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The State Administration of Foreign Exchange
Circular of the State Administration of Foreign Exchange on Interim Measures for Supervision and Control of Verification and Cancellation
of Trade Import Exchange Payments
HuiGuoFaZi [1997] No.1
January 17, 1997
Article 1
These Measures are formulated in accordance with the provisions of the Regulations of the People’s Republic of China on Foreign Exchange
Control for the purposes of improving the supervision and administration of the verification and cancellation of trade import exchange
payments.
Article 2
When making overseas payments for goods, advance payments or back payments related to the import of goods (hereinafter referred to
as import exchange payments) by means of purchasing foreign exchange through a bank or making payments form a spot exchange account,
enterprises(including foreign investment enterprises) and institutions which operate import business with the approval of the Ministry
of Foreign Trade and Economic Cooperation or a unit authorized by it (hereinafter referred to as the importing units) shall undertake
the procedures for verification and cancellation in accordance with these Measures.
Article 3
A “Voucher for Verification and Cancellation of Trade Import Exchange Payments”(in place of a declaration voucher) (hereinafter referred
to as a verification and cancellation voucher) refers to a voucher formulated by the State Administration of Foreign Exchange, filled
out by the importing unit, examined and verified by a designated foreign exchange bank and on the strength of which such bank makes
import exchange payments.
On the strength of one verification and cancellation voucher the import exchange payments may be made just for one time.
Article 4
The State Administration of Foreign Exchange and its branch bureaus (hereinafter referred to as foreign exchange bureaus) shall be
responsible for the verification, cancellation, examination and administration of all import exchange payments, and shall conduct
supervision and inspection of importing units and designated foreign exchange banks. A designated foreign exchange bank shall submit
the verification and cancellation vouchers and relevant statements to the foreign exchange bureau at the place where it is located,
an importing unit making overseas foreign exchange payments shall undertake the procedures for the approval of import foreign exchange
payments verification and cancellation with the foreign exchange bureau at the place where it is located.
Article 5
For import exchange payments where payment of foreign exchange is required on delivery of goods, when the designated foreign exchange
bank makes import foreign exchange payments on the strength of original import goods declaration voucher(copy exclusively for foreign
exchange payment verification and cancellation, the same hereinafter), the procedures for verification and cancellation shall be
regarded as being gone through at the same time; for import foreign exchange payments under other methods of settlement, the importing
unit shall, on the strength of the verification and cancellation voucher, record form, original import goods declaration voucher(for
import foreign exchange payments under entrepot trade arrangements, the foreign exchange conversion memo for the entrepot income
shall be presented), directly undertake the procedures for the approval of import foreign exchange payments verification and cancellation
with the foreign exchange bureau.
Article 6
An importing unit shall, on the strength of the approval document of the Ministry (commission or office) of Foreign Trade and Economic
Cooperation, the business license issued by the department for industry and commerce and the enterprise coda certificate issued by
the technological supervision department, have itself entered onto the Register of Importing Units Making Overseas Foreign Exchange
Payments with the foreign exchange bureau at the place where it is located. Importing units which are not on the Register may not
directly make import foreign exchange payments with the designated foreign exchange bank.
Article 7
The foreign exchange bureau is to promptly publish, update and adjust the register for the designated foreign exchange bank. The foreign
exchange bureaus of the provinces, autonomous regions, municipalities directly under the Central Government, municipalities separately
listed on the State plan and special economic zones may, depending on the actual local situations, centrally publish the Register
of Importing Units Making Overseas Foreign Exchange Payments or have it published by their subordinate branch bureaus for their respective
regions.
Article 8
The foreign exchange bureau has the right to issue at any time to the designated foreign exchange bank a Name List of Importing Units
Examined and Verified for Authenticity by the Foreign Exchange Bureau based on the cancellation and verification circumstances of
an importing unit. The minimum period during which an importing unit shall be subject to examination and verification of authenticity
will be six months.
Article 9
For the following import exchange payments, before exchange payment or before an import letter of credit is issued, an application
shall be made by the importing unit in respect of each sum to the foreign exchange bureau at the place where it is located and procedures
for Import Exchange Payment Record Form (hereinafter referred to as the record form) shall be gone through; the designated foreign
exchange bank shall undergo the import exchange payment procedures for it in accordance with provisions on the basis of the record
form:
(1)
where the importing unit is not on the Register of Importing Units Making Overseas Foreign Exchange Payments;
(2)
where the importing unit is listed onto the Name List of Importing Units Examined and Verified for Authenticity by the Foreign Exchange
Bureau;
(3)
where it is impossible to declare delivery of goods to Customs within 90 days (excluding the 90 days) after exchange payment;
(4)
where the importing unit handles an exchange payment within a designated foreign exchange bank other than one in the city or county
under the jurisdiction of the foreign exchange bureau at the place where it is located.
Article 10
When handling an exchange payment, an importing unit shall truthfully fill in the verification and cancellation voucher (three copies
for each voucher) in accordance with provisions; in case of payment of foreign exchange on delivery, the serial number of the relevant
Customs Declaration For Import Goods and the amount of the currency type declared shall also be filled in. The verification and cancellation
voucher, together with other exchange payment documents, shall be submitted to the designated foreign exchange bank for examination
and verification.
Article 11
After undergoing foreign exchange payment procedures, the designated foreign exchange bank shall classify the first copy of the verification
and cancellation voucher in term of payment of foreign exchange on delivery and other methods of settlement, bind them together respectively
and submit them on a weekly basis to the foreign exchange bureau at the place where the importing unit is located; the second copy
shall be returned to the importing unit, and the third copy, together with other exchange payment documents, shall be kept for five
years for reference.
Article 12
For exchange payment on the strength of the record from, the designated foreign exchange bank shall keep the first copy of the record
form and the third copy of the verification and cancellation voucher together for reference, return the second copy of the record
form and the second copy of the certification and cancellation voucher to the importing unit for safekeeping, and submit the third
copy of the record form and the first copy of the verification and cancellation voucher to the foreign exchange bureau at the place
where the bank is located.
Article 13
An importing unit shall, on a monthly basis, submit the verification and cancellation form as well as the attached verification and
cancellation documents to the foreign exchange bureau for examination, and undergo the procedures for examination of verification
and cancellation with the foreign exchange bureau within one month after declaration of the relevant goods imported.
When undergoing the procedures for examination of verification and cancellation, for the goods which have been delivered, the importing
unit shall attach the original import goods Customs declaration form and other verification and cancellation documents to the back
of the appropriate verification and cancellation vouchers (in case of an exchange payment on the strength of the record form, the
record from shall also be attached to the back of the relevant verification and cancellation vouchers), and shall truthfully complete
the Trade Import Exchange Payment Delivered Goods Verification and Cancellation Form; for goods which have not been delivered, the
Trade Import Exchange Payment Non-delivered Goods Verification and Cancellation Form shall be completed.
Article 14
After examining the verification and cancellation form and documents attached thereto submitted by the importing unit, the foreign
exchange bureau shall affix a “declared and examined” stamp onto the verification and cancellation form and each page of the declaration
forms attached thereto, keep the first copy of the verification and cancellation form, and return the second Copy and the documents
attached thereto to the importing unit.
The importing unit shall have the verification and cancellation form and the documents attached thereto kept for reference for 5 years.
Article 15
The designated foreign exchange bank shall submit the Trade Import Exchange Payment Monthly Statistical Report to the foreign exchange
bureau prior to the fifth of every month.
Article 16
The foreign exchange bureau shall, in a way of total sum or individual sum, cross-verify and check the verification and cancellation
vouchers submitted by the designated foreign exchange bank and the importing unit, verify and check the verification and cancellation
form and the documents attached thereto submitted by the importing unit in light of the verification and cancellation voucher submitted
by the designated foreign exchange bank, and verify and check the importing unit’s and bank’s situations of exchange payments and
of verification and cancellation in light of the record form.
Article 17
The foreign exchange bureau shall undertake random checks of an importing unit and a designated foreign exchange bank according to
the situations of verification and checks; for any doubtful documents, importing units or designated foreign exchange banks, key
verification and checks shall be undertaken, and “second verification” shall be conducted, in accordance with relevant provisions
and at any time, with the Customs at the place where the declaration form is issued. Under payment of foreign exchange on delivery,
for an exchange payment on the strength of import goods Customs declaration form, the “second verification” of the import goods Customs
declaration form shall be still conducted by the designated foreign exchange bank.
Article 18
An importing unit which commits the following acts shall make an explanation to the foreign exchange bureau within five working days
after receiving a notice. Where no explanation has been made by the expiration of the time limit or where there are no justified
reasons, the foreign exchange bureau shall, in accordance with the provisions of Article 8 of these Measures, enter the importing
unit onto the Name List of Importing Units Examined and Verified for Authenticity by Foreign Exchange Bureau:
(1)
to submit for examination a false, forged, altered or reused customs declaration form for import goods (verification and cancellation
copy) or other documents to a foreign exchange bureau or a designated foreign exchange bank;
(2)
to fail to provide a valid customs declaration form for import goods or other evidence of delivery of goods on time after exchange
payment;
(3)
without a record form in the situation where a record form shall be presented;
(4)
to fail to submit, to falsely submit or in another manner not in accordance with provisions, to submit a verification and cancellation
form and documents attached thereto to the foreign exchange bureau or to lose relevant documents;
(5)
to violate other provisions of these Measures.
Article 19
For a designated foreign exchange bank or an importing unit which is in violation of these Measures, the foreign exchange bureau shall
impose penalties upon it in accordance with the provisions of the Regulations of the People’s Republic of China on Foreign Exchange
Control.
Article 20
The branches of the foreign exchange bureaus shall submit the Trade Import Exchange Payment Verification and Examination Form to the
State Administration of Foreign Exchange prior to 10th of every month.
Article 21
The State Administration of Foreign Exchange shall be responsible for the interpretation of these Measures.
Article 22
These Measures shall enter into force as of March 1, 1997. The Interim Measures for Administration of Verification and Cancellation
of Import Foreign Exchange Payment promulgated on July 31, 1996 shall be nullified at the same time.
Attachment omited
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