|
The State Administration of Foreign Exchange
Circular of the State Administration of Foreign Exchange on Printing and Distributing the Interim Provisions on the Administration
of Domestic Foreign Exchange Transfer
HuiGuanHanZi [1997] No.250
September 25, 1997
(Notice is omitted)
Interim Provisions on the Administration of Domestic Foreign Exchange Transfer
Article 1
These Provisions is promulgated according to the Article 7 of the Provisions of Foreign exchange Administration of People’s Republic
of China in an attempt to regulate activities of domestic foreign exchange transfer.
Article 2
Foreign exchange transfer referred to in these Provisions is activities that domestic entities conduct remittance and transfer in
foreign exchange through financial institutions in foreign exchange operation.
Article 3
The State Administration of Foreign exchange and its branches (hereinafter as “SAFE” in brief) exercise supervision on domestic foreign
exchange transfer.
Article 4
Foreign exchange transfer between domestic entities shall apply to these Provisions. Foreign exchange transfers such as inter-bank
borrowing and funds settlement etc between financial institutions shall apply to other provisions promulgated by SAFE.
Article 5
Any entity and individual shall not quote in foreign exchange for settlement in China, and financial institutions shall not conduct
foreign exchange transfer for customers except under the circumstances specified in Article 6 , 7 and 8 of these Provisions. In case
SAFE has other provisions, transfer shall be conducted accordingly.
Article 6
Under circumstances listed below, domestic entities shall apply to financial institutions and present specified valid documents and
commercial bills. Financial institutions shall process foreign exchange transfer after verifying valid documents and commercial bills.
(1)
If entrusting party under agent exports is an enterprise with foreign investment or a domestic entity that is permitted to hold foreign
exchange proceeds, the agency shall apply to a financial institution for transfer and present a reserved copy of agent contract,
an export contract, valid documents and commercial bills, entrusting party’s Foreign exchange Registration Certificate of Enterprises
with Foreign Investment (a xerox copy) or a Utilization Certificate of Foreign Exchange Account (a xerox copy). Financial institutions
shall process foreign exchange transfer after verifying valid documents and commercial bills, and mark “Trade, Export foreign exchange
proceeds collection, transfer in original currency”, date of receiving foreign exchange and amount in remittance postscript;
(2)
If entrusting party under agent imports is an enterprise with foreign investment or a domestic entity that is permitted to hold foreign
exchange proceeds, entrusting party shall present a reserved copy of agent agreement, a Foreign Exchange Registration Certificate
of Enterprises with Foreign Investment and a Utilization Certificate of Foreign exchange Account and apply to a financial institute
for transfer;
(3)
With respect to winning an international bid under international loan, if both the bid issuer and the bid winner are domestic entities,
the bid issuer shall transfer project funds to the bid winner upon presentation of bid contract and bid-winning proof documents;
(4)
Domestic entities in export & import businesses shall pay foreign insurance and transportation fees to domestic insurance and transportation
institutions from its own foreign exchange account upon presentation of an export-import contract, a reserved copy of receipts of
insurance and transportation fee;
(5)
Domestic insurance institutions shall pay indemnity to domestic entities upon presentation of an export-import contract, and a reserved
copy of insurance document;
(6)
Repayments of principal and payment of interest of foreign exchange loans extended by domestic Chinese-funded financial institutions
shall be effected upon presentation of a lending contract, a notice of principal repayment and interest payment, a Foreign Exchange
(Indirect) Loan Registration Certificate;
(7)
Domestic entities shall pay principal and interest of indirect external debt to domestic Chinese-funded financial institutions upon
presentation of an External Debt Registration Certificate or a Foreign Exchange (Indirect) Loan Registration Certificate, an indirect
lending contract, a notice of principal repayment and interest payment and a verification note of principal repayment and interest
payment issued by SAFE;
(8)
Domestic entities shall pay foreign exchange rental to domestic financial leasing company upon presentation of a leasing contract
and a Foreign Exchange (indirect) Loan Registration Certificate;
(9)
Enterprises with foreign investment shall make foreign exchange transfer between its own current accounts within the ceiling amount
and between foreign exchange capital accounts upon presentation of a Foreign Exchange Registration Certificate of Enterprises with
Foreign Investment and a Verification Note of Ceiling Amount for Foreign Exchange Current Account issued by SAFE; In case of external
payments, valid documents and commercial bills for external payments shall also be presented;
(10)
Foreign exchange remitted or taken by foreign investors as investment shall be transferred from a transient account to a foreign exchange
capital account of an enterprise with foreign investment upon presentation of a Foreign Exchange Registration Certificate of Enterprises
with Foreign Investment, proof documents of economic and trade administration and a business license of industrial and commercial
administration.
Article 7
Under circumstances listed below, domestic entities shall apply to SAFE with specified materials; financial institutions shall conduct
foreign exchange transfer upon presentation of verification note of SAFE:
(1)
Investment enterprises with foreign investment, when investing in China, shall present a report on verification of capital of a CPA
office, approval documents of a newly invested enterprise, an approved contract and constitution, a Foreign Exchange Registration
Certificate of Enterprises with Foreign Investment and other documents required by SAFE;
(2)
An enterprises invested by an investment enterprise with foreign investment shall present a Foreign Exchange Registration Certificate
of Enterprises with Foreign Investment, a profit distribution resolution of board of directors and a proof document of duty clearing
when remitting its foreign exchange profits to the investment enterprise with foreign investment;
(3)
With respect to investing foreign exchange profits in other domestic enterprises, foreign investors of an enterprise with foreign
investment shall present a report on verification of capital of a CPA office, an annual finance audit report, a profit distribution
resolution of board of directors and a proof documents of duty clearing, a confirmation of earning reinvestment of foreign investors,
approval documents from administrative department which approved the original project, a Foreign Exchange Registration Certificate
of Enterprises with Foreign Investment and other documents required by SAFE;
(4)
Foreign investors of an enterprises with foreign investment, when increasing capital in another enterprise by using foreign exchange
profits, shall present a profit distribution resolution of board of directors, a proof document of duty clearing, a confirmation
of earning reinvestment, approval documents from administrative department which approved the original project, a Foreign Exchange
Registration Certificate of Enterprises with Foreign Investment and other documents required by SAFE;
(5)
Chinese and Foreign investors of an enterprise with foreign investment, when investing foreign exchange profits to increase capital
in the enterprise, shall present a profit distribution resolution of board of directors, a proof document of duty clearing, a confirmation
of earning reinvestment, approval documents from administrative department which approved the original project, a Foreign Exchange
Registration Certificate of Enterprises with Foreign Investment and other documents required by SAFE;
(6)
When registered capital of an enterprise with foreign investment is transferred to other domestic entities, a report on verification
of capital of a CPA office, a resolution of board of directors and a proof document of duty clearing, approval documents from administrative
department which approved the original project, a transfer agreement, a Foreign Exchange Registration Certificate of Enterprises
with Foreign Investment and other documents required by SAFE shall be presented;
(7)
In case Chinese investors of an enterprise with foreign investment pay registered capital in foreign exchange with approval, approval
documents of the authority and the contract and constitution of the enterprise shall be presented.
Article 8
Under circumstances listed below, domestic entities shall apply to financial institutions with a Foreign Exchange Account Utilization
Certificate and relevant material, and financial institutions shall make foreign exchange transfer according to the scope of receipts
and payments of the foreign exchange account verified by SAFE:
(1)
Duty-free shops approved by the Customs transfer payments for goods to its parent company;
(2)
Domestic trans-remittance of Post Office for international postal remittances;
(3)
Trans-remittance or funds of disbursement transferred from shipping agency to its sub-agencies in domestic ports; rebates of residual
funds of disbursement transferred from sub-agencies to general agency;
(4)
Funds of disbursement for shipping operation transferred by sea shipping company in international sea shipping operation to its subsidiaries
and transportation fees submitted by its subsidiaries.
Article 9
In case domestic entities violate these Provisions to make a foreign exchange transfer within the territory of China, SAFE shall give
punishment according to the Article 45 of the Provisions of Foreign Exchange Administration of People’s Republic of China. In case
of criminal offense, a criminal suite shall proceed.
Article 10
In case a financial institution makes foreign exchange transfer without verifying valid documents and commercial bills according to
these Provisions, SAFE shall give a heavier punishment according to Article 45 of the Provisions of Foreign Exchange Administration
of People’s Republic of China.
Article 11
The interpretation of these Provisions shall rest with SAFE.
Article 12
These Provisions shall enter into force as of October 15, 1997.
|
