Basic notions of repatriation in foreign transactions

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An important issue that Moldovan companies (or their foreign partners) should take into consideration when carrying out international transactions is the existence of a number of rather strict rules on the repatriation of export proceeds, goods and services received as a result of foreign transactions. This issue is governed by the Law No. 1466-XIII of 29 January 1998 "On the regulation of the repatriation of money, goods and services received as a result of foreign transactions".

The Law stipulates the obligation of companies registered in Moldova:

• to ensure the receipt of export proceeds or the return of advance payments for non-delivered import to their accounts in the banks in the Republic of Moldova; 
• to fulfil the import of goods and services after the performance of import payments; and
• to repatriate the proceeds or the assets received as a result of other foreign transactions.

The general terms within wich the repatriation should be performed are stipulated as follows:

• in case of sales contracts, barter and export commission sales contracts - within the terms stipulated by the contracts, but not more than 1 year from the date of the goods dispatch or the date of the payment for goods or services (18 months for contracts of purchasing vine and fruit planting stock).
• for processing contracts - within 60 calendar days from the day of finishing the technological cycle indicated in the contract.
• for leasing contracts - within the terms established according to the contract but not less than once a year.

The repatriation is controlled by the fiscal and customs authorities.

The penalty for not complying with the rules on repatriation is 0.1 % of non-repatriated sums (costs) for every day of delay, but not more than the respective sum of money or the cost of goods or services that are due to be repatriated.