License allows sales in forex |15 April 2005

However, with strict foreign exchange controls surrounding the new policy, the access of the general public to the hard currency imports will be limited.

Speaking to the media on Thursday morning, Seychelles Investment Bureau (SIB) chief executive, Joseph Nourrice, said that the new license would allow businesses to import goods for sale in foreign currency to licensed foreign exchange earners, in transactions to be made through the banks, not in cash.

Under the new regulations non-licensed foreign exchange earners will not be able to make purchases from the businesses in foreign currency, but the holders of the new license will have the option of offering the goods they import for sale in rupees, as a normal commercial business.

"Following consultations last year to look at how to get better value for money government felt it may be necessary to look at a system where some companies can import goods to be sold in foreign exchange," said Mr Nourrice.

The SIB head said that he expects holders of the new license to approach hotels and other foreign exchange earners to take orders from them, rather than establishing shops and having to pre-order stock.

However, he said that so far only one license has been issued and it is too early to say how the sector will develop.

Under the new license no specific restrictions on goods imported will be put in place, but Mr Nourrice said that importers will still have to conform to all other import regulations.

Businesses working with the new license will be awarded an 85% foreign currency retention rate, but the foreign currency generated has to be used for imports and import related expenses.

In order to be awarded a license a business will first have to provide proof of a bank guarantee of $100,000.

"We want to ensure that we get serious people in there. We don't want a scheme to be put up for a one time import and then it folds. We want to see sustainability," said Mr Nourrice.

Any business wishing to apply for the new license is advised to contact the SIB.