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Rules and Regulations
  • Index number:
    000014453-2011-01132
  • Dispatch date:
    2011-09-15
  • Publish organization:
    State Administration of Foreign Exchange
  • Exchange Reference number:
    Announcement No.2 [2011] of the SAFE
  • Name:
    Announcement of the SAFE, the State Administration of Taxation, and the General Administration of Customs on the Pilot Reform of the Foreign Exchange Administration System for Trade in Goods
Announcement of the SAFE, the State Administration of Taxation, and the General Administration of Customs on the Pilot Reform of the Foreign Exchange Administration System for Trade in Goods

In order to further promote the facilitation of trade and strengthen foreign exchange administration for trade in goods, the State Administration of Foreign Exchange, the State Administration of Taxation, and the General Administration of Customs have decided to reform the foreign exchange administration system for trade in goods and to optimize and upgrade the information-sharing mechanism for foreign exchange receipts from exports and export rebates. Entering into effect as of December 1, 2011, the pilot reform will take place in Jiangsu , Shandong , Hubei , Zhejiang (excluding Ningbo ), Fujian (excluding Xiamen ), Dalian , and Qingdao . An announcement is hereby made as follows:

 

I. Reform of the foreign exchange administration mode for trade in goods

 

During the pilot period, the Guidelines for the Pilot Implementation of the Foreign Exchange Administration for Trade in Goods and the Detailed Rules on Implementation of the Guidelines for the Pilot Implementation of the Foreign Exchange Administration for Trade in Goods enacted by the State Administration of Foreign Exchange (see the Annex, hereinafter referred to as the “Pilot Regulations”) shall be implemented for trial and the enterprises in the pilot regions will not be required to undergo procedures for the verification and writing-off of foreign exchange collections from exports.

 

The foreign exchange authorities in the pilot regions shall change their foreign exchange administration mode for trade, from on-site verification and writing-off on a case-by-case basis to off-site aggregate verification, and through the Foreign Exchange Monitoring System for Trade in Goods they shall collect comprehensive enterprise data with respect to the imports and exports of goods and foreign exchange receipts and payments from trade on a case-by-case basis, shall regularly compare and assess the overall match between the flows of goods and the flows of capital and shall facilitate enterprise compliance with foreign exchange receipts and payments from trade; and shall carry out focal monitoring and where necessary on-site verifications of enterprises with unusual circumstances.

 

II. Dynamic classified management of enterprises in the pilot regions

 

The foreign exchange authorities in the pilot regions shall classify Category A, B, and C enterprises based on their foreign exchange receipts and payments from trade compliance, with the provisions on foreign exchange administration. The documents required for foreign exchange payments for imports by Category A enterprises shall be simplified, and the foreign exchange payments may be directly handled by the banks upon the strength of the import customs declarations, contracts, invoices, or any other documents that prove the authenticity of the transactions; and foreign exchange collections from exports will not be subject to online inspections; and the banks’ examination procedures with respect to receipts and payments of foreign exchange shall be simplified accordingly. Strict supervision shall be applied to Category B and Category C enterprises with respect to document examination for foreign exchange receipts and payments from trade, business types, and modes of settlement. Foreign exchange receipts and payments from trade of Category B enterprises shall be subject to electronic data verification by the banks, and foreign exchange receipts and payments from trade of Category C enterprises shall be subject to prior registration with the foreign exchange authorities on a case-by-case basis.

 

The foreign exchange authorities in the pilot regions shall dynamically adjust the results of the classification based on the enterprises’ compliance with the Pilot Regulations during the period of validity of the classified management. Where Category A enterprises violate the regulations on foreign exchange administration, they shall be downgraded to Category B or Category C enterprises; where Category B or Category C enterprises have been in compliance with the regulations on foreign exchange administration during the period of validity of classified management, they may be upgraded to Category A enterprises after expiry of the period of validity of the classified management.

 

III. Simplification of export-rebate vouchers

 

During the pilot period, where the export enterprises in the pilot regions apply for export rebates, they are not required to provide a paper Export Verification Form for Foreign Exchange Collection. The tax authorities shall, in accordance with the relevant provisions, examine the enterprises’ export rebates with reference to the information provided by the foreign exchange authorities on the foreign exchange receipts from exports and the classification of the enterprises.

 

IV. Adjustment of customs declaration procedures for exports

 

During the pilot period, where export enterprises in the pilot regions make customs declarations for exports, they shall still provide an Export Verification Form for Foreign Exchange Collections in accordance with the provisions in force. Upon nationwide acceptance of the reform of the foreign exchange administration system for trade in goods, the General Administration of Customs and the State Administration of Foreign Exchange will adjust the export customs declarations procedures and shall cancel the Export Verification Form for Foreign Exchange Collections.

 

V. Reinforcement of joint supervision by the authorities

 

The enterprises in the pilot regions shall strictly comply with the relevant provisions, enhance their awareness of honesty, strengthen their self-regulation, and conscientiously operate according to the law. The State Administration of Foreign Exchange, the State Administration of Taxation, and the General Administration of Customs will further strengthen their cooperation and realize data-sharing; improve the coordination mechanism and form a regulatory synergy; and rigorously crack down on irregular cross-border capital flows and on activities such as tax fraud and smuggling in violation of the relevant laws.

 

The specific issues related to foreign exchange administration, export rebates, and export customs declarations involved in this Announcement shall be governed separately by the provisions enacted by the relevant authorities. During the pilot period, where other regulations conflict with this Announcement, the latter shall prevail in the pilot regions.

 

                                                                                                                                                     September 9, 2011





FILE: Guidelines for the Pilot Implementation of Foreign Exchange Administration of Trade in Goods.eng
FILE: Detailed Rules on Implementation of the Guidelines for the Pilot Implementation of Foreign Exchange Administration of Trade in Goods.eng

The English translation may only be used as a reference. In case a different interpretation of the translated information contained in this website arises, the original Chinese shall prevail.

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