights, designs, patents and trademarks
 
2.3.3
Directors' fees to non-residents
 
2.3.4
-
 
2.3.5
-
 
2.3.6
Legal fees to non-residents
 
2.3.7
Other fees
 
2.3.8
Advertising fees/ exhibition/trade fair expenses
 
2.3.9
Payments to visiting artistes, entertainers and sportsmen
 
2.3.10
Payments to foreign crew members calling at South African ports
 
2.3.11
Allowances for business travel
 
2.3.12
Air fares for overseas visitors
 
2.3.13
Travel between destinations outside the Republic
 
2.3.14
Freight payments and ships and aircraft disbursements
 
2.3.15
Transfer abroad of reinsurance premiums
 
2.3.16
Technical service payments
 
2.3.17
Registration of drugs
 
2.3.18
Registration on agrochemical products
 
2.3.19
Tender documentation
 
2.3.20
Tender guarantees/bid bonds
 
2.3.21
Performance guarantees
 
2.3.22
Court judgement payments
 
2.3.23
Refunds
 
2.3.24
Advance payment guarantees
 
2.3.25
Transportation costs and cash floats
 
2.3.26
Rental and lease payments
 
F.3
J
3.1
Payments by embassies, high commissions, legations, consulates-general, consulates and official overseas representatives
 
3.2
Payments by other foreign nationals who have taken up temporary residence in the Republic
 
3.2.1
Norms applied
 
3.2.2
General requirements
 
F.4
K
4.1
Purpose of control
 
4.2
Receipts from merchandise exports
 
4.2.1
General requirements
 
4.2.2
Sales periods and credit
 
4.2.3
Sale of currency
 
4.2.4
Special stipulations
 
4.2.4.1
Exports on a consignment basis
 
4.2.4.2
Replacement goods, short shipments and goods under guarantee
 
4.2.4.3
Export of defective goods for replacement
 
4.2.4.4
Export of advertising matter and trade samples
 
4.2.4.5
Return of goods for which no payment has been made
 
4.2.4.6
Temporary export of goods to Angola, Botswana, Democratic Republic of the Congo, Malawi, Mauritius, Mocambique, Seychelles, Tanzania, Zambia and Zimbabwe
 
4.2.4.7
Export of philatelic and numismatic items
 
4.2.4.8
Temporary exportation of motor vehicles, caravans, trailers, horse-boxes and motor/sail boats.
 
4.2.4.9
Export of motor vehicles in the possession of non-residents leaving the Common Monetary Area for any other country
 
4.2.5
-
 
4.2.6
-
 
4.2.7
Setting off foreign liabilities against foreign accruals
 
4.3
Other exports
 
4.3.1
Service receipts
 
4.3.2
Disposal of patents, copy-rights, trademarks, franchises and/or intellectual property in general
 
F.5
L
5.1
Gifts
 
5.1.1
Monetary gifts and loans
 
5.1.2
Gift parcels
 
5.1.3
Krugerrand coins
 
5.2
Donations
 
5.2.1
Donations to missionaries by private individuals
 
5.2.2
Donations to missionaries by religious bodies
 
5.2.3
Donations to charitable, religious or educational bodies
 
5.3
Maintenance
 
5.3.1
General requirements
 
5.3.2
Matters to be referred to the Financial Surveillance Department
 
5.3.3
Factors to be consider
 
5.4
Alimony and child support payments
 
5.5
M
5.5.1
Estates of persons regarded as permanent residents of the RSA at the time of death
 
5.5.1.1
Legacy transfers
 
5.5.1.2
Export of jewellery
 
5.5.1.3
Export of personal effects
 
5.5.1.4
Export of other assets
 
5.5.2
South African estates of persons, including emigrants, domiciled outside the CMA at the time of death
 
5.5.2.1
Legacy transfers
 
5.5.2.2
Export of jewellery and personal effects
 
5.2.3
Inheritances by South African residents from non-resident estates
 
5.6
N
5.6.1
Purpose of control
 
5.6.2
Norms applied and factors considered
 
5.6.3
Own-asset trust
 
5.6.3.1
Established prior to emigration
 
5.6.3.2
Established subsequent to emigration
 
5.6.4
Third-party funded trust
 
5.6.4.1
Emigrants
 
5.6.4.2
Original non-residents
 
5.6.5
Required procedures
 
5.7
Wedding expenses and Bar/Bat Mitzvah ceremonies
 
F.6
O
6.1
Foreign investment by South African residents
 
6.1.1
Private individuals (natural persons)
 
6.1.2
South African companies
 
6.1.2.1
Norms applied and factors considered
 
6.1.2.2
Investments not exceeding R500 million
 
6.1.2.3
Investments exceeding R500 million
 
6.1.2.4
Reporting requirement
 
6.1.2.5
Expansion of business abroad and remission of funds
 
6.1.3
Loans by residents to non-residents
 
6.1.4
Portfolio investments
 
6.1.4.1
Portfolio investments by residents
 
6.1.4.2
Portfolio investments by South African institutional investors
 
6.1.4.3
Prudential limit on foreign diversification by Authorised Dealers
 
6.1.4.4
South African Private Equity Funds
 
6.1.4.5
International Headquarter Companies
 
6.1.5
Share incentive schemes offered by foreign companies
 
6.1.6
Trade finance
 
6.1.7
Borrowing abroad by residents
 
6.1.7.1
Control over borrowing abroad by residents
 
6.1.7.2
Purpose of control
 
6.1.7.3
Authority to Authorised Dealers
 
6.1.7.4
Categories of loan finance
 
6.1.7.4.1
Trade finance, short-term working capital loans and long term loans
 
6.1.7.4.2
Loans from non-resident shareholders to affected persons
 
6.1.7.5
Fraudulent practices involving purported foreign loan facilities
 
6.1.8
P
6.2
Q
6.2.1
Local financial assistance to affected persons and non-residents
 
6.2.1.1
General restriction
 
6.2.1.2
Purpose of control
 
6.2.1.3
General requirements
 
6.2.1.4
Authority to Authorised Dealers
 
6.2.1.5
Matters to be referred to the Financial Surveillance Department
 
6.2.1.6
Applications to Authorised Dealers
 
6.2.1.7
Security given by non-residents
 
6.2.1.8
Loans from non-resident shareholders
 
6.2.2
Disinvestment from the RSA
 
6.2.3
R
6.2.4
S
6.2.4.1
Definitions
 
6.2.4.2
Control on dealings in non-resident owned securities
 
6.2.4.3
Form of control
 
6.2.4.4
Purpose of control
 
6.2.4.5
General requirements
 
 
Securities held on behalf of non-residents
 
 
Securities purchased by non-residents
 
6.2.4.6
Duties of banks, stockbrokers and transfer secretaries
 
6.2.5
T
6.2.5.1
Purpose of control
 
6.2.5.2
Qualification for emigration facilities
 
6.2.5.3
Application for emigration facilities
 
6.2.5.4
Facilities for which emigrants qualify
 
 
Cash allowance
 
 
Foreign capital allowance
 
 
Export of household and personal effects and motor vehicles
 
6.2.5.5
Authority to Authorised Dealers
 
6.2.5.6
Matters to be referred to the Financial Surveillance Department
 
6.2.5.7
Time and method of provision of exchange
 
6.2.5.8
Control of blocked South African assets
 
6.2.5.9
Procedures for remaining assets
 
6.2.5.10
Effect of emigration on emigrants' borrowings in South Africa
 
6.2.5.11
Effect of emigration on the local borrowings of a South African company in which an emigrant retains an equity interest
 
6.2.5.12
South African income accruing to emigrants
 
6.2.5.13
Emigration of a Lloyd's of London member
 
6.2.5.14
Income tax refunds
 
6.2.5.15
Retirement annuity policies
 
6.2.6
U
6.2.6.1
-
 
6.2.6.2
Requirements upon taking up permanent residence
 
6.2.6.3
Concessionary periods applicable to immigrants
 
6.2.6.4
Income on foreign assets accruing to immigrants
 
6.2.6.5
Other concessions available to immigrants
 
F.7
V
7.1
Hedging
 
7.1.1
General
 
7.1.2
Forward cover of hedging transactions between Authorised Dealers and residents
 
7.1.3
Forward cover of hedging transactions between Authorised Dealers and non-residents
 
7.1.4
Hedging instruments
 
7.1.5
Hedging operations
 
7.1.6
Foreign currency against foreign currency
 
7.1.7
Surrenders of extensions by means of swaps
 
7.2
-
 
7.3
Foreign bank accounts
 
7.3.1
Purpose of control
 
7.3.2
Norms applied and factors considered
 
7.3.3
Customer foreign currency accounts
 
7.4
Purchase and sale of gold
 
7.5
Importation and exportation of bank notes
 
7.5.1
Foreign currency bank notes
 
7.5.2
South African Reserve Bank notes
 
7.6
Insurance by residents of the Republic
 
7.7
Merchanting trade
 
7.8
Barter and counter trade
 
7.9
W
7.9.1
Introduction
 
7.9.2
General
 
7.9.3
Measures applicable to inward listed debt instruments, derivative instruments and equity issues on the JSE Limited
 
7.9.3.1
Types of instruments
 
7.9.3.2
Acquisition issue
 
7.9.3.3
Issue of shares for cash
 
7.9.3.4
Capital raising through new debt listings
 
7.9.3.5
Rights offers
 
7.9.3.6
Suspension of listings
 
7.9.3.7
Main index inclusion
 
7.9.3.8
Denomination of debt instruments, equity issues and derivative instruments
 
7.9.4
Measures applicable to inward listed debt instruments on BESA
 
7.9.4.1
Denomination of debt instruments
 
7.9.4.2
Types of instruments
 
7.9.4.3
Capital raising through new listings
 
7.9.5
Special dispensation to local brokers to facilitate the trading of inward listed shares
 

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