The Southeast Asian Treasure Connection
GOLD BARS & ANY RELATED INFO => GOLD Buying Info => Topic started by: boylara on January 17, 2010, 04:40:58 PM
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As expected, e-mail inquiries from Filipinos (most of whom are overseas Filipino workers) interested in selling their gold to the Bangko Sentral ng Pilipinas came pouring in after I wrote a column on this topic last week.
The questions varied from how much gold one is allowed to keep as savings to specific details on how to actually sell gold to the BSP. I wish to address some of these concerns here.
The BSP, through the Mint Refinery Operations Department (MROD), started gold buying operations in September, 1977.
The BSP purchases gold from gold producers, small-scale miners, and from other sources through its gold-buying stations in Quezon City, and in BSP offices in the cities of Davao, Zamboanga, Baguio, and Naga.
According to the MROD, the BSP gold is refined in accordance with the standards of the international gold and silver bullion markets to form part of the country’s international reserve.
The BSP also manufactures semi-finished gold to meet the requirements of local jewelers and industrial users.
There is actually no special license needed for an individual or company to sell gold to the BSP. As I mentioned in my previous column, the sale of gold only requires the submission of a “Letter of Delivery and Sale,” a document which the BSP provides for the seller to fill up.
Another requirement which the seller must submit is a recent copy of his Community Tax Certificate (CTC).
For purposes of internal control in the release of checks, the first-time seller is required to accomplish a specimen signature card and submit an ID picture for himself or his authorized representative.
The MROD also reminds the public that the transport and security arrangements in bringing gold to the BSP are the seller’s sole responsibility.
Only gold sold on the date of the delivery can be accepted for storage in the MROD’s vault or at the gold-buying stations in the provinces.
The seller must ensure that the gold for sale is in bar or disc form (grains, powder, nuggets, and flakes are not accepted); does not contain mercury or amalgam in any quantity; is free of slags (mixtures of metal oxides) and other foreign matter; has no sign of metallic segregation or layering; and is not damp or wet.
The BSP is actually very strict in accepting gold containing mercury because this is an extremely toxic chemical that can be very harmful to the people exposed to it. Mercury can also damage the equipment of the BSP during the refining process.
The maximum weight of a gold bar or disc should be approximately five kilograms, while the maximum weight per lot or transaction should be 10 kilograms.
Gold sold to the BSP is paid in Philippine pesos based on the gold price and foreign exchange rate set by the BSP Treasury Department on a daily basis. The gold price is determined based on the international market prices at the start of each day.
According to Mr. Roque Rubiano, Security Materials Control Officer II of the MROD Gold-Buying Unit, there is no restriction in the amount of gold Filipino citizens, including OFWs, can hold as part of their savings.
He said that keeping gold as savings is a common practice, as the value of the gold increases over time.
Huwag maging dayuhan sa sariling bayan.
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Note: You may e-mail us at totingbunye2000@gmail.com.
From www.mb.com.ph
I have received many inquiries from various individuals and groups on how they could sell gold to the Bangko Sentral ng Pilipinas (BSP) — the processes involved, the procedures they have to go through, and the people they have to deal with.
For the information of those who are interested to know, there are two laws that authorize the BSP to buy gold from the public: Republic Act 7653, the New Central Bank Act of 1993, and Republic Act 7076 or the People’s Small-Scale Mining Act of 1991.
The New Central Bank Act states that the BSP may buy and sell gold in any form. According to the BSP’s Mint and Refinery Operations Division (MROD), the BSP buys all kinds of gold from mined gold to pawned gold items (even gold dentures!).
The law also provides that the international reserves of the BSP may include gold and assets in foreign currencies. The BSP’s purchase of gold therefore helps strengthen the country’s international
reserves.
The People’s Small-Scale Mining Act, on the other hand, specifies that all gold produced by small-scale miners shall be sold to the BSP, which in turn shall buy it at prices competitive with those prevailing in the world market regardless of volume or weight.
This law was enacted in line with the government’s policy to promote, develop, protect, and rationalize viable small-scale mining activities, which rely heavily on manual labor using simple implements and methods, in order to generate more employment opportunities.
Small-scale miners refer to Filipino citizens who voluntarily form a cooperative licensed by the Department of Environment and Natural Resources (DENR) to engage in the extraction or removal of minerals or ore-bearing materials from the ground. These miners do not use explosives or heavy mining equipment.
The People’s Small-Scale Mining Act also requires the BSP to establish as many buying stations in gold rush areas to fully service the requirements of the small-scale miners in those localities.
The BSP has a gold-buying station at the Security Plant Complex in Quezon City, and in BSP offices in the cities of Davao, Zamboanga, Baguio, and Naga.
Mario Fragata, officer-in-charge of the gold-buying unit of BSP’s Mint and Refinery Operations Division (MROD), said that there are limits to the amount of gold that the BSP may purchase from each seller daily.
Each seller is allowed only two transactions per day, with each transaction consisting of not more than 10 kilos or 320 troy ounces of gold.
Fragata said that gold traders interested in selling their gold to the BSP should fill up a “Letter of Delivery and Sale” and submit it to the MROD’s Office of the Director.
The “Letter of Delivery and Sale,” which is provided by the BSP, should indicate that the gold is offered for sale for value on the date of delivery and must be submitted not later than 2 p.m. of the advice date.
Fragata said that 99 percent of the payment will be given to the seller on the following business day. The balance will be settled upon completion of evaluation melting and final assay or within 30 days from the date of delivery or sale.
The BSP will also deduct processing and metal recovery factors from the payment, he added.
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Bro, selling Au to the BSP is only for gold that were mined and you need a business license or must be a member of a mining cooperative.
You can't just walk in and sell 10 kilos x2, with no questions ask.
If you are selling recovered gold to BSP, you must not sell it in its original form with hallmark, you must melt it (to avoid government scrutiny) and still you need a license middle man in order to sell it legally.
BSP put up buying stations for small scale miners to minimized the activity of selling it to terror organizations (NPA, MILF, Abu Sayaf etc) smugglers and gangs or for illegal activities.
Do not forget AMLA, that's why you need a business license.
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Boylara,
Great article there. Glad you gave some good news to the prospective gold sellers here. Why you didn't give the London Metal Exchange Rate that's paid for any gold sold there? Isn't it something like 98%?
MasKara, good point in reminding people to remove any and all halmarks before bringing anything to sell there.
TW
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Better melt your gold first.. Just tell them you dug it at your backyard or kung hindi pinabebenta nun relatives mo...sa gobierno lakas ng loon lng, ika nga Tell me and i will tell him hahahaha, and make sure pag punta mo dun may kasama kang, Atty., kumpare mo na malaks ang loob,,o di kaya samahan namin kayo hehehehehe....
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Do not even tell the BSP you dug them on your backyard, just do what my friend is doing he sells 5 to 20 grams at a time to his Chinese buyer, Selling to BSP requires paper works, business permit which you wont have so you end up with a middle man.
Why risk doing all this while you can sell to a pawn shop or Private gold buyer in small quantities. After you have enough capital then buy a mining cooperative, then you can transact in bigger quantity with the BSP.
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while reading the inquirer newspaper yesterday, i came across to a add that telling they're buying gold, silver and platinum. PHILTEC METALS INC. you can find their website www.philtecgoldatmanila.com
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Boylara & TW,
Do Banko Central ng Pilipinas buy century diamonds?
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Boylara & TW,
Do Banko Central ng Pilipinas buy century diamonds?
Boyet,
N d other thread F am not mistaken, WISEMAN is involve in dealing with diamonds. Maybe he can help.
Mhunter
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Boylara & TW,
Do Banko Central ng Pilipinas buy century diamonds?
as long as it's a REAL diamond will maybe they will buy for it.... ::)
Raqz ;)
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Boylara & TW,
Do Banko Central ng Pilipinas buy century diamonds?
No. I don't think they have the facilities to deal with diamonds. They are a gold refinery there.
TW
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while reading the inquirer newspaper yesterday, i came across to a add that telling they're buying gold, silver and platinum. PHILTEC METALS INC. you can find their website www.philtecgoldatmanila.com (http://www.philtecgoldatmanila.com)
is the PHILTEC METALS INC. buy a diamond also?...just asking only. :) :) :)
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It only says...metal refinery. I don't think it is buying diamond.
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while reading the inquirer newspaper yesterday, i came across to a add that telling they're buying gold, silver and platinum. PHILTEC METALS INC. you can find their website www.philtecgoldatmanila.com (http://www.philtecgoldatmanila.com)
is the PHILTEC METALS INC. buy a diamond also?...just asking only. :) :) :)
No. Philtec Metals has nothing to do with diamonds. Bring those to a diamond dealer.
TW
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Debeers is the best company to contact...they are always ready to negotiate with your diamonds...
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Gold is much more easier to deal with than diamond, that is all I can say. ;)
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CAUTION ON TRANSACTIONS OF SELLING GOLD TO CENTRAL BANK
Cebuano gold trader charged with nearly P3-B tax evasion case
Thursday, December 8, 2011
A CEBU City-based trader was slapped with tax evasion case before the Department of Justice (DOJ) on Thursday after he failed to pay P2.67 billion in taxes for gold purchases from 2005 to 2009.
Junrie Daitol Tenorio of Guadalupe, Cebu City is on the list of businessmen who have been selling gold to the Bangko Sentral ng Pilipinas (BSP) last May.
Based on the documents gathered by the Bureau of Internal Revenue (BIR), Tenorio sold gold to BSP amounting to P3.95 billion from 2005-2009. Tenorio, however, failed to remit his dues to the government for the said transactions.
According to BIR Commissioner Kim Henares, Tenorio will face five counts of attempting to evade tax, 15 counts of failure to file quarterly income tax returns and five counts of failure to file annual income tax returns.
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Tenorio and Aw-yong are being charged for violations of sections 254 and 255 of the National Internal Revenue Code of 1997.
The penalty for violating section 254 of the tax code is a fine of P30,000 to P100,000 and imprisonment of two to four years while the violation of section 255 of the tax code carries a fine of at least P10,000 and imprisonment of one to 10 years.
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I was just wondering why BSP has not cut the tax from every selling transaction that was made as I understand that the government will automatically deduct the tax due from every transaction made.
Hmmm, something is wrong...either my last knowledge on tax law is not updated or ... .
Lemmon Sweeter, would you please help expound further the intricacies of business tax specially on gold transactions?
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In my humble opinion, why should anybody even bring their gold to the BSP or even merely considering its sale to the institution? It is like putting your head in a lion's mouth. Ha ha!
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I was just wondering why BSP has not cut the tax from every selling transaction that was made as I understand that the government will automatically deduct the tax due from every transaction made.
Hmmm, something is wrong...either my last knowledge on tax law is not updated or ... .
Lemmon Sweeter, would you please help expound further the intricacies of business tax specially on gold transactions?
DB, Go to Google, type in BSP Branching Operation, Click on Branching Operations and go to #24. Presently, BSP does not deduct Taxes when you sell Gold to them.
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I was just wondering why BSP has not cut the tax from every selling transaction that was made as I understand that the government will automatically deduct the tax due from every transaction made.
Hmmm, something is wrong...either my last knowledge on tax law is not updated or ... .
Lemmon Sweeter, would you please help expound further the intricacies of business tax specially on gold transactions?
DB, Go to Google, type in BSP Branching Operation, Click on Branching Operations and go to #24. Presently, BSP does not deduct Taxes when you sell Gold to them.
Here is the Link. http://74.6.117.48/search/srpcache?ei=UTF-8&p=BSP+Branching+Operations&fr=ytff1-tyc&u=http://cc.bingj.com/cache.aspx?q=BSP+Branching+Operations&d=4587231617024689&mkt=en-US&setlang=en-US&w=d5153b6f,4c0880e7&icp=1&.intl=us&sig=bXeaGewtZ7IDIr9cUDTZvg-- (http://74.6.117.48/search/srpcache?ei=UTF-8&p=BSP+Branching+Operations&fr=ytff1-tyc&u=http://cc.bingj.com/cache.aspx?q=BSP+Branching+Operations&d=4587231617024689&mkt=en-US&setlang=en-US&w=d5153b6f,4c0880e7&icp=1&.intl=us&sig=bXeaGewtZ7IDIr9cUDTZvg--)
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Yes, I see it and it says:
"Presently, the BSP does not withhold any tax in the transaction. However, the silver is expected to comply with relevant taxation laws. Gold sold to the BSP is considered export commodity and is deemed zero-rated for VAT (value added tax) purposes."
Now, it is quite clear why the case has been filed against Tenorio. Thanks for the link
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only vat is zero-rated. he is still required to pay income taxes. a gold trader is not exempted from paying income taxes. income tax and vat are different.