The Ministry of Economy and Finance ("MEF") and the Ministry of Mines and Energy ("MME") jointly published an Inter-Ministerial Prakas on the Formalities and Procedures for Payment of Non-Tax Financial Obligations for the Exportation of Mineral Products on February 21, 2024. The primary objectives of this regulatory framework are to facilitate the cash flow of mineral product exporters, promote transparency and efficiency in revenue collection, and prevent the accumulation of potential debts. This Inter-Ministerial Prakas will be implemented on April 1, 2024, and will govern all authorized exports of mineral products.

Minimum Deposit and Deductible Guarantee

Prior to the exportation of mineral resources, the exporter is obligated to pay:

• a minimum deposit equal to five percent royalties on the mineral products intended for export; and
• deductible guarantee based on the actual quantity exported; however, this guarantee must not be less than the non-tax financial obligations that are mandatory to be paid for the mineral products, as indicated on the requested exportation certificate or the actual quantity; failure to do so may result in the suspension of such exportation.

Timeline of payment

• Upon payment order receipt from the MME; and
• A minimum of five (5) business days prior to the commencement of mineral product exports.

Bank account at a partner commercial bank

• Minimum Deposit: Fund the account associated with the MEF and MME representative.
• Transfer the deductible deposit to the account specified in the payment order. The payment remarks should specify the following: the category of mineral products, the revenue source, and the date of payment.

Submission of Payment Certificate

• One copy each to MME and MEF (hard copy/soft copy);
• Submission can be done with the official-in-charge, via telegram or using other appropriate means.

Minimum Deposit

If any of the following conditions are met by the exporter, the minimum deposit shall be seized for inclusion in the national budget:

• Noncompliance with the payment of non-tax financial obligations and/or other payments as specified in this Inter-Ministerial Prakas and other applicable regulations;
• Penalties imposed by the MME on exports as a result of legal infractions;
• Owing to the breach of relevant legislation and regulations, the authorized quota for exportation has been revoked, as has the mining license.
• It is important to acknowledge that the exporter remains culpable for the financial obligations and penalties listed in the relevant laws and regulations despite this seizure.

Other obligations

• Monthly Report: Each first week of the subsequent month, the exporter is required to provide MME with a monthly report, of which a copy must be submitted to MEF with the payment receipt and customs declaration from the previous month attached for verification purposes.
• Withdrawal of Minimum Deposit: To withdraw the minimum deposit subsequent to the completion of the exportation, the exporter is required to submit an application to MME, contingent upon the exporter having duly and completely fulfilled all obligations. The reimbursement will be processed following the MEF's sanction, as per the MME's request.

Restrictions

The residual deductible guarantee cannot be withdrawn by the exporter. Nonetheless, this guarantee may be applied to the resolution of subsequent exportation's non-tax financial obligations.