To promote facilitation of receipts and payments under trade in goods and satisfy banks' and enterprises' demand for handling of foreign exchange through electronic data interchange (EDI), the State Administration of Foreign Exchange (SAFE) has recently released the Circular of the State Administration of Foreign Exchange on Standardizing Reviews of Electronic Documents for Receipts and Payments of Foreign Exchange under Trade in Goods (Huifa No. 25 [2016], the "Circular").

The highlights of the Circular include: First, allowing reviews of electronic documents when receipts and payments of foreign exchange under trade in goods are handled. While observing the existing regulations on the administration of foreign exchange under trade in goods and implementing the three principles of business operation, banks can choose to review paper or electronic documents at their discretion. Second, encouraging credible enterprises and banks doing business in compliance with regulations to handle receipts and payments of foreign exchange under trade in goods by using electronic documents. In particular, it is required that the handling bank should be class-B or above (excluding B-) in foreign exchange administration assessment over the past three years, and the enterprise should be class-A with regard to trade in goods. Third, defining the obligations of banks and enterprises. Banks shall make further efforts for authenticity reviews, independently and cautiously choose enterprises subjected to reviews of electronic documents and keep the documents for future reference. Enterprise shall work to ensure the authenticity and compliance of electronic documents presented, and cooperate with banks in authenticity reviews. Fourth, standardizing ex-post administration. The SAFE will verify or inspect reviews of electronic documents and punish irregularities in accordance with the law.

This Circular shall come into force as of November 1, 2016.