Sunday, April 18, 2010

Basic notions of repatriation in foreign transactions

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.

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At Tuesday, May 11, 2010 9:58:00 PM, Blogger Victor said...

Aleksei, I haven't been in Moldova since 1991, and many of the street names and "mikro-rayoni" have changed.

Do you remember Rashkanovka? What is it called now?


At Friday, May 14, 2010 10:36:00 PM, Blogger Alexei Ghertescu said...

A bit of offtopic, but OK.

I moved to Moldova only in 1992, so I hardly know the old names of streets and districts. However, Ryshkanovka looks to have remained Ryshkanovka :))

At Friday, May 14, 2010 10:54:00 PM, Blogger Victor said...

This comment has been removed by the author.

At Friday, May 14, 2010 10:58:00 PM, Blogger Victor said...

Thanks Alexei, I know it's off topic, sorry :) I couldn't find it on the maps, so I thought they renamed it something else.

Where are you from originally?

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