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Rules and Regulations
  • Index number:
  • Dispatch date:
    2011-02-16
  • Publish organization:
    State Administration of Foreign Exchange
  • Exchange Reference number:
  • Name:
    Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Renminbi-Against-Forex Options Trading
Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Renminbi-Against-Forex Options Trading

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; policy banks, state-owned commercial banks, and shareholding commercial banks; and the China Foreign Exchange Trade System:

In order to further promote the development of the foreign exchange market, and provide enterprises and banks with more instruments to avoid exchange rate risks, the State Administration of Foreign Exchange (hereinafter referred to as the SAFE) has decided to launch Renminbi-against-Forex options trading. The relevant issues are hereby notified as follows:

I. The options stated in this Circular refer to the common European options of the Renminbi against foreign currencies (hereinafter referred to as the options).
II. Banks shall satisfy the following conditions in order to engage in the options business for their clients:

(1) Having been qualified to operate forward settlement and sales of foreign exchange for more than three years, as filed and approved by the SAFE, and having been rated a Class-B (inclusive) or above for two consecutive years in the assessment of its  implementation of the foreign exchange administration regulations;

(2) Having experience in foreign currency options trading;

(3) Having an effective risk management system for options trading and an internal control system, as well as an appropriate risk measurement, management, and trading system;

(4) Other requirements as stipulated by the SAFE.

III. The SAFE implements case-filing management for the banksoperations of options business for their clients.

Banks and their branches shall comply with the market admittance management procedures for the implementation of forward settlement and sales of foreign exchange in operating their case-filing forward business.

IV. Banks shall, when applying for case-filing options for their clients, submit the following documents and materials to the foreign exchange authorities:

(1) An application report, a feasibility study report (including the operating conditions for foreign currency options trading that has already been launched), and a business plan;

(2) An internal management system for the options business (including but not limited to the operational processes, the statistical reporting system, the accounting system, etc);

(3) An options pricing model (including but not limited to measurement methods and sources and criteria for selection) and positions management system;

(4) A name-list, resumé, and the relevant qualification certificates of the options supervisors and the key personnel involved in the options trading;

(5) A report testing the safety of the trading floor, the equipment, and the systems, and a report on the simulation test of the internal business for no less than one month;

(6) Other documents and materials as required by the SAFE.

V. The banks shall comply with the principle of actual needs and abide by the following provisions when handling the options business for their clients:

(1) The banks shall only engage in call options or put options for foreign exchange purchased by their clients, and shall not sell options for their clients unless they offset the positions against buy-in options.

(2) Prior to the signing of an options contract, the banks shall require that their clients furnish a basic business contract and shall carry out the required examination of the contract so as to ensure that the options business to be conducted complies with hedging principles.

(3) Prior to the maturity of the options, in the event that alterations are made to the basic business contract resulting in changes in the cash flow of foreign exchange receipts and payments, the clients shall, after providing the banks with materials testifying to the alteration and a letter of commitment that have been reviewed and verified by the banks, offset the positions in an amount corresponding to the buy-in option. Profits and losses resulting from the offsetting shall be dealt with in compliance with commercial principles.

The banks shall establish a case-by-case registration system for clients involved in position offsetting, carry out regular assessments of clients, and strengthen risk management.

(4) Upon the maturity of the options, if the clients choose to exercise their options, the banks must conduct an authenticity and regulatory examination of the compliance of the receipts and payments of foreign exchange delivered by the clients. In the event that the scope of the foreign exchange receipts and payments of the clientsoptions trading is the same as that of the clientsforward settlement and sales of foreign exchange, the scope therein is limited to the receipts and payments of spot settlement and sales of foreign exchange that can be carried out in compliance with the foreign exchange administration regulations.

In the event that clients choose to exercise their options, they shall carry out delivery in the full amount of the principal specified in the options contract at the agreed-upon strike price. In principle, clients shall not carry out balance delivery. Clients who buy input options of foreign exchange by using their savings deposited a the foreign exchange account under the current account at the opening bank may conduct in-full or balance delivery. Nevertheless, in cases where clients withdraw the deposits prior to the maturity of the options, they must offset positions in an amount corresponding to the options contract.

In the event that the cash flow of the balance of foreign exchange disappears partially due to alterations made by the clients to the basic business contract, the banks may, after examining and verifying the materials testifying to the alteration and the letter of commitment provided by the clients, process for the clients a partial exercise of the principal as specified in the options contract.

(5) The scope of the customers and the time limit of the options trading shall be commensurate with those for the forward settlement and sales of foreign exchange.

(6) The premium for options trading shall be dominated in Renminbi.

(7) When handling options business for their clients, the banks shall fully explain the risks of options trading to their clients and obtain a letter of confirmation from their clients confirming that the clients have fully understood the risks and have the ability to assume the risks therefrom.

VI. The banks shall file an application with the SAFE for qualifications when they need to engage in options trading on the inter-bank foreign exchange market.

(1) In addition to Items (2) to (4) of Article II above, the banks shall satisfy the following conditions to apply to engage in options trading on the inter-bank foreign exchange market: a) having obtained qualification for forward trading of Renminbi against foreign currencies on the inter-bank foreign exchange market from the SAFE for more than three years; b) having software and hardware facilities that meet the technical standards for the options trading system of the China Foreign Exchange Trading System (hereinafter referred to as the CFETS).

(2) The banks may apply separately or simultaneously to engage in options trading on the inter-bank foreign exchange market. In the case of separate applications, the banks shall comply with the market admission management procedures for forward trading of Renminbi against foreign currencies on the inter-bank foreign exchange market; in the case of simultaneous applications, the head offices thereof (branches incorporated within the territory of China by foreign commercial banks are considered to be head offices) shall apply to the SAFE for the record.

(3) The banks shall, when applying to engage in options trading on the inter-bank foreign exchange market, submit the following documents and materials in addition to the documents and materials specified in Items (2) to (6) of Article c above: a) an application report, a feasibility study report (including a report on the operating conditions of foreign currency options trading that has already been launched), and a business plan; and b) a certificate proving that the software and hardware facilities match the technical standards issued by the CFETS for the options trading system.

VII. The banks shall incorporate the position delta of options into the comprehensive positions of foreign exchange settlement and sales for centralized management of their option operations. The banks shall measure precisely the position delta by choosing appropriate and widely-recognized measurement methods on the basis of reasonable presumptions and parameters corresponding to market conditions.

The measurement method and parameters employed by the banks for the measurement of the position delta shall in principle comply with the relevant business guides issued by the CFETS. In cases where there is a marked discrepancy between the value of the Delta positions measured by the banks by using other methods and the value calculated based on the business guides of the CFETS, the banks shall report such circumstances to the SAFE in a timely manner.

VII. In the event that currency brokerage companies intend to launch options brokerage services, they shall obtain qualifications to operate the relevant business according to the law and carry out the business by complying with the Circular of the State Administration of Foreign Exchange on the Distribution of Interim Measures for the Administration of Foreign Exchange Brokerage Business Operated by Currency Brokerage Firms (Hui Fa [2008] No.55).

IX. The banks shall, in compliance with the requirements of this Circular, submit to the SAFE statistical statements on their options operations.

(1) The banks shall deem their clientsexercise of options to be the performance of the contracts on the forward settlement and sales of foreign exchange, and shall incorporate such exercises into the statistics on the performance of the contracts on the forward settlement and sales of foreign exchange in the Monthly (Ten-day) Report on Statistics on Foreign Exchange Settlement and Sales by Banks in accordance with the Circular of the State Administration of Foreign Exchange on Distribution of the Statistical System for  the Settlement and Sales of Foreign Exchange by Banks (Hui Fa [2006] No.42).

(2) The contents of the Daily Report on the Comprehensive Position Management of Foreign Exchange Settlement and Sales by Banks shall comply with the requirements as specified in Appendix 1 thereof.

(3) The banks shall, within the first ten (10) working days of each month, report to the SAFE the conditions in their options operations for the previous month (Appendices 2, 3, and 4).
X. The SAFE shall implement supervision and administration of the options trading provided by the banks to their clients and on the inter-bank foreign exchange market. In the event that any bank engages in options business in violation of the requirements as specified in this Circular, the SAFE shall impose penalties on the bank in accordance with the Regulations of the Peoples Bank of China on Foreign Exchange Administration and the relevant laws and regulations on foreign exchange administration.

XI. The relevant terms specified in the Circular are defined as follows:

(1) Common European optionsrefer to standard options that can only be exercised by the buyer of the option upon expiration.

(2) Call option and put option: call options refer to a type of option whereby the buyer of the option has the right to purchase from the seller of the option an agreed-upon quantity of foreign exchange at a strike price upon expiration of the contract; put optionsrefer to a type of option whereby the buyer of the option has the right to sell to the seller of the option an agreed-upon quantity of foreign exchange at a strike price upon expiration of the contract.

(3) In-full delivery and balance delivery: In-full delivery refers to performance of a contract in which both parties deliver the principal in full as specified in the contract at a strike price agreed upon by both parties upon expiration of the contract; balance delivery refers to performance of a contract whereby both parties conduct a difference delivery of the principal specified in the contract as per the difference between the strike price agreed upon by both parties and the central parity rate of the Renminbi against the concerned foreign currency upon expiration of the contract.

XII. This Circular shall enter into effect as of April 1, 2011.

XIII. This Circular shall be interpreted by the SAFE.

The branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, forward it immediately to the urban commercial banks, rural commercial banks, rural cooperative banks, and foreign-funded banks within their jurisdictions. Regarding any problems arising from implementation, please contact the Department of the Balance of Payments of the SAFE. The contact numbers are: 010-68402304, 68402313.

                                                                                       February 14, 2011

Appendix: Omitted

 

 

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Circular of the SAFE on Relevant Issues Concerning Foreign Exchange Administration for Renminbi-Against-Forex Currency Swaps Provided by Designated Foreign Exchange Banks to Their Clients

Date:2011-01-30

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated foreign exchange banks:

In order to further satisfy the requirements of domestic economic entities to hedge exchange-rate risks, the relevant issues with regard to foreign exchange administration for Renminbi-against-forex currency swaps (hereinafter referred to as the currency swap) provided by the designated foreign exchange banks (hereinafter referred to as the banks) to their clients are hereby notified as follows:

1. The currency swap stated in the Circular refers to a trading agreement by which both parties of the agreement exchange agreed-upon quantities of Renminbi and principal in a foreign currency within a prescribed term, in parallel with the regular exchange of interest of the two currencies.

The principal is exchanged in the forms of: (1) the exchange of the principal in Renminbi and the foreign currency by both parties as per the agreed-upon exchange rate on the date when the agreement becomes effective, and the reverse exchange of the principal based on the same exchange rate and quantity on the date when the agreement expires; (2) other forms as prescribed by the Peoples Bank of China and the SAFE.

Interest exchange means that one party in question pays the other party in question the amount of interest computed based on the swap-in currency on a regular basis; the interest can be computed either based on a fixed rate or on  a floating rate.

2. Any bank that has acquired a one-year qualification to operate Renminbi-against-forex swaps can directly launch currency swaps for its clients. The branches of banks (branches of foreign commercial banks are deemed to be legal persons) can launch currency swaps to their clients after being authorized by their legal persons thereof.

3. The transaction elements such as currencies and terms involved in the currency swaps provided by the banks to their clients are determined by discretion of the banks.

The interest rate involved in the currency swaps shall be determined by both parties in question through negotiations, but it shall comply with the regulations of the Peoples Bank of China on the administration of deposit and lending rates. The banksinterest rate of the swap-in (or swap-out) currency shall not exceed the upper (or lower) limit of the benchmark deposit (or lending) rate publicized by the Peoples Bank of China .

4. The banks shall comply with the relevant provisions on foreign exchange administration and the statistical requirements with regard to the foreign exchange swap business as specified in the documents including the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Forward Settlement and Sales of Foreign Exchange and Renminbi-Against-Forex Swaps Provided by Designated Foreign Exchange Banks to Their Clients (Hui Fa [2006] No. 52), the Circular of the State Administration of Foreign Exchange on the Distribution of the Statistical Rules for Foreign Exchange Settlement and Sales by Banks (Hui Fa [2006] No. 42), etc.

The banks shall submit on a monthly basis a report on the interest rate of the Renminbi involved in the currency swaps. See Appendices 1 and 2 for details.

5. In operating the currency swaps, the banks shall incorporate the interest in foreign currencies earned from their clients into the foreign exchange earnings thereof for centralized management, and shall not separately carry out foreign exchange settlement.

6. In the event that the banks deal with currency swaps in violation of the Circular, the SAFE shall impose penalties thereupon in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and the relevant laws and regulations.

VIII. This Circular shall enter into force as of March 1, 2011.

The branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, forward it immediately to urban commercial banks, rural commercial banks, rural cooperative banks, and foreign-funded banks within their jurisdictions. For any problems arising from implementation, please contact the Department of the Balance of Payments of the SAFE. The telephone numbers are: 010-68402304, 68402313.

                                                                             January 19, 2011


affix1:
Statistical Form for Renminbi Interest Rates in Currency Swaps Provided by (the name of the bank) to Clients
affix2:
Instructions for Completing the Statistical Form on Renminbi Interest Rates in Currency Swaps Provided by Banks to their Clients

 

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Circular of the State Administration of Foreign Exchange on Printing and Distributing the System for the Verification of Indirect Declarations of Statistics on the Balance of Payments

Date:2011-01-20

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

In order to meet the changing needs for indirect declaration of statistics on the balance of payments, to ensure and improve the quality of data declared indirectly on the balance of payments, and to further standardize the verification of the indirect declarations of the statistics on the balance of payments, the State Administration of Foreign Exchange formulated the System for the Verification of Indirect Declarations of Statistics on the Balance of Payments (see the Appendix for details), which is hereby issued for your implementation.

All branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, forward it immediately to the sub-branches and banks within their jurisdictions. For any problems arising from implementation, please contact the Department of the Balance of Payments of the SAFE.

Tel.: 010-68402448, 68402593;

E-mail address: bop@bop.safe (Intranet).

                                                                                          January 12, 2011

 

 

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Circular of the SAFE on Relevant Issues Concerning Administration of Implementation of Overseas Deposits of Export Proceeds from Trade in Goods

Date:2010-12-31

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks:

In order to increase the efficiency of the use of funds by domestic enterprises and to further promote the facilitation of trade and investment, the State Administration of Foreign Exchange has decided to implement the Interim Measures for the Administration of Overseas Deposits of Export Proceeds from Trade in Goods (hereinafter referred to as the Interim Measures,see Appendix 1 for details) on a nationwide scale as of January 1, 2011 in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration, based on the results of the pilot implementation. The Interim Measures and the Instructions for Operations (see Appendix 2) are hereby distributed, with the relevant issues notified as follows:

1. All branches and administrative offices of the SAFE shall comply with the Interim Measures when disseminating the policies on overseas deposits of export proceeds throughout the country, when providing training to branches within their jurisdictions and to enterprises that apply for overseas deposits of export proceeds, when strengthening publicity about the relevant policies, and when keeping a close eye on and addressing problems arising from implementation of the policies.

2. Pilot enterprises in the pilot regions that have received approval from the foreign exchange authorities for the operation of overseas deposits of export proceeds can make adjustments to the ways of reporting information about receipts and payments of the overseas accounts in accordance with the Interim Measures.

3. All branches and administrative offices of the SAFE shall, within the first five working days of each month, report the information about the overseas deposits of export proceeds of the previous month within their jurisdictions to the Current Account Management Department of the SAFE.

The branches and foreign exchange administrative departments of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units under their respective jurisdictions. All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. With respect to any problems arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner.

Tel.: 010-68402450

                                                                                     December 27, 2010


affix1:
Interim Measures for the Administration of Overseas Deposits of Export Proceeds from Trade in Goods
affix2:
2. Instructions for the Operation of the Interim Measures for the Administration of Overseas Deposits of Export Proceeds from Trade in Goods

 

 

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Circular of the General Affairs Department of the SAFE on the Operation of Foreign Exchange Business Concerning Cross-border Trade in Environmental Interests Including CO2 Emissions Reductions

Date:2010-12-31

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks:

In order to promote the facilitation of trade and investment and to regulate foreign exchange receipts and payments concerning cross-border trade of environmental interests such as carbon dioxide emissions reductions, related issues are hereby notified as follows:

1. The cross-border trade of environmental interests including carbon dioxide emissions reductions stated in this Circular refers to cross-border trading in which a domestic institution sells or purchases environmental interests including carbon dioxide emissions reductions to or from an overseas institution. Domestic institutions and overseas institutions shall handle the business with regard to the foreign exchange receipts and payments involved in the aforesaid category of transactions in compliance with the relevant provisions in this Circular, the regulations on foreign exchange administration, and the relevant laws and regulations of the State.

2. The receipts and payments involved in the cross-border trade of environmental interests including carbon dioxide emissions reductions shall have real and legitimate transaction backgrounds. Domestic institutions shall, by virtue of the valid documents specified in Article 3 of this Circular, deal with the relevant businesses directly at the designated foreign exchange banks (hereinafter referred to as the banks).

3. When handling foreign exchange collections for domestic institutions under the cross-border trade of carbon dioxide emissions reductions, the banks shall examine the following documents:

1) The letter of application by the domestic institution;

2) The commercial invoice;

3) The contract for the trade of environmental interests such as carbon dioxide eissions reductions;

4) An official written reply from  the National Development and Reform Commission regarding the trading of environmental interests such as carbon dioxide emissions reductions; and

5) A letter of verification on the actual emissions reductions issued by institutions designated by the United Nations.

The banks only need to examine the documents specified in the foregoing three paragraphs with regard to the start-up fees paid by an overseas purchaser to a domestic institution for the purpose of consultation, assessment, filing an application with the United Nations, and so forth under the Clean Development Mechanism project. The banks only need to examine the documents specified in the foregoing four paragraphs for advances received from the sale of emissions reductions by domestic banks.

For fees paid by overseas purchasers to domestic institutions for the purchase of carbon dioxide emissions reductions under voluntary emissions reductions, the banks shall examine the documents specified in the foregoing three paragraphs and the letter of verification on the actual emissions reductions issued by legitimate and authorized certification agencies; for start-up fees and advance payments paid by overseas purchasers to domestic institutions for the consultation, assessment, filing of applications to the relevant authorities, and so forth under voluntary emissions reductions, the banks only need to examine the documents specified in the foregoing three paragraphs. In the event that voluntary emissions reductions are subject to approval by the National Development and Reform Commission and other relevant authorities, the banks shall examine the official reply issued by the authorities thereof.

The banks shall examine the authenticity of the relevant businesses in compliance with the provisions of the first three sections herein when dealing with foreign exchange payments under the cross-border trade of carbon dioxide emissions reductions by domestic institutions and the foreign exchange receipts and payments under other items of cross-border trade of environmental interests.

4. The banks may, when dealing with the procedures for the receipts from cross-border trade of environmental interests such as carbon dioxide emissions reductions, handle the settlement of foreign exchange for domestic institutions or open a Capital Account Foreign Exchange Account for Environmental Equity Trading (the code of an account of this nature is 2219) to preserve the relevant category of foreign exchange earnings after examining the materials proving the authenticity of the relevant transactions pursuant to Article 3 hereof and based on the needs of the domestic institutions. The receipts shall fall into the category of foreign exchange earnings under trade of environmental interests, and the payments shall fall into the category of payments under the current account and payments under the capital account approved by the State Administration of Foreign Exchange.

Upon approval by the State Administration of Foreign Exchange, domestic institutions, such as the environmental exchanges, emission rights exchanges, and forest ownership exchanges, may open a Foreign Exchange Account for Cash Deposits from Special Trade (the code for an account of this nature: 3500). The receipts shall fall into the category of trading deposits by intended transferees and trading commissions and taxes to be paid by intended transferees; the payments shall fall into the category of foreign exchange margins that should be refunded to the transferees in cases of the failure of the transaction, the costs of deposits transferred to sellers after conclusion of the transaction, and commissions, taxes, and fees deducted by the exchanges.

The banks shall submit to the State Administration of Foreign Exchange detailed information on the account opening, balance, receipts, and payments for the aforementioned two categories of foreign exchange accounts through the information system for the management of foreign exchange accounts in compliance with the regulations.

5. Prior to the opening of the Capital Account Foreign Exchange Account for Environmental Interests Tradingat the banks, domestic institutions shall register the basic information with the foreign exchange authorities in their localities according to their business licenses and organizational code certificates.

Before opening the Foreign Exchange Account for Cash Deposits from Special Tradeat the banks, domestic institutions shall register the basic information with the foreign exchange authorities in their localities based on their business licenses and organizational code certificates. Domestic institutions that have already opened the aforesaid account prior to promulgation of this Circular shall, within 30 working days as of the date of promulgation, re-register the basic information with the foreign exchange authorities in their localities.

6. The foreign-related receipts and payments resulting from the sale or purchase of environmental interests such as carbon dioxide emissions reductions by domestic institutions shall be declared under the item of Capital Account  Purchase/Waiver of Non-productive and Non-financial Assets Receipts from Expenditures/Payments for the Transfer of Ownership of Other Intangible Assets; the code for foreign-related receipts and payments is 502030.Under the remarks column for the relevant transactions shall be included: the sale (or purchase) of quotas of carbon emissions reductions (or the specific types of environmental interests trading based on the actual situation).

The indirect declaration of BOP statistics for foreign-related receipts and payments generated from the Foreign Exchange Account for Cash Deposits from Special Tradeshall be handled in accordance with the Circular of the State Administration of Foreign Exchange on the Distribution of the Instructions for the Declaration of the Statistics on the Balance of Payments Through Financial Institutions (Hui Fa [2010] No. 22).

7. This Circular shall be interpreted by the State Administration of Foreign Exchange, and shall come into force as of the date of promulgation. Simultaneously, the reply of the General Affairs Department of the State Administration of Foreign Exchange on Conducting Foreign Exchange Business in terms of Emission Reductions Trade of Carbon Dioxide (Hui Zong Fu [2008] No. 27) shall be repealed.

The branches and foreign exchange administrative departments of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units under their respective jurisdictions. All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. Please provide feedback to the SAFE in a timely manner regarding any problems arising from implementation of this Circular.

Tel.: 010-68402350, 010-68402429

Fax: 010-68402430


                                                                                       December 3, 2010

 

 

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Circular of the State Administration of Foreign Exchange on Issuing the Guidelines for Inter-bank Foreign Exchange Market Makers

Date:2010-12-30

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; all policy banks, state-owned commercial banks, and joint-stock commercial banks; the China Foreign Exchange Trading System; and the Shanghai Clearing House:

To facilitate the reform of the exchange rate formation mechanisms and to increase foreign exchange market liquidity, in 2005 the SAFE introduced a market-maker system into the inter-bank foreign exchange market. This system has become a fundamental system that is significant in the foreign exchange market. To meet the demands of the foreign exchange market for rapid development, increase liquidity in the foreign exchange market, enhance the efficiency of the RMB price discovery mechanism, and guarantee stable operations of the foreign exchange market, the SAFE revised the Guidelines for Inter-bank Foreign Exchange Market Makers (for Trial Implementation) (Huifa No. 86 [2005]) to the Guidelines for Inter-bank Foreign Exchange Market Makers (see Annex) which are hereby issued.

All branches and foreign exchange administrative departments of the SAFE shall, upon receipt of this Circular, immediately forward it to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, rural cooperative banks, rural credit cooperatives, and foreign-funded banks within their respective jurisdictions.

If any problems are encountered in the process of implementation, please contact the Balance of Payments Department of the SAFE, tel: 010-68402586, 68402181.

                                                                                          August 30, 2010


affix1:
Namelist of Inter-bank Foreign Exchange Market Makers

 

 

 

 

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Circular of the State Administration of Foreign Exchange on Issues Concerning the Joint Handling of Forward Settlement and Sales of Foreign Exchange

Date:2010-12-28

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the designated national foreign exchange banks:

In order to enhance the capability of financial institutions to provide clients with services to hedge against exchange-rate risks, the following issues concerning the joint handling of forward settlement and sales of foreign exchange are hereby notified in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other relevant regulations:

1. The "joint handling of forward settlement and sales of foreign exchange refers to collaboration between a domestic bank and its branches that are not qualified to handle the forward settlement and sales of foreign exchange (hereinafter referred to as the cooperating banks) and a bank and its branches that are qualified to handle the aforesaid business (hereinafter referred to as the qualified bank) for the joint handling of forward settlement and sales of foreign exchange.

2. The head office (or main office) of a cooperating bank shall meet the following requirements:

(1) It must be qualified to operate spot settlement and sales of foreign exchange as ratified by the SAFE or its branches and sub-branches (hereinafter referred to as the foreign exchange authority) and must have engaged in the settlement and sales of foreign exchange for more than two years (inclusive);

(2) It should be free from all significant irregularities in the operation of spot settlement and sales of foreign exchange for the past two years (inclusive);

(3) Its average quarterly balance of foreign exchange assets for the previous year is equivalent to more than USD20 million (inclusive);

(4) It ranks as Grade-B or above in the appraisal of its compliance with the foreign exchange administration regulations for the past two years;

(5) It has a complete system for the management of joint handling of forward settlement and sales of foreign exchange;

(6) Other qualifications as required by the foreign exchange authority.

The branches or sub-branches of the cooperating bank shall obtain authorization from the head offices (or main offices) thereof, and shall satisfy the requirements in foregoing items (1), (2), and (4).

3. A qualified bank shall meet the following requirements:

(1) Its head office will have obtained qualifications to act as a forward-swap market maker or a general market maker on the inter-bank foreign exchange market;

(2) It is free from any significant irregularities in the operation of foreign exchange settlement and sales during the past two years (inclusive);

(3) It has a complete system for the management of joint handling of forward settlement and sales of foreign exchange;

(4) It ranks Grade-B or above in the previous years appraisal of its compliance with the foreign exchange administration regulations;

(5) Other qualifications as required by the foreign exchange authority.

4. A cooperating bank shall file an application with the foreign exchange authority in its locality for the joint handling of forward settlement and sales of foreign exchange. If the foreign exchange authority thereof is a central sub-branch or sub-branch of the SAFE, the foreign exchange authority thereof shall complete the preliminary examination within 20 working days as of the date of acceptance, and shall submit the results thereof to the relevant branch (or relevant administrative office) of the SAFE (hereinafter referred to as the foreign exchange branch) at the higher level. The foreign exchange branch thereof shall, within 20 working days from the date of receipt of the letter of application and other relevant documentation, make a decision as to whether or not to register the relevant application. For financial institutions that meet the relevant requirements, the foreign exchange branch shall issue the Notice of the State Administration of Foreign Exchange __   _ Branch (Administrative Office) on the Registration of the Joint Handling of Forward Settlement and Sales of Foreign Exchange (see Appendix 1), and shall keep the internal-use form thereof.

5. A cooperating bank shall, when applying for the joint handling of forward settlement and sales of foreign exchange, submit to the local foreign exchange authority the following materials:

(1) A letter of application;

(2) The management system for the joint handling of forward settlement and sales of foreign exchange, which includes instructions for business operations, assignment of internal responsibilities, the statistical reporting system, the risk control measures, accounting systems, and so forth;

(3) A template cooperation agreement signed with a qualified bank, in which the rights and obligations of both parties are specified;

(4) If the applicant is a branch or sub-branch of a bank, the applicant thereof shall, in addition to the aforesaid materials, submit to the relevant authorities the notice on the registration of the joint handling of forward settlement and sale of foreign exchange (in duplicate) which is granted by its head office (or main office) and the authorization documents from the same.

(5) Other documentation and materials as required by the local foreign exchange authority.

6. A cooperating bank shall comply with the following provisions when cooperating with a qualified bank for the handling of forward settlement and sales of foreign exchange:

(1) It shall abide by the existing regulations on the administration of forward settlement and sales of foreign exchange and it shall sign an agreement on the joint handling of forward settlement and sales of foreign exchange with the qualified bank and the client;

(2) It shall examine the regulatory compliance of its customer in the signing and fulfillment of the agreement on the handling of forward settlement and sales of foreign exchange, carry out separate accounting by creating specific accounts for the forward settlement and sales of foreign exchange, and close positions with the qualified bank on a case-by-case basis for its handling of forward foreign exchange settlement and sales for its customers.

(3) The qualified bank shall consider the joint handling of forward settlement and sales of foreign exchange to be forward settlement and sales of foreign exchange on behalf of its customers (the trading entity shall be determined based on the nature of the customers), which shall be incorporated into its comprehensive position of the settlement and sale of foreign exchange for statistical and management purposes, and shall submit the relevant statistical statements to the foreign exchange authority in compliance with the requirements of banks regarding statistics on foreign exchange settlement and sales and so forth. The cooperating bank shall assist the qualified bank in fulfilling the statistical obligations;

(4) The cooperating bank shall, within the first 5 working days of each month, submit to the local foreign exchange authority the Statistical Statement on the Joint Handling of Forward Settlement and Sales of Foreign Exchange (see Appendix 2).

7. The joint handling of forward settlement and sales of foreign exchange shall be incorporated into the annual appraisal of the qualified bank and cooperating bank by the local foreign exchange authority.

If a cooperating bank is involved in significant irregularities in the operation of the foreign exchange settlement and sales, or is scored a Grade-C in the annual appraisal, its qualifications to operate forward settlement and sales of foreign exchange shall be suspended thereby.

If a qualified bank is involved in significant irregularities in the operation of the foreign exchange settlement and sales, or fails to meet the requirements as stated in Article 3 of this Circular, the foreign exchange authority shall notify the cooperating bank in a timely manner of the termination of the cooperation with the aforesaid qualified bank for the joint handling of forward settlement and sales of foreign exchange.

8. A cooperating bank shall, when supplementing or changing its cooperating partner or when terminating the cooperation with a partner, report the relevant circumstances to the local foreign exchange authority for the record 20 working days before the relevant supplement, alteration, or termination is implemented.

9. Foreign exchange branches shall, within the first 10 working days of each year, complete and submit the List on the Joint Handling of Forward Settlement and Sales of Foreign Exchange by Institutions within the Jurisdiction (see Appendix 3) with the relevant data acquired by the end of the previous year, and it shall send it in a timely manner to the information portal Web site of the SAFE (manage@bop.safe). 

10. If cooperating bank or a qualified bank handles the forward settlement and sales of foreign exchange in violation of the regulations with a qualified bank or a cooperating bank, penalties shall be imposed on the aforesaid cooperating or qualified bank by the foreign exchange authorities in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and the relevant regulations.

The SAFE branches shall, upon receipt of this Circular, promptly forward it to the central sub-branches and branches of the SAFE as well as to the relevant financial institutions within their respective jurisdictions. If any problems are encountered during implementation, please refer them to the SAFE in a timely manner.
Tel: 010-68402374, 68402464.


                                                                        December 1, 2010


affix1:
Notice of the SAFE ___ Branch (Administrative Office) on the Registration of Joint Handling of Forward Settlement and Sales of Foreign Exchange (Internal-Use Form)
affix2:
Statistical Statement on the Joint Handling of Forward Settlement and Sales of Foreign Exchange
affix3:
List of Institutions within the Jurisdiction involved in the Joint Handling of Forward Settlement and Sales of Foreign

 

 

 

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Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening the Administration of Foreign Exchange Operations

Date:2010-11-09

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks:

In order to prevent financial risks caused by cross-border flows of capital, issues related to the strengthening of the administration of foreign exchange operations are hereby notified as follows:

1. Strengthen administration of the banks comprehensive positions in the settlement and sales of foreign exchange. Implement a minimum level of management of the banks balance of positions calculated on a cash basis based on the current management of the comprehensive position limits for foreign exchange settlement and sales. The lower limit of the position shall be the position of the day on a cash basisas presented in the Daily Statement of the Comprehensive Position of Foreign Exchange Settlement and Sales issued by each bank on November 8, 2010.

2. Tighten administration of online inspections of foreign exchange collections and settlement for exports. Abrogate the provision that In the event that the enterprise has an insufficient balance of foreign exchange receivables due to a delay in the transmission of data on exports, the banks may, on the strength of the letter of commitment submitted by the enterprise, settle or transfer the funds in the accounts to be verified.The banks shall, in light of the limits on the balance of foreign exchange receivables, settle or transfer the funds in the accounts to be verified. The proportion of foreign exchange collection from the processing of imported materials shall be uniformly reduced from 30 percent to 20 percent. In the event that the proportion of the actual collection of foreign exchange for customs declaration for a single batch of exported goods under trade for the processing of imported materials exceeds 20 percent, the banks shall handle the relevant business in accordance with the existing regulations on foreign exchange collection for the processing of imported materials with the proportion of exchange collected in excess of the prescribed limit.

3. Strengthen administration of the quotas on short-term external debts and the balance of external guarantees of financial institutions. In the event that banks conduct agency payments abroad for the business subsequent to the issuance of L/Cs to their customers and the total time limit of both payments exceeds 90 days, the amount under the agency payment abroad shall be incorporated into the quota control of the short-term external debt. The foreign exchange authorities shall monitor and provide early warnings about the circumstances, such as the banksborrowing of short-term external debt and the provision of external guarantees for financing in violation of the regulations, and shall impose tight restrictions on bank operations in excess of the quotas.

4. Strengthen administration of capital contributions by overseas investors of foreign-funded enterprises. In the event that the actual payer is inconsistent with the overseas investor of a foreign-funded enterprise, the foreign-funded enterprise shall submit a notarized certification of the proxy contribution when entrusting an accounting firm to consult the foreign exchange authorities for capital verification.

5. Strengthen examination of the authenticity of the settlement of funds repatriated as capital raised from overseas listings in accordance with the requirements for foreign exchange settlements for payments. The materials certifying authenticity shall be examined in accordance with the relevant regulations on foreign exchange administration for the settlement of capital funds in foreign exchange for foreign-funded enterprises. The foreign exchange settlement shall be conducted in compliance with the purposes specified in the prospectus; for any amount that exceeds the planned limit on fund raising or goes beyond the purposes stated in the prospectus, a board resolution concerning the purposes of the foreign exchange settlement shall be submitted. The foreign exchange that is to be settled and paid to the other party in the transaction shall not be settled and deposited in the Renminbi account of the enterprise.

6. Strengthen administration of overseas incorporations of companies with special purposes by domestic institutions and individuals, and impose penalties on enterprises and individuals operating in violation of the regulations.

7. Impose penalties on banks operating in violation of the regulations by complying strictly with the law. Banks shall strengthen verification and examination of the authenticity of transactions by their customers and the consistency of foreign exchange receipts and payments. For those bank operations in violation of the foreign exchange regulations that result in illegal inflows of funds, the foreign exchange authorities shall impose penalties in the form of fines, termination of relevant operations, circulation of notices of criticism, and so forth, and shall investigate the responsibilities of the senior management staff who are directly liable for the violations.

This Circular shall come into effect as of the date of promulgation. All the branches and administrative departments of the SAFE shall, after receipt of this Circular, forward it as soon as possible to the central sub-branches, sub-branches, and banks within their jurisdictions. All Chinese-funded designated foreign exchange banks shall, after receipt of this Circular, forward it to their branches and sub-branches as soon as possible.  If any problems arise in the implementation of this Circular, please report them to the SAFE in a timely manner.

Tel.: 010-68402295, 68402450, 68402366

 

 

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Circular of the State Administration of Foreign Exchange on Issues Concerning Implementation of the Reform of the Verification and Writing-off System for Foreign Exchange Payments for Imports

Date:2010-10-27

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks:

In order to expedite the reform of the verification and writing-off system for imports and exports and to achieve the transformation of foreign exchange administration for trade in goods from the current model to aggregate verification, off-site verification, and subject-based supervision, on May 1, 2010 the State Administration of Foreign Exchange (SAFE) launched a program for pilot implementation of the reform of the verification and writing-off system for foreign exchange payments for imports for trade in goods (hereinafter referred to as import verification reform) in seven regions, i.e., Tianjin, Jiangsu, Shandong, Hubei, Inner Mongolia, Fujian, and Qingdao. Based on the results, the SAFE has decided to promote implementation of the import verification reform throughout the country. The relevant issues concerning the reform are hereby notified as follows:

1. The import verification reform aims to promote the facilitation of trade, reduce operating costs for enterprises and banks, and meet the new requirements for foreign trade by transforming the methods and approaches for foreign exchange administration. It is based on authenticity principles and the human-oriented concepts. Efforts will be made to effectively check cross-border capital flows in violation of the laws and regulations by comprehensively looking at and comparing all the information available about cash and goods flows of enterprises and by enhancing constant and dynamic monitoring and analysis. To fulfill this goal, the foreign exchange authorities will collect complete information about foreign exchange payments for imports and the delivery of goods by enterprises and will carry out off-site aggregate comparisons on the strength of the information system, based on which the foreign exchange payments of enterprises for imports will be monitored and analyzed through off-site monitoring and a early-warning mechanism and abnormal conduct will be identified in a timely manner. Based on the information from the off-site monitoring, early warning, and on-site verification, efforts will be made to evaluate and categorize the enterprises. The basic idea of the reform is to achieve a transformation from case-by-case verification to aggregate verification for the administration of foreign exchange payments for imports, from on-site verification to off-site inspection, and from behavioral examination to subject supervision.

2. The Interim Measures for the Administration of Foreign Exchange Payments for the Import of Goods and its detailed rules for implementation (hereinafter referred to as the Interim Measures,see Appendices 1 & 2) shall enter into effect as of December 1, 2010. As of the date of implementation of the Interim Measures, import enterprises shall make foreign exchange payments for imports in compliance with the Interim Measures. The banks will handle foreign exchange payments for import enterprises in compliance with the Interim Measures.

3. The banks shall complete connection of the verification system for the collection and payment of foreign exchange under trade (hereinafter referred to as the verification system) to their business systems and the relevant configurations before November 30, 2010, and shall search the directory of the import enterprises, registration forms for foreign exchange payments for imports, grades for classified evaluation, and so on through the verification system as of the date when the Interim Measures are implemented.

4. The import verification reform is of great significance for promoting the facilitation of trade. The branches of the SAFE, in attaching great importance to the reform, will make the overall work arrangements and endeavor to fulfill the following tasks:

1) Unify awareness of the significance of the reform and play an active role in organizing and leading the reform. All branches shall fully understand the great significance of the import verification reform, form a reform leading group headed by a relevant director to lead and oversee the progress of the reform in their respective jurisdictions, and coordinate with the relevant departments to provide strong support for the reform. Work teams consisting of business and technical staff shall be formed under the reform leading group to be responsible for implementation of the reform and for dissemination and interpretation of the policies, providing business and technical support, feedback, and so forth within their jurisdictions.

2) Implement aggregate verification, dynamic monitoring, and classified administration to improve the effectiveness of the supervision by complying with the relevant provisions of the Interim Measures.

3) Strengthen publicity and training. By complying with the overall planning of the SAFE, the branches shall fulfill their duties to disseminate and interpret the policies through various methods and shall guide and urge banks and import enterprises in immediately comprehending the general idea of the reform and the purposes of the relevant policies. The branches shall provide training of various forms to functionaries of the foreign exchange authorities, banks, and import enterprises within their jurisdictions in an effort to facilitate their comprehension of business operations under the new policies and to ensure the effective implementation of the reform measures.

4) Provide strong technical support for the installation and commissioning of the software for the verification system used in enterprises and banks within their jurisdiction.

5) Report information about implementation of the import verification reform to the SAFE on a monthly basis.

5. Emergency measures

In the event that the verification system malfunctions temporarily due to data-input failures and so forth, the branches shall promptly report the circumstance to the import verification reform office of the SAFE for resolution and shall record the relevant problems. During this period, the foreign exchange authorities shall create a ledger for the import payments for which they are responsible and accordingly shall make a business record.

6. Logging  on to the verification system

Address of the verification system (foreign exchange authority version) http://100.1.63.3:9001/SafeChk/;

Address of the verification system (bank version): http://asone.safe:9101/asone/;

Address of the verification system (corporate version): http://asone.safesvc.gov.cn/asone.

Contact information for the import verification reform office of the SAFE:

Tel.: 010-68402546   010-68402547

Fax: 010-68402594

E-mail addresses:  (Intranet) tradebus@mail.safe

                                            tradetech@mail.safe

                            (Extranet) tradebus@mail.safe.gov.cn

                                            tradetech@mail.safe.gov.cn

All branches (foreign exchange administration departments) of the SAFE shall, as of the date of promulgation of this Circular, make preparations for the relevant work and shall forward this Circular to the central sub-branches (sub-branches), banks, and import enterprises within their jurisdictions as quickly as possible.


affix1:
Interim Measures for the Administration of Foreign Exchange Payments for the Import of Goods
affix2:
Detailed Rules for Implementation of the Interim Measures for the Administration of Foreign Exchange Payments for the Import of Goods

 

 

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Circular of the State Administration of Foreign Exchange on Regulating the Administration of Foreign Currency Bank Cards

Date:2010-10-20

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; China UnionPay Co., Ltd.; and all designated Chinese-funded foreign exchange banks:

To regulate the administration of foreign currency bank cards and facilitate the general publics understanding of the management policies for foreign currency bank cards, the State Administration of Foreign Exchange straightened out and integrated the laws and regulations on foreign exchange administration relating to foreign currency bank cards. We hereby notify you of the relevant issues as follows:

I. The term foreign currency bank cards as referred to in this Circular includes domestic foreign currency cards, which refers to those issued by domestic financial institutions (hereinafter referred to as domestic cards), and foreign bank cards, which refer to those issued by overseas institutions (hereinafter referred to as foreign cards), with the exception of RMB cards issued overseas institutions..

II. Classification of domestic cards

1. According to whom the cards are issued, domestic cards are classified into personal cards, i.e., those issued to natural persons, and entity cards, i.e., those issued to legal persons or other organizations and are to be used by the persons designated by such entities.

2. According to whether a line of credit is granted to the holder, domestic cards are classified into credit cards, which, within the line of credit granted by the issuing financial institution, allows the holders to use it before payment, and debit cards, the holders of which have no line of credit and must make a deposit on the cards before use.

3. According to the currency for which they are issued, domestic cards are classified into foreign currency cards, which refers to cards denominated in only one foreign currency, and home-foreign currency cards, which refers to cards denominated in both RMB and one or more foreign currencies.

III. Issuance and Use of Domestic Cards

1. Domestic financial institutions may issue foreign currency entity credit cards, provided that there is no foreign exchange fund in such cards. They may also issue foreign currency entity debit cards to entities that have foreign exchange accounts under the current account with the issuing financial institutions, provided that the foreign exchange funds in these cards shall be incorporated into the fund management in the foreign exchange accounts under the current account.

2. Personal cards can be used to draw cash in RMB over the counter of domestic banks, and the banks that accept personal cardholdersapplications for drawing cash in RMB shall promptly enter the foreign exchange settlement information into the management information system for individual foreign exchange settlement and sale information. Personal cards can also be used to draw cash in foreign currencies listed for exchange over the counter of the card-issuing financial institutions, but may not be overdrawn or be used at ATM to draw cash in foreign currencies.

3. Entity cards may not be used to draw cash in any foreign currency or RMB within the territory of China .

4. Domestic cards can be used outside of China to pay for consumption under the current account, but may not be used to pay for other transactions. See Items 5 through 10 below for the detailed management rules.

5. All card-issuing financial institutions shall configure their systems based on the merchant category codes (MCC) listed in the Merchant Category Codes for the Use of Domestic Bank Cards outside of China (See Annex 1) and strictly restrict offline transactions.

6. The merchant category codes as listed in Annex 1 include three categories: completely prohibited, limited in terms of amount, and fully open. Completely prohibited codes refer to codes for which the cardholders are prohibited from carrying out transactions. Limited-in-amount codes refer to codes for which the amount of a single transaction made by a cardholder is limited to the equivalent of USD5, 000 or less, with the exception of the codes 6010 and 6011. Fully open codes refer to the codes for which there is no limit to the transaction amount.

7. Card-issuing financial institutions shall set a limit on cash withdrawals overseas under the merchant category codes 6010 (cash withdrawals over the counter) and 6011 (cash withdrawals at ATMs). The limit shall be the equivalent of USD1,000 per day cumulatively, USD5,000 per month cumulatively, and USD10,000 for each six months cumulatively.

8. All card-issuing financial institutions that carry out authorized transactions through an international bank card organization shall abide by the provisions of this Circular.

9. Card-issuing financial institutions that fail to set up the system in time due to technical problems or for any other reason shall report the incompliant transactions that occurred each month one by one to the State Administration of Foreign Exchange.

10. The merchant category codes listed in Annex 1 include four bank card organizations, i.e., Visa, MasterCard, American Express, and JCB. Financial institutions that issue cards bearing the symbol of other bank card organizations must report the involved merchant category codes to the State Administration of Foreign Exchange for archival purposes.

IV. Acquiring Services for Foreign Cards

1. With a foreign card, one can withdraw cash in RMB within the territory of China . To withdraw cash over the counter, the bank shall promptly enter the foreign exchange settlement data into the management information system for individual foreign exchange settlement and sale; to withdraw cash at an ATM, the maximum amount shall be RMB3, 000 for each time.
With a foreign card, one can also withdraw cash in foreign currencies over the counter of a domestic financial institution; withdrawals in foreign cash are not allowed at ATMs.

2. With regard to the un-used part of the RMB cash withdrawn within the territory of China by an overseas individual with a foreign card, he/she may, within 6 months after such withdrawal, have the amount converted back into the foreign currency over the counter of a bank upon the strength of the original voucher, such as the relevant ATM slip or the slip obtained at the counter of the acquiring financial institution, and may remit or carry it out of China in line with the relevant provisions.

3. Deposits of money into a foreign card through a domestic financial institution shall be deemed as remitting money overseas and shall be governed by the relevant provisions of the SAFE.

4. Foreign-funded financial institutions within the territory of China that have not opened the RMB business shall, when providing acquiring services for foreign cards, settle the RMB funds for the bank card through a special RMB account for foreign exchange settlement and sale opened upon the approval of the branch or sub-branch of the Peoples Bank of China in the place where the institution is located.

V. Clearing, Payment, and Exchange Purchases with Foreign Currency Bank Cards

1. The use of foreign currency bank cards within the territory of China shall be governed by the provisions on foreign exchange administration prohibiting the valuation or settlement in foreign currencies within the territory of China . The settlement of transactions involving foreign currency bank cards accepted by domestic merchants (including duty-free shops) with the acquiring financial institutions shall be made in RMB.

2. Domestic card transactions within the territory of China shall be settled in RMB through domestic clearing channels after deducting the amount of cash in foreign currencies withdrawn over the counter. Any overdraft arising from domestic transactions shall be paid by the cardholder in RMB.

3. If, for any reason, the clearing of domestic transactions made within the territory of China with domestic cards is made through an international bank card organization, the card-issuing financial institution may, after clearing in foreign currency, purchase exchange with the RMB funds repaid by the cardholder to make up for the foreign exchange that has been used in the clearing. Clearing through an international bank card organization refers to two circumstances: the clearing of domestic transactions made with domestic foreign currency cards through an international bank card organization; and wrong throw,in which the clearing is made through an international bank card organization due to the acquiring service institutions mistreating a domestic home-foreign currency card as a foreign currency card, which, when used within the territory of China, shall be regarded as a RMB card.

4. The exchange received by an acquiring financial institution from an international bank card organization in connection with foreign currency bank card transactions within the territory of China shall, after deducting the amount of cash withdrawn over the counter in foreign currencies, be promptly settled.

5. Clearing between a merchant approved to accept, outside the territory of China , foreign currency bank cards, such as a domestic airline company, and an acquiring financial institution may be conducted in foreign exchange, and the card-issuing financial institution may make payments in foreign exchange.

6. For any overdraft of a domestic card arising from consumption or cash withdrawals outside China , the cardholder may make repayments with either his/her own foreign exchange or with the foreign exchange purchased from the card-issuing financial institution.

7. Where a card-issuing financial institution handles the foregoing exchange sales, the amount of exchange sold may not exceed the amount of foreign currency overdraft already accumulated on the domestic card, and the foreign exchange must be directly used to pay off the existing overdraft.

8. Various expenses by the domestic cards, annual fees, and fees for card replacement shall be calculated and charged in RMB, while other expenses may be either directly withheld by the banks from the exchange balance in the cards or paid by the cardholders in RMB.

9. Except for foreign exchange settlement for consumption within the territory of China with foreign currency cards (including domestic cards and foreign cards), withdrawal of RMB cash at ATMs with foreign cards and foreign exchange purchases for repayment of consumer expenditures made overseas with domestic cards, the individual foreign exchange settlement and sale business by bank cards shall be entered into the management information system for individual foreign exchange settlement and sale in line with the provisions.

10. Individuals who handle foreign exchange transactions through bank cards both inside and outside China must strictly observe the Measures for Individual Foreign Exchange Administration (Decree No. 3 [2006] of the Peoples Bank of China), the Detailed Rules for the Implementation of the Measures for Individual Foreign Exchange Administration (Annex to Document of Huifa No. 1 [2007]), and other provisions on individual foreign exchange administration.

VI. Statistics and Filing of the Relevant Business of Foreign Currency Bank Cards

1. According to the principle of territorial jurisdiction, the foreign exchange settlement and sales statistics pertaining to foreign currency bank cards shall be made by the financial institutions receiving and settling the foreign exchange or withholding the amount in RMB and purchasing foreign exchange.

2. Declaration of the balance of payments statistics in connection with foreign currency bank cards shall be made in line with the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Operating Rules for the Declaration of Balance of Payments Statistics through Financial Institutions (Huifa No.22 [2010]).

3. All card-issuing financial institutions shall summarize and annually file the Statistical Statements on Transactions and Foreign Exchange Purchases of Domestic Foreign Currency Bank Cards (see Annex 2) with the State Administration of Foreign Exchange. The statistical statements shall be submitted in hard copy (affixed with the official seal of the business department) within one month after the end of each year to: Huarong Plaza , No. 18, Fucheng Road , Haidian District, Beijing . Addressee: Bank Foreign Exchange Receipt and Expenditure Division, Balance of Payments Department of the State Administration of Foreign Exchange. Postal code: 100048.

4. Regarding large-sum deposits, cash withdrawals, or consumptions by foreign currency bank cards, the domestic financial institutions shall strictly fulfill the reporting obligations for anti-money laundering purposes.

VII. Others

1. The consumption, cash withdrawal limits, and reporting of large-sum transactions with the affiliated cards of a domestic card shall be managed under the same account as the principal card.

2. In this Circular, one month refers to a calendar month, and six monthsrefers to six consecutive calendar months.

3. Domestic RMB card clearing organizations shall do a good job in the RMB clearing of domestic transactions involving home-foreign currency cards. Card-issuing financial institutions must report the bank identification number (BIN) of their home-foreign currency cards to the domestic RMB card clearing organizations for download by the acquiring financial institutions. The acquiring financial institutions shall properly set up bank card systems under which a RMB card is preferred over other cards when being read.

4. For the use of RMB cards outside of China , domestic RMB card clearing organizations responsible for information transfers shall make system setups in a unified way under the guidance of Annex 1. Domestic RMB card clearing organizations shall put Code 6010 in the completely prohibited category to prevent the use of RMB cards for the withdrawal of cash over the counter of banks outside of China . Monetary limits shall be set on Code 6011 which shall be the equivalent of RMB10, 000 per card per day.

5. Financial institutions operating foreign currency bank card business shall inform its customers of the foreign exchange administration policies in relation to foreign currency bank cards in a comprehensive and objective manner, and explain to the public the administrative provisions concerning the scope of use, overdrafts, and repayment of foreign currency bank cards. Any unilateral publicity or misleading representation shall be prevented.

6. All local foreign exchange authorities shall follow up and inspect implementation of the foreign exchange administration regulations and policies by domestic financial institutions within their jurisdiction of any dubious information involved in the publicity and business development in connection with the foreign currency bank cards. Any financial institution that makes any unilateral or false publicity shall be ordered to make corrections. The local foreign exchange authorities may, pursuant to the Regulations of the Peoples Republic of China on Foreign Exchange Administrtion and other relevant foreign administration regulations, impose penalties on the financial institutions, merchants, and individuals that violate the provisions on foreign exchange administration.

VIII. This Circular shall come into force as of November 1, 2010. At the same time, the Circular of the State Administration of Foreign Exchange on Regulating the Administration of Foreign Currency Bank Cards (Huifa No.66 [2004]), the Circular of the State Administration of Foreign Exchange on Issuing the Merchant Category Codes Prohibited and Restricted for the Use of Domestic Bank Cards outside China (Huihan No.19 [2004]), the Circular of the State Administration of Foreign Exchange on Updating the Merchant Category Codes for the Use of Domestic Bank Cards outside China (Huifa No.110 [2004]), and the Circular of the State Administration of Foreign Exchange on Regulating Some New Merchant Category Codes for the Use of Domestic Bank Cards outside China (Huifa No.55 [2007]) shall be abolished.

All branches and foreign exchange administration departments shall, after receiving this Circular, forward it to all central sub-branches, sub-branches, and Chinese-funded and foreign-funded financial institutions as soon as possible. In cases of any problems encountered during implementation, please immediately report them to the Balance of Payments Department of the State Administration of Foreign Exchange. Tel: 010-68402313, fax: 68402315.

 

 

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Circular of the State Administration of Foreign Exchange on Relevant Issues concerning the Administration of the Banks Synthetic Positions in Foreign Exchange Settlement and Sales

Date:2010-10-20

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

For the purpose of regulating the administration of the bankssynthetic positions in foreign exchange settlement and sales, the SAFE has formulated this Circular in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration. This Circular has collated and integrated the existing regulations on the administration of the bankssynthetic positions in foreign exchange settlement and sales. We hereby notify you as follows:

I. The term bankssynthetic positions in foreign exchange settlement and sales (hereinafter referred to as positions) refer to the foreign exchange positions held by the designated foreign exchange banks (hereinafter referred to as the banks) arising from transactions between RMB and foreign currencies, which are formed from the bankssettlement and sales of foreign exchange for their clients in conformity with the administrative provisions on foreign exchange, from the settlement and sales of foreign exchange on their own, and from participation in transactions on the inter-bank foreign exchange market.

II. The SAFE and its branches and foreign exchange administrative departments (hereinafter referred to as the foreign exchange authorities) shall be responsible for ratification of the limits for the bankspositions and the daily management thereof.

(1) The SAFE shall be responsible for the ratification and daily management of the positions of the policy or national banks.

(2) The local branches and foreign exchange administrative departments of the SAFE (hereinafter referred to as the SAFE branches) shall be responsible for the ratification and management of the positions of urban commercial banks, rural commercial banks, rural cooperative financial institutions, foreign-funded banks, and the finance companies of enterprise groups (hereinafter referred to as local financial institutions). The SAFE branches may authorize the central sub-branches within their respective jurisdictions to carry out the daily management of the positions of the banks.

(3) Where a SAFE branch intends to ratify the positions of a local financial institution, the upper limit of which is USD1 billion or more, or to ratify the positions of a local financial institution which exercises the function of market-maker on the inter-bank foreign exchange market, it shall carry out a preliminary examination and then report it to the SAFE for unified ratification.

III. Principles for the administration of positions

(1) Unified ratification of legal persons. The foreign exchange authorities shall uniformly ratify the positions of the banks under the principle of regulation of legal persons and shall not separately ratify the positions of the branches of a bank (except the branches of a foreign bank).

(2) Management of limits. The foreign exchange authorities shall adopt the administrative model of ratification of limits for the positions in accordance with the balance of payments, the foreign exchange business operations of banks, and other factors.

(3) Management on an accrual basis. A bank shall include the foreign exchange settlement and sales for its clients, the foreign exchange settlement and sales of its own, and transactions on the inter-bank foreign exchange market in the positions on the day when the transaction is concluded (rather than the day when the capital is actually received and paid).

(4) Examination and regulation on a daily basis. A bank shall manage the positions of the entire bank on a daily basis, and shall maintain the positions at the end of each trading day within the limits ratified by the foreign exchange authority. If the positions exceed the limits at the time, the bank shall adjust the positions within the limits before the end of the next trading day.

(5) Reconciling the balance of positions against the accounting subjects on a regular basis. For differences, the bank may apply to the foreign exchange authority on an annual basis for an adjustment, and for differences caused by a variance in the currency conversion or any other reasonable reason, the foreign exchange authority may directly approve the adjustment; for differences resulting from false reporting or missed statistical data, the foreign exchange authority may approve the adjustment, but shall issue a sanction for violation of the relevant regulations.

IV. Specific management requirements for positions

(1) A bank shall, within 30 work days after obtaining the qualification to operate the business of foreign exchange settlement and sales, apply to the foreign exchange authority for ratification of its position limits.

(2) Where the volume of foreign exchange settlement and sales of a bank undergoes any significant change and its position limits need to be adjusted, the bank shall file a written application with the foreign exchange authority. The bank shall not adjust the position limits without approval.

(3) When applying for ratification or adjustment of the position limits, a bank shall submit the following materials to the foreign exchange authority:

a. a request for instructions on ratification or adjustment of the position limits;

b. the measurement and calculation basis for the ratification or adjustment of the position limits;

c. the domestic consolidated balance sheet in both RMB and foreign currency and the domestic balance sheet in foreign currency at the end of the year prior to application; and

d. other documents and information as required by the foreign exchange authority.

(4) The foreign exchange authority shall, in light of the actual business operational needs, the volume of settlement and sales, as well as the receipt and payment of foreign exchange on behalf of clients, capital (or working capital) in RMB and foreign currencies, asset status, and other factors, ratify the position limits of the bank. In principle, the foreign exchange authority shall adjust the position limits of the bank not more than once during a calendar year.

(5) A bank whose position limits have not been ratified by the foreign exchange authority will be subject to zero-position management, the net balance between the settlement and sales of foreign exchange on the current business day shall be balanced through the inter-bank foreign exchange market on the next business day.

(6) The transactions for balancing the positions among banks shall be carried out through the inter-bank foreign exchange market. No bank may square off the positions over the counter without approval by the foreign exchange authority.

(7) Where a bank takes the initiative to apply for closure of the business of foreign exchange settlement and sales or has its qualifications for operating the business of foreign exchange settlement and sales cancelled by the foreign exchange authority for illicit business operations, it shall, within 30 work days after the closing down of the business of foreign exchange settlement and sales, file an application with the foreign exchange authority and clear the positions until the date of closure of the said business upon approval of the foreign exchange authority.

V. The administrative provisions on positions in this Circular shall not apply to  foreign-funded banks that are qualified for foreign exchange settlement and sales, but are not approved to operate RMB businesses.  Such banks shall be governed by the following provisions:

(1) The bank shall use the special RMB account for foreign exchange settlement and sales opened with the local branch or sub-branch of the Peoples Bank of China (PBC) in accordance with the Detailed Rules for Implementation of the Foreign Exchange Settlement, Sales, and Payments of Foreign-funded Banks (Yinfa No. 202 [1996]).

(2) The balance in the special RMB account for foreign exchange settlement and sales shall be subject to control. The account balance shall not exceed the equivalent of 20% of the registered foreign exchange capital or working capital of the bank, and the bank may conduct the RMB and foreign exchange conversion on its own to the extent that it does not exceed the balance.

(3) The bank may open and use a special RMB cash account for foreign exchange settlement and sales in accordance with the Circular of the Peoples Bank of China on Relevant Issues concerning the Opening of Special RMB Cash Accounts for Foreign Exchange Settlement and Sales by Foreign-funded Banks (Yinfa No.180 [2003]). The balance in the special RMB cash account for foreign exchange settlement and sales shall be incorporated into the balance in the special RMB account for foreign exchange settlement and sales for the purposes of balance control.

(4) The bank shall, within 30 work days after obtaining the approval of the CBRC to handle the RMB business, apply to the foreign exchange authority for ratification of the position limits in accordance with Part IV of this Circular, and shall, during the process of application, submit the document issued by the CBRC granting it approval to handle the RMB business. The bank shall, within 10 work days after obtaining the ratified limits, apply to the local branch or sub-branch of the PBC to close the special RMB account for foreign exchange settlement and sales in accordance with the Circular of the Peoples Bank of China on Relevant Issues concerning the Special RMB Accounts for Foreign Exchange Settlement and Sales (Yinfa No. 292 [2005]), and adjust the synthetic positions in foreign exchange settlement and sales within the range of the ratified position limits.

VI. Centralized management of the positions of the branches of a foreign bank

(1) For a foreign bank that has two or more branches in China, the head office or regional headquarters thereof may authorize a branch within China (hereinafter referred to as branch responsible for centralized management) to carry out centralized management of the positions of its branches within China.

(2) Where the branches of a foreign bank adopt centralized management of the positions, the branch responsible for the centralized management shall file an application with the local SAFE branch. The application materials shall include the following:

a. the letter of authorization granted by the head office approving implementation of the centralized management of the positions;

b. the approval document issued by the CBRC for the resident office of the foreign-funded financial institution within China ; and

c. the explanation by the foreign bank of its internal management system, accounting methods, and technical support for implementation of the centralized management of the positions.

(3) The SAFE branch shall, upon receipt of the application, visit the business office of the branch responsible for centralized management, and inspect and check on-the-spot the supporting technical system for the centralized management of the positions of the bank. If the relevant requirements are met, the SAFE branch shall, within 20 work days upon acceptance of the application, give its opinions on the approval of the centralized management of the positions by the branch responsible for the centralized management, send a copy to the SAFE, and simultaneously send a copy to the local SAFE branches or sub-branches in the places where the branches of the foreign bank are located.

(4) After the branches of a foreign bank are placed under centralized management of the positions, the original positions of all the branches or sub-branches of the foreign bank within China shall be incorporated into the positions of the branch responsible for the centralized management for the purposes of management, and shall be uniformly squared and managed by the branch responsible for the centralized management. If any new branch or sub-branch of the foreign bank is added under the centralized management of the positions, the branch responsible for the centralized management and the new branch or sub-branch shall file with their local SAFE branches respectively 10 work days in advance.

(5) After the branches of a foreign bank are placed under the centralized management of the positions, the local SAFE branch in the place where the branch responsible for the centralized management is located shall be responsible for the ratification and daily management of the position limits; if the branch responsible for the centralized management exercises the function of a market-maker on the inter-bank foreign exchange market, Part II (3) of this Circular shall apply. When the branch responsible for the centralized management applies for or adjusts the position limits, the measurement and calculation basis shall be the aggregate data of all the foreign banks branches and sub-branches within China .

(6) After the branches of a foreign bank are placed under the centralized management of the positions, if neither the branch responsible for the centralized management nor any other branch or sub-branch under the centralized management has opened an RMB business, the relevant provisions of Part V of this Circular shall apply. If the branch responsible for the centralized management has opened an RMB business, and other branches or sub-branches within China have not opened an RMB business, the branches or sub-branches which have not opened an RMB business shall still be governed by the relevant provisions of Part V of this Circular, but the balance in their special RMB accounts for foreign exchange settlement and sales shall be converted into US dollars and be recorded with a negative value into the positions of the branch responsible for the centralized management.

VII. Data submission

(1) Each SAFE branch shall, within 20 work days after the beginning of each year, fill out the Form of the XX Branch (Foreign Exchange Administrative Department) of the State Administration of Foreign Exchange on the Ratification of Limits for the Synthetic Positions in Foreign Exchange Settlement and Sales of Financial Institutions within the Jurisdiction (See Annex 1), and send an e-mail to the Intranet e-mail box of the SAFE (manage@bop.safe).

(2) All banks shall, in accordance with the requirements of the Daily Statements on the Synthetic Positions in Foreign Exchange Settlement and Sales and the Directions for Submission (see Annex 2), submit all relevant data on the synthetic positions to the foreign exchange authorities in a timely and accurate manner.

(3) Each bank shall fill in under the Remarkscolumn in the Daily Statements on the Synthetic Positions in Foreign Exchange Settlement and Sales the transaction information on the foreign exchange settlement and sales for clients, its own transactions of foreign exchange settlement and sales, and contract transactions of forward foreign exchange settlement and sales for clients, the single sum of which exceeds the equivalent of USD50 million on the current day, and shall submit the transaction information, including the clients name, item, amount, currency, and term (limited to forward foreign exchange settlement and sales contracts) for each transaction.

VIII. Where a bank violates the administrative provisions on the positions, the foreign exchange authority shall punish it in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other laws and regulations.

IX. This Circular shall come into force as of the date of promulgation. If there is any discrepancy between any previous provisions and this Circular, this Circular shall prevail. The documents on foreign exchange administration as listed in Annex 3 shall be abolished on the date of implementation of this Circular.

All SAFE branches shall, upon receipt of this Circular, promptly forward it to the central sub-branches and branches of the SAFE, urban commercial banks, rural commercial banks, rural cooperative financial institutions, and foreign-funded banks within their respective jurisdictions. If any problems are encountered during implementation, please contact the Balance of Payments Department of the SAFE. Tel: 010-68402374, 68402464.

 

 

 

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Circular of the SAFE on Launching a Pilot Policy Program for Overseas Deposits of Export Proceeds in Some Regions

Date:2010-08-27

 

In order to increase the efficiency of funds utilization by domestic enterprises and to further promote trade facilitation, the State Administration of Foreign Exchange has, in accordance with the relevant provisions of the Regulations of the Peoples Republic of China on Foreign Exchange Administration, decided to carry out a pilot policy for overseas deposits of export proceeds in Beijing, Guangdong (including Shenzhen), Shandong (including Qingdao), and Jiangsu for one year starting from October 1, 2010. We hereby notify you of the relevant requirements for the pilot policy as follows:

1. A domestic enterprise in a pilot region that has a desire to deposit export proceeds overseas and meets the prescribed conditions may file an application with the local branch office of the State Administration of Foreign Exchange (hereinafter referred to as the foreign exchange authority) and may participate in the pilot implementation upon approval.

2. The branch or administrative department of the State Administration of Foreign Exchange in the pilot region (hereinafter referred to as the SAFE branch) shall, in accordance with the relevant provisions of the Pilot Measures for the Administration of Overseas Deposits of Export Proceeds from Trade in Goods (hereinafter referred to as the Pilot Measures; see the annex), examine the qualifications of the applicants and determine the pilot enterprises in stages and batches in light of the local situations and the applications of the enterprises within its jurisdiction. During the pilot period, each SAFE branch shall approve a total of no more than ten pilot enterprises.

3. The pilot enterprises shall, in accordance with the relevant provisions of the Pilot Measures, open and close their overseas bank accounts, receive and pay funds and handle other related businesses, and report any relevant information to the foreign exchange authority.

4. The foreign exchange authority shall, in accordance with the relevant provisions of the Pilot Measures, administer the receipts and payments of the overseas bank accounts of the pilot enterprises, and maintain an account book for each enterprise.

5. The total amount of the overseas deposits of the export proceeds of a pilot enterprise each year shall not exceed a certain proportion of the total amount of export proceeds in the previous calendar year. This proportion shall be determined and adjusted by the SAFE branch in accordance with the relevant provisions of the Pilot Measures and the practical situation of the enterprise.

6. The foreign exchange authority shall, based on the information reported by the pilot enterprises, handle the relevant foreign exchange administrative formalities for the pilot enterprises, such as the writing-off of the export proceeds received in foreign exchange and the writing-off of the import payments made in foreign exchange (or verification of the gross foreign exchange payments for imports). The pilot enterprises shall, after the writing-off of the export proceeds received in foreign exchange, normally handle the export rebates in accordance with the relevant provisions.

7. The SAFE branch shall, in accordance with the relevant provisions of the Pilot Measures and this Circular, make the operating rules for the local pilot match the operating requirements for this business. The pilot operational rules shall be implemented after being filed with the State Administration of Foreign Exchange before September 20, 2010.

8. The SAFE branch shall strengthen the organization and leadership of the pilot work of overseas deposits of export proceeds, form a pilot work team headed by a relevant deputy director-general, formulate specific pilot work schemes as uniformly arranged by the State Administration of Foreign Exchange, and earnestly organize the implementation thereof.

9. The SAFE branch shall do a good job in carrying out training regarding the policies for the pilot enterprises, strengthen publicity about the policies, earnestly study and solve the problems found in the pilot work, provide timely feedback on the pilot implementation, and report a quarterly review on the pilot work to the State Administration of Foreign Exchange.

Timely feedback about any problems encountered in implementation should be provided to the Current Account Management Department of the State Administration of Foreign Exchange.


affix1:
Pilot Measures for the Administration of Overseas Deposits of Export Proceeds from Trade in Goods
affix2:
Appendix 1:Agreement on the Reporting of Account Receipt and Payment Information
affix3:
Appendix 2:Balance Statement for Overseas Deposits of Export Proceeds

 

 

 

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Circular of the SAFE on Amending the Measures for the Assessment of the Banks Implementation of the Provisions on Foreign Exchange Administration

Date:2010-08-06

 

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, and the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all Chinese-funded designated foreign exchange banks:

 

Since the Measures for the Assessment of the BanksImplementation of the Provisions on Foreign Exchange Administration came into force on August 1, 2009, they have played a satisfactory role in encouraging banks to implement the provisions on foreign exchange administration and in promoting regulatory compliance and lawful business operations by banks.  To further promote smooth progress in the assessment work and to make this work more scientific and fair, the State Administration of Foreign Exchange has amended the Measures for the Assessment of the BanksImplementation of the Provisions on Foreign Exchange Administration (see Annex, hereinafter referred to as the Measures).  You are hereby notified of the relevant matters as follows:

 

I. After receiving this Circular, all branches and foreign exchange administrative departments of the State Administration of Foreign Exchange shall immediately forward this Circular to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, wholly foreign-funded banks, Chinese-foreign equity joint venture banks, branches of foreign banks, and rural cooperative financial institutions within their respective jurisdictions, complete as soon as possible the operational training for the central sub-branches and sub-branches within their respective jurisdictions, and, in strict accordance with the Measures, carry out fair and just assessments of the banks within their respective jurisdictions.

 

II. All designated Chinese-funded foreign exchange banks shall forward this Circular to their branches as soon as possible, earnestly implement the relevant requirements of the Measures, and conduct their various businesses in accordance with the relevant laws and regulations.

 

III. From the date of issuance of this Circular, the Circular of the State Administration of Foreign Exchange on Issuing the Measures for the Assessment of the BanksImplementation of the Provisions on Foreign Exchange Administration (Huifa No.33 [2009]) shall be abolished.  Assessments of the banks implementation of the provisions on foreign exchange administration in 2010 shall be governed by the relevant provisions in these Measures.

 

If you have any problems during implementation of these Measures, please report them to the relevant departments of the State Administration of Foreign Exchange in a timely manner. Tel: 010-68402129 (General Affairs Department), 010-68402464 (Balance of Payments Department), 010-68402280 (Current Account Administration Department), 010-68402366 (Capital Account Administration Department), 010-68402361 (Supervision and Inspection Department).


affix1:
Measures for the Assessment of the BanksImplementation of the Provisions on Foreign Exchange Administration
affix2:
Appendix 1:Contents and Scoring Criteria for the Assessments of the BanksImplementation of the Provisions on Foreign Exchange Administration
affix3:
Appendix 2:Detailed List on the Assessment of the Banks' Implementation of the Provisions on Foreign Exchange Administration

 

 

Home >>  SAFE News

Circular of the State Administration of Foreign Exchange on the Administration of External Guarantees Provided by Domestic Institutions

Date:2010-07-30

 

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the head offices of all domestic designated foreign exchange banks:

To deepen the reform of administration of external guarantees provided by domestic institutions and to support domestic institutions participation in international economic and financial cooperation, in accordance with the Measures for the Administration of External Guarantees Provided by Domestic Institutions (Yinfa No.302 [1996]) (hereinafter referred to as the Measures), the SAFE has decided to further adjust the mode of administration for external guarantees provided by domestic institutions. We hereby notify you of the following relevant issues:

1. The term external guarantee as referred to in this Circular means that under the Guaranty Law of the Peoples Republic of China, the Property Law of the Peoples Republic of China, and the Measures, a domestic institution (guarantor) promises an overseas institution (beneficiary), in the form of a surety, mortgage, pledge, and so forth, that if the debtor (a domestic or overseas institution) fails to fulfill its contractual obligations, the guarantor shall perform the obligations or the beneficiary shall, under the Guaranty Law of the Peoples Republic of China and the Property Law of the Peoples Republic of China, receive priority repayment with the proceeds from the auction or sale of the collateral or pledge.

A guarantee provided for a debtor by a domestic institution shall be treated as an external guarantee and shall be governed by this Circular if the debtor is an overseas institution but the beneficiary is a domestic institution.

The term financing external guarantees as referred to in this Circular means  external guarantees for which the master contract has a financing nature, including but not limited to guarantees provided for borrowing, bond issuances, and financing leases, as well as other forms of external guarantees recognized by the SAFE.

The term non-financing external guarantees as referred to in this Circular means external guarantees other than financing external guarantees, including but not limited to quality guarantees, liability guarantees for completion of a project, tender guarantees, advance payment guarantees, deferred payment guarantees, and performance guarantees under a goods purchase and sales contract, as well as other forms of external guarantees recognized by the SAFE.

The term enterprisesas referred to in this Circular means legally formed non-financial corporate institutions other than banks and non-banking financial institutions.

2. The SAFE administers the external guarantees provided by domestic institutions based on balanced management or case-by-case approval. The financing external guarantees provided by domestic banks shall be subject to balanced management, whereas the external guarantees provided by non-banking financial institutions and enterprises generally shall be subject to case-by-case approval, or when conditions permit may be subject to balanced management.

3. To provide financing external guarantees, a domestic bank qualified to operate the guarantee business may apply to the local branch/sub-branch or foreign exchange administrative department of the SAFE (hereinafter collectively referred to as the foreign exchange authorities, with the branches and foreign exchange administrative departments hereinafter referred to as SAFE branches) for a balance quota for the external guarantees (hereinafter referred to as quota). Within the quota approved by the foreign exchange authority, the bank may provide financing external guarantees at its sole discretion and need not apply to the foreign exchange authority for approval on a case-by-case basis.

There is no quota limit on non-financing external guarantees provided by a domestic bank qualified to operate the guarantee business, and the bank need not apply to the foreign exchange authority for approval on a case-by-case basis provided that there is compliance with the relevant risk management provisions of the regulatory authorities.

4. A domestic bank shall make a quota application according to the following principles:

(1) For a domestic corporate bank, the application shall be filed by the corporate body; and

(2) For a branch of a foreign bank without a corporate body within China , the branch may make an application independently, or the principal reporting bank of the affiliated banks (branches) in China , which exercises centralized management of the quota, may make a unified quota application.

5. A domestic bank shall, before April 15 of each year, apply to the local foreign exchange authority for the current years quota, and the local SAFE branch shall gather such applications and preliminarily examine them.

Each local SAFE branch shall fill out the Demand Schedule for External Guarantee Balance Quotas for ××× (year) (see Annex 1) after the preliminary examination, submit it along with the quota application reports of the SAFE branch and all banks to the SAFE for approval, and assign the approved quotas to the banks.

Before the current years quotas are assigned, the last years quotas shall remain valid. If a banks quota for the current year is decreased, the bank shall not provide any new external guarantees before reducing its balance of financial external guarantees to within the current years quota.

To apply for a quota for the first time, a bank may, as needed, apply to the SAEF through the local SAFE branch.

6. The foreign exchange authorities shall assign a quota to a bank mainly based on the paid-in capital or working capital in both RMB and foreign currency or the net asset scale of the foreign exchange of the bank. The foreign exchange authorities may make corresponding adjustments by referring to the banks performance of external guarantees, regulatory compliance in providing external guarantees and assessed implementation of the foreign exchange administration provisions in the last calendar year, the banks business development plan for the current year, and the states balance-of-payments situation and policy control needs for the current year, and so forth.

7. Generally, the quota for a single bank shall not exceed 50 percent of its paid-in capital or working capital in both RMB and foreign currency, or shall not exceed its net asset value of foreign exchange.

8. To apply for an annual quota, a bank shall submit:

(1) An application report and the Application Form for a Balance Quota for External Guarantees Provided by a Domestic Institution (see Annex 2);

(2) Its last years consolidated balance sheet and earnings statement as well as a statement on the source and application of foreign exchange capital (if it is applying for the first time, it shall also submit photocopies of its financial business permit and business license);

(3) A statement of its external guarantee business and regulatory compliance during the last calendar year (except for a newly formed bank);

(4) The current years business development plan; and

(5) Other materials as set forth by the foreign exchange authority.

9. The quota for a domestic bank subject to balanced management may be directly used by the bank or may be broken down for use by its domestic branches (including the branches and sub-branches of a foreign bank which exercise centralized control over the quota and have no corporate body within China ).

10. A bank shall strictly control its financing external guarantees within the quota assigned by the foreign exchange authority. The debtor shall not be subject to such conditions as its equity relationship with the domestic institution, net asset proportions, and profits and losses, but shall comply with the guaranty laws and regulations of the state as well as the relevant administrative provisions of the industrial regulatory authority.

11. In a non-financing external guarantee provided by a bank, at least one of the debtor and the beneficiary shall be a corporate body legally formed and registered within China, or at least one of them shall be an overseas institution which is formed by a domestic institution or in which a domestic institution directly or indirectly holds shares according to the relevant provisions.

12. The head office of a bank or the principal reporting bank which exercises centralized control over the quota shall gather the external guarantees provided by the entire bank in a timely manner, and within the first five workdays of each month it shall handle the regular filing formalities for external guarantees at the local foreign exchange authority by filling out the Form for Filing for All External Guarantees Provided by a Domestic Bank, a Case-by-Case Form for Filing New Financing External Guarantees Provided by a Domestic Bank, and a Case-by-Case Form for Filing for Performance of Financing External Guarantees Provided by a Domestic Bank (see Annex 3 [1], [2], and [3]). The above filing formalities shall be regarded as registration formalities, and the foreign exchange authority shall no longer issue external guarantee registration certificates to the bank.

For an external guarantee provided in the name of a banks domestic branch office, the branch office shall also file the relevant data with the local foreign exchange authority according to the above requirements, but such data shall not be incorporated into the external guarantee statistics of the foreign exchange authority system.

The entry into force of a financing external guarantee provided by a bank within the quota shall not be conditioned upon going through the filing formalities with the foreign exchange authority. External guarantees provided beyond the quota without approval shall be dealt with under the Measures and other relevant provisions.

13. To provide external guarantees, a domestic non-banking financial institution or enterprise shall submit each to the foreign exchange authority for approval. In the case of a domestic non-banking financial institution or enterprise (including a wholly foreign-funded enterprise) which has a large number of external guarantees and sound internal management, its corporate body may apply to the foreign exchange authority for an approved balance of external guarantees (including both financing and non-financing external guarantees) under the procedures prescribed for in Articles 5 and 8 of this Circular. For external guarantees within the approved balance, a domestic non-banking financial institution or enterprise need not apply to the foreign exchange authority for approval on a case-by-case basis.

(1) If the guarantor is a non-banking financial institution, its quota shall be decided with reference to the basis as prescribed in Articles 6 and 7 of this Circular.

(2) If the guarantor is an enterprise, as a general requirement the proportion of its net assets to its total assets shall not be lower than 15 percent, and the approved balance assigned by the foreign exchange authority to the enterprise or the balance of its external guarantees approved on a case-by-case basis shall not exceed 50 percent of its net assets.

14. To provide external guarantees, non-banking financial institutions and enterprises shall observe the following provisions:

(1) The debtor shall meet the following requirements:

` If the guarantor is a non-banking financial institution, the debtor must be a corporate body legally formed and registered within China or an overseas institution which is formed by a domestic institution or in which a domestic institution directly or indirectly holds shares according to the relevant provisions.

If the guarantor is an enterprise, the debtor must be a domestic or overseas enterprise which is formed by the guarantor or in which the guarantor directly or indirectly holds shares under the prescribed procedures.

a The net asset value of the debtor shall be positive.

b The debtor shall have made profits in at least one of the past three years. If the debtor engages in resource development or any other long-term project, it shall have made profits in at least one of the past five years. There shall be no mandatory profit requirement for the debtor if it has not been three years (for an ordinary enterprise) or five years (for a resource development enterprise) since its formation.

This requirement does not apply to a repo guarantee provided to a domestic bank by a domestic real estate developer for a non-residential housing mortgage loan.

(2) To provide the following external guarantees, a non-banking financial institution or an enterprise subject to balanced management must apply to the foreign exchange authority for approval on a case-by-case basis:

` If the external guarantee to be provided does not meet the requirements of this Circular and other relevant provisions in terms of the quota scale, net asset value, or profits, it shall be reported to the SAFE for approval on a case-by-case basis through the local SAFE branch.

a If the subject matter of the guarantee is an obligation to repay the debt under a financing contract and the financing purpose of the debtor is to acquire equities of an overseas enterprise (target company), or if the debtor is the transferee under a contract for transferring the equities of an overseas enterprise (target company) and the subject matter of the guarantee is an obligation to pay the equity transfer price under the equity transfer contract, the guarantee shall be reported for approval to the SAFE branch at the place where the guarantor is located, and the guarantor shall provide the approval document issued by the overseas investment authority of the state on the overseas investment or acquisition project in which the relevant enterprise (the debtor or any affiliated enterprise thereof) participates (see Annex 4 for relevant operational guidance).

Each external guarantee approved by the foreign exchange authority on a case-by-case basis shall be included within the scope of the quota control. If the quota is inadequate, the foreign exchange authority may adjust it at the time of approval on a case-by-case basis.

(3) Wholly foreign-funded enterprises not subject to balanced management shall handle the case-by-case approval, registration, and other formalities for their external guarantees with reference to the principles for the administration of ordinary enterprises.

(4) A non-banking financial institution or an enterprise shall, within 15 days after entering into an external guarantee contract, handle the case-by-case registration formalities for the external guarantee at the local foreign exchange authority. For an external guarantee subject to balanced management, the local foreign exchange authority shall, according to the relevant provisions, check the qualifications other than those of the guarantor itself and issue an external guarantee registration certificate.

15. To provide an external guarantee, a domestic institution shall handle the performance formalities according to the following provisions:

(1) Where a bank needs to perform a financing or non-financing external guarantee, it may make foreign payments under the guarantee at its own discretion. The sources of capital needed for providing an external guarantee may be foreign exchange advances, the deposit paid by the counter guarantor in foreign exchange or RMB, or the payment made by the counter guarantor for a default on the debt.

To provide an external guarantee, a non-banking financial institution or an enterprise must apply to the local foreign exchange authority for approval on a case-by-case basis and may purchase foreign exchange for the purpose of providing the external guarantee.

(2) Where the guarantor is a bank or non-bank financial institution, if the counter guarantor voluntarily performs its payment obligation under the counter guarantee, the counter guarantor may directly handle the foreign exchange purchase or payment formalities at the bank upon the strength of the documentary evidence on the performance of the guarantee, and the guarantor shall on its own enter the relevant foreign exchange capital into the account. If the debtor under the external guarantee voluntarily performs its repayment obligation to the guarantor, the debtor and the guarantor may handle their payment and collection formalities respectively.

Where the debtor or the counter guarantor fails to voluntarily perform its repayment obligation for repayment or performance of the guarantee for various reasons, the guarantor may purchase foreign exchange with RMB legally collected from the debtor or the counter guarantor with reference to the provisions for bank foreign exchange settlements or sales on behalf of debtors.

(3) Where an enterprise acts as a guarantor or a counter guarantor as noted in paragraph (2), the foreign exchange recovered from the debtor may be settled upon the approval of the foreign exchange authority.

16. Domestic insurance companies providing external guarantees shall be regarded as banks in the filing of the data and the performance of the guarantee, which means that their performance of external guarantees is not subject to approval by the foreign exchange authority, but they shall go through the regular filing formalities for external guarantees under Article 12 of this Circular.

17. All domestic institutions providing external guarantees shall be governed by the following provisions:

(1) Domestic institutions providing external guarantees shall comply with the guaranty laws and regulations of the state as well as the administrative provisions of the industrial regulatory authorities for guarantee business and strengthen the relevant risk controls.

(2) Domestic institutions providing external guarantees for debtors that are joint ventures formed domestically or overseas shall not be restricted by any equity investment proportion for a domestic or overseas institution.

(3) As for a financing external guarantee provided for an overseas invested enterprise, the capital under the guarantee shall not be transferred back to China directly or through a third party in the form of borrowing, equity investment, or securities investment. The domestic guarantor or the overseas investee of the parent company of the enterprise within China shall oversee the use of the capital acquired by the debtor to ensure that the capital is used for the overseas production and operation activities of the debtor.

(4) A domestic institution that provides a non-financing external guarantee may, based on its actual business needs, choose not to specify the amount and terms of the guarantee in the contract as long as the guarantee obligations are defined. When handling the approval, registration, and filing formalities for the external guarantee, the foreign exchange authority or the guarantor may determine the amount and terms noted in the contract for the guarantee, which are mostly related to the guarantors payment obligations with respect to the referenced amount and the terms for the performance obligations under the guarantee, but the guarantors actual payment obligations under the external guarantee shall not be restricted by reference to the amount and the term.

(5) The debt amount under an external guarantee shall not be restricted by the scale of the foreign exchange income of the guarantor.

(6) Unless it is otherwise provided in this Circular, domestic institutions shall handle the contract signing, registration, modification, performance, and cancellation formalities for the external guarantees in accordance with the Measures, the Detailed Rules for Implementation of the Measures for the Administration of External Guarantees Provided by Domestic Institutions (Huizhengfa No.10 [1997], hereinafter referred to as the Detailed Rules), and other relevant provisions.

(7) The transfer of any right or debt under an external guarantee shall conform to the foreign exchange administration provisions.

18. A counter guarantee provided by a domestic institution for a domestic or overseas institution (debtor) to its overseas guarantor shall be regarded as an external guarantee, and the domestic institution providing the counter guarantee and the domestic or overseas institution as the debtor must conform to the provisions of this Circular.

Where a domestic institution provides a counter guarantee for the debtor (a domestic or overseas institution) to another domestic institution that provides an external guarantee for the debtor according to the external guarantee provisions, the counter guarantee shall not be regarded as an external guarantee, but shall conform to the relevant foreign exchange administration provisions.

19. To provide mortgages, pledges, and so forth, a guarantor must comply with the relevant provisions of the relevant authorities for collaterals and pledges.

Where a guarantor provides an external mortgage, pledge, and so forth for its own legal foreign debt or other foreign payment obligations, it shall not be subject to the relevant qualifications for external guarantees, inclusion in the quota control, or a case-by-case application to the foreign exchange authority for approval, but it shall go through the regular filing formalities or the case-by-case registration for external guarantees at the local foreign exchange authority. In the event of the provision of a guarantee, a non-banking financial institution or an enterprise shall apply to the foreign exchange authority for approval on a case-by-case basis.

A guarantor providing a mortgage or pledge for the debt of a third party shall be subject to the same foreign exchange administration provisions for third party guarantees in terms of the qualifications and requirements, except where specially provided for.

20. The foreign exchange authorities shall supervise and inspect the external guarantee business of domestic institutions. Where any institution provides external guarantees without approval, beyond the approved quota, or in violation of this Circular or other related provisions, the foreign exchange authority may, as the case may be, cut its current years quota, subject it to case-by-case approval instead of balanced management, or take other measures and impose punishments in accordance with the Regulation of the Peoples Republic of China on Foreign Exchange Administration and other relevant provisions. If the circumstances are serious, the foreign exchange authority shall suspend its external guarantee business.

21. All SAFE branches shall, after receiving this Circular, forward it to the central sub-branches and financial institutions within their respective jurisdictions as soon as possible.

22. This Circular shall come into force on the date of issuance. Paragraph 1 of Article 5 of the Measures and Article 21 of the Detailed Rules shall cease to be effective from the date of issuance of this Circular. The Circular of the State Administration of Foreign Exchange on Adjusting the Management Mode of Overseas Financial Guarantees Provided by Domestic Banks for Overseas Investments of Enterprises (Huifa No.61 [2005] ) issued on August 16, 2005 and other relevant normative documents (see Annex 5) shall be abolished simultaneously. For any discrepancy between this Circular and any other regulation issued by the SAFE, this Circular shall prevail.

 

 

(Annex omitted)

 

 

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Catalogue of Existing Effective Laws and Regulations on Foreign Exchange Administration (as of the end of June, 2010)

Date:2010-07-13

 

I. General (35 Items)
1. Basic Rules
1. Regulations of the People's Republic of China on Foreign Exchange Administration Decree No. 532 of the State Council
2. Regulations for the Administration of Settlement, Sales, and Payments of Foreign Exchange Yinfa No. 210 [1996]
3. Interim Measures for the Administration of Collection and Payment of Foreign Currency in Cash by Domestic Institutions Huiguanhanzi No. 211 [1996]
4. Interim Regulations on the Administration of Domestic Foreign Exchange Transfers Huiguanhanzi No. 250 [1997]
5. Circular of the State Administration of Foreign Exchange (SAFE) on Relevant Issues Concerning the Formulation of Regulatory Documents for Foreign Exchange Administration by SAFE Branches and Sub-branches  Huifa No. 219 [1999]
6. Rules of the State Administration of Foreign Exchange on the Formulation of Laws and Regulations for Foreign Exchange Administration Huifa No. 373 [1999]
7. Measures for the Administration of Individual Foreign Exchange Rules Decree No. 3 [2006] of the People's Bank of China
8. Detailed Rules on the Implementation of Measures for the Administration of Individual Foreign Exchange Rules Huifa No. 1 [2007]
2. Account Administration
1. Regulations for the Administration of Domestic Foreign Exchange Accounts Yinfa No.416 [1997]
2. Regulations on the Administration of Overseas Foreign Exchange Accounts Huizhengfazi No. 10 [1997]
3. Reply of the State Administration of Foreign Exchange on Relevant Issues regarding Foreign Exchange Administration Policies for the Business of Corporate Foreign Exchange Accounts  Huifu No. 398 [2007]
4. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Foreign Exchange Business of Foreign Diplomatic Institutions in China  Huizongfu No. 53 [2008]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Domestic Foreign Exchange Accounts of Overseas Institutions  Huizongfa No. 29 [2009]
3. Administrative Licensing Items
1. Announcement of the State Administration of Foreign Exchange on Relevant Issues Concerning Revocation of 26 Administrative Examination and Approval Items Announcement No. 1 [2003] of the State Administration of Foreign Exchange
2. Announcement of the State Administration of Foreign Exchange on Relevant Issues Concerning Revocation of 8 Administrative Examination and Approval Items Announcement No. 1 [2004] of the State Administration of Foreign Exchange
3. Circular of the State Administration of Foreign Exchange on Relevant Procedural Issues Concerning Implementation of Administrative Licensing for Foreign Exchange Administration  Huifa No. 68 [2004]
4. Decision of the State Council on Establishing Administrative Licensing for the Administrative Examination and Approval Items That Must Be Retained   Decree No. 412 of the State Council   Promulgated and Coming into Force on July 1, 2004
5. List of the Administrative Licensing Items of the State Administration of Foreign Exchange  Huifa No. 38 [2005]
6. Announcement No. 5 [2006] of the Peoples Bank of China on the Adjustment of Some Foreign Exchange Administration Policies  Announcement No. 5 [2006] of the Peoples Bank of China
7. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Forwarding the Decision of the State Council on the Fourth Batch of Revocations and Adjustments of Administrative Examination and Approval Items  Huizongfa No. 189 [2007] and Guofa No. 33 [2007]
8. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Promulgating the Procedures of the State Administration of Foreign Exchange for the Handling of Administrative Licensing  Huizongfu No. 191 [2008]
4. Others
1. Circular of the State Administration of Foreign Exchange on Ending Implementation of Some Foreign Exchange Administration Regulations  Huifa No. 289 [1999]
2. System of the State Administration of Foreign Exchange on the Receipt of Letters and Visits Huifa No. 346 [1999]
3. Guiding Opinions on Regulating the Administration of Important Vouchers, Examination and Approval, and Archives Management of the Foreign Exchange Business  Huifa No. 1 [2004]
4. Working Procedures of the State Administration of Foreign Exchange on Information Disclosures of Illegal (Negative) Foreign Exchange Activities  Huizongfa No. 105 [2006]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Administrative Issues Concerning Administration of International Treaties on Foreign Exchange  Huizongfa No. 17 [2008]
6. Circular of the State Administration of Foreign Exchange on Printing and Distributing the Guide of the State Administration of Foreign Exchange for the Disclosure of Government Information, the Catalogue of the State Administration of Foreign Exchange for the Disclosure of Government Information, and the Working Procedures of the State Administration of Foreign Exchange for the Disclosure of Government Information Upon Application  Huifa No. 12 [2008]
7. Regulations of the State Administration of Foreign Exchange for the Administration of Legal Consulting Work  Huizongfa No. 106 [2009]
8. Circular of the State Administration of Foreign Exchange on Announcing the List of Repealed and Expired Regulatory Documents on Foreign Exchange Administration  Huifa No. 19 [2009]
9. Circular of the State Administration of Foreign Exchange Announcing 25 Repealed and Expired Regulatory Documents on Foreign Exchange Administration  Huifa No. 36 [2009]
10. Announcement No. 16 [2009] of the Peoples Bank of China on Abolition of 6 Regulatory Documents 
11. Circular of the State Administration of Foreign Exchange on Announcing the List of 56 Repealed and Expired Regulatory Documents on Foreign Exchange Administration  Huifa No. 44 [2009]
12. Circular of the State Administration of Foreign Exchange on Announcing 55 Repealed and Expired Regulatory Documents on Foreign Exchange Administration  Huifa No. 60 [2009]
13. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues for Doing a Good Job in the Foreign Exchange Administration in the Current Earthquake Relief Work  Huizongfa No. 47 [2010]
14. Circular of the State Administration of Foreign Exchange Announcing 24 Repealed and Expired Regulatory Documents on Foreign Exchange Administration  Huifa No. 16 [2010]
II. Foreign Exchange Administration under the Current Account (141 Items)
1. Comprehensive Business under the Current Account
1. Circular of the State Administration of Foreign Exchange on Relevant Issues on Using RMB as the Pricing Currency in Foreign Trade by Domestic Institutions  Huifa No. 29 [2003]
2. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of Duty-free Commodities  Huifa No. 16 [2006]
3. Circular of the State Administration of Foreign Exchange on Adjustments of Foreign Exchange Administration Policies for the Current Account  Huifa No. 19 [2006]
4. Operational Procedures for the Foreign Exchange Accounts under the Current Account and Individual Foreign Exchange Purchases by Domestic Residents  Huizongfa No. 32 [2006]
5. Circular of the State Administration of Foreign Exchange on Retaining Foreign Exchange Income under the Current Account by Domestic Institutions at their own Discretion  Huifa No. 49 [2007]
2. Administration of the Collection and Payment of Foreign Exchange and the Verification and Writing-off for Imports and Exports (78 Items)
(1) Administration of Collection and Payment of Foreign Exchange for Imports and Exports
1. Circular of the General Administration of Customs and the State Administration of Foreign Exchange on Strengthening the Administration of the Customs Declaration Forms for Imports and Exports in Foreign Exchange, Payment for Imports and Foreign Exchange Collection from Exports, and Intensifying Anti-counterfeiting and Authentication Measures Shujian No. 28 [1996]
2. Circular of the General Administration of Customs, the Peoples Bank of China, and the State Administration of Foreign Exchange on Pilot Operation and Popularization of the On-line Inspection System for the Import and Export Declaration Form  Shutong No. 622 [1998]
3. Circular of the Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs, and the State Administration of Foreign Exchange on Printing and Distributing Several Provisions for Regulating the Agent Business for Imports and Exports  Waijingmaozhengfa No. 725 [1998]
4. Circular of the State Administration of Foreign Exchange on Popularizing the Measures for Applying for IC Cards and Card Readers in the On-line Inspection System for the Import and Export Declaration Forms  Huifa No. 79 [1998]
5. Announcement of the General Administration of Customs, the Peoples Bank of China , and the State Administration of Foreign Exchange on the On-line Inspection System of the Import and Export Declaration Form for the Verification and Writing-off of Foreign Exchange  Release date: January 3, 1999
6. Operational Procedures for the Sale and payment of Foreign Exchange and the Verification and Writing-off of the Carry-over (Transfers Between Factories) for Intensive Processing  Huifa No. 78 [1999]
7. Decision of the State Administration of Foreign Exchange on Conscientiously Strengthening the Verification and Writing-off Work for Imports and Exports  Huifa No. 85 [1999]
8. Circular of the State Administration of Foreign Exchange and the General Administration of Customs on Clarifying Again Issues Concerning the Use of the On-line Inspection System for the Import and Export Declaration Form  Huifa No. 97 [1999]
9. Circular of the State Administration of Foreign Exchange on Re-affirming the Reporting System and the Date for Advance Reporting of Statistical Statements on the Verification and Writing-off of Foreign Exchange Payments and Collection for Imports and Exports  Huifa No. 91 [1999]
10. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Purchase of Xinjiang Cotton with Foreign Exchange within the Territory of China Huifa No. 259 [1999]
11. Circular of the State Administration of Foreign Exchange on the Classified Use of the Export Verification Form for Foreign Exchange Collection according to the Supervisory Mode for Imported and Exported Goods  Huifa No. 120 [2001]
12. Circular of the General Office of the State Economic and Trade Commission, the General Office of the General Administration of Customs, and the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Import of Diesel Oil by the Refined Oil State Trading Enterprises on Behalf of Enterprises that are Processing using CustomersMaterials  Guojingmaotingwaijing No. 176 [2002]
13. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling of the Collection and Payment of Foreign Exchange and the Verification Business for Imports and Exports of Gold by Commercial Banks  Huifa No. 93 [2003]
14. Circular of the State Administration of Foreign Exchange and the State Administration of Taxation on Relevant Issues Concerning the Transmission of Verification Data and the Use of Tax Rebate Data in the System of Verification and Reporting of Foreign Exchange Collections from Exports   Huifa No. 126 [2003]
15. Supplementary Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling of the Collection and Payment of Foreign Exchange and the Verification Business for Imports and Exports of Gold by Commercial Banks  Huifa No. 79 [2004]
16. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Management Adjustments to the List of Import Entities Making External Payments in Foreign Exchange   Huifa No. 25 [2006]
17. Circular of the State Administration of Foreign Exchange on Issues Related to Foreign Exchange Administration for the Cross-Border Transportation of Domestic Trade Goods  Huifa No. 21 [2007]
18. Circular of the State Administration of Foreign Exchange on Abolishment of the Circular of the State Administration of Foreign Exchange and the General Administration of Customs on Relevant Issues Concerning Issuance of the Form for Foreign Exchange Payments for Letters of Credit and Acceptances Against Collection for Imports Issued by Banks  Huifa No. 62 [2007]
19. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Promulgating the Emergency Plan for Verification of the Collection and Payment of Foreign Exchange for Imports and Exports  Huizongfa No. 144 [2008]
20. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling of External Sales and Payments of Foreign Exchange under the Item of the Operating Lease with the Period of the Lease for Less than One Year, and so forth  Huizongfu No. 32 [2009]
21. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Inconsistencies Between BanksSelling of Foreign Exchange and Banks Paying of Foreign Exchange under the Letter of Credit Settlement for Imports  Huizongfu No. 58 [2009]
(2) Administration of Foreign Exchange Payments for Imports
1. Interim Measures for Supervision of the Verification and Writing-off of Foreign Exchange Payments for Trade Imports Huiguofazi No.1 [1997]
2. Circular of the State Administration of Foreign Exchange on Strengthening Coordination of the Supervisory System on the Verification and Writing-off of Foreign Exchange Payments for Imports by Price Auditing of the Imports  Huiguohanzi No. 62 [1997]
3. Filing Letter of the State Administration of Foreign Exchange on Using the Seal on the Form Filed for Foreign Exchange Payments for Imports   Huiguohanzi No. 074 [1997]
4. Provisions for the Examination and Verification of the Trade Authenticity for the Verification and Writing-off of Foreign Exchange Payments for Imports  Huiguohanzi No. 199 [1998]
5. Urgent Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Supervising the Software for Foreign Exchange Payments for Trade Imports Huiguohanzi No. 193 [1998]
6. Circular of the State Administration of Foreign Exchange on Revising Article 8 and Article 11 of the Circular on Perfecting the Administration of Sales and Payments of Foreign Exchange and Article 3 of the Supplementary Circular on Perfecting the Administration of Sales and Payments of Foreign Exchange  Huifa No. 66 [1999]
7. Circular of the State Administration of Foreign Exchange on Regulating the Relevant Practices for the Transmission of the Data on the Form for the Verification and Writing-off of Foreign Exchange Payments for Trade Imports (Used as the Declaration Form)  Huifa No. 106 [1999]
8. Circular of the State Administration of Foreign Exchange on Strengthening the Examination and Verification on Sales and Payments of Foreign Exchange for the Import of Gold, Silver, and their Products  Huifa No. 244 [1999]
9. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning External Payments of Foreign Exchange by Airline Companies  Huizongfa No. 76 [1999]
10. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Procedures for Applying for Approvals Related to the Verification and Writing-off of Foreign Exchange Payments for Imports  Huifa No. 98 [2001]
11. Operational Rules for Administration of the Verification and Writing-off of Foreign Exchange Payments for Trade Imports Huifa No. 113 [2002]
12. Circular of the State Administration of Foreign Exchange on Implementation of Classified Administration for the Handling of Sales and Payments of Foreign Exchange and the Verification and Writing-off on the Strength of the Certification Sheet of the Declaration Form for Imported Goods  Huifa No. 15 [2003]
13. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Cancellation of Certain Categories of Filing for Foreign Exchange Payments for Imports  Huifa No. 34 [2003]
14. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling of the On-line Inspection for the Import Declaration Form on the China E-Port  Huifa No. 103 [2003]
15. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Standardization of Procedures for Handling the Verification and Writing-off of Foreign Exchange Payments for Imports on the Basis of the Foreign Exchange Collection Certificate  Huifa No. 76 [2004]
16. Regulations for the Administration of the Automatic Verification and Writing-off of Foreign Exchange Payments for Trade Imports under the Remittance on Delivery Item  Huifa No. 82 [2004]
17. Regulations for the Administration of the Memorandum on Unverified and Unwritten-off Foreign Exchange Payments for Overdue Imports Huifa No. 101 [2004]
18. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Use of the Form Filed for Foreign Exchange Payments for Imports  Huifa No. 112 [2004]
19. Measures for the Administration of the Verification and Writing-off of the Balance of Foreign Exchange Payments for Imports  Huifa No. 116 [2004]
20. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Simplifying the Procedures and the Verification and Writing-Off for Foreign Exchange Payments for Trade Imports  Huifa No. 67 [2005]
21. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Simplification of the Formalities for Making Advance Payments by Airline Companies  Huizongfa No. 51 [2006]
22.Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Implementation of the Reform of the Verification and Writing-off System for Foreign Exchange Payments for Imports  Huifa No. 14 [2010]
23.Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Organization for Implementing the Pilot Reform on the Verification and Writing-off System for Foreign Exchange Payments for Imports  Huizongfa No. 44 [2010]
24. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Promulgating the Text of the Confirmation Letter for the Handling of the Foreign Exchange Payment Business for Imports under the Trade in Goods Item   Huizongfa No. 45 [2010]
25. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Query on the List of Enterprises Making Foreign Exchange Payments for Imports   Huizongfa No. 51 [2010]
(3) Administration of Foreign Exchange Collection from Exports
1. Circular of the State Administration of Foreign Exchange on Sales and Payments of Foreign Exchange and Verification and Writing-off for Intensive Processing Carry-overs (transfers between factories)  Huifa No. 84 [1999]
2. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Business Operations after Enabling the New Version of the Form for Verification and Writing-off of Foreign Exchange Collection from Exports  Huiguanhan No. 18 [1999]
3. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Strengthening the Administration of Sales and Payments of Foreign Exchange and Verification and Writing-off of Intensive Processing Carry-overs under the Processing Trade Item  Huifa No. 64 [2001]
4. Circular of the State Administration of Foreign Exchange on the Formal Operation of the Foreign Exchange Collection System from Exports in the Electronic System for Law Enforcement at Ports   Huifa No. 140 [2001]
5. Operational Rules for Verification and Writing-off Memorandum for Foreign Exchange Collection from Exports (Interim)  Huifa No. 186 [2001]
6. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Adjustments of Policies for the Administration of Verification and Writing-off for Imports and Exports  Huifa No. 65 [2002]
7. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of Chartered Airplane Trade  Huifa No. 94 [2002]
8. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Issuance of the Special Sheet for Verification and Writing-off of Foreign Exchange Collections from Exports by Banks under the Buyers Credit Item  Huifa No. 107 [2002]
9. Reply of the State Administration of Foreign Exchange on the Request for Instructions regarding the Required Certificates for Export Verification and Writing-off Settled in RMB under the Intensive Processing Carry-over Item  Huifu No. 175 [2002]
10 Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of the Special Sheet for Verification and Writing-off of  Foreign Exchange Collection from Exports   Huifa No. 11 [2003]
11. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Verification and Writing-off for Foreign Exchange Collections under the Export Factoring Business Item  Huifa No. 79 [2003]
12. Measures for the Administration of the Verification and Writing-off of Foreign Exchange Collections from Exports  Huifa No.91 [2003]
13. Circular of the State Administration of Foreign Exchange on Printing and Distributing the Detailed Rules for Implementation of the Measures for Administration of the Verification and Writing-off of Foreign Exchange Collections from Exports and the Operational Rules for the Administration of the Verification and Writing-off of Foreign Exchange Collection from Exports  Huifa No. 107 [2003]
14. Circular of the State Administration of Foreign Exchange on Issues Related to Authorizing its Branches to Decide on the List of Enterprises for the Automatic Verification and Writing-off of Foreign Exchange Collections from Exports  Huifa No 91 [2004]
15. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Simplifying the Procedures for Verification and Writing-off of Foreign Exchange Collections from Exports  Huifa No. 73 [2005]
16. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Simplification of the Formalities for the Verification and Writing-off of Foreign Exchange Collections from Exports under the Foreign Contracted Projects Handled by Petroleum-related Enterprises Item  Huifa No. 79 [2005]
17. Circular of the State Administration of Foreign Exchange on Relevant Issues on Withdrawing the Export of Tourist Commodities from the Administration of the Foreign Exchange Verification and Write-off  Huifa No. 91 [2005]
18. Reply of the State Administration of Foreign Exchange on Relevant Issues Concerning the Verification and Writing-off of Exports and the Declaration of the Balance of Payments under the Confirmed Business Item  Huifu No. 304 [2005]
19. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Strengthening the Administration of the Form for the Verification and Writing-off of Foreign Exchange Collections from Exports  Huizongfa No. 83 [2006]
20. Cancellation of the Circular on Printing and Distributing the Detailed Rules for the Punishments and Rewards of the Measures for the Examination of Foreign Exchange Collections from Exports on a Trial Basis  Announcement No. 7 [2007] of the Peoples Bank of China, the State Administration of Foreign Exchange, the Ministry of Commerce, and the State Administration of Taxation
21. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Cancellation of the Measures for the Examination of Foreign Exchange Collections from Exports on a Trial Basis  Huifa No.35 [2007]
22. Measures for On-line Inspections of Collections and Settlements of Foreign Exchange from Exports  Huifa No. 29 [2008]
23. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Implementation of the Measures for On-line Inspections of the Collection and Settlement of Foreign Exchange from Exports  Huifa No. 31 [2008]
24. Operational Rules for On-line Inspections of Collection and Settlement of Foreign Exchange from Exports  Huifa No. 42 [2008]
25. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Related to the Handling of the Collection and Settlement of Foreign Exchange in Trade based on the Paper-based Export Declaration Form  Huizongfa No. 118 [2008]
26. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Implementation of On-line Inspections on the Inconsistencies between Export Entities and Foreign Exchange Collection Entities  Huizongfa No. 122 [2008]
27. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Financial Institution Identification Code for On-line Inspections of the Collection and Settlement of Foreign Exchange from Exports  Huizongfa No. 119 [2008]
28. Circular of the General Affairs Department of the State Administration of Foreign Exchange on the Official Operations of the On-line Inspection System for the Collection and Settlement of Foreign Exchange from Exports  Huizongfa No. 128 [2008]
29. Emergency Plan for the On-line Inspection System for the Collection and Settlement of Foreign Exchange from Exports and the On-line Inspection System for the Import Declaration Form  Huizongfa No. 123 [2008]
30. Circular of the State Administration of Foreign Exchange on Issues Related to the Upgrading of the On-line Inspection System for Collection and Settlement of Foreign Exchange from Exports  Huifa No. 61 [2008]
31. Circular of the State Administration of Foreign Exchange on Relevant Issues on Revising the Registered Data for the Disproportionate Collection of Foreign Exchange under Processing Trade in the On-line Inspection System for the Collection and Settlement of Foreign Exchange  Huizongfa No. 189 [2008]
32. Circular of the State Administration of Foreign Exchange on the Relevant Issues Concerning Improvement of Administration of the On-line Inspection for the Collection and Settlement of Foreign Exchange from Exports  Huifa No. 10 [2009]
3. Border Trade
1. Measures for Foreign Exchange Administration in Border Trade  Huifa No. 113 [2003]
2. Circular of the State Administration of Foreign Exchange on Regulating the Monitoring of Currency Circulation in Border Trade  Huifa No. 125 [2004]
3. Reply of the State Administration of Foreign Exchange on the Operational Regulations for the Verification and Writing-off and Settlement Handled in RMB for Small Amount Exports at the Border with Yunnan Province  Huifu No. 42 [2004]
4. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Declaration and Verification and Writing-off of Border Trade after the Upgrading of the Monitoring System for the Balance-of-Payments Statistics   Huizongfu No. 5 [2007]
4. Foreign Exchange Administration Under Services Trade (39 Items)
(1) Basic Rules
1. Circular of the State Administration of Foreign Exchange on Issues Concerning the Handling of Outward Remittances of Profits, Stock Dividends, and Stock Bonuses by Designated Foreign Exchange Banks  Huifa No. 29 [1998]
2. Circular of the State Administration of Foreign Exchange on Revising the Circular on Issues Concerning the Handling of Outward Remittances of Profits, Stock Dividends, and Stock Bonuses by Designated Foreign Exchange Banks  Huifa No. 308 [1999]
3. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Forwarding the Letter on Submission the List of Enterprises Qualified for Distant Water Fishery Granted by the Ministry of Agriculture and the Distant Water Fishery Projects of the Ministry of Agriculture  Huizongfa No. 25 [2001]
4. Operational Rules Concerning Administration of the Sale and Payment of Foreign Exchange under the Non-trade Account and the Receipt and Payment of Foreign Exchange for Domestic Individual Residents  Huifa No. 29 [2002]
5. Circular of the State Administration of Foreign Exchange on Issues Concerning Doing a Good Job in the Administration of Foreign Exchange Sales for Personnel Sent Abroad for Official Duties  Huifa No.118 [2002]
6. Circular of the State Administration of Foreign Exchange on Issues Concerning the Sale and Payment of Foreign Exchange under the Non-trade Items Not Precisely Specified in the Existing Laws and Regulations  Huifa No. 35 [2003]
7. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Sales Agents for Foreign Currency Travelers Cheque  Huifa No. 15 [2004]
8. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Sale and Payment of Foreign Exchange under the Non-trade Items for Transnational Companies  Huifa No. 62 [2004]
9. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Utilization of Foreign Exchange by Personnel Sent Abroad on Official Duties for Enterprises and Extra-Budgetary Entities  Huifa No. 117 [2004]
10. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Utilization of Foreign Exchange by Personnel Sent Abroad on Official Duties for Enterprises and Extra-Budgetary Entities  Huizongfu No. 39 [2005]
11. Circular of the Current Account Management Department of the State Administration of Foreign Exchange on Distributing the Reply on Relevant Issues Concerning Foreign Exchange Administration under the Services Trade  Huijinghan No. 12 [2006]
12. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Adjustments to Some Policies on the Sale and Payment of Foreign Exchange under the Services Trade Item  Huizongfa No.73 [2006]
13. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of Donations by Domestic Institutions  Huifa No. 63 [2009]
14. Several Opinions of the Peoples Bank of China, the Ministry of Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission, and the State Administration of Foreign Exchange on Financial Support to Develop the Outsourcing Services Industry  Yinfa No. 284 [2009]
(2) Foreign Exchange Administration in Transportation 
1. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Regarding Forwarding the Circular on Relevant Issues regarding Starting to Use Special Invoices for Transportation in the International Ocean Shipping Industry and the Special Invoice for Shipping Agencies in the International Ocean Shipping Industry and the Circular on Adding Foreign Exchange Purchase and Payment Sheets to the Special Invoice for International Freight Agencies  Huizongfa No. 26 [2001]
2. Interim Regulations for the Administration of Foreign Exchange Receipts and Payments for Deep-sea Fishery Enterprises  Huifa No. 49 [2001]
3. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Foreign Exchange Receipts and Payments for the International Ocean Shipping Industry  Huifa No. 58 [2001]
4. Circular of the State Administration of Taxation and the State Administration of Foreign Exchange on Strengthening Administration of the Taxes on the Shipping Income of Foreign Companies and the Administration of External Payments in the International Ocean Shipping Industry  Guoshuifa No. 139 [2001]
5. Supplementary Circular of the State Administration of Taxation and the State Administration of Foreign Exchange on Strengthening Administration of the Taxes on the Shipping Income of Foreign Companies and Administration of External Payments in the International Ocean Shipping Industry  Guoshuifa No. 107 [2002]
6. Reply of the Current Account Management Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Handling the Formalities for Sale and Payments of Foreign Exchange under the Air Transportation Item  Huijinghan No. 1 [2005]
(3) Foreign Exchange Administration in Tourism 
1. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Foreign Exchange Receipts and Payments for Travel Agency Tourism  Huifa No. 3 [2001]
2. Circular of the Current Account Management Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Payments for the Extended Tourism Business of International Travel Agencies  Huijinghan No. 26 [2001]
3. Circular of the State Administration of Foreign Exchange on Relevant Operational Issues Concerning Administration of Foreign Exchange Receipts and Payments for Tourism of Travel Agencies  Huifa No. 122 [2001]
4. Reply of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Currency Exchange for the Sale of International Air Tickets by Travel Agencies  Huifu No. 213 [2001]
5. Reply of the Current Account Management Department of the State Administration of Foreign Exchange on Issues Concerning Payments of Overseas Tour Fees for Border Tourism  Huijingfu No. 3 [2002]
6. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Travel Agencies Arranging Domestic Residents to Travel to Hong Kong and Macao  Huifa No. 31 [2002]
7. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Adjustments to the Policies for the Purchase of Foreign Exchange by Chinese Citizens on Outbound Tours  Huifa No. 55 [2002]
8. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Tourism  Huifa No. 84 [2002]
9. Supplementary Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Travel Agencies Arranging Domestic Residents to Travel to Hong Kong and Macao  Huifa No. 109 [2002]
(4) Foreign Exchange Administration in Intangible Assets 
1. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening Administration for the Sale and Payment of Foreign Exchange for Introducing Intangible Assets  Huiguanhanzi No. 092 [1998]
2. Notice of the State Administration of Foreign Exchange on Revising the Circular on Relevant Issues Concerning Strengthening Administration for the Sale and Payment of Foreign Exchange for Introducing Intangible Assets and Forwarding Guoquan Document No. 15 [1999] of the National Copyright Administration  Huifa No. 283 [1999]
3. Circular of the State Administration of Foreign Exchange on Simplifying the Procedures for the Administration of Sales and Payments of Foreign Exchange for the Introduction of Technology by Foreign-invested Enterprises  Huifa No. 319 [1999]
4. Circular of the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Information Industry, the State Administration of Taxation, the General Administration of Customs, the State Administration of Foreign Exchange, and the National Bureau of Statistics on Relevant Issues Concerning Software Exports  Waijingmaojifa No. 680 [2000]
5. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Adjustment of Credentials for Examining and Verifying the Use of Foreign Exchange for Licensing Patents  Huifa No. 34 [2002]
6. Circular of the Ministry of Foreign Trade and Economic Cooperation and the State Administration of Foreign Exchange on Strengthening the Administration of Sales and Payments of Foreign Exchange for Technology Import Contracts  Waijingmaojifa No. 50 [2002]
(5) Tax Certifications for External Payments
1. Circular of the State Administration of Taxation and the State Administration of Foreign Exchange on Ceasing Submission of Tax Vouchers for Sales Tax for External Payments of Technology Transfer Fees by Domestic Institutions and Individuals  Guoshuifa No. 28 [2005]
2. Circular of the State Administration of Foreign Exchange and the State Administration of Taxation on Relevant Issues Concerning the Submission of Tax Certifications for External Payments for the Services Trade and Other Accounts  Huifa No. 64 [2008]
3. Circular of the State Administration of Foreign Exchange on Forwarding the Measures of the State Administration of Taxation for Administration of Presentation of Tax Certifications for External Payments for the Services Trade and Other Accounts  Huifa No. 1 [2009]
4. Circular of the State Administration of Foreign Exchange and the State Administration of Taxation on Relevant Issues Concerning Further Clarifying Submission of Tax Certifications for External Payments for the Services Trade and Other Accounts  Huifa No. 52 [2009]
5. Foreign Exchange Administration for Individuals under the Current Account
1. Circular of the State Administration of Foreign Exchange on Relevant Issues Regarding Foreign Exchange Administration of Foreign Trade Operations by Individuals  Huifa No. 86 [2004]
2. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Doing a Good Job in the Verification and Analysis of the Data on Settlements and Sales for Individual Foreign Exchange Businesses  Huizongfa No. 76 [2007]
3. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Regulating Operations for Settlements and Sales for Individual Foreign Exchange Businesses by Banks  Huizongfa No. 90 [2007]
4. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of the Foreign Exchange Account under the Current Account of Foreign Embassies and Consulates Stationed in China  Huizongfa No. 114 [2007]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Foreign Exchange Purchases by Overseas Individuals  Huizongfa No. 159 [2008]
6. Guidelines for Off-site Supervision of the Settlement and Sales of Individual Foreign Exchange Businesses (Trial)  Huijinghan No. 7 [2009]
7. Circular of the State Administration of Foreign Exchange on Further Perfecting Administration of the Settlements and Sales of Individual Foreign Exchange Businesses  Huifa No. 56 [2009]
8. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Promulgating the Emergency Response Plan for the Information Management System for the Settlements and Sales of Individual Foreign Exchange Businesses  Huizongfa No. 49 [2009]
9. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Distributing Data on the Information Management System for the Settlement and Sales of Individual Foreign Exchange Businesses on a Regular Basis  Huizongfa No. 142 [2009]
10. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Foreign Exchange Purchases by Overseas Individuals during the 2010 World Expo in Shanghai  Huizongfa No. 49 [2010]
6. Administration of Foreign Currency Cash and Denominations of Foreign Currency
1. Regulations of the State Administration of Foreign Exchange and the General Administration of Customs on Administration of the Allocation and Transport of Foreign Currency Cash into and out of China by Banks  Huihan No. 65 [1998]
2. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Allocation and Transport of Macao Pataca Banknotes by Banks  Huifa No. 204 [1999]
3. Interim Measures for Administration of Carrying Foreign Currency Cash into and out of China   Huifa No. 102 [2003]
4. Operational Rules for Administration of Carrying Foreign Currency Cash into and out of China   Huifa No. 21 [2004]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange and the General Office of the General Administration of Customs on Allocation and Transport of Ruble Banknotes into and out of China  Huizongfa No. 44 [2004]
III. Foreign Exchange Administration under the Capital Account (141 Items)
1. Comprehensive Issues under the Capital Account
1. Circular of the State Administration of Foreign Exchange on Starting the Use of  the New Version of the Approval Instrument of the State Administration of Foreign Exchange for Foreign Exchange Businesses under the Capital Account   Huifa No. 45 [2001]
2. Circular of the Peoples Bank of China on Adjustments of Certain Administrative Measures for Foreign Exchange Purchases under the Capital Account  Yinfa No. 304 [2001]
3. Circular of the State Administration of Foreign Exchange on Transitional Policies and Measures after Revocation of Certain Administrative Examinations and Approvals of Foreign Exchange Administration under the Capital Account  Huifa No. 50 [2003]
4. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Delegation of Certain Approval Authorities for Foreign Exchange Businesses under the Capital Account  Huifa No. 63 [2005]
5. Circular of the State Administration of Foreign Exchange on Adjustments to Certain Approval Authorities for Foreign Exchange Business under the Capital Account  Huifa No. 21 [2009]
6. Circular of the State Administration of Foreign Exchange on Adjustments in  Certain Approval Authorities for Foreign Exchange Businesses under the Capital Account  Huifa No. 29 [2010]
2. Foreign Exchange Administration of Foreign Direct Investment (37 Items)
(1) Basic Rules
1. Letter of Reply of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Reinvestments in RMB by Foreign Businessman  Huifu No. 129 [2000]
2. Interim Provisions for the Reorganization of State-owned Enterprises by Utilizing Foreign Investment  Decree No. 42 of the State Administration for Industry and Commerce and the State Administration of Foreign Exchange, promulgated and implemented as of January 1, 2003
3. Provisions for the Administration of Foreign-Invested Venture Investment Enterprises  Decree No. 2 [2003] of the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology, the State Administration for Industry and Commerce, the State Administration of Taxation, and the State Administration of Foreign Exchange
4. Circular of the State Administration of Foreign Exchange on Issues Concerning Improvements in the Foreign Exchange Administration of Foreign Direct Investment  Huifa No. 30 [2003]
5. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Financing and Return Investment through Overseas Special Purpose Companies by Domestic Residents  Huifa No. 75 [2005]
6. Measures for Administration of Strategic Investments in Listed Companies by Foreign Investors  Decree No. 28 [2005] of the Ministry of Commerce of the People's Republic of China , the China Securities Regulatory Commission, the State Administration of Taxation, the State Administration for Industry and Commerce, and the State Administration of Foreign Exchange
7. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Opening Foreign Exchange Capital Accounts by Insurance Intermediary Institutions  Huizongfa No. 6 [2006]
8. Provision on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors  Decree No. 10 [2006] of the Ministry of Commerce of the Peoples Republic of China, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration of Taxation, the State Administration for Industry and Commerce, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange
(2). Capital Administration
1. Circular of the State Administration of Foreign Exchange on Several Issues Related to Capital Changes in Foreign-Invested Enterprises  Huizihanzi No. 188 [1996]
2. Circular of the State Administration of Foreign Exchange Concerning Reform of the Administration Mode for Foreign Exchange Settlement of Capital under the Foreign-Invested Items  Huifa No. 59 [2002]
3. Circular of the State Administration of Foreign Exchange on Improving the Verification of Foreign Exchange Settlement under the Capital Account and the Administration of External Debt Registration of Foreign-invested Enterprises  Huifa No. 42 [2004]
4. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Determining the Nature of Foreign Exchange Settlement Acts by Foreign-funded Enterprises for Repaying RMB Loans  Huizongfa No. 39 [2008]
5. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Conducting Domestic Equity Investments with Capital from Foreign Exchange Settlements by Foreign-Invested Venture Investment Enterprises  Huizongfu No. 125 [2008]
6. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Business Operational Issues Concerning Improving Administration for the Payment and Settlement of the Foreign Exchange Capital of Foreign-Invested Enterprises  Huizongfa No. 142 [2008]
(3) Registration
1. Interim Measures for Foreign Exchange Registration Management of Foreign-Invested Enterprises  Huizihanzi No. 187 [1996]
2. Circular of the State Administration of Foreign Exchange on Issues Concerning Implementation of Foreign Exchange Registration for Foreign Direct Investment  Huifa No. 42 [2002]
3. Circular of the Ministry of Finance and the State Administration of Foreign Exchange on Further Strengthening Capital Verifications for Foreign-Invested Enterprises and Perfecting the Foreign Exchange Registration System for Foreign Investment  Caikuai No. 1017 [2002]
4. Circular of the State Administration of Foreign Exchange on Carrying Out Confirmation of Capital Verifications for Foreign Direct Investment and Foreign Exchange Registration for Foreign Investment in the Export Processing Zones, the Bonded Zones, and within the Shanghai Diamond Exchange  Huifa No. 108 [2004]
5. Reply of the State Administration of Foreign Exchange on Issues Concerning Confirmation of the Capital Verifications for Mergers and Splits of Foreign-Invested Enterprises  Huifu No. 180 [2005]
6. Opinions of the Ministry of Construction, the Ministry of Commerce, the National Development and Reform Commission, the Peoples Bank of China, the State Administration for Industry and Commerce, and the State Administration of Foreign Exchange on Regulating Access and Administration of Foreign Investment in the Real Estate Market  Jianzhufang No. 171 [2006]
7. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issuing the List of the First Batch of Foreign-Funded Real Estate Projects That Have Filed for the Record with the Ministry of Commerce  Huizongfa No. 130 [2007]
8. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Implementing the On-line Announcement of the List of Foreign-Funded Real Estate Projects That Have Filed for the Record with the Ministry of Commerce  Huizongfa No. 138 [2007]
9. Circular of the State Administration of Foreign Exchange on Issues Concerning the Generalization of the Foreign Exchange Business Information System for Direct Investment  Huifa No. 16 [2008]
10. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning the Operation of the Foreign Exchange Business Information System and the Foreign Exchange Account System for Direct Investment  Huizongfa No. 129 [2008]
11. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Registration for Foreign-Invested Real Estate Enterprises  Huizongfa No. 42 [2009]
12. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling Procedures Related to Capital Verifications and Confirmation of Investments with Domestic Equities for Foreign Shareholders of Foreign-Funded Enterprises  Huizongfu No. 3 [2010]
(4) Annual Inspections
1. Circular of the Ministry of Finance and the State Administration of Foreign Exchange on Strengthening Auditing of Foreign Exchange for Foreign-Invested Enterprises  Caiwaizi No. 607 [1998]
2. Circular of the Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission, the Ministry of Finance, the General Administration of Customs, the State Taxation Administration, the State Administration for Industry and Commerce, and the State Administration of Foreign Exchange on Implementing a Program for Joint Annual Inspections of Foreign-Invested Enterprises  Waijingmaozifa No. 938 [1998]
3. Circular of the State Administration of Foreign Exchange and the Ministry of Finance on Adjusting the Table of Foreign Exchange Issues Under the Annual Inspection of Foreign Exchange Businesses of Foreign-Invested Enterprises  Huifa No. 124 [2002]
4. Circular of the State Administration of Foreign Exchange on Issues Concerning Improvements in the Annual Inspections of the Foreign Exchange Business of Foreign-Invested Enterprises  Huifa No. 7 [2004]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Further Improvements in the Annual Inspections of the Foreign Exchange Business of Foreign-Invested Enterprises in 2010  Huizongfa No. 40 [2010]
(5) Investment Liquidation
Circular of the State Administration of Foreign Exchange on Authorizing the Branches to Handle Equity Transfers and Foreign Exchange Clearance Business for Foreign-Funded Enterprises  Huifa No. 397 [1999]
(6) Others
1. Letter of Reply of the State Administration of Foreign Exchange on Several Issues Concerning Foreign Exchange Administration of Domestic Projects Contracted by Overseas Enterprises  Huizihanzi No. 204 [1998]
2. Circular of the State Administration of Foreign Exchange on Forwarding the Circular of the General Office of the State Council on Relevant Issues Concerning the Proper Handling of Existing Projects with Guaranteed Fixed Returns on Investments for Foreign Parties  Huifa No. 105 [2002]
3. Circular of the State Administration of Foreign Exchange on Issues Related to Regulating Foreign Exchange Administration of the Real Estate Market  Huifa No. 47 [2006]
4. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Conducting Foreign Exchange Business in Terms of the Emission Reduction Trade of Carbon Dioxide  Huizongfu No. 27 [2008]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Delegating Authority for Examining and Approving Dedicated Foreign Exchange Guarantee Accounts for the Bidding of Land-use Rights by Foreign Investors and Dedicated Foreign Exchange Guarantee Accounts for Property Rights Transactions by Foreign Investors  Huizongfa No. 130 [2008]
3. Foreign Exchange Administration for Overseas Investments (7 items)
(1) Basic Rules
1. Interim Measures for Joint Annual Inspections of Overseas Investment  Decree No. 32 [2002] of the Ministry of Foreign Trade and Economic Cooperation and the State Administration of Foreign Exchange
2. Statistical System for Foreign Direct Investments  Shanghefa No. 529 [2008]
3. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Overseas Lending Granted by Domestic Enterprises  Huifa No. 24 [2009]
4. Circular of the State Administration of Foreign Exchange on Distributing the Provisions for Foreign Exchange Administration of Overseas Direct Investments by Domestic Institutions  Huifa No. 30 [2009]
5. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Overseas Direct Investments by Domestic Banks  Huifa No. 31 [2010]
(2) Others
1. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Foreign-aid Items  Huifa No. 251 [1999]
2. Operational Rules for Foreign Exchange Administration of Overseas Processing and Assembling with Materials from China and Foreign-Aid Projects  Huifa No. 317 [1999]
3. Reply of the State Administration of Foreign Exchange on Issues Concerning the Overseas Lending of Shanghai Bell Co. Ltd.   Huizongfu No. 19 [2010]
4. Administration of Overseas Financing and Negotiable Securities (15 Items)
(1) Overseas Issuance of Bonds and Listings
1. Interim Measures for the Administration of Project Financing Conducted Abroad  Jiwaizi No. 612 [1997]
2. Circular of the General Office of the State Council Forwarding the Opinion of the State Development Planning Commission and the People's Bank of China on Further Strengthening Administration of External Bond Issuances  Guobanfa No. 23 [2000]
3. Provisional Measures of the State Administration of Foreign Exchange and the China Securities Regulatory Commission on Reducing State-owned Shares to Finance Social Security Funds  Guofa No. 22 [2001] 
4. Circular of the State Administration of Foreign Exchange on Issues Concerning Further Improving Foreign Exchange Administration of Overseas Listings  Huifa No. 77 [2002]
5. Circular of the State Administration of Foreign Exchange on Relevant Issues Regarding Improving Foreign Exchange Administration of Overseas Listings  Huifa No. 108 [2003]
6. Circular of the State Administration of Foreign Exchange on Relevant Issues on Turning Over to the National Social Security Fund the Foreign Exchange Income Gained from Overseas Reductions of State-owned Shares Huifa No. 64 [2004] 
7. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Overseas Listings  Huifa No. 6 [2005]
(2) Hedging
1. Circular of the China Securities Regulatory Commission, the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation, and Other Departments on Promulgating the Measures for Administration of the Overseas Futures Hedging Business of State-owned Enterprises  Zhengjianfa No. 81 [2001]
2. Circular of the State Administration of Foreign Exchange on the Operational Rules for Foreign Exchange Administration of the Overseas Futures Hedging Business of the State-owned Enterprises (Trial)  Huifa No. 150 [2001]
3. Circular of the State Administration of Foreign Exchange on Adjusting the Issues Related to the Opening of Domestic Foreign Exchange Accounts in the Operational Rules for Foreign Exchange Administration of the Overseas Futures Hedging Business of the State-owned Enterprises (Trial)  Huifa No. 72 [2003]
4. Circular of the State Administration of Foreign Exchange on Issues Concerning Modification of the Operational Rules for Foreign Exchange Administration of the Overseas Commodity Futures Hedging Business of State-owned Enterprises (Trial)  Huifa No. 34 [2005]
5. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Tongling Nonferrous Metals Group Holding Co., Ltd. Paying Foreign Exchange Funds for Hedging in Overseas Commodity Futures. Annex: Principle for Dealing with Relevant Issues about Foreign Exchange Administration of Hedging in Overseas Commodity Futures Conducted by State-owned Enterprises During the Transitional Period    Huizongfu No. 78 [2008]
6. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Resolving Issues about Outward Remittances of Petty Cash in Foreign Exchange under the Item of Hedging in Overseas Commodity Futures Conducted by State-owned Enterprises During the Holidays  Huizongfu No. 7 [2009]
(3) Others
1. Circular of the State Administration of Foreign Exchange on Adjusting the Authority for Examining and Approving the Opening of Dedicated Foreign Exchange Accounts and the Settlement of Foreign Exchange Proceeds of Share Offerings for Domestic Issuances of B-shares and Overseas Listed Shares  Huifa No. 380 [1999]
2. Circular of General Office of PBOC on Relevant Issues Concerning the Decrease in Stakes by Foreign Stockholders of A-share Listed Companies, the Opening of Dividend-related Accounts, and Foreign Exchange Administration  Yinbanfa No. 178 [2009]
5. Foreign Exchange Administration of Investments in the Securities Market (9 Items)
(1) Foreign Exchange Administration of Investments in the Domestic Securities Market
1. Interim Measures for Administration of RMB Bond Issuances by International Development Institutions  Announcement No. 5 [2005] of the People's Bank of China , the Ministry of Finance, the National Development and Reform Commission, and the China Securities Regulatory Commission
2. Measures for Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors  Decree No. 36 of the China Securities Regulatory Commission, the People's Bank of China, and the State Administration of Foreign Exchange, promulgated and implemented on September 1, 2006
3. Provisions for the Administration of Foreign Exchange in Domestic Securities Investments by Qualified Foreign Institutional Investors  Announcement No. 1 [2009] of the State Administration of Foreign Exchange
4. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of the Reductions of A-Share Funds by Lüting (Hong Kong) Co., Ltd.  Huizongfu No. 58 [2010]
(2) Foreign Exchange Administration of Investments in Overseas Securities Markets 
1. Circular of the Peoples Bank of China, the China Banking Regulatory Commission, and the State Administration of Foreign Exchange on Distributing the Interim Administrative Measures for the Overseas Wealth Management Business Conducted by Commercial Banks on Behalf of Clients  Yinfa No.121 [2006]
2. Operational Rules for Foreign Exchange Administration for the Overseas Wealth Management Business Conducted by Commercial Banks on Behalf of Clients  Huizongfa No. 135 [2006]
3. Interim Measures for the Administration of Overseas Investments of Insurance Funds  Decree No. 2 [2007] of the China Insurance Regulatory Commission, the People's Bank of China , and the State Administration of Foreign Exchange
4. Interim Measures for the Administration of the Entrusted Overseas Wealth Management Business of Trust Enterprises  Yinjianfa No. 27 [2007]
5. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Overseas Securities Investments by Fund Management Companies and Securities Companies  Huifa No. 47 [2009]
6. Administration of External Debt and External Guarantees (52 Items)
(1) Basic Rules
1. Measures for the Administration of Borrowing of International Commercial Loans by Domestic Institutions  Huizhengfazi No. 06 [1997]
2. Circular of the State Administration of Foreign Exchange on Adjustments to the Management Measures for Purchasing Foreign Exchange for Early Repayment of Loans  Huifa No. 38 [2002]
3. Interim Measures for External Debt Management  Decree No. 28 [2003] of the State Development Planning Commission, the Ministry of Finance, and the State Administration of Foreign Exchange
4. Measures for External Debt Management of Domestic Foreign-funded Banks  Decree No. 9 [2004] of the National Development and Reform Commission, the People's Bank of China, and the China Banking Regulatory Commission
5. Circular of the State Administration of Foreign Exchange on Issues Concerning Implementation of the Measures for External Debt Management of Domestic Foreign-funded Banks  Huifa No. 59 [2004]
6. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Improving Administration of the External Debt  Huifa No. 74 [2005]
7. Interim Measures for Administration of the Issuance of RMB Bonds in the Hong Kong Special Administrative Region by Domestic Financial Institutions,  Announcement No. 12 [2007] of the People's Bank of China and the National Development and Reform Commission
(2) Statistics and Administration of External Debts
1. Interim Provisions for the Monitoring of External Debt Statistics
2. Circular of the State Development Planning Commission on Implementation of Calibration Planning Management for the Borrowing of Foreign Loans  Jiwaizi No. 751 [1996]
3. Detailed Rules for Implementation of the Monitoring of External Debt Statistics  Huizhengfazi No. 06 [1997]
4. Circular of the State Development Planning Commission, the People's Bank of China, and the State Administration of Foreign Exchange on Implementing Administration of Outstanding Mid-term and Long-term External Debt of State-owned Commercial Banks  Jiwaizi No. 53 [2000]
5. Circular of the State Administration of Foreign Exchange on Adjustments to the External Debt Specifications for China and Relevant Issues  Huifa No. 174 [2001]
6. Circular of the State Administration of Foreign Exchange on Popularizing the Statistics and Monitoring System for the External Debt (Bank version) and Adjusting the Requirements the Submission of the External Debt Data  Huifa No. 78 [2005]
7. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning External Debt Registration for Foreign-Invested Real Estate Enterprises  Huizongfu No. 118 [2007]
8. Measures for Off-site Inspections of the External Debt Data of Banks (Trial)  Huifa No. 44 [2007]
9. Circular of the State Administration of Foreign Exchange on Improving the Approaches to Foreign Exchange Administration of External Debt On-lending by the Export-Import Bank of China  Huifa No. 22 [2009]
10. Circular of the State Administration of Foreign Exchange on Distributing Issues Concerning the 2010 Quotas for the Outstanding Short-term External Debt  Huifa No. 18 [2010]
11. Circular of the Ministry of Finance and the State Administration of Foreign Exchange on Improving the Mode for Foreign Exchange Administration of On-lending Projects of International Organizations in Some Regions  Caiji No. 7 [2010]
(3) Guarantees
1. Measures for Administration of External Guarantees of Domestic Institutions  Decree No. 3 [1996] of the People's Bank of China
2. Detailed Rules for Implementation of the Measures for Administration of External Guarantees of Domestic Institutions  Huizhengfazi No. 10 [1997]
3. Letter of the State Administration of Foreign Exchange on How to Define Unauthorized Pledges Conducted with Foreign Exchange  Huizhengfazi No. 2 [1997]
4. Circular of the People's Bank of China on Strengthening Administration of the RMB Loan Business under the Item of Foreign Exchange Guarantees of Domestic Financial Institutions  Yinfa No. 458 [1998]
5. Letter of the State Administration of Foreign Exchange on Interpretation of the Relevant Provisions for Providing External Guarantees by Domestic Institutions  Huihan No. 24 [1999]
6. Letter of Reply of the State Administration of Foreign Exchange on RMB Loans under the Item of Foreign Exchange Guarantees of Financial Institutions  Huifu No. 56 [1999]
7. Circular of the State Administration of Foreign Exchange on Issues Concerning Supplementary Registration of the External Debt and External Guarantees  Huizihan No. 77 [1999]
8. Circular of the People's Bank of China on Improving Administration of RMB Loans under the Item of Foreign Exchange Guarantees  Yinfa No. 223 [1999]
9. Circular of the State Administration of Foreign Exchange on Regulating the Authority for the Examination and Approval of the Performance of External Guarantees  Huifa No. 84 [2000]
10. Reply Letter of the State Administration of Foreign Exchange on the Outward Issuance of Letters of Guarantee as Inquired by the Bank of China   Huifa No. 97 [2000]
11. Circular of the State Administration of Foreign Exchange on Principles Dealing with the Payment of Overseas Guarantee Fees  Huifa No. 105 [2000]
12. Reply of the State Administration of Foreign Exchange on Issues Concerning the Provision of External Guarantees  Huifu No. 239 [2000]
13. Circular of the State Administration of Foreign Exchange on Forwarding and Implementing the Interpretations of the Supreme Peoples Court on Several Issues Concerning the Applicability of the Guarantee Law of the Peoples Republic of China  Huifa No. 6 [2001]
14. Reply of the State Administration of Foreign Exchange on Issues Concerning Registration of Insurance Equity Pledges  Huifu No. 144 [2001]
15. Supplementary Circular of the State Administration of Foreign Exchange on Issues Concerning RMB Loans under the Item of Foreign Exchange Guarantees  Huifa No. 26 [2005]
16. Circular of the State Administration of Foreign Exchange on Adjusting the Administration Mode for External Financing Guarantees Provided by Domestic Banks to Overseas Investment Enterprises  Huifa No. 61 [2005]
17. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Settlement of Compliance Payments for Overseas Guarantees  Huizongfu No. 65 [2009]
(4) Trade Credits
1. Circular of the People's Bank of China on Issues Concerning Conducting the Business of Letters of Credit and Letters of Guarantees by Commercial Banks  Yinfa No. 124 [2002]
2. Reply of the State Administration of Foreign Exchange on Relevant Foreign Exchange Administration Issues Concerning Applications to Conduct New Product Businesses under the Trade Financing Category by Banks  Huifu No. 274 [2004]
3. Circular of the State Administration of Foreign Exchange on Issues Concerning Implementation of Registration Management of the External Debt under the Item of Corporate Trade in Goods  Huifa No. 30 [2008]
4. Circular of the State Administration of Foreign Exchange on Issues Concerning Doing a Good Job in Registration Management of Deferred Payments of Enterprises  Huifa No. 46 [2008]
5. Circular of the State Administration of Foreign Exchange on Issues Concerning Implementation of Registration Management of External Claims under the Item of Corporate Trade in Goods  Huifa No. 56 [2008]
6. Circular of the State Administration of Foreign Exchange on Issues Concerning Improvements in the Registration Management of the External Debt under the Item of Corporate Trade in Goods  Huifa No. 73 [2008]
7. Operational Guidelines for the Trade Credit Registration Management System (Deferred Payments)  Huizongfa No. 157 [2008]
8. Operational Rules for the Trade Credit Registration Management for Enterprises (Advance Receipts)  Huizongfa No. 163 [2008]
9. Operational Guidelines for the Trade Credit Registration Management System (Advance Payments)  Huizongfa No. 174 [2008]
10. Operational Guidelines for the Trade Credit Registration Management (Deferred Collection)  Huizongfa No. 176 [2008]
11. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Improvements in Trade Credit Registration Management for Enterprises  Huizongfa No.36 [2009]
12. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Further Improvements in Trade Credit Registration for Enterprises and Administration of On-line Inspections for the Collection and Settlement of Foreign Exchange from Exports  Huizongfa No. 78 [2009]
13. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Improvement of the Registration Management of Trade Credits for Enterprises  Huizongfa No.108 [2009]
(5) Foreign Exchange Loans
1. Measures for Registration Management of Foreign Exchange (On-lending) Loans
2. Circular of the State Administration of Foreign Exchange on Issues Concerning External Borrowing Valued in RMB  Huizihanzi No. 002 [1995]
3. Circular of the State Administration of Foreign Exchange on Implementing the Reform of the Mode for Foreign Exchange Administration of Domestic Foreign Exchange Loans  Huifa No. 125 [2002]
4. Circular of the State Administration of Foreign Exchange on Distribution of the Provisions for Administration of the Centralized Operations of Foreign Exchange Funds of Internal Members of Domestic Enterprises  Huifa No. 49 [2009]
7. Foreign Exchange Administration of Personal Capital Accounts (15 items)
(1) Asset Transfers
1. Interim Measures for Administration of the Sales and Payments of Foreign Exchange in Terms of External Transfers of Personal Property  Announcement No. 16 [2004] of the People's Bank of China
2. Circular of the State Administration of Foreign Exchange on Printing and Distributing the Operational Guidelines for the Interim Measures for the Administration of the Sales and Payments of Foreign Exchange in Terms of External Transfers of Personal Property (Trial)  Huifa No. 118 [2004]
3. Circular of the State Administration of Foreign Exchange on Issues Concerning Implementation of the Interim Measures for the Administration of the Sales and Payments of Foreign Exchange in Terms of External Transfers of Personal Property  Huifa No. 9 [2005]
4. Circular of the State Administration of Taxation and the State Administration of Foreign Exchange on Relevant Issues Concerning Submission of Taxation Certificates or Tax Payment Vouchers for Outward Transfers of Personal Properties  Guoshuifa No. 13 [2005]
5. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Settlement of Foreign Exchange Capital for Purchasing Domestic Commercial Residential Buildings by Overseas Natural Persons  Huizongfafu No. 86 [2007]
(2) Portfolio Investment
1. Circular of the State Administration of Foreign Exchange on Issues Concerning Domestic Securities Trading Institutions Engaging in B-share Trade  Huiguanhanzi No. 140 [1995]
2. Circular of the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Several Issues Concerning Investments in Listed Domestic Foreign-funded Shares by Domestic Individual Residents  Zhengjianfa No. 22 [2001]
3. Circular of the State Administration of Foreign Exchange on Issues Concerning Implementing the Circular on Several Issues Concerning Investments in Domestic Listed Foreign-funded Shares by Domestic Individual Residents  Huifa No. 26 [2001]
4. Supplementary Circular of the State Administration of Foreign Exchange on Issues Concerning Investments in Listed Domestic Foreign-funded Shares by Domestic Individual Residents Huifa No. 31 [2001]
5. Supplementary Circular of the State Administration of Foreign Exchange on Issues Concerning Implementing the Circular on Several Issues Concerning Investments in Listed Domestic Foreign-funded Shares by Domestic Individual Residents  Huifa No. 32 [2001]
6. Supplementary Circular of the State Administration of Foreign Exchange on Issues Concerning Investments in the B-Share Market with Personal Foreign Exchange Deposits by Domestic Residents  Huifa No. 33 [2001]
7. Reply of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Settlement of Income from B-Share Investments by Individual Domestic Investors  Huifu No. 283 [2007]
8. Operational Rules on Foreign Exchange Administration of the Involvement of Domestic Individuals in Employee Stock Ownership Plans and Share Option Schemes of Overseas Listed Companies  Huizongfa No. 78 [2007]
9. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Delegating Authority for Examining and Approving the Quotas for Initial Purchases and Payments in Foreign Exchange and the Opening of Foreign Exchange Accounts for the Involvement of Domestic Individuals in the Employee Stock Ownership Plans of Overseas Listed Companies  Huizongfa No. [2008]
(3) RMB Loans with Pledged Foreign Exchange
Circular of the State Administration of Foreign Exchange on Policy-related Issues Concerning the Mortgaging of Foreign Exchange for RMB Loans by Domestic Individual Residents  Huifa No. 2 [2003]
IV. Supervision of the Foreign Exchange Business of Financial Institutions (72 items)
1. Basic Rules
1. Provisions for the Administration of the Foreign Exchange Business of Non-bank Financial Institutions  Huiyefa No. 15 [1992]
2. Supplementary Provisions to the Provisions for the Administration of the Foreign Exchange Business of Non-bank Financial Institutions  Huiyehanzi No. 083 [1993]
3. Definition of the Scope of Foreign Exchange Business for Non-Bank Financial Institutions  Huiguanhanzi No. 142 [1996]
4. Circular of the State Administration of Foreign Exchange on Adjusting the Scope of Foreign Exchange Operations of Non-bank Financial Institutions  Huiguanhanzi No. 258 [1997]
5. Working System of the State Administration of Foreign Exchange on Off-site Supervision of Receipts and Payments in Foreign Exchange (Trial)  Huifa No. 22 [2004]
6. Measures for Examination of Bank Performance in Implementing the Provisions for Foreign Exchange Administration  Huifa No. 33 [2009]
2. Settlement and Sales of Foreign Exchange by Banks (24 items)
(1) Settlement and Sales of Foreign Exchange by Banks
1. Detailed Rules for the Implementation of Settlement, Sales, and Payments of Foreign Exchange by Foreign-funded Banks  Yinfa No. 202 [1996]
2. Regulations Concerning Accounting Treatment for the Detailed Rules for Implementation of Settlement, Sales, and Payments of Foreign Exchange by Foreign-funded Banks
3. Interim Measures for Administration of the Handling of the Settlement and Sales of Foreign Exchange by Designated Foreign Exchange Banks Decree No. 4 [2002] of the People's Bank of China
4. Circular of the State Administration of Foreign Exchange on Principles for Handling Foreign Exchange Advances under Letters of Credit of Chinese-funded Designated Foreign Exchange Banks  Huifa No. 56 [2002]
5. Circular of the State Administration of Foreign Exchange on Further Clarifying the Procedures for Examining and Approving Foreign Exchange Purchases for Advance Payments under Letters of Credit by City Commercial Banks, Rural Commercial Banks, and Rural Credit Cooperatives  Huifa No. 76 [2002]
6. Circular of the Peoples Bank of China on Relevant Issues Concerning Opening Special RMB Currency Accounts for Settlement and Sales of Foreign Exchange by Foreign-funded Banks  Yinfa No. 180 [2003]
7. Circular of the State Administration of Foreign Exchange on the Approval Principles and Procedures for Bank Settlement and Sales of Foreign Exchange under Capital and Financial Projects  of Banks  Huifa No. 61 [2004]
8. Circular of the Peoples Bank of China on the Administration of Settlement and Sales of Foreign Exchange  Yinfa No. 62 [2004]
9. Circular of the Peoples Bank of China on Relevant Issues Concerning the Special RMB Account for Settlement and Sales of Foreign Exchange  Yinfa No. 292 [2005]
10. Reply of the Balance of Payments Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Administration of Market Access and Withdrawal for Spot Settlement and Sales of the Foreign Exchange of Banks  Huiguofa No. 11 [2007]
11. Circular of the State Administration of Foreign Exchange on Adjusting the Administration Mode for Market Access and Withdrawal for Spot Settlement and Sales of the Foreign Exchange of Banks  Huifa No. 20 [2007]
12. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Using the Special Administrative Stamp for the Settlement and Sales of the Foreign Exchange of Banks  Huizongfa No. 97 [2007]
13. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Handling Violations for the Failure of Designated Foreign Exchange Banks to File the Modified Information for the Settlement and Sales Business of Foreign Exchange in Compliance with the Relevant Regulations  Huizongfu No. 117 [2008]
(2) Bank Position Management for the Settlement and Sales of Foreign Exchange
1. Circular of the State Administration of Foreign Exchange on Centralized Administration of the Turnover Positions in the Settlement and Sales of Foreign Exchange of Domestic Foreign-funded Banks  Huifa No. 50 [2005]
2. Circular of the State Administration of Foreign Exchange on Adjusting the Administrative Measures for the Positions of the Settlement and Sales of the Foreign Exchange of Banks  Huifa No. 69 [2005]
3. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Verification of the General Position Limits for the Settlement and Sales of Foreign Exchange of Banks  Huizongfa No. 118 [2005]
4. Circular of the State Administration of Foreign Exchange on Adjusting the Administration of the General Position Concerning the Settlement and Sales of Foreign Exchange of Banks  Huifa No. 26 [2006]
5. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Verification of the General Position Limits on Settlement and Sales of Foreign Exchange of Local Financial Institutions  Huizongfa No. 46 [2010]
(3) Settlement and Sales Statements of the Foreign Exchange of Banks
1. Statistical System for the Settlement and Sales of Foreign Exchange of Banks  Huifa No. 42 [2006]
2. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Adjusting the Reporting Mode for the Statistical Statements of the Positions in the Settlement and Sales of Foreign Exchange  Huizongfa No. 38 [2008]
3. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Regulating Statistical Administration of the Settlement and Sales of Foreign Exchange of Banks Huifa No. 54 [2008]
(4) Forward Settlement and Sales of Foreign Exchange
1. Operational Guidelines for the Filing of the Forward Settlement and Sales of Foreign Exchange and the Swap Business of the RMB against Foreign Currencies Provided to Customers by Designated Foreign Exchange Banks  Huifa No. 70 [2005]
2. Circular of the People's Bank of China on Issues Concerning Widening the Forward Settlement and Sales of Foreign Exchange of Designated Foreign Exchange Banks to Customers and Launching the Swap Business of the RMB against Foreign Currencies  Yinfa No. 201 [2005]
3. Circular of the State Administration of Foreign Exchange on Foreign Exchange Administration Issues Concerning the Forward Settlement and Sales of Foreign Exchange and the Swap Business of the RMB against Foreign Currencies Provided to Customers by Designated Foreign Exchange Banks Huifa No. 52 [2006]
3. Offshore Business
1. Measures for the Administration of the Offshore Banking Business  Yinfa No. 438 [1997]
2. Circular of the State Administration of Foreign Exchange on Distributing the Detailed Rules for Implementation of the Measures for Administration of the Offshore Banking Business  Huiguanfazi No. 09 [1998]
4. Related to Bank Cards
1. Circular of the State Administration of Foreign Exchange on Issuing the Category Code of Forbidden and Restricted Overseas Merchants for Domestic Bank Cards  Huihan No. 19 [2004]
2. Circular of the State Administration of Foreign Exchange on Submitting the Statistical Statement on the Use of Mainland RMB Cards in Hong Kong  Huifa No. 57 [2004]
3. Circular of the State Administration of Foreign Exchange on Regulating Administration of Foreign Currency Cards of Banks  Huifa No. 66 [2004]
4. Circular of the State Administration of Foreign Exchange on Updating the Category Codes of Merchants in Terms of the Domestic Bank Cards Being Used Overseas  Huifa No. 110 [2004]
5. Circular of the State Administration of Foreign Exchange on Regulating Some Newly Increased Category Codes of Merchants Where Domestic Bank Cards are Used Overseas  Huifa No. 55 [2007]
6. Reply of the State Administration of Foreign Exchange on Raising the Foreign Currency Withdrawal Limits of China UnionPay Cards through Overseas ATMs for Single Cards on Single Days  Huifu No. 103 [2008]
5. Gold Business
1. Reply of the State Administration of Foreign Exchange on Foreign Exchange Administration of Overseas Gold Lending/Borrowing and the Derivatives Transaction Business  Huifu No. 253 [2005]
2. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of the Exchange Rate Exposure of the Gold Business Conducted by the Relevant Banks  Huifa No. 42 [2007]
6. Distressed Debts
1. Circular of the Peoples Bank of China Concerning Relevant Foreign Exchange Administration Policies for Wholly State-owned Commercial Banks After Divesting Non-performing Foreign Exchange Loans  Yinfa No. 92 [2001]
2. Circular of the State Development and Reform Commission and the State Administration of Foreign Exchange on Regulating the Record Filing Administration for  Outward Transfers of Distressed Debts by Domestic Financial Institutions  Fagaiwaizi No. 254 [2007]
7. Bank-Related and Others
1. Circular of the Peoples Bank of China on Relevant Issues for Handling Personal RMB Business between Mainland Banks and Hong Kong and Macao Banks  Yinfa No. 254 [2004]
2. Reply of the State Administration of Foreign Exchange on Relevant Issues Concerning the Guarantee Money Accounts and Other Aspects of the Letters of Credit Issued by the Guangdong Development Bank  Huifu No. 1 [2006]
3. Reply of the State Administration of Foreign Exchange on Launching the Transaction of Personal Guarantee Money in Foreign Exchange by the Fujian Branch of the Bank of China Huifu No. 95 [2006]
4. Reply of the General Affairs Department of the State Administration of Foreign Exchange on the Domestic Payment Business on Behalf of Clients and Other Issues of the Guangdong Development Bank  Huizongfu No. 17 [2007]
5. Reply of the General Affairs Department of the State Administration of Foreign Exchange on the Handling of Account Opening Attestation Agent Services for Individual Clients at Overseas Branches by the Domestic Institutions of the Bank of China  Huizongfu No. 56 [2007]
6. Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration Involved in the Restructuring of Foreign-funded Banks  Huifa No. 15 [2007]
8. Insurance Companies 
1. Circular of the State Administration of Foreign Exchange on Distributing and Implementing the Interim Provisions for Foreign Exchange Administration of the Insurance Business  Huifa No. 95 [2002]
2. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Submission of Foreign Exchange Regulatory Reporting Forms of the Insurance Business  Huifa No. 27 [2003]
3. Operational Rules for Foreign Exchange Administration of the Insurance Business  Huifa No. 118 [2003]
4. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Launching of the Domestic Inter-bank Foreign Exchange Borrowing (Lending) Business by Insurance Companies  Huifa No. 105 [2003]
5. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Collection and Payment of Foreign Exchange of the Export Credit Insurance Business  Huifa No. 29 [2004]
6. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Simplification of the Examination and Verification Procedures for the Foreign Exchange Business of Insurance Institutions  Huifa No. 85 [2004]
7. Reply of the State Administration of Foreign Exchange on Implementation of the Operational Measures for the Inter-bank Foreign Exchange Borrowing (Lending) Business Undertaken by Insurance CompaniesOperational Measures for the Inter-bank Foreign Exchange Borrowing (Lending) Business Undertaken by Insurance Companies (Interim)  Huifu No. 93 [2004]
8. Reply of the State Administration of Foreign Exchange on Relevant Issues Concerning Advance Payments for Other Parties by the Shanghai Branch of the Federal Insurance Company  Huifu No. 216 [2005]
9. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Adjustment of the Foreign Exchange Administration Policies on the Part of Insurance Businesses  Huifa No. 23 [2006]
9. Trust Companies, Financial Asset Companies, and Other Non-bank Financial Institutions
1. Circular of the Peoples Bank of China on the Scope of the Foreign Exchange Business of Financial Asset Management Companies  Yinfa No. 160 [2000]
2. Supplementary Circular of the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Several Issues Concerning Securities Trading Institutions Engaging in B-Share Business  Zhengjianfa No. 26 [2001]
3. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Purchase of Foreign Exchange to Replenish Foreign Exchange Capital by Trust and Investment Companies  Huifa No. 159 [2001]
4. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of Fund Management Companies with Foreign Shares  Huifa No. 44 [2003]
5. Reply of the State Administration of Foreign Exchange on Relevant Issues Concerning the International Remittance and Exchange Business Conducted by the Postal Savings Bureau of the State Post Bureau  Huifu No. 271 [2003]
6. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of Automotive Financial Companies  Huifa No. 72 [2004]
7. Circular of the State Administration of Foreign Exchange on Foreign Exchange Administration Concerning the Disposal of Non-performing Assets with Foreign Investments by Financial Asset Management Companies  Huifa No. 119 [2004]
10. Foreign Currency Exchange Agencies, Franchised Institutions of Domestic and Foreign Currency Exchange for Individuals, Self-service Exchange Machines, and Advance Settlement of Foreign Exchange
1. Decree No. 6 [2003] of the Peoples Bank of ChinaInterim Measures for the Administration of Foreign Currency Exchange Agencies  Decree No. 6 [2003] of Peoples Bank of China
2. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling of the Remittance Business of Pre-settled Foreign Exchange for Individuals by Some Banks on a Trial Basis  Huifa No. 48 [2003]
3. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Improving Foreign Exchange Administration for Foreign Currency Exchange Agencies  Huifa No. 48 [2007]
4. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Improving the Individual Domestic and Foreign Currency Exchange Business  Huifa No. 24 [2008]
5. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Further Improving the Handling of the Remittance Business of Pre-settled Foreign Exchange for Individuals by Banks on a Trial Basis  Huifa No. 51 [2009]
6. Circular of the State Administration of Foreign Exchange on the Expansion of the Pilot Operation of Franchised Individual Domestic and Foreign Currency Exchange Businesses  Huifa No.54 [2009]
7. Operational Rules for Internal Examination and Approval of the Pilot Program for the Individual Domestic and Foreign Currency Exchange Businesses  Huizongfa No. 145 [2009]
8. Reply of the State Administration of Foreign Exchange on Conducting Currency Exchange Businesses in Shenzhen Municipality with Foreign Currency Exchange Machines  Huifu No. 264 [2009].
V. RMB Exchange Rate and Foreign Exchange Market (32 Items)
1. Exchange Rate
1. Announcement of the Peoples Bank of China on Improving Reform of the Mechanism for the RMB Exchange Rate Formation  Announcement No. 16 [2005] of the Peoples Bank of China
2. Circular of the State Administration of Foreign Exchange on Strengthening Statistics and Monitoring of Foreign Exchange Quotations and Positions in Foreign Exchange Settlement and Sales  Huifa No. 84 [2005]
3. Circular of the People's Bank of China on Relevant Issues Concerning Administration of the Trading Exchange Rate in the Inter-bank Foreign Exchange Market and the Exchange Rates Listed by Designated Foreign Exchange Banks  Yinfa No. 183 [2005]
4. Circular of the People's Bank of China on Further Improving Administration of the Trading Exchange Rates on the Inter-bank Foreign Exchange Market and the Exchange Rates Listed by Designated Foreign Exchange Banks  Yinfa No. 250 [2005]
5. Announcement of Issues Related to Further Perfecting the Inter-bank Spot Foreign Exchange Market and Improving the Mode for the Formation of the Mid-Rate of the RMB Exchange Rate  Announcement No. 1 [2006] of the Peoples Bank of China
6. Circular of the State Administration of Foreign Exchange on Issues Related to Further Improving Monitoring Exchange-based Costs for Exports  Huifa No. 12 [2006]
7. Announcement of the Peoples Bank of China on Expanding the Floating Range of the Trading Price of the RMB against the US Dollar on the Inter-bank Spot Foreign Exchange Market  Announcement No. 9 [2007] of the Peoples Bank of China
8. Reply of the State Administration of Foreign Exchange on Adjustment to the Program of Charges on the Foreign Exchange Market by the China Foreign Exchange Trade System  Huifu No. 107 [2007]
9. Reply of the State Administration of Foreign Exchange on Adjusting the Listed Spread of Spot Exchanges and Banknotes of the US Dollar against the RMB on Non-working Days  Huifu No. 440 [2007]
10. Interim Measures for the Administration of the Foreign Exchange Brokerage Business for Currency Brokerage Companies  Huifa No. 55 [2008]
11. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Putting the New System Online for the Monitoring of the Exchange-based Costs for Exports  Huifa No. 103 [2009]
2. Foreign Exchange Transaction Market
1. The Market Trading Rules of the China Foreign Exchange Trade System (Interim)   Zhonghuijiaofa No. 2 [1995]
2. Circular of the State Administration of Foreign Exchange on Strengthening Supervision of the Foreign Exchange Market and Regulating Office Procedures  Huiguohanzi No. 009 [1996]
3. Interim Provisions for the Administration of the Inter-bank Foreign Exchange Market  Yinfa No. 423 [1996]
4. Reply of the State Administration of Foreign Exchange on the Launching of EUR/RMB Trade on the Inter-bank Foreign Exchange Market by the China Foreign Exchange Trade System  Huifu No. 14 [2002]
5. Reply of the State Administration of Foreign Exchange on Approval of the Launching of Inter-bank Lending Intermediary Business in Foreign Currency by the China Foreign Exchange Trade System  Huifu No. 37 [2002]
6. Announcement of the Peoples Bank of China on Provision of Clearance Arrangements for Relevant Banks that Handle Individual Business for RMB Savings, Currency Exchange, Bank Cards, and Remittances in Hong Kong SAR  Announcement No. 16 [2003] of the Peoples Bank of China
7. Circular of the State Administration of Foreign Exchange on Carrying Out Bilateral Trade on the Inter-bank Foreign Exchange Market  Huifa No. 109 [2003]
8. Reply of the State Administration of Foreign Exchange on Carrying Out Inter-bank Foreign Currency Trading Business by the China Foreign Exchange Trade System  Huifu No. 115 [2004]
9. Guidelines for Market Makers on the Inter-Bank Foreign Exchange Market ( Interim)  Huifa No. 86 [2005]
10. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Launching of Spot Over-the-Counter Trading on the Inter-bank Foreign Exchange Market  Huifa No. 87 [2005]
11. Detailed Rules for Implementation of the Application for Membership on the Inter-bank Spot Foreign Exchange Market by Non-financial Enterprises and Non-bank Financial Institutions (Interim)  Huifa No. 94 [2005]
12. Circular of the Peoples Bank of China on Relevant Issues Concerning Accelerating the Development of the Foreign Exchange Market  Yinfa No. 202 [2005]
13. Reply of the State Administration of Foreign Exchange on the Release of the Master Agreements and Rules for RMB and Foreign Exchange Forward Trading by the China Foreign Exchange Trade System  Huifu No. 291 [2005]
14. Reply of the State Administration of Foreign Exchange on the Release of the Rules for RMB and Foreign Exchange Spot Trading by the China Foreign Exchange Trade System  Huifu No. 325 [2005]
15. Circular of the State Administration of Foreign Exchange on Relevant Issues Regarding Engagement in the Business of Won Listing and Exchange by Domestic Designated Foreign Exchange Banks  Huifa No. 45 [2006]
16. Circular of the State Administration of Foreign Exchange on Unifying the Time for Spot Bid-Offer Trading and Spot Over-the-Counter Trading on the Inter-bank Foreign Exchange Market  Huifa No. 50 [2006]
17. Reply of the State Administration of Foreign Exchange on Release of the Rules for RMB and Foreign Exchange Swap Trading by the China Foreign Exchange Trade System  Huifu No. 87 [2006]
18. Reply of the State Administration of Foreign Exchange on the Launching of GBP/RMB Trade on the Inter-bank Foreign Exchange Market by the China Foreign Exchange Trade System  Huifu No. 153 [2006]
19. Circular of the People's Bank of China on Relevant Issues Concerning the Launching of the RMB and Foreign Currency Swap Business on the Inter-bank Foreign Exchange Market  Yinfa No. 287 [2007]
20. Reply of the State Administration of Foreign Exchange on Release of the Rules for RMB and Foreign Currency Swap Trading by the China Foreign Exchange Trade System  Huifu No. 347 [2007]
21. Circular of the Peoples Bank of China and the State Administration of Foreign Exchange on Relevant Matters Regarding Suspension of the Foreign Currency Clearance Business  Yinfa No. 137 [2009]
VI. Balance of Payments and Foreign Exchange Statistics (35 items)
1. Statistics on the Balance of Payments
1. Measures for the Declaration of Balance-of-Payments Statistics (Decree No.2 [1995] by the Governor of the Peoples Bank of China)
2. Circular of the State Administration of Foreign Exchange on the Overall Use of the Organization Identification in Foreign Exchange Business  Huifa No. 24 [2002]
3. Detailed Rules for Implementation of the Measures for Declaration of Balance-of- Payments Statistics  Huifa No. 21 [2003]
4. Operational Rules for the Code Assignments of the Special Organization Codes in the Statistics and Declaration of the Balance of Payments  Huifa No. 131 [2003]
5. Circular of the Balance of Payments Department of the State Administration of Foreign Exchange on Clarifying Relevant Matters Concerning Code Assignments for the Special Organization Code in the Statistics and Declaration of the Balance of Payments    Huiguofa No. 5 [2004]
6. Circular of the State Administration of Foreign Exchange on Distributing the Regulations for the Administration of Relevant Vouchers of Domestic Banks for Foreign-related Receipts and Payments  Huifa No. 45 [2004]
7. Circular of the State Administration of Foreign Exchange on Regulating the Printing of Relevant Vouchers of Domestic Banks for Foreign-related Receipts and Payments  Huifa No. 65 [2004]
8. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Related to the Filing of the Relevant Vouchers by Domestic Banks for Foreign-related Receipts and Payments  Huizongfa No. 140 [2004]
9. Circular of the State Administration of Foreign Exchange on Printing and Distributing the Administration System of the State Administration of Foreign Exchange on the Inspection Certificates for the Declaration of the Balance of Payments  Huifa No. 20 [2010]
10. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Adjusting the Content of the Relevant Vouchers of Domestic Banks for Foreign-related Receipts and Payments  Huizongfa No. 50 [2010]
2. Indirect Declarations of the Balance-of-payments statistics
1. Announcement No. 3 [2002] of the State Administration of Foreign Exchange   Announcement No. 3 [2002] of the State Administration of Foreign Exchange
2. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Regarding Indirect Declarations of the Balance-of-payments statistics and the Writing-off of Banknote Settlements  Huizongfu No. 106 [2006]
3. Reply of the Balance of Payments Department of the State Administration of Foreign Exchange on Carrying Out the Reporting of the BOP Statistics by Foreign Institutions in China, International Organizations in China, Individual Diplomats, and Foreign Press Institutions in Beijing  Huiguofu No. 2 [2007]
4. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning the Declaration of the Balance-of-payments statistics for the Transformation of Foreign-funded Banks  Huizongfu No. 40 [2007]
5. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Indirect Declarations of the Balance of Payments  Huizongfu No. 41 [2007]
6. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Declaration of the BOP for the Overseas Wealth Management Business Provided by Commercial Banks on Behalf of Clients  Huizongfu No. 73 [2007]
7. Circular of the State Administration of Foreign Exchange Concerning Preparatory Work for Further Implementing Pilot Operations of the SAFE Sub-project of the Jinhong Project  Huifa No. 7 [2009]
8. Supplementary Circular of the General Affairs Department of the State Administration of Foreign Exchange Concerning Preparatory Work for Pilot Operations of the SAFE Sub-project of the Jinhong Project  Huizongfa No. 33 [2009]
9. Circular of General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Indirect Declarations of the Balance-of-payments statistics on Collections and Payments by Domestic Non-residents  Huizongfa No. 85 [2009]
10. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning the Declaration of Balance-of-payments statistics for RMB Settlement of Cross-border Trade  Huizongfa No. 90 [2009]
11. Circular of the State Administration of Foreign Exchange on Fully Using the Foreign Exchange Jinhong System  Huifa No. 7 [2010]
12. Operating Rules for the Declaration of the Balance-of-payments statistics through Financial Institutions  Huifa No. 22 [2010]
3. Declaration and Statistics of Overseas Assets and Liabilities and Profits and Losses by Financial Institutions
1. Operational Rules for Reporting Overseas Assets and Liabilities, and Profits and Losses of Financial Institutions  Huiguofazi No. 13 [1996]
2. Circular of the State Administration of Foreign Exchange on Issues Concerning the Declaration of Overseas Assets and Liabilities as well as Profits and Losses by Financial Institutions  Huiguohanzi No. 075 [1997]
3. Circular of the State Administration of Foreign Exchange on Popularizing the Use of the Software for Statistics and the Declaration of Overseas Assets and Liabilities and Profits and Losses as well as Foreign Currency Exchange by Financial Institutions  Huifa No. 246 [1999]
4. Circular of the State Administration of Foreign Exchange on Clarifying the Specific Requirements for Popularizing the Use of the Computer Software for the Declaration of Overseas Assets and Liabilities and Profits and Losses by Financial Institutions  Huiguohan No. 31 [1999]
5. Circular of the Peoples Bank of China on Relevant Issues Concerning the Submission of External Liability Data by Domestic Foreign-funded Financial Institutions  Yinfa No. 244 [2001]
6. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Declaration of Overseas Assets and Liabilities as well as the Profits and Losses by Financial Institutions  Huizongfa No. 112 [2005]
7. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Supplementary Declaration of Direct Investment Data by Domestic Financial Institutions  Huizongfa No. 24 [2008]
8. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Reporting the RMB Account Data of Non-residents by Domestic Banks  Huizongfa No. 51 [2008]
9. Circular of the State Administration of Foreign Exchange on the Submission of the Statistical Statement on Foreign Exchange Assets and Liabilities by Chinese-Funded Financial Institutions  Huifa No. 6 [2009]
10. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Pilot Program and the On-line Operation of the Statistical Software for the Foreign Exchange Assets and Liabilities of Chinese-funded Financial Institutions  Huizongfa No. 2 [2010]
4. Statistical Declaration for Exchange Business
Circular of the General Affairs Department of the State Administration of Foreign Exchange on Ceasing the Submission of the Statistical Declaration Form for Exchange Business  Huizongfa No. 54 [2010]
5. The System of Sample Surveys
1. Circular of the State Administration of Foreign Exchange on Printing and Distributing the Investigation System for Trade Credits and the Implementation Plan for Trade Credit Investigations  Huifa No. 67 [2004]
2. Circular of General Affairs Department of the State Administration of Foreign Exchange on Adjustments to the Sampling Survey Report for Trade Credits and to the Use of the Trade Credit Sampling Survey System for Data Submission  Huizongfa No. 12 [2009]
VII. Administration of Specific Economic Zones
1. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of Bonded Warehouses  Huifa No. 97 [1998]
2. Measures of Foreign Exchange Administration of the Shanghai Diamond Exchange
3. Reply of the State Administration of Foreign Exchange on the Interim Measures for Foreign Exchange Administration of the Shanghai Diamond Exchange  Huifu No. 316 [2000]
4. Reply of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of the Shanghai Diamond Exchange  Huifu No. 261 [2002]
5. Examination and Approval Standards and Procedures for the Establishment of Export Processing Zones  Shujiafa No. 102 [2004]
6. Reply of the State Administration of Foreign Exchange on Promoting a Pilot Reform of the Foreign Exchange Administration of Transnational Corporations in the Pudong New Area  Huifu No. 300 [2005]
7. Measures for Foreign Exchange Administration in the Bonded Areas under Supervision by the Customs  Huifa No. 52 [2007]
8. Operating Rules of the Measures for Foreign Exchange Administration in the Bonded Supervisory Areas  Huizongfa No. 166 [2007]
VIII. Foreign Exchange Inspections and Application of the Laws and Regulations (29 items)
1. Procedures for Case Investigations
1. Circular of the State Administration of Foreign Exchange on Distributing the List of Units Having Foreign Exchange Inspections and the Power of the State to Impose Penalties in the Administration of the Foreign Exchange System  Huiguanhanzi No. 261[1997]
2. Circular of the State Administration of Foreign Exchange on Implementing the Measures for the Administration of the Collection of Penalties and Payments for Others  Huifa No. 54 [1999]
3. Trial Measures for Awards for Reporting Cases of Acts in Violation of the Foreign Exchange Administration Rules  Huifa No. 1 [2000]
4. Circular of the State Administration of Foreign Exchange on Distributing the Reporting System of the SAFE on Foreign Exchange Inspections, the Measures of the SAFE for Internal Supervision of Foreign Exchange Inspections, and the Measures of the SAFE for the Assessment of Foreign Exchange Inspections  Huifa No. 196 [2001]
5. Procedures of the State Administration of Foreign Exchange for Administrative Penalty Hearings  Huifa No. 79 [2002]
6. Procedures of the State Administration of Foreign Exchange for Administrative Reconsideration  Huifa No. 80 [2002]
7. Measures of the State Administration of Foreign Exchange for Administration of Law Enforcement Certificates  Huifa No. 86 [2002]
8. Procedures for Investigating Cases of Acts in Violation of the Foreign Exchange Administration  Huifa No. 50 [2008]
9. Circular of the General Affairs Department of the State Administration of Foreign Exchange Concerning Relevant Issues on Using the New Foreign Exchange Inspection Certificates  Huizongfa No. 18 [2009]
10. Working System for the Collective Review of the Investigation and Punishment of Foreign Exchange Cases (Interim)  Huizongfa No. 120 [2009]
11. Reporting System on Foreign Exchange Inspections (Interim)  Huizongfa No. 122 [2009]
12. Archives Management System for Foreign Exchange Inspections (Interim)   Huizongfa No. 137 [2009]
13. Circular of the State Administration of Foreign Exchange on Revising the Administrative Enforcement Documents on Foreign Exchange Inspections  Huifa No. 17 [2010]
2. Legal Basis
1. Provisions on Disciplinary Sanctions to Financial Institutions and Relevant Persons in Charge in Violation of the Administrative Rules for Sales and Payments of Foreign Exchange  Yinfa No. 331 [1998]
2. Circular of the State Administration of Foreign Exchange on Forwarding the Interim Provisions on Implementing Administrative or Disciplinary Sanctions for Fraudulent Purchases, Illegal Purchases, Evasion, and Illegal Trading of Foreign Exchange and Other Acts in Violation of the Rules on Foreign Exchange Administration  Huifa No. 102 [1999]
3. Provisional Measures for Dealing with the Failure to Verify and Cancel the Collection and Payment of Foreign Exchange for Imports and Exports in Due Time  Huifa No. 40 [2003]
4. Circular of the State Administration of Foreign Exchange on the Applicability of the Laws and Regulations for Investigating Cases of Acts in Violation of the Foreign Exchange Administration Rules after the Revision of the Regulations of the People's Republic of China on Foreign Exchange Administration  Huifa No. 41 [2008]
5. Circular of the State Administration of Foreign Exchange on Issues Regarding the Content and Meaning of Certain Provisions and the Application Principles in Chapter VII: Legal Responsibilities in the Regulations of the People's Republic of China on Foreign Exchange Administration  Huifa No. 59 [2008]
3. Others
1. Circular of the State Administration of Foreign Exchange on Opinions for Punishment of Financial Institutions Engaging in Illegal Foreign Exchange Futures Transactions  Huiyehanzi No. 121 [1993]
2. Circular of China Securities Regulatory Commission, the State Administration of Foreign Exchange, the State Administration for Industry and Commerce, and the Ministry of Public Security on Sternly Investigating and Punishing Illegal Foreign Exchange Futures Transactions and Foreign Exchange Margin Trading Activities  Zhengjianfazi No. 165 [1994]
3. Circular of China Securities Regulatory Commission on Printing and Distributing the Minutes of the Conference on Implementing the Circular of the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the State Administration for Industry and Commerce, and the Ministry of Public Security on Sternly Investigating and Punishing Illegal Foreign Exchange Futures Transactions and Foreign Exchange Margin Trading Activities  Zhengjianfazi No. 196 [1994]
4. Circular of the State Administration of Foreign Exchange on Prohibiting Financial Institutions from Conducting Overseas Derivative Instrument Transactions without Authorization
5. Circular of the State Administration of Foreign Exchange on Investigating and Punishing Illegal Foreign Exchange Futures (Margin) Trading Activities  Huiguanhanzi No. 191 [1995]
6. Circular of the State Administration of Foreign Exchange on Prohibiting Pricing and Settlement in Foreign Currency within the Territory of China without Authorization and Prohibiting the Release of Advertisements Containing Information on the Pricing and Settlement in Foreign Currency  Huiguanhanzi No. 177 [1996]
7. Circular on Prohibiting Foreign Exchange Borrowing and Lending Among Non-financial Enterprises  Huizihanzi No.305 [1996]
8. Circular of the State Administration of Foreign Exchange on Imposing Severe Punishments on Illegal Foreign Exchange Trading Activities  Huifa No. 155 [2001]
9. Reply of the General Affairs Department of the State Administration of Foreign Exchange on Identifying Relevant Issues Concerning Illegal On-line Foreign Exchange Speculation  Huizongfu No. 56 [2008]
10. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Punishment for Acts in Violation of the Administration of Foreign Exchange under Trade in Goods  Huifa No. 34 [2008]
11. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Administrative Penalties for Unregistered Deferred Payments of Foreign Exchange  Huizongfa No. 170 [2008]
IX. Scientific Administration of Foreign Exchange
1. Detailed Rules of the State Administration of Foreign Exchange on Implementation of Management of Standardization of the Information System Codes (Interim)  Huizongfa No. 82 [2009]
2. Measures of the State Administration of Foreign Exchange for the Management of Standardization of the Information System Codes (Interim)  Huizongfa No. 162 [2008]
3. Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Standardization of the Information System Codes  Huizongfa No. 101 [2009]

 

 

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Circular of the SAFE on Relevant Issues Concerning Foreign Exchange Administration of Overseas Direct Investments by Domestic Banks

Date:2010-06-30

 

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks:

For the purpose of regulating the foreign exchange-related business involved in overseas direct investments by domestic banks, the following issues concerning the foreign exchange administration of overseas direct investments by domestic banks are hereby announced, according to the Regulations of the People's Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council of the Peoples Republic of China) and the Circular of the SAFE on the Promulgation of the Regulations on the Foreign Exchange Administration of Overseas Direct Investments by Domestic Institutions (Huifa [2009] No. 30):


1.  Domestic banks contained herein refer to legal-person banks, such as domestic policy banks, state-owned commercial banks, joint-stock commercial banks, the Postal Savings Bank of China , foreign legal-person banks, city commercial banks, rural commercial banks, and rural cooperative banks.


2. When making overseas direct investments in the event of (1) the establishment of overseas branches (except for representative offices); (2) the establishment of overseas affiliates; (3) equity acquisitions of overseas institutions in line with the relevant laws; and (4) other direct investment projects approved by the relevant authorities, the domestic banks concerned shall, after receiving approval from the banking regulatory departments or other relevant authorities, go through the foreign exchange registration formalities for overseas direct investments at the branches of SAFE in their locality (hereinafter referred to as the local SAFE offices) with the materials required in Article 7 of the Regulations on the Foreign Exchange Administration of Overseas Direct Investments by Domestic Institutions (hereinafter referred to as the Regulations).

For transactions concerning Item (1) above, the domestic banks shall furnish the corresponding operating capital allocation plans that have been submitted to the banking regulatory departments.


3. The domestic banks shall fill out the Application Form for Foreign Exchange Registration for Overseas Direct Investments (hereinafter referred to as the Application Form) annexed to the Regulations according to the following:

1) Fill in the Investment Nature item according to the business scope of the invested institutions. When the invested institutions are financial institutions, fill in Otherand specify the specific financial category (banking, insurance, securities, or other) as a note.


2) When the overseas investments are made with self-owned or purchased foreign exchange (including remittances from domestic and overseas accounts), for the Means of Contribution item, Amount and Currency of Contribution in Domestic Spot Exchange shall be selected; When such investments are made with profits and dividends generated from other overseas institutions in which the domestic banks have invested, for the Means of Contribution item, Converted Amount and Currency of Contribution in Overseas Fundsshall be selected.


3) When the payment is made directly with foreign exchange (including remittances from domestic and overseas accounts), under the Source of Foreign Exchange item Domestic Outward Remittance shall be selected.  If no foreign exchange purchases are involved, Self-owned Foreign Exchange shall be selected; If foreign exchange purchases are involved, Foreign Exchange Purchase shall be selected


4. The local SAFE offices shall, upon confirmation of the authenticity of the relevant materials and information, handle the foreign exchange registration for the overseas direct investments by domestic banks in the relevant business system and issue a corresponding registration certificate for the domestic banks that are handling such registration for the first time.


5. In the event of outward remittances of foreign exchange for overseas direct investments, domestic banks may, as per the foreign exchange registration certificate for overseas direct investments that contains relevant information thereof, go through the formalities for foreign exchange purchases or payments through the relevant business system.


The domestic banks shall, after conclusion of the formalities for foreign exchange purchases and payments, handle the feedback formalities within THREE working days through the relevant business system as per the relevant regulations.

6. The domestic banks shall, as per the first two provisions of Article 9 as well as Article 10 of the Regulations, handle the foreign exchange registration, alteration, or cancellation formalities for overseas direct investments at the local SAFE offices for changes in issues relevant to overseas direct investments that have already been conducted. For issues important but irrelevant to capital changes, such as the long-term equity investment incurred in the registered overseas institutions, the domestic banks shall place such issues on file for the record for future reference at the local SAFE offices.


7. Domestic banks may conduct outward remittances of preliminary expenses for overseas direct investments with self-owned foreign exchange or with direct foreign exchange purchases. Domestic banks without approval for such investments by the banking regulatory departments or other relevant authorities shall recall the residual capital within ONE year after the date of the outward remittance of the preliminary expenses. When the capital remitted outward is foreign exchange purchased in RMB, the domestic banks may conduct the foreign exchange settlement on their own with the original voucher for the foreign exchange purchase.


8. Profits generated from overseas direct investments by domestic banks shall not undergo separate foreign exchange settlements, but will be included in the foreign exchange profits of the banks for uniform administration, and corresponding foreign exchange settlements shall be carried as per the relevant regulations.


9. For foreign exchange earnings under the capital account generated from capital reductions, equity transfers and liquidations, and so forth from investments in overseas institutions by domestic banks, as well as foreign exchange receipts and payments as stated in Article 7 and 8 contained herein, the domestic banks shall provide feedback on the transaction through the relevant business system within THREE working days after the date of the foreign exchange receipt and payment.


10. In the event of settlements of foreign exchange earnings under the capital account generated from capital reductions, equity transfers and liquidation, and so forth from investments in overseas institutions, the domestic banks shall, on the basis of their own capital as well as the relevant regulations on foreign exchange settlements and sales of financial projects, conduct such settlements upon approval from the SAFE or the local SAFE branches (including the foreign exchange administrative departments). Domestic banks shall also provide feedback on the transaction through the relevant business system within THREE working days after the date of settlement.

 11. When domestic banks transfer full or partial equity of overseas institutions acquired from their overseas direct investments to other domestic institutions, the relevant funds shall be paid in RMB within the territory of China .  The transferors of such equity shall handle the alteration or cancellation formalities for the foreign exchange registration of their overseas direct investments at their local SAFE offices. The transferees of such equity shall handle the foreign exchange registration formalities for the overseas direct investment of the transferred equity at their local SAFE offices.


12. In the event of overseas direct investments conducted prior to promulgation of this Circular, domestic banks shall, as per Article 2 contained herein, handle the foreign exchange registration for overseas direct investment at the local SAFE offices by October 31, 2010.  In the event of failure to furnish the relevant approval documents by the relevant authorities for historical reasons, the domestic banks shall submit to the local SAFE offices a completed Application Form with information on each investment as well as a summary list of information on all investments, and the local SAFE offices shall enter such information on the registration.


When domestic banks fail to handle the above registration formalities within the prescribed period or according to the prescribed procedures, the local SAFE offices shall impose penalties for breach of the relevant regulations on administration of foreign exchange registration.


13. This Circular shall enter into force as of September 1, 2010. As for matters of foreign exchange administration concerning overseas direct investments by domestic banks not clarified in this Circular, the domestic banks shall handle such business with reference to the Regulations.

All SAFE branches and foreign exchange administrative departments shall, upon receipt of this Circular, immediately forward it to the subordinate branches, foreign legal-person banks, city commercial banks, rural commercial banks, and rural cooperative banks within their respective jurisdictions;

 

June 30, 2010

 

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Circular of the SAFE on Adjusting Approval Authority for Certain Foreign Exchange Businesses Under the Capital Account

Date:2010-06-29

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government; the SAFE branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks:

 

In order to streamline administrative procedures and processes and promote facilitation of trade and investment, the SAFE hereby has decided to make adjustments to the approval authority for certain foreign exchange businesses under the capital account in accordance with the Administrative Licensing Law of the PRC and the Regulations on Foreign Exchange Administration of the PRC. The relevant issues are as follows:

 

1. Businesses for which the approval authority is delegated by the SAFE to the branches

 

1) For cases where domestic enterprises extend overseas loans in excess of the prescribed ratios or amounts, the branch or foreign exchange administrative department of the SAFE in the place where the enterprise is located (hereinafter referred to as the branch) shall handle such cases in line with the opinions proposed at the collective review conference.  Meanwhile, the relevant replies thereof shall be forwarded to the Capital Account Management Department of the SAFE.

 

2) For cases that are in accordance with the administrative principles for capital accounts as stipulated in the existing laws and regulations, but are not specifically regulated in the relevant documents or business-operating instructions, the local branches shall handle such cases in line with the opinions proposed at the collective review conference.  Meanwhile, the relevant replies thereof shall be forwarded to the Capital Account Management Department of the SAFE.

 

3) For verification of the balance quotas for the short-term external debt of domestic Chinese-funded enterprises, the local branches shall conduct such verifications within the range of the balance quota for the short-term external debt in the region according to the principles for such verifications as specified by the SAFE for the current year.

 

2. Businesses for which approval authority is delegated from the branches to the central sub-branches (sub-branches)

 

The branches may, according to the specific situations in their respective jurisdictions, delegate authority for the following businesses to the corresponding central sub-branches (sub-branches) in their jurisdictions:

 

1) Verifications of fund transfers and opening, alterations and cancellations of special guaranty foreign exchange accounts for bidding for land-use rights by foreign investors;

 

2) Verifications of fund transfers/FX settlement and opening, alterations and cancellations of special foreign exchange accounts for foreign exchange funds (including the agreed upon price and transaction guarantee monies) under custody and settlement for equity transactions by foreign investors;

 

3) Examination and approval of payments in foreign exchange or entry of inward remittances of funds for overseas lending by domestic enterprises.

 

4) Examination and approval for recalling and settlement of funds for participation in employee stock ownership plans or employee stock options of overseas listed companies by domestic individuals.

 

3. Businesses that can be handled directly by designated foreign exchange banks

 

1) The examination and approval for foreign exchange purchases/payments made with the foreign investors profits from non-bank financial institutions in which the foreign investors (excluding insurance companies, and similarly hereinafter) hold shares shall be handled by the designated foreign exchange banks. Non-bank financial institutions in which foreign investors hold shares shall, within 5 working days following the date of the outward remittance of profits, file such transactions for the record with the bank receipt for foreign exchange purchases/payments at the SAFE branches/sub-branches.

 

2) The examination and approval of outward remittances of overseas IPO expenses from China by overseas listed foreign-invested companies shall be handled by the designated foreign exchange banks. Overseas listed foreign-invested companies shall, within 5 working days following the date of the outward remittance of the said expenses, file for the record the relevant data at the local SAFE branches/sub-branches.

 

4. Simplification of the materials required for business examination and approval

 

Submission of the RMB Account Statement for the Latest 5 Working Days is no longer required when an enterprise handles business related to foreign exchange purchases under the capital account.

 

Upon adjustment by the authority for the foresaid examinations and approvals, the SAFE branches and designated foreign exchange banks shall improve their internal control systems, reinforce employee training, strictly abide by the documents and operating instructions for the administration of foreign exchange businesses under the capital account, and fulfill the reporting procedures in line with the relevant regulations. (For the Operating Instructions for Designated Foreign Exchange Banks for Handling the Relevant Businesses, see the annex). The branches/sub-branches shall strengthen subsequent supervision and examination over the relevant issues thereof, and shall also further enhance the statistics and monitoring thereof.  If any major circumstances or policy-related problems are encountered, please provide feedback to the SAFE in a timely manner.

 

Upon receipt of this Circular, the SAFE branches and foreign exchange administrative departments shall forward it to the central sub-branches (sub-branches) and foreign-funded banks within their respective jurisdictions, and the Chinese-funded designated foreign exchange banks shall promptly forward it to the branches/sub-branches within their respective jurisdictions.

 

The Circular will come into effect as of July 1, 2010.  In case of any problems encountered during implementation, please send feedback to the Capital Account Management Department of the SAFE in a timely manner. Tel: 010-68402273.

 

Annex: Operating Instructions for Designated Foreign Exchange Banks for Handling the Relevant Businesses

 

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Circular of the State Administration of Foreign Exchange on Printing and Distributing the Operating Rules for the Declaration of Balance of Payments Statistics via Financial Institutions

Date:2010-06-08

 

 

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the designated national foreign exchange banks:

 

In response to developments and changes in foreign-related collections and payments and for the purpose of improving the declaration of balance of payments statistics by the declaring entities via domestic financial institutions, the SAFE has revised the Operating Rules on the Declaration of Balance of Payments Statistics via Financial Institutions (see annex), which have now been printed and distributed. All branches and foreign exchange administrative departments of the SAFE shall, upon receipt of this Circular, transmit it in a timely fashion to the sub-branches and banks under their respective jurisdictions for compliance.

 

 

                               May 25, 2010


affix1:
Operating Rules for the Declaration of Balance of Payments Statistics through Financial Institutions

 

 

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Circular of the SAFE on Relevant Issues Concerning the Release of the Quota for the Short-term External Debt Balance in 2010

Date:2010-04-29

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the central government, and the SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:
In order to maintain an equilibrium in the balance of payments and to guard against risks caused by abnormal inflows of cross-border funds, the State Administration of Foreign Exchange (SAFE) has decided to moderately reduce the total scale of the quota for the short-term external debt balance of domestic institutions in 2010. A quota of a total of USD32.4 billion has been ratified for the short-term external debt balance of domestic institutions, representing a decrease of 1.5 percent from the 2009 level. Meanwhile, in order to optimize the structure of the quota distribution and increase efficiency of the use of the quota, the SAFE has adjusted downward the quotas for the Chinese- and foreign-funded financial institutions that have track records of large quotas but poor efficiency in utilization. However, appropriate preferential policies will be provided to joint-equity banks and local commercial banks with rapid growth in their trade financing businesses during recent years. Relevant information about ratification of the quotas for the short-term external debt balance of domestic institutions (hereinafter referred to as quotas) for 2010 (April 1, 2010 to March 31, 2011, as below) and the relevant policies are hereby notified as follows:
1. A quota of a total of USD9.938 billion for some Chinese-funded banks for 2010 has been ratified (see Table 1 in the Appendix). 
A quota of a total of USD14.54935 billion for 2010 has been ratified for some legal-person foreign-funded banks and branches of foreign-funded banks that implement centralized administration of their quotas (see Table 2 in the Appendix).
Local quotas of a total of USD7.904 billion have been ratified for Chinese- and foreign-funded legal-person banks, branches of foreign-funded banks that have not implemented centralized administration of quotas, and Chinese-funded enterprises and other relevant institutions within the jurisdiction of the SAFE branches and foreign exchange administration departments (hereinafter referred to branches) (see Table 3 in the Appendix)
For domestic institutions with quotas that have been adjusted downward, if on the date of reduction of the quota, their short-term external debt balance subject to quota control already exceeds the newly-ratified quota, they shall, within 3 months, bring down the short-term external debt balance subject to the actual quota control within the scope of the newly-ratified quota.
2. All branches shall distribute and regulate quotas in a fair and reasonable manner and increase efficiency in the use of quotas based on the status of the utilization of the quotas and the structure of the utilization of the sources of the funds in a bid to serve the needs of economic growth, to bolster trade financing, to guard against external financial risks, and to promote an equilibrium in the balance of payments.
All branches shall guide and encourage domestic institutions to expand their trade financing businesses and to promote the healthy development of the real economy and foreign trade. In the 2010 distribution of the quotas the branches shall give priority to banks with larger amounts of trade settlement in a bid to ensure that the quotas are used preferentially to support the trade financing of the import and export businesses of domestic enterprises.
3. Domestic institutions shall borrow, use, and repay their external debts in strict compliance with the provisions in the Interim Regulations on Statistics and Monitoring of the External Debt, the Interim Measures for External Debt Administration, and other regulations for external debt administration and shall register the external debt in the external debt statistics and monitoring system.
4. Policies concerning the borrowing of short-term external debt by Chinese-funded enterprises:
(1) After ratification of the quotas, a branch can distribute part of the local quotas for 2010 as balances to Chinese-funded enterprises within its jurisdiction that have lived up to the relevant standards.
(2) Quotas distributed to Chinese-funded enterprises after ratification shall only be used for the borrowing of short-term external debt with a contract term not longer than one year (inclusive). The balance of the outstanding principal of the short-term external debt of Chinese-funded enterprises which is subject to quota administration shall not exceed the scale of the ratified quota. The branches can regulate and utilize the quotas among financial institutions and Chinese-funded enterprises based on the quota utilization situation of the institutions within their jurisdiction.
(3) Ratified quotas of Chinese-funded enterprises shall be given to industries that are encouraged or permitted by national industrial policies and that have sound financial statuses and strong solvency. 
(4) The short-term external debt borrowed by Chinese-funded enterprises shall not be used for foreign exchange settlement.
(5) Chinese-funded enterprises shall borrow the short-term external debt in strict compliance with the relevant regulations for the administration of the short-term external debt currently in effect and shall conduct external debt registration on a deal-by-deal basis; the opening of a special account for the external debt and the repayment of the capital and the interest by the Chinese-funded enterprises shall be examined and approved by the SAFE.
5. Branches shall conduct monitoring of the balance and changes in the short-term external debt of financial institutions and Chinese-funded enterprises within their jurisdiction via the external debt statistics and monitoring system, carry out strict control over implementation of the quota for the short-term external debt balance of financial institutions and Chinese-funded enterprises within their jurisdictions, and submit the Form for Implementation of Quotas for the Short-term External Debt Balance of Institutions within Jurisdiction XXX at the end of X Quarter of XXXX (Table 4 in the Appendix) to the of Capital Account Management Department of the SAFE within the last 15 working days of each quarter via the email address on the SAFEs portal Web site (
debt@capital.safe).

Appendix: (Omitted)

                                                                                                                    April 21, 2010

 

 

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Circular of the General Affairs Department of the SAFE on Relevant Issues Concerning Administration of Foreign Exchange Purchases by Overseas Individuals during the 2010 World Expo in Shanghai

Date:2010-04-29

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks:
In order to facilitate foreign exchange purchases by overseas individuals during the 2010 World Expo in Shanghai and to deliver high-quality financial services during the Expo, the SAFE has decided to implement a policy of an aggregate amount for foreign exchange purchases by overseas individuals during the 2010 World Expo in Shanghai. The relevant issues are hereby notified as follows:
1. From May 1 to October 31, 2010 (hereinafter referred to as During the 2010 World Expo in Shanghai), foreign exchange purchases by overseas individuals at designated foreign exchange banks (hereinafter referred as banks) shall be conducted in accordance with the following regulations:
(1) During the 2010 World Expo in Shanghai, administration of an aggregate amount of foreign exchange purchases by individuals shall be implemented and the aggregate amount of foreign exchange purchases shall be equivalent to USD50,000.
In order to ensure continuity of the data and completeness of the management information system for foreign exchange settlement and sales by individuals, the foreign exchange purchase business conducted by overseas individuals via the management information system for foreign exchange settlement and sales by individuals during the period from January 1 to April 30, 2010 shall be incorporated into a lump sum of the aggregate amount that is equivalent to USD50,000 based on the strength of the prescribed evidentiary materials.
(2) Foreign exchange purchases by overseas individuals of an aggregate amount equivalent to USD50,000 (inclusive) shall be carried out at the banks by the individuals themselves based on the strength of their valid identity documents.
(3) Foreign exchange purchases with legitimate income in RMB under the current account acquired within the territory of China by overseas individuals for the aggregate amount which is more than the equivalent of USD50,000 shall be conducted on the strength of their valid identity documents and relevant evidentiary materials attesting to the amount of the business transaction (including tax vouchers). Re-conversion of the RMB that has not been used after the initial conversion into foreign exchange shall be conducted based on the strength of the valid identity documents of the relevant individuals and original exchange memos.
2. The banks shall inquire about the aggregate amount of foreign exchange purchases by overseas individuals within the prescribed quota in a real-time manner via the management information system for foreign exchange settlement and sales by individuals, and shall record the information about foreign exchange purchases under the current account by overseas individuals on a deal-by-deal basis under the items of Foreign exchange purchases with income of overseas individuals under the current account and Re-conversion to the original currency by overseas individuals in the module of the Foreign exchange purchase transactions of the management information system for foreign exchange settlement and sales by individuals; the three-digit alphabetic country code and passport number shall be input under the item No. of identity document; the timeliness, accuracy, and completeness of the input of the data shall be ensured.
3. Banks and overseas individuals shall not evade supervision of the quota by splitting the foreign exchange into smaller amounts nor shall they evade administration of the authenticity by use of fake commercial documents or vouchers for the handling of their foreign exchange purchase business and currency re-conversion business.
4. When handling foreign exchange purchase business and currency re-conversion business, banks and overseas individuals, unless stipulated in this Circular, shall comply with the Measures for the Administration of Individual Foreign Exchange (Decree of PBOC [2006] No.3), the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (Huifa [2007] No.1), the Circular of the SAFE on Further Improvements in the Administration of Foreign Exchange Settlement and Sales Business by Individuals (Huifa [2009] No.56), and the relevant foreign exchange administration regulations.
5. Beginning on November 1, 2010, implementation of the policy on the administration of an aggregate amount of foreign exchange purchases by overseas individuals during the 2010 World Expo in Shanghai shall be terminated; the banks shall resume handling the foreign exchange purchase business for overseas individuals in accordance with the Measures for the Administration of Individual Foreign Exchange, the detailed rules, and other relevant foreign exchange administration regulations currently in effect.
6. Banks that handle foreign exchange purchase businesses for overseas individuals in breach of the provisions stipulated in this Circular or the relevant foreign exchange administration regulations shall be punished by the SAFE and its branches in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration (Decree of the State Council of PRC, No. 532, August 5, 2008).
7. This Circular is subject to interpretation by the SAFE.
The SAFE branches and foreign exchange administration departments shall transmit this Circular to the sub-branches, municipal commercial banks, rural commercial banks, and foreign-funded banks within their jurisdictions immediately upon receipt; the designated Chinese-funded foreign exchange banks shall transmit this Circular to their branch institutions as soon as possible upon receipt. For any problems arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner.

                                                                                                                           April 23, 2010

 

 

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Circular of the State Administration of Foreign Exchange on the Repeal and Invalidation of Twenty-four Regulatory Documents on Foreign Exchange Administration

Date:2010-04-23

 

 

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, and the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

 

To further improve the regulatory system of foreign exchange administration, we hereby notify you regarding the repeal and invalidation of the following regulatory documents on foreign exchange administration:

 

I. Fifteen regulatory documents of which the main content has been replaced by new content and do not conform to the present actualities in the administration shall be repealed (see Annex 1 for the Checklist).

 

II. Nine regulatory documents that have been invalidated due to either the expiration of the period of application or to the elimination of the objects of regulation (see Annex 2 for the Checklist).

 

This Circular shall come into force as of the date of promulgation.

 

April 13, 2010

 

 

Annex 1: Checklist of Fifteen Regulatory Documents on Foreign Exchange Administration Repealed by the State Administration of Foreign Exchange

 

SN

Title of Law, Regulation, or Document

Document No.

1

Reply on Several Issues Concerning the Interim Provisions for the Statistics and Monitoring of External Debts

Huiguanzhaizi No. 713 [1987]

2

Circular on the Relevant Issues Concerning the Issuance of Foreign Exchange Settlement Vouchers/ Acknowledgement Receipts by Banks

Huiguanhanzi No. 284 [1993]

3

Circular on the Relevant Issues on Completing and Reporting the Revenue and Expenditure Statistical Tables of Foreign Exchange Accounts

Huichuan No. 03 [1998]

4

Circular of the State Administration of Foreign Exchange on Earnestly Implementing the Off-site Supervisory System for the Foreign Exchange Business of Financial Institutions

Huiguanhanzi No. 004 [1998]

5

Circular on Improving the Administration of Sales and Payments of Foreign Exchange

Huihan No. 27 [1998]

6

Reply on the Relevant Issues Concerning the Additional Launching of International Express Payment Services

Huifu No. 44 [1999]

7

Reply on the Relevant Issues Concerning Foreign Exchange Administration Regarding the Transfer of the Development Fund and the Reserve Fund to Increase the Registered Capital by Foreign-funded Enterprises

Huifu No. 203 [2000]

8

Circular of the State Administration of Foreign Exchange on Determining the Period for Implementation of the Supplementary Circular on Strengthening the Administration of Contracts Introducing Technology and Foreign Exchange Sales and Payments

Huifa No. 90 [2001]

9

Reply of the State Administration of Foreign Exchange on the Relevant Issues on Delegating the Quotas for Short-term External Debts to Branches by Chinese-funded Designated Foreign Exchange Banks

Huifu No. 64 [2001]

10

Circular of the State Administration of Foreign Exchange on the Relevant Issues Concerning Foreign Exchange External Payments of Maritime Freightage and Relevant Charges

Promulgated and came into force on August 15, 2001

11

Reply of the State Administration of Foreign Exchange on the Relevant Issues Concerning Foreign Exchange Registration for the Purchase of Domestic Land-use Rights by Foreign Investors

Huifu No. 156 [2002]

12

Circular of the State Administration of Foreign Exchange on the Relevant Issues Concerning the Abolition of the Administrative Examination and Approval Items for Foreign Exchange Administration under the Current Account

Huifa No. 53 [2003]

13

Reply of the State Administration of Foreign Exchange on Issues Concerning the Entrusted Banks of the Domestic Foreign Exchange Entrusted Loans among the Internal Members of Multinational Companies

Huifu No. 107 [2005]

14

Reply of the State Administration of Foreign Exchange on Retaining Foreign Exchange Proceeds Earned from the Transfer of Shares by Domestic Institutions and Individuals

Huifu No. 239 [2007]

15

Reply of the General Affairs Department of the State Administration of Foreign Exchange on the Applicability of Laws and Regulations Concerning the Enterprises Handling of the Registration Formalities for  Deferred Payments for the Second Time of Foreign Exchange

Huizongfu No. 2 [2008]

 

 

Annex 2: Checklist of Nine Regulatory Documents on Foreign Exchange Administration Invalidated upon Announcement by the State Administration of Foreign Exchange

 

SN

Title of Law, Regulation or Document

Document No.

1

Circular on the Relevant Issues Concerning the Transitional Period of the Reform of the Foreign Exchange Administration System

Huichuan No. 5 [1994]

2

Circular on Adjusting the Debt Structure and Reducing the Interest Rate for External Debts

Huizihanzi No. 121 [1995]

3

Circular on Printing and Distributing the Foreign Exchange Inspection Workflow

Huibanhanzi No. 211 [1998]

4

Circular on Ceasing the Handling of International Settlement Business in RMB by Your Bank

Huifa No. 51 [1998]

5

Circular on the Issuance of the Plan on the Punishments for Violations of Regulations by Travel Agencies and the Plan on the Punishments for Violations of Regulations on Reporting the Loss of the Verification and Writing-off Forms

Huifu No. 347 [2000]

6

Circular on Preventing Some Overseas Financial Institutions from Selling Counterfeit Securities in the Name of the World Bank

Huizongfa No. 12 [2000]

7

Urgent Circular of the State Administration of Foreign Exchange on Doing a Good Job at Present in the Verification and Writing-off of Export Proceeds in Foreign Exchange

Huifa No. 182 [2001]

8

Reply of the State Administration of Foreign Exchange on Authorizing its Shanghai Branch to Improve Foreign Exchange Administration of Foreign Exchange Loans of Foreign-funded Financial Institutions in Shanghai

Huifu No. 293 [2003]

9

Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Verification and Writing-off of the Collection of Export Proceeds in Foreign Exchange (2004)

Huizongfa No. 26 [2004]

 

 

 

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Circular of the General Affairs Department of the SAFE on Issues Concerning Foreign Exchange Administration for Earthquake Relief

Date:2010-04-20

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) 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 and the China Foreign Exchange Trade System:

 

In the early morning of April 14, 2010, a severe earthquake hit Yushu county in Yushu Tibetan Autonomous prefecture of Qinghai province, which resulted in heavy casualties and huge property losses. To enhance policy support in terms of foreign exchange administration to fight the quake and to carry out relief work, this emergency circular is hereby promulgated as follows:

 

I. The branches and foreign exchange administration departments under the State Administration of Foreign Exchange (hereinafter referred to as SAFE branches) shall make all-out efforts to fight the earthquake and to carry out relief work by implementing the overall requirements of the Party Central Committee and the State Council on fighting the earthquake and carrying out relief work and complying with the uniform planning of the Party Committees of the Peoples Bank of China in their respective localities. The chief persons-in-charge of the SAFE branches shall serve as the primary duty officers for fighting the earthquake and for carrying out the relief work, and they shall take full responsibility for implementing the relevant tasks within their jurisdictions. The job responsibility system for fighting the earthquake and carrying out relief work shall be implemented in all respects and at all levels. 

 

II. The SAFE branches shall establish Green Channels for fighting the quake, carrying out relief work, and implementing post-disaster reconstruction. All kinds of foreign exchange services work shall be earnestly fulfilled.

 

1. Efforts shall be made to facilitate timely provision of donations for fighting the earthquake and carrying out relief work. When receiving donations for disaster relief from overseas countries or regions, government departments above the county level (inclusive) in Qinghai province and legally-established domestic NGOs are allowed to complete the procedures for account entry and settlement of the foreign exchange funds (including foreign currencies in cash), provided that it is explicitly noted in the transaction remarks that the funds are to be used for fighting the earthquake and carrying out relief work, or that a written explanation is provided by the organizations that have received the fund. Nevertheless, the funds shall not be deposited in accounts other than the foreign exchange accounts for receiving donations. Foreign exchange funds in the foreign exchange accounts of domestic institutions or personal accounts under the current account can be transferred directly to the foreign exchange donation accounts for fighting the quake and carrying out relief work. If there is a need to settle the exchange before remitting the relevant funds to the foreign exchange donation accounts, the existing policies on the administration of foreign exchange accounts under the current account as well as on the personal foreign exchange accounts shall be implemented.

 

During the disaster relief period, domestic enterprises registered in Yushu Tibetan Autonomous Prefecture may, while receiving overseas foreign exchange donations for earthquake relief and post-disaster reconstruction for the affected enterprises, complete the procedures for account entry and settlement of the foreign exchange funds directly at the banks based on the validity of the application letters.

 

With respect to overseas funds which are donated via domestic enterprises to domestic legally-established NGOs and are to be used for earthquake relief and post-disaster reconstruction in Yushu county, the domestic enterprises can proceed with the account entry formalities based on the validity of the donation agreement which specifies the purposes of the funds, and can transfer such funds to the relevant NGOs.

 

The donated foreign exchange funds must be used for earthquake relief and post-disaster reconstruction work and conform to Chinese laws, regulations, and other relevant provisions. All donation recipients shall carefully keep proof of the expenditures of the foreign exchange donations for future inspection.

 

2. For the remittance of donations with the payee being domestic government departments or legally-established NGOs, the relevant procedures for the pre-settlement of exchange and remittances of funds can be handled by qualified overseas branches of the Bank of China, the Industrial and Commercial Bank of China , and the China Construction Bank.

 

3. During the period for fighting the earthquake and carrying out relief work, banks are allowed to make statistical declarations of the balance of payments (hereinafter referred to as the declaration) for the quake-fighting and relief funds remitted from overseas countries or regions that have been received by government departments and NGOs, such as the Ministry of Civil Affairs, the Head Office of the Red Cross Society of China, the China Charity Federation, the China Environmental Protection Foundation, the China Children and TeenagersFund, and the China Association for NGO Cooperation. The declaration banks shall transmit the relevant information in a timely manner to the local administrations of foreign exchange, and shall sign and keep in safety the declaration agreements with the aforementioned special entities prior to handling the relevant declarations.

 

4. The short-term external debt quotas shall be increased in an appropriate manner for Qinghai province in 2010. Chinese-funded enterprises within the jurisdiction of the Qinghai Provincial Government will be allowed to borrow short-term external debts within the ratified quotas.

 

5. After consultation with the China Foreign Exchange Trading System, it has been decided that all transactional terminal fees, transaction fees, and settlement fees arising from transactions on the inter-bank foreign exchange market for corporate financial institutions of Qinghai province will be exempted for the full amount for the year 2010.

 

The foregoing temporary measures adopted during the period of fighting the earthquake and carrying out relief work shall remain in effect for one year.

 

III. The SAFE branches shall, in compliance with overall planning, keep a close eye on the operational condition of the networks and foreign exchange business systems within their jurisdictions and enhance the monitoring of the networks and systems so as to ensure the stable operation of the networks and foreign exchange business systems as well as the smooth implementation of various business tasks.

 

IV. The SAFE branches shall further enhance emergency duties and information submissions, carry out earnestly the 24-hour duty system, and ensure the smooth transmission of government orders. Information about fighting the earthquake and carrying out relief work shall be submitted uniformly to the General Affairs Department of the SAFE (duty room) and the relevant departments.

 

V. The SAFE branches shall, in compliance with overall planning, carry out the Love Contribution donation activities in an orderly manner, vigorously support the post-disaster reconstruction of the quake-hit areas, fully carry forward the spirit of devoting collaborated efforts to assisting those suffering from disasters, and give strong support to reconstruction work through conscientious efforts.

 

 

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Circular of the SAFE on Relevant Issues Concerning Implementation of the Pilot Programs on the Reform of the Verification and Writing-off System of Foreign Exchange Payments for Imports

Date:2010-04-02

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:

 

To efficiently implement the Opinions of the General Office of the State Council on Promoting Economic Development by Following Current Economic Trends (Guobanfa No.126 [2008]), and to facilitate the process of trade, the State Administration of Foreign Exchange (or SAFE) decided to launch a pilot program on the reform of the import payments verification system (hereinafter referred to as import verification reform), thus gradually completing transformation of import payments administration from case-by-case verification to batch-based verification, from on-site verification to off-site verification, and from behavioral supervision to subject supervision. The SAFE collects electronic information about cargo flows and capital flows of import companies through the Inspection System for the Collection and Settlement of Foreign Exchange under Trade (hereinafter referred to as inspection system), subjects import companies to off-site batch-based inspections as well as monitoring and early warning to identify abnormal capital flows and trading transactions, and subjects import companies to administration through examinations and evaluations that are conducted based on the outcome of on-site inspections. The circular on the relevant issues is given as follows:

 

1. Starting May 1, 2010, the pilot program for the reform of import verifications will be launched in the SAFE branches in Tianjin, Jiangsu, Shandong, Hubei, Inner Mongolia, and Fujian (including the autonomous regions and municipalities directly under the Central Government), and in the region under the jurisdiction of the SAFE's Qingdao branch.

 

2. The import companies in the pilot regions shall undergo import payments procedures subject to the Measures for the Pilot Program on Reform of the Administration of Foreign Exchange Payments for the Import of Goods and its implementing rules (hereinafter referred to as Measures, see Appendices 1 and 2); the banks in the pilot regions shall handle the import payments for import companies in accordance with the Measures. The import payments for the non-pilot regions shall be dealt with pursuant to the functional provisions for verification of import payments.

 

3. During implementation of the pilot program, inter-provincial (inter-autonomous region and inter-municipality directly under the Central Government) business related to non-local foreign exchange payments shall be dealt with subject to the functional provisions for verification of import payments. Where import companies in the pilot regions deal with non-local import payments in non-pilot regions, they shall register such payments with the local foreign exchange authorities where they are registered; where import companies in the non-pilot regions deal with non-local import payments in the pilot regions, the banks shall examine the Import Payments Registration Form and other relevant instruments in accordance with the pre-reform provisions.

 

4. To ensure the smooth transformation of import payments administration before and after the said reform, for import payments accrued prior to January 1, 2010, the import companies in both the pilot regions and non-pilot regions shall undergo the related verification formalities with their local foreign exchange authorities before July 31, 2010. Where the import companies fail to go through the verification formalities for any overdue business within the prescribed limit and without any justification, the foreign exchange authority in question shall mete out penalties accordingly or shall put it on file for a future inspection of the import payment.

 

5. Considering that the import verification reform is a great initiative for facilitating the process of trade, all foreign exchange branches in the pilot regions shall attach great importance to the reform and arrange the following issues in a centralized manner:

 

(1) The said branches shall step up publicity and training efforts. Following the SAFEs centralized deployment, they shall provide effective publicity and sound explanations about the pilot program through different channels, direct the concerned banks and import companies and urge them to become familiarized with the outlines of the reform as well as other policies and measures as soon as possible; the said branches shall institute training activities among the foreign exchange authorities, banks, and import companies within their jurisdictions so as to pave the way for such banks and import companies to conduct related businesses in future.

 

(2) The said branches shall urge import companies listed on the Name List of Import Companies for Import Payments to sign the confirmation letter for the import payment business before July 31, 2010.  The text of the confirmation letter will be issued separately.

 

(3) The said branches shall, in accordance with the Measures, complete the administrative work for the pilot program, such as the name registration, off-site inspection and monitoring and early warning, on-site supervision and inspection, and classified management, and shall optimize the functions of the inspection systemfor administration.

 

(4) The said branches shall report to the SAFE the progress of the pilot program without delay, and provide feedback if any problem arises from implementation of the pilot program and propose corresponding solutions or suggestions.

 

6. During implementation of the pilot program, the foreign exchange authorities from the non-pilot regions shall clear up the left over that occurred before January 1, 2010 by taking different approaches to either informing the concerned import companies or urging them to go through the verification formalities. Meanwhile, the said authorities shall proactively study the policies on the import verification reform and track the progress of the pilot program so as to be well prepared for the official implementation of import verification reform.

 

As of the date of issuance this circular, all branches and administrative departments of the SAFE shall start the preparatory work accordingly, and shall promptly forward it to the central sub-branches, sub-branches, local commercial banks, foreign banks, and relevant entities within their respective jurisdiction. If any problems arise from implementation thereof, the import companies and banks shall promptly report them to the foreign exchange authorities where they are located; and the branches and administrative departments shall report them to the SAFE in a timely manner.

 

                                                                                                    April 2, 2010


affix1:
Measures for the Pilot Program on Reform of the Administration of Foreign Exchange Payments for the Import of Goods
affix2:
Implementing the Rules for the Measures on the Pilot Program on Reform of the Administration of Foreign Exchange Payments for the Import of Goods

 

 

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Circular of the SAFE on Relevant Issues Concerning the Administration of Donations in Foreign Exchange by Domestic Institutions

Date:2009-12-30

 

For the purpose of realizing the administration of donations in foreign exchange and facilitating the receipt and payment of donations in foreign exchange, and pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and other relevant laws and regulations, the relevant issues concerning administration of donations in foreign exchange by domestic institutions are hereby promulgated:
Article 1. Donationsherein refer to free donations and aid of legal foreign exchange funds between domestic institutions and overseas institutions/individuals.
Article 2. Donations in foreign exchange by domestic institutions must be conducted in compliance with the laws and regulations and other relevant administrative rules of the Peoples Republic of China, and shall not be in violation of social morality, nor be detrimental to the public interest and legal rights and interests of other citizens.
Article 3. Domestic institutions shall handle donations in foreign exchange via separate foreign exchange accounts for donations. Designated foreign exchange banks (hereinafter referred to as Banks) shall open accounts hereof for domestic institutions, and bring them under the administration of the foreign exchange account administration information system.
Unless otherwise stipulated in the Circular, the opening, use, alteration, and closing of foreign exchange accounts for donations shall be subject to the relevant regulations of foreign exchange administration for current accounts. The income of the accounts hereof shall include: donated foreign exchange funds remitted inward from overseas countries/regions and foreign exchange funds for donation to overseas countries/regions that have been transferred from the foreign exchange accounts of the current accounts under the same name or via foreign exchange purchases. Expenditures hereof shall include donations agreed upon in donation agreements as well as other donation expenditures.
Income/expenditure of foreign exchange accounts for donations by domestic representative institutions of overseas non-governmental organizations (NGOs) shall include foreign exchange funds for donations to projects agreed upon by the general headquarters of overseas NGOs and for the legal expenditures incurred in China .
In the event that domestic enterprises accept/make donations from/to overseas profit-making institutions or overseas individuals, the opening, use, alteration, and closing of their foreign exchange accounts for donations shall be subject to the relevant regulations concerning the administration of foreign exchange accounts under the current account.
Article 4. Domestic institutions shall not carry out the account procedures for entry and outward payments of donated foreign exchange funds unless the relevant materials have been provided and approved by the banks in compliance with the Circular.
Article 5.  In the event of accepting/making donations from/to overseas non-profit institutions by domestic enterprises, the domestic enterprises shall provide the following materials to the banks:
(1) An application. (In the application the domestic enterprises must truthfully guarantee and affirm that their donations shall not be in violation of any relevant prohibitions of the state, that all procedures such as approval and filing have been conducted in line with the relevant regulations of the state, that the overseas institutions from/to which they accept/make donations are non-profit institutions, and that the domestic enterprises shall use the donated funds in strict accordance with the donation agreements and shall be held legally responsible for any issues arising therefrom. See Annex 1 for the format);
(2) A photocopy of the business license of the enterprise;
(3) A notarized donation agreement specifying the purpose of the fund;
(4) Supporting documents proving the legal overseas registration and establishment of the overseas non-profit institutions (accompanied by Chinese translations);
(5) Other required materials when the aforesaid materials fail to sufficiently prove the validity of the transaction.
When domestic enterprises accept/make donations from/to overseas profit-making institutions or overseas individuals, the relevant procedures shall be conducted in line with the relevant regulations on cross-border investments and external liabilities and claims.
Article 6.  When donations are made/accepted by government organs at or above the county level and some social organizations (see Annex 2 for the list) that do not need to register or that are exempt from social organization registration according to the relevant regulations, the relevant procedures for receipt and payment of foreign exchange shall be carried out with the aforesaid application at the banks.
Article 7. Domestic representative institutions of overseas NGOs shall carry out the procedures for account entry of foreign exchange with the aforesaid application and the donation agreement between the general headquarters of the overseas NGO and the domestic party receiving the donation.
Article 8. When domestic institutions other than those prescribed in Article 5, 6, and 7 herein carry out receipt and payment of donations in foreign exchange, the following materials shall be provided to the banks:
(1) An application.  (In the application the domestic enterprises must truthfully guarantee and affirm that their donations shall not be in violation of any relevant prohibitions of the state, that they have carried out all procedures, such as the approval and filing in compliance with the relevant regulations of the state, and that they shall be held legally responsible for any issues arising therefrom);
(2) A photocopy of the registration certification issued by the relevant authorities;
(3) The donation agreement specifying the purpose of the fund.
When national religious organizations accept donations in foreign exchange equivalent to RMB 1,000,000 or more in a lump sum, the supporting documents for the approval of the donation hereof by the State Administration for Religious Affairs shall also be provided. When religious sites, such as Buddhist temples, Taoist temples, mosques and churches, and local religious organizations accept donations in foreign exchange equivalent to RMB 1,000,000  or more in a lump sum, supporting documents for approval of the donation hereof by the peoples government at the provincial level in the places where the aforesaid sites and organizations are located shall also be provided.
Article 9.  In the event of donations to overseas countries/regions by domestic institutions, other than such materials as prescribed herein, the Tax Certificates for Foreign Payments under Trade in Services, Profits, Current Transfers, and Partial Capital Accounts shall also be submitted according to the relevant regulations.
Article 10.  In the event of carrying out the receipt and payment of donations in foreign exchange for domestic institutions, the banks shall examine the relevant materials according to the relevant regulations and report in a timely manner to the administrative foreign exchange authorities in the locality where they are located any information regarding suspicious or abnormal receipt/payment of donations in foreign exchange.
The banks shall, on the examination documents, specify the date and amount of the transaction and affix their business seal. The relevant documents shall be preserved in the archives for a period of 5 years for future reference.
Article 11. The Administrative foreign exchange authorities shall, according to the relevant laws, supervise and administer the receipt and payment of donations in foreign exchange according to the laws and regulations and shall enhance the off-site supervision thereof.
Article 12.  Conduct in violation of the Circular and the relevant regulations on foreign exchange administration shall be punished in accordance with such regulations as the Regulations of the People's Republic of China on Foreign Exchange Administration.
Article 13.  This Circular shall enter into force as of March 1, 2010. Should there be any difference between previous regulations and this Circular, this Circular shall prevail.
Upon receipt of this Circular, the branches of the SAFE in a timely manner shall forward it to their subdivisions, city commercial banks, rural commercial banks, and foreign banks within their jurisdiction. The Chinese-funded designated foreign exchange banks shall in a timely manner forward it to their branches and divisions. In the event of any problem arising from implementation, kindly provide feedback to the SAFE promptly.

 

 

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Circular of the SAFE on the Expansion of the Pilot Implementation of Domestic and Foreign Currency Exchange Franchise Business to Individuals

Date:2009-12-23

 


The SAFE branches and foreign exchange administration departments in Tianjin, Shanghai, Jiangsu, Shandong, Guangdong, Beijing, Heilongjiang, Zhejiang, Fujian, Guangxi, Hainan, Yunnan, and Xinjiang (provinces, autonomous regions, and municipalities directly under the Central Government), and the SAFE branches in Shenzhen, Qingdao, Xiamen, and Ningbo:
In August 2008, the State Administration of Foreign Exchange (SAFE) granted approval for the pilot implementation of  domestic and foreign currency exchange franchise business to individuals in Beijing and Shanghai. The implementation has achieved the expected results, with relevant work progressing smoothly. For the purpose of promoting fair competition in the  domestic and foreign currency exchange franchise market to individuals and further improving the overall level of Chinas individual currency exchange services, with the approval of the State Council, the relevant issues concerning the expansion of the pilot implementation of the domestic and foreign currency exchange franchise business to individuals are hereby notified as follows:
1. The locations of the pilot implementation shall be expanded to the provinces and municipalities (autonomous regions), including Tianjin, Shanghai, Jiangsu, Shandong, Guangdong, Beijing, Heilongjiang, Zhejiang, Fujian, Guangxi, Hainan, Yunnan, and Xinjiang, as well as the cities specifically designated in the state plan, including Shenzhen, Qingdao, Xiamen, and Ningbo.
2. The branches of the SAFE (foreign exchange administration departments, hereinafter referred to as SAFE branches) located in the areas of the pilots in principle shall select one city or one region at the prefectural or city level based on its actual economic and social conditions to be the location of the pilot implementation.
3. The SAFE branches in the newly-added pilot locations shall, according to the requirements set forth in Annex`&a, submit applications to the SAFE for approval regarding the pilot implementation. The SAFE shall decide whether or not to grant approval, according to the applicants preparations for the pilot work and the actual demands of the local market.
4. In the event that the SAFE branches in the pilot areas (including Beijing and Shanghai) grant approval to establish new operations institutions for the pilot implementation of the  domestic and foreign currency exchange franchise business (including cross-regional operations institutions), the SAFE branches shall submit for approval to the SAFE a summary regarding the situation for the pilot implementation of the domestic and foreign currency exchange franchise business to individuals prior to the application, along with the Form on the Status of Operations Institutions Applying for Pilot Implementation (see Annexa).
5. The SAFE branches in the pilot locations shall carry out pilot implementation of the  domestic and foreign currency exchange franchise business to individuals in strict compliance with the Measures for the Administration of Pilot Implementation of the  Domestic and Foreign Currency Exchange Franchise Business to Individuals (see Annex b), strengthen publicity and explanatory work regarding the pilot implementation, carry out supervision of compliance of the institutions in the pilot implementation of the  domestic and foreign currency exchange franchise business to individuals with the relevant foreign exchange administrative regulations and shall report to the SAFE any relevant situations regarding the pilot implementation in a timely manner.
Tel.: 010-68402310, 68402313
It is hereby notified.

Nov. 9, 2009

Annex (omitted)

 

 

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Circular of the SAFE Concerning Further Improving Administration of the Foreign Exchange Settlement and Sale Business for Individuals

Date:2009-12-23

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks:
In order to further improve administration of individual foreign exchange settlement and sale, effectively check individualsevasion of supervision over the limitation on the aggregate amount by means of fund splitting and so forth, and standardize foreign exchange settlement of individuals by presenting foreign currency notes, the relevant issues are hereby notified as follows:
` No individual shall evade administration of the annual aggregate amount of individual exchange settlement and individual exchange purchases within the territory of China by means of fund splitting and so forth. Generally, individual settlement and sales of foreign exchange through splitting are characterized by the following:
1. One individual/organization outside the territory of China remits foreign exchange to 5 or more different individuals on the same day/every other day/or on successive days, and these payees separately carry out the exchange settlement.
2. Five or more different individuals remit foreign exchange to the same individual/organization outside the territory of China after separately purchasing foreign exchange on the same day/every other day/or on successive days.
3. Five or more different individuals deposit/remit RMB funds into the RMB account of the same individual/organization after separately settling the exchange on the same day/every other day/or on successive days.
4. An individual withdraws foreign currency notes close to an equivalent of USD10,000 five or more times within 7 days from the same foreign exchange savings account; or five or more individuals jointly settling the exchange of foreign currency notes on the same day at the same bank outlet with each individual settling the equivalent of close to USD5,000.
5. The same individual transfers deposits from his/her foreign exchange savings account to more five or more direct relatives who then complete the exchange settlement within the limit on the annual aggregate amount; or five or more direct relatives of the same individual transfer foreign exchange purchased within the limit on the annual aggregate amount to his/her foreign exchange savings account.
6. Other acts by which individuals complete exchange settlement and sale by splitting many times through the agency of many persons for the purpose of evading administration of the limitation.  



a When banks identify any individual application for exchange settlement and sale in conformity with any of the characteristics stated in Article 1 of this Circular, the banks shall handle the application in accordance with the following provisions:
1. The banks shall reject individuals applications for foreign exchange settlement and sale bearing the distinct characteristics of splitting which can be identified by the banks as exchange settlement and sale by splitting.
2. In the event that the foreign exchange settlement and sale by individuals conform  with any of the aforesaid characteristics, whereas the settlement and sale cannot be identified by the banks as foreign exchange settlement and sale through splitting, the banks shall, if under the current account, require the involved individuals to submit the relevant certifications stating the transaction amount in compliance with the principle of authenticity verification of foreign exchange collection and payment under the current account before handling the business; if the applicants fail to submit the relevant certifications, the banks shall reject the applications. If under the capital account, the banks shall handle the relevant business in accordance with the regulations concerning administration of individual capital accounts, such as Chapter b of the Detailed Rules for the Implementation of Measures for Individual Foreign Exchange Administration.
3. When an individual is identified by the bank in an ex-post examination as a suspect involved in foreign exchange settlement and sale through splitting, the bank shall make efforts to collect the relevant evidence to prevent fund splitting conducted by the same individual. At the same time, the bank shall also report the situation within 3 working days from the date of identification to the SAFE branches or sub-branches in the localities where the banks are located (hereinafter referred to as SAFE branches).
b Individual applications for exchange settlement by presenting foreign currency notes shall be handled in accordance with the following provisions:
1. When an individual who has not exceeded the limit on the annual aggregate amount of exchange settlement settles the exchange by presenting foreign currency notes, the settlement of foreign currency notes with a total sum on the same day equivalent to USD5,000 or less shall be handled at the bank by presenting a valid identity certificate for the said individual; when the total sum of the exchange settlement exceeds the equivalent of USD5,000, the business shall be settled at the bank by presenting the valid identity certificate of the said individual, the Declaration Form of Incoming Passengers at Customs Entries of the PRC (hereinafter referred to as Customs Entry Declaration Form), or vouchers for the withdrawal of foreign currency notes from the bank where the said individual had previously deposited his/her money.
2. When an individual who exceeds the limit on the annual aggregate amount for exchange settlement conducts exchange settlement by presenting foreign currency notes, if under the current account, the business shall be handled at the bank by presenting the valid identity certificate of the said individual, his/her Customs Entry Declaration Form, or vouchers for the withdrawal of foreign currency notes from the bank where the said individual has previously deposited money and the relevant certification stating the transaction amount as prescribed in Chapter II of  the Detailed Rules for the Implementation of the Measures for Individual Foreign Exchange Administration (Huifa [2007] No.1); if under the capital account, the business shall be handled at the bank by presenting a valid identity certificate for the said individual, his/her Customs Entry Declaration Form, or vouchers for the withdrawal of foreign currency notes from the bank where the said individual previously had deposited his/her money and in accordance with the regulations on the administration of individual capital accounts such as Chapter III of the Detailed Rules on the Implementation of the Measures for Individual Foreign Exchange Administration.
c Individual foreign exchange purchases of funds for non-operational purposes under the current account shall be limited to cash in RMB or funds in the RMB account/bankcard of the said individual or his/her direct relatives.
d The pilot institutions for the franchise business of domestic and foreign currency exchange for individuals shall, to the same extent as banks, comply with the provisions of this Circular.
e Banks, pilot institutions for the franchise business of individual domestic and foreign currency exchange, and individuals shall act in strict compliance with the Measures for Individual Foreign Exchange Administration (Decree No.3 [2006] of the Peoples Bank of China), the Detailed Rules for the Implementation of the Measures for Individual Foreign Exchange Administration, and the provisions of this Circular. For any act in breach of this Circular a penalty shall be imposed by the SAFE branches in accordance with Articles 47 and 48 of the Regulations of the Peoples Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council of the PRC, August 5, 2008), and other relevant regulations.
f This Circular shall take effect as of the date of promulgation.
The branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, promptly transmit this Circular to the sub-branches, municipal commercial banks, rural commercial banks, foreign banks, and pilot institutions for the franchise business of domestic and foreign currency exchange for individuals within their respective jurisdictions; all the designated Chinese-funded foreign exchange banks shall transmit this Circular at the earliest possible date to the branches within their jurisdictions. For any problems arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner.
November 19, 2009

 

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Circular of the SAFE on Promulgating the Provisions on the Centralized Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises

Date:2009-11-30

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
For the purpose of facilitating and supporting the utilization and operation of foreign exchange funds by domestic enterprises, improving internal operations and administration of foreign exchange funds by domestic enterprises, and enhancing the efficiency of utilization of foreign exchange funds, the Provisions on the Centralized Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises (hereinafter referred to as the Provisions) have been enacted by the State Administration of Foreign Exchange (SAFE), and are hereby promulgated pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and the Interim Provisions on the Administration of Domestic Foreign Exchange Transfers.
The Provisions shall be implemented as of November 1, 2009. Please comply with and execute them accordingly.
All SAFE branches and foreign exchange administrative departments shall, upon receipt of these Provisions, immediately forward them to their subordinate branches, urban commercial banks, rural commercial banks, and foreign-funded banks within their respective jurisdictions; all designated Chinese-funded foreign exchange banks shall, upon receipt of these Provisions, immediately forward them to their subordinate branches.
Annex: Provisions on the Centralized Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises
                                                                                      

October 12, 2009

Provisions on the Collective Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises

Chapter One General Provisions

Article 1. For the purpose of facilitating and supporting the operations of domestic enterprises and their utilization of foreign exchange funds, improving internal operations and administration of the foreign exchange funds of domestic enterprises, and enhancing the efficiency of utilization of foreign exchange funds, the Provisions are hereby promulgated pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and other relevant regulations.
Article 2. The domestic enterprisesherein refer to the union of legal person enterprises (exclusive of financial institutions) duly formed and registered in the Peoples Republic of China, linked by capital and consisting of parent companies, subsidiary companies, and other member enterprises or institutions.
The internal membersherein refer to the following: (1) a parent company and its subsidiary company, of which 51 percent or more of the shares are controlled by the parent; (2) companies of which 20 percent or more of the shares are controlled solely or jointly by the parent and/or the subsidiary, or (3) those companies in which the parent and/or the subsidiary is the biggest shareholder despite their share being less than 20 percent; (4) institutions or social organizations as legal persons that are subordinate to the parent and the subsidiary.
Article 3. The centralized operations and administration of foreign exchange funds herein refers to how domestic self-owned foreign exchange funds are utilized in China by the internal members of domestic enterprises (hereinafter referred to as domestic enterprises) in compliance with the Provisions and other relevant regulations on foreign exchange administration. This includes inter-company lending/borrowing of foreign exchange, implementation of administration of foreign currency fund pools, and the business of spot purchases and sales of foreign exchange via internal finance companies.
Article 4. Inter-company lending/borrowing of foreign exchange among domestic enterprises can be conducted in the form of entrusted loans via designated foreign exchange bank, or an internal finance company which is established upon examination and approval and is qualified to engage in the foreign exchange business (hereinafter referred to as finance companies).
The foreign currency fund pool business by domestic enterprises can be carried out within the legal framework of entrusted loans via a designated foreign exchange bank or a finance company.
Article 5. Inter-company lending/borrowing of foreign exchange and the foreign currency fund pool business by domestic enterprises shall use the discretionary foreign exchange funds in their foreign exchange capital account or current foreign exchange account.
In the event of inter-company lending/borrowing of foreign exchange funds and foreign currency fund pool business, domestic companies shall adhere to the principle of full-receipt, full-payment,shall not carry out net settlement without approval, and shall agree on the IBOR with reference to the commercial loan interest rate in the international financial market during the corresponding period, and in no event shall it be disproportionately high or low.
Article 6. Entrusted loan funds of domestic enterprises shall not be used for settlement of foreign exchange, nor shall they be used as a pledge for a RMB loan. Should it be necessary that they be used for the exchange settlement, the domestic enterprises shall transfer the entrusted loan funds that are in their foreign exchange capital accounts and current foreign exchange accounts back to the foreign exchange capital account or current foreign exchange account from which the outward transfer was made through the original routing and then conduct the foreign exchange settlement in compliance with the relevant regulations.
In the event of entrusted loan funds being transferred back to the foreign exchange capital account of the domestic enterprises, the, funds thereof shall not be considered when calculating the maximum transaction quota of the accounts hereof; in the event that banks that receive such transfers reply to a bank confirmation request concerning such funds, the Entrusted Loan Funds shall be specified in the Remarks thereof, and such requests shall not be used by accounting firms in processing the capital verification for foreign-invested enterprises.
Article 7. Domestic enterprises shall, in compliance with the relevant regulations on foreign exchange administration, perform the statistical and reporting obligations thereof, such as the declaration of balance of payments and go through the collection/payment procedures for foreign exchange funds.

Chapter Two  Administration of Inter-company Lending/Borrowing of Foreign Exchange among Domestic Enterprises

Article 8. In the event of inter-company lending/borrowing of foreign exchange among domestic enterprises, one designated foreign exchange bank (or finance company) in the locality where the lender or the borrower is located shall be chosen as the trustee (hereinafter referred to as the entrusted bank), and after the qualifications of the domestic enterprises are examined and approved according to the Provisions, the entrusted bank, the lender, and the borrower shall jointly sign a foreign exchange entrusted loan contract.
Article 9. In the event of inter-company lending/borrowing of foreign exchange among domestic enterprises, a special account for foreign exchange entrusted loans shall be opened in the entrusted bank by the borrower.
Article 10. The income in the special account for foreign exchange entrusted loans shall encompass income from the borrowers entrusted loan and the principal and interest transferred inwards of the repayment funds; expenditures hereof shall encompass the principal and interest of the entrusted loans repaid by the borrower, foreign exchange expenditures under the current account, and approved foreign exchange expenditures under the capital account.
Article 11. In the event that the entrusted banks handle the transfer procedures for funds lent or repaid between the lenders foreign exchange account under the capital account/current account and the borrowers special account for foreign exchange entrusted loans, no approval from the SAFE, its branches, or sub-branches (foreign exchange administrative departments, hereinafter referred to as AFEs) is required.
The borrower can go through the procedure of repaying the principal with the interest in compliance with the relevant regulations on domestic foreign exchange loans.
An entrusted bank shall, within 5 working days from the beginning of every month, report and file with the AFE in the locality where it is located the information concerning the foreign exchange entrusted loans (See Attachment 1 for the format.)
Article 12. In the event of inter-company lending/borrowing of foreign exchange among domestic enterprises, should the lending period expire, or the borrower requires repayment in installments or in advance, the entrusted bank shall supervise and assist the lender and the borrower in repaying in the following order: first, repayment shall be made to the lenders foreign exchange account under the capital account from which the lent amount was originally transferred outwards, until such amount is replenished, and the rest of the principal and interest can be transferred to the foreign exchange account under the current account.
Article 13. Inter-company lending/borrowing of foreign exchange in the form of entrusted loans by enterprises other than those prescribed in Article 2 therein shall be in compliance with the aforesaid relevant articles.

Chapter Three  Administration of Foreign Currency Fund Pool Business by Domestic Enterprises

Article 14. Domestic enterprises that engage in foreign currency fund pool business shall meet the following requirements: being lawfully formed and registered in Peoples Republic of China ; with the registered capital  paid up by the due date; and no breach of the regulations on foreign exchange administration in the recent two years.
Article 15. In the event of foreign currency fund pool business conducted within the framework of entrusted loans, one participating internal member shall be deemed to be the host enterprise (hereinafter referred to as the host enterprise), which shall take the lead in conducting the centralized operations of the foreign exchange funds for all the participating internal members (hereinafter referred to as the participants).
The host enterprise, in principle, shall select one entrusted bank. After the entrusted bank is given the corresponding power of attorney, the said bank shall submit the following materials to the SAFE branch in the locality where the bank is located (foreign exchange administrative departments, hereinafter referred to as the AFE branch).
1. A written application, including, but not limited to, basic information on the domestic enterprise, a list of the host enterprise and participants in the foreign currency fund pool, the ownership structure, and its actual controller, and so forth;
2. A written document issued by the host enterprise that authorizes the entrusted bank to operate the foreign currency fund pool business; participation confirmation documents by the participant members; text of the authorized entrusted loan agreement for the domestic foreign currency funds pool among the host enterprise, the participants, and the entrusted bank.
3. An operational plan for the foreign currency fund pool, including but not limited to: the range of income and expenditure of the foreign exchange entrusted loan in the main account of the foreign currency fund pool to be opened by the host enterprise, and the foreign exchange entrusted loan subsidiary accounts in the foreign currency fund pool to be opened by the participants; the principles for dealing with overdrafts of the aforesaid accounts; approaches for distinguishing the entrusted loans from repayment funds; fund transfer requirements and routings.
4. An internal control system and relevant internal operational procedures established by the entrusted bank for the implementation of the operational plan for foreign currency funds pool, and instructions regarding the technical conditions and safeguards for the implementation thereof.
5. Other relevant materials as required by the AFEs.
After receiving a complete set of the aforesaid materials and examining them, the AFE branch shall, within 20 working days, make a decision as to whether or not to grant approval. In the case of approval, the AFE branch shall issue the approval document to the applicant; in the case of rejection, the AFE branch shall issue a written decision providing the reasons for rejection. The entrusted bank approved by the AFE branch shall not formally carry out the foreign currency fund pool business until materials such as the formally signed agreement and the operational plan for the foreign currency fund pool are filed with the AFE branch.
Article 16. In the event of foreign currency fund pool business operating within the framework of entrusted loans, the content and operational plan of the foreign currency fund pool approved by the AFE branch shall be strictly adhered to. Items such as the account opening and domestic foreign exchange transfers in relation to the approved operational plan of the foreign currency fund pool may be processed by the entrusted bank on behalf of the host enterprise and the participants with approval granted by the AFE branch.
The entrusted bank shall, within 10 working days from the beginning of every month, report to the AFE branch the operations of the foreign currency fund pool in the form of a Monthly Report on the Business of Foreign Currency Fund Pool Business. (See Attachment 2 for the format.)
Should any change occur in the participants, the entrusted bank shall promptly re-sign or amend the relevant agreements with the domestic enterprises, and then report and file with the AFE branch. Only with approval thereof can it continue to implement the plan for the foreign currency fund pool in accordance with increased/decreased number of participants.
Article 17. In the event of a foreign currency fund pool business operating within the framework of entrusted loans, the entrusted bank and the participants can negotiate to stipulate the daytime overdraft amount, and the participants are allowed to issue an overdraft payment from their foreign exchange entrusted loan subsidiary account. The overdraft thereof shall be promptly offset on the same day with the funds from its foreign exchange capital account and current foreign exchange account, or by the entrusted loan funds collected (or borrowed, transferred) by the host enterprise.
The entrusted bank and the host enterprise can agree on the following day the overdraft amount from the main account of the entrusted loans. The overdraft thereof shall be offset by the entrusted loan funds collected (or borrowed, transferred) by the host enterprise from the participants, or the funds from the host enterprises foreign exchange capital account and current foreign exchange account.
Article 18. In the event of a foreign currency fund pool business operating within the framework of entrusted loans, the income of the host enterprises main account for foreign exchange entrusted loans shall encompass: borrowed entrusted loans, collected principal and interest of entrusted loans, or funds transferred from its foreign exchange capital account and current foreign exchange account. Expenditures thereof shall encompass: lent entrusted loans, repaid principal and interest of entrusted loans, funds transferred back to the foreign exchange capital account and current foreign exchange account, interest on the entrusted loans transferred to its current foreign exchange account, or funds used for external payments for its current items.
The income of the participantsforeign exchange entrusted loan subsidiary accounts shall encompass: borrowed entrusted loans, the collected principal and interest of the entrusted loans, and funds transferred from its foreign exchange capital account and current foreign exchange account. Expenditures thereof shall encompass: lent entrusted loans, repaid principal and interest of the entrusted loans, funds transferred back to its foreign exchange capital account and current foreign exchange account, interest on the entrusted loans transferred to its current foreign exchange account, or funds used for external payments for its current items.
Article 19. In the event that domestic enterprises carry out foreign exchange fund operations via finance companies in the form of collecting the participantsforeign exchange deposits and granting foreign exchange loans to the participants, or if finance companies, within the range approved by the relevant authorities, collect the participantsforeign exchange deposits and grant foreign exchange loans to the participants, related issues thereof such as the opening of foreign exchange accounts and domestic foreign exchange transfers do not necessarily require approval by the AFE.
Finance companies shall, in compliance with the relevant regulations, report the relevant data through the foreign exchange account management information system.

Chapter Four  Administration of Domestic Enterprises Conducting the Business of Spot Purchases and Sales of Foreign Exchange via Finance Companies

Article 20. The business of spot purchases and sales of foreign exchange conducted by domestic enterprises via finance companies shall include exchange business for participants between RMB and foreign currencies by finance companies, and that for the finance companies themselves due to needs emerging from their own business activities.
Article 21. The following requirements shall be met by the finance companies that conduct the business of spot purchases and sales of foreign exchange:
1. Approval of qualification to operate the relevant financial business and foreign exchange business.
2. A complete internal administrative system for the purchase and sale of foreign exchange, including but not limited to: an internal control system for the purchase and sale of foreign exchange, operational procedures, a statistical and reporting system, an administrative system for certificates/documents; an independent system of account titles and an accounting method for the purchase and sale of foreign exchange; a complete internal administrative system for the business of declaring the balance of payments.
3. Sound technical conditions and an infrastructure for the purchase and sale of foreign exchange, including an exchange rate administration system for receiving/sending for the purchase and sale of foreign exchange; necessary technical conditions for filing the declared statistical data on the balance of payments and statistical data on the purchase and sale of foreign exchange; two or more relevant specialists; venues suitable for the purchase and sale of foreign exchange;
4. No breach of the foreign exchange administration regulations within the recent 2 years.
5. Other requirements as stipulated by the AFEs.
Article 22. In the event that domestic enterprises conduct the business of spot purchases and sales of foreign exchange via finance companies, the following materials shall be submitted by the finance companies to the AFE branch:
1. A written application, including but not limited to: basic information on the domestic enterprises, a list of all the participants, the ownership structure and its actual controller, and so forth; foreign exchange income/expenditure and purchase and sale of foreign exchange by all of the participants; a feasibility report on the business of spot purchases and sales of foreign exchange.
2. The finance companys Financial Business Operation Permit and approvals for its range of business; an assessment report on the finance companys capital and working capital; and participation confirmation documents of all the participants.
3. An internal administrative system for the purchase and sale of foreign exchange; an internal administration system for the declaration of the balance of payments; an exchange rate management system for receiving/sending for the purchase and sale of foreign exchange and equipment for querying the relevant reported data; the name list and CVs of all the senior executives practicing the business of purchase and sale of foreign exchange; the finance companys and all the participants audited financial statements for the recent 2 years.
4. Other relevant materials as required by the AFEs.
After receiving a complete set of the application materials, the AFE branch shall examine all the facilities on the spot to see whether they are qualified, and within 20 working days after the examination thereof, the AFE branch shall make a decision as to whether or not to grant approval. In the case of approval, an approval document shall be issued and a copy shall be reported to the SAFE. In the case of rejection, the AFE branch shall issue a written statement stating the reasons for rejection.
Article 23. The finance companies shall, within 30 working days after receiving the qualifications for the business of spot purchases and sales of foreign exchange, apply to the AFE branch for approval of the comprehensive position of purchase and sale of foreign exchange.
After acquiring membership on the inter-bank spot foreign exchange market, finance companies shall conduct the business of spot purchases and sales of foreign exchange in compliance with the relevant regulations for the administration of the purchase and sale of foreign exchange.
Branches of finance companies are prohibited from conducting the business of spot purchases and sales of foreign exchange.
Article 24. Finance companies that conduct spot purchases and sales of foreign exchange shall adhere to the relevant requirements issued by the SAFE concerning the designated foreign exchange banks conducting foreign exchange business, including the regulations for approval and safekeeping of the accounting documents, its own purchase and sale of foreign exchange, the comprehensive position for the purchase and sale of foreign exchange, the filing of purchase and sale of large amounts of foreign exchange, posted exchange rates and statistics for the purchase and sale of foreign exchange.
Subsequent to the purchase of foreign exchange from finance companies the participants shall, within 5 working days, on its own behalf pay all the expenditures for the current items other than the goods trade.
Article 25. In the event of applying to suspend the business of spot purchases and sales of foreign exchange, domestic enterprises shall submit the following materials to the AFE branch via the finance company:
1. A written application (including the reasons for the suspension and follow-up measures).
2.  Enterprise documents regarding the decision to suspend the business of the purchase and sale of foreign exchange
3. Information about the business of purchase and sale of foreign exchange prior to the application for suspension.
4. Other materials as required by the AFEs.
After receiving a complete set of the aforesaid materials, the AFE branch shall, within 20 working days, issue a reply and send a copy thereof to the SAFE.

Chapter Five  Supplementary Provisions

Article 26. Domestic enterprises that engage in centralized operations of foreign exchange funds shall comply with the Provisions and other relevant regulations on foreign exchange administration, and shall accept the supervision, administration, and examination of the AFEs.
Article 27. The SAFE may, in accordance with Chinas balance of payments situation and the status of the centralized operations of the domestic enterprisesforeign exchange funds, adjust the relevant regulations on the centralized administration and operation of foreign exchange funds in an appropriate manner.
Article 28. The Provisions shall apply to internal members of domestic enterprises controlled by the same overseas parent company.
Article 29. Domestic enterprises, designated foreign exchange banks, and finance companies that conduct foreign exchange business in breach of the Provisions shall be punished by the AFE in compliance with the Regulations of the People's Republic of China on Foreign Exchange Administration and other relevant regulations.
In the event that an aforesaid party is in severe breach of the Provisions and other relevant regulations, the AFE branch in the locality where it is located can suspend foreign currency fund pool business or business for purchases and sales of foreign exchange.
Article 30. The SAFE shall be responsible for the interpretation of these Provisions.
Article 31. These Provisions will take effect as of November 1, 2009. After promulgation of the Provisions, the Circular of the SAFE Concerning the Relevant Issues on the Internal Operations and Administration of Foreign Exchange Funds of Multinational Companies (Huifa [2004], No. 104) and the Circular of the SAFE Concerning Relevant Issues on the Business of Spot Purchases and Sales of Foreign Exchange Carried Out by Finance Companies of Enterprise Groups (Huifa [2008], No. 68) shall be repealed. In cases of any discrepancies between the former provisions and these Provisions, these Provisions shall prevail.

 

 

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Circular of SAFE on Relevant Issues Concerning Foreign Exchange Administration of Overseas Securities Investments by Fund Management Companies and Securities Companies

Date:2009-11-13

 


The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

For the purpose of regulating foreign exchange administration of overseas securities investments by domestic fund management companies and securities companies (hereinafter referred to as Securities Trading Institutions) and pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and the relevant regulations, the relevant issues are hereby notified as follows:

1. The State Administration of Foreign Exchange, with all its branches (hereinafter referred to as AFEs), shall be responsible for the supervision, administration, and inspection of the overseas securities investment quota (hereinafter referred to as Investment Quota), foreign exchange accounts, and exchange by/of the Securities Trading Institutions.

2. Securities Trading Institutions qualifying for foreign exchange business when operating overseas securities investment business shall apply to the SAFE for an Investment Quota.

3. The following materials shall be submitted to the SAFE when Securities Trading Institutions apply for an Investment Quota:
1) A written application, including basic information about the applicant, the overseas securities investment plan, the Investment Quota for which the application is being submitted, information about the senior executives for the overseas securities investments, the internal control system, the risk management measures, and the relevant preparations, and the Basic Information on Overseas Securities Investments by Domestic Institutions(Attachment One).
2) Qualification approvals for domestic institutional investors issued by the China Securities Regulatory Commission (hereinafter referred to as CSRC).
3) Other materials as required by the SAFE

Those who apply to increase the Investment Quota shall submit the materials prescribed thereof, as well as a report on the use of the approved Investment Quota.

4. The SAFE implements balanced management of the Investment Quota. The net outward remittances for overseas securities investments by Securities Trading Institutions shall never exceed the approved Investment Quota.

Securities Trading Institutions may, as investment requires, within the range of its Investment Quota invest in relevant overseas securities investment products approved by the CSRC (hereinafter referred to as Products).

Should a Securities Trading Institution fail to use its Investment Quota effectively within two years after approval, the SAFE shall have the right to reduce the quota.

A Securities Trading Institution shall not transfer or assign its Investment Quota in any form to any other institution.

5. Securities Trading Institutions may collect from domestic investors foreign exchange funds for overseas securities investments, as well as RMB funds to purchase foreign exchange for overseas securities investments.

Domestic investors shall not invest in relevant Products issued by the Securities Trading Institutions in the form of foreign currency banknotes.

6. A domestic custodian shall open a domestic escrow account for the relevant Products of a Securities Trading Institution with the approval for the Investment Quota issued by the SAFE, among which a domestic foreign exchange escrow account shall be opened for Products collected in the form of foreign exchange, and a domestic RMB escrow account and a domestic foreign exchange escrow account shall be opened for Products collected in the form of RMB.

A domestic custodian shall open a domestic escrow account for each Product respectively. Foreign exchange escrow accounts in different currencies for one Product shall be deemed to be one account.

A domestic custodian shall provide and file, within 5 working days after the opening of a domestic foreign exchange escrow account, the account opening information and the trust agreement to the AFE in the place where the custodian is located..

A domestic custodian shall, at the place where the overseas custodian is located, open an overseas escrow account for the relevant Products issued by the Securities Trading Institutions

See Attachment Two for the division of revenue and expenditures of domestic foreign exchange escrow accounts and overseas escrow accounts.

7. When raising foreign exchange funds from domestic investors for overseas securities investments, Securities Trading Institutions shall, in compliance with the relevant regulations, open special foreign exchange accounts with raised funds and foreign exchange clearing accounts for the Products.

If Securities Trading Institutions need to raise foreign exchange funds from domestic investors in the form of direct sales and proxy sales, foreign exchange accounts for the direct sales and proxy sales of the Products shall also be opened.

All the accounts hereof shall be opened by the Securities Trading Institutions based on the approved Investment Quota issued by the SAFE and in compliance with the relevant regulations. See Attachment Two for the divisions of the revenue and expenditures in all the accounts hereof.

8. If domestic investors invest with their own foreign exchange, after the inward remittance of the principal and proceeds, they shall not directly withdraw the cash or proceeds for exchange settlement, but they shall transfer it from the domestic foreign exchange escrow accounts, via the foreign exchange clearing accounts and the direct sales and proxy sales foreign exchange accounts, to the foreign exchange accounts of the domestic individual investors or to the previous foreign exchange accounts of the domestic institutional investors.

If domestic investors invest with RMB funds, after the inward remittance of the principal and the proceeds, the payments shall be made after the exchange settlement by the Securities Trading Institutions on their behalf via the domestic foreign exchange escrow accounts with the approved Investment Quota issued by the SAFE.

9. Securities Trading Institutions shall, within 7 working days after the establishment of each Product, provide information about the Product, such as the amount of funds actually raised and the fund sources, to the SAFE. (See Attachment 3 for the format.)

Securities Trading Institutions shall, within 7 working days after the end of every month, provide to the SAFE the relevant tabulated data on its overseas securities investments. (See Attachment 4 for the format.)

Domestic custodians shall, within 7 working days after the end of every month, provide to the SAFE the relevant data regarding the overseas securities investments of entrusted Securities Trading Institutions.  (See Attachment 5 and 6 for the format.)

10. Securities Trading Institutions and domestic custodians shall perform their obligations to report the balance of payments in compliance with the relevant regulations for reporting the balance of payments

11. Should Securities Trading Institutions or domestic custodians fail to honor and observe this circular, they shall be punished by the corresponding AFEs in compliance with the Regulations of the People's Republic of China on Foreign Exchange Administration and the relevant regulations on foreign exchange administration. In serious cases involving the domestic custodians, the AFEs may order a replacement of the domestic custodian of the Securities Trading Institution. In serious cases involving the Securities Trading Institutions, the AFEs may revoke their Investment Quotas.

12. The present Circular shall be implemented as of the date of promulgation. The Circular of the SAFE on Relevant Issues Concerning Foreign Exchange Management of Overseas Securities Investments by Fund Management Companies (Huifa No. 46 [2006]) shall be repealed.

Upon receipt of this Circular, all SAFE branches and foreign exchange administrative departments shall transmit it in a timely manner to the fund management companies, securities companies, and designated foreign exchange banks under their respective administrations.

Attachments: (omitted)
1. Basic Information on Overseas Securities Investments by Domestic Institutions.
2. Division of Revenue and Expenditures in Relevant Accounts of Overseas Securities menvestments by Fund Management Companies and Securities Companies.
3. Record for Raising Overseas Securities Investment Products by Securities Trading Institutions.
4. Monthly Report on the Use of the Overseas Securities Investment Quota by Qualified Domestic Institutional Investors.
5. Monthly Report on Overseas Securities Investments by Qualified Domestic Institutional Investors.
6. Details on Outward and Inward Remittances of Overseas Securities Investment Funds by Qualified Domestic Institutional Investors.

September 29, 2009

 

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Announcement of the State Administration of Foreign Exchange

Date:2009-11-13

 

Decree [2009] No. 1

Pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and the Measures for Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (QFII) (Decree [2006] No. 36 of the CSRC, PBOC, and SAFE), the Regulation on Foreign Exchange Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (QFII), which will enter into effect from the date of promulgation, is hereby promulgated.
                                                                                September 29, 2009


Regulations on Foreign Exchange Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (QFII)
Chapter 1  General Provisions
Article 1 For the purpose of standardizing the foreign exchange administration of Qualified Foreign Institutional Investors (hereinafter referred to as QFII) in China's securities market, these Regulations are promulgated based on the Regulations of the People's Republic of China on Foreign Exchange Administration and the Measures for Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (QFII) (Decree [2006] No. 36 of the CSRC, PBOC, and SAFE).
Article 2 The QFII shall mandate its domestic custodian (hereinafter referred to as custodian) to go through all the relevant procedures as required by these Regulations.
Article 3 The QFII and its custodian shall comply with the relevant regulations of Chinas foreign exchange administration.
Article 4 The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (hereinafter referred to as AFEs) shall, in compliance with the relevant laws and regulations, exercise supervision, management, and inspection over the investment quota, fund accounts, fund receipts and payments, and exchange, and so forth.
Chapter 2
Investment Quota Administration
Article 5 The QFIIs domestic securities investments are subject to quota administration. The State Administration of Foreign Exchange (hereinafter referred to as the SAFE) approves the investment quota of single QFIIs and encourages mid-term and long-term investments.
Article 6 The following materials shall be submitted to the SAFE when the QFII applies for an investment quota and to open foreign exchange accounts and a special RMB accounts:
1) A written application submitted by the QFII and its custodian, including the basic information on the QFII, the source of funds, the investment plan, the QFIIs letter of commitment that no capital shall be withdrawn during the lock-up period, and so on, along with the Registration Form for Qualified Foreign Institutional Investors by the SAFE. (See Attachment 1 for a sample.)
2) Photocopies of the License for the Securities Investment Business of Qualified Foreign Institutional Investorsissued by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
3) The QFIIs notarized power of attorney to the custodian.
4) Other materials as required by the SAFE
QFIIs that apply to increase the investment quota shall provide, apart from the aforesaid 1) and 4), the Foreign Exchange Registration Certificate for Qualified Foreign Institutional Investors (hereinafter referred to as the FERC), and a report on the domestic investments of the approved investment quota, including asset allocations and changes, investment profits and losses, compliance, average stock turnover, and so forth.
Article 7 An application for a single QFII investment quota shall not be less than an amount equivalent to USD 50 million for each time, but not more than an amount equivalent to a total of USD 1 billion. The SAFE may adjust the aforesaid limits in accordance with the economic and financial situations, the supply and demand relations in the foreign exchange market, the status of the balance of payments, and other factors.
The QFII shall not, within 1 year after the approval of the investment quota, apply for an increase in its investment quota.

Article 8 The QFII should, within 6 months after the date of approval of each investment quota, remit the principal inward; should it be overdue, the QFII shall not remit the principal inward unless it is approved. Should the remitted principal be not the full prescribed amount but in excess of the equivalent of USD 20 million, the actually remitted amount shall be deemed to be its investment quota.
In the event that the QFII remits the principal in non-U.S. Dollar currencies, it is necessary to calculate the remitted U.S. Dollar equivalent of the investment quota with reference to the Conversion Rate Table of All Currencies to the U.S. Dollarissued by the SAFE in the month when the outward remittance takes place.
Article 9 For QFIIs, such as pension funds, insurance funds, mutual funds, charity funds, endowment funds, government and monetary authorities, and open-ended Chinese funds initiated and established by QFIIs, the lock-up period of the principal is 3 months; for other QFIIs, the period is 1 year.
The lock-up period of a QFIIs principal shall be calculated from the date of the remittance of the full amount of the principal; in the event of a failure to remit the principal within the prescribed period of time, the lock-up period shall be calculated 6 months after the date when the investment quota is approved.
The aforesaid open-ended Chinese funds refer to open-ended securities investment funds that are established abroad in public offerings, with over 70% of the funds invested in China . The QFII shall report and file, within 20 working days after the initiation and establishment of open-ended Chinese funds, the original fund prospectuses and Chinese translations of its basic contents to the SAFE.
The aforesaid lock-up period refers to the period in which the QFIIs are forbidden from remitting the principal abroad.
Chapter 3  Account Administration
Article 10 With the approval of the investment quota and the account opening issued by the SAFE, the QFII can, in the location of its custodian, open a foreign exchange account and a corresponding special RMB account for its own funds or for its clientsfunds for which it provides asset management services, respectively.
QFIIs that establish open-ended Chinese funds shall open a foreign exchange account and a corresponding special RMB account for each of the funds.
The custodian shall, within 5 working days after the opening of the QFIIs foreign exchange account and special RMB account, file with the AFE in the place where it is located, and report the formal custody agreement to the SAFE and receive the FERC for the QFII.
Article 11 The income in the QFIIs foreign exchange accounts shall includes principals remitted from abroad by the QFII, interest income, funds remitted inward by purchasing foreign exchange through the QFIIs special RMB accounts, and other income approved by the SAFE. Expenditures shall include funds remitted to the QFIIs special RMB accounts by exchange settlement, funds remitted abroad by the same route as remitted inward, and other expenditures approved by the SAFE.
The income in the QFIIs special RMB accounts shall include funds remitted inwards from the QFIIs foreign exchange accounts by exchange settlement, the proceeds from the sales of securities, cash dividends, interest income, and other income approved by the SAFE; expenditures shall include expenses for purchasing the prescribed products, such as securities (including stamp duties, service charges, etc.), taxes and duties, such as taxes, custody fees, audit fees, and overhead expenses, funds remitted to the QFIIs foreign exchange accounts with purchased foreign exchange, and other expenditures approved by the SAFE.
Funds in the QFIIs foreign exchange accounts and special RMB accounts shall not be used for any purposes other than domestic securities investments.
Article 12 Funds shall not be transferred among the QFIIs fund accounts, clientsfund accounts, and accounts for open-ended Chinese funds accounts, or among multiple accounts for open-ended Chinese funds under a single QFII.
Article 13 The deposit rates for the QFIIs foreign exchange accounts and special RMB accounts shall be applied in accordance with the relevant regulations as promulgated by the Peoples Bank of China .
Article 14 When a QFII is involved in one of the following circumstances, it shall be subject to punishment of the realization of its assets within one month, the closing of its foreign exchange accounts and special RMB accounts opened at the location of its custodian, and repeal of its corresponding investment quota:
1) The CSRC has revoked its license for securities investment business;
2) The amount of funds remitted inward by the QFII within 6 months after the first approval of the investment quota is less than the equivalent of USD 20 million;
3) The amount of the remaining principal left in China is less than the equivalent of USD 20 million due to the QFIIs repatriation of investments abroad;
4) The SAFE revokes the QFIIs investment quota in compliance with these Regulations;
5) Other circumstances as prescribed by the SAFE.

The custodian shall, within 5 working days after the closing of the QFIIs foreign exchange accounts and special RMB accounts, file with the AFE in the place where it is located, and return the FERC to the SAFE.
Chapter 4  Exchange Management
Article 15 The QFII can, in accordance with the investment plan and the relevant reports that are provided when applying for an investment quota, within 10 working days prior to the actual investment taking place, advise its custodian to process the exchange settlement necessary for the investment and remit the funds to its special RMB account.
A QFII that remits an amount of accumulated investment principal that is less than the equivalent of USD 20 million shall not process exchange settlements and investments.
Article 16 Upon the termination of the lock-up period, open-ended Chinese funds can, based on the monthly subscribed or redeemed net amount, process the relevant inward or outward remittance of funds on a monthly basis
In the event of net redemptions, the principal remitted outwards therein shall be calculated according to the ratio of the QFIIs investment principal and profits and losses on the last transaction day of the month prior to the outward remittance as confirmed by the custodian, and then that amount shall be deemed to be the approved amount for the next inward remittance of investment funds.
In the event of net subscriptions of open-ended Chinese funds, should the exchange settlement funds remitted inward each time not be the equivalent of USD 50 million or more, the custodian can go directly through the relevant procedures on its behalf, and then file with the AFE in the place where the custodian is located; should they exceed the equivalent of USD 50 million, the open-ended Chinese funds shall, within 10 working days in advance, file an application with the AFE in the place where the custodian is located along with the photocopies of the FERC, and shall carry out the relevant procedures unless approval is granted by the aforesaid AFE.
In the event of net redemptions of the open-ended Chinese funds, should the funds remitted outward with foreign exchange purchased each time not be the equivalent of  USD 50 million or more, the custodian can directly go through the relevant procedures on its behalf, and then file with the AFE in the place where the custodian is located; should they exceed the equivalent of USD 50 million, the open-ended Chinese funds shall, within 10 working days in advance, file a written application with the AFE in the place where the custodian is located, along with a written application, photocopies of the FERC, and a report on investment profits and losses, and shall not go through the relevant procedures without the approval of the aforesaid AFE.
Article 17 In the event that the QFII needs to remit the principal, with purchased foreign exchange upon the termination of the lock-up period of the investment principal, other than open-ended Chinese funds, the following application materials shall be submitted to the SAFE for approval:
1) A written application
2) The original copy of the FERC
3) A report on the inward remittances of the principal and past investments
4) Other materials as required by the SAFE
After the examination and verification of the aforesaid materials, the SAFE shall issue an approval document, and correspondingly decrease the QFIIs investment quota. The custodian shall go through the procedures for foreign exchange purchases and outward remittances of funds on the QFIIs behalf with the approval of the SAFE.
Article 18 In the event that the QFII needs to remit outwards the accumulated proceeds realized with purchased foreign exchange, other than for open-ended Chinese funds, it shall, upon the issuance of a special audit report by a Chinese certified public accountant, delegate its custodian to file an application with the AFE where the custodian is located on its behalf with the following materials:
1) A written application and the relevant documents attesting to the decision on the remittance of the proceeds;
2) The original copy of the FERC;
3) A special audit report on the investment proceeds issued by a Chinese certified public accountant;
4) Tax payment documentation on the proceeds;
5) Other materials as required by the AFE.
After the examination and verification of the above-mentioned materials, the AFE in the place where the custodian is located, shall issue an approval document, which can be used by the custodian to go through the procedures for exchange purchases and outward remittances of funds on behalf of the QFII.
Article 19 The custodian shall, in an accurate and timely manner, record on the FERC the situation regarding the remittance/exchange and receipt and payment of the QFIIs funds.
Article 20 The SAFE may, in accordance with Chinas economic and financial situations, supply and demand relations in the foreign exchange market, and status of the balance of payments, adjust the time, amount, and period for the outward remittances of funds by the QFII.
Chapter 5  Statistics, Supervision, and Administration
Article 21 When a QFII is involved in one of the following circumstances, it shall within 5 working days go through the procedures with the SAFE to change the FERC and submit a written report to the SAFE
1) Changes in its basic information such as the name, responsible leader, major shareholders, or actual controller of the QFII;
2) The QFII or its major shareholders or actual controller face significant penalties by other regulatory authorities (including foreign authorities), and the penalties thereof shall exert a significant influence on the QFIIs investment operations, or the relevant business licenses are suspended or revoked;
3) The custodian or the entrusted domestic investment institutions (brokers) are changed or important information thereof is changed;
4) There are changes in the account name, information on the account, and so forth;
5) Changes in the fund prospectuses of the open-ended Chinese funds;
6) Other situations as prescribed by the SAFE.
In the event that the QFII changes its custodian, the new custodian shall provide, apart from the aforesaid materials, a draft of a newly signed escrow agreement, basic information about the new custodian, a report on the escrow business, and a newly notarized power attorney, and shall submit a formal escrow agreement within 5 working days after the date on which the foreign exchange account and the special RMB account are opened.
Article 22 The custodian shall submit the relevant reports on remittance/exchange of funds and domestic securities investments by the QFII in a timely and accurate manner according to the following particulars:
1) Completing the Schedule of QFIIs Funds Outward/Inward Remittances (See Attachment 2 for a sample) within 2 working days after the QFIIs outward/inward remittances of funds or settlement/purchase of exchange;
2) Submitting the Monthly Report I & II on Domestic Securities Investment by the QFIIwithin 8 working days after the end of each calendar month;
3) Submitting the last fiscal years Annual Financial Statements I & II on Domestic Securities Investments by QFIIs(see Attachment 4 for a sample) as audited by a Chinese certified public accountant within 3 months after the termination of each fiscal year.
Article 23 A QFII that commits one of the following acts shall be subject to punishment by the AFE in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration, and the investment quota thereof may be reduced or revoked:
1) Illegal use of foreign exchange, such as transferring or selling the investment quota.
2) Providing false information or materials to its custodian or the AFE.
3) Failing to process the exchange settlement or exchange purchase/payment in accordance with the relevant regulations.
4) Failing to provide relevant information or materials regarding its remittance/exchange of funds and domestic securities investments as required by the AFE
5) Other acts in breach of the regulations on foreign exchange administration.
Article 24 Custodians that commit one of the following acts shall be subject to punishment by the AFE in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration; in serious cases, its qualification as QFII custodian shall be revoked  jointly by the AFE and CSRC:
1) The outward remittance of the principal for the QFII exceeds the SAFE-approved investment quota or is overdue;
2) Failure to go through the procedures for the outward remittance of principal/proceeds for the QFII in accordance with the relevant regulations;
3) Failure to open/close the foreign exchange accounts and special RMB accounts for the QFII in accordance with the relevant regulations, or failure to go through the remittance/exchange of funds and transfer procedures for the QFII for the prescribed income and range of expenditures for the account;
4) Failure to submit reports or relevant materials to the AFE, or failure to report on relevant situations to the AFE.
5) Failure to report the balance of payments in accordance with the relevant regulations;
6) Other acts in breach of the regulations on foreign exchange administration.
Chapter 6  Supplementary Provisions
Article 25 The materials submitted to the AFE as required by these Regulations shall be in Chinese. Should there be counterparts in both Chinese and a foreign language, the Chinese text shall prevail.
Article 26 Power to interpret the present Regulations shall remain with the SAFE.
Article 27 These Regulations will enter into force as of the date of promulgation. The Provisional Measures for Foreign Exchange Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (QFII) (Announcement No. 2 [2002] of the SAFE) and the Circular of the General Affairs Department of the State Administration of Foreign Exchange on the Management and Operation of Foreign Exchange of QFIIs (Huizongfa No. 124 [2003]) shall be repealed.

Attachments: (Omitted)

 

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Circular of the SAFE on Relevant Issues Concerning Indirect Declarations of Collections and Payments Made to and by Domestic Non-residents for Balance of Payments Statistics

Date:2009-07-17

 

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

 

 

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Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions

Date:2009-07-13

 

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 branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks:



In order to standardize the opening and use of domestic foreign exchange accounts by overseas institutions and other relevant operations, to promote the facilitation of trade and investment, and to prevent financial risks, the relevant issues are hereby notified as follows according to the related provisions of the Regulations of the Peoples Republic of China on Foreign Exchange Administration.
1. Overseas institutions as stated in this Circular refer to institutions legally registered and established outside the territory of China (including Hong Kong SAR, Macao SAR, and Taiwan Province ). Domestic banks in this Circular refer to Chinese-funded banks and foreign-funded banks that are qualified to accept public deposits and handle domestic and overseas settlements in accordance with the law. 

The domestic foreign exchange accounts of overseas institutions referred to in this Circular do not include domestic offshore accounts of overseas institutions (accounts opened by overseas institutions according to the regulations of the offshore business departments of the domestic banks that have obtained eligibility to handle offshore banking businesses in accordance with the law).

2. Overseas institutions and domestic banks shall, in accordance with the provisions of this Circular, open and use foreign exchange accounts, conduct foreign exchange receipt and payment business, and abide by the provisions as provided by the relevant laws and regulations of the State.   
 
3. When opening foreign exchange accounts for overseas institutions, the domestic banks shall examine and verify the materials for the account opening, such as the documentary evidence testifying to the legality of the overseas registration and establishment of the overseas institutions. In cases when the account opening materials, such as the documentary evidence, are presented in languages other than Chinese, the overseas institutions shall also provide Chinese translations of the corresponding evidence. Unless otherwise specified by the SAFE, the opening of foreign exchange accounts by domestic banks for overseas institutions is not subject to the approval of the SAFE and its branches or sub-branches (hereinafter referred to as the Foreign Exchange Administrations).  

The account name on the domestic foreign exchange accounts of overseas institutions shall conform with the name presented in the documentary evidence testifying to the legality of the overseas registration and establishment (or the corresponding Chinese translation) of the overseas institutions.

4. When opening foreign exchange accounts for overseas institutions, the domestic banks shall mark NRA (NON-RESIDENT ACCOUNT) preceding the foreign exchange account numbers in a uniform manner, i.e., NRA + the foreign exchange account number, and at their discretion shall distinguish between banks and non-bank institutions among overseas institutions, so that the domestic payees and payers and their due banks and paying banks with fund transfers from/to the said foreign exchange accounts will be able to accurately identify whether the foreign exchange accounts are domestic foreign exchange accounts of overseas institutions.

The domestic banks shall, within 18 months after implementation of this Circular, complete the adjustments to their internal systems for affixing the NRA mark in a uniform manner on the domestic foreign exchange accounts of overseas institutions as stipulated in the preceding paragraph and the uniform marking of NRAin front of the account number of the domestic foreign exchange accounts that were opened prior to the issuance of this Circular and other relevant work. The domestic banks shall comply with the Circular of the State Administration of Foreign Exchange and the General Administration of Quality Supervision, Inspection, and Quarantine of the Peoples Republic of China on the Issuance of Operational Rules on the Coding for Special Institutions in the Declaration of the Balance of Payments Statistics (Huifa No.131 [2003]) in applying for and acquiring codes for overseas institutions that open foreign exchange accounts, conducting basic information registration for overseas institutions at the Foreign Exchange Administrations, and submitting the detailed information about the account opening, balances and receipts, and payments of the domestic foreign exchange accounts of overseas institutions to the Foreign Exchange Administrations via the foreign exchange account management information system. Foreign exchange accounts such as inter-bank deposit accounts opened by overseas banks in domestic banks are not subject to the provisions stipulated in this paragraph.     

5. Foreign exchange receipts and payments of domestic institutions and individuals from/to domestic foreign exchange accounts of overseas institutions shall be subject to cross-border transaction administration. Domestic banks shall handle such foreign exchange receipts and payments after examining and verifying the valid commercial documents and vouchers of the domestic institutions and individuals according to foreign exchange administration regulations on cross-border transactions.
If payments are made by overseas institutions to domestic institutions and individuals via the domestic foreign exchange accounts prior to completion of the NRA marking by the domestic banks, the remitting bank shall note NRA PAYMENT in the transaction postscript of the remittance instruction so that the due bank can identify whether the funds are remitted from a domestic foreign exchange account of overseas institutions. When payments are made by domestic institutions and individuals to the domestic foreign exchange accounts of overseas institutions, the domestic institutions and individuals shall, in addition to providing valid commercial documents and vouchers according to the regulations, provide the remitting banks with documentary evidence to demonstrate the nature of the foreign exchange account of the beneficiary; in cases when the remitting bank cannot identify the nature of the foreign exchange account due to a lack of clarity in the provided documentary evidence, the remitting bank shall inquire in writing to the due bank regarding the nature of the foreign exchange account, and the due bank shall respond through a written confirmation.   
6. Unless otherwise specified by the SAFE, where a domestic foreign exchange account of an overseas institution is involved in (a) a foreign exchange collection from home or abroad; (b) a foreign exchange transfer with another domestic foreign exchange account of the overseas institution; (c) a foreign exchange transfer with an offshore account, or; (d) a payment made overseas, the domestic bank may directly handle such business as per the clients directions.

7. Fund receipts and payments via the domestic foreign exchange accounts of overseas institutions from/to domestic or overseas parties and consequent changes in the balance of accounts shall be subject to declaration of the balance of payments statistics according to the relevant regulations. 

8. The deposit and withdrawal of cash in foreign currency via the domestic foreign exchange accounts of overseas institutions and the foreign exchange settlement of funds in such accounts in a direct or disguised manner are prohibited unless when approved by branches or administrative departments of the SAFE at the locality of registration.
9. The balance of funds in the domestic foreign exchange accounts of overseas institutions shall be incorporated into short-term external debt quota management of the domestic banks, unless otherwise specified by the SAFE. In cases where the said balance is used as pledge for domestic institutions to obtain loans from domestic banks, it shall be handled in accordance with the foreign exchange administration regulations on overseas guarantees under the item of domestic loans.   
10.  When conducting business related to the domestic foreign exchange accounts of overseas institutions, the domestic banks shall abide by the provisions of the anti-money laundering laws and the administrative regulations and departmental rules such as those on the reporting of large-sum and suspicious transactions.

11. Where overseas institutions and individuals open offshore accounts in the offshore business departments of domestic banks that are eligible for offshore banking business according to the law, the foreign exchange receipts and payments of such offshore accounts from/to the domestic institutions shall be handled in strict compliance with the Measures for the Administration of Offshore Banking Business (Yinfa No. 438 [1997]), the detailed implementation rules, and other relevant regulations. 

12. For the opening, use, and cancellation of foreign exchange accounts of qualified overseas institutional investors, special foreign exchange accounts of foreign investors, B-share foreign exchange accounts of overseas institutions, and domestic foreign exchange accounts of embassies and consulates of foreign countries (regions) in China with diplomatic immunity or of representative institutions of international organizations in China, if there are applicable regulations stipulated by the SAFE, the opening, use, and cancellation of such accounts shall be subject to these regulations. If there are no applicable regulations, the opening, use, and cancellation of such accounts shall be conducted in accordance with the provisions of this Circular, which include the marking of NRA, etc.  

13. The Foreign Exchange Administrations shall impose a penalty for any acts in breach of the provisions of this Circular according to the foreign exchange administration regulations including the Regulation of the Peoples Republic of China on Foreign Exchange Administration.
14. This Circular shall take effect as of August 1, 2009, except for the provision on submitting detailed information about account opening, balances, as well as receipts and payments of domestic foreign exchange accounts of overseas institutions via the foreign exchange account management information system to the Foreign Exchange Administrations. The SAFE shall separately provide information on the specific time for implementing the latter provision.  
This Circular shall be interpreted by the SAFE.
On receiving this Circular, all SAFE branches and foreign exchange administrative departments shall transmit it in a timely manner to the central sub-branches, sub-branches, and designated foreign exchange banks under their administration. For any questions arising from implementation of this Circular, please provide timely feedback to the General Affairs Department of the SAFE. 

Tel: 68402429, 68402129    Fax: 68402430

                                               July 13, 2009

 

 

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Circular of the State Administration of Foreign Exchange on Issuing the Regulations on Foreign Exchange Administration of the Overseas Direct Investment of Domestic Institutions

Date:2009-07-13

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

For the purpose of carrying out the go-global strategy of development, promoting the healthy development of overseas direct investment of domestic institutions, implementing the balanced management of cross-border capital flows, and safeguarding the basic equilibrium in the balance of payments of China, the SAFE has formulated the Regulations on Foreign Exchange Administration of the Overseas Direct Investment of Domestic Institutions (hereinafter referred to as the Regulations) in line with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other relevant regulations. The Regulations are herein promulgated and shall take effect as of August 1, 2009. Please comply with the Regulations in handling the relevant businesses.

On receiving this Circular, all SAFE branches and foreign exchange administrative departments shall transmit this Circular in a timely manner to all sub-branches, urban commercial banks, rural commercial banks, and foreign-funded banks under their administration. All Chinese-funded designated foreign exchange banks shall transmit this Circular in a timely manner to the branches under their administration.

July 13, 2009

 

Regulations on Foreign Exchange Administration of the Overseas Direct Investment of Domestic Institutions

Chapter ` General Provisions

Article 1 In order to promote and facilitate the overseas direct investment activities of domestic institutions, standardize the foreign exchange administration of overseas direct investment, and promote a basic equilibrium in the balance of payments of China, these Regulations are hereby formulated in line with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other relevant regulations.

Article 2  Overseas direct investment as stated in these Regulations refers to acts by domestic institutions wherein the domestic institutions establish or acquire rights or interests outside the territory of China, such as ownership, rights of control or business management rights of existing enterprises or projects by means of establishment (sole proprietorships, joint ventures, cooperative business operations), mergers and acquisitions, equity participation, and so forth after undergoing examination and receiving approval from the overseas direct investment authorities.

Article 3 The State Administration of Foreign Exchange and its branches (hereinafter referred to as the Foreign Exchange Administrations) are responsible for implementing supervision and management over the foreign exchange receipts and payments and the foreign exchange registration arising from the overseas direct investment of domestic institutions.

Article 4  Domestic institutions can make overseas direct investments with self-owned foreign exchange funds, domestic foreign exchange loans in conformity with the regulations, and foreign exchange purchased with RMB or tangible assets, intangible assets, and other foreign exchange assets examined and approved by the Foreign Exchange Administrations. Profits generated from the overseas direct investment of domestic institutions may also be retained overseas for the purpose of overseas direct investment.

Self-owned foreign exchange funds referred to in the preceding paragraph include: foreign exchange funds in foreign exchange accounts under the current account, capital accounts of foreign-invested enterprises, and so forth.

Article 5 The State Administration of Foreign Exchange can make adjustments to the relevant policies concerning the scope of the sources and management modes of the foreign exchange funds for the overseas direct investment of domestic institutions and the overseas retention of profits generated from their overseas direct investment according to the situation in Chinas balance of payments and the situation in Chinas overseas direct investment.

 

Chapter a Foreign Exchange Registration and Outward Remittances of Funds for Overseas Direct Investment

Article 6 The Foreign Exchange Administrations shall carry out a foreign exchange registration and recording system for overseas direct investments of domestic institutions and for assets and relevant rights and interests generated from such investments.

Domestic institutions shall demonstrate the sources of the foreign exchange funds for their overseas investment when registering foreign exchange for overseas direct investment at the Foreign Exchange Administrations in their localities.

Article 7 After undergoing examination and obtaining approval from the overseas direct investment authorities, domestic institutions shall register the foreign exchange for their overseas direct investment at the Foreign Exchange Administrations in their localities with the following materials:

1. Filing a written application and filling out the Application Form for Foreign Exchange Registration of Overseas Direct Investment (for the format of the form, please refer to Attachment 1);

2. Materials demonstrating the sources of the foreign exchange funds;

3. A valid business license or evidence of registration and the organizational code certificate of the domestic institution;

4. Approval documents or certificates that have been issued by the overseas direct investment authorities concerning the investments.

5. In cases where preceding expenses are remitted outward, the relevant documents explaining such remittances as well as evidence of such remittances shall be provided;

6. Other materials required by the Foreign Exchange Administrations.

The Foreign Exchange Administrations shall register the relevant situations in the corresponding business systems after examining and verifying the said materials, and shall grant the domestic institutions a foreign exchange registration certificate for overseas direct investment. The domestic institutions shall handle the foreign exchange receipt and payment business under overseas direct investment through the use of the said registration certificate.

Where one case of overseas direct investment is made collaboratively by a number of domestic institutions, the Foreign Exchange Administrations in the localities of the domestic institutions shall separately grant the relevant domestic institutions a foreign exchange registration certificate for overseas direct investment, and shall register the corresponding situations in the relevant business systems.

Article 8 Domestic institutions shall complete the procedures for outward remittances of overseas direct investment funds at the designated foreign exchange banks by presenting to the banks the approval document and the foreign exchange registration certificate for overseas direct investment issued by the overseas direct investment authorities. The designated foreign exchange banks shall handle the procedures after examining the authenticity of the documents.

The cumulative amount of money remitted outward by the designated foreign exchange banks for handling remittances for overseas direct investment funds for domestic institutions shall not exceed the total amount of foreign exchange funds for overseas direct investment registered in advance by these domestic institutions in the relevant business systems of the Foreign Exchange Administrations.

Article 9  The domestic institutions shall, within 60 days after the occurrence of the following circumstances, handle the foreign exchange registration, the modification or recording procedures for overseas direct investment with a foreign exchange registration certificate for overseas direct investment, the approval document or recording document issued by the overseas direct investment authorities, as well as the relevant materials demonstrating the authenticity of such documents at the Foreign Exchange Administration in their localities:

1. When the domestic institution retains the profits generated from their overseas direct investment outside the territory of China and foreign exchange revenue under the capital account generated from capital reduction, equity conversion, liquidation, and so forth of overseas enterprises for the purpose of establishing, acquiring, or participating in the equity of unregistered overseas enterprises, shall complete the foreign exchange registration procedures for the said direct investment activities;

2. In case of any changes in the basic information of the registered overseas enterprises, such as an modification of the corporate name, terms of operation, JV and cooperative partners, and manner of cooperation and so forth, or the occurrence of a capital increase, capital reduction, equity transfer or swap, merger or split, and so forth, the domestic institutions shall go through the foreign exchange registration modification procedures for overseas direct investment in light of the said change in circumstances;

3. In the case of the occurrence of significant matters such as long-term equity or debt investment, external guarantees, and so forth of registered overseas enterprises which do not involve a change in capital, the domestic institutions concerned shall complete the foreign exchange recording procedures for overseas direct investment for the said significant matters.

Article 10  In cases where the equity of overseas enterprises held by domestic institutions is cancelled due to causes such as equity transfers, bankruptcy, dissolution, liquidation, expiry of operations, and so forth, the domestic institutions shall, within 60 days after obtaining relevant the documentary evidence issued by the overseas direct investment authorities, complete the foreign exchange registration procedures for the cancellation of the overseas direct investment by presenting the relevant materials to the Foreign Exchange Administrations in their localities.

Article 11 The domestic institutions may provide commercial loans or external financial guarantees for the enterprises in which its overseas direct investment is made in line with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other relevant regulations.

Article 12 Where a domestic institution makes an investment in a country or region with foreign exchange controls, such institution can open a special foreign exchange account for payments and receipts of foreign exchange funds related to the investment in a country or region not subject to foreign exchange controls in line with the regulations.

 

Chapter b Outward Remittances of Preceding Expenses for Overseas Direct Investment

Article 13 The preceding expenses for overseas direct investmentrefer to expenses payable overseas by domestic institutions related to their overseas direct investment prior to the establishment of projects or enterprises by the domestic institutions through overseas investment, which include but are not limited to:

1. Guarantee funds payable by the domestic institutions for the purchase of equity or overseas asset interests and rights of overseas enterprises according to the provisions as stipulated by the laws in the localities of the projects or the requirements of the transferor;

2. Bidding deposits payable by the domestic institutions in the process of bidding and tendering of overseas projects;

3. Expenses needed for conducting a market survey, leasing an office site and equipment, recruiting staff, and inviting overseas intermediary institutions to provide services prior to the initiation of the overseas direct investment.

Article 14 The preceding expenses remitted by the domestic institutions overseas normally shall not be more than 15% of the total amount of overseas direct investment which the domestic institutions have already applied for with the direct investment authorities (hereinafter referred to as the total amount of overseas direct investment). The domestic institutions shall apply for the remittances of such expenses at the Foreign Exchange Administrations in their localities with the following materials:

1. A written application (including the total amount of overseas direct investment, the amount of contributions by each party, the form of contributions, and demonstration of the amount, use, fund sources, and so forth of the preceding expenses);

2. A valid business license or evidence of registration and the organizational code certificate of the domestic institutions;

3. Relevant documents demonstrating the participation of the domestic institutions in tendering, acquisition, or JV and cooperative projects (including a letter of intent signed by the Chinese and foreign parties, a memorandum or framework agreement, and so forth);

4. The written application submitted by the domestic institutions to the overseas direct investment authorities;

5. A Letter of Commitment in written form issued by the domestic institutions on the use of the preceding expenses;

6. Other relevant materials as required by the Foreign Exchange Administrations.

Where the preceding expenses remitted outward by the domestic institutions for overseas direct investment exceed 15% of the total amount of overseas direct investment, the domestic institutions shall file an application for such remittances with the said materials to the SAFE branches in their localities (including the foreign exchange administrative departments).

The designated foreign exchange banks shall handle the foreign exchange purchase and payment procedures for the domestic institutions on the basis of the approval documents issued by the Foreign Exchange Administrations, and shall provide feedback on relevant information to the Foreign Exchange Administrations in a timely manner.

Article 15 The preceding expenses remitted by domestic institutions overseas shall be listed in the total amount of overseas direct investment of the domestic institutions. The designated foreign exchange banks shall deduct the amount of the outward remitted preceding expenses from the total amount of overseas direct investment when handling the outward remittance of overseas direct investment funds of domestic institutions.

Article 16 Where domestic institutions fail to complete the examination and approval procedures for overseas direct investment within 6 months after the date of the outward remittance of the preceding expenses, the domestic institutions shall transfer the remaining funds in their overseas accounts to the original domestic foreign exchange accounts from which the funds have been remitted. In cases where the remitted foreign exchange funds are identified as foreign exchange purchased with RMB, the domestic institutions can complete the procedures for exchange settlement at the designated foreign exchange banks with the original foreign exchange purchase vouchers.

The Foreign Exchange Administrations in the localities of the domestic institutions shall be responsible for supervising the inward transfer of the remaining preceding expenses by domestic institutions. If an extension of the 6-month period is required for this work, the said 6-month period can be properly extended after the extension is examined and approved by the Foreign Exchange Administrations that have conducted the examination and approval procedures for the remittance of the preceding expenses; however, the period of extension shall not exceed a maximum of 12 months.

 

Chapter c Inward Remittances of Funds and Foreign Exchange Settlement under Overseas Direct Investment

Article 17 Where the domestic institutions remit profits generated from their overseas direct investment to within China , such profits can be deposited in foreign change accounts under the current account of the said domestic institutions or can handle the foreign exchange settlement formalities.

The designated foreign exchange banks shall handle the procedures for account entering or exchange settlement of profits generated from the overseas direct investment of domestic institutions after ensuring the authenticity of the relevant materials of the domestic institutions, such as the foreign exchange registration certificate for overseas direct investment, the relevant financial statement and decision on the disposal of the profits of the overseas enterprises, the annual examination and verification inspection report for the previous year and so forth.

Article 18 The foreign exchange revenue under the capital account of the domestic institutions that  is generated from capital reductions, equity transfers, liquidation, and so forth of overseas enterprises established by such institutions shall be put into an account via the special foreign exchange accounts for asset realization, or shall be retained outside of China with the approval from the Foreign Exchange Administrations. The opening and account entering of the special foreign exchange accounts for asset realization shall be subject to examination and approval of the Foreign Exchange Administrations in the localities of the domestic institutions according to the relevant regulations. Foreign exchange settlement of funds in such accounts shall be subject to applications handled at the designated foreign exchange banks according to the relevant regulations.

Article 19 Where domestic institutions transfer in full or in part the equity of enterprises under their overseas direct investment to other domestic institutions, the relevant funds shall be paid in RMB within the territory of China . The transferors of such equity shall complete the change or cancellation procedures for foreign exchange registration for their overseas direct investment at the Foreign Exchange Administrations in their localities. The transferees of such equity shall complete the foreign exchange registration procedures for overseas direct investment for transferred equity at the Foreign Exchange Administrations in their localities.

 

Chapter d Supplementary Provisions

Article 20 Domestic institutions (excluding financial institutions) shall participate in the annual inspections in line with the relevant regulations on joint annual inspections for overseas investment. Where one case of overseas direct investment is jointly implemented by a number of domestic institutions, such institutions shall separately participate in the foreign exchange annual inspection at the Foreign Exchange Administrations in their localities.

Article 21 Direct investment made by domestic institutions in Hong Kong SAR, Macao SAR, and Taiwan Province shall be subject to administration in line with these Regulations.

Article 22  Unless otherwise stipulated by the relevant supervisory departments on fund use of overseas direct investment of domestic financial institutions, the foreign exchange administration on overseas direct investment of domestic financial institutions shall be implemented in line with these Regulations.

Article 23 Such businesses as foreign exchange receipts and payments and foreign exchange registration under overseas direct investment by domestic institutions shall be handled via the corresponding business systems according to the relevant regulations.

The designated foreign exchange banks shall provide feedback to the Foreign Exchange Administrations on information about the foreign exchange receipts and payments under overseas direct investment via the relevant business systems.

Article 24 Any domestic institution in breach of these Regulations shall be penalized by the Foreign Exchange Administrations in line with the Regulations of the Peoples Republic of China on Foreign Exchange Administration. Where the acts of a domestic institution constitute a crime, such institution shall assume criminal responsibility in accordance with the relevant laws.

Article 25 These Regulations shall be interpreted by the State Administration of Foreign Exchange.

Article 26 These Regulations shall take effect as of August 1, 2009. Other regulatory documents listed in Annex a shall be annulled as of the date of implementation of these Regulations. Where previous regulations are inconsistent with these Regulations, these Regulations shall prevail.

 

Annex (omitted)

 

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Circular of the General Affairs Department of the SAFE on Issues Concerning the Declaration of Balance of Payments Statistics for RMB Settlement of Cross-border Trade

Date:2009-07-06

 

The SAFE branches and foreign exchange administrative departments in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks:
For purposes of clarifying issues regarding the declaration of balance of payments statistics for RMB settlement of cross-border trade so as to facilitate the handling of relevant businesses by pilot enterprises and banks, the relevant requirements are hereby notified in accordance with the Administrative Measures for Pilot RMB Settlement of Cross-border Trade (Bulletin No. 10 [2009] by the Peoples Bank of China, Ministry of Finance, Ministry of Commerce, General Administration of Customs, State Administration of Taxation and China Banking Regulatory Commission).
I. Cross-border RMB flows and stock information arising from RMB settlement for cross-border trade are subject to the declaration of balance of payments statistics, which shall be made in line with the Measures for Declaration of Balance of Payments Statistics and the relevant provisions.
II. Pilot enterprises and domestic settlement banks shall make indirect declarations of balance of payment statistics in accordance with the Operating Rules on the Declaration of Balance of Payments Statistics via Financial Institutions (Trial) and the relevant regulations. When pilot enterprises receive cross-border RMB payments, they shall complete the Declaration Form for Foreign-related Income and comply with the declaration procedures within five working days. When pilot enterprises make external RMB payments, they shall make the declaration in parallel with submitting the Application Form for Overseas Remittances or the Advisory Note on External Payments/Acceptances. 
For income in RMB arising from cross-border trade, domestic correspondent banks shall transmit the original remittance information to the domestic settlement banks so as to facilitate the efforts of the settlement banks in identifying the source of the RMB remittances and in notifying the pilot enterprises in a timely manner regarding making indirect declarations of the balance of payments statistics.
The domestic settlement banks shall improve and perfect their interface programs in accordance with the Circular of the State Administration of Foreign Exchange Concerning the Preparatory Work for Further Implementing the Pilot Operations of the SAFE Sub-project of the Jinhong Project (Huifa No. 7  [2009]).
III. Domestic correspondent banks shall report data on overseas assets and liabilities in RMB of financial institutions by filling out Form 1: Declaration Form for Inter-bank Deposits and Loans of Financial Institutionsin accordance with the Circular of the Operational Rules on the Declaration of Overseas Assets and Liabilities, and Profits and Losses by Financial Institutions (Huiguofazi No. 13 [1996]) and the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning the Declaration of Overseas Assets and Liabilities, and Profits and Losses by Financial Institutions (Huizongfa No. 112 [2005]). Furthermore, the domestic correspondent banks shall report RMB account data by filling out the Non-resident RMB Account Balance and Change Form of Banks (see attachment) in accordance with the Circular of the General Affairs Department of the State Administration of Foreign Administration on Issues Concerning the Reporting of Non-resident RMB Account Data by Domestic Banks (Huizongfa No. 51 [2008]). 
When domestic settlement banks provide overseas enterprises with trade financing services in RMB, the said banks shall make the declaration on the overseas assets and liabilities, and profits and losses of financial institutions in accordance with the Circular on the Issuance of the Operational Rules on the Declaration of Overseas Assets and Liabilities, and Profits and Losses by Financial Institutions (Huiguofazi No. 13 [1996]).  
IV. Upon receipt of this Circular, all SAFE branches and foreign exchange administrative departments shall transmit it in a timely manner to the central sub-branches or sub-branches under their administration as well as to the local commercial banks, rural commercial banks, rural credit cooperatives and foreign banks.
For any questions arising from implementation of this Circular, please provide timely feedback to the SAFE.  The telephone number: 010-68402447.

                                                          July 6, 2009

 

 

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Circular of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Administration of Overseas Lending Granted by Domestic Enterprises

Date:2009-06-09

 

For the purposes of facilitating and supporting the use and operation of foreign exchange funds by domestic enterprises, improving the efficiency of fund use, broadening the follow-up financing channels of overseas enterprises, regulating the management and statistics of external claims, and promoting the "go-global" move of domestic enterprises, and in line with the Regulations of the People's Republic of China on Foreign Exchange Administration and the relevant laws and regulations, the issues concerning the foreign exchange administration of overseas lending granted by domestic enterprises are hereby notified as follows:
1. The "overseas lending" in this Circular refers to the financing mode of domestic enterprises (excluding financial institutions, hereinafter referred to as the "lenders") that directly provide lending to their wholly-owned subsidiaries or share-holding enterprises legally established abroad (hereinafter referred to as the "borrowers") in accordance with the amount, interest rate, and term as agreed upon in the contract and within the approved quota.
The overseas lending can also be made in the form of entrusted lending by designated foreign exchange banks and finance companies of enterprise groups that are established upon approval and are entitled to engage in foreign exchange businesses.
2. The local foreign exchange administration branches, also known as the foreign exchange administrative departments (hereinafter referred to as the foreign exchange administrations) where the lenders are located shall be responsible for the supervision and management of the following issues involved in the overseas lending including ratification of the quota, registration, the special account, and the funds exchange and transfer etc.
3. The domestic enterprises engaging in overseas lending shall comply with the relevant regulations of this Circular and other foreign exchange administration rules, and shall accept the administration, supervision, and examination of the foreign exchange administrations.
4. The practice of balanced management is adopted in engaging in overseas lending, and the domestic enterprises may, within the quota of overseas lending approved by the foreign exchange administrations, remit funds abroad either in full or in batches.
The validity of the period of the quota for overseas lending is two years from the date of obtaining approval from the foreign exchange administrations on verification of the quota. Where the lenders need to continue the use of funds after the expiry of the period of validity, the lender shall, within one month before the expiry of the period of validity, file an application for renewal with the local foreign exchange administrations.
5. The balance of the overseas lending of the lenders shall not exceed 30% of the owners equity of the lenders, and shall not exceed the total amount of the agreed investment of the Chinese side for which the borrowers have gone through the relevant registration formalities. If any enterprise has the need to breach the aforesaid proportions, the local foreign exchange administrations where the lenders are located shall, after initial examination of the conditions, report them to the State Administration of Foreign Exchange for review.
6. The lenders may engage in overseas lending to borrowers with self-owned foreign exchange funds, foreign exchange funds purchased with RMB, and funds in the foreign currency funds pool as approved by the foreign exchange administrations.
7. The lenders and borrowers shall comply with the following requirements:
(1). Both the lenders and the borrowers shall be registered and established according to the law, and the registered capital of the lenders and the borrowers shall be put in place in full;
(2). Both the lenders and the borrowers shall have a track record of continuous and sound operations, have a solid financial system and internal control system, and have not violated the foreign exchange regulations in the past three years;
(3). All overseas direct investment made by the lenders in the past years shall have been approved by the domestic authority in charge of overseas investments and shall have gone through the registration formalities in the foreign exchange administrations, and the lenders shall be rated as Grade Two or above in the latest joint annual inspection of overseas investment (with the exception of enterprises that have been established for less than one year);
(4). As for those lenders that have already engaged in overseas lending, the previous overseas lending thereof shall have operated well, and they shall not have violated any regulations.
8. The lenders shall apply for the handling of the overseas lending business with the local foreign exchange administrations by submitting the following materials:
(1). A written application, with content including but not limited to: basic information about the lenders, basic conditions of the overseas enterprises, amount of overseas lending, sources of funds and a commitment letter for overseas lending (the content of the commitment letter shall include: the purposes of the overseas lending in conformity with the relevant laws and regulations of China and the countries or regions where the lenders are located; the lenders shall collect the principal and interest of the lending in a timely manner and in line with the agreement of the contract; the lenders shall transfer back the funds lent overseas in accordance with the requirements of the State Administration of Foreign Exchange in a timely manner when the balance of payments of China is severely affected, etc.).
(2). The lending agreement signed by the lenders and the borrowers or the entrusted lending agreement signed by the lenders, the borrowers, and the designated domestic foreign exchange banks or finance companies under entrustment shall make clear the following items including the amount, interest rate, term, guarantee mode, mode of payment of the principal and interest of the lending, etc.
(3). Explanations of the conditions, such as the financial audit report of the lenders for the latest period (if the lenders are foreign-invested enterprises, the lenders shall have undergone a joint annual inspection of foreign-invested enterprises for two consecutive years, and shall provide the foreign exchange registration certificate and the sheet of foreign exchange receipts and payments of the previous year for the foreign-invested enterprises), the business license with the annual examination, explanations on the use and repayment of previous overseas lending; if the lenders plan to offer lending with self-owned foreign exchange funds, such lenders shall submit the reconciliation statements of the foreign exchange account up to the end of the previous month of the application filing date; if the lenders plan to purchase foreign exchange for overseas lending, the lenders shall demonstrate the amount of foreign exchange to be purchased;
(4). The foreign exchange registration certificate for overseas investment and the financial audit report for the latest period of the lenders;
(5). Other supplementary materials as required by the foreign exchange administrations.
The local foreign exchange administrations where the lenders are located shall, within 20 days after receiving the complete application materials and having audited them to be correct, make a decision to reply or not to reply; If a reply is made, the quota for the overseas lending shall be checked and ratified.
9. The lenders, after obtaining the quota for overseas lending as checked and ratified by the foreign exchange administrations, may directly apply to open a special account for overseas lending with the designated foreign exchange banks upon the strength of the approval document for overseas lending. If the lenders shall engage in more than one overseas loan, such lenders may uniformly open a single overseas lending special account and transfer the relevant funds through the account.
Where the lenders need to write-off an overseas lending special account, the lenders may apply to write-off the overseas loan special account with the designated foreign exchange banks upon the strength of the approval documents for the overseas lending and the relevant warrants concerning the withdrawal of funds lent, etc.
All the overseas lending funds must be remitted outwards through the overseas lending special accounts, and the principal and interest funds must be remitted back to the overseas lending special accounts.
10. The scope of the receipts of the overseas lending special accounts includes: foreign exchange funds transferred inwards from the foreign exchange capital account or the foreign exchange account under the current account of the lenders; foreign exchange funds transferred inwards from the foreign currency funds pool account of the lenders, which have been approved by the foreign exchange administrations; foreign exchange funds purchased for overseas lending; principal and interest for the loan received back from the overseas borrowers; performance guaranty funds paid by the guarantor of the overseas debt.
The scope of the payments includes: overseas lending granted to borrowers according to the overseas lending contract; returned principal and interest of overseas lending which are transferred into the corresponding foreign exchange capital account, foreign exchange account under the current account, or foreign currency funds pool account of the original transferred-inward funds; partial settlement of the originally purchased foreign exchange.
11. Where the lenders engage in overseas lending with self-owned foreign exchange funds, such lenders may directly handle the domestic foreign exchange transfer procedures at the designated foreign exchange banks upon the strength of the approval documents for overseas lending; where the lenders engage in overseas lending with foreign exchange funds purchased with RMB, such lenders may directly handle the foreign exchange purchase and domestic funds transfer procedures with the designated foreign exchange banks upon the strength of the approval documents for overseas lending.
12. Where the funds for lending are remitted outbound from the overseas lending special accounts, or funds, such as the principal and interest or performance guarantees, are transferred inbound into the overseas lending special accounts, the lenders shall apply for approval with the local foreign exchange administrations by submitting a written application, the overseas lending approval documents, a reconciliation statement of the overseas lending special account, etc. The local foreign exchange administrations shall, after confirming that such materials are correct, issue the approval instruments for foreign exchange business under the capital account, upon which the designated foreign exchange banks shall handle the relevant procedures for outbound or inbound remittances.
13. Where the overseas lending expires or the overseas borrowers request repayment in batches or advance repayments, the funds of the principal and interest, after being remitted into the overseas lending special accounts upon the approval of the local foreign exchange administrations, shall first be transferred back into the foreign exchange capital account from which the funds were originally transferred out in an amount equivalent to the originally transferred-out amount. After fully complementing the amount transferred out, the remaining amount may be transferred into the foreign exchange account under the current account. As for originally purchased foreign exchange, the lenders may directly handle the foreign exchange settlement procedures with the designated banks upon the strength of the approval documents for the original overseas lending and the vouchers for foreign exchange purchases.
14. The repayment funds for overseas lending shall not, when being remitted and transferred into the foreign exchange capital account of the lenders, reach the highest limit of the foreign exchange capital account; the designated foreign exchange banks where the repayment is remitted and transferred shall, in replying to the inquiry request of the designated foreign exchange bank concerning the repayment of such funds, indicate the letters for repayment fundsin the remarks column, and no accounting firm shall handle the capital verification procedures for foreign-invested enterprises upon such replies to the inquiry request of the designated foreign exchange bank.
15. The lender shall accurately and timely declare the following information, such as the outward remittances and repayment of overseas lending funds, in accordance with the relevant regulations on the statistics and declaration of the balance of payments.
16. The foreign exchange administrations shall confirm the lending qualifications and quotas for lending of the lenders in the joint annual inspection of overseas investment enterprises. As for those lenders that do not participate in the joint annual inspections or fail to pass the confirmations, the foreign exchange administrations shall require such lenders to withdraw the principal and interest for the overseas lending, and the qualifications of such lenders for lending overseas shall not be renewed.
17. Where the lenders need to convert the overseas lending into equity investment, the lenders shall handle the overseas investment approval and foreign exchange registration change procedures in line with the relevant regulations concerning overseas investment.
18. The SAFE may adjust at the right timing the qualifications, sources, quantity, and term of the overseas lending of domestic enterprises in accordance with the situation in Chinas balance of payments and overseas lending.
19. Where any lender violates the regulations of this Circular, the foreign exchange administrations shall impose a penalty on such a lender in line with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and the relevant rules on foreign exchange administration. Where the circumstances are serious, the foreign exchange administrations shall not approve the overseas lending or renewal applications; where overseas loans have been made, the foreign exchange administrations shall order the lender to terminate and retrieve such overseas lending.
20. Where any designated foreign exchange bank handles foreign exchange businesses in violation of the regulations of this Circular, the foreign exchange administrations may impose penalties on such banks in line with the Regulations of the Peoples Republic of China on the Foreign Exchange Administration and the relevant foreign exchange administration regulations.
21. The measures for the administration of overseas lending of non-bank financial institutions shall be formulated separately.
22. This Circular shall be interpreted by the State Administration of Foreign Exchange.
23. This Circular shall come into effect as of August 1, 2009. If there are any conflicts between the clauses concerning the administration of foreign exchange for overseas lending as set down in the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Internal Operations and Management of Foreign Exchange Funds of Transnational Corporations (Huifa No. 104 [2004]) and the regulations in this Circular, this Circular shall prevail.

 

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Circular of the SAFE on adjusting the approval authority for certain foreign exchange businesses under the capital account

Date:2009-05-27

 

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 as well as the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:
In order to streamline administrative procedures and processes and promote facilitation of investment and trade, the State Administration of Foreign Exchange (SAFE) hereby decides to make adjustments to the approval authority for certain foreign exchange businesses under the capital account in accordance with the Administrative Licensing Law of the PRC and the Regulations on Foreign Exchange Administration of the PRC.  The relevant issues are as follows:
I. When a foreign-invested enterprise applies to open an inter-city capital account, it shall obtain approval from the local branch or foreign exchange administrative department of the SAFE (hereinafter referred to as the local branch).
II. The purchase and payment of foreign exchange by foreign parties of foreign-invested enterprises for projects left over from history with guaranteed fixed returns is subject to approval by the local branch of the locality where the project with the guaranteed fixed return is located. 
III. Financing (excluding bonds issuance) and non-financing external guarantees for overseas enterprises provided on a transaction-by-transaction basis by non-banking financial institutions and enterprises, where the guarantees are provided in conformity with the relevant regulations, are subject to the approval of the local branches of the locality where the guarantor is located on a transaction-by-transaction basis.  
IV. External guarantees provided by domestic institutions for bond issuances (including commercial bills) of overseas institutions are subject to the approval of the local branch of the locality where the guarantor is located.
V. When a fund management company of a securities company applies to replace its Business License for Foreign Exchange Operations of Securities, which does not involve an adjustment in the business scope, it shall obtain approval from the local branch.
VI. The termination of foreign exchange business by a fund management company of a securities company is subject to the approval of the local branch.
VII. Open-ended funds set up by qualified overseas institutional investors in China with the amount of monthly net purchases or net redemptions exceeding the equivalent of USD 50 million are subject to the approval of the local branch of the locality where the trustee is located.
VIII. When the finance corporation of an enterprise group applies to suspend its business of spot settlement and sale of foreign exchange, it shall obtain approval from the local branch of the locality where the said finance company is located.
IX. Authorization for foreign exchange purchase and payment by an emigrant for property transfer is subject to the approval of the local branch of the locality of the emigrants former registered permanent residence. If the total amount of the external transfer exceeds the equivalent of RMB 500,000, the local branch shall report the approval reply letter to the SAFE for the record.    
X. Authorization for foreign exchange purchase and payment of inherited property transfers is subject to the approval of the local branch of the locality of the deceaseds registered permanent residence before death. If the total amount of the external transfer exceeds the equivalent of RMB 500,000, the local branch shall report the approval reply letter to the SAFE for the record. 
The local branch can make relevant authorizations to the central sub-branches (sub-branches) under its jurisdiction according to the situations in the area under its jurisdiction and in compliance with the requirements of the related internal control system.
After the said adjustments to the approval authority are completed, the SAFE shall formulate and perfect operational procedures and policy standards in accordance with the principle of clarifying authority and responsibility, making arrangements on a scientific basis, keeping risks under control, and facilitating operations for the involved parties to enhance guidance and supervision over the local branches. The local branches shall establish a corresponding internal control system, enhance staff training, and strengthen post-supervision and inspection of issues related to such approvals, and fulfill reporting procedures according to the related regulations. When handling examinations and approvals, the local branches shall strictly abide by the relevant rules and regulations regarding operational processes for foreign exchange business under the capital account. If any of major circumstances or policy-related problems are encountered, the local branches shall ask for instructions and submit reports in a timely manner to the SAFE. All branches shall further strengthen statistics and supervision, and report the relevant statistics to the SAFE timely and accurately in strict conformity with the relevant regulations.  

This Circular shall come into effect as of June 1, 2009.

                                                             May 6, 2009


affix1:
Operating Instructions for Designated Foreign Exchange Banks to Handle Relevant Businesses

 

 

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Circular of the SAFE on Announcing the List of Repealed and Expired Regulatory Documents on Foreign Exchange Administration

Date:2009-05-20

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, and the SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: 
In order to promote the facilitation of trade and investment and the smooth and comparatively rapid development of the economy, as well as to promote administration in line with the law in an all-round way, the State Administration of Foreign Exchange (SAFE) has put in order the foreign exchange administration regulations issued by December 31, 2008. This Circular contains the following:
I. Fifty-seven regulatory documents, of which the major content has been replaced by new regulatory documents, are repealed (for a list, please refer to Appendix 1).
II. Thirty-four regulatory documents, of which either the application period has expired or the revised objects have ceased to exist, are rendered invalid, and are declared to have expired (for a list please refer to Appendix 2).
The Circular will take effect as of the date of promulgation.

Appendix: (abridged)
1. List of regulatory documents repealed by the SAFE.
2. List of regulatory documents declared to have expired by the SAFE.


                                                           April 30, 2009

 

 

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Notice of the State Administration of Foreign Exchange on the Examination and Ratification of Short-term External Debt Quotas of Financial Institutions in 2009

Date:2009-04-17

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the head offices of the designated Chinese-funded foreign exchange banks:
For the purpose of responding to the macroeconomic policy adjustment of the state, giving full scope to the intermediary credit function of financial institutions, as well as promoting the growth of the entire economy and trade financing, the SAFE hereby provides notification on the examination and ratification of short-term external debt quotas of domestic financial institutions (hereinafter referred to as "financial institutions") in 2009 (from April 1, 2009 to March 31, 2010, hereinafter the same) and the following relevant policies:
I. Examined and ratified short-term external debt quotas of national-level Chinese-funded banks totaling USD 9.855 billion in the year 2009 (see addendum 1 for details).
Examined and ratified short-term external debt quotas of foreign-funded banks with legal person status and branches of foreign-funded banks adopting centralized management of the 2009 short-term external debt quotas totaling US$14.573 billion (see addendum 2 for details).
Examined and ratified short-term external debt quotas of Chinese and foreign-funded banks with legal person status and branches of foreign-funded banks without centralized management of short-term external debt quotas within the jurisdictions of the SAFE branches and foreign exchange administration departments (hereinafter referred to as the "SAFE branches") totaling US$8.448 billion (see addendum 3 for details).
II. All forms of short-term external debts of financial institutions shall be incorporated into the management of the outstanding short-term external debt quota, with the following exceptions:
(1). Accepted but unpaid letters of credit with a maturity of under 90 days (inclusive) and overseas agency payments with a maturity of under 90 days (inclusive);
(2). Non-resident individual deposits with an amount of less than US$500,000(inclusive) in the same legal-person bank
(3). Balances of various special accounts for foreign investors opened in the name of non-residents upon approval of the SAFE;
(4). Other cases specified by the SAFE that need not be incorporated into the management of the outstanding short-term external debt quota.
III. The Chinese and foreign-funded financial institutions entitled to the 2009 incremental quota shall use the quota increment totally to support import and export financing of domestic enterprises.
IV. Where a financial institution applies for the first time for the short-term external debt quota, the SAFE branch in the region where it is located shall examine and ratify the short-term external debt quota for it within the regional quotas, with the amount not exceeding twice the foreign exchange working capital or its capital.
As for a newly-established branch of a financial institution (FI) within the jurisdiction of a SAFE branch, if the branchs headquarters which is a legal-person institution (or the short-term external debt management bank) has been set up within the same territory, the SAFE branch in the region where the FI branch is located shall not examine and ratify the short-term external debt quotas for it.
After a branch of a foreign-funded financial institution is transformed into a legal-person institution, such legal-person institution shall, through the SAFE branch in the region where it is registered, apply to the SAFE to inherit the short-term external debt quotas of the original short-term external debt management bank or of all the branches within the borders of China.
V. The SAFE branches, in compliance with the guiding principles of facilitating economic growth, supporting trade financing, preventing external financial risks, and promoting a balance of payments equilibrium, based on the use of the short-term external debt quotas of financial institutions within their respective jurisdictions and the characteristics of the fund sources and the operational structure, shall fairly and reasonably allocate and adjust the short-term external debt quotas for the purpose of improving the efficiency in the use of the quota.
The SAFE branches shall guide and encourage financial institutions to expand the trade financing business, and promote the healthy development of the entire economy and foreign trade. The quota increment of the various regions within the jurisdictions of the SAFE branches shall be used preferentially for banks with a larger trade settlement volume, ensuring that the newly added quotas are totally used to support financing for the import and export business of domestic enterprises.
VI. For the purposes of reasonably utilizing foreign exchange, improving the efficiency of the use of the short-term external debt quota, as well as meeting the requirements of regional economic development, in accordance with the specific circumstances the SAFE transfers to its branches the examination and ratification authority of the short-term external debt quotas of Chinese and foreign-funded legal-person financial institutions with fewer branches and a small scale of assets. The SAFE branches in the regions where the headquarters of the legal-person institutions (or the short-term external debt management banks) are located shall examine and ratify the quotas for them. Where such quotas fill the regional quotas of the SAFE branches, the SAFE shall adjust the regional quotas accordingly.
VII. Financial institutions shall borrow, use, and pay the external debt in strict compliance with the Interim Provisions for Statistics and Supervision of the External Debt, the Interim Measures for the Management of the External Debt, and other regulations on external debt management, and shall carry out the external debt registration in the external debt statistical and supervisory system.
VIII. The SAFE branches shall conduct strict management and supervision on the implementation of the short-term external debt quotas of financial institutions within their respective jurisdictions and urge the financial institutions to reasonably use the short-term external debt quotas in compliance with the macro policies and decisions of the state. The SAFE branches shall, within 15 working days after the end of each quarter, report to the SAFE detailed information on the short-term external debt quotas of the financial institutions within their respective jurisdictions.
IX. Other requirements shall be implemented in accordance with the relevant provisions in the Notice of the SAFE on Distributing the Short-term External Debt Quotas of Financial Institutions in 2008 (Huifa No. 14 [2008]).
Hereby notified.

(Addendum elided)

                                                                March 17, 2009

 

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Notice of the SAFE on the Reporting and Submission of the Statistical Statement on Foreign Exchange Assets and Liabilities by Chinese-Funded Financial Institutions

Date:2009-01-29

 

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 branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all national Chinese-funded designated foreign exchange banks, National Councils for Social Security Funds, and China Investment Corporations:
In order to understand the risks of Chinese-funded financial institutions in foreign investment, in October 2008 the State Administration of Foreign Exchange issued the Circular of the State Administration of Foreign Exchange on Chinese-funded Financial Institutions Submitting Foreign Exchange Asset-Liability Statistical Reports on a Trial Basis (Huifa [2008] No. 52).  So as to further strengthen the monitoring of the statistics on foreign exchange assets and liabilities of Chinese-funded financial institutions and to clarify the requirements for reporting and submission, and in light of the problems discovered and encountered by the financial institutions in the process of the trial implementation of the reporting and submission, the State Administration of Foreign Exchange amended the statistical statement of the foreign exchange assets and liabilities of Chinese-funded financial institutions and made it official.   It is hereby notified as follows:
 I. The subjects submitting the statement in question include Chinese-funded commercial banks, policy banks, insurance companies, securities companies, futures companies, fund management companies, finance companies, and other Chinese-funded financial institutions that have been legally established in China and have been approved to engage in foreign exchange business as well as the National Councils for Social Security Funds and China Investment Corporations.
II. The Chinese-funded financial institutions in this Notice refer to the legal persons of the Chinese-funded financial institutions, including their domestic and overseas branches.
III. The statistical statements of the foreign exchange assets and liabilities of the Chinese-funded financial institutions include 10 statements (see Annexes 1 and 2 for the format of the statements and a description of how they are to be completed). The statistical range of Statement 1 to Statement 4 includes the foreign exchange assets, liabilities, and currency structure.  Statement 5  to Statement 10 provide comprehensive and specific investment statistics on foreign exchange securities and derivative financial products of the Chinese-funded financial institutions; their statistical range includes those transactions that shall be recorded on the balance sheet or the profit and loss statement of the financial institutions, including the balance-sheet transactions, self-conducted derivative financial transactions, and risk-bearing transactions for clients.
IV. The submission subjects shall fill in and report the above 10 statements on a monthly basis. The set of statements in question practices a zero reporting and submission system.
V. The Beijing headquarters of the national Chinese-funded designated foreign exchange banks, the National Council for Social Security Funds, and the China Investment Corporation shall, according to the principles of the headquarters, collect the data of all the branches within their systems and directly submit the data to the State Administration of Foreign Exchange within 10 working days after the end of the month. Other Chinese-funded financial institutions (including national Chinese-funded designated foreign exchange banks, local Chinese-funded banks, as well as Chinese-funded non-bank financial institutions with headquarters in places other than Beijing) shall, according to the principles of the headquarters, collect the data of all the branches within their systems and submit the data to the local branches of the State Administration of Foreign Exchange and the Balance of Payments Office of the Foreign Exchange Administrative Department (hereinafter referred to as the sub-bureaus) within 10 working days after the end of the month. The sub-bureaus shall receive and collect all the statements of the Chinese-funded financial institutions within their jurisdiction and then submit the form (see Annex 3) and summary table (see Annex 3) to the State Administration of Foreign Exchange within 12 working days after the end of the month.
VI. All the subjects of submission shall submit the statistical statements on foreign exchange assets and liabilities in both paper and electronic versions (via the special line of the Foreign Exchange Administration or by means of a CD-ROM or other storage media in EXCEL format).  Each sub-bureau shall submit the electronic statements via the internal mail of the Foreign Exchange Administration (
bop@bop.safe) and keep the paper statements of the subjects of submission within its own jurisdiction.  The Beijing-headquarters of national Chinese-funded designated foreign exchange banks, the National Council for Social Security Funds, and the China Investment Corporation shall submit the electronic statements to the State Administration of Foreign Exchange by means of a CD-ROM or other storage media and submit the paper statements by mail (or exchange). The mailing address is Balance of Payments Department, SAFE, Huarong Plaza, No. 18, Fucheng Road, Haidian District, Beijing 100048
VII. The name of the EXCEL file for the banks electronic statements is as follows:  the code of the reporting institution (the code for a Chinese-funded financial institution is the four-digit financial institutional code, the code for the National Council for Social Security Funds is 7913, and the code for the China Investment Corporation is 7912) + the abbreviation of the institution + the submission date (in YYYYMM format, e.g., 200809).   The name of the EXCEL file of the sub-bureauselectronic statements is as follows:  the sub-bureaus code (the 6-digit code of the Foreign Exchange Administration) + the abbreviation of the sub-bureau + the submission date (in YYYYMM format, e.g., 200809). The 10 statements shall be reported on separate sheets in an EXCEL file.
VIII. Each sub-bureau shall forward this Notice to all Chinese-funded designated foreign exchange banks (including Chinese-funded local urban commercial banks, rural commercial banks, and rural credit cooperatives) and Chinese-funded non-bank financial institutions engaged in foreign exchange business within its jurisdiction as soon as possible and shall oversee timely submission of the statements.  When forward this Notice, each sub-bureau shall notify the Chinese-funded financial institutions within its jurisdiction regarding the channels for submission of the statements to the local sub-bureau.
IX. This Notice shall be implemented from the date of dispatch. The first submission by the subjects shall be data at the end of January 2009, and the date of submission can be delayed to February 20, 2009. Document Huifa [2008] No. 52 shall be abolished at the same time.
If there are any questions, please contact the Balance of Payments Department of the State Administration of Foreign Exchange. Contact persons: Zhou Guo, Lin Gaozheng. Tel: 68402446, 68402447

Annex (omitted)
1. Statistical statements of foreign exchange assets and liabilities of Chinese-funded financial institutions (to be filled in and submitted by the financial institutions)
2. Instructions for Chinese-funded financial institutions to fill in and submit the statistical statements of foreign exchange assets and liabilities
3. A list of the statistical statements of foreign exchange assets and liabilities of Chinese-funded financial institutions to be submitted by the sub-bureaus
4. A summary table of the statistical statements of foreign exchange assets and liabilities of Chinese-funded financial institutions (to be filled in and submitted by the sub-bureaus)

                                                                           January 21, 2009

 

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Circular of the SAFE on the Relevant Issues concerning Improving Management of the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds

Date:2009-01-15

 

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 branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
In order to carry out the Several Opinions of the General Office of the State Council on Providing Financing Support for Economic Development (Guobanfa No.126 [2008]), to improve enterprise efficiency in the use of working capital, and to promote facilitation of trade, we hereby provide notification on the relevant issues as follows:
I. As for the temporary shortage of the remaining receivable amount of foreign exchange caused by the time delay in export data transmission while the enterprise has already exported and received foreign exchange, banks may rely on the enterprises commitment letter (the letter shall include the actual date of the export, the corresponding date of receipt of the foreign exchange, and evidence of the veracity of the commitment, etc., as well as the units seal) to settle or transfer out foreign exchange in the to-be-inspected account of the enterprise and to put it into record item in advance.  The enterprise shall carry out the on-line inspection procedures within 30 working days after the settlement or transfer and the bank shall log onto the Online Inspection System of Foreign Exchange Collection and Settlement of Export Proceeds (hereinafter referred to as the System) to make a note in the receivable amount of foreign exchange of enterprises under the corresponding trade type in the System.  As for an enterprise that fails to carry out the on-line inspection procedures within 30 working days, the bank shall report to the foreign exchange administration within 10 working days after the expiration and at the same time stop settling or transferring foreign exchange for the enterprise in advance; when the receivable amount of foreign exchange becomes available, the bank shall make a note on the settled or transferred amount in advance.
II. Beginning on February 15, 2009 and thereafter, the proportion of foreign exchange collection for processing with imported materials shall be increased from 20% to 30%.  The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange shall log onto the Adjustment of the Proportion of Foreign Exchange Collection for Processing with Imported Materials of the System to change the proportion to 30% on a unified basis.  If the actual proportion of foreign exchange collection on the declaration form of one single export transaction under the trade item for processing with imported materials is greater than 30%, the bank shall deal with it in accordance with the existing regulations related to the additional proportion of foreign exchange collection for processing with imported materials.
III. As for extra foreign exchange collection due to the change in the foreign exchange rate, the enterprise may go directly to the bank with the explanation to settle or transfer out the foreign exchange in the to-be-inspected account of the enterprise.
IV. As for capital under the trade-in-services item entered into the to-be-inspected account due to the multi-nature of one single foreign exchange collection, the wrong explanation by the enterprise, or the fault of the bank,, the enterprise may go directly to the bank with the explanation, contract, invoice, and other relevant documents to transfer out or to settle the foreign exchange in the to-be-inspected account of the enterprise.
V. Only when the shortage of the receivable amount of foreign exchange is caused by the time delay in the data transmission and the enterprise has exported can the bank settle or transfer foreign exchange in advance.  Banks shall handle the on-line inspection of the foreign exchange collection and settlement of export proceeds in strict accordance with the requirements of this Circular.  This provision shall not apply to foreign exchange collection under the export trade financing item and the existing regulations for trade credit management remain applicable.
VI. The foreign exchange administration shall make additional efforts in the subsequent monitoring over the banks and enterprises in foreign exchange settlement or transfers in advance and in fulfilling the carrying out of the on-line inspection procedures.   The foreign exchange administration shall, in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other relevant regulations, punish whoever violates the provisions of this Circular.
VII. This Circular shall come into effect as of the date of promulgation.
The branches and foreign exchange administrative departments of the SAFE shall, upon receipt of this Circular, forward it as soon as possible to the central sub-branches, sub-branches, foreign-funded banks, and local commercial banks under their respective jurisdictions. All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. If entities encounter any problems in the implementation of this Circular, they should send feedback to the State Administration of Foreign Exchange in a timely manner.
                                                                                January 15, 2009

 

 

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Circular of the SAFE on Relevant Issues for Further Standardizing the Statistical Management of the Banks' Settlement and Sale of Foreign Exchange

Date:2008-10-21

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
In order to standardize the banks' settlement and sale of foreign exchange and to raise the quality of the banks' statistical data on the sale and purchase of foreign exchange, we hereby provide notification on the relevant issues as follows:
A. When collecting statistical data on the settlement and sale of foreign exchange, the banks shall use the real time exchange rate to convert non-USD currencies into USD. As for those that have difficulties using the real time exchange rate, they may use the same exchange rate for transactions occurring on the same day instead of a ten day period or a monthly basis. The selection of the rate for each day shall be determined by each bank's headquarters at its own discretion.
B. When banks handle the businesses of forward settlement and sale of foreign exchange and RMB-foreign currency swaps for clients, in collecting the statistical data they shall observe the provisions of the Circular of the State Administration of Foreign Exchange on Statistical Rules for Banks' Foreign Exchange Settlement and Sales  (HuiFa No.42 [2006]) and the Circular of the State Administration of Foreign Exchange on Adjusting the Management of the Banks General Position Concerning the Settlement and Sale of Foreign Exchange (HuiFa No. 26 [2006]).
1. For optional forward transactions, the banks shall collect statistical data about the performance of forward contracts strictly in accordance with the clients' actual date of performance.
2. For any default in a contract of forward settlement of foreign exchange, the banks shall record it into the conclusion of the contract for forward settlement of foreign exchange with a negative value and record it with a positive value into the default of contract of forward settlement of foreign exchange in the statistical box exclusively for the default of forward contracts. For any default of contract of forward sale of foreign exchange, the bank shall record it into the conclusion of the contract for the forward sale of foreign exchange with a negative value and record it with a positive value in the default of contract of forward sale of foreign exchange in the statistical box exclusively for the default of forward contracts.
3. For a renewal of the contract for the forward settlement of foreign exchange, a negative value shall be recorded in the conclusion of the contract for forward settlement of foreign exchange before recording a new conclusion of the contract for the forward settlement of foreign exchange.  The renewal shall be recorded with a positive value in the statistical box for the renewal of forward contracts.  The renewal of a contract for the forward sale of foreign exchange shall be recorded with a negative value in the conclusion of the contract for the forward sale of foreign exchange before recording a new conclusion of the contract on the forward sale of foreign exchange.  The renewal shall be recorded with a positive value in the statistical box for the renewal of forward contracts.
4. For advance performance of forward settlement and sale of foreign exchange contracts, the statistics thereof shall be reported on the statement of performance of the contract on the forward settlement and sale of foreign exchange as a normal performance of the contract.
5. When an adjustment in the time limit of a forward or swap contract is made for a newly signed swap contract with clients, the swap transaction shall not be viewed as a new swap transaction for statistical purposes.
6. The swap transaction shall not be separated into a spot transaction and a forward transaction for statistical purposes.
C. All banks shall strengthen the internal management of the general positions in the settlement and sale of foreign exchange and shall periodically reconcile them with the accounts so as to avoid abnormal differences.
1. As for inconsistencies between the foresaid items due to differences in the exchange rate conversion, the bank shall apply to the SAFE or the branches thereof (hereinafter referred to as the foreign exchange administration) that verify the positions for adjustment and then shall conduct the adjustment on a yearly basis upon the approval of the foreign exchange administration.
2. As for abnormal differences between the general positions and the accounts on December 31, 2008, they shall be adjusted before February 28, 2009 upon the approval of the foreign exchange administration.
D.This Circular will come into force as of January 1, 2009.
All branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, transmit it in a timely fashion to the sub-branches and the designated Chinese- and foreign-funded foreign exchange banks under their respective jurisdictions. In cases of any problems encountered during implementation, please contact the SAFE in a timely manner. (Telephone numbers: 0168402313, 68402374; fax: 010-68402315).
                                                                           October 21, 2008

 

 

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Circular of the SAFE on Chinese-funded Financial Institutions Submitting Foreign Exchange Asset-Liability Statistical Reports on a Trial Basis

Date:2008-10-16

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all nationwide designated Chinese-funded foreign exchange banks, National Councils for Social Security Funds, and China Investment Corporations:
For the purpose of implementing the spirit of the relevant conferences of the State Council and for further strengthening the monitoring of the overall condition of  foreign exchange asset-liability statistics of Chinese-funded financial institutions, the State Administration of Foreign Exchange, under the framework of the balance of payment statistics, hereby formulates a system for submitting monthly foreign exchange asset-liability statistical reports by Chinese-funded financial institutions, which will be implemented on a trial basis as of late October, 2008.  We hereby provide notification on the relevant issues and requirements as follows:
I.  All Chinese-funded financial institutions (including banks, insurance companies, securities companies, futures companies, fund management companies, finance companies, and trust investment companies), National Councils for Social Security Funds, and China Investment Corporations that engage in foreign-exchange business shall, in line with the requirements of this notice, timely, accurately, and completely submit monthly foreign exchange asset-liability statistical reports.
II.  The term Chinese-funded financial institutionsin this notice refers to Chinese-funded financial institutions with legal person status, including  domestic and overseas branches thereof.
III.  There are 8 tables in the foreign exchange asset-liability statistical report of  Chinese-funded financial institutions (see Annex I and Annex II for the report form and the filing guide respectively). Data listed in Table 3 to Table 8 relate to the self-run business of the financial institutions. All institutions will calculate the statistics based on the internal conversion rate at the end of each month.
IV.  All Chinese-funded financial institutions, National Councils for Social Security Funds, and China Investment Corporations that engage in foreign-exchange business shall complete the above-mentioned 8 tables on a monthly basis; a zero submission system is applied to the whole set of reports, that is, even if an institution does not launch a relevant business, it still needs to submit an empty table concerning the business.
V.  All nationwide designated Chinese-funded foreign exchange banks, National Councils for Social Security Funds, and China Investment Corporations with headquarters located in Beijing shall, in accordance with the principles of the headquarters, summarize the data of the various branches within their own systems and directly submit the results to the Balance of Payments Department of the SAFE (the same as below) within the first 7 days of the following month. Other Chinese-funded financial institutions (including nationwide designated Chinese-funded foreign exchange banks that have headquarters located outside of Beijing, local Chinese-funded banks, and Chinese-funded non-bank financial institutions) shall, in line with the principles of the headquarters, summarize the data of their various branches within their own systems and submit the results to the local SAFE branches and the Balance of Payments Offices of the Foreign Exchange Administration Department (hereinafter referred to as the branches) within the first  7 days of the following month; the branches shall, after collecting and summarizing the reports of the Chinese-funded financial institutions within their respective jurisdictions, submit the original reports (attached with the covers, see Annex III) and the summary reports to the SAFE within the first 8 days of the following month.
VI.  Chinese-funded financial institutions, National Councils for Social Security Funds, and China Investment Corporations that engage in foreign-exchange business shall, in line with the provisions in Article 5 of this Circular, submit the September 2008 reports before October 24, 2008, and the branches shall submit the collected and summary reports of the Chinese-funded financial institutions within their respective jurisdictions to the SAFE before October 27, 2008.
VII.  All branches and Chinese-funded financial institutions, National Councils for Social Security Funds, and China Investment Corporations shall submit the foreign exchange asset-liability statistical reports in the form of a paper report (by exchange or through the mail) and an electronic report (by sending an e-mail in the form of EXCEL). The e-mail address of the SAFE is
bopstat@mail.safe.gov.cn (external network mailbox).  The nationwide designated Chinese-funded foreign exchange banks based in Beijing , National Councils for Social Security Funds, and China Investment Corporations shall submit the electronic reports through the external network mailbox. The E-mail address of the SAFE internal mailbox is bop@bop.safe and the branches shall submit the electronic reports through the internal mailbox. The mailing address of the SAFE is Huarong Plaza , No. 18, Fucheng Road , Haidian District, Beijing 100037.
VIII.  The name of the EXCEL file of the banks electronic report is to be formatted as follows:  The organization code (the four-digit financial institution code for the Chinese-funded financial institutions, 7913 for the National Councils for Social Security Funds, and 7912 for China Investment Corporations) + the institutional abbreviation + the table number (table 1 to table 8) + the date of submission (with four digits for the year and 2 digits for the month, e.g., 200809).  The name of the EXCEL file of the electronic report of the branches is to be formatted as follows:  The branch code (six-digit code of the foreign exchange branch) + the branch abbreviation + the table number (table 1 to table 8) + the date of submission (with four digits for the year and 2 digits for the month, e.g., 200809).
IX.  The term dayin this notice refers to the calendar day. The date of submission shall be extended accordingly for legal holidays with the exception of weekends.
X.  For any problems encountered during the trial implementation, all Chinese-funded financial institutions, National Councils for Social Security Funds, and China Investment Corporations shall clearly indicate the concrete conditions and reasons in the current submission.
XI.  All branches shall immediately forward this Circular to all designated Chinese-funded foreign exchange banks (including local Chinese-funded urban commercial banks, rural commercial banks, and rural credit cooperatives) and various Chinese-funded non-bank financial institutions that engage in foreign-exchange business within their respective jurisdictions, and shall supervise the timely submission of the reports. All branches shall, in forwarding this notice, notify the Chinese-funded financial institutions within their respective jurisdictions regarding the channels for reporting to the local branches. 
 In case of any problems, please contact the Balance of Payments Department of the SAFE.   Contact persons: Zhou Guolin, Han Jian; Tel68402446, 68402373

                                                                                October 16, 2008

 

 

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Circular of the General Affairs Department of the SAFE on Relevant Issues Concerning Administration of Purchases of Foreign Exchange by Overseas Individuals

Date:2008-10-07

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
In June 2008, for the purpose of facilitating purchases of foreign exchange by overseas individuals, the State Administration of Foreign Exchange (SAFE) issued the Notice of the General Affairs Department of the SAFE on Issues Concerning Completion of the Administration of Purchases of Foreign Exchange by Overseas Individuals during the 2008 Beijing Olympic Games (HuiZongFa [2008] No. 69), specifying that during the period from July 8, 2008 to October 17, 2008 the business of purchases of foreign exchange by overseas individuals under the current account with a total annual quota equivalent to USD 50,000 be temporarily incorporated into the Management Information System for Individual Sales and Purchases of Foreign Exchange. Aiming to regulate the administration of purchases of foreign exchange by overseas individuals after the 2008 Beijing Olympic Games, to strengthen the statistics, and to monitor purchases of foreign exchange by overseas individuals, we hereby provide notification on the relevant issues as follows:
First, beginning on October 18, 2008, the regulations for administration of purchases of foreign exchange by overseas individual equivalent to a total annual quota of USD 50,000 during the 2008 Beijing Olympic Games are terminated and no longer implemented. All banks shall handle the business of purchases of foreign exchange for overseas individuals in line with the relevant provisions as specified in the Measures for the Administration of Individual Foreign Exchange (Decree No.3 [2006] of the Peoples Bank of China) and the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (Hui-Fa No. 1 [2007]). As for purchases of foreign exchange with legal RMB income under the current account obtained within the territory, overseas individuals shall handle it upon the strength of a valid personal identity certificate and relevant evidential materials denoting the trade volume (including the tax voucher). As for reconverting RMB that was converted but not used back into the foreign currency, overseas individuals shall handle it upon the strength of a valid personal identity certificate and the original exchange memo, and the latter shall be valid for 24 months from the date of the exchange; in cases when the daily cumulative amount does not exceed the equivalent of USD 500 (or USD 1000 if the exchange is made within the borders of the PRC but outside Customs before he/she leaves the country), individuals may handle it solely upon the strength of a valid personal identity certificate.
Second, banks shall continue to handle the business of purchases of foreign exchange for overseas individuals through the Management Information System for Individual Sales and Purchases of Foreign Exchange. The information regarding the purchase of foreign exchange by overseas individuals under the current account shall be incorporated case by case into the columns of Overseas Individuals Purchasing Foreign Exchange with Income under the Current Account and Overseas Individuals Reconverting RMB into Foreign Currency under the Foreign Exchange Purchase Transactionmodule of the Management Information System for Individual Sales and Purchases of Foreign Exchange. Moreover, the timely and accurate entry of these data shall be assured.
Next, banks shall carefully review the business of purchases of foreign exchange for overseas individuals while all branches and sub-branches of the SAFE shall intensify off-site monitoring of individual foreign exchange receipts and payments as well as sales and purchases of foreign exchange within their respective jurisdictions and shall reinforce supervision and inspection of the banks within their respective jurisdictions.
All branches and foreign exchange administration departments of the SAFE shall immediately forward this Notice to all sub-branches, urban commercial banks, rural commercial banks, and foreign-funded banks; all designated Chinese-funded foreign exchange banks shall forward this Notice to their subordinate branches as soon as possible. If an entity encounters any problems in the implementation of this Notice, it shall send feedback to the SAFE in a timely manner.
                                                                                October 7, 2008

 

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Circular of the SAFE on Relevant Issues Concerning Doing a Good Job in the Administration of Registration of Deferred Payments of Enterprises

Date:2008-09-24

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, the SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
In accordance with the provisions of the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Implementation of the Administration of Registration of External Debts under the Trade in Goods of Enterprises (Huifa No.30 [2008]), concerning October 1, 2008, where a newly concluded import contract by an enterprise includes any clause on deferred payments or where any deferred payments actually occur, the enterprise shall handle the procedures for registration of the deferred payment within 15 working days from the day when the contract is concluded or within 90 days after the customs signs the import goods declaration form. The relevant issues on handling this business are hereby notified as follows:
A. The trade credit registration administration system (for deferred payments) of the State Administration of Foreign Exchange shall go into operation as of October 1, 2008. The enterprises shall handle the procedures for the registration of deferred payments in accordance with the provisions of the Huifa No.30 [2008] document and this Circular.
B. The foreign exchange administrative departments of all branches of the State Administration of Foreign Exchange (hereinafter referred to as the branches) shall, upon receiving this Circular, make full preparations for using the system to handle the administration of registration of deferred payments as soon as possible.
(a). Collecting information on the designated foreign exchange banks and the branches thereof within their respective jurisdictions, and handling information registration procedures for the banks in line with the requirements of the operation manual after the operation of the trade credit registration administration system (for deferred payments).
(b). Accurately and timely reporting the 2007 monthly import payment data of the enterprises within their respective jurisdictions in line with the requirements of the State Administration of Foreign Exchange.
(c). Organizing relevant personnel to learn and skillfully master the business processes for administration of the registration of deferred payments in line with the requirements for the administration of registration of deferred payments, and organizing and doing well the training work for the central sub-branches and sub-branches within their respective jurisdictions. 
C. In order to ensure accurate comprehension and implementation of the policies for the administration of registration of deferred payments, the branches shall open a policy consultation hotline before October 1, announce the hotline to the banks and enterprises within their respective jurisdictions, and specify personnel to answer the telephones, to make telephone records, and to patiently and carefully provide policy consultation for the enterprises and banks. The branches shall report the hotline numbers and the contact persons thereof to the Capital Account Management Department of the State Administration of Foreign Exchange for the record via email or fax.
D. The branches shall closely follow implementation of the policies and the operation of the system, and shall provide timely feedback on any problems of policy implementation to the Capital Account Management Department and the Information Center of the State Administration of Foreign Exchange.
Contact person of the SAFEMiao Jian and Liang Yong at the Capital Account Management Department
Tel: 010-68402250
Fax: 010-68402208
E-mail:
debt@capitalsafe
Information Center : Wang Yi
Tel: 010-68402469
                                                                    September 24, 2008

 

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Circular of the SAFE on Distributing the Operational Procedures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds

Date:2008-09-12

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
In order to implement the Circular of the State Administration of Foreign Exchange, the Ministry of Commerce, and the General Administration of Customs on Printing and Distributing the Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds (Huifa No.29 [2008]) and the Circular of the State Administration of Foreign Exchange on Implementing the Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds (Huifa No.31 [2008]), to standardize relevant business operations, and to facilitate the enterprises handling of relevant business, the State Administration of Foreign Exchange has promulgated the Operational Procedures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds (see the Annex, hereinafter referred to as the Operational Procedures), which are hereby distributed to you. The Operational Procedures shall come into force as of the date of promulgation. If you encounter any problems in implementing the Operational Procedures, please send timely feedback to the State Administration of Foreign Exchange.
The State Administration of Foreign Exchange will further improve the online inspection system of Foreign Exchange Collection and Settlement of Export Proceeds, simplify some business operations and document review links, and perfect relevant business regulations. Relevant issues will be clarified in documents after the second phase of the functioning of the online inspection system of Foreign Exchange Collection and Settlement of Export Proceeds goes live.
It is hereby notified.

                                                           September 12, 2008


affix1:
Operational Procedures for the On-line Inspection of Foreign Exchange Collection and Settlement of Export Proceeds

 

 

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Circular of the SA FE on Relevant Business Operations Issues Concerning Improving the Administration of the Payment and Settlement of Foreign Exchange Capital of Foreign- Funded Enterprises

Date:2008-08-29

 

The branches and the foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all Chinese-funded designated foreign exchange banks:
In order to improve the foreign exchange administration of foreign-funded enterprises, to facilitate the verification, payment, and settlement of foreign exchange capital (hereinafter referred to as the capital) of the foreign-funded enterprises, and to standardize the relevant business operations of the designated foreign-exchange banks (hereinafter referred to as the banks) and accounting firms, we hereby, in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and the relevant provisions, provide notification on relevant business operations issues concerning the administration of the payment and settlement of the capital of foreign-funded enterprises after the running of the Foreign Exchange Business Information System for Direct Investment of the SAFE (hereinafter referred to as the Investment System) as follows:
`. Where a foreign-funded enterprise applies to a bank for settlement of foreign exchange, it shall go through the capital verification procedures at an accounting firm in advance. The accounting firm shall, after confirmation of the capital verification to the State Administration of Foreign Exchange and its branches (hereinafter referred to as the Administration of Foreign Exchange), issue a capital verification report to the enterprise. No bank shall handle the settlement of capital for which the capital verification procedures have not been completed.
The cumulative amount of the settlement of capital handled by a bank for a foreign- funded enterprise shall not exceed the cumulative amount of the verified capital of the said foreign-funded enterprise.
a. Accounting firm inquiries about the capital contribution of foreign parties to the Administration of Foreign Exchange for the purpose of the verification of capital of a foreign-funded enterprise and a banks settlement of capital of a foreign-funded enterprise shall be handled through the SAFE Investment System.
b. A bank shall handle the payment and settlement of capital for a foreign-funded enterprise in line with the administrative rules of the SAFE regarding the payment and settlement of foreign exchange.
The RMB obtained from the settlement of capital of a foreign-funded enterprise shall be used within the business scope granted by the government approval department. Unless otherwise specified, the RMB obtained from the settlement of capital shall not be used for domestic equity investment. Other than a foreign-funded real estate enterprise, no foreign-funded enterprise shall use the RMB obtained from the settlement of capital to purchase domestic real estate for any purpose other than its own use. A foreign-funded enterprise shall use the RMB obtained from the settlement of capital for securities investment in line with the relevant provisions of the state.
An investment-oriented foreign-funded enterprise approved by the commercial administrative department to conduct domestic equity investments shall handle the domestic transfer of capital only after approval by the Administration of Foreign Exchange.
c. Where a foreign-funded enterprise applies for the settlement of capital to a bank, it shall submit the following materials:
(a). The foreign exchange registration IC card of the foreign-funded enterprise.
(b). A Letter of Payment Order for the RMB obtained from the settlement of capital (see the format in Annex 1).
The Letter of Payment Order refers to a written order issued and signed by an enterprise or an individual, based on which a bank makes an external payment with the RMB obtained from the settlement of capital.
(c). Documents certifying the purpose of the RMB obtained from the settlement of capital.
The certification documents shall include the commercial contract or the payment notice provided by the payee.  The payment notice shall contain the main clauses of the business contract, the amount of money, the name and bank account number of the payee, the purpose of the capital, and other items in the commercial contract. Where an enterprise repays an RMB loan with RMB obtained from the settlement of capital, an explanation indicating that the loan capital has been used within the approved business scope and according to the terms of the contract shall be submitted.
(d). The latest capital verification report (accompanied by a reply letter to the inquiry letter with respect to the capital contribution of the foreign party) provided by an accounting firm.
(e). Relevant certificates of the external payment with the RMB obtained from the preceding settlement of capital in line with the Letter of Payment Order, a detailed list of the allocation thereof (see the format in Annex 2), and a duplicate copy of the relevant vouchers, such as an invoice with the enterprises official seal or financial seal. Where the settlement of capital is in a lump sum or is the final installment in the settlement of capital, the enterprise shall submit the above-mentioned materials to the bank within 5 working days from the date of the settlement.
(f). Other supplementary materials as required by the bank.
For the settlement of the foreign exchange reserve fund of an enterprise in an amount equivalent to USD 50,000 or less, the enterprise need not submit the documents as listed in (c) and (e), and the settlement of the interest in its capital account can be directly handled with the interest list provided by the bank.
The bank shall carefully examine the authenticity and legality of the purposes of the RMB obtained from the settlement of capital of the foreign-funded enterprise.  If the materials are inconsistent or contradict one another, the bank shall not handle the relevant business for the enterprise.
d. Where the capital account and the RMB account of a foreign-funded enterprise are opened at the same bank, the bank handling the settlement of capital shall go through the procedures for the settlement of capital and entry into the RMB account and transfer of the external payment on the same day; where the two accounts are not opened at the same bank, when transferring the RMB from the settlement of capital, the bank shall clearly mark the capital transfer voucher with the wording  settlement of capital.The inward transfer bank of the RMB shall handle the transfer procedures of the capital in line with the Letter of Payment Order within 2 working days (including the day of the inward transfer).
Where the settlement of capital of an enterprise is used for the reserve fund turnover or the payment of salaries and bonuses, the RMB obtained from the settlement of capital may be retained in the RMB account of the enterprise.
e. With respect to foreign exchange received by a domestic institution or an individual for transferring the holding stock or equity of domestic enterprises to foreign investors hereinafter referred to as the Equity Transfer Consideration,the entry into the account and settlement thereof shall be handled through the special foreign exchange account for assets realization. The opening of the special foreign exchange account for assets realization and the entry of the capital into the account shall be approved by the local Administration of Foreign Exchange in accordance with the relevant provisions, and the bank shall handle the relevant business upon receipt of the approval instrument provided by the local Administration of Foreign Exchange.
Where a domestic institution or individual is prepared to handle the capital settlement in the special foreign exchange account for assets realization, it shall, in line with the relevant requirements of the system for the payment and settlement of foreign exchange, apply directly to the bank by presenting the following materials:
(I) A Letter of Payment Order of the RMB obtained from the settlement of capital (see format in Annex 3).
(II) A document certifying the purposes of the RMB obtained from the settlement of capital.
(III) Relevant certificates of the external payment of the RMB obtained from the preceding settlement of capital in line with the Letter of Payment Order, a detailed list of the allocation thereof (see the format in Annex 4), and a duplicate copy of the relevant vouchers, such as an invoice with the enterprises official seal or financial seal. Where the settlement of capital is in a lump sum or is the final installment of settlement of capital, the domestic institution or individual shall submit the above-mentioned materials to the bank within 5 working days after the date of the settlement.
f. When a bank handles fund transfer business for a foreign-funded enterprise, such as a fixed deposit of capital, the forward settlement and sale of foreign exchange, and a swap or a structured deposit of capital and other capital transfer businesses that are under the same account and do not need the approval of the local Administration of Foreign Exchange, it shall handle the business in a different sub-account under the same account; the transferred capital shall be included in the quota for the capital account and administered within the income-expenditure range thereof, and shall not be transferred to other accounts in violation of the regulations.
g. The bank shall, in accordance with this Notice and the relevant provisions, strictly examine the materials submitted by the foreign-funded enterprise applying for the settlement of capital, and shall provide information in a timely manner about the settlement of capital to the local Administration of Foreign Exchange through the SAFE Investment System. The information from the bank shall automatically be entered into the SAFE Enterprise Foreign Exchange Information Archival Database.
h. The Administration of Foreign Exchange shall, in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and other relevant provisions, strengthen supervision of banks handling such business as the settlement of capital for foreign-funded enterprises, and shall conduct extended inspections on the flow and use of the capital and on the RMB obtained from the settlement of capital of foreign-funded enterprises. Where cases of the following violations are found, the Administration of Foreign Exchange shall issue punishments in line with the relevant provisions in Article 44 of the Regulations of the Peoples Republic of China on Foreign Exchange Administration:
(a). Changing the purposes of the RMB obtained from the settlement of capital without authorization;
(b). Repaying the unused RMB loan with RMB obtained from the settlement of capital.
i. This Notice shall come into force as of the date of promulgation. As for those Notices such as the Circular of the State Administration of Foreign Exchange Concerning the Trial Reform of the Management Mode for the Settlement of Foreign Exchange Capital under the Foreign Investment Account (Huifa No. [2001] 141), the Circular of the State Administration of Foreign Exchange on Reforming the Management Mode for the Settlement of Foreign Exchange Capital under the Foreign Investment Account (Huifa No. [2002] 59),  the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Improvement of Foreign Exchange Administration relating to Direct Investment by Foreign Investors (Huifa No. [2003] 30), and the Circular of the State Administration of Foreign Exchange on Improving the Examination of Foreign Exchange Settlement under the Capital Account and the Management of the Registration of the External  Debts of Foreign-Funded Enterprises (Huifa No. [2004] 42), when the documents thereof relating to the administration of capital and the settlement of capital are inconsistent with this Notice, this Notice shall prevail.
j. All branches and foreign exchange management departments of the SAFE shall, upon receipt of this Notice, forward it to all sub-branches, urban commercial banks, rural commercial banks, foreign-funded banks, and accounting firms within their respective jurisdictions; all Chinese-funded designated foreign exchange banks shall, upon the receipt of this Notice, forward it to their subordinate branches.
If any entity encounters any problems in the implementation of this Circular, please send feedback to the State Administration of Foreign Exchange at 010-68402365 in a timely manner.

                                                              August 29, 2008


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Annex

 

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Contact Information for the Local SAFE Branches for Foreign Exchange Administration in Cities Holding Olympic Competitions

Date:2008-08-07

 

Contact Information for the Local SAFE Branches for Foreign Exchange Administration in Cities Holding Olympic Competitions


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Contact Information for the Local SAFE Branches for Foreign Exchange Administration in Cities Holding Olympic Competitions

 

 

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Bank Outlets that can Deal with Individual Sales & Purchases of Foreign Exchange within Major Commercial Areas in the Neighborhood of Olympic Competition Venues (A)

Date:2008-08-07

 

Bank Outlets that can Deal with Individual Sales & Purchases of Foreign Exchange within Major Commercial Areas in the Neighborhood of Olympic Competition Venues
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Statistics of Bank Outlets Dealing with Individual Sales and Purchases of Foreign Exchange in Beijing
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Statistics of Bank Outlets Dealing with Individual Sales and Purchases of Foreign Exchange in Qingdao
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Statistics of Bank Outlets Dealing with Individual Sales and Purchases of Foreign Exchange in Qinhuangdao

 

 

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Bank Outlets that can Deal with Individual Sales & Purchases of Foreign Exchange within Major Commercial Areas in the Neighborhood of Olympic Competition Venues (B)

Date:2008-08-07

 

Bank Outlets that can Deal with Individual Sales & Purchases of Foreign Exchange within Major Commercial Areas in the Neighborhood of Olympic Competition Venues
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Statistics of Bank Outlets Dealing with Individual Sales and Purchases of Foreign Exchange in Shanghai
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Statistics of Bank Outlets Dealing with Individual Sales and Purchases of Foreign Exchange in Shenyang
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Statistics of Bank Outlets Dealing with Individual Sales and Purchases of Foreign Exchange in Tianjin

 

 

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Regulations of the People's Republic of China on Foreign Exchange Administration

Date:2008-08-05

 

          Decree of the State Council of the Peoples Republic of China
                                                          No. 532

    The Regulations of the Peoples Republic of China on Foreign Exchange Administration, revised and adopted at the 20th Executive Meeting of the State Council on August 1, 2008, are hereby promulgated and shall be effective as of the date of promulgation.

                                                                      Premier, Wen Jiabao
                                                                         August 5, 2008

                 Regulations of the Peoples Republic of China on  Foreign Exchange Administration


(Promulgated by Decree No. 193 of the State Council of the Peoples Republic of China on January 29, 1996, revised in accordance with the Decision of the State Council on Amending the Regulations of the Peoples Republic of China on Foreign Exchange Control on January 14, 1997, and revised and adopted at the 20th Executive Meeting of the State Council on August 1, 2008)

Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of improving foreign exchange administration and promoting an equilibrium in the balance of payments and the sound development of the national economy.
    Article 2  The foreign exchange administration department of the State Council and its local offices (hereinafter collectively referred to as the exchange administration agencies) shall, in accordance with law, perform the duties of foreign exchange administration and shall be responsible for implementation of these Regulations.
    Article 3  The term foreign exchange in these Regulations refers to the following means of payment and assets denominated in foreign currencies and used in international settlements:
    (1) foreign currencies in cash, including banknotes and coins;
    (2) documents or instruments payable in foreign currencies, including negotiable instruments, bank deposit certificates, bank cards, etc.;
    (3) securities denominated in foreign currencies, including bonds, stocks, etc.;
    (4) Special Drawing Rights; and
    (5) other assets denominated in foreign currencies.
    Article 4  These Regulations shall be applicable to all activities by domestic entities or individuals in relation to foreign exchange receipts and payments or foreign exchange operations, and to all activities within the territory of the Peoples Republic of China by foreign entities or individuals in relation to foreign exchange receipts and payments or foreign exchange operations.
    Article 5  The State imposes no restrictions on international payments and transfers of current account transactions.
    Article 6  The State applies a balance of payments statistics and reporting system.
    The foreign exchange administration department of the State Council shall compile statistics on and monitor the balance of payments, and publish these statistics on a regular basis.
    Article 7  Financial institutions conducting foreign exchange operations shall, in accordance with the provisions of the foreign exchange administration department of the State Council, open foreign exchange accounts for their clients and handle foreign exchange operations through such accounts.
    Financial institutions conducting foreign exchange operations shall, in accordance with law, report to the exchange administration agencies on the foreign exchange receipts and payments of their clients and on changes in their clientsforeign exchange accounts.
    Article 8  Foreign currencies are prohibited from circulation and shall not be quoted for pricing or settlement within the territory of the Peoples Republic of China , unless otherwise provided for by the State.
    Article 9  Foreign exchange receipts of domestic entities and individuals may be repatriated to or placed outside the territory of the Peoples Republic of China; the foreign exchange administration department of the State Council shall specify the conditions, time limits, etc. of the repatriation and outside placement in light of the situation in the balance of payments and the needs for foreign exchange administration.
    Article 10  The foreign exchange administration department of the State Council shall hold, manage, and operate the national foreign exchange reserves in accordance with law, and shall follow the principles of safety, liquidity, and profitability.
    Article 11  In cases of occurrence or possible occurrence of a serious disequilibrium in the balance of payments, or a severe crisis in the national economy, the State may adopt safeguards, controls and other necessary measures to deal with the balance of payments.

Chapter II  Foreign Exchange Administration for Current Account Transactions

    Article 12  Foreign exchange receipts and payments for current account transactions shall be based on bona fide and legal transactions. Financial institutions conducting foreign exchange settlement and sale operations shall, in accordance with the provisions of the foreign exchange administration department of the State Council, exercise due diligence in checking the authenticity of the transaction documents and their consistency with the receipts and payments in foreign exchange.
    The exchange administration agencies have the power to supervise and inspect the matters specified in the preceding paragraph.
    Article 13  Foreign exchange receipts for current account transactions may, in accordance with the relevant provisions of the State, be retained or sold to financial institutions conducting foreign exchange settlement and sale operations.
    Article 14  Foreign exchange payments for current account transactions shall be made with the foreign exchange owned by the payers or purchased from financial institutions conducting foreign exchange settlement and sale operations, as specified by the foreign exchange administration department of the State Council relating to the administration of payments and purchases of foreign exchange, and on the basis of valid documents.
    Article 15  The foreign exchange administration department of the State Council shall specify limits and reporting requirements on foreign currencies in cash which may be carried in or out of the territory of the Peoples Republic of China .

Chapter III  Foreign Exchange Administration for Capital Account Transactions

    Article 16  Direct investments within the territory of the Peoples Republic of China by foreign entities or individuals shall be registered with the exchange administration agencies after being approved by the relevant departments.
    Issuances and transactions of securities or derivatives within the territory of the Peoples Republic of China by foreign entities or individuals shall conform to the provisions of the State on market access, and shall be registered in accordance with the provisions of the foreign exchange administration department of the State Council.
    Article 17  Overseas direct investments or overseas issuances or transactions of securities or derivatives by domestic entities or individuals shall be registered in accordance with the provisions of the foreign exchange administration department of the State Council. Where prior approval or maintenance for the record by the relevant department is required by the provisions of the State, the approval or recording procedures shall be completed prior to the registration of the foreign exchange.
    Article 18  The State undertakes quota management of external debts. External debts shall be borrowed in accordance with the relevant provisions of the State, and shall be registered with the exchange administration agencies.
    The foreign exchange administration department of the State Council shall be responsible for the statistics and monitoring of external debts nationwide, and shall publish these statistics on a regular basis.
    Article 19  Where an external guarantee is provided, the provider shall submit an application to the exchange administration agency, which shall then make a decision whether or not to approve the application by taking into account the applicants assets and liabilities, etc.; where the scope of the applicants business is subject to approval by the relevant department as specified by the State, the approval procedures shall be completed before the application is submitted to the exchange administration agency. After conclusion of an external guarantee contract, the applicant shall register the external guarantee with the exchange administration agency.
    The preceding paragraph shall not be applicable to external guarantees provided for onlent loans upon approval of the State Council in order to utilize loans from foreign governments or international financial organizations.
    Article 20  Banking institutions may directly provide commercial lendings overseas within the approved scope of their business. Where any other domestic entity is to provide commercial lendings overseas, it shall submit an application to the exchange administration agency, which shall make a decision whether or not to approve the application by taking into account the applicants assets and liabilities, etc.; where the scope of the business of such an entity is subject to approval by the relevant department as specified by the State, the approval procedures shall be completed before the application is submitted to the exchange administration agency.
    Commercial lendings provided overseas shall be registered in accordance with the provisions of the foreign exchange administration department of the State Council.
    Article 21  Where foreign exchange receipts for capital account transactions are retained or sold to financial institutions conducting foreign exchange settlement and sale operations, approval shall be obtained from the exchange administration agencies, unless no approval is required as specified by the State.
    Article 22  Foreign exchange payments for capital account transactions shall be made with the foreign exchange owned by the payers or purchased from financial institutions conducting foreign exchange settlement and sale operations, as specified by the foreign exchange administration department of the State Council relating to the administration of payments and purchases of foreign exchange, and on the basis of valid documents. Where approval by the exchange administration agency is required by the provisions of the State, the approval procedures shall be completed prior to the payments in foreign exchange.
    After a foreign-invested enterprise that is terminated in accordance with law has completed liquidation and paid taxes in accordance with the relevant provisions of the State, the income in RMB owned by the foreign investor may be converted into foreign currency through a financial institution conducting foreign exchange settlement and sale operations and may be remitted abroad.
    Article 23  Foreign exchange and RMB funds after conversion for capital account transactions shall be used for the purposes approved by the relevant departments and exchange administration agencies. The exchange administration agencies have the power to supervise and inspect the use of foreign exchange and RMB funds after conversion for capital account transactions and the changes in the relevant accounts.

Chapter IV  Administration of Foreign Exchange Operations of Financial Institutions

    Article 24  Where financial institutions conduct or terminate foreign exchange settlement and sale operations, approval shall be obtained from the exchange administration agencies; where other foreign exchange operations are conducted or terminated, approval shall be obtained from the exchange administration agencies or from the financial supervisory authorities according to their respective functions and duties.
    Article 25  The exchange administration agencies shall undertake comprehensive position management of the foreign exchange operations of financial institutions. The specific measures in this regard shall be formulated by the foreign exchange administration department of the State Council.
    Article 26  Where a financial institutions capital funds or profits or its mismatched assets denominated in domestic and foreign currencies need to be converted between RMB and foreign currency, approval shall be obtained from the exchange administration agencies.

Chapter V  The RMB Exchange Rate and Administration of the Foreign Exchange Market

    Article 27  The RMB exchange rate follows a market-oriented, managed floating regime.
    Article 28  Financial institutions conducting foreign exchange settlement and sale operations, and other institutions that satisfy the conditions prescribed by the foreign exchange administration department of the State Council, may trade foreign exchange in the inter-bank foreign exchange market in accordance with the provisions of the foreign exchange administration department of the State Council.
    Article 29  Trading in the foreign exchange market shall follow the principles of transparency, equality, fairness, and good faith.
    Article 30  The types of currencies traded and the forms of trading in the foreign exchange market shall be prescribed by the foreign exchange administration department of the State Council.
    Article 31  The foreign exchange administration department of the State Council shall supervise and administer the foreign exchange market nationwide in accordance with law.
    Article 32  The foreign exchange administration department of the State Council may, in light of changes in the foreign exchange market and the requirements of the monetary policies, adjust excessive fluctuations in the foreign exchange market in accordance with law.

Chapter VI  Supervision and Administration

    Article 33  The exchange administration agencies shall perform their functions and duties in accordance with law and have the power to take the following measures:
    (1) to make on-the-spot inspections of financial institutions conducting foreign exchange operations;
    (2) to enter places of suspected foreign exchange violations, and to conduct investigations and obtain evidence;
    (3) to query an entity or individual that handles foreign exchange receipts or payments or foreign exchange operations, requiring an explanation of the matters directly relevant to a case under investigation for foreign exchange violation;
    (4) to examine and copy transaction documents and other materials directly relevant to a case under investigation for foreign exchange violation;
    (5) to examine and copy financial and accounting records and other relevant documents of the parties involved in, or the entities and individuals directly relevant to, a case under investigation for foreign exchange violation, and to seal any documents and materials which might be transferred, concealed, or destroyed;
    (6) to inquire about the accounts, other than the individualssavings accounts, of the parties involved in, or the entities and individuals directly relevant to, a case under investigation for foreign exchange violation, with approval of the responsible person of the foreign exchange administration department of the State Council or the exchange administration agency at the provincial level; and
    (7) where evidence shows that illegal funds or other involved property have been or might have been transferred or concealed, or that important evidence has been or might have been concealed, forged, or destroyed, to apply to a peoples court to freeze or seal the said funds, property, or evidence.
    All relevant entities and individuals shall cooperate with the exchange administration agencies in their supervision and inspection, presenting truthful explanations for related matters and providing relevant documents and other materials, and they shall not refuse to do so, and shall not obstruct the said agencies or conceal the facts.
    Article 34  When the exchange administration agency conducts supervision, inspection, or investigation in accordance with law, there shall be at least two officers conducting the supervision, inspection, or investigation, and the officers shall produce their identification documents. Where there are less than two officers in the supervision, inspection, or investigation or the officers fail to produce their identification documents, the entity or individual subject to supervision, inspection, or investigation shall have the right to refuse.
    Article 35  Domestic entities involved in foreign exchange operations shall submit financial and accounting statements, statistics, and other documents as specified by the foreign exchange administration department of the State Council.
    Article 36  Upon discovery of their clientsforeign exchange violations, the financial institutions conducting foreign exchange operations shall report the cases to the exchange administration agencies in a timely manner.
    Article 37  The foreign exchange administration department of the State Council may obtain information necessary for the performance of its foreign exchange administration duties from the relevant departments and institutions of the State Council, which shall provide the said information.
    The foreign exchange administration department of the State Council shall keep the relevant departments and institutions of the State Council informed of the work on foreign exchange administration.
    Article 38  Any entity or individual has the right to report any foreign exchange violations.
    The exchange administration agencies shall maintain the confidentiality of the reporting persons, and shall, in accordance with the provisions, reward the reporting persons and the entities or individuals who perform meritorious deeds in investigating and penalizing foreign exchange violations.

Chapter VII  Legal Liability

    Article 39  Where anyone transfers foreign exchange abroad in violation of the provisions, or transfers capital abroad by fraudulent means, or commits any other act of foreign exchange evasion, the exchange administration agency shall order the involved foreign exchange to be repatriated within a specific time limit and shall impose a fine of not more than 30 percent of the amount of foreign exchange involved; if the circumstances are serious, a fine of not less than 30 percent of the amount of foreign exchange involved but not more than the total amount involved shall be imposed; if a crime is committed, criminal liability shall be investigated in accordance with law.
    Article 40  Where anyone receives or pays, in violation of the provisions, funds in foreign exchange which should be received or paid in RMB, or purchases foreign exchange from a financial institution conducting foreign exchange settlement and sale operations on the basis of fake or invalid transaction documents, or commits any other act of illegal foreign exchange arbitrage, the exchange administration agency shall order the funds involved in the illegal foreign exchange arbitrage to be reconverted and shall impose a fine of not more than 30 percent of the amount of foreign exchange involved in the illegal arbitrage; if the circumstances are serious, a fine of not less than 30 percent of the amount of foreign exchange involved in the illegal arbitrage but not more than the total amount involved shall be imposed; if a crime is committed, criminal liability shall be investigated in accordance with law.
    Article 41  Where anyone remits foreign exchange into the territory of the Peoples Republic of China in violation of the provisions, the exchange administration agency shall order corrections to be made and shall impose a fine of not more than 30 percent of the amount of foreign exchange involved; if the circumstances are serious, a fine of not less than 30 percent of the amount of foreign exchange involved but not more than the total amount involved shall be imposed.
    Where anyone illegally settles foreign exchange, the exchange administration agency shall order the funds used for the illegal settlement of foreign exchange to be reconverted and shall impose a fine of not more than 30 percent of the amount of money involved.
    Article 42  Where anyone carries foreign exchange in or out of the territory of the Peoples Republic of China in violation of the provisions, the exchange administration agency shall issue a warning and may impose a fine of not more than 20 percent of the amount of foreign exchange involved. Where the laws or administrative regulations provide that a penalty shall be imposed by the Customs, such provisions shall prevail.
    Article 43  Where anyone without authorization raises an external loan, issues bonds overseas, provides an external guarantee, or commits any other act in violation of the external debt administration, the exchange administration agency shall issue a warning and impose a fine of not more than 30 percent of the amount of money involved.
    Article 44  Where anyone, in violation of the provisions, changes the use of foreign exchange, or the use of RMB funds after conversion, the exchange administration agency shall order corrections to be made, and shall confiscate the illegal gains and impose a fine of not more than 30 percent of the amount of money involved; if the circumstances are serious, a fine of not less than 30 percent of the amount of money involved but not more than the total amount involved shall be imposed.
    Where anyone, in violation of the provisions, uses foreign currency within the territory of the Peoples Republic of China for pricing or settlement, or transfers foreign exchange, or commits any other act of illegal use of foreign exchange, the exchange administration agency shall order corrections to be made, shall issue a warning, and may impose a fine of not more than 30 percent of the amount of money involved.
    Article 45  Where anyone trades foreign exchange without authorization or in disguised way, illegally buys and sells foreign exchange, or illegally recommends another person to buy or sell foreign exchange, and if the amount thereof is relatively large, the exchange administration agency shall issue a warning, confiscate the illegal gains, and impose a fine of not more than 30 percent of the amount of money involved; if the circumstances are serious, a fine of not less than 30 percent of the amount of money involved but not more than the total amount involved shall be imposed; if a crime is committed, criminal liability shall be investigated in accordance with law.
    Article 46  Where anyone conducts foreign exchange settlement and sale operations without approval, the exchange administration agency shall order corrections to be made and shall confiscate the illegal gains, if any; if the illegal gains amount to 500,000 yuan, a fine of not less than the amount of the illegal gains but not more than five times that amount shall be imposed in addition; if there are no illegal gains or the illegal gains do not amount to 500,000 yuan, a fine of not less than 500,000 yuan but not more than 2,000,000 yuan shall be imposed; if the circumstances are serious, the relevant department shall order suspension of operations for rectification or shall revoke the business license; if a crime is committed, criminal liability shall be investigated in accordance with law.
    Where anyone conducts foreign exchange operations other than foreign exchange settlement and sale operations without approval, the exchange administration agency or the financial supervisory authority shall impose a penalty in accordance with the provisions of the preceding paragraph.
    Article 47  Where a financial institution is found involved in any of the following circumstances, the exchange administration agency shall order corrections to be made within a specified time limit, and shall confiscate the illegal gains and impose a fine of not less than 200,000 yuan but not more than 1,000,000 yuan; if the circumstances are serious or no corrections are made within the specified time limit, the exchange administration agency shall order termination of the relevant business operations:
    (1) failing to exercise due diligence in checking the authenticity of the transaction documents and their consistency with the receipts and payments in foreign exchange when handling receipts and payments for current account transactions;
    (2) handling receipts and payments for capital account transactions in violation of the provisions;
    (3) conducting foreign exchange settlement and sale operations in violation of the provisions;
    (4) violating the comprehensive position management of foreign exchange operations; or
    (5) violating the administration of trading in the foreign exchange market.
    Article 48  Where any of the following circumstances are found, the exchange administration agency shall order corrections to be made, shall issue a warning, and may impose a fine of not more than 300,000 yuan for an entity, or a fine of not more than 50,000 yuan for an individual:
    (1) failing to compile or report the balance of payments statistics as required by the provisions;
    (2) failing to submit documents such as financial and accounting statements and statistics as required by the provisions;
    (3) failing to produce valid documents or producing false documents in violation of the provisions;
    (4) violating the provisions on the administration of foreign exchange accounts;
    (5) violating the provisions on foreign exchange registration; or
    (6) refusing to cooperate with, or obstructing, the exchange administration agencies in their supervision, inspection, or investigation in accordance with law.
    Article 49  Where a domestic entity violates the provisions on foreign exchange administration, it shall be penalized in accordance with these Regulations, and in addition, the person in charge with competent accountability and any other person with competent accountability shall be sanctioned; a director, supervisor, or senior manager with competent accountability to a financial institution, or any other person with competent accountability, shall be issued a warning and fined not less than 50,000 yuan but not more than 500,000 yuan; if a crime is committed, criminal liability shall be investigated in accordance with law.
    Article 50  Where a staff member of the exchange administration agency commits illegal activities for personal gain, abuses his power, or neglects his duties, he shall be investigated for criminal liability in accordance with law if he has committed a crime; if his act does not constitute a crime, he shall be sanctioned in accordance with law.
    Article 51  Where a party disagrees with a specific administrative act performed by the exchange administration agency, it or he may apply for administrative reconsideration in accordance with law; if the party disagrees with the decision of the administrative reconsideration, it or he may bring administrative suit in a peoples court in accordance with law.

Chapter VIII  Supplementary Provisions

    Article 52  As used in these Regulations:
    (1) Domestic entitiesrefers to State organs, enterprises, institutions, public organizations, or the armed forces, etc. within the territory of the Peoples Republic of China, excluding foreign diplomatic and consular agencies in China and representative offices of international organizations in China.
    (2) Domestic individualsrefers to Chinese citizens, or foreign nationals who have continuously lived in the Peoples Republic of China for more than one year, excluding foreign diplomats in China and resident representatives of international organizations in China.
    (3) Current account transactionsrefers to the transaction items in the balance of payments involving goods, services, income, and current transfers, etc.
    (4) Capital account transactionsrefers to the transaction items in the balance of payments leading to changes in external assets and liabilities, including capital transfers, direct investments, portfolio investments, derivatives, loans, etc.
    Article 53  Non-financial institutions that intend to conduct foreign exchange settlement and sale operations shall obtain approval from the foreign exchange administration department of the State Council. The specific measures for administration in this regard shall be formulated separately by the foreign exchange administration department of the State Council.
    Article 54  These Regulations shall be effective as of the date of promulgation.

 

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Notice of the SAFE on Relevant Issues Concerning the Operation of the Foreign Exchange Business Information System for Direct Investment and the Foreign Exchange Account System

Date:2008-08-05

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
The Foreign Exchange Business Information System for Direct Investment (hereinafter referred to as the Investment System) has operated steadily since its nationwide promotion on May 1, 2008. During this period, in order to guarantee the integrity of the data in the foreign exchange account system, SAFE personnel have had to input information, such as the foreign-invested enterprise information and the capital account opening approval information, into the foreign exchange account system through the special counter for corporate archives after inputting this information into the Investment System. Now that the systems are operating normally, in order to thoroughly solve the problem of repeated inputs and to realize the sharing of investment information in other business systems, the SAFE Leading Group Office for the Promotion of the Investment System has recently formulated and implemented a solution. We hereby provide notification on the relevant issues concerning the operation of the solution as follows:
I.Foreign-invested enterprise information. After SAFE personnel have completed the registration of foreign-invested enterprise information in the Investment System, they will send this information to the foreign exchange account system through a synchronous software (the software can be downloaded from the SAFE internal portal Web site; the download address is: http//101.1.3.84/tabid/133/In-foID/256969/Default.do ), and need not input this information into the foreign exchange account system through the special counter for corporate archives. The foreign-invested enterprise information that is sent to the foreign exchange account system through the synchronous softwarewill be automatically transmitted to the enterprise database of the SAFEs foreign exchange information archives to be shared with other business systems on the first day after the trading day.
II.Account-opening approval information for the capital account and the special accounts under other investment items. After SAFE personnel have granted  account-opening approval for the capital account and the special accounts under other investment items for an enterprise, they need not input this information into the foreign exchange account system. At the same time, all relevant designated foreign exchange banks shall complete the feedback operations in the Investment System after receiving the approval. Hereafter, the banks shall uniformly fill in an Nin the approval number column when reporting enterprise information regarding the opening of the above-mentioned accounts in the foreign exchange account system.
III.All SAFE branches shall, upon receipt of this Notice, immediately forward it to the institutions within their respective jurisdictions, urban commercial banks, rural commercial banks, and foreign-funded banks; all designated Chinese-funded foreign exchange banks shall, upon receipt of this Notice, immediately forward it to their subordinate branches. If any entity encounters problems in the implementation of this Notice, please promptly contact the Leading Group Office for the Promotion of the Investment System. Tel: 010-68402518 010-68402519

                                                    August 5, 2008

 

 

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Circular of the General Affairs Department of the SAFE on the Official Operation of the On-line Inspection System for Foreign Exchange Collection and Settlement of Export Proceeds

Date:2008-08-04

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
Since implementation of the policy for the on-line inspection of the collection and settlement of foreign exchange from exports on July 14, 2008, the trial run of the on-line inspection system for foreign exchange collection and settlement of export proceeds has operated normally, and the policy effects have become apparent. During the trial-run period of the inspection system, the SAFE actively tracked the implementation of the policy, reinforced professional guidance and policy interpretation, and promptly released documents for clarification with respect to some common problems. All local SAFE offices, according to the requirements of the SAFE, carefully organized implementation, reinforced policy interpretation and operating instructions, and effectively guaranteed the smooth enforcement of the policy. The inspection system began formal operations as of August 4, 2008. The relevant issues are hereby further clarified as follows:
I. The banks shall conduct on-line inspections of electronic data on foreign exchange export proceeds collected by enterprises in accordance with the relevant regulations of the Circular of the SAFE, the MOFCOM, and the General Administration of Customs on Printing and Distributing the "Measures for On-line Inspection of Foreign Exchange Collection and Settlement of Export Proceeds" (Huifa No.29 [2008]), the Circular of the State Administration of Foreign Exchange on Issues concerning Implementation of Management of the Registration of the External Debt under the Item of Corporate Trade in Goods (Huifa No.30 [2008]), and the Circular of the SAFE on Issues related to Implementation of the Measures for the On-line Inspection of Foreign Exchange Collection and Settlement of Export Proceeds  (Huifa No.31 [2008]).
II. Enterprises shall not handle the formalities for the collection and settlement of foreign exchange from exports by forging, altering, or borrowing the export declaration forms; the export declaration forms from previous collections of foreign exchange or collections of foreign exchange with the imported materials deducted shall not be used repeatedly for the collection and settlement of foreign exchange.
III. All SAFE branches shall strengthen professional guidance for the central sub-branches and sub-branches within their respective jurisdictions, effectively supervise and inspect the policy implementation of the banks and enterprises within their respective jurisdictions, and publicize, explain, and provide policy guidance, so as to facilitate the business transactions of the banks and enterprises.
All SAFE branches shall, after receiving this Circular, immediately forward it to all central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units. If any entities encounter problems in the implementation of this Circular, feedback should be sent to the State Administration of Foreign Exchange in a timely manner.

                                                                  August 4, 2008

 

 

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Circular of the SAFE on Relevant Issues Concerning the Implementation of Online Inspection when there are Inconsistencies between the Export Entity and the Foreign Exchange Collection Entity

Date:2008-07-28

 

The branches and the foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, all SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:

For the purpose of solving the problem that banks cannot conduct online inspections of the collection and settlement of foreign exchange from exports due to inconsistencies between the foreign exchange collection entity and the export entity caused by changes relating to the exclusive distributor or the authorized parent company and its branches (subsidiaries), in line with the relevant provisions of the Circular of the SAFE on Relevant Issues Concerning the Implementation of the Measures for Online Inspections of the Foreign Exchange Collection and Settlement of Export Proceeds (Huifa No. 31 [2008], hereinafter referred to as No.31 Document), we provide notification on the relevant issues as follows:

1. The inconsistencies between the foreign exchange collection entity and the export entity due to changes relating to the exclusive distributor or the authorized parent company and its branches (subsidiaries) prior to December 31, 2008: the foreign exchange collection entity shall file a written application with the local SAFE branches (hereinafter referred to as the foreign exchange departments), and submit the export contract or agreement and other relevant evidential materials together with duplicate copies. The foreign exchange collection entity shall, upon the approval of the foreign exchange departments, handle the foreign exchange sales or outward transfers in the to-be-checked account by holding the Note for Foreign Exchange Collection of Export Proceeds, the operator IC card of the export entity, and the approval document of the foreign exchange departments. The bank shall, in accordance with the provisions in the Measures for Online Inspections of the Foreign Exchange Collection and Settlement of Export Proceeds, handle the relevant procedures for the online inspection of the foreign exchange collection and settlement of export proceeds and other formalities for the foreign exchange collection entity within the amount of foreign exchange receivable corresponding to the export entity.

The foreign exchange departments shall retain the written application of the foreign exchange collection entity and the duplicate copies of the relevant evidential materials for further reference after handling the aforesaid approval procedures.

2. Beginning on January 1, 2009, the export business of exclusive distributors or  authorized parent companies and their branches (subsidiaries) shall be handled in line with the relevant provisions in the Measures for Online Inspections of the Foreign Exchange Collection and Settlement of Export Proceeds and No. 31 Document, that is, the export entity, the foreign exchange collection entity, and the entity on the online inspection must be consistent.

For inconsistencies in export contracts that are signed or before the date of issuance of the Circular and prescribed to collect foreign exchange after January 1, 2009, the inconsistencies should be handled by referring to the first provision in this Circular.

For inconsistencies in export contracts that are signed after the date of issuance of this Circular, the inconsistencies shall be handled in accordance with these Measures.

3. This Circular shall apply to enterprises that are approved by the foreign exchange departments to carry out centralized collection and settlement of foreign exchange.

4. Any inconsistencies between the foreign exchange collection entity and the export entity due to the mergers or separations of the foreign exchange collection entity shall be handled by referring to the first provision in this Circular.

All branches and foreign exchange administration departments of the State Administration of Foreign Exchange shall, upon receipt of this Circular, immediately forward it to all central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units; All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. When an entity encounters any problems in the implementation of this Circular, feedback should be sent to the Current Account Management Department of the SAFE in a timely manner.

                                                           July 28, 2008

 

 

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Circular of the SAFE on Printing and Distributing the Emergency Plan for Online Inspection Systems for the Foreign Exchange Collection and Settlement of Export Proceeds and for Import Declarations

Date:2008-07-25

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; all designated Chinese-funded foreign exchange banks::
To effectively respond to sudden incidents arising from the Online Inspection Systems for Foreign Exchange Collection and Settlement of Export Proceeds and for Import Declarations, and to ensure that enterprises conduct the relevant business in a smooth and timely manner, the SAFE has worked out the Emergency Plan for Online Inspection Systems for Foreign Exchange Collection and Settlement of Export Proceeds and for Import Declarations (see the attachment) which has now been printed and distributed. Please comply with it.
All the branches and foreign exchange management departments of the SAFE shall forward this Circular promptly to the sub-branches, urban commercial banks, rural commercial banks, rural cooperative banks, and foreign-funded banks within their respective jurisdiction upon receipt of this Circular; all designated Chinese-funded foreign exchange banks shall forward this Circular to their subordinate branches within their respective jurisdictions. Any problems that are encountered during implementation shall be reported to the Current Account Management Department of the State Administration of Foreign Exchange.
Attachment: Emergency Plan for Online Inspection Systems for Foreign Exchange Collection and Settlement of Export Proceeds and for Import Declarations
                                                                      July 25, 2008

The Emergency Plan for Online Inspection Systems for Foreign Exchange Collection and Settlement of Export Proceeds and for Import Declarations
This Emergency Plan has been established for the purpose of effectively responding to sudden incidents arising from the online inspection systems for foreign exchange collection and settlement of export proceeds and for import declarations, and for ensuring that enterprises conduct the relevant business in a smooth and timely manner.
1. This Emergency Plan applies to the State Administration of Foreign Exchange, its branches and sub-branches (hereinafter referred to as the foreign exchange departments) and the designated foreign exchange banks (hereinafter referred to as the banks).
2. When a nationwide system default occurs in the online inspection system for foreign exchange collection and settlement of export proceeds or on the online inspection system for import declarations and results in a system breakdown, the SAFE shall release circulars or issue information on the Emergency Information Release Platform, so as to launch this Emergency Plan. When a system default occurs in the online inspection system of foreign exchange collection and settlement of export proceeds or the online inspection system of import declarations and results in a system breakdown in a certain region, the local foreign exchange department shall release a circular or take other measures to launch this Emergency Plan and to report it to the Current Account Management Department, Information Center, and General Affairs Department (offices on duty) of the SAFE for the record.
3. The foreign exchange department and banks shall, upon receipt of this notice on launching the Emergency Plan for the Online Inspection System for Foreign Exchange Collection and Settlement of Export Proceeds, implement the following emergency measures:
(a). During the period of the system default, all banks shall manually handle the procedures for foreign exchange sales or outward transfers in the to-be-checked accounts of the enterprises for foreign exchange collection of export proceeds (hereinafter referred to as foreign exchange sales or outward transfers in the accounts). When handling foreign exchange sales or outward transfers in the accounts, the banks shall check the paper-based originals and the duplicates of the export customs declarations provided by the enterprises, and then carry out the foreign exchange sale or outward transfer in the accounts within the receivable amount of foreign exchange as stipulated in Article 6 of the Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds; when conducting foreign exchange sales or outward transfers of advance receipts, the foreign exchange department can approve it on the form for the Approval of Foreign Exchange Transactions under the Capital Account, and the banks shall carry out the foreign exchange sale or outward transfer after checking the approval documents of the local foreign exchange department. For requests for foreign exchange sales or outward transfers in the accounts under export customs declaration without goods, the banks shall check the foreign-related revenue declarations, the lists of mailing goods, and other certificates, and then carry out the foreign exchange sale or outward transfer. If any suspicious or abnormal business is discovered, the banks shall refuse to carry out the foreign exchange sale or outward transfer.
(b). When carrying out foreign exchange sales or outward transfers in the accounts during the period of a system default, the banks shall make detailed records in the Logbooks of Unchecked Foreign Exchange Sales or Outward Transfers, and shall retain them for six months for future reference. The banks shall, according to the records in the Logbooks of Unchecked Foreign Exchange Sales or Outward Transfers, thereafter make an online inspection with the IC cards of the operators of the banks and enterprises within five working days after the system resumes normal operations, and shall offset the receivable amount of foreign exchange in the online inspection system for foreign exchange collection and settlement of export proceeds. If there is no receivable amount of foreign exchange or any other situation that cannot be inspected and noted online, the banks shall report it to the local foreign exchange department within five working days. After receiving the banks report, the foreign exchange department shall check the situation in a timely manner.  If an abnormal foreign exchange collection is found, the said department shall transfer the case to the foreign exchange investigation department for investigation.
(c). The banks shall keep a close watch on the operations of the system at all times. After the system resumes normal operations, the banks shall immediately carry out the sale or outward transfer of foreign exchange in the accounts through the online inspection system for foreign exchange collection and settlement of export proceeds according to normal business procedures. The foreign exchange department shall supervise and urge the banks within their respective jurisdictions to follow the above requirements in a timely manner.
(d). The banks shall make indications of the sale or outward transfer of foreign exchange on the corresponding original documents after carrying out the foreign exchange sale or outward transfer in the accounts for enterprises during the period of a system default, shall affix the banks official seal, and shall retain the Note on Foreign Exchange Collection and copies of the relevant documents for five years for future reference.
(e). The foreign exchange department shall take proper methods to make special or sample inspection of the banks within their respective jurisdictions in implementing various measures of the Emergency Plan. Any bank which is found to utilize the emergency measures in a disguised form to conduct foreign exchange sales or outward transfers in the account not through the online inspection system for foreign exchange collection and settlement of export proceeds shall be seriously dealt with according to the law.
4. The foreign exchange department and banks shall, when receiving the notice on the launching of the Emergency Plan on the Online Inspection System for Import Declarations, carry out the following emergency measures:
(a). All relevant business shall be carried out manually. For those enterprises that handle the payment of foreign exchange with an import customs declaration for the method of remittance on delivery of the goods at the banks, the foreign exchange department shall handle the Record Form for Import Payments in Foreign Exchange for enterprises under the item of the authenticity verification after carrying out the registration, and shall retain the original customs declarations and other certificates. For those enterprises that handle the verification and writing-off formalities of foreign exchange at the local foreign exchange department, the said department shall carry out the verification and writing-off formalities with the original documents for the customs declarations after carrying out the registration, and shall retain the original customs declarations.
(b). When conducting the aforesaid transactions during the period of a system default, the foreign exchange department shall make a detailed record in Logbook of Unchecked Customs Declarations. The said department shall make notes on the original documents of the customs declarations in China E-Port -- the Online Inspection System for Import Declarations -- and close the cases within five working days after the system resumes normal operations and return the original customs declarations to the banks or the import enterprises according to the stipulations.
5. During the period of a system default in the Online Inspection Systems for Foreign Exchange Collection and Settlement of Export Proceeds and for Import Declarations, the foreign exchange department and banks shall patiently provide explanations to the enterprises and do a good job in handling sudden incidents according to the provisions of this Emergency Plan.

Contact numbers of relevant departments:
Office on duty, SAFE: 010-68402255(for 24 hours) 68402154(fax)
Information center, SAFE: 010-68402499
Current Account Management Department, SAFE: 010-68402450
Capital Account Management Department, SAFE: 010-68402163
China Electronic Port Data Center :010-85193779

 

 

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Circular of the SAFE on Relevant Issues Concerning the Financial Institution Identification Code for Online Inspections of Foreign Exchange Collection and Settlement of Export Proceeds

Date:2008-07-22

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
In accordance with the provisions of the Circular of the State Administration of Foreign Exchange, the Ministry of Commerce, and the General Administration of Customs on Printing and Distributing the Measures for Online Inspections of Foreign Exchange Collection and Settlement of Export Proceeds (Huifa No.29 [2008]), a bank shall log onto the inspection system upon the strength of its own operator IC card, and conduct an online inspection of the collection of foreign exchange from the exports of the enterprise. Meanwhile, a bank can only apply for an operator IC card at the local card manufacturing sub-center of the China E-port center after obtaining a financial institution identification code. For the purpose of coordinating the implementation of the online inspection of foreign exchange collection and settlement of export proceeds, we hereby provide notification of the relevant issues concerning the financial institution identification code as follows:
1. Procedures for applying for an IC card by a bank that has obtained a financial institution identification code
A bank that has obtained a financial institution identification code and is applying for an IC card at the local card manufacturing sub-center: if the financial institution identification code can not be found, the bank shall go to the balance of payments department at the local SAFE branch to request the code. The business staff of the department shall log onto the new Statistical and Monitoring System for the Balance of Payments (hereinafter referred to as the new BOP system), and take the following measures based on the situation:
(a). If the local SAFE branch has recorded the financial institution identification code of the bank and other relevant information into the new BOP system, it shall further verify the basic financial institution information form of the bank, correct the wrong information, and inform the bank that it should apply for an IC card at the local card manufacturing sub-center after five working days.
(b). If the local SAFE branch has not recorded the financial institution identification code of the bank and other relevant information into the new BOP system, it shall input the basic financial institution information form of the bank into the new BOP system on the same working day, print the form and fax it to the SAFE balance of payments department (010-68519211), and inform the bank that it should apply for an IC card at the local card manufacturing sub-center after five working days.
II. Procedures for applying for an IC card by a bank that has not obtained a financial institution identification code
A bank that has not applied for a financial institution identification code: It shall apply for a financial institution identification code in line with the relevant provisions of the Operating Rules on the Statistical Declaration of Balance of Payments via Financial Institutions (Trial) (see the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Popularization of the New Statistical and Monitoring System for the Balance of Payments (Huifa No.57 [2006]) Annex b). The balance of payments department at the local SAFE branch shall compile and distribute the financial institution identification code in accordance with the Operating Rules on the Statistical Declaration of Balance of Payments via Financial Institutions (Trial), input the basic financial institution information form of the bank into the new BOP system on the same working day, print the form and fax it o the SAFE balance of payments department (010-68519211), and inform the bank that it apply for an IC card at the local card manufacturing sub-center after five working days.
3. The balance of payments departments of all SAFE branches and sub-branches shall compile the financial institution identification codes in line with the relevant provisions of the Operating Rules on the Statistical Declaration of Balance of Payments via Financial Institutions (Trial), and ensure that each financial institution outlet grant only one financial institution identification code, prohibiting the granting of a repeated code.
4. The SAFE shall, upon receipt of the change in the situation of the financial institution identification code, send it to China E-port within three working days so that the bank can receive an IC card at the local card manufacturing sub-center.
5. All SAFE branches shall, after receiving this Circular, immediately forward it to all central sub-branches, sub-branches, and banks under their respective jurisdiction.

                                                                July 22, 2008

 

 

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Circular of the SAFE on Relevant Issues Concerning the Settlement or Transfer of Foreign Exchange for the Advance Receipts of Some Enterprises during the Transition Period

Date:2008-07-21

 

The branches and the foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
Please be notified of the following:
The trade credit registration management system and the online inspection system for foreign exchange collection and settlement of export proceeds have begun on a trial basis as of July 14, 2008. After the running of the two systems, owing to the fact that networking operations have not yet been realized and the initial value of the collectible amount of foreign exchange for the advance receipts of some enterprises which is given by the system is small or zero, these enterprises are unable to conduct settlement or transfer of foreign exchange for advance payments received at a bank after July 14 in a timely fashion. In response to these problems, we hereby provide notification on the relevant issues concerning confirmation of the enterprisesregistration for the withdrawal of advance receipts prior to the networking operations of the systems as follows:
1. For those enterprises whose registration for the withdrawal of advance receipts has been confirmed, the SAFE shall distribute the confirmation list of the enterprisesregistration for the withdrawal of advance receipts to all branches in a timely manner, and send the list in disk form to China E-port. All branches will notify the relevant enterprises to handle the procedures for the settlement or transfer of foreign exchange at a bank upon the strength of the list.
2. For these enterprises that have newly launched foreign trade business (Note: enterprises that have no record of collecting foreign exchange from exports by May 30, 2008), if the advance receipts occurred after July 14, these enterprises shall register for the withdrawal of advance receipts in the trade credit registration management system, and then apply for confirmation of the registration of the withdrawal of advance receipts at the local SAFE branch and submit the following materials:
(a) A written application (see the Annex for the format);
(b) The signed export contract (for future exports) (an export agency must submit an export agency agreement).
(c) Other materials.
The local SAFE branches shall first check the basic information on the enterprise in the enterprise foreign exchange information archives database system upon receiving an written application from an enterprise (if the SAFE branches cannot find the basic information for the enterprise in the database system, they shall ask the enterprise to open an account in the database system in line with the relevant provisions, and to provide the basic information). Second, they shall examine and verify the trade authenticity of the enterprises in accordance with the materials provided, and based on that they shall offer an Approval Document for Foreign Exchange Business under the Capital Account to those enterprises that meet the examination and verification requirements. The enterprises shall, upon the strength of the approval documents, handle the procedures at a bank for the settlement and transfer of foreign exchange for advance receipts.
3. For these enterprises that have already launched foreign trade business (Note: enterprises that have a record of collecting foreign exchange from exports by May 30, 2008), and the advance receipts to be collected or withdrawn are within the verified rate of the local SAFE branches, the enterprises may directly handle the procedures for the settlement or transfer of foreign exchange at a bank after registering for a withdrawal. When the advance receipts to be settled or transferred exceed the verified amount, the enterprises shall apply for confirmation of the registration for the withdrawal of advance receipts to the local SAFE branches and shall submit the following materials:
(a) A written application (see the Annex for the format, with a detailed description of the reasons for the application in the remark column);
(b) Evidential materials concerning the enterprises exports and collection and settlement of foreign exchange during the previous twelve months, etc.;
(c) The signed export contract (for future exports) (an export agency must submit an export agency agreement).
(d) Other materials.
The local SAFE branches shall examine and verify the trade authenticity of the enterprises in a timely fashion and on this basis shall provide the Approval Document for Foreign Exchange Business under the Capital Account to the enterprises that fulfill the examination and verification requirements. The enterprises shall, upon the strength of the approval documents, handle the procedures at a bank for the settlement or transfer of foreign exchange for advance receipts.
4. After the networking operations of the trade credit registration management system and the online inspection system for foreign exchange collection and settlement of export proceeds are realized, all the branches and foreign exchange administration departments shall, in a timely fashion, record the conditions of the enterprisessettlement or transfer of foreign exchange for advance receipts that have been verified in accordance with the Approval Document for Foreign Exchange Business Under the Capital Account in the column of the advance receipt amount specially approved for enterprises in the trade credit registration management system.
All the branches and foreign exchange administration departments shall, in light of the principles and requirements for the administration of short-term external debt, strengthen the investigation and analysis of the operational conditions of the foreign trade enterprises under their respective jurisdictions, grasp the historical and actual conditions of the advance receipts of the enterprises, and conduct scientific administration over the trade credit of the enterprises; perfect the trade credit statistical and monitoring administration, while providing convenient services for the normal trade financing of the enterprises and the normal business operations of the banks.
                                                           July 21, 2008

 

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Circular of the SAFE on Issues Concerning the Handling the Trade-related Collection and Settlement of Foreign Exchange upon the Strength of the Paper Export Declaration Form

Date:2008-07-18

 


The branches and the foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:
Since the promulgation of the Circular of the SAFE on Implementing the Measures for Online Inspections of Foreign Exchange Collection and Settlement of Export Proceeds (Huifa No.31 [2008]) (hereinafter referred to as the Circular), some enterprises have complained about inaccuracies of the initial data regarding the collectible amount of foreign exchange of export proceeds in the Inspection System for Foreign Exchange Collection and Settlement of Export Proceeds (hereinafter referred to as the Inspection System). To guarantee that this problem does not prevent enterprises from normally handling foreign exchange collection and settlement of export proceeds, we hereby provide notification on the relevant issues as follows:
1. When an enterprise exported between January 1, 2008 and June 30, 2008, and is scheduled to collect foreign exchange after July 14, 2008, but the Inspection System reports that its collectible amount of foreign exchange under the item other tradeis zero or insufficient, the enterprise may, before September 30, 2008, directly settle or transfer out the foreign exchange in the to-be-inspected account at a bank upon the strength of the Letter of Authenticity Commitment (see the Annex for the format, which the enterprises may use as a reference), the original export declaration form bearing the verification seal of the Customs, and a photocopy thereof bearing the official seal of the enterprise.
2. When an enterprise settles or transfers out foreign exchange in the to-be-inspected account at a bank according to the Circular upon the strength of the export declaration form with an export date of between January 1, 2008 and June 30, 2008, the bank shall log onto the Inspection System and inquire about the enterprises collectible amount of foreign exchange under the item other trade.If the collectible amount is less than the amount to be settled or drawn out, the bank shall write off the collectible amount in the Inspection System according to the Circular, and for the insufficient part, it shall handle the relevant formalities for the enterprise after verifying the documents submitted, making note of the foreign exchange that is collected on the original export declaration form bearing its official seal, and retaining the Letter of Commitment and a photocopy of the original export declaration form for future reference.
3. An enterprise shall not handle the formalities for the collection and settlement of foreign exchange from export proceeds by forging, altering, or borrowing an export declaration form; the export declaration form for previous collections of foreign exchange or the collection of foreign exchange with the deduction of the imported materials shall not be used repeatedly for the collection and settlement of foreign exchange.
4. The bank shall, after making a copy of the Letter of Commitment and a photocopy of the original export declaration form for the files, send them together to the local SAFE branches before October 10, 2008. All SAFE branches or sub-branches shall review the enterprises collection of foreign exchange from export proceeds based upon the strength of the paper-based export declaration form; when an enterprise handles the settlement or transfer out of foreign exchange in the to-be-inspected account upon the strength of the export declaration form for the previous collection of foreign exchange or the collection of foreign exchange with the deduction of the imported materials, the said administration shall deduct the corresponding amount of foreign exchange settled or transferred out from the corresponding collectible amount of foreign exchange of the enterprise, and impose penalties on the enterprise in accordance with the Regulations of the Peoples Republic of China on the Management of Foreign Exchange and other relevant provisions.
All branches shall, upon receipt of this Circular, immediately forward it to all central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units. All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. If any entity should encounter any problems in the implementation of this Circular, feedback should be sent to the State Administration of Foreign Exchange in a timely manner.
July 18, 2008

Annex:
                                  Letter of Commitment
________It is hereby committed that:
The Company (hereinafter referred to as the Unit) has applied for the handling of the settlement and outward transfer of foreign exchange in the to-be-inspected account upon the strength of the export declaration form (Number of the declaration form: ×××××).  We guarantee that all the documents provided are objective and authentic, and conform with the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Issues Concerning Trade-related Collection and Settlement of Foreign Exchange upon the Strength of the Paper Export Declaration Form (Huizongfa No.118 [2008]) and other relevant provisions for the administration of foreign exchange, without providing false materials, involving  cases of repeated collection and settlement of foreign exchange, or concealment of the true facts, etc. In cases of misrepresentations, we are willing to assume responsibility and accept the penalties in accordance with the Regulations of the Peoples Republic of China on the Management of Foreign Exchange and other relevant provisions.
 
        Person in charge of the Unit / Legal Representative (Seal)
                             (Official Seal of the Enterprise )
                                                              Year /month/ date

 

 

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Notice of the Current Account Management Department of the SAFE on Relevant Issues Concerning Completing the Opening of Olympic Temporary Foreign Exchange Accounts for Overseas Institutions

Date:2008-07-17

 

All current account management departments under the branches and the foreign exchange administration departments of the State Administration of Foreign Exchange in Tianjin, Liaoning, Shanghai, Beijing, Hebei, and Qingdao:
Please be notified of the following:
For the purpose of facilitating the opening of Olympic temporary foreign exchange accounts for overseas institutions during the 2008 Beijing Olympic Games and the Paralympic Games, the State Administration of Foreign Exchange (SAFE) has entered the names, the special institutional codes, and other information on the relevant overseas institutions as provided by the BOCOG (the name-list is attached in the Annex) into the Enterprise Foreign Exchange Archives Database System. For the purpose of completing work in opening the accounts and clarifying relevant operations, we hereby provide notification on the relevant issues as follows:
`. All branches and foreign exchange administration departments (hereinafter referred to as the Administration of Foreign Exchange) shall assign business personnel to log onto the Enterprise Foreign Exchange Archives Database System upon receipt of this Notice, and to save the basic information on the relevant overseas institutions in the Foreign Exchange Account Management Information System in accordance with the special institutional codes on the list, so as to facilitate inquiries from the branches of the Bank of China. 
II. The overseas institutions on the list can apply directly to open an Olympic temporary foreign exchange account in the Bank of China. The Bank of China shall first log onto the Foreign Exchange Account Information Interaction Platform for inquiries upon acceptance of the application. For those overseas institutions that have their basic information recorded in the Foreign Exchange Account Management Information System, the Bank of China shall handle the account-opening procedures in line with the regulations; for those institutions that do not have their basic information recorded in the Foreign Exchange Account Management Information System, the Bank of China shall ask the applying institutions to first provide written confirmation from the BOCOG, and then report it to the local SAFE office in a timely manner.
b. The Bank of China shall report to the local SAFE office in writing within five working days after the date of opening of an Olympic temporary foreign exchange account. All local SAFE offices shall report the opening of Olympic temporary foreign exchange accounts in writing within their respective jurisdictions to the State Administration of Foreign Exchange before October 17, 2008.
IV. The opening, income and payment scope, the period of validity, and other items regarding the Olympic temporary foreign exchange account for overseas institutions shall be handled in accordance with the relevant regulations in the Letter of the State Administration of Foreign Exchange on Providing the Necessary Policy Information for the Compilation of the Media Guide for Foreign Journalists during the Beijing Olympic Games (Huihan[2006]No.71).


Annex: Lists of Overseas Institutions and Special Institutional Codes

SAFE Current Account Management Department
                                              July 17, 2008

 

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Reply of the Current Account Management Department of the SAFE regarding BOCOG Issues with respect to Purchases of Foreign Exchange and Cash Withdrawals

Date:2008-07-10

 

Finance Department of the BOCOG:
Please be informed of the following:
Your Letter Asking for Simplified Procedures for Foreign Exchange Purchases during the Beijing Olympic Games and the Paralympic Games has been received, and the reply is the following:
`. All the Olympic competition venues in Beijing (see the list in the Annex) that grant foreign exchange purchase subsidies to officials of the International Sports Federation and the International Sports Federation for the Disabled shall handle  procedures for the purchase of foreign exchange at the Bank of China by presenting the following materials:
(1). An application to purchase foreign exchange provided by the foreign exchange purchasing unit;
(2).The BOCOG document regarding the allocation of subsidy funds to the competition venues;
(3). A list of the subsidized personnel and the amount of the subsidies;
(4). Proof of paid duty, duty-exemption, or otherwise-paid duty documents.
II. All Olympic competition venue teams in Beijing shall withdraw foreign cash from the Bank of China according to actual needs after handling the above-mentioned procedures. All foreign cash shall be used for the relevant foreign exchange subsidies, and shall not be used for other purposes.
(b). Your department shall consult with the Bank of China, summarize the conditions for foreign exchange purchases and foreign cash withdrawals, and report them to the SAFE Current Account Management Department before October 17, 2008.
(IV). We approve that the Reply of the State Administration of Foreign Exchange on the Issues regarding Domestic Foreign Exchange Transfers and Cash Withdrawals Raised by the BOCOG (Huifan [2007]No.46) be applicable to the Beijing Paralympic Games and the preparatory period and to the members of the International Sports Federation for the Disabled.

Annex: Names of the Olympic Competition Events in Beijing and Information on the Bank Accounts of the Affiliated Venues.

CC.: Olympic Affairs Department, Head Office of Bank of China
Current Account Department of Beijing Foreign Exchange Administration Department
     
SAFE Current Account Management Department
                                     July 10, 2008

 

 

 

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Circular of the SAFE, the MOFCOM, and the General Administration of Customs on Distributing the "Measures for Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds"

Date:2008-07-02

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, municipalities directly under the Central Government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the commercial administrative departments of all provinces, autonomous regions, and municipalities directly under the Central Government, cities with independent budgetary status, and the Xinjiang Production and Construction Corps; Guangdong Customs and all customs directly under the General Administration of Customs; and all designated Chinese-funded foreign exchange banks:
In order to strengthen inspection of the authenticity and conformity of export trade transactions and foreign exchange collection and settlement, the SAFE, the Ministry of Commerce, and the General Administration of Customs jointly worked out the "Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds" (shortened as "the Measures" in the following), which will be implemented as of July 14, 2008.
We hereby print and distribute the Measures for your earnest implementation, and for forwarding to the relevant departments within your jurisdiction. In case any problems are encountered during enforcement, please send timely feedback to the SAFE, the Ministry of Commerce, and the General Administration of Customs.
Contact Number:
Current Account Management Department of the SAFE: (010)68402450
Capital Account Management Department: 010 68402163
Information Center : 010 68402499
Finance Department of the Ministry of Commerce: 010 65197680
Supervision and Inspection Department of the GACC: 010 6519537565195942
Department of Science and Technology: 010 65194852
China Electronic Port Data Center : 010 85193779


13911026803

State Administration of Foreign Exchange
Ministry of Commerce
General Administration of Customs
          July 2, 2008

Annex:  "Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds"
Article 1 In order to improve the administration of foreign exchange collection and settlement of export proceeds under the item of trade in goods by enterprises and to intensify the inspection of the authenticity and conformity of export transactions and foreign exchange collection and settlement, these Measures are promulgated in accordance with the "Regulations on the Foreign Exchange System of the People's Republic of China."
Article 2  Foreign exchange collection and settlement of export proceeds shall be made based on legal and genuine transactions, and shall be subject to the online inspection of electronic export data through the online inspection system for foreign exchange collection and settlement of export proceeds (hereinafter referred to as the inspection system, website: http: // www. chinaport.gov.cn).
Article 3 On the basis of the relevant data in an enterprise's customs declarations for goods export and the data furnished by the foreign exchange administration regarding the advance receipts for goods acquired by the enterprise and in consideration of the trade type of the enterprise as well as the industrial features, the inspection system will generate the receivable amount of foreign exchange corresponding to the exports of the enterprise.
Article 4  The foreign exchange that an enterprise collects (including advance receipts for goods, the same below) shall first be put into the to-be-checked account of the foreign exchange account of export proceeds which is opened in the name of the enterprise at a bank (hereinafter referred to as the to-be-checked account). The range of incomes and payments for the said account shall be specified by the SAFE.
Article 5 After the foreign exchange collection of export proceeds is put into the to-be-checked account, when sales or transfers of foreign exchange are needed, the enterprise shall faithfully fill in the Instructions for Foreign Exchange Collection of Export Proceeds (see Annex) and submit it to the bank for processing along with the operator IC card of the China Electronic Port.
The bank shall log onto the inspection system with its own IC operator card, conduct an online inspection of the enterprise's foreign exchange collection of export proceeds and shall, in pursuance of these Measures, deal with the sales or transfers of foreign exchange within the receivable amount of foreign exchange corresponding to the exports and simultaneously verify and reduce the receivable amount of foreign exchange corresponding to the exports. The bank shall not deal with the sales and transfers of foreign exchange that exceed the receivable amount of foreign exchange corresponding to the exports by the enterprise as indicated in the inspection system.
Article 6  The receivable amount of foreign exchange under the item of other trade such as general trade, processing trade with imported materials, petty border trade, and exports for contracted foreign projects shall be determined on the basis of the total sum of export goods transactions on the Custom Declaration Forms.
The receivable amount of foreign exchange under the item of processing trade with imported materials shall be determined on the basis of the total sum of transactions of the export product on the Custom Declarations Forms and the proportion of foreign exchange collected.
The receivable amount of foreign exchange under the item of advance receipts shall be determined by reference to the enterprise's register of advance receipts following the relevant regulations for administration of the external debt and in combination with the foreign exchange collected by the enterprise from exports and the industrial features, etc. The advance foreign exchange receipts of the enterprise under the item of export buyer's credit shall be incorporated into the management of the receivable amount of foreign exchange as advance receipts of the enterprise.
Article 7 After foreign exchange that is not subject to customs declarations is collected from exports and is put into the to-be-checked account, if the enterprise needs to settle or transfer foreign exchange out of the account, it shall submit the original foreign income declaration form stamped with the bank's official business seal and mail it to the bank with the cargo list and the vouchers and certificates specified in Article 5 of these Measures. The bank shall log into the inspection system to record the corresponding declaration number of the foreign income and the amount of foreign currency collected.
For commissioned agent business, the agent shall be responsible for the export and collection of foreign exchange.  The foreign exchange collected by an agent shall be subject to the online inspection system in accordance with these Measures.  If it is necessary to transfer the original foreign exchange to the principal, the said funds shall be transferred after online inspection of the current online account of the agent, and then be handled following the relevant regulations for the "Administration of Foreign Exchange Transfers within China ." When the principal receives the original foreign exchange transferred by the agent, it shall not put the said foreign exchange in  its to-be-checked account, nor will it be subject to online inspection in accordance with these Measures.
The foreign exchange collection and settlement under the item of trade financing, such as export documentary bills, forfeiting without recourse, and export factoring, shall be subject to the online inspection following the regulations in these Measures.
Article 8  In cases when an enterprise applies to return or compensate abroad any foreign exchange collected from exports for whatever reason, the return and compensation of the foreign exchange shall be handled in line with the relevant regulations concerning compensation of foreign exchange in the "Measures for the Administration of Verification of Foreign Exchange Collection of Export Proceeds specified by the SAFE."
Article 9 In consideration of its business requirements, a bank or an enterprise may apply for an operator IC card at the local China E-port Data Card Manufacturing Sub-center to acquire the corresponding authorization. An enterprise may use its operator IC card to log into the inspection system and to inquire about the receivable amount of foreign exchange corresponding to the exports.
Article 10 The SAFE shall strengthen onsite examination and offsite surveillance of the handling of foreign exchange collection and settlement of export proceeds by banks and enterprises. Those in violation of the relevant regulations on foreign exchange administration shall be punished in accordance with the "Regulations on the Foreign Exchange System of the People's Republic of China"and other relevant provisions. The administrative departments of the Ministry of Commerce shall strengthen management of the records of foreign trade operation rights, accelerate the regulation and development of foreign trade, and punish violations of the foreign trade administrative provisions in accordance with the relevant laws and regulations. The Customs shall further strengthen supervision over export goods, standardize enterprise export declarations, and impose a penalty on those violating the customs laws in accordance with the "Customs Law of the People's Republic of China" and the "Regulations of the People's Republic of China on Implementing Customs Administrative Penalties."
Article 11 These Measures shall apply to foreign exchange collection of export proceeds by individuals with foreign trade operation rights and foreign exchange collection of export proceeds by enterprises engaging in non-bonded cargo within bonded areas.
Article 12 The SAFE, the Ministry of Commerce, and the General Administration of Customs are responsible for interpretation of these Measures.
Article 13 These Measures will come into force as of July 14, 2008. In cases where prior provisions are inconsistent with these Measures, these Measures shall prevail.

 

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Circular of the State Administration of Foreign Exchange on Issues concerning Management of the Registration of the External Debt under the Item of Corporate Trade in Goods

Date:2008-07-02

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; and all designated Chinese-funded foreign exchange banks:
In order to improve the monitoring and management of statistics on the external debt and to prevent risks in external debt payments, the State Administration of Foreign Exchange has decided to manage registration of the external debt under the item of corporate trade in goods in line with the "Regulations on the Foreign Exchange System of the People's Republic of China," the "Provisional Regulations for Statistical Monitoring of the External Debt," and the "Tentative Measures for the Administration of the External Debt," and other regulations, and hereby provides notification as follows:
1. The term "external debt" under the item of corporate trade in goods as referred to in this Circular includes advance receipts of export proceeds and deferred payments of imports. The term "advance receipts" refers to the export proceeds in foreign exchange received on a date as agreed in the export goods contract prior to the export date as stipulated in the contract, or the actual collection date prior to the actual export declaration date; the term "deferred payments" refers to the payment in foreign exchange made on a date as stipulated in an import contract for cash on delivery which is later than the date of import as stipulated in the contract, or actually made on a date more than 90 days later than the date of actual import entry.
2. Registration management shall be adopted for corporate advance receipts and deferred payments. An enterprise may use the Internet or go to the local SAFE branch (shortened as the "SAFE" below) to log onto the trade credit registration management system on the SAFE online service platform (website: www. safesvc.gov.cn), and handle the procedures for registration or cancellation of each advance receipt and deferred payment.
3. From July 14, 2008, in cases where an export contract newly signed by an enterprise includes clauses on advance receipts, or in cases where advance receipts are incurred with no corresponding contract stipulations, the enterprise shall handle the procedures for the contract registration for advance receipts within 15 working days after the contract is concluded or the advance receipt is actually received. Those who actually receive advances with no corresponding contract stipulations shall at the same time handle the registration procedures for the withdrawal of the advance receipts. The enterprise shall handle the registration procedures for the withdrawal of the advance receipts within 15 working days after receiving the advance in line with the contract stipulations.
As for the export declaration of goods or return of foreign exchange for non-exported goods under the item of registered advance receipts, the enterprise shall handle the procedures for cancellation of advance receipts within 15 working days commencing from the date when the goods are exported or the date of return of the foreign exchange. In cases that exceed the goods export date by more than 30 days (including 30 days) under the item of registered advance receipts, the enterprise shall issue a written statement stating the reasons for not canceling the advance receipts, and submit to the SAFE the relevant evidentiary materials for the record. The procedures for the return of foreign exchange shall be handled in line with the relevant regulations concerning return and compensation of foreign exchange in the "Measures for the Administration of Verification and the Writing-Off of Export Proceeds in Foreign Exchange."
Foreign exchange advances of the enterprise under the item of export buyer's credit shall be subject to registration procedures for advance receipts. Foreign exchange proceeds under the item of trade finance such as corporate export bill purchases, forfeiting, and factoring are not subject to the registration procedures for advance receipts.
4. The receivable amount of foreign exchange in advance receipts shall be generated by the registration management system of trade credit on the basis of the registration of the advance receipts, the foreign exchange collection information about the export proceeds of the enterprise, and the industrial features. The bank shall handle the procedures for foreign exchange collection and settlement of advance receipts within the limit of the receivable amount for the enterprise in accordance with the "Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds under Trade in Goods" and other relevant regulations on foreign exchange administration.
5. Beginning from October 1, 2008, in cases when newly signed import contracts by the enterprise include clauses for deferred payments, or when there actually incurs a deferred payment, the enterprise shall handle the procedures for registration of the deferred payment within 15 working days after 90 days from the date when the contract is concluded or the customs issues the import declaration form. The enterprise shall handle the procedures for cancellation of a deferred payment within 15 working days after the registered deferred payment is made under the item of registered deferred payments.
6. The annual cumulative amount of deferred payments registered by the enterprise shall not exceed 10% of the total amount of foreign exchange of the enterprise paid during the previous year. Requirements for deferred payments that exceed the above proportion in areas such as imports of large complete-sets of equipment or the signing of long-term import contracts, as well as requirements for deferred payments by newly-established enterprises, shall be determined by the SAFE in consideration of the industrial features and the actual conditions of the enterprise after soliciting the opinions of the commercial administrative department and the industrial association. The bank shall handle the procedures for the purchase and payment of foreign exchange for deferred payments within the corresponding range for the enterprise in line with the relevant regulations for the purchase and payment in foreign exchange for import trade.
7. The SAFE shall conduct supervision and inspection of the conditions regarding registration and cancellation of the corporate advance receipts and deferred payments.
Any enterprise that does not follow the regulations in this Circular for handling the procedures for registration and cancellation of advance receipts and deferred payments, or uses false contracts to handle the registration, shall be punished in line with the "Regulations on the Foreign Exchange System of the People's Republic of China" and the relevant regulations for external debt administration. After accepting punishment and obtaining approval, the enterprise shall handle the procedures for registration for advance receipts and deferred payments. In cases of deferred payments without registration, no bank shall handle the procedures for the purchase and payment of foreign exchange for the enterprise.
Any enterprise that has not handled the procedures for cancellation registration after 90 days (including 90 days) after registration of the export date under the item of advance receipts and cannot provide satisfactory reasons and that is deemed to have incurred illegal external debts based on the regulations for external debt administration shall be punished by the SAFE in line with the "Regulations on the Foreign Exchange System of the People's Republic of China" and the relevant regulations for external debt administration, and shall be ordered to return the advance receipts and to go through the procedures for cancellation of the advance receipts in accordance with this Circular.
Any bank that handles the procedures for foreign exchange collection and settlement of advance receipts or the procedures for purchase and payment of foreign exchange for deferred payments for an enterprise in violation of this Circular shall be punished in line with the "Regulations on the Foreign Exchange System of the People's Republic of China" and the relevant regulations for external debt administration.
8. The administration concerning the verification and writing-off of the foreign exchange of an enterprise under the item of advance receipts and deferred payments and the administration of deferred payments under the item of "non-cash on delivery," such as a L/C, that exceeds 90 days (not including 90 days) shall be conducted in accordance with the current regulations.
9. This Circular applies to individual foreign trade operators and enterprises in bonded areas under customs supervision which are qualified for foreign trade operations and are engaged in trade in non-bonded goods.
10. This Circular will come into force as of July 14, 2008. Beginning on October 1, 2008, in any cases where relevant prior provisions are inconsistent with this Circular, this Circular shall prevail.
All branches and foreign exchange administrative departments of the SAFE shall, upon receiving this Circular, transmit it in a timely fashion to the central sub-branches and banks under their respective jurisdictions, and shall prepare for earnest implementation. If any problems are encountered in the implementation of this Circular, please promptly report them to the SAFE.
Contact Number:
Capital Account Management Department, SAFE. Yong Liang: 010-68402250
Information Center , SAFE. Yi Wang: 010-68402469                                                        
July 2, 2008

 

 

 

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Circular of the SAFE on Issues related to the Implementation of the Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds

Date:2008-07-02

 

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, municipalities directly under the Central Government, SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; all designated Chinese-funded foreign exchange banks:
The SAFE, the Ministry of Commerce, and the General Administration of Customs jointly promulgated the Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds (Huifa No. 29 [2008] of the State Administration of Foreign Exchange, hereinafter referred to as the Measures) on July 2, 2008. The following relevant issues regarding foreign exchange administration during implementation of the Measures are hereby noted:
1. The online inspection system for foreign exchange collection and settlement of export proceeds (hereinafter referred to as "the inspection system") shall enter into trial operation on the China E-port from July 14, 2008, and shall begin formal operations on August 4, 2008.
From the date of the trial operation of the inspection system, the designated foreign exchange banks (hereafter referred to as "the banks") shall, according to these Measures, carry out online inspection of the electronic data relevant to the foreign exchange collected by an enterprise from exports (including, as below, the foreign exchange collected from abroad from exports and the foreign exchange collected within China in pursuance with the relevant provisions, including advance receipts for goods).
2. The foreign exchange collection of export proceeds of an enterprise shall, according to these Measures, be first put into a to-be-checked account for foreign exchange collection of export proceeds (hereinafter referred to as the to-be-checked account). The to-be-checked account shall be incorporated into the foreign exchange account management information system, with the 1101 code.
The scope of the income in the to-be-checked account is limited to an enterprise's foreign exchange collection of export proceeds. Expenditures from the said accounts shall be handled after undergoing the online inspection of the bank, with the scope including foreign exchange settlement after the online inspection by the bank, inward transfers to the foreign exchange account under the current account of the enterprise, the return of foreign exchange upon approval of the SAFE, and other foreign exchange expenditures. No funds can be transferred between two to-be-checked accounts. Interest on the balance of such accounts shall be calculated on a daily basis.
3. When a bank handles the sale or transfer of foreign exchange in a to-be-checked account for an enterprise, it shall, according to these Measures, make a note within the receivable amount of foreign exchange under the trade category corresponding to the enterprise in the inspection system (namely, inputting the foreign exchange actually sold or transferred and deducting the corresponding receivable amount of foreign exchange, the same applies below):
(1) The receivable amount of foreign exchange under general trade, processing trade with imported materials, petty border trade, exports for contracted foreign projects, or any other type of trade shall be the total sum of transactions in the customs declaration forms under the corresponding export trade category;
(2) The receivable amount of foreign exchange under processing trade with imported materials shall be equal to the total sum of transactions in the customs declarations forms and the proportion of foreign exchange collected. 
(3) The receivable amount of foreign exchange under the advance receipts for goods shall be generated by the trade credit register management system on the basis of the enterprise's registered advance receipts and the foreign exchange which the enterprise has collected from exports during the previous 12 months. Enterprises of special industries, such as the export of vessels and large complete sets of equipment or enterprises collecting advance foreign exchange under the item of export buyer's credit, may, in light of the actual situation, apply to the local SAFE branch to increase the limit on the receivable amount of foreign exchange under the advance cargo payment. When applying, a written application, the export contract, and other materials required by the SAFE shall be submitted. The SAFE shall make its decision regarding approval within 20 working days after receiving the complete set of materials.
After the goods corresponding to the advance receipts to the enterprise are declared and exported, the amount of foreign exchange sold or transferred after the online inspection shall be deducted from the receivable amount of foreign exchange in exports corresponding to the trade category of the enterprise.
4. The rate of the receivable amount of foreign currency collected in the processing trade with imported goods shall be determined by the branches and foreign exchange administrative departments of the SAFE (hereinafter referred to as "the branches") in consideration of the local conditions and shall be reported to the SAFE for archival filing and determination.
For processing trade with imported materials, if the actual proportion of foreign exchange collected exceeds the determined proportion, the enterprise, when handling the exchange sales or transfers to the to-be-checked account, shall submit to the bank the vouchers and certificates specified by the Measures as well as the corresponding export contract, original Export Declaration (Verification Form for Exchange Collection of Export Proceeds, the same below) stamped with the customs' "verification seal," and a photocopy stamped with the enterprise's official seal. The bank shall record the corresponding number of the customs declaration form for exports, the number of the export contract, and the proportion of foreign currency actually collected, and shall make a note of the corresponding receivable amount of foreign currency in the inspection system and then settle or transfer the foreign currency.
In cases when the amount of foreign currency actually collected on one customs export declaration form under the item of the enterprise's processing trade with imported materials exceeds 25%, the handling bank shall submit a written summary report to the local SAFE branch, with copies of the related vouchers and certificates, within the first five working days of each month.
5. In cases in which the export proceeds in foreign exchange have not been collected by June 30, 2008, the receivable amount shall be determined based on the foreign exchange due and the foreign exchange collected from exports and shall be recorded under the "other trade" item of the inspection system. When an enterprise handles the procedures for sales or transfers of foreign exchange collected in exports through the to-be-checked account, the bank shall check the receivable amount of foreign exchange in exports and within the range thereof make a note on the foreign exchange collected.
6. During the trial operation of the inspection system, if it is impossible to conduct an online inspection of the foreign exchange collection of export proceeds following these Measures due to a system or network default or for other reasons, the enterprise may handle the procedures for sales or transfers for the corresponding foreign exchange collection under the to-be-checked account with the corresponding export declaration form stamped with the customs' "verification seal." The bank shall settle or transfer the said foreign exchange after examining the corresponding vouchers and certificates in accordance with the provisions of these Measures.
An enterprise that handles foreign exchange sales or transfers of the to-be-checked account with an export declaration form for which the export date is on or before December 31, 2007 shall first go to the local SAFE branch to handle the procedures for verification and the writing-off formalities for settling or transferring the corresponding foreign exchange in the to-be-checked account. The bank shall settle or transfer the said foreign exchange after checking the corresponding documents under these Measures.
No enterprise may forge, alter, or borrow an export declaration from to collect foreign exchange for exports, or repeatedly use an export customs declaration form to collect foreign exchange for exports under which the foreign exchange for exports has been collected or the foreign exchange has been offset by imported materials.
7. After handling the procedures for foreign exchange sales or transfers in the to-be-checked account following the provisions in these Measures and the Circular, the bank shall make an indication of the already collected foreign exchange in the corresponding original document, affix the bank's official seal, and retain the "Note on Foreign Exchange Collection of Export Proceeds" and copies of the relevant vouchers and certificates for 5 years.
8. The "Circular of the State Administration of Foreign Exchange of the People's Republic of China on Relevant Issues for Improving the Administration of Advance Receipts for Export Goods and Collection of Entrepot Trade in the Present Stage" (Huifa No. 33 [2005]), the "Circular of the State Administration of Foreign Exchange on Further Improving the Administration of Foreign Exchange Collection and Settlement in Trade" (Huifa No. 49 [2006]), the "Circular of the State Administration of Foreign Exchange of the People's Republic of China on Issues concerning Earnestly Implementing the Administrative Policy for Foreign Exchange Collection and Settlement in Trade" (Huifa No. 67 [2006]) and the "Circular of the State Administration of Foreign Exchange of the People's Republic of China on Issues concerning Further Improving the Administrative Approach of 'Pay Attention to Enterprises' in the Settlement of Foreign Exchange" (Huifa No. 45 [2007]) shall be abolished from the date of implementation of these Measures.
The branches of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the central sub-branches, sub-branches, the foreign-funded banks, local commercial banks, and relevant units under their respective jurisdictions. The branches of the SAFE shall strengthen the organizing work for policy implementation, conduct training for organizations and banks under their respective jurisdictions in a timely manner, and do a good job of providing policy interpretations and operational instructions to facilitate the handling of business by banks and enterprises. All designated Chinese-funded foreign exchange banks shall, upon receiving this Circular, transmit it as soon as possible to their subsidiaries. If any problems are encountered in the implementation of this Circular, please promptly report them to the SAFE.
Contact Number:
Current Account Management Department, SAFE:  Jieqiong Chen: 010-68402450
Capital Account Management Department, SAFE:  Yong Liang: 010-68402250
Information Center , SAFE: Yi Wang: 010-68402499
                                        July 2, 2008

 

 

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Notice of the General Affairs Department of the SAFE on Issues Concerning Completing the Administration of Purchases of Foreign Exchange by Overseas Individuals during the 2008 Beijing Olympic Games

Date:2008-06-18

 

The branches and the foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks:

Please be notified of the following:
For the purpose of facilitating purchases of foreign exchange by overseas individuals during the 2008 Beijing Olympic Games, and to strengthen statistical monitoring and management of purchases of foreign exchange by overseas individuals, the State Administration of Foreign Exchange (SAFE) has decided to incorporate the business of purchases of foreign exchange by overseas individuals into the Individual Foreign Exchange Sale and Purchase Management Information System (hereinafter referred to as the Individual Foreign Exchange Sale and Purchase System). We hereby provide notification on the relevant issues as follows:

I. During the period from July 8, 2008 to October 17, 2008 (hereinafter referred to as during the Olympic Games and the Paralympic Games in Beijing), the designated foreign exchange banks (hereinafter referred to as the Banks) shall handle the business of the purchase of foreign exchange by overseas individuals through the Individual Foreign Exchange Sale and Purchase System, including the purchase of foreign exchange with legal RMB income under the current account and the reconversion of unused converted RMB back into the foreign currency.
II. During the Olympic Games and the Paralympic Games in Beijing , "Overseas Individuals Purchasing Foreign Exchange with Income under the Current Account" and "Overseas Individuals Reconverting RMB into Foreign Currency" shall be temporarily added to the "Foreign Exchange Purchase Transaction" module of the Individual Foreign Exchange Sale and Purchase System. The Banks shall use the "Foreign Exchange Purchase Transaction" module to input the relevant information in a valid, accurate, and complete fashion to handle the above-mentioned businesses for overseas individuals, and the three-letter country code and the passport number shall be entered under the "ID card" item.
III. During the Olympic Games and the Paralympic Games in Beijing, the business of purchases of foreign exchange by overseas individuals shall be handled according to the following provisions:
(1). Control over the total annual quota of purchases of foreign exchange by overseas individuals shall be applied in accordance with that for domestic individual purchases of foreign exchange, with a total annual quota equivalent to USD50,000 and the cumulative period being temporarily set as the period during the Olympic Games and the Paralympic Games in Beijing.

(2 When the cumulative purchase of foreign exchange by an overseas individuals falls within the total annual quota of the equivalent of USD50,000 (including USD50,000), it shall be handled at the Bank upon the strength of a valid personal identity certificate.
 (3). When the cumulative purchase of foreign exchange by an overseas individual exceeds the total annual quota for legal RMB income under the current account obtained within the territory, it shall be handled upon the strength of a valid personal identity certificate and the relevant evidential materials denoting the trade volume (including the tax voucher); as for reconverting RMB that was converted but not used back into the foreign currency, it shall be handled upon the strength of a valid personal identity certificate and the original exchange memo.

IV. All banks and overseas individuals shall not evade quota supervision by means of splitting or evading the validity management by using false business documents or vouchers in handling the business of purchase and reconverting foreign exchange.

V. All banks and overseas individuals shall abide by the Measures for the Administration of Individual Foreign Exchange (Decree No.3 [2006] of the People's Bank of China), the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (Hui-Fa Doc. 1 [2007]), and other relevant regulations concerning foreign exchange administration to handle the business of purchasing and reconverting foreign exchange, unless otherwise specified in the Notice.

VI. Beginning on July 1, 2008, all banks can log onto the Individual Foreign Exchange Sale and Purchase System to view the foreign exchange purchase functions and to become familiar with the relevant operations. The new functions shall be formally put into service on July 8, 2008. After October 17, 2008, the statistical regulations on foreign exchange purchases by overseas individuals and other corresponding provisions will be provided separately. All branches and foreign exchange administration departments of the SAFE shall immediately forward this Notice to all sub-branches, urban commercial banks, rural commercial banks, and foreign-funded banks; all designated Chinese-funded foreign exchange banks shall forward this Notice to their subordinate branches as soon as possible. If any entity encounters any problems in the implementation of this Notice, feedback should be sent to the SAFE in a timely manner.

June 18, 2008

 

 

 

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Circular of the SAFE on Relevant Issues Concerning the Further Improvement of  Individual Domestic and Foreign Currency Exchange Business

Date:2008-06-13

 

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, and all designated Chinese-funded foreign exchange banks:


For the purpose of better meeting the needs of the individual domestic and foreign currency exchange business during the Olympic Games, the relevant items are hereby reported as follows:

I. To unify the individual domestic and foreign currency exchange service logos. For those bank outlets and foreign currency exchange agencies that have launched  individual domestic and foreign currency exchange businesses, the unified individual domestic and foreign currency exchange service logos (the specific patterns and parameters are described in the Annex: the Manual for Unified Logos of Individual Domestic and Foreign Currency Exchange, hereinafter referred to as the Manual) shall be placed in a prominent position on the self-help financial instruments (including the self-help exchange machines and ATMs capable of accepting foreign currency cards) at their business outlets before July 31, 2008;for those bank outlets, foreign currency exchange agencies, and self-help financial instruments that have newly launched individual domestic and foreign currency exchange businesses, the unified exchange logos shall be set in a prominent position; all head offices of the designated Chinese-funded foreign exchange banks shall identify the suitable unified exchange logos on their own in accordance with the relevant standards of the Manual and in light of their concrete conditions, and shall guide and supervise the dissemination of the unified logos in their branches and authorized exchange agencies.

II. To actively boost the reconverting business in the foreign currency exchange agencies. The authorized designated foreign exchange banks shall actively implement the spirit of the Circular of the SAFE on Relevant Issues Concerning the Improvement of Foreign Exchange Administration of Foreign Currency Exchange Agencies (Huifa [2007] No.48), work out the relevant systems for developing the reconverting business for the exchange agencies, and strengthen training in light of their own actual conditions; for those foreign currency exchange agencies that are located "inside the borders but outside the customs,"the authorized designated foreign currency exchange banks must allow them to launch a limited volume of reconverting business for overseas individuals.

III. To enlarge the coverage of the domestic and foreign currency exchange service outlets of the banks. All the designated foreign exchange banks shall positively develop the individual domestic and foreign currency exchange service outlets in light of their actual conditions.

IV. For the purpose of solving the inadequacies of the bank outlets in some regions, the banks may sign agreements with domestic non-independent corporate bodies that have handled registration procedures with the Administration for Industry and Commerce and have been authorized by the corporate bodies with which they are affiliated. The domestic non-independent corporate bodies can handle the individual domestic and foreign currency exchange business upon authorization by the banks.

V. To improve the service level of the individual domestic and foreign currency exchange business. All banks and foreign currency exchange agencies under  contract shall earnestly fulfill their exchange duties in accordance with the requirements of the Measures for the Administration of Individual Foreign Exchange (Decree No.3 [2006] of the People's Bank of China), the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange, the Interim Measures for the Administration of Foreign Currency Exchange Agencies (Decree No.6 [2003] of the People's Bank of China), and the Circular of the SAFE on Relevant Issues Concerning Improvement of Foreign Exchange Administration of Foreign Currency Exchange Agencies (Huifa No.48 [2007]), and shall provide the individual domestic and foreign currency exchange businesses high-quality and highly efficient services according to the major needs of foreign-related activities of the Beijing Olympic Games etc.

VI. All branches and foreign exchange management departments of the State Administration of Foreign Exchange shall forward this Circular to the urban commercial banks, rural commercial banks, rural cooperative banks, and foreign-funded banks within their respective jurisdictions as soon as possible after receiving the Circular, fulfill the various tasks required in this Circular, enhance  communication and coordination with the BOCOG, the airport, and the transportation, urban management, and other relevant departments, strengthen supervision and inspections of bank outlets and foreign currency exchange agencies that launch individual domestic and foreign currency exchange services, and formulate corresponding work schemes and emergency plans according to the needs of the domestic and foreign currency exchange services for major foreign-related activities of the Beijing Olympic Games etc. If any entity encounters any problems in its actual work, it should contact the State Administration of Foreign Exchange in a timely manner. (Tel:010-68402310 68402313; Fax: 010-68402315

June 13, 2008

 

 

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Notice of the Department of General Affairs of the State Administration of Foreign Exchange on Relevant issues Concerning Earthquake Relief Work

Date:2008-05-15

 

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all the provinces, autonomous regions, and municipalities directly under the Central Government, and the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: 
  On the afternoon of May 12, 2008, a powerful earthquake took place in Wenchuan county of Sichuan province and caused severe losses of life and property in the quake area.  In order to give full support to the earthquake relief work, this urgent circular on relevant matters states as follows:
  First, the various branches of the State Administration of Foreign Exchange should earnestly make the support of earthquake relief work their primary task at present, conscientiously implement the general requirements of the Party Central Committee and the State Council on earthquake relief work, closely rely on and cooperate with the local governments, and make every effort to do a good job in earthquake relief work in accordance with the unified deployment of the Party Committees of the local People's Banks. As the first people responsible for earthquake relief work, the principal directors in the various units should assume general responsibility for the earthquake relief work of their units in the areas under their jurisdiction and should implement a responsibility system for earthquake relief work at all levels.
Second, during the earthquake relief period, all branches should establish a "green channelto support the earthquake relief work and effectively do a good job in all foreign exchange services. Foreign exchange and foreign currency cash donations received by the Red Cross Society of China, the China Charity Federation, and other public welfare organizations approved by the civil affairs departments can be directly deposited or transferred to the earthquake relief donation accounts to ensure that the relevant foreign donations for disaster relief will be transferred promptly.
Third, all branches should pay close attention to the operations of the networks and the foreign exchange systems under their respective jurisdictions and strengthen monitoring to ensure the stable running of networks and foreign exchange systems and the normal development of various transactions.
Fourth, emergency duty and information reporting work should be further strengthened. During the earthquake relief period, the branches in the affected areas should honestly implement a 24-hour duty system to ensure that government orders are not impeded. Earthquake relief information should be submitted to the General Affairs Department of the Head Office (Duty Room) and the related departments on a unified basis.
Fifth, compassion donation activities shall be carried out extensively and actively to support the reconstruction of the affected areas. Each branch shall vigorously carry forward the spirit of When disaster strike, help comes from all sides," and call on and mobilize cadres and workers to actively donate to the people in the affected areas and to support the reconstruction work with practical actions.
It is hereby notified.

 

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Circular of the SAFE and the State Administration of Taxation on Issues Concerning the Trial Implementation of Tax Archive-filing Work for External Payments in the Services Trade

Date:2008-04-29

 

The SAFE branches in Tianjin, Shanghai, Jiangsu, Sichuan, Fujian, and Hunan provinces (and municipalities directly under the Central Government), and the SAT branches in the above provinces and municipalities, and their respective local taxation bureaus:

In order to promote the reform of foreign exchange management in the services trade, to improve Chinas international tax collection and management system, and to further boost the development of the services trade, the State Administration of Foreign Exchange (SAFE) and the State Administration of Taxation (SAT) have decided to launch pilot projects from April 1, 2008 in six regions, including Tianjin, Shanghai, Jiangsu, Sichuan, Fujian, and Hunan and to adopt management measures for advance tax archive-filing work for external payments in the services trade. The specific contents are hereby circulated as follows:

1. Any domestic institution registered in the pilot regions (hereinafter referred to as the domestic institution), which makes external payments in the services trade in excess of USD 50,000 (not including USD 50,000) with a designated foreign exchange bank (hereinafter referred to as the designated bank), shall handle the archive-filing work in advance with the copies of the relevant contracts at the state taxation authority, and shall complete and submit the Taxation Archive-filing Form for External Payments in the Services Trade for Domestic Institutions (hereinafter referred to as the Archive-filing Form, as detailed in the attachment).

Any domestic institution may be exempted from the archive-filing formalities if the external payments in the services trade are less than and including USD 50,000.

2. Once the responsible state taxation authority confirms the Archive-filing Form as correct according to the copies of the relevant contracts, it shall fill in on the scene the related contents in filled in by the state taxation authorities on the Archive-filing Form, produce the serial number of the Archive-filing Form, and affix the seals on the original and three copies of the Archive-filing Form. The state taxation authority shall return the original and one copy to the domestic institution and shall retain two copies.

3. When a domestic institution handles external payments in the service trade in excess of over USD 50,000 (excluding USD 50,000) at a bank, it shall present the original Archive-filing Form signed and sealed by the state taxation authority instead of the taxation documents according to the current regulations, and shall also submit other documents according to the current regulations. The bank shall sign and seal the original Archive-filing Form once the related formalities for external payments have been completed.

4. Any domestic institution that handles external payments in the services trade shall go through the formalities of tax declaration and payment with the state and relevant local taxation authorities within the stipulated time period, or shall provide an explanation of the taxation issues according to the national laws and regulations.

5. Where a single contract requires more than one external payment, the domestic institution shall go through the tax archive-filing formalities prior to each payment of foreign exchange, but the copy of the contract shall be submitted to the state taxation authorities only with the tax archive-filing for the first payment of foreign exchange.

6. The current provisions shall apply when domestic institutions registered within regions other than the pilot regions handle external payments in the services trade at designated foreign exchange banks within the pilot regions, and when domestic institutions registered within the pilot regions handle external payments in the services trade at designated foreign exchange banks within other than the pilot regions.

7. The system of archive-filing information exchange between the state and relevant local taxation organs shall thereafter comply with the related documentation as formulated by the State Administration of Taxation.

8. The local branches of SAFE and SAT as well as the local taxation bureaus within the pilot regions shall transmit the Circular to the administrative organs of foreign exchange and taxation at various levels and to banks at all levels within their jurisdiction, and shall properly carry out the dissemination and interpretation of the relevant policies.

9. The Circular shall be interpreted by SAFE and SAT. During the pilot period, the local branches of SAFE and SAT as well as the local taxation bureaus within the pilot regions shall report on the progress of the pilot on a monthly basis and on problems in the pilot projects without delay.
    

                                                                February 26, 2008


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Taxation Archive-filing Form for External Payments in the Services Trade for Domestic Institutions

 

 

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Reply of the State Administration of Foreign Exchange on the Pilot Program of Direct Investment in Overseas Securities Markets by Domestic Individuals

Date:2007-08-20

 

The State Administration of Foreign Exchange, Tianjin Branch:
Your request for instructions on the Pilot Program of Direct Investment in Overseas Securities Markets by Domestic Individuals (JinHuiFa No.87 [2007]) has been received. The official reply is hereby given as follows:
1. The State Administration of Foreign Exchange (SAFE) approves your application to launch a pilot program of direct investment in overseas securities markets in the Tianjin Binhai New Area by domestic individuals. Your branch should organize and carry out the pilot work in accordance with the requirements in your submitted Scheme to Launch a Pilot Program of Direct Investment in Overseas Securities Markets by Domestic Individuals.
2. Domestic individuals may invest in overseas securities markets with proprietary or purchased foreign exchange through relevant channels in the pilot area, and the scale of such foreign exchange purchases is not subject to the total annual quota for individual foreign exchange purchases stipulated in the Detailed Rules on Implementation of the Measures for the Administration of Individual Foreign Exchange.
3. The pilot program will play a significant role in carrying out the overall requirements for promoting a general equilibrium in the balance of payments, broadening fund outflow channels on an aorderly basis, and gradually implementing the opening-up of capital accounts. Your branch shall actively guide and coordinate the pilot work, standardize the business of direct investment in overseas securities markets by domestic individuals, and promote the smooth implementation of the pilot work. Meanwhile, your branch shall closely track and regularly report on the development of the pilot work, and shall submit problems encountered in implementation to the SAFE in a timely manner.

 


affix1:
Pilot Scheme for Direct Investment in Overseas Securities Markets by Domestic Individuals

 

 





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