FOREIGN EXCHANGE REGULATIONS

Exchange Control

Exchange Control in Solomon Islands is administered by the Central Bank of Solomon Islands, on behalf of the Solomon Islands Government, in terms of the Exchange Control (Foreign Exchange) Regulations 1977 made under section 3 of the Exchange Control Act 1976. This provides for the control of all financial transactions between residents of Solomon Islands and residents of other countries. The International Department is responsible for administering Exchange Control, thus the Chief Manager of the department is the comptroller of foreign exchange.

Delegation of Authority – Authorised Dealers

By virtue of regulation 20 of the exchange control regulation (foreign exchange) regulation, the Central Bank of Solomon Islands has appointed commercials banks operating in Solomon Islands as ‘Authorised dealers’, that is, to assist in the administration of exchange control in respect of the provisions of those regulations. Those are delegated authority.

Authorized dealers are required to carry out their exchange control duties in accordance with, and shall comply with the instructions, directions and requirement as are issued or made by the Central Bank.

Legislation & Policies

Solomon Islands Round Log Export System

Objective

To ensure that Solomon Islands Log Exporters obtain open market prices for their log exports and remit the full proceeds to Solomon Islands.

Method

Round Log Export will be permitted only on the issue of a Specific Authority to Export, to be issued by the Central Bank under Exchange Control Regulations, on the basis of a Market Price Certificate from the Commissioner of Forests.

Procedures

  1. Forestry Division will maintain and publish fortnightly indicative market price guidelines, based on overseas market information and regular consultations with FIA.
  2. Within one week of entering into a sales contract, and not less than four clear working days before the proposed sailing of log vessel from Solomon Islands, Exporter will submit an Application for Specific Authority to Export round logs to the Commissioner of Forests.
  3. Result of application will be notified to Exporter by Central Bank not more than four clear working days after Exporter lodges application with Commissioner of Forests.

The Exporter will be required to submit to the Commissioner of Forests the following documents :

  1. Application for Specific Authority to Export (Form Ex1 in 4 copies)
  2. Consignment details and Request for Market Price Certificate (in 4 copies)
  3. Sales contract (2 copies)

Forestry Division

  • Check declared prices against stated quality of consignment, and published market price guidelines for a date at or near sales contract date.
  • Recommend to the Central Bank to issue Specific Authority to Export by issuing of Market Price Certificate if price accords with published guidelines or is otherwise acceptable.
  • Send all documents including Market Price Certificate to Central Bank.

Central Bank

  • Within four clear working days of Exporter lodging documents with Commissioner of Forests Central Bank issues Specific Authority to export based on Market Price Certificate.
  • Central Bank informs Exporter of decision (by fax or telephone).
  • Send copy of Specific Authority directly to Customs (by fax or by hand delivery).
  • Also informs Customs if application for Specific Authority to Export is refused.

Exporter

  • Provide reference number of LC (Letter of Credit) or copy of letter of credit.
  • Collects documents, including signed copy of Specific Authority to Export from Central Bank.
  • Provides bank guarantee for Customs duties or prepares normal export entries for Customs clearance.

Customs

  • Receives bank guarantee or export entries.
  • Compare values for bank guarantee (or export entries) with Specific Authority details, against copy sent directly to Customs by Central Bank.
  • Receives payment of export duties (unless guaranteed by bank).
  • Clears vessel.