|
State Administration of Foreign exchange of the People’s Republic of China
Circular of the State Administration of Foreign Exchange on Related Matters Concerning the Improvement of Administration of Export
Prepayment and Collection of Foreign Exchange from Carrying Trade at the Present Stage
Hui Fa [2005] No. 33
May 17, 2005
The branches and offices of the State Administration of Foreign Exchange of the People’s Republic of China (SAFE) in all provinces,
autonomous regions, municipalities directly under the Central Government, and the SAFE branches of municipalities of Shenzhen, Dalian,
Qingdao, Xiamen and Ningbo as well as various designated foreign exchange banks with Chinese investment:
In view of issues with respect to foreign exchange collection under current items at the present stage, especially the prepayment
and the collection of foreign exchange from carrying trade and for the purpose of strengthening the examination of the authenticity
of the inflow of foreign exchange funds under current items and regulating the activities of export prepayment and collection of
foreign exchange from carrying trade, related matters are hereby notified as follows:
1.
Various SAFE branches and offices (hereinafter referred to as “foreign exchange departments”) and designated foreign exchange banks
(hereinafter referred to as “banks”) shall strengthen the examination of the authenticity of export prepayment and collection of
foreign exchange from carrying trade in strict compliance with this Circular and other pertinent regulations for the administration
of foreign exchange.
2.
Banks shall, upon the receipt of foreign remittance made by units collecting foreign exchange, carefully examine the nature of such
remittance based on the remittance instruction and deal with corresponding formalities of foreign exchange settlement or entry into
account books for such units in accordance with this Circular and existing relevant regulations for the administration of collecting
and settling foreign exchange.
3.
With regard to any of the following single foreign remittance in an amount equivalent to USD 200 million or above (the figure inclusive),
banks shall transfer such remittance into special foreign exchange accounts, which are opened by units collecting foreign exchange
with such banks, namely accounts used for future foreign exchange settlement:
(1)
export prepayment;
(2)
collection of foreign exchange from carrying trade;
(3)
a sum which is explicitly required to be deposited into an account for the settlement of foreign exchange under current items according
to foreign remittance instruction, but unable to have its transaction nature judged by banks subject to the same instruction; and
(4)
a sum which is explicitly required to be settled into an RMB account based on foreign remittance instruction, but unable to have its
transaction nature judged by banks subject to the same instruction.
Foreign remittance with the nature of donation and international exchange shall directly enter corresponding special accounts under
current items in accordance with the existing regulations.
4.
Expenditures in accounts for future foreign exchange settlement shall include: the expenditure of foreign exchange under current items,
approved expenditure of foreign exchange under capital items, the transfer in original currency of foreign exchange funds deposited
in different accounts for future foreign exchange settlement of the same unit collecting foreign exchange and the settlement of foreign
exchange conforming to provisions of this Circular.
5.
Banks may, without any approval from the foreign exchange departments, open accounts for future foreign exchange settlement for units
collecting foreign exchange. No such account shall be incorporated into the information management system for foreign exchange accounts
temporarily, the balance of which shall not be subject to the limit of accounts for the settlement of foreign exchange under current
items.
6.
Where foreign exchange funds in accounts for future foreign exchange settlement are settled, any unit collecting foreign exchange
shall submit a written explanation to a bank, indicating the nature of the sum to be settled, provide relevant documents and comply
with the following provisions:
(1)
If foreign exchange funds are indicated in writing by a unit collecting foreign exchange as export prepayment, settlement of foreign
exchange shall be made on presentation of an original copy of an instrument for verification and writing- off of the export proceeds
in foreign exchange (hereinafter referred to as “instrument for verification and writing-off”) with a seal stating “examined” as
affixed by the Customs thereon. Any banks shall, upon completing such formality, endorse on the column for bank use only of such
original copy the corresponding amount of settled foreign exchange and date. Foreign exchange funds which are required to be paid
in RMB at home with no presentation of an original copy of an instrument for verification and writing- off temporarily, shall be
settled in compliance with the payment instruction provided by a unit collecting for exchange, showing the use of RMB funds after
foreign exchange settlement. RMB funds after foreign exchange settlement shall be directly paid to any payee other than a payer designated
on such payment instruction.
(2)
Where foreign exchange funds are indicated in writing by a unit collecting foreign exchange as foreign exchange earnings from carrying
trade to be paid first and collected then, foreign exchange settlement shall be made on presentation of a duplicate of a verification
certificate of import payment and a carrying trade contract. Any banks shall, upon completing such formality, endorse on such contract
the corresponding amount of settled foreign exchange and date.
(3)
Where foreign exchange funds are indicated in writing by a unit collecting foreign exchange as foreign exchange earnings from carrying
trade to be collected first and paid then, the settlement of foreign exchange shall not be made prior to the completion of external
payment for carrying trade. The balance of such foreign exchange funds shall, after external payment has been made, be settled on
presentation of a carrying trade contract.
(4)
In case foreign exchange funds are indicated in writing by a unit collecting foreign exchange as other sums to fall under the scope
of trade items, foreign exchange settlement shall be made on the presentation of the original copy of an instrument for verification
and writing- off. Any banks shall, upon completing such formality, endorse on the column for bank use only of such original copy
the corresponding amount of settled foreign exchange and date.
(5)
In case foreign exchange funds are indicated in writing by a unit collecting foreign exchange as other sums to fall under the scope
of current items and to be paid in RMB at home, foreign exchange settlement shall be made in compliance with the payment instruction
provided by such unit, showing the use of RMB funds after foreign exchange settlement. RMB funds after foreign exchange settlement
shall be directly paid to any payee other than a payer designated on such payment instruction.
(6)
Banks shall, upon handling the formality of foreign exchange settlement for units collecting foreign exchange, retain originals or
photocopies of corresponding documents.
7.
The external payment of the foreign exchange funds deposited into the account for future settlement of foreign exchange shall comply
with existing relevant regulations for the administration of foreign exchange collection. Foreign exchange funds in different accounts
for future foreign exchange settlement of the same unit collecting foreign exchange may be transferred in original currency. Transferring
banks shall, upon dealing with such formality, endorse on the remark column the wordings of “transfer of funds deposited in the account
for future foreign exchange settlement”.
Foreign exchange funds deposited in the account for future foreign exchange settlement, other accounts other than accounts for future
foreign exchange settlement belonging to the same unit collecting foreign exchange and other foreign exchange accounts of other units
shall not be transferred one another.
8.
After the prepayment has been entered into the book account or settled, where units collecting foreign exchange apply to banks for
obtaining coupons special for verification and writing-off of the export proceeds in foreign exchange, banks shall examine original
copies of instruments for verification and writing- off and goods declaration for exportation respectively as provided by such units,
and shall not issue coupons special for verification and writing-off until endorsing on the column for bank use only of the said
instrument the corresponding the amount of collected foreign exchange and affixing an official business seal after number of such
instrument is verified consistent with that on the goods declaration for exportation.
9.
Where an application is filed for the refund of export prepayment or foreign exchange earnings from carrying trade after such prepayment
or foreign exchange earnings has been collected, settled or entered into the book account due to any reason, foreign exchange departments
shall conduct an strict examination in accordance with relevant provisions of the Detailed Rules for the Implementation of the Measures
for the Administration of Verification and Writing-off of the Export Proceeds in foreign Exchange (Hui Fa [2003] No.107)
10.
Banks shall, within ten working days prior to each quarter, report such information as the opening of accounts for future foreign
exchange settlement, foreign exchange collections and payments, foreign exchange settlement and the balance (See Appendix 1 for the
format) to foreign exchange departments where foreign exchange is collected. Local SAFE branches shall, within 15 working days prior
to each quarter, report such information as the opening of accounts for future foreign exchange settlement, foreign exchange collections
and payments, foreign exchange settlement and the balance (See Appendix 2 for the format) to the Current Account Management Department
of the SAFE.
11.
Foreign exchange departments shall intensify the sorting out of data in respect of foreign exchange which has been collected but failed
to be verified and written off, focus on the supervision over the large and overdue foreign exchange which has been collected but
failed to be verified and written off, strengthen the analysis, verification, inspection and correction of abnormal circumstances,
and transfer cases in contravention of regulations for the administration of foreign exchange to departments in charge of foreign
exchange inspection for investigation and punishment.
12.
Banks shall be given punishments in accordance with Article 42 of the Regulations of the People’s Republic of China on Foreign Exchange
Control if dealing with the formality of foreign exchange settlement in violation of this Circular; Banks failing to timely submit
reports according to provisions shall be penalized subject to Article 31 and Article 49 of the Regulations of the People’s Republic
of China on Foreign Exchange Control; Where banks and importing & exporting units violate other provisions hereof, punishments shall
be applied in compliance with the Regulations of the People’s Republic of China on Foreign Exchange Control and other regulations
for the administration of foreign exchange.
13.
This Circular shall not apply to enterprises located in special economic regions subject to the enclosed supervision by the Customs,
for instance, bonded areas, bonded processing areas, bonded logistics zones and logistics centers.
14.
This Circular shall become effective as of June 1, 2005. In case of any discrepancy between former regulations and this Circular,
the latter shall prevail.
Various SAFE branches shall, upon the receipt of this Circular, transmit it to all the central sub-branches, foreign-funded banks
and related units within the jurisdiction of such SAFE branches as soon as possible; All the designated foreign exchange banks with
Chinese investment shall, upon receiving this Circular, promptly transmit it to their subordinated branches. In case of any problem
during the implementation hereof, please timely report such case to the Current Account Management Department of the SAFE.
Appendices:
1)
Quarterly Report on the Information of an Account for the Future Settlement of Foreign Exchange under Current Items (For Bank Use
Only) (Omitted)
2)
Quarterly Report on the Information of an Account for the Future Settlement of Foreign Exchange under Current Items (For SAFE Branch
Only) (Omitted)
|
