Statistics Act, 1999
R 385
Currency and Exchanges Act, 1933 (Act 9 of 1933)RegulationsRegulations in addition to Exchange Control Regulations, 1961Notice No. R. 603 of 1986 |
Notice No. R. 603
27 March 1986
The State President has in terms of section 9 of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933), made the regulations contained in the Schedule:
SCHEDULE
| 1. | In these Regulations, unless the context indicates otherwise— |
"approved"
means approved for the specific purposes of these Regulations;
"documentary bill"
means a bill of exchange under which an amount is payable only against or after presentation of a specified bill of lading or any other similar document which serves as evidence of the despatch or receipt of specific goods or services;
"documentary letter of credit"
means a letter of credit in terms of which an amount is to be paid or a bill is to be drawn or accepted only against or after presentation of a specified bill of lading or any other similar document which serves as evidence of the despatch or receipt of specific goods or services;
"foreign government"
means any foreign government excluding the Government of the Republic of Transkei, Bophuthatswana, Venda or Ciskei;
"Public Investment Commissioners" means the Public Investment Commissioners established by the Public Investment Commissioners Act, 1984 (Act No. 45 of 1984);
"special restricted account"
means an account opened with the Public Investment Commissioners for the purpose of the payment into such account of any amount which may in terms of regulation 2 not be paid to or in favour of, a foreign creditor.
| 2. | No person shall with effect from 1 January 1994 until 15 August 2001 make payment to or in favour of any foreign creditor except payment into a special restricted account and except payment in respect of – |
[Words preceding paragraph (a) substituted by regulation 2(a) of Government Notice No. R2016 of 1993]
| (a) | an agreement entered into by an importer for the importation of goods or services, including payment for freight, insurance and other costs relating to such imports, provided— |
| (i) | such goods or services were not delivered or rendered in the Republic prior to 1 January 1985; and |
| (ii) | in the case of such goods or services which were or are delivered or rendered in the Republic during the period from 1 January 1985 up to and including 31 May 1986— |
| (aa) | payment is made in terms of a documentary letter of credit or in terms of any acceptance or bill drawn under such letter of credit; or |
| (bb) | payment is made directly to the foreign supplier of such goods or services or to a collecting banker on his behalf; or |
| (cc) | payment is made in terms of a documentary bill accepted by the importer of such goods or services or by a banker on behalf of such importer; |
[Regulation 2(a) substituted by regulation 2 of Government Notice No. R1078 of 1986]
| (b) | interest in accordance with a rate and reasonable costs payable on outstanding loans as approved by the Minister of Finance or a person designated by him; |
(c)
| (i) | bearer bonds or bearer notes listed or quoted on any stock exchange on 28 August 1985 and issued by or on behalf of the State or any other person; or |
| (ii) | notes issued by the Public Investment Commissioners in accordance with their powers under regulation 4 of these regulations; or |
| (ii) | bearer bonds or bearer notes, as approved by the Minister of Finance or a person designated by him, issued by or on behalf of the State or any other person; |
[Regulation 2(c) substituted by regulation 2(b) of Government Notice No. R2016 of 1993]
| (d) | loans guaranteed by a foreign government or an agency of such government; |
| (e) | debts payable to international organisations of the United Nations or the Bank for International Settlements; |
| (f) | the financial obligations of the South African Reserve Bank, provided that such obligations do not arise from a special restricted account as defined in regulation 4A of the Exchange Control Regulations published under Government Notice R. 1111 of 1 December 1961, as amended, or from a currency transfer guarantee issued by the South African Reserve Bank prior to 2 September 1985; |
(g)
| (i) | new loans, including interest and costs thereon, provided such loans, interest and costs have been approved by the Minister of Finance or a person designated by him, and provided such loans have been granted on or after 2 September 1985 to any person in the Republic and are not for the replacement of an existing loan; or |
| (ii) | such portions of loans, including interest and costs thereon, granted to any person in the Republic prior to 2 September 1985, which are drawn by or paid to the borrower on or after 2 September 1985 with the approval of the Minister of Finance or a person designated by him; |
| (h) | any amount from an account with a registered financial institution of a person resident outside the Republic, provided such payment has been approved by the Minister of Finance or a person designated by him; or |
| (i) | any payment of a current nature as authorised under the Exchange Control Regulations published by Government Notice R. 1111 of 1 December 1961 , as amended. |
| 3. | A banking institution which has outside the Republic established or acquired a subsidiary or opened a branch office shall take the necessary steps to freeze and prevent the repayment by such subsidiary or branch office of liabilities of such subsidiary or branch office except in respect of— |
| (a) | the repayment of such liability which is made out of the proceeds of the realisation of any asset which is held by such subsidiary or branch office outside the Republic; or |
| (b) | the repayment of liabilities aggregating, in respect of any single creditor, an amount of less than 50 000 United States Dollars (or an equivalent amount in any other currency) approved by the Minister of Finance or by a person designated by him. |
4.
| (a) | Notwithstanding anything to the contrary contained in any other law the Public Investment Commissioners shall— |
| (i) | open and administer special restricted accounts for the achievement of the purposes of these regulations; and |
| (ii) | have power to issue notes, subject to such provisions as they may from time to time determine, in exchange for any foreign creditor's claims, or part thereof, in respect of a special restricted account, but not otherwise. |
[Regulation 4(a) substituted by regulation 3(a) of Government Notice R2016 of 1993]
| (b) | Any payment made into a special restricted account in terms of these regulations shall, to the extent of the sum so paid and upon the issuance by the Public Investment Commissioners of a confirmation of deposit, in relation to the deposit resulting from such payment, to the foreign creditor in whose favour such payment has been made, in a form approved by the Minister of Finance or by a person designated by him, operate as a valid discharge to the person so making payment. |
[Regulation 4(b) substituted by regulation 3 of Government Notice No. R1078 of 1986]
| (c) | The sum standing to the credit of a special restricted account shall— |
| (i) | bear interest which shall be calculated and be payable in a manner, and at a rate, which shall be determined from time to time by the Minister of Finance or by a person designated by him; |
| (ii) | be a debt due by and be repaid by the Public Investment Commissioners in such manner and in such instalments and on such conditions as may be determined from time to time by the Minister of Finance or by a person designated by him, to the foreign creditor in whose favour such sum has been paid into the special restricted account; |
| (iii) | until such time as it is repaid to the foreign creditor in terms of subparagraph (ii) or is paid to another person at the request of the foreign creditor – |
| (aa) | be held and retained by the Public Investment Commissioners on such terms and conditions as may be determined by the Minister of Finance or a person designated by him; |
| (bb) | be dealt with only in such manner and in accordance with such conditions as may be determined from time to time by the Minister of Finance or by a person designated by him. |
| (d) | All the obligations and liabilities of the Public Investment Commissioners with regard to— |
| (i) | amounts paid into special restricted accounts and any resulting deposits; or |
| (ii) | any notes issued by the Public Investment Commissioners in accordance with their powers under paragraph (a), |
shall be the obligations and liabilities of the State.
[Regulation 4(d) substituted by regulation 3(b) of Government Notice R2016 of 1993]
5. The Minister of Finance
| (a) | or a person designated by him may, on such conditions as he may deem fit, exempt any person from any of or all the provisions of these regulations, and may at any time amend or withdraw such exemption or condition; |
| (b) | may, on such conditions (which may include warranties, waivers, undertakings and guarantees) as he may deem fit, on behalf of the State enter into agreements with and make offers to such persons as he may deem necessary, with regard to any matter which directly or indirectly relates to payments which are prohibited in terms of these regulations. |
| 6. | These regulations shall be in addition to and shall not be in substitution of the Exchange Control Regulations published by Government Notice R. 1111 of 1 December 1961, as amended. |
| 7. | Any person who contravenes or fails to comply with any provision of regulation 2 or 3 or any condition referred to in regulation 5 shall be guilty of an offence and liable on conviction to a fine not exceeding R250 000 or to imprisonment for a period not exceeding five years, or to both such fine and such imprisonment. |
8.
| (a) | The regulations published by Government Notice R. 2868 of 23 December 1985, are hereby repealed. |
| (b) | A special restricted account opened by virtue of the provisions of regulation 2 of the regulations repealed by subregulation (a), shall continue to exist and shall be deemed to have been opened by virtue of the provisions of regulation 2. |
| 9. | These Regulations shall come into operation on 1 April 1986. |
