Use of Peso and ASEAN Currencies in Trade

BSP Circular No. 1248 was issued pursuant to Monetary Board Resolution No. 705 dated July 20, 1990.
The Monetary Board Resolution No. 705 provided authority for the rules governing currency use in intra-ASEAN trade.
The rules apply as the operative BSP framework for peso and other ASEAN currency payments under the scheme.

BSP Circular No. 1248 establishes a scheme governing payment of exports and imports between the Philippines and specified ASEAN countries using the Philippine peso and selected ASEAN currencies.
The scheme is designed for intra-ASEAN trade payments while keeping trade regulation requirements intact where they do not concern the currency of payment.
The scheme limits BSP involvement in clearing balances resulting from currency-payment operations.

BSP Circular No. 1248 expressly identifies the ASEAN countries covered as Brunei, Indonesia, Malaysia, Singapore, Thailand and the Philippines.
BSP Circular No. 1248 expressly recognizes other ASEAN currencies for the scheme as: Brunei dollar, Indonesian rupiah, Thai baht, Singapore dollar, and Malaysian dollar.

Section 1 of BSP Circular No. 1248 allows the Philippine peso for payment of exports to or imports from any of the covered ASEAN countries.
Section 2 allows the Brunei dollar, Indonesian rupiah, Thai baht, Singapore dollar, and Malaysian dollar as acceptable currencies for payment of exports or imports.

Section 3 requires that all transactions under the scheme be covered by bank-documented payment forms.
Section 4 prohibits requesting the Central Bank to intervene in the clearing of balances resulting from operations under the scheme.

Section 5 provides that all transactions covered remain subject to existing trade regulations to the extent they do not concern currency of payment.
Section 5 preserves existing rules including: (a) the classification scheme for imports, and (b) the restriction on the physical transfer of pesos by individuals.
Section 5 maintains other existing trade regulatory requirements insofar as they are not about the currency used for payment.

Section 6 grants the Central Bank the right to prohibit the importation of any item for reasons of health, safety or security.

Section 7 requires that all export transactions using ASEAN currencies be reported under IOS Form 2.
Section 7 requires export reporting using Schedule 1 (Daily Report on Export Negotiations) and Schedule 2 (Daily Report on Export Proceeds Received).
Section 7 requires footnotes indicating the specific ASEAN currency used and the corresponding amount received.

Section 8 requires that all import transactions using ASEAN currencies continue to be reported under IOS Form 3.
Section 8 requires import reporting using Schedule 1 (List of Regular Import L/Cs opened) and Schedule 2a (Daily Report of Negotiations on Regular Import Letters of Credit).

Section 9 provides additional rules when the Philippine peso is used as payment.
Section 9(a) requires that all import and export transactions be covered by letters of credit.
Section 9(b) requires that export shipments under the scheme be covered by an Export Declaration/Permit (With Foreign Exchange Proceeds).
Section 9(b) requires the Export Declaration/Permit (With Foreign Exchange Proceeds) to indicate on its face that payment is in Philippine pesos pursuant to BSP Circular No. 1248.

BSP Circular No. 1248 supersedes Circular No. 1154 and any other Central Bank rules inconsistent with its provisions.
The supersession applies to rules that conflict with the scheme governing peso and ASEAN-currency payment in intra-ASEAN trade.