Legal tender Philippine local currency exceeding PHP50,000.00
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Prior written authorization from the BSP is required for cross-border transfer of the legal tender exceeding PHP50,000.00 by an individual or entity as provided under Section 4.1 of the BSP Manual of Regulations on Foreign Exchange Transactions (FX Manual), as amended.
Applications for prior written authorization to import local currency exceeding PHP 50,000.00 may be submitted to the BSP, through the International Operations Department (IOD), together with the pertinent information/documents relative to the request. The BSP will issue a written authorization/import clearance which may be presented to the Bureau of Customs (BOC) officers handling the importation.
However, the BSP allows cross-border transfer of local currency in excess of the PHP 50,000.00 threshold for the following purposes only: (a) for testing/calibration/configuration of money counting/sorting machines; (b) for numismatics (collection of currency); and (c) currency awareness.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The BSP prior written authorization requirement covers the importation and exportation by any individual/entity of legal tender Philippine local currency exceeding PHP50,000.00.
Q3. The system applies to goods originating in and coming from which countries?
The requirement applies to import and export of legal tender Philippine local currencies, irrespective of the country involved.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The requirement is based on existing BSP policy on cross-border transfer of Philippine local currency (e.g., for control of liquidity and overall monetary conditions).
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Section 4.1 of the FX Manual, specifically provides that any person may import or export, or bring with him into or take out of the country, or electronically transfer, legal tender Philippine notes and coins, check, money order and other bills of exchange drawn in peso against banks operating in the Philippines in an amount not exceeding PHP 50,000.00 without prior authorization from the BSP.
Amounts in excess of aforementioned limit shall require: (a) prior written authorization from the BSP; and (b) in case of physical cross-border transfer of Philippine currency, declaration of the whole amount brought into or taken out of the Philippines using the prescribed Currencies Declaration Form. The term “electronic transfer” as used herein shall mean a system where the authority to debit or credit an account (bank, business or individual) is provided by wire, with or without a source document being mailed to evidence the authority.
Furthermore, Sections 4.1 and 5.1 of the FX Manual states that BSP allows cross-border transfer of local currency in excess of the limit only for the following purposes: (a) testing/calibration/configuration of money counting/ sorting machines: (b) numismatics (collection of currency); and (c) currency awareness.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
See Answers 6.1-6.11.
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
The limit on the cross-border transfer of local currency exceeding PHP50,000.00 is on a per transaction basis. There is no restriction as to the number of importers who wish to apply for written authorization from the BSP to transport Philippine local currency exceeding PHP50,000.00, provided that the local currencies shall be used only for (a) testing/calibration/configuration of money counting/sorting machines; (b) for numismatics (collection of currency); and (c) currency awareness.
The prior written authorization being issued by the BSP regarding cross-border transfer of Philippine local currency exceeding PHP50,000.00 is on a per transaction basis. The written authorization should indicate the following information to ensure that said document will not be used for other purposes: (a) name of importer and address; (b) details of local currency involved (i.e., quantity, denomination, total amount, series); and (c) purpose.
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
The limit on the cross-border transfer of local currency exceeding PHP50,000.00 is on a per transaction basis. There is no restriction as to the number of importers who wish to apply for written authorization from the BSP to transport Philippine local currency exceeding PHP50,000.00, provided that the local currencies shall be used only for (a) testing/calibration/configuration of money counting/sorting machines; (b) for numismatics (collection of currency); and currency awareness.
The prior written authorization being issued by the BSP regarding cross-border transfer of Philippine local currency exceeding PHP50,000.00 is on a per transaction basis. The written authorization should indicate the following information to ensure that said document will not be used for other purposes: (a) name of importer and address; (b) details of local currency involved (i.e., quantity, denomination, total amount, series); and (c) purpose.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
The BSP's standard processing time for an application is 20 working days upon receipt of complete and sufficient documents/information/inputs required for evaluation.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
The applicant may proceed with the cross-border transfer of Philippine local currency upon receipt of BSP written authorization.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Applications for prior written authorization for cross-border transfer of Philippine local currency above PHP 50,000.00 is processed by the BSP (through the IOD) only.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
There is no limit on the number of applications for prior written authorization that will be processed by the BSP in a given year.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
All applications for prior BSP written authorization covering cross-border transfer of Philippine local currency exceeding PHP50,000.00 that will be used for eligible purposes cited in item 5 are accepted and favourably acted upon by the BSP if the required information/documents are provided by the importer to support the request and after the BSP’s conduct of due diligence.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Any individual/entity may apply for prior written authorization from the BSP for cross-border transfer of Philippine local currency exceeding PHP50,000.00.
The BSP does not charge any fee to applicants.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
What information is required in applications?
There is no standard/prescribed application form for cross-border transfer of Philippine local currency exceeding PHP50,000.00.
What documents is the importer required to supply with the application?
The applicant may submit an application letter to the BSP together with the following pertinent information/documents:
| For testing/calibration/configuration of money counting/ sorting machines | For numismatics (collection of currency) and currency awareness |
|---|---|
| a. Name and contact details of importer (i.e., address, telephone numbers, email address) | |
| b. Details of local currencies to be imported (i.e., quantity, denomination, total amount, series) | |
| c. Purpose | |
| d. Mode of transport of the local currencies [e.g., (i) to be hand carried by the importer or his duly authorized representative; (ii) via couriers/shipping agents] | |
| e. Name of duly authorized representative in the case of item d(i) | |
| f. Name of courier/shipping agents in the case of item d(ii) | |
| g. Copy of the bio-page of valid passport of the importer or his duly authorized representative | |
| h. Type/model of the money counting/sorting machines that will be tested/calibrated/configured |
Q11. What documents are required upon actual importation?
The importer only needs to present the BSP written authorization to the concerned officer at the Bureau of Customs (BOC) desk in airports/seaports or to the courier/shipping agent.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
None.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
None.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The prior written authorization issued by the BSP for cross-border transfer of Philippine local currency exceeding PHP50,000.00 does not have a specific validity period. The authority remains valid until such time the actual importation of Philippine local currencies covered by the written authorization takes place.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
None.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No. The BSP written authorization shall be used only by the applicant-importer indicated in said written authority.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
If the Philippine local currencies to be used for testing/calibration/configuration of money counting/sorting machines will be purchased from the BSP, the importer is required to submit to the BSP a written undertaking to return said local currencies to the Philippines within three months from completion of the testing/calibration/configuration of money counting/sorting machines. If the importer will purchase the Philippine local currencies from sources other than the BSP, the importer shall be required to submit to the BSP proof of source of Philippine pesos in addition to the aforementioned written undertaking.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There is no other requirement from the BSP for the cross-border transfer of Philippine local currency above PHP50,000.00 aside from the prior BSP written authorization, except for cases mentioned in item 17. It is understood, however, that the importer shall comply with: (a) the conditions cited in the BSP authorization, particularly on the return of Philippine local currencies to the Philippines; and (b) all applicable laws, rules and regulations (including the Anti-Money Laundering Act of 2001, as amended).
As mentioned in item no. 17, when requesting for prior BSP written authorization for the transfer of Philippine local currencies exceeding PHP50,000.00, the importer is required to submit to the BSP a written undertaking to return said local currencies to the Philippines within three months from completion of the testing/calibration/configuration of money counting/sorting machines. If the importer will purchase the Philippine local currencies from sources other than the BSP, the importer shall be required to submit to the BSP proof of source of Philippine pesos in addition to the aforementioned written undertaking.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Local currencies that will be returned to the Philippines may be reconverted to foreign currencies with any authorized agent bank (AAB) operating in the Philippines regardless of source of Philippine pesos (i.e., whether the local currencies were purchased from the BSP, any AAB or other sources), provided that there is an underlying transaction that is eligible to be serviced using foreign currency of the banking system (e.g., non-trade transactions) or specific approval from the BSP.