Sunday, April 18, 2010

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.

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7 Comments:

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?

Thanks,
-Victor

 
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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