The State Administration of Foreign Exchange Provisions Governing the Use of Foreign Currency by Enterprises with Foreign Investment in Computing Prices and Settling Accounts January 7, 1989 The following Provisions are enacted by the State Administration of Foreign Exchange (SAFE) in accordance with the Rules for the Implementation Article 1 An enterprise with foreign investment (hereinafter referred to as enterprise) that wishes to use foreign currency to compute prices Article 2 The applicant must conform to one of the following conditions: (1) Its products are those that need to be imported under the State plan; (2) Its products are sold to the special economic zones, economic-technological development zones, or enterprises with foreign investment; (3) Its products are raw or semi-finished materials, spare parts or fittings which domestic production enterprises need to import with Article 3 While applying for the use of foreign currency to compute prices and settle accounts for the products it sells in China, the enterprise (1) an application to that effect, stating the reason for application, the names and amounts of products, the sum of money, and the duration; (2) a certificate from an accountant office registered in China confirming that the enterprise’s capital has been fully paid up as scheduled; (3) other documents required by the exchange control authorities. Article 4 The exchange control authorities shall examine and approve the application from an enterprise on an annual basis, stipulating the Article 5 In case an enterprise needs to use foreign currency to compute prices and settle accounts for the products it sells in places other Article 6 For products the prices of which are allowed to be computed and the accounts to be settled in foreign currency, the prices shall generally Article 7 Generally, an enterprise shall not be allowed to compute prices or settle accounts in foreign currency for its products in one of (1) If the enterprise, in violation of the provisions of its contracts, articles of association or the documents of approval, has failed (2) If the enterprise or its products are not of the category in which investment is encouraged by the State. Article 8 Without the approval of the exchange control authorities, no enterprise may use foreign currency to compute prices and settle accounts Article 9 In case of conflict between past provisions and the present Provisions, the present Provisions shall prevail. Article 10 The right to interpret these Provisions resides in the SAFE. Article 11 These Provisions shall enter into force on March 1, 1989. |
The State Administration of Foreign Exchange
1989-01-07