In order to implement the gist of the 19th CPC National Congress, put into practice the proactive opening-up policy, facilitate the creation of new pattern of overall opening-up covering all dimensions, multiple levels and extensive field, and deepen the reform of “ delegation, regulation and service” on an ongoing basis, the State Administration of Foreign Exchange (SAFE) has recently decided to carry out the pilot program on foreign exchange receipts and payments facilitation for trade in goods in Guangdong-Hong Kong-Macao Greater Bay Area, Shanghai city and Zhejiang province, so as to support prudential and compliant banks to implement more convenient measures when handling trade receipts and payments for enterprises with good credit standing.
Major contents of the pilot program include four parts. The first is optimizing verification of foreign exchange receipt and payment documents for trade. The banks shall handle foreign exchange businesses for trade in goods in accordance with three principles of “knowing your customer”, “understanding your business” and "due diligence”. The second is that foreign exchange receipts from trade are not required to go through accounts pending verification. Foreign exchange receipts of pilot enterprises under authentic and legitimate trade in goods can be entered into foreign exchange settlement account under the current account or settled directly. The third is abolishing special re-exchange business registration formalities. Overdue re-exchange and re-exchange via routes other than the original one can be handled with a bank directly. The fourth is simplifying import declaration verification. If a bank can confirm that foreign exchange payment for trade is authentic and lawful, the electronic information verification formalities for import declaration can be waived.
The SAFE will further promote trade and investment liberalization and facilitation based on pilot results, so as to create sound business environment and promote the stable and healthy development of the economy.
