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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 branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, To further improve the capabilities of declaring the balance of payments statistics, and intensify trade credit investigation, the SAFE has integrated the existing regulatory requirements on trade credit into the Trade Credit Survey System (see the Appendix) in accordance with the Statistics Law of the People's Republic of China, the Regulations of the People's Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council), and the Measures for the Declaration of Balance of Payments Statistics (Decree No. 642 of the State Council). This System is now issued to you, along with the following notification: I. This System will come into force on August 1, 2016. The data for July 2016 shall be reported at first. II. Further details of this System, including the reporting methods of relevant data and the system requirements, will be notified separately. III. The Circular of the State Administration of Foreign Exchange on Printing and Distributing the Trade Credit Survey System and the Implementation Plan for Trade Credit Survey (Huifa No. 67 [2004]), the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Adjustments to the Sampling Survey Report for Trade Credit and the Use of the Trade Credit Sampling Survey System for Data Submission (Huizongfa No. 12 [2009]), the Circular of the Balance of Payments Department of the State Administration of Foreign Exchange on Conducting Trade Credit Surveys At End-June 2010 (Huiguofa No. 8 [2010]), the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Expanding the Scope of Regions for Trade Credit Survey and Increasing the Frequency of Survey (Huizongfa No. 28 [2011]) and the Circular of the Balance of Payments Department of the State Administration of Foreign Exchange on Start Using the New Version of Trade Credit Sampling Survey System (Huiguofa No. 17 [2012]) will be nullified simultaneously. IV. Upon receipt of this Circular, all branches and foreign exchange administrative departments of the SAFE shall forward it to the central sub-branches, sub-branches and reporting entities within their jurisdictions, and organize education and training for the reporting entities within their respective jurisdiction. Please report any problems encountered in the implementation to the SAFE in time. The contact number of the SAFE Balance of Payments Department is 010-68402377/ 010-68402489。 Appendix: Trade Credit Survey System State Administration of Foreign Exchange January 11, 2016 FILE: Trade Credit Survey System 2016-02-14/en/2016/0214/777.html
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General Office of the State Council Ministries and Commissions directly under the State Council Ministry of Foreign Affairs Ministry of National Defence National Development and Reform Commission Ministry of Education Ministry of Science and Technology Ministry of Industry and Information Technology State Ethnic Affairs Commission Ministry of Public Security Ministry of State Security * Ministry of Supervision Ministry of Civil Affairs Ministry of Justice Ministry of Finance Ministry of Personnel Ministry of Labor and Social Security Ministry of Land and Resources Ministry of Housing and Urban-Rural Development Ministry of Railways Ministry of Transport Ministry of Environment Protection Ministry of Water Resources Ministry of Agriculture Ministry of Agriculture Ministry of Culture Ministry of Health National Population and Family Planning Commission People's Bank of China Special Commission Directly under State Council State-owned Assets Supervision and Administration Commission State Administration For Industry and Commerce General Administration of Quality Supervision, Inspection and Quarantine State Environmental Protection Administration General Administration of Civil Aviation of China State Administration of Radio, Film and Television General Administration of Press and Publication General Administration of Sport General Administration of Sport State Forestry Administration State Food and Drug Administration State Administration of Work Safety Intellectual Property Office (SIPO) National Tourism Administration State Administration for Religious Affairs Counsellors' Office of the State Council Government Offices Administration of the State Council Offices under the State Council Overseas Chinese Affairs Office of the State Council Hong Kong and Macao Affairs Office of the State Council Legislative Affairs Office of the State Council Research Office of the State Council Institutions Directly under the State Council Xinhua News Agency Chinese Academy of Sciences Chinese Academy of Social Sciences Chinese Academy of Engineering Development Research Center of the State Council National School of Administration China Seismological Bureau Meteorological Administration China Banking Regulatory Commission (CBRC) China Securities Regulatory Commission (CSRC) China Insurance Regulatory Commission (CIRC) State Electricity Regulatory Commission National Council for Social Security National Natural Science Foundation State Bureaux Administrated by Ministries and Commissions Bureau for Letters and Calls State Grain Administration State Tobacco Monopoly Bureau Administration Bureau of Foreign Experts Affairs State Oceanic Administration Surveying and Mapping State Post Bureau State Cultural Relics Bureau Administration of Chinese Traditional Medicine National Natural Science Foundation 2017-12-11/en/2017/1211/1343.html
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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 2010-12-31/en/2010/1231/716.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities, and the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, as well as the designated Chinese-funded foreign exchange settlement banks, To strengthen foreign exchange administration for trade in services, to make trade and investment more convenient, and to boost foreign-related economic development, the SAFE has introduced the Guidelines on Foreign Exchange Administration for Trade in Services (Appendix I) and the Rules for Implementation of the Guidelines on Foreign Exchange Administration for Trade in Services (Appendix II), and has rescinded some documents (see Appendix III for a list). Kindly hereby be notified that these documents are circulated to you for execution: 1. The branches and foreign exchange administrative departments should actively promulgate and explain the regulations and publicize your consultation contact information. Banks should be well prepared for implementation of these documents and should make sure that these documents are implemented efficiently after they come into force. 2. Upon receipt of this circular, branches and foreign exchange administrative departments should immediately forward it to central sub-branches (sub-branches), local commercial banks, and foreign banks within their jurisdictions, and all designated Chinese-funded foreign exchange settlement banks should promptly forward it to their branches. 3. After coming into effect, where there is a discrepancy with previous regulations, this circular will prevail. For any questions regarding the execution of these documents, please contact the Current Account Management Department of the SAFE. Tel: 010-68402381 Appendix: I. Guidelines on Foreign Exchange Administration for Trade in Services II. Rules for Implementation of the Guidelines on Foreign Exchange Administration for Trade in Services III. Catalogue of Documents to be Rescinded State Administration of Foreign Exchange July 18, 2013 FILE: Guidelines on Foreign Exchange Administration for Trade in Services FILE: Rules for Implementation of the Guidelines on Foreign Exchange Administration for Trade in Services FILE: Catalogue of the Documents to be Repealed 2013-07-24/en/2013/0724/737.html
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Pursuant to the Regulations of the People’s Republic of China on Foreign Exchange Administration and the relevant regulations, the State Administration of Foreign Exchange has formulated the Regulations on Foreign Exchange Administration of Overseas Portfolio Investments by Qualified Domestic Institutional Investors, which are hereby promulgated and shall enter into effect as of the date of promulgation. Attachment: Regulations on Foreign Exchange Administration for Overseas Portfolio Investments by Qualified Domestic Institutional Investors State Administration of Foreign Exchange August 21, 2013 FILE: Regulations on Foreign Exchange Administration for Overseas Portfolio Investments by Qualified Domestic Institutional Investors 2013-08-27/en/2013/0827/739.html
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FILE: Directory of the Major Existing Laws аnd Regulations in Effect on Foreign Exchange Administration (as of July 31,2013) 2013-08-12/en/2013/0812/738.html
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The SAFE branches and foreign exchange administration departments in Tianjin, Liaoning, Jiangsu, Hubei, Guangdong, Sichuan, Beijing, Chongqing, Heilongjiang, Zhejiang, Fujian, Guangxi, and Guizhou province (autonomous regions and municipalities directly under the Central Government), and the SAFE branches in Shenzhen and Qingdao: For the purpose of further deepening the reform of the foreign exchange management system and better satisfying and facilitating the requirements for business and capital operations of foreign-invested enterprises (FIEs), the State Administration of Foreign Exchange (SAFE) has decided to implement a pilot reform on an management approach for the settlement of foreign exchange capital funds of FIEs in certain areas (Tianjin Binhai New Area, Shenyang Economic Zone, Suzhou Industrial Park, Donghu National Self-Innovation Demonstration Zone, Guangzhou Nansha New District, Hengqin New District, Chengdu High-Tech Industrial Development Zone, Zhongguancun National Self-Innovation Demonstration Zone, Liangjiang New Area, Heilongjiang Frontier Development Zone for the Foreign Exchange Pilot Reform, Wenzhou Pilot Region for Comprehensive Financial Reform, Pingtan Comprehensive Pilot Zone, China-Malaysia Qinzhou Industrial Park, Guiyang Comprehensive Bonded Zone, Shenzhen Qianhai Shenzhen-Hong Kong Modern Services Cooperation Zone, and Qingdao Pilot Zone for Comprehensive Reform on Wealth Management and Finance). The relevant issues are hereby notified as follows: I. Voluntary Settlement of Foreign Exchange Capital Funds of Foreign-invested Enterprises Voluntary settlement of foreign exchange capital funds of FIEs means that foreign exchange capital funds in the FIE capital fund accounts, recognized by the local foreign exchange bureau as the rights and interests of capital contributions, can be settled in banks according to their actual business operational requirements. The provisional percentage for the voluntary settlement of foreign exchange capital funds of FIEs incorporated in the pilot areas is 100 percent. The SAFE may adjust the aforesaid percentage in due time according to the international receipts and payments situation. During the course of implementing the voluntary settlement of foreign exchange capital funds, the FIEs can still choose the existing settlement procedures against payments for the use of foreign exchange capital funds. For each foreign exchange settlement transaction of enterprises, based on the principle of foreign exchange settlement against payments, the banks shall examine and verify the authenticity and compliance in the use of the funds for prior transactions of foreign exchange settlement (including voluntary settlement of foreign exchange and foreign exchange settlement against payments). Domestic remittances and transfers and cross-border outward payments of foreign exchange capital funds of FIEs shall be transacted pursuant to the relevant regulations on foreign exchange administration. II. Management of Bank Accounts for Foreign Exchange Funds Settled and to Be Paid with RMB Proceeds from the Voluntary Settlement of Foreign Exchange Capital Funds of FIEs The FIEs shall open accounts for capital items – foreign exchange funds settled and to be paid (“settlement and payment accounts”) for the deposits of RMB proceeds from the voluntary settlement of foreign exchange on a one-to-one corresponding basis, with their account banks for the foreign exchange capital funds and for transactions of various payments through these accounts. The RMB proceeds of FIEs from foreign exchange settlement against payments shall not be used for payments through the settlement and payment accounts. Receipts in the FIE capital fund accounts include: foreign exchange capital funds remitted from overseas or capital funds subscribed to and contributed by foreign investors (including contributions from non-resident deposit accounts, offshore accounts, and domestic foreign exchange accounts of foreign individuals); foreign exchange capital funds or capital funds subscribed to and contributed as transferred from the special accounts for security deposits of overseas remittances; funds returned after transfers, pursuant to the regulations; funds received from the capital funds account of the same name; funds returned due to revocation of the transactions; received interest income; and other receipts registered or approved by the foreign exchange bureau. The scope of the payments from the capital fund accounts includes: foreign exchange settlement within the business scope; transfers through the foreign exchange settlement into the settlement and payment accounts; domestic transfers in the same currency to the special accounts for security deposits of domestic transfers, capital fund accounts of the same name, accounts for entrusted loans, special accounts for concentrated funds management, special accounts for overseas lending, special accounts for domestic reinvestments, and special accounts for foreign debts; outward remittances owing to capital reductions or withdrawals by foreign investors; outward payments for current items; and other capital item expenditures registered or approved by the foreign exchange bureau. The scope of the receipts in the settlement and payment accounts includes: funds from foreign exchange settlement as transferred from the corresponding capital funds accounts, domestic accounts for the realization of assets, or accounts for domestic reinvestments; funds returned after transfer from these accounts, pursuant to the regulations; funds returned due to revocation of the transactions; received interest income; and other receipts registered or approved by the foreign exchange bureau. The scope of the payments from the settlement and payment accounts includes: expenditures within the business scope; payments of the RMB security deposit; transfers to the special account for centralized funds management; repayment of RMB loans after completed utilization; foreign exchange purchases and payments or direct outward repayments of foreign debts; foreign exchange purchases and payments or direct outward payments owing to capital reductions or withdrawals by foreign investors; foreign exchange purchases and payments or direct outward payments for current item expenditures; and other capital item expenditures registered or approved by the foreign exchange bureau. RMB funds in the settlement and payment accounts shall not be transferred back to the capital fund accounts through foreign exchange purchases without approval by the foreign exchange bureau. The funds shall not be transferred between the FIEs’ settlement and payment accounts of the same name. RMB funds transferred from the settlement and payment accounts for the purpose of guarantees or payments of other security deposits, unless in the case of execution of guarantee agreements or deductions owing to default, shall be returned to the settlement and payment accounts through the original route. III. Utilization of FIEs’ Capital Funds according to the Principles of Authenticity and Self-use within the Business Scope FIE capital funds and RMB funds from their settlement shall not be used for the following purposes: (I) directly or indirectly used for expenditures beyond the business scope or prohibited under the laws and regulations of the State; (II) directly or indirectly used for securities investments, unless otherwise stipulated under the laws and regulations; (III) directly or indirectly used for the supply of RMB entrusted loans (unless permitted by the business scope), repayments of inter-enterprise borrowings (including third-party advances), and repayments of RMB bank loans already refinanced to any third party; (IV) payment of expenses relevant to the purchase of real estate not for one’s own use, unless as a foreign-invested real estate enterprise. IV. Facilitation of Domestic Equity Investments by FIEs with Funds from Foreign Exchange Settlement Except for transfers in the original currency owing to equity investments, it is acceptable for FIEs with investment as their main business (including foreign-funded investment companies, foreign-funded venture capital enterprises, and foreign-funded equity investment enterprises) to transfer the foreign exchange capital funds after direct settlement into the accounts of the invested enterprises according to the actual scale of investment, provided that the domestic investment project is authentic and compliant with the regulations. Capital funds other than the aforesaid enterprise equity investment funds shall be handled according to the principles of settlement against payment. When ordinary FIEs other than the abovementioned enterprises invest in domestic equities with capital funds in the original currency, the existing regulations on domestic reinvestments shall prevail. When funds from foreign exchange settlement are used for domestic equity investments, the invested enterprise shall first register for a domestic reinvestment with the local foreign exchange bureau and open a corresponding settlement and payment account, prior to the transfer of the RNB funds from the foreign exchange settlement by the investing enterprise, according to the actual scale of investment, to the account opened by the invested enterprise. When the invested enterprise continues to invest in domestic equities, the aforesaid principles shall apply. V. Further Requirements regarding the Management of Payments with Funds from Foreign Exchange Settlement (I) Foreign investors, FIEs, and other applicant entities shall provide, on an accurate and authentic basis and according to the regulations, the relevant certifying documents regarding the authenticity to the foreign exchange bureau and the banks, and complete the Order of Payments with Funds in Accounts Related to Direct Investments (see the Appendix) when applying for payments with RMB funds from the settlement of capital funds (including direct payments with foreign exchange capital funds). (II) The banks shall, according to the principles of “understanding their customers,” “understanding their businesses,” and “due diligence reviews,” be responsible for verification of the authenticity of outward payments with capital funds and payments with RMB funds from the foreign exchange settlement by the FIEs. When handling each payment transaction with such funds, the authenticity and compliance of the certifying documents with respect to the prior payment transactions shall be examined and verified. The banks shall keep the certifying documents relevant to the settlement and use of the foreign exchange capital funds of the FIEs for five years for future reference. The banks shall report the data, including the accounts related to the capital fund accounts and the settlement and payment accounts (account nature code: 2113), cross-border receipts and payments, domestic transfers, foreign exchange settlement and sales within the accounts, on a timely basis and according to the Circular of the State Administration of Foreign Exchange on the Issuance of Foreign Exchange Transaction Data Collection Rules for Financial Institutions (Version 1.0) (Huifa No. 18, [2014]). In the case of transfers of funds between the settlement and payment accounts and other RMB accounts, the information on the domestic transfers shall be reported by filling in the documents for domestic payments and receipts and indicating the fund purpose code under the “invoice number” column (according to “7.10: Code of Purpose for Foreign Exchange Settlement” in the Circular of Huifa No. 18 [2014]) ; the transaction code for other transfers shall be indicated as “929070,” except for payments under verification of goods trade. (III) When enterprises fail to provide certifying documents for current special reasons, the banks may make the relevant payments for the enterprises, provided that the obligation of due diligence review has been performed and the authentic background of the transactions has been verified, and may file with the foreign exchange bureau through its relevant business system with respect to the special items on the date of payment. The banks shall collect and examine the full set of relevant certifying documents resubmitted by the enterprises within 20 working days upon completion of the payment and report to the foreign exchange bureau with respect to the resubmission of the certifying documents on the authenticity of the filing of special items. When FIEs use capital funds for the purpose of reserve funds, the banks need not require submission of the aforesaid certifying documents regarding authenticity. The cumulative amount of payments for reserve funds by a single enterprise in one month shall not exceed the value equivalent to RMB 600,000. When FIEs apply for settlement against payments with all the foreign exchange capital funds on a one-off basis, or payments with all the RMB funds for the settlement and payment account, but fail to provide the relevant certifying documents on the authenticity, the banks shall not handle for them the foreign exchange settlement and payments . VI. Management of the Settlement and Utilization of Funds in the Foreign Exchange Accounts under Other Direct Investment Items Settlement of foreign exchange funds in domestic accounts for the realization of assets and domestic reinvestments of domestic institutions shall be made with reference to the administrative regulations regarding the FIE capital fund accounts. Settlement of foreign exchange funds in the domestic accounts for the realization of assets and domestic reinvestments by domestic individuals and overseas accounts for the realization of assets of domestic institutions and individuals shall be made directly through the banks, against the relevant transaction documents registered with the foreign exchange bureau. Settlement of foreign exchange funds in the foreign investors’ accounts for preliminary expenses shall be made according to the principles of settlement against payments. Foreign exchange funds in the special accounts for overseas and domestic security deposits shall not be used through the foreign exchange settlement. In cases of execution of guarantee agreements or deductions owing to default, the relevant security deposits shall be transferred into the other foreign exchange accounts for capital items of the recipients of the deposits that have been approved or registered by the foreign exchange bureau, and shall be used according to the relevant regulations. The interest income and investment income under direct investments in the above accounts can be settled and paid directly through the banks according to the relevant regulations on foreign exchange administration of current items. VII. Further Strengthening Post-mortem Supervision and Investigations of Irregularities by the Foreign Exchange Bureau (I) The foreign exchange bureau shall strengthen guidance and examination of the compliance of bank transactions, including foreign exchange settlement and utilization of FIE capital funds in accordance with the Regulations on the Control of Foreign Exchange of the People's Republic of China and the Regulations on Foreign Exchange Administration of Domestic Direct Investments by Foreign Investors. The manner of examination includes submission of written explanatory and transaction documents by the relevant entities as requested, an interview with the persons in charge, field inspections or duplication of the relevant documents of the entities, and notification of any irregularities. With respect to banks with serious or malicious irregularities, their foreign exchange transactions under capital items shall be suspended according to the relevant procedures. With respect to FIEs with serious or malicious irregularities, their qualifications for voluntary settlement of foreign exchange shall be revoked. Prior to the submission of the written explanatory documents and proper rectification, any other foreign exchange transactions under the capital items shall be prohibited. (II) For FIEs and banks with violations against this Circular with respect to foreign exchange settlement and utilization of FIE capital funds, the foreign exchange bureau shall investigate and treat them according to the relevant provisions of the Regulations on the Control of Foreign Exchange of the People's Republic of China. VIII. Other Relevant Issues This Circular shall take effect as of August 4, 2014. In cases of any discrepancies with prior regulations, this Circular shall prevail. The relevant requirements in the Circular of the State Administration of Foreign Exchange on Operational Issues Concerning Foreign Exchange Payment and Settlement of FIE Capital Funds (Huizongfa No. 142 [2008]) and the Supplementary Circular of the General Affairs Department of the State Administration of Foreign Exchange on Operational Issues Concerning Improvements in the Management of Foreign Exchange Payments and Settlement of FIE Capital Funds (Huizongfa No. 88 [2011]) are provisionally not applicable to the foreign exchange settlement of the capital funds of the FIEs in the pilot districts. The sub-bureaus in the pilot districts and the foreign exchange administrative departments are requested to distribute this Circular to the central sub-bureaus, branch bureaus, and banks within the pilot districts as soon as possible. In cases of any problems arising during the course of implementation, feedback shall be provided to the Capital Account Management Department of the SAFE on a timely basis. Appendix: Order of Payments with Funds in Accounts Related to Direct Investments State Administration of Foreign Exchange July 4, 2014 FILE: Order of Payments with Funds in Accounts Related to Direct Investments 2014-09-22/en/2014/0922/746.html
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Provincial, Autonomous Region, and Municipal Branches, Foreign Exchange Departments, Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo Branches of the SAFE, and designated China-funded foreign exchange banks: To deepen the reform of the foreign exchange administration system, streamline administrative approval procedures, and regulate receipt and payment activities under cross-border guarantees, the State Administration of Foreign Exchange (SAFE) has decided to improve the methods of foreign exchange administration for cross-border guarantees and has developed the Provisions on Foreign Exchange Administration for Cross-border Guarantees and its operational guidelines (hereinafter referred to as “these Provisions”). These Provisions are now issued to you for implementation. These Provisions will come into force as of June 1, 2014. If there is any inconsistency between previously issued regulations and these Provisions, these Provisions will prevail. When these Provisions become effective, the regulations as listed in Annex 3 will be repealed. Upon receipt of these Provisions, the SAFE branches and Foreign Exchange Departments should promptly forward them to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, foreign banks, and rural credit cooperatives under their respective jurisdictions, and the China-funded banks should promptly forward them to the branches under their jurisdictions. Please contact the Capital Account Administration Department of the SAFE immediately should any problems be encountered in terms of their implementation. Annex: 1. Provisions on Foreign Exchange Administration for Cross-border Guarantees 2. Operational Guidelines for Foreign Exchange Administration for Cross-border Guarantees 3. Catalogue of the Repealed Regulations The State Administration of Foreign Exchange May 12, 2014 FILE: Provisions on Foreign Exchange Administration for Cross-border Guarantees FILE: Operational Guidelines for Foreign Exchange Administration of Cross-border Guarantees FILE: Catalogue of the Repealed Regulations 2014-08-22/en/2014/0822/745.html
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Provincial, autonomous region, and municipal branches and Foreign Exchange Administration departments of the SAFE, and the Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo branches of the SAFE: To satisfy the requirements of MNCs to uniformly use foreign exchange funds both in China and in other countries, to serve the real economy, to promote trade and investment facilitation, to support industrial restructuring and upgrading, and to explore exchange facilitation for investment and financing, the State Administration of Foreign Exchange (SAFE) has developed the Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs (Interim) and is now issuing them to you for implementation. Appendix: Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs (Interim) State Administration of Foreign Exchange April 18, 2014 FILE: Regulations on the Centralized Operations and Management of the Foreign Exchange Funds of MNCs (Interim) FILE: Appendix 1-5 2014-10-21/en/2014/1021/747.html
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Tianjin Branch, Shanghai Branch, and Beijing Foreign ExchangeAdministrative Department of the State Administration of Foreign Exchange: The Application for Approving TransForex (Tianjin) Currency Exchange Co., Ltd to Engage in Cross-border Transport of Foreign Currency Banknotes (Jinhuifa No. 128 [2014]),the Application of Shanghai Branch of the State Administration of Foreign Exchange for Approving Travelex Currency Exchange (China) Co., Ltd to Engage in Cross-border Transport and Wholesale of Foreign Currency Banknotes (Shanghai Huifa No. 138 [2014]), and the Application of Beijing Foreign Exchange Administrative Department of the State Administration of Foreign Exchange for Approving Beijing United Money Exchange Co., Ltd to Engage in Cross-border Transport of Foreign Currency Banknotes (Jinghui No. 162 [2014])have been received, and the Reply is hereby highlighted as follows： I. Approving TransForex (Tianjin) Currency Exchange Co., Ltd, Travelex Currency Exchange (China) Co., Ltd and Beijing United Money Exchange Co., Ltd (“Three Franchised Institutions”) to engage in transport of foreign currency banknotes into or out of the territory and foreign currency wholesale business (“banknote transport and wholesalebusiness”). II. The scope of the banknote transport and wholesale business includes: (I) determining the currency for transport in their sole discretion while taking into full consideration the market demand. (II) choosing in their sole discretion the partners (limited to banks, other franchised institutions, or retail business departments of the Three Franchised Institutions) for the sales and purchases of foreign currency banknotesacross the country. Thesales and purchases of foreign currency banknotes with banks shall be cleared in foreign exchange. III. In principle, the banknote transport and wholesale businesscan be carried out by the head offices of the Three Franchised Institutions only; if any branch is needed to engage in banknote transport, strict authorization and enhanced administration are required. For the requirements on the administration of banknote transport, please refer to the Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes into or out of the Territory of the PRC (Huifa No. 24 [2014]). IV. The Three Franchised Institutions shall manage the operating and accounting of the banknote transport and wholesale business and the retail business separately, and handle the clearing through special accounts for the banknote transport and wholesale business of a franchised institution. (I) The special accounts for the banknote transport and wholesale business of a franchised institution include special RMB and foreign exchange accounts, which can be used for the clearingfor the banknote transport and wholesale businessonly, and shall not be used for any other business purpose. (II) The Three Franchised Institutions may open with a bank or designate an RMB account as thespecial RMB account, which can only be used for the clearing of funds for the businesses with other franchised institutions, and the retail business departments of the Three Franchised Institutions; the funds in the special RMB account can be transferred to a special foreign exchange account based on the business requirements; and profits can also be transferred out. (III) To open a special foreign exchange account, the Three Franchised Institutions should first obtain the approval from your branches or foreign exchange administrative departments, with thelimits verified by your branches or foreign exchange administrative departments. Where more than one special foreign exchange account is opened, limits shall be verified respectively; funds in the special foreign exchange accounts can be transferred without limitation; any change to the limit should be approvedby your branches or foreign exchange administrative departments. (IV) The special foreign exchange account can be used only for the clearing of funds for businesses with domestic banks, other franchised institutions, the retail business departments of the Three Franchised Institutions, and overseas cooperative institutions; and the funds in the special foreign exchange account can be converted into other foreign currencies without limitation. (V) The Three Franchised Institutions may remit foreign exchange into their respective special foreign exchange account as theworkingcapital, or deposit foreign exchange purchased with RMB from the banks with which their special foreign exchange accounts are opened. The surplus working capital which is remitted with foreign exchange can be transferred out via theoriginal route; the foreign exchange purchased with RMB and deposited can be first settled into RMB funds with the original bank where the funds have been purchased, then the RMB funds can be transferred out. (VI)The scope of utilization of a special foreign exchange accountincludes: Receipts: working capital remitted inward or deposited through foreign exchange purchases, deposit of foreign exchange purchased using the funds in aspecialRMB account, proceeds from sales of foreign currency banknotes, interests received, funds transferred fromother special foreign exchange accounts, and other receipts approved by foreign exchange authorities. Payments: excessive working capital remitted outward or transferred through foreign exchange settlement, payment for purchase of foreign currency banknotes, payment for foreign exchange settlement of profits, payment for account fees, funds transferred to other foreign exchange special accounts, and other payments approved by foreign exchange authorities. V. Your branches orforeign exchange administrative departments shall request the Three Franchised Institutions to regularly report the business they carry out, including but not limited to: overseas and domestic partners, opening and utilization of the special accounts for the banknote transport and wholesale business of a franchised institution, and business size. Meanwhile, supervision and guidance on the businesses carried out by the Three Franchised Institutions shall be strengthened through off-site and on-site verification. VI. Your branches or foreign exchange administrative departmentsshall request the Three Franchised Institutions tocomply with domestic laws and regulations against money laundering and terrorism financing as they build business relationships or do business with their domestic and overseas partners, implement the relevant anti-money laundering and counter-terrorism financing system set out in the application documents, and perform the obligations of reporting anti-money laundering information in accordance with the requirements from the anti-money laundering departments of the local branches of the People’s Bank of China. VII. Your branches or foreign exchange administrative departments shall disqualify the Three Franchised Institutions for carrying out the business if the following circumstances are found in the Institutions: (I) Failure to effectively carry out the business after being approved or to provide sound foreign currency banknote wholesale services to market players and conduct immediate rectification(including minor currencies and minor denomination foreign exchange banknotes). (II) Engaging in money laundering in the name of banknote transport and wholesale and other activities inviolationofnational laws and regulations. VIII. Article 45 of the Measures for Administration of the Pilot Program of Franchised Domestic and Foreign Currency Exchange Business for Individuals (Huifa No. 27 [2012]) is not applicable to the purchase of foreign currency banknotes by domestic franchised institutions engaging in domestic and foreign currency exchange for individualsusing RMB or foreign exchangefrom the Three Franchised Institutions; but the settlement shall be made using RMB or foreign currency reserve funds. Upon receipt of this Reply, each foreign exchange branch and administrative department shall immediatelyforwardit to the franchised institutions engaging in domestic and foreign currency exchange for individuals within their respective jurisdiction. State Administration of Foreign Exchange May 26 2015 2015-07-01/en/2015/0701/764.html