Question & AnswerQ&A (BSP Circular No. 874)
A person may not import or export, nor bring into or take out of the country, legal tender Philippine notes and coins exceeding PHP10,000.00 without authorization by the BSP.
Electronic transfer is defined as a system where the authority to debit or credit an account is provided by wire, with or without a source document being mailed to evidence the authority.
Authorized payment arrangements for imports include Letter of Credit (L/C), Documents Against Payment (D/P), Documents Against Acceptance (D/A), Direct Remittance (DR), Advance Payment, Open Account (O/A) including intercompany netting arrangements among non-bank related parties.
Related parties refer to non-bank parent/subsidiaries/affiliates/head office/branch, with the intercompany netting arrangement conducted between a resident and a non-resident.
An affiliate is a non-bank entity linked directly or indirectly to the non-bank by ownership, control, or power to vote from 10% to 50% of outstanding voting stock, interlocking directorship/officership, common stockholders owning 10% to 50%, management contracts directing policies, or permanent proxy or voting trusts constituting 10% to 50% ownership.
No, intercompany netting arrangements may be used for trade in services settlement but not for the settlement of foreign/foreign currency loans and investments.
AABs, OBUs, and AAB-forex corps must submit a Report on Transactions under Intercompany Netting Arrangements weekly within five banking days from the end of the reference week via hard copy or email to BSP.
Private sector non-bank borrowers must maintain a long-term debt-to-equity ratio of 75/25 or better for the entire duration of their foreign/foreign currency loans unless otherwise allowed by the BSP.
No, short-term interbank loans like interbank call loans are allowed without prior BSP approval.
This Circular takes effect 15 calendar days after its publication either in the Official Gazette or in a newspaper of general circulation in the Philippines.
Yes, the peso amount of the international Passenger Service Charge (IPSC) refunded to exempt outbound passengers, including PSC delegations and OFWs, is excluded from the PHP10,000 limit, provided refund is made before departure.
Payments for exports may be made under modes such as Open Account (O/A) including intercompany netting among non-bank related parties, and Consignment, among others, without prior BSP approval.