February 8, 2007 - The Ningbo branch of the State Administration of Foreign Exchange (SAFE), together with the local public security sectors, cracked several cases of illegal sales of export verification documents and destroyed three hideouts in December 2006. Eight suspects were captured on the spot, 279 seals (including company and financial seals) and 2,780 export verification forms were confiscated.

The SAFE Ningbo Branch had noticed that since 2006 certain enterprises had frequently drawn a large amount of export verification documents.  After four months of tracking and inspection, on December 1 the Branch, accompanied by the local public security sectors, ferreted out the gang, captured the chief suspect, and confiscated 238 company and financial seals and over 2,700 verification and declaration forms. On December 26, they raided another two enterprises, captured seven suspects, and seized 81 verification forms and 41 seals.

Analysis shows that there are two reasons for the frequent occurrence of such crimes. On the one hand, enterprises or individuals who are not entitled to export and import need the forms for verification materials. On the other hand, some lawless persons, who disguisedly register as circulating foreign trade companies, draw more verification forms than necessary and sell them at higher prices. Meanwhile, many logistics companies even tout their business of selling verification forms. The SAFE will continue to cooperate with public security agencies to step up the campaign against reselling verification forms and further rectify economic order in the foreign exchange market.