Basic information
Outline of the 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.
Product coverage
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.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
The existing rule is aligned with the policy of non-internationalization of the PHP and the objective of having a better control of liquidity and overall monetary conditions.
Products under restriction as to the quantity or value of imports
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).
Questions for products under restriction as to the quantity or value of imports
See Answers 6.1-6.11.
The system applies to products originating from which country?
The requirement applies to import and export of legal tender Philippine local currencies, irrespective of the country involved.
Expected duration of licensing procedure
Unless amended or modified by subsequent policy, issuance of
letter-authority under Section 4 of the FX Manual will continue to be enforced. Subsequent repeal and/or modification of the rule on
cross-border transfer of legal tender Philippine currency will depend on the conditions prevailing in the Philippine economy, as assessed by the BSP.
Legal requirements
Is the licensing statutorily required?
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.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Any individual/entity may apply for prior written authorization from the BSP for cross-border transfer of Philippine local currency exceeding PHP50,000.00.
Is there a registration fee?
The BSP does not charge any fee to applicants.
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Bangko Sentral ng Pilipinas, International Operations Department
Address
A. Mabini St. cor. P. Ocampo St., Malate Manila, Philippines 1004
Telephone
+632 708-7107
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Bangko Sentral ng Pilipinas, International Operations Department
Documentation requirements
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:
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For testing/calibration/configuration of money counting/ sorting machines |
For numismatics (collection of currency) and currency awareness |
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Window of submission of an application
How far in advance of importation must application for a licence be made?
Not applicable.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Not applicable.
Issuing the license
Can a licence be granted immediately on request?
Not applicable.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Not applicable.
Which administrative body is responsible for approving application of licences?
Not applicable.
Must the applications be passed on to other organs for visa, note or approval?
Not applicable.
Are there any other conditions attached to the issue of a licence?
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.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
None.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
None.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
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.
Are the reasons for any refusal given to applicants?
Have applicants a right of appeal in the event of refusal to issue a licence?
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
Not applicable.
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.
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.
Conditions of licensing
What is the period of validity of a licence? Can the validity 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.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
None.
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.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
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.
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?
The following questions are only 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)
Where is information on allocation and formalities for licences published? 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?
The FX Manual, including its appendices and annexes, is posted at the BSP website and may be downloaded at:
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FX Manual |
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Appendices and Annexes |
The Circulars amending pertinent sections of the FX Manual are also posted at the BSP website (Regulations Section) and published either in the Official Gazette or in a newspaper of general circulation in the Philippines for information of the general public.
Is the size of the quota determined: on 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 a 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.
Are licences allocated 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 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.
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?
Not applicable.
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.
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.
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.
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.
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?
Not applicable.
In cases where imports are allocated 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?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable.