QuestionsQuestions (BSP CIRCULAR NO. 1248)
It provides rules on the use of the Philippine peso and other ASEAN currencies in intra-ASEAN trade, governing what currencies may be used for payments of exports and imports among specified ASEAN countries.
Brunei, Indonesia, Malaysia, Singapore, Thailand, and the Philippines.
The Philippine peso may be used in payment of exports to or imports from any of the covered ASEAN countries.
Brunei dollar, Indonesian rupiah, Thai baht, Singapore dollar, and Malaysian dollar.
All transactions must be covered by bank-documented payment forms.
No. The Central Bank shall not be asked to intervene in the clearing of any balances resulting from the operation of the scheme.
No. Transactions remain subject to existing trade regulations insofar as these do not concern the currency of payment. For example, import classification schemes and restrictions on physical transfer of pesos by individuals remain.
The Central Bank has the right to prohibit importation of any item for reasons such as health, safety, or security.
They must be reported under IOS Form 2, Schedule 1 (Daily Report on Export Negotiations) and Schedule 2 (Daily Report on Export Proceeds Received), with footnotes indicating the specific ASEAN currency and the corresponding amount received.
They must continue to be reported under IOS Form 3, Schedule 1 (List of Regular Import L/Cs opened) and Schedule 2a (Daily Report of Negotiations on Regular Import Letters of Credit).
All import and export transactions must be covered by letters of credit.
Export shipments must be covered by an Export Declaration/Permit (With Foreign Exchange Proceeds) indicating on the face thereof that payment is in Philippine pesos pursuant to the Circular.
It requires reporting on IOS Form 2 (Schedules 1 and 2) with footnotes specifying the ASEAN currency used and the corresponding amount received.
When peso is used: exports must be under letters of credit and the Export Declaration/Permit must explicitly state that payment is in Philippine pesos pursuant to the Circular.
Exports use IOS Form 2 (Schedules 1 and 2). Imports use IOS Form 3 (Schedules 1 and 2a).
It means Circular No. 1248 replaces Circular No. 1154 and any other Central Bank rules inconsistent with it, to the extent of inconsistency.
It was adopted on April 16, 1990, and the Monetary Board Resolution states it is effective immediately. This implies compliance with the rules was required upon issuance/effectivity date, unless otherwise provided.