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    SAFE to Optimize Foreign Exchange Policies for New Forms of Trade to Boost High-quality Trade Development
SAFE to Optimize Foreign Exchange Policies for New Forms of Trade to Boost High-quality Trade Development

To better support the development of new forms of trade, improve quality and efficiency in foreign trade, ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment, and expectations, and maintain security in job, basic living needs, operations of market entities, food and energy security, stable industrial and supply chains, and the normal functioning of primary-level governments (known as “six priorities”), the State Administration of Foreign Exchange has recently published the Circular of the State Administration of Foreign Exchange on Supporting the Development of New Forms of Trade (SAFE Document No. 11 〔2020〕) ("Circular") to facilitate relevant foreign exchange business handling.

The Circular is outlined as follows: first, expanding settlement channels for new forms of trade. Eligible banks will be supported to handle foreign exchange businesses based on electronic transaction information. Second, facilitating the settlement for exports by cross-border ecommerce players. Cross-border ecommerce players can conduct netting settlement between expenses on overseas warehousing, logistics and taxes and export proceeds. Third, optimizing cross-border advance payment for relevant taxes and fees for cross-border ecommerce players. Enterprises will be allowed to pay relevant warehousing and logistics charges, taxes and fees for their overseas customers in advance. Fourth, meeting individuals' needs for foreign exchange settlement under foreign trade. Individuals will be allowed to handle foreign exchange settlement under cross-border ecommerce and market procurement trade through the foreign exchange account. Fifth, improving settlement for market procurement trade. For market players filed with a market procurement trade platform, banks can handle foreign exchange receipts and settlement with customs declaration entrusted to a third party by the market player, based on the information available on the platform. Sixth, supporting comprehensive foreign trade service providers to handle foreign exchange receipts from exports on a commission basis. Any technically eligible comprehensive foreign trade service provider can handle for its customers foreign exchange receipts from exports on a commission basis, via a bank that is capable of verifying the electronic transaction information. Seventh, facilitating remote handling of foreign exchange businesses by enterprises. Enterprises will be given direct access to the SAFE system to handle more foreign exchange businesses online. Eighth, optimizing declarations of foreign-related receipts and payments for micro-transactions. Enterprises will be enabled to make summary declarations of small-amount foreign-related receipts and payments in their names to meet their requirements for declaration for export tax refunding and financing. Ninth, tracking innovative development in new forms of trade continuously. Following the requirements of "serving the real economy, facilitating opening up, tracking transactions and keeping risks under control", the SAFE will actively respond to new demand of market players for foreign exchange businesses. In addition, the SAFE will intensify mid- and post-transaction regulations and guide banks and payment institutions to improve internal control and strengthen risk prevention and control.
The Circular will become effective from the date of issuance.

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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State Administration of Foreign Exchange