Press Release 19.22 CBSI conducts ‘Minerals Exports Workshop for Mineral Exporters and Stakeholders: Minerals Exports now proccessed under specific authority to exports.
The Central Bank of Solomon Islands last week on the 18th Friday November 2022 conducted a one-day workshop on “Exporting Minerals under Specific Authority” to licensed mineral exporters and stakeholders
The aim of the workshop was to provide an opportunity for each agency involved in all mineral exporting activities to inform and clarify each stakeholders’ roles and responsibilities in carrying out Mineral exporting assessment and information sharing on the different roles they play in the mineral industry exporting activities.
Furthermore, the workshop helps explain and broaden the Specific Minerals exports processes and requirements of CBSI ‘Specific Authority’ to export permit.
This workshop is also important that all Minerals Exporters were equipped with the necessary information needed to guide them in their preparation for minerals exporting approval documents and mineral exports application process.
During the opening remarks, CBSI Governor, Dr Luke Forau highlighted the recent changes made to exporting of minerals processes under the Exchange Control Act 1976.
“Exporting activity is regulated under the Exchange Control Act 1976. Initially mineral exports used to come under General Authority (GA) to Export Permit. Not until in July 2022, the CBSI and the Ministry of Mines, Energy and Rural Electrification (MMERE) approved a proposal to include exporting of minerals under the Specific Authority (SA) to Export Permit.
This effectively means mineral exports, of any form, would be excluded from the current General Authority to export permit (GA) requirements under the Exchange Control Regulation 13(4), and now become assessed under the Specific Authority to Export Permit pursuant to section 13(5) of the Exchange Control Regulation,” Governor explained.
Following bilateral meetings with the relevant stakeholders for mineral export as well as the Economic Reform Unit of the proposal, the parties consented for minerals to be excluded from (GA) to export permit and be administered under (SA) to export permit.
A Gazette Notice subsequent to the proposed policy changes was endorsed and formalized by the Attorney Generals Chambers, giving authority for minerals to be formally exported under SA export permit effective 1st of November 2022.
The inclusion of mineral under (SA) export permit will strengthen the export control mechanisms of mineral export, promote and strengthen licensing, assessment and issuing roles and provide a well-structured framework for executing agencies in terms of reporting and information sharing.
Furthermore, it will strengthen the audit trails and checks and balances of each export transactions and destination of beneficiaries for reconciliation purposes.
Both SIG and exporters will get maximum export market price set for different mineral exports, moreover exporters will maximize their revenue with a better market driven price monitored by the Ministry of Mines, Energy and Rural Electrification (MMERE) and CBSI.
“Minerals are high value commodities and strengthening the approval and assessment process in facilitating mineral exports is essential. The administration of minerals export under the Specific Authority would ensure mineral exporters comply with CBSI’s Exchange Control Regulations and related regulations from the other agencies for compliance purposes, at the same time enhance the Government’s revenue collection base,” Governor emphasized.
The Central Bank of Solomon Islands administers the Exchange Control Act and Regulations on behalf of the Solomon Islands Government. As an integral part of the Exchange Control Framework, a control over goods exported from the Solomon Islands is maintained to ensure that full proceeds of goods exported are received in the Solomon Islands in an approved manner.
The Exchange Control Act 1976 and Regulation 1977 provides that any person (s) Corporate or Individual who exports any goods from Solomon Islands except with the authority of the CBSI shall be guilty of an offence.
The authority of CBSI maybe in the form of General Authority (GA) or a Specific Authority (SA). Details are specified in the Exchange Control Regulation Schedules.
“Given the important role the mineral sector will play in the national economy, a collaborative effort by the different agencies and stakeholders are paramount to better manage and control our natural resources and earn maximum benefit from these valuable resources going forward,” Governor said.
For more information, contact the Central Bank of Solomon Islands (CBSI) on 21791 or Email: firstname.lastname@example.org | Website: www.cbsi.com.sb