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The Decision of the State Council on the Revision of the Measures for the Collection of Statistics and Declaration of the Balance of Payments is hereby promulgated and shall be implemented as of January 1, 2014. Premier Li Keqiang November 9, 2013 Decision of the State Council on the Revision of the Measures for the Collection of Statistics and Declaration of the Balance of Payments The State Council has decided to revise the Measures for the Collection of Statistics and Declaration of the Balance of Payments (the Measures) as follows: I. Article 2 is revised as “All economic transactions between Chinese residents and non-Chinese residents and external financial assets and liabilities of Chinese residents shall be subject to the statistics and the declaration of the balance of payments.” II. Article 7 is revised as “Chinese residents and non-Chinese residents carrying out economic transactions within the territory of China shall declare the information on the balance of payments in compliance with the relevant regulations in a timely, accurate, and complete manner.” III. Articles 9 and 10 are combined into Article 9: “Institutions within the territory of China that provide services such as registration, settlement, and trusteeship, and dealers engaging in external transactions of securities, futures, and options on a self-run basis or on behalf of their clients shall declare to the State Administration of Foreign Exchange or its branches/sub-branches information about the external transactions, receipts, payments, and dividend payouts.” IV. Article 11 is revised as Article 10 which reads “Financial institutions within the territory of China shall declare their self-run external business directly to the State Administration of Foreign Exchange or its branches/sub-branches (including their external financial assets, liabilities, and their variations, profits and receipts and payments of interest, receipts and payments of external financial services, and other receipts and payments), and shall fulfill the obligations in their role as an intermediary through which Chinese and non-Chinese residents declare their statistics and the balance of payments to the relevant authorities.” V. Article 13 is revised as Article 12, which reads “Foreign-funded enterprises within the territory of China, enterprises with direct investments outside the territory of China, and other non-financial institutions with external financial assets and liabilities must declare directly to the State Administration of Foreign Exchange or its branches/sub-branches information regarding their external financial assets, liabilities, and their variations, and profits and receipts and payments of dividends and interest.” VI. An article is added as Article 13 which reads “Individual Chinese residents who have external financial assets and liabilities shall declare the relevant information about their external financial assets and liabilities in accordance with the relevant regulations of the State Administration of Foreign Exchange.” VII. Article 15 is revised as “The State Administration of Foreign Exchange or its branches/sub-branches has the right to check and verify the information declared by Chinese and non-Chinese residents; those making the declarations and the relevant institutions or individuals shall provide the relevant materials and shall make arrangements for the inspections and verifications. VIII. A paragraph is added to Article 16 as paragraph 2 which reads “Banks, dealers, and institutions that provide services such as registration, settlement, and trusteeship shall keep strictly confidential the specific declared data about which they have knowledge during the handling of the relevant business.” IX. Article 17 and 18 are combined into Article 17, which reads “Chinese and non-Chinese residents who fail to provide the statistics and declaration of the balance of payments in accordance with the relevant regulations shall be penalized by the State Administration of Foreign Exchange or its branches/sub-branches in accordance with Article 48 of the Regulations on Foreign Exchange Administration of the People’s Republic of China.” X. Article 19 is revised as Article 18, which reads “Statisticians who violate Article 16 of the Measures shall be penalized in accordance with the law. Banks, dealers, and institutions that provide services such as registration, settlement, and trusteeship that violate Article 16 of the Measures shall be investigated according to the law by the State Administration of Foreign Exchange or its branches/sub-branches regarding their legal responsibilities.” The Decision also made some adjustments and revisions to the sequence of the paragraphs and to the specific text of the Measures. The Decision will be implemented as of January 1, 2014. The Measures for the Collection of Statistics and Declaration of the Balance of Payments are revised and promulgated according to this Decision. Measures on the Collection of Statistics and Declaration of the Balance of Payments (Approved by the State Council on August 30, 1995, promulgated by the People’s Bank of China on September 14, 1995 and revised on November 9, 2013 according to the Decision of the State Council on the Revision of the Measures for the Collection of Statistics and Declaration of the Balance of Payments) Article 1 In order to improve the statistics on the balance of payments, these Measures are formulated in accordance with the Statistical Law of the People’s Republic of China. Article 2 All economic transactions between Chinese and non-Chinese residents and external financial assets and liabilities of Chinese residents shall be subject to the collection of statistics and declaration of the balance of payments. Article 3 “Chinese residents” as referred to in the Measures refer to: 1. Natural persons who have stayed in China for more than one year, with the exception of foreign and Hong Kong, Macao, and Taiwan students in the territory, medical personnel, and foreign workers in foreign embassies and consulates and their families. 2. Chinese personnel going abroad for a short period of time (who remain in foreign countries/regions for less than a year), personnel studying in foreign countries and regions, personnel seeking medical advice in foreign countries and regions, and personnel in Chinese embassies and consulates in foreign countries and regions and their family members; 3. Business entities and public institutions established in accordance with law within the territory of China (including foreign-funded enterprises and foreign financial institutions) and agencies of overseas corporations in China (excluding agencies of international organizations in China and foreign embassies and consulates in China); 4. Chinese state organs (including Chinese embassies and consulates), groups, and troops. Article 4 The Measures are applicable to all regions within the territory of China, including bonded areas and bonded warehouses within the territory of China. Article 5 The State Administration of Foreign Exchange is responsible for organizing and implementing the statistics and the declaration of the balance of payments and carrying out supervision and verification in compliance with the procedures as stipulated in the Statistical Law of the People’s Republic of China; collecting, calculating, and disclosing the information on the balance of payments and international investments; formulating and revising the detailed rules of the Measures; and compiling and issuing the declaration forms and the statistical statement on the balance of payments. The relevant government departments shall assist with the statistics and the declaration of the balance of payments. Article 6 The statistics and the declaration of the balance of payments shall follow the principle that the declaration is made by the transactional entity, with a combination of indirect and direct declarations and deal-by-deal declarations as well as regular declarations that are adopted for the statistics and the declaration. Article 7 Chinese residents and non-Chinese residents carrying out economic transactions within the territory of China shall declare the information on the balance of payments in compliance with the relevant regulations in a timely, accurate, and complete manner. Article 8 Chinese residents who carry out transactions with non-Chinese residents through domestic financial institutions shall declare the content of the transactions through the financial institutions to the State Administration of Foreign Exchange or its branches/sub-branches. Article 9 Institutions within the territory of China that provide services such as registration, settlement, and trusteeship and dealers engaging in external transactions of securities, futures, and options on a self-run basis or on behalf of their clients shall declare to the State Administration of Foreign Exchange or its branches/sub-branches information about the external transactions, receipts, payments, and dividend payouts. Article 10 Financial institutions within the territory of China shall declare their self-run external business directly to the State Administration of Foreign Exchange or its branches/sub-branches (including their external financial assets, liabilities, and their variations, profits and receipts and payments of interest, receipts and payments of external financial services and other receipts and payments), and shall fulfill the obligations in their role as an intermediary through which Chinese and non-Chinese residents declare their statistics and the balance of payments to the relevant authorities. Article 11 Chinese non-financial institutions that open accounts in China shall declare directly to the State Administration of Foreign Exchange or its branches/sub-branches any transactions conducted with non-Chinese residents through overseas accounts and the balance in their accounts. Article 12 Foreign-funded enterprises within the territory of China, enterprises with direct investments outside the territory of China, and other non-financial institutions with external financial assets and liabilities must declare directly to the State Administration of Foreign Exchange or its branches/sub-branches the information about their external financial assets, liabilities, and their variations, and profits and receipts and payments of dividends and interest. Article 13 Individuals who are Chinese residents and who have external financial assets and liabilities shall declare the relevant information about their external financial assets and liabilities in accordance with the relevant regulations of the State Administration of Foreign Exchange. Article 14 The State Administration of Foreign Exchange or its branches/sub-branches can conduct sample surveys or general surveys on the balance of payments. Article 15 The State Administration of Foreign Exchange or its branches/sub-branches has the right to check and verify the information declared by Chinese and non-Chinese residents; those making the declarations and the relevant institutions and individuals shall provide the relevant materials and facilitate the inspections and verifications. Article 16 The State Administration of Foreign Exchange or its branches/sub-branches shall keep strictly confidential the specific data that is declared and which is only to be used for the statistics on the balance of payments. Unless otherwise provided for by the law, the statisticians for the balance of payments shall not provide the specific declared data in any form to any institutions and individuals. Banks, dealers, and institutions that provide services such as registration, settlement, and trusteeship shall keep strictly confidential the specific declared data about which they have knowledge during the handling of the relevant business. Article 17 Chinese and non-Chinese residents who fail to carry out the collection of the statistics and the declaration of the balance of payments in accordance with the relevant regulations shall be penalized by the State Administration of Foreign Exchange or its branches/sub-branches in accordance with Article 48 of the Regulations on Foreign Exchange Administration of the People’s Republic of China.” Article 18 Statisticians who violate Article 16 of the Measures shall be penalized in accordance with the law. Banks, dealers, and institutions that provide services such as registration, settlement, and trusteeship that violate Article 16 of the Measures shall be investigated by the State Administration of Foreign Exchange or its branches/sub-branches regarding their legal responsibilities according to the law. Article 19 The State Administration of Foreign Exchange will formulate the Detailed Rules for Implementation of the Measures for the Collection of Statistics and the Declaration of the Balance of Payments. Article 20 The Measures shall enter into effect as of January 1, 1996. 2013-11-22/en/2013/1122/740.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in provinces, autonomous regions, and municipalities directly under the central government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all the designated Chinese-funded foreign exchange banks, To further deepen the reform of foreign exchange administration for capital account, boost and facilitate the operations of cross-border investment funds by enterprises, standardize foreign exchangeadministration for direct investment and enhance administration efficiency, the SAFE decides to further simplify and improve the policies for foreign exchange administration for direct investment across the country, based on the experience from the preliminary pilot program conducted in some regions. Relevant issues are notified as follows: I. Canceling two administrative approval items, namely, registration and verificationof foreign exchange under domestic and overseas direct investment Banks shall, in accordance with this Circular and the Operating Guidelines for Foreign Exchange Transactions for Direct Investment (see the Appendix), directly verify and handle the registration of foreign exchange under domestic and overseas direct investment (collectively referred to as registration of foreign exchange for direct investment) , while the SAFE and its branches (collectively referred to as the foreign exchange authorities) shall conduct through banksindirect regulation over registration of foreign exchange for direct investment. (I) During the implementation of this Circular, the banks thathave obtained the financial institution identification code from the foreign exchange authorities and activated their capital account information system at theirlocal foreign exchange authorities can handle the registration of foreign exchange for direct investment directly through the capital account information system of the SAFE for domestic foreign-invested enterprises, and the domestic investment entities of overseas investment enterprises (hereinafter referred to as the relevant market entities). (II) Banks and their branches shall handle registration of foreign exchange for direct investment under the guidance of their local foreign exchange authorities, and perform the responsibilities ofverifying, statistical monitoring and reporting within their power. (III) A relevant market entity can choose a bank at the place of its incorporation for registration of foreign exchange for direct investment. After the registration, the entity is allowed to open accounts, and remit funds (including outward or inward remittance of profits or dividends), which are related to direct investment. II. Simplifyingprocedures for some transactions of foreign exchange for direct investment (I)Simplifyingregistrationmanagement for confirmation of capital contribution by a foreign investor under domestic direct investment. The registration for confirmationof non-monetary capital contribution by a foreign investorunder domestic direct investment and registration for confirmation of capital contribution by a foreign investor for acquisition of a Chinese shareholder's equity are cancelled. The registration for confirmation of monetary contribution by a foreign investor is replaced with registration for accounting entry of monetary contribution for domestic direct investment.If the foreign investor makes capital contributions in cash (including cross-border spot exchange and RMB), the opening bank can handle registration for accounting entry of monetary contribution for domestic direct investmentupon receipt of relevant capital funds directly through the capital accountinformation system of the SAFE, and the capital funds can be used only after the registration. (II) Canceling filing of foreign exchange for overseas reinvestment.Foreign exchange filing will no longer be required for overseas reinvestment for establishment of or control over another overseas enterprise by an overseas enterprise established or controlled by a domestic investment entity. (III)Canceling annual check of foreign exchange for direct investment and replacing it with registration for accumulated equity.Data on accumulated equity in domestic direct investment and/or overseas direct investment (collectively, the accumulated equity in direct investment) as at the end of the last year shall be reported through the capital account information system of the SAFE by relevant market entity itself or by an accounting firm or a bank before and on September 30 every year. The foreignexchangeauthorities shall, through the capital account information system, control the transactions of a relevant market entity thatfails to abide by the provision above andno bank is allowed to handle transactions of foreign exchange under the capital account for this entity. Only after the data have been reported as required and a letter of explanation for reasonable causes has been delivered to the foreign exchange authorities can the foreign exchangeauthorities stop control over the entity's business. Administrative penalty shall be duly imposed on entities suspected of violating regulations on foreign exchange administration. Relevant market entities, including foreign-invested enterprises participating in the sampling survey by the foreign exchange authorities on accumulated equity in direct investment, shall follow the requirements of the sampling survey system and report relevant information to theforeign exchange authorities at the place of their incorporation on a quarterly basis. III. Banks shall raise their awareness of compliance in handling registration of foreign exchange for direct investment (I) Banks shall develop internal managementregulations and systemson registration of foreign exchange for direct investment, and keep the rules for future reference. The internal management regulations and systems shall at least include the following: 1. Operating procedures for registration of foreign exchange for direct investment, including processes and standards for acceptance of transactions, compliance of documents and authenticity verification; 2. Risk control system for registration of foreign exchange for direct investment, including compliance risk review,transaction & check, andclassified review system; 3. Statistical reporting systemfor registration of foreign exchange for direct investment, including data collection channels and operating procedures. (II) Banks can voluntarily conduct business access management for registration of foreign exchange for direct investment over their branches that have obtained the financial institution identification code from the foreign exchange authorities. (III) Banks shall perform the obligation of authenticity verification in strict accordance with this Circular and the attached Operating Guidelines for Foreign Exchange Transactions for Direct Investment,handle registration of foreign exchange for direct investment through the capital account information system of the SAFE, and keep all the relevant registration documents for future reference. (IV) In handling registration of foreign exchange for direct investment, a bank shall immediately report any unspecified provisions, inaccurate data or abnormalities to the foreign exchange authority at the place of the incorporation ofa relevant market entity. IV. Foreign exchange authorities shall enhance training and guidance for, and ex post regulation of banks. (I) Foreign exchange authorities shall enhance training and guidance for, and ex post regulation of banks. They shall obtain the information on their handling of foreign exchange for direct investmentandthesubmission ofrelevant data,statements and other documents. They shall conduct ex post verification and inspection of the banks' compliance in handling foreign exchange for direct investment and their execution of the internal control system to develop a full understanding of the banks' handling of foreign exchange for direct investment. They shall immediately report abnormalities, rectify and deal withany violations. (II) In accordance with regulations on foreign exchange administration, the foreign exchange authorities shall impose punishment on any bank that fails to review, collect statistics on and report issues regarding the registration of foreign exchange for direct investment, and also may order the bank to suspend such registration. In cases that the bank seriously violate regulations or fails to effectively rectify itself during the suspension period, theforeign exchange authority may disqualify the bank for handling registration of foreign exchange for direct investment. This Circular shall come into effect on June 1, 2015. After coming into effect, this Circular shall prevail where there is a discrepancy with previous regulations.The pilot regions for the reform of foreign exchange settlement of capital of foreign-invested enterprises shall continue to implement the willingness exchange settlement policy in accordance with the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Implementing a Pilot Program in Some Regions on Reform of Management Mode for Settlement of Foreign Exchange Capital of Foreign-Invested Enterprises (Huifa No. 36[2014]).Upon receipt of this circular, the SAFE branches and foreign exchange administration departments should immediately forward it to the central sub-branches, sub-branches, urban and rural commercial banks, foreign banks and rural cooperative banks within their respective jurisdiction, while the Chinese banks should promptly forward it to the branches within their jurisdiction. Any problems during implementation shall be reported to the Capital Account Management Department of the SAFE in a timely fashion. The State Administration of Foreign Exchange February 13, 2015 FILE: Operating Guidelines for Foreign Exchange Transactions for Direct Investment 2015-04-29/en/2015/0429/759.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: To push forward with the reform on foreign exchange administration, promote trade and investment facilitation, support the growth of the real economy and guard against the risks arising from cross-border capital flows, relevant measures are notified as follows: I. The lower limits of comprehensive positions of banks in the settlement and sales of foreign exchange will be extended. For banks with the equivalent of their foreign exchange settlements and sales over USD 200 billion, the lower limit of their positions will be adjusted to USD -5 billion; for banks with the equivalent value between USD 20 billion and USD 200 billion, the lower limit of their market-making positions will be adjusted to USD -2 billion while that of the non-market-making positions, USD -1 billion; for banks with the equivalent value between USD 1 billion and USD 20 billion, the lower limit of their market-making positions will be adjusted to USD -500 million while that of their non-market-making positions, USD -300 million; for banks with the equivalent value between USD 100 million and USD 1 billion, the lower limit of their positions will be adjusted to USD -200 million; for banks with the equivalent value below USD 100 million and those recently obtaining the qualification for foreign exchange settlements and sales, the lower limit of their positions will be adjusted to USD -50 million. These adjustments shall become effective following the issuance of this Circular. II. The approach to the delivery of forward transactions for foreign exchange settlement will be diversified. When providing forward foreign exchange settlement services to institutional customers, banks may choose full or net settlement at their own discretion as a way of delivery, in conformity with the principle of satisfying actual needs. The currency and reference rate for the net forward settlement of foreign exchange are subject to the foreign exchange administration provisions on options. III. The administration of foreign exchange receipts from trade in goods will be simplified for Class-A enterprises. The foreign exchange receipts by Class-A enterprises from trade in goods (other than foreign exchange refunds and offshore entrepot transactions) will temporarily not be recorded in the accounts pending verification for receipts from exports, but will be directly recorded in the foreign exchange accounts under the current account or settled. IV. Policies for the administration of foreign exchange settlement for the external debt of Chinese and foreign-funded enterprises will be unified, with the foreign debt of by Chinese non-financial institutions subject to foreign exchange settlement in accordance with the provisions on external debt administration for foreign-funded enterprises. V. The administration of foreign exchange receipts and payments will be standardized for offshore entrepot transactions for trade in goods. When providing receipt and payment services to enterprises for offshore entrepot transactions, banks shall verify the contract, invoice, authentic and valid documents of title including shipping bill, bill of lading and warehouse receipt of each transaction, to ensure the authenticity, compliance and reasonableness of the transactions. The receipt and payment of the same offshore entrepot transaction shall be processed by the same outlet of the bank in the same currency (foreign currency or RMB). The receipts and payments for offshore entrepot transactions for Class-B enterprises subject to foreign exchange administration for trade in goods will be suspended. VI. The outward remittance administration will be standardized for foreign exchange profits from direct investments. For outward remittances of the profit equivalent of more than USD 50,000 (exclusive) by domestic institutions, banks shall review the relevant board resolution (or the partnership resolution) on profit distribution, the original copies of tax return forms and the financial statements evidencing the profits, in accordance with the principle of authentic transactions. In each outward profit remittance transaction, banks shall affix seal and endorsement to the original copies of the relevant tax return forms indicating the actual amount and date of the transaction. VII. The measures for the administration of risk reminder notifications will be standardized for trade in goods. The SAFE and its branches and sub-branches (foreign exchange authorities) may send a risk reminder notification (see the Appendix) to enterprises with significant mismatch between capital flows and goods flows or with significant one-way capital flows, requiring them to give explanations within 10 working days. For enterprises failing to give timely explanation or to provide supporting documents and give reasonable explanations, foreign exchange authorities may classify them into Class-B enterprises subject to rigorous regulations, in accordance with Article 55 under the Implementation Details of the Guidance on Foreign Exchange Administration for Trade in Goods. Such Class-B enterprises can be classified as Class-A enterprises provided that their relevant indicators remain normal for 3 consecutive months. VIII. Any companies violating this Circular will be punished by foreign exchange authorities in accordance with the Regulations on Foreign Exchange Administration. IX. The Circular shall take effect as of the date of promulgation. Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening Administration of Inflows of Foreign Exchange Funds (Huifa No. 20 [2013]) shall be abolished simultaneously. For the previous regulations such as the Circular of the State Administration of Foreign Exchange Concerning Printing and Distributing the Provisions for Foreign Exchange Administration of Trade in Goods (Huifa No. 38 [2012]), Circular of the State Administration of Foreign Exchange on Promulgating the Measures for Administration of External Debt Registration (Huifa No. 19 [2013]), the Circular of State Administration of Foreign Exchange on Printing and Distributing of the Regulations for Foreign Exchange Administration on Trade in Services (Huifa No. 30 [2013]), the Circular of the State Administration of Foreign Exchange on Further Improving and Adjusting the Policies for Foreign Exchange Administration under the Capital Account (Huifa No. 2 [2014]), the Circular of the State Administration of Foreign Exchange on Abolishing and Revising Relevant Regulatory Documents Involving the Reform on Registered Capital Registration System (Huifa No. 20 [2015]), if there is any discrepancy between the above regulations and this Circular, this Circular shall prevail. 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, and implement it earnestly. Appendix: Risk Reminder Notification by XX Branch (Sub-Branch) of the State Administration of Foreign Exchange State Administration of Foreign Exchange April 26, 2016 FILE: Risk Reminder Notification by XX Branch (Sub-Branch) of the State Administration of Foreign Exchange 2016-07-11/en/2016/0711/779.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, 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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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, and the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, the insurance group (holding) companies, the insurance companies, the insurance asset management companies and the designated China-funded foreign exchange banks: To further advance administration streamlining and power delegation, and improve foreign exchange administration for the insurance business,, the State Administration of Foreign Exchange (SAFE) has formulated the Guidelines for Foreign Exchange Administration for Insurance Business (hereinafter referred to as the Guidelines, see the Appendix), which shall come into force on March 1, 2015. These documents are hereby circulated to you for execution and relevant issues are notified as follows: I. Connection after delegation of the administrative permission verification power. The Foreign Exchange Business License previously granted can be used during its validity by an insurance company or an insurance group (holding) company until its expiry. In case that the continuous operation of insurance business in foreign exchange is required, the qualification for foreign exchange business shall be applied for in accordance with the Guidelines at least 30 working days prior to the expiry of the Foreign Exchange Business License; in case that the continuous operation of foreign exchange insurance business is not required after the expiry, the Foreign Exchange Business License shall be presented to the local SAFE branch or foreign exchange administration department, to automatically terminate the foreign exchange insurance business. II. An insurance company, insurance group (holding) company and insurance asset management company, which has not registered for direct foreign exchange investment prior to this Circular, shall promptly undergo foreign exchange registration procedures with its local SAFE branch or the processingbank in accordance with relevant provisions. III. For ex post administration and monitoring, all the SAFE branches and foreign exchange administration departments shall conducta comprehensive checkupand verification of the foreign exchange accounts of the insurance companies, the insurance group (holding) companies and the insurance asset management companies within their jurisdiction, so as to ensure the accurate reporting of the account information as required. IV. Upon receipt of this circular, the SAFE branches and foreign exchange administration departments should immediately forward it to the central sub-branches (sub-branches), local commercial banks, and foreign banks within their respective jurisdiction, while the insurance companies and the designated China-funded foreign exchange banks should promptly forward it to their branches. V. After coming into effect, this Circular shall prevail where there is a discrepancy with previous regulations. If you have any questions during the execution of these documents, please promptly contact the Current Account Management Department of the SAFE. Appendix: Guidelines for Foreign Exchange Administration for Insurance Business State Administration of Foreign Exchange January 9, 2015 FILE: Guidelines for Foreign Exchange Administration for Insurance Business FILE: Appendix 1 FILE: Appendix 2 2015-04-02/en/2015/0402/757.html
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The branches and administrative departments of the State Administration of Foreign Exchange (SAFE) in various provinces, autonomous regions, and municipalities directly under the Central Government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and nationwide Chinese-funded banks: To standardize currency exchange agencies and self-service currency exchange machines with respect to the currency exchange business, the State Administration of Foreign Exchange (SAFE) has formulated the Regulations on Management of Currency Exchange Agencies and Self-service Currency Exchange Machines ("Regulations", see the appendix), which are hereby issued for your compliance and implementation. I. The Regulations shall come into force as of the date of issuance. The Circular of the State Administration of Foreign Exchange on Improving Foreign Exchange Administration of Currency Exchange Agencies (Huifa No. 48 [2007]) and the Circular of the State Administration of Foreign Exchange on Further Improving the Individual Currency Exchange Business (Huifa No. 24 [2008]) are hereby abolished. For any discrepancies between the Regulations and previously issued provisions, the Regulations shall prevail. II. The provisions on amount management under Article 7 and 15 of the Regulations and the provisions on adjustment of the authorization agreements between banks and currency exchange agencies in accordance with the Regulations will come into force as of November 1, 2016. Upon receipt of this Circular, the SAFE branches and foreign exchange administration departments should immediately forward it to the central sub-branches (sub-branches), local Chinese-funded banks, foreign-funded banks and franchised individual currency exchange agencies within their respective jurisdiction, and the Chinese-funded banks should promptly forward it to the branches under their jurisdictions. For any problems arising from implementation, please contact the Department of the Balance of Payments of the SAFE in a timely manner. Tel.: 010-68402399, 68402313. Appendix: Regulations on Management of Currency Exchange Agencies and Self-service Currency Exchange Machines State Administration of Foreign Exchange May 19, 2016 FILE: Regulations on Management of Currency Exchange Agencies and Self-service Currency Exchange Machines 2016-07-11/en/2016/0711/778.html
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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, and SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, branches of the China Insurance Regulatory Commission (CIRC), all insurance companies and designated China-funded foreign exchange banks: To further advance administration streamlining and powerdelegation, deliver a good performance in foreign exchange administration for the insurance business, the SAFE and the CIRC hereby declare invalid the Circular of the State Administration of Foreign Exchange and the China Insurance Regulatory Commission on Release and Implementation of the Interim Regulations for Foreign Exchange Administration for Insurance Business (Huifa No. 95 [2002]) This Circular shall take effect on March 1, 2015. State Administration of Foreign Exchange China Insurance Regulatory Commission January 7, 2015 2015-04-02/en/2015/0402/758.html
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FILE: Catalogue of Major Existing Laws аnd Regulations in Effect on Foreign Exchange Administration (as of December 31,2014) 2015-02-09/en/2015/0209/755.html
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A National Foreign Exchange Administration Conference has been held in Beijing . The participants earnestly studied the spirit of the Seventeenth National Congress of the CPC and China 's Central Economic Work Conference. A scientific concept of development was deeply implemented, foreign exchange administration work of prior periods reviewed and summarized, the current situation and tasks analyzed, and the main work for 2008 researched and arranged. Ms. Hu Xiaolian, deputy governor of the PBOC and administrator of the SAFE, attended the meeting and delivered a speech on foreign exchange administration. In 2007, according to the uniform plans set forth by the Party Central Committee and the State Council, the foreign exchange administrations continued to facilitate the holding and use of foreign exchange by domestic institutions and individuals, tightened supervision over capital inflows and sales of foreign exchange, and improved foreign exchange administration, thereby, making progress in various fields. First, a package of policies and measures on foreign exchange administration to promote a balance of payments equilibrium was promulgated. The SAFE abolished the quota limit on the foreign exchange account under the current account, integrated the foreign exchange administration policies for the customs special supervisory zone, and actively supported implementation of the Qualified Domestic Institutional Investors (QDII) system. Second, the SAFE further facilitated foreign exchange receipts and payments incurred to domestic institutions and individuals, and raised the total amount for individuals annual purchases of foreign exchange. Annual individual purchases of foreign exchange increased by almost 3 times, qualified finance companies were approved to deal with the trial operations of internal sales and purchases of foreign exchange, approvals of value-maintenance businesses under the debt accounts through overseas institutions, etc. were abolished, and enterprises were helped to enhance the efficiency of capital utilization. Third, the SAFE continued to broaden capital outflow channels. The annual outward remittances of FX capital under the overseas direct investment account totaled USD 10.82 billion, an increase of 32%. The outward remittances of foreign exchange investment with foreign exchange purchased by the QDII totaled USD 35.3 billion. Fourth, the SAFE continued to strengthen construction of the foreign exchange market. The SAFE introduced new institutions to the inter-bank foreign exchange market, enriched the trading categories and business scope, launched the swap business for the RMB and foreign currencies in the inter-bank market, and improved market access management for spot foreign exchange sales and purchases. Fifth, the SAFE tightened management of foreign exchange capital inflows and sales. It strictly monitored foreign exchange collection and payments under the goods trade of enterprises with much foreign exchange collection, reduced in phases the short-term external debt quota of financial institutions, strengthened management of foreign exchange registration and borrowing of external debt by foreign real estate enterprises, carried out a series of special inspections and investigations of key foreign exchange capital inflow links and areas, and intensified efforts to crack down on underground money houses and illegal foreign exchange trading, and other illegal and criminal activities, and constantly improved foreign exchange reserve management, while, at the same time, realizing the maintenance and appreciation of the national foreign exchange reserves, strengthening statistics and monitoring of the balance of payments, and boosting construction of IT applications for foreign exchange administration. Hu Xiaolian pointed out that, since the reform and opening up, China has been deepening its reform of the foreign exchange administration system and has made a series of breakthroughs. For example, the convertibility of RMB current accounts has proceeded gradually; the convertibility of capital accounts is increasing step by step; the formation of the RMB exchange rate is increasingly market-oriented; a foreign exchange market is gradually being established and has made considerable progress; the statistical and monitoring system for foreign exchange business is constantly improving and the management system for foreign exchange reserves is being perfected. Ms. Hu emphasized that the SAFE should continue to use the reform and development methods to solve future problems, devote more energy to institutional and mechanism innovations, and give better play to the basic role of the market in the allocation of foreign exchange resources, constantly improving the market mechanism and management system for the balance of payments and continuing to promote the convertibility of RMB capital accounts in a safe and orderly manner so as to guard against international economic risks. At present, the contradictions in the imbalance in Chinas balance of payments are still prominent; we still face many challenges to improve the situation in this regard. Generally, a twin surplus in the balance of payments will be maintained and various uncertainties will obviously emerge. This will increase the risk of volatility in Chinas balance of payments. Foreign exchange administration departments must always remain clear-headed, further enhance their sense of urgency, keep close track of the domestic and international situations, remain vigilant in peace time, take precautions in advance, and make good preparations to cope with all kinds of complex and difficult situations and emergencies. The conference also made arrangements for the major foreign exchange administration work for 2008. Hu Xiaolian stressed that the foreign exchange administration work in 2008 should fully implement the spirit of the Seventeenth National Congress of the Communist Party of China, hold high the great banner of socialism with Chinese characteristics, remain under the guidance of Deng Xiaoping Theory and the important thoughts of the Three Represents, and earnestly implement the scientific concept of development. Ms. Hu also emphasized deepening the reform of the foreign exchange administration system in accordance with the requirements of the Central Economic Work Conference and the specific arrangements of the work meetings of the Peoples Bank of China, to better meet the needs of domestic institutions and individuals to legitimately hold and use foreign exchange, and to strictly oversee and manage cross-border capital flows and strengthen foreign exchange reserve operations in a bid to improve the equilibrium in the balance of payments. Ms. Hu urged the SAFE to continue to follow and to do a better job in pushing forward the reform, promoting outflows, stressing supervision, and improving methods. First, innovative methods of foreign exchange administration under trade must be developed, vigorously promoting reform of the cancel-after-verification system for imports and exports, carrying out the reform of the foreign exchange administration of the services trade step by step, and formulating a unified set of regulations concerning foreign exchange administration of the services trade. Second, the foreign exchange market must be actively nurtured and developed, strengthening the infrastructure of the foreign exchange market and further improving currency exchange services. Third, the convertibility of the capital account should be promoted in an orderly way, actively supporting overseas direct investment conducted by domestic enterprises and individuals (namely, foreign industrial investment), and steadily pushing forward implementation of the qualified domestic institutional investor system to better satisfy the demands from individual residents for foreign exchange resulting from the growth of personal property income and diversified investment. Fourth, supervision over the foreign exchange business of financial institutions should be consolidated, intensifying supervision over banks implementing foreign currency policies and establishing and improving the bankssupervision and management system of their own foreign exchange revenue and expenditure. Fifth, management of foreign exchange capital collection and sales should be tightened, strengthening dynamic supervision and ex post verification of foreign exchange revenue and expenditures under the goods trade and services trade, further standardizing the administration of individual foreign exchange revenue and expenditures, continuing to strengthen the quota management of banksshort-term external debt, and conducting research on methods to improve external debt management in foreign-invested enterprises. Sixth, efforts should be made to intensify foreign exchange inspections of cross-border capital flows, carrying out a series of special inspections focusing on foreign exchange capital inflows and the flow direction of RMB capital after sales of foreign exchange, conducting special inspections on the compliance of banks in implementing foreign exchange policies and cracking down on underground money shops and illegal trading of foreign exchange, and other illegal and criminal activities together with the relevant departments, and, at the same time, further improving foreign exchange reserves management and promoting foreign exchange administration regulations and administrative capacity-building. 2008-01-29/en/2008/0129/864.html
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October 31, 2007 -- The SAFE recently released China's Balance of Payments Statement for the first half of 2007. Statistics reveal that the current account and the capital and financial account posted a "twin surplus",and international reserves increased rapidly. In the first half of 2007, China's surplus under the current account totaled USD 162.9 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 135.7 billion, USD 12.9 billion, and USD 17.4 billion, respectively, while the deficit in services amounted to USD 3.1 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 90.2 billion. In particular, net inflows of the capital account, direct investments, and other investments reached USD 1.5 billion, USD 50.9 billion, and USD 42.6 billion respectively, while the outflows of portfolio investment totaled USD 4.8 billion. Furthermore, China's international reserves continued to grow. At the end of June, China registered a total of USD 1,332.6 billion in foreign exchange reserves, an increase of USD 266.3 billion over the end of 2006. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the First Half of 2007 in order to facilitate understanding of the data and analysis of China's balance of payments among all social groups. Chinas Balance of Payments * (First Half of 2007) (Unit: 1,000 US dollars) Item Line Balance Credit Debit I. Current Account 1 162,857,962 656,184,959 493,326,998 A. Goods and Services 2 132,549,018 603,062,616 470,513,597 a. Goods 3 135,690,881 547,174,215 411,483,334 b. Services 4 -3,141,862 55,888,401 59,030,263 1.Transportation 5 -4,843,018 13,554,628 18,397,646 2.Travel 6 3,341,977 17,935,000 14,593,023 3.Communication Services 7 125,237 592,293 467,057 4.Construction Services 8 619,002 1,878,559 1,259,557 5.Insurance Services 9 -4,336,191 482,745 4,818,936 6.Financial Services 10 -218,799 76,406 295,205 7.Computer and Information Services 11 971,409 1,948,049 976,640 8.Royalties and Licensing Fees 12 -3,833,739 114,902 3,948,641 9.Consulting Services 13 -196,482 4,941,825 5,138,307 10.Advertising and Public Opinion Polling 14 295,104 875,640 580,536 11.Audio-visual and Related Services 15 31,048 92,700 61,652 12.Other Business Services 16 4,903,403 13,035,673 8,132,270 13. Government Services, n.i.e. 17 -814 359,980 360,794 B. Income 18 12,904,373 34,083,181 21,178,808 1.Compensation of Employees 19 1,716,895 2,972,999 1,256,105 2.Investment Income 20 11,187,478 31,110,182 19,922,704 C. Current Transfers 21 17,404,571 19,039,163 1,634,592 1.General Government 22 -83,230 21,191 104,421 2.Other Sectors 23 17,487,801 19,017,972 1,530,171 II. Capital and Financial Account 24 90,164,499 446,812,821 356,648,322 A. Capital Account 25 1,464,582 1,563,893 99,311 B. Financial Account 26 88,699,916 445,248,928 356,549,011 1. Direct Investment 27 50,919,043 63,314,553 12,395,510 1.1 Abroad 28 -7,414,240 585,653 7,999,892 1.2 Domestic 29 58,333,282 62,728,900 4,395,618 2. Portfolio Investment 30 -4,825,693 17,686,641 22,512,334 2.1 Assets 31 -15,077,372 7,434,962 22,512,334 2.1.1 Equity Securities 32 -5,034,000 927,000 5,961,000 2.1.2 Debt Securities 33 -10,043,372 6,507,962 16,551,334 2.1.2.1 Bonds and Notes 34 -8,175,372 6,507,962 14,683,334 2.1.2.2 Money Market Instruments 35 -1,868,000 0 1,868,000 2.2 Liabilities 36 10,251,678 10,251,678 0 2.2.1 Equity Securities 37 10,251,678 10,251,678 0 2.2.2 Debt Securities 38 0 0 0 2.2.2.1 Bonds and Notes 39 0 0 0 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 42,606,567 364,247,734 321,641,167 3.1 Assets 42 17,149,666 31,767,204 14,617,538 3.1.1 Trade Credits 43 -5,915,000 0 5,915,000 Long-term 44 -414,050 0 414,050 Short-term 45 -5,500,950 0 5,500,950 3.1.2 Loans 46 12,235,115 14,539,086 2,303,972 Long-term 47 -1,041,000 0 1,041,000 Short-term 48 13,276,115 14,539,086 1,262,972 3.1.3 Currency and Deposits 49 9,227,109 13,212,830 3,985,722 3.1.4 Other Assets 50 1,602,443 4,015,287 2,412,844 Long-term 51 0 0 0 Short-term 52 1,602,443 4,015,287 2,412,844 3.2 Liabilities 53 25,456,901 332,480,530 307,023,629 3.2.1 Trade Credits 54 7,132,000 7,132,000 0 Long-term 55 499,240 499,240 0 Short-term 56 6,632,760 6,632,760 0 3.2.2 Loans 57 10,192,989 279,836,819 269,643,829 Long-term 58 2,381,266 10,091,536 7,710,271 Short-term 59 7,811,724 269,745,283 261,933,559 3.2.3 Currency and Deposits 60 8,247,446 44,741,749 36,494,304 3.2.4 Other Liabilities 61 -115,534 769,962 885,496 Long-term 62 278,404 309,958 31,554 Short-term 63 -393,938 460,004 853,942 III. Reserves Assets 64 -266,097,901 219,340 266,317,242 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -36,242 0 36,242 3.3 Reserves Position in the Fund 67 219,340 219,340 0 3.4 Foreign Exchange 68 -266,281,000 0 266,281,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 13,075,441 13,075,441 0 * This BOP statement employs rounded-off numbers. 2007-10-31/en/2007/1031/860.html