Administrative Measures for Individual Foreign Exchange
Administrative Measures for Individual Foreign Exchange
Administrative Measures for Individual Foreign Exchange
Order of PBOC [2006] No.3
December 25, 2006
Administrative Measures for Individual Foreign Exchange (hereinafter referred to as the Measures) have been reviewed and passed on the 27th Governor Office Conference on November 30, 2006 and are promulgated. The Measures will come into effect as of February 1, 2007.
Governor Zhou Xiaochuan
Attachment:Administrative Measures for Individual Foreign Exchange
Chapter I General Principles
Article 1 The Measures are formulated to facilitate individuals to collect and make payment in foreign exchange, simplify business procedures, and regulate foreign exchange management in accordance with the Administrative Regulations of the People's Republic of China on Foreign Exchange and the Regulations on Settlement, Sale and Payment in Foreign Exchange.
Article 2 Individual foreign exchange businesses can be classified into domestic and overseas individual foreign exchange businesses as per transactor, and current accounts and capital accounts as per transaction property. Administration of individual foreign exchange businesses shall be conducted in conformity with the classifications.
Article 3 Individual foreign exchange business under current accounts shall be managed in conformity with convertible principle while those under capital accounts shall be managed in conformity with convertible course.
Article 4 The State Administration of Foreign Exchange and its local offices (hereinafter called foreign exchange administration) supervise and manage the domestic and international foreign exchange business of individuals in accordance with the Measures.
Article 5 Individuals shall follow the Measures in handling relevant foreign exchange business. Banks shall, in accordance with the Measures, handle foreign exchange payment and collection, exchange settlement and opening of foreign exchange accounts for individuals, and review the authenticity of identification certificate and relevant evidence submitted by individuals. Remittance institutions and foreign currency exchange institutions (including exchange agencies) shall handle individual foreign exchange business for individuals in conformity with the Measures.
Article 6 Banks shall handle foreign exchange purchase and settlement business for individuals with designated management information system, input relevant data truthfully and accurately and keep relevant data of the said businesses for at least five years for further reference.
Article 7 Banks and individuals shall follow the regulations of the Measures in handling individual foreign exchange business and shall not evade quota supervision by dividing the sum or evade authenticity management by using fraudulent bills or vouchers.
Article 8 Individuals shall go through the declaration procedures for international income and expense statistics for cross-border incomes and expenses in conformity with the relevant regulations of international incomes and expense declaration.
Article 9 Annual quota management shall be implemented for individual settlement of exchange and individual foreign exchange purchase within the territory of the People's Republic of China. For those within the annual quota, individuals may conduct their business with the bank with valid identification certificate. For those exceeding the annual quota, individuals may operate through businesses under current accounts with the banks by providing valid identification certificate and relevant evidence of transaction volume and business under capital accounts shall be handled in conformity with relevant provisions of Chapter III.
Chapter II Administration of individual foreign exchange under current accounts
Article 10 As for the income and expense in foreign exchange of individual foreign trade operators engaged in import and export of goods, after registration for a foreign trade operation license with commercial department, the said income and expense shall be managed in conformity with the provisions for institutional foreign exchange income and expense.
Article 11 Upon completion of the registration with the administration of industry and commerce or other licensing procedures, individuals may, by means of relevant bills and certificates, entrust a competent foreign trade enterprise with foreign trade license to handle foreign exchange capital collection, payment, transfer and settlement under such accounts as import and export, tourist shopping and frontier small-sum transactions.
Article 12 Where individuals within the territory of the People's Republic of China remit foreign exchange outside the territory for expenses of current accounts, given one sum or a daily total under the stipulated sum, the said individuals may remit with the bank by submitting valid identification certificate; where a single sum or a daily total exceeds the limitation, the individuals may remit with the bank by presenting valid identification certificate and relevant evidence of the transaction volume.
Article 13 Overseas individuals who obtain legal income in RMB under current accounts within the territory of the PRC may purchase foreign exchange and remit the purchased foreign exchanges by presenting valid identification certificate and relevant evidence with the bank.
Article 14 For foreign exchange previously remitted from outside China and unused by overseas individuals, the said individuals may remit the said foreign exchange back with the bank by presenting valid identification certificate.
Article 15 When exchanging formerly exchanged RMB into cash in foreign currency, overseas individuals may exchange small sums of RMB with banks or foreign currency exchange agencies by presenting valid identification certificate; in case of exceeding the quota, the individuals may exchange the RMB by using the original exchange memo at the bank.
Chapter III Administration of individual foreign exchange under capital accounts
Article 16 Where direct investment made by domestic individuals into overseas market meets relevant regulations, the individuals may purchase foreign currency with approval from a competent foreign exchange administration agency or remit proprietary foreign exchange and conduct overseas investment foreign exchange registration.
Article 17 When domestic individuals purchase B Shares or engage in investment of overseas equity, investment with fixed income and other financial investment approved by relevant authorities, the individuals shall follow relevant regulations to handle investment via domestic financial institutions with corresponding business licenses.
Article 18 Domestic individuals may purchase foreign currency or pay with proprietary foreign currency when making payment for life insurance premiums to domestic insurance agencies within the territory of the PRC.
Article 19 Legal incomes under capital accounts of domestic individuals in the overseas market may be settled after approval from a competent foreign exchange administration agency.
Article 20 Domestic individuals shall follow relevant regulations and obtain approval from the foreign exchange administration agency prior to purchasing or making payment in foreign currency in case of outbound donation and asset transfer.
Article 21 Domestic individuals shall follow relevant regulations and go through relevant registration procedures of the foreign exchange administration when offering loans, borrowing foreign currency, offering foreign guarantees and directly engaging in transactions of commodities futures and financial derivatives in overseas market.
Article 22 Overseas individuals shall accord with principle of personal use when buying commercial houses within the territory of the PRC.
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