CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE AMENDMENT OF ARTICLE 7 OF THE INTERIM PROVISIONS ON THE ANNUAL FOREIGN EXCHANGE INSPECTION OF ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Amendment of Article 7 of the Interim Provisions on the Annual Foreign
Exchange Inspection of Enterprises with Foreign Investment

HuiZiHanZi [1995] No.178

October 9, 1995

The branches of the State Administration of Foreign Exchange in various provinces, autonomous regions, municipalities directly under
the Central Government, municipalities seperately listed on the State plan and special economic zones:

Article 7 of the Interim Provisions on the Annual Foreign Exchange Inspection of Enterprises with Foreign Investment (HuiZiHanZi
[1995] No.10) stipulates: “Foreign exchange bureaus shall provide certificate validation services for enterprises based on their
annual foreign exchange inspection reports. If an enterprise passes the annual inspection, the relevant foreign exchange bureau shall
stamp approval on the Certificate of Foreign Exchange Registration for Enterprises with Foreign Investment, and the enterprise may
conduct foreign exchange transaction in the foreign exchange market with the Certificate of Foreign Exchange Registration for Enterprises
with Foreign Investment bearing the approval stamp. Enterprises that fail the annual inspection can buy or sell foreign exchange
in the foreign exchange market only with an advice note for foreign exchange sales approved by the relevant foreign exchange bureau.
Enterprises failing to go through certificate validation before the specified date shall be treated as not passing the annual inspection.”
This Article is now amended as follows: “For enterprises that do not go through the annual or whose annual inspection application
exceeds the time limit shall be warned or fined, according to specific circumstances, by relevant foreign exchange bureaus. Foreign
exchange bureaus shall provide certificate validation services for enterprises based on their annual foreign exchange inspection
reports. If an enterprise passes the annual inspection, the relevant foreign exchange bureau shall stamp approval on the Certificate
of Foreign Exchange Registration for Enterprises with Foreign Investment, and the enterprise may conduct foreign exchange transaction
in the foreign exchange market with the Certificate of Foreign Exchange Registration for Enterprises with Foreign Investment bearing
the approval stamp. Enterprises that fail the annual inspection can buy or sell foreign exchange in the foreign exchange market only
with an advice note for foreign exchange sales approved by the relevant foreign exchange bureaus. For enterprises failing to go through
annual inspection and certificate validation before the specified date, their foreign exchange receipts and disbursements shall be
examined one by one by relevant foreign exchange bureaus for approval.”