The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; all Chinese-funded designated foreign exchange banks:
In accordance with the Measures for the Declaration of Balance of Payments Statistics and their detailed rules for implementation, for the purpose of collecting in a all-around manner information about foreign-related collections and payments by non-residents from/to overseas parties via domestic banks and information about collections and payments by domestic non-residents from/to domestic residents via domestic banks, the relevant requirements are hereby notified as follows: 
I. Declaration of the balance of payments statistics on collections and payments (including foreign exchange and RMB) by domestic non-residents from/to overseas parties via domestic banks shall be conducted according to the following regulations:
(I) For foreign-related collections and payments by domestic non-residents from/to overseas parties via domestic banks, the banks handling this business shall handle the indirect declarations for the balance of payments statistics according to the provisions stipulated in the Operating Procedures for the Declaration of Balance of Payments Statistics via Financial Institutions (Trial). 
(II) The handling banks shall complete the Form of the Basic Information on the Entity for their non-resident institutional clients, and submit the information on the Form of the Basic Information on the Entity electronically to the foreign exchange administrations.
(III) The handling banks shall electronically submit the information on the Declaration Form for Foreign-related Income, the Application Form for Overseas Remittances, and the Advisory Notice on External Payments/Acceptances to the foreign exchange administrations.
(IV) The nature of such collection and payment transactions shall be declared in a uniform manner under the item Other investments liabilities - currencies and deposits - deposits from overseas - outward transfer of deposits from overseas, and the transaction code for the balance of payments shall be 802031. The transaction remark shall indicate collection by non-residents from overseas or payment by non-residents to overseas.
II. The declaration of the balance of payments statistics on collections and payments made by domestic non-residents from/to domestic residents via domestic banks shall be handled according to the following regulations:
(I) Collections and payments by domestic non-residents from/to domestic residents via domestic banks shall be incorporated into the scope of the data on the indirect declarations of balance of payments statistics, and the banks shall improve the scope of the data acquisition on their interface programs according to this Circular and the relevant provisions.
Banks that have completed the development of their interface programs according to the Circular of the State Administration of Foreign Exchange Concerning Preparatory Work for Further Implementing the Pilot Operation of the SAFE Sub-project of the Jinhong Project (Huifa No. 7 [2009]) shall improve their interface programs according to the provisions in this Circular before the end of July 2009; banks that have not completed the development of their interface programs shall proceed according to their interface program development plan reported for the record, and the development of their interface programs shall be carried out in accordance with the provisions of this Circular. 
(II) For collections and payments by domestic non-residents from/to domestic residents via domestic banks, the indirect declaration of the balance of payments statistics shall be carried out by domestic residents according to the provisions stipulated in the Operating Procedures for the Declaration of Balance of Payments Statistics via Financial Institutions (Trial), the Declaration Form for Foreign-related Receipts, the Application Form for Overseas Remittances, or the Advisory Notice on External Payments/Acceptances shall be completed. The nature of such transactions shall be declared according to the actual nature of the transaction conducted between the domestic resident and the non-resident. 
Regarding the verification and writing-off of imports and exports for collections and payments made by domestic non-residents from/to domestic residents via domestic banks, domestic residents are not required to fill out again the Declaration Form for Information on the Special Page used for Verification and Writing-off of Export Foreign Exchange Proceeds (Domestic Income), the Application Form for Domestic Remittances, and the Advisory Notice for Domestic Payments/Acceptances.  
(III) The declaration of receipts of foreign exchange by domestic residents from domestic non-residents
When domestic payment banks handle payments made by domestic non-residents to domestic residents, the domestic payment banks shall make the note in the payment remark of the payment message NRA payment  (or OSA payment) (if the payment is handled via an offshore account of domestic non-residents so as to facilitate the banks recognition of the source of payment, and shall inform the domestic residents that the declaration must be handled in a timely manner.  
When domestic collection banks receive the aforesaid payment made by domestic non-residents, the domestic collection banks shall inform, urge, and direct the domestic residents to handle the indirect declaration of the balance of payments statistics in a timely manner.
When domestic residents receive foreign exchange payments made by domestic non-residents, the domestic residents shall fill out the Declaration Form for Foreign-related Income, and the nature of the transaction shall be declared according to the actual nature of the transaction carried out between the domestic resident with and the domestic non-resident. The wording receipt of foreign exchange payment from domestic non-resident shall be noted in the transaction remark area, preceding the description of this transaction deal according to the existing regulations. 
(IV) The declaration of foreign exchange payments made by domestic residents to domestic non-residents
When domestic payment banks handle foreign exchange payments made by domestic residents to domestic parties, the domestic payment banks shall inquire the domestic residents about the conditions of the receipt so as to judge whether the receivers are domestic non-residents. If the receivers are domestic non-residents, the said banks shall request the domestic residents to fill out the Application Form for Overseas Remittances or the Advisory Notice of External Payments/Acceptances, and the nature of the transaction shall be declared according to the actual nature of the transaction between the domestic resident and the domestic non-resident. The wording payment to domestic non-resident shall be noted in the transaction remark area, preceding the description of this transaction according to the existing regulations. 
(V) From August 1, 2009, an indirect declaration of balance of payments statistics shall be made for foreign exchange collections and payments made by domestic non-residents via domestic banks from/to domestic residents according to the provisions of this Circular.
(e) For the time being, RMB collections and payments made by domestic non-residents via domestic banks from/to domestic residents shall not be subject to the indirect declaration of balance of payments statistics.
III. Collections and payments made by foreign embassies and consulates in China and by representative offices of international organizations in China from/to overseas parties shall be declared under the corresponding item service - governmental services not mentioned elsewhere. Collections and payments made by foreign embassies and consulates in China as well as those by representative offices international organizations in China from/to domestic parties will not be subject to the indirect declarations of balance of payments statistics. 
IV. Collections and payments made between domestic non-residents via domestic banks will not be subject to the indirect declarations of balance of payments statistics.
V. Non-residents and residents as referred to in this Circular include entities and individuals. Domestic non-residents refer to non-residents making collections and payments via domestic banks, and include non-residents who open accounts in domestic banks that are entitled to engage in offshore banking business according to the relevant laws and regulations.  
VI. The foreign exchange administrative departments and branches of the SAFE shall transmit this Circular to the central sub-branches, sub-branches, as well as to local commercial banks, rural credit cooperatives, and foreign banks within their jurisdictions in a timely manner upon receipt of this Circular.
Regarding any questions arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner. Telephone number: (010)68402373, 68402447.

                                                      June 17, 2009