Circular of the State Administration of Foreign Exchange on Issuing the Detailed Rules on the Implementation of the Measures on the Administration of Foreign Exchange of Private Individuals
Circular of the State Administration of Foreign Exchange on Issuing the Detailed Rules on the Implementation of the Measures on the Administration of Foreign Exchange of Private Individuals
Circular of the State Administration of Foreign Exchange on Issuing the Detailed Rules on the Implementation of the Measures on the Administration of Foreign Exchange of Private Individuals
Hui Fa [2007] No. 1
January 5, 2007
The branches and foreign exchange management departments of the State Administration of Foreign Exchange in each province, autonomous region and municipality directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo , each Chinese-funded appointed foreign exchange banks and China UnionPay Co., Ltd.:
For the purpose of implementing the Measures for the Administration of Personal Foreign Exchange (Order No.3 [2006] of the People's Bank of China), the State Administration of Foreign Exchange enacted the Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange (hereinafter referred to as Detailed Rules). We hereby print and distribute these Detailed Rules to you. You shall comply with and implement them earnestly.
Each branch and foreign exchange management department of the State Administration of Foreign Exchange shall forward this Circular to all sub-branches, urban commercial banks, rural commercial banks and foreign-funded banks within their respective jurisdictions once they receive this Circular, provide trainings on business operation to the subordinate sub-branches and banks as soon as possible, and publicize the special telephone numbers for interpreting the related policies. Each Chinese-funded appointed foreign exchange banks should forward this Circular to their subordinate branches. In case any entity faces any problem when implementing this Circular, please feedback to the State Administration of Foreign Exchange in a timely manner.
Appendix: Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange
Chapter I General Provisions
Article 1 Under the Measures for the Administration on Individual Foreign Exchange, the present Detailed Rules are formulated with a view to regulating and facilitating the foreign exchange business operation of banks and personals.
Article 2 The administration of total annual amount shall be adopted for personal settlement and domestic personal purchase of foreign exchange. The total annual amount shall be the value equivalent to USD 50,000 Dollars for each person every year. The State Administration of Foreign Exchange may make adjustment on the total annual amount in light of the position of payment balance.
With regard to the personal settlement and purchase of foreign exchange, in case it is within the total annual amount, it shall be handled at a bank by presenting his/her valid identity certificate; if beyond the total annual amount, those under the current account shall be handled under Articles 10, 11 and 12 of the present Detailed Rules, while those under the capital account shall be handled under the related provisions of the "Administration of the Personal Foreign Exchange under the Capital Account" in the present Detailed Rules .
Article 3 The foreign exchange purchased by an individual may be remitted abroad, deposited into his/her foreign exchange savings account or carried out of the territory of the country under the related provisions.
Article 4 As regard personal purchase or settlement of foreign exchange within the total annual amount, he/she may entrust his/her linear relative to handle on his/her behalf; in respect of a personal purchase, settlement or overseas personal purchase of foreign exchange beyond the total annual amount, he/she may entrust other person to handle upon the strength of the related evidential materials under the provisions in the present Detailed Rules.
Article 5 When carrying foreign currency banknotes into or out of the country, an individual shall conform to the related administrative provisions of the state.
Article 6 Appointed foreign exchange banks (hereinafter referred to as bank) shall check and verify the authenticity of personal foreign exchange business under the provisions of the present Detailed Rules, and may not forge or alter any transaction.
A bank shall, through the personal foreign exchange sale and settlement management information system (hereinafter referred to as personal foreign exchange sale and settlement system), handle the business of personal purchase or settlement of foreign exchange and record the related information in an authentic, accurate and integrated way.
Article 7 The State Administration of Foreign Exchange and branches thereof (hereinafter referred to as foreign exchange departments) shall take charge of collecting statistical data on, monitoring, administrating and examining the personal foreign exchange business.
Chapter II Administration of the Personal Foreign Exchange under the Current Account
Article 8 Personal foreign exchange income and expenditure under the current account may be divided into business foreign exchange income and expenditure and non-business foreign exchange income and expenditure.
Article 9 Personal business foreign exchange income and expenditure under the current account shall be handled under the rules as follows:
1. as regard an personal foreign trade operator, he/she shall handle the purchase, payment, collection and settlement of foreign exchange through his/her foreign exchange settlement account; the declaration of his/her foreign exchange income and expenditure, import-export verification and writing-off and payment balance shall be administered as those of an institution.
Personal foreign trade operator means an individual that conducts foreign trade business activities after fulfilling the industrial and commercial registration or other formalities for business operation and gaining an personal industrial and commercial business license or other certificates for business operation as well as going through the formalities of registration under the related provisions of the competent department of commerce under the State Council and obtaining the right to conduct foreign trade .
2. In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the import business, he/she shall purchase foreign exchange by presenting the agency contract (agreement) on import concluded between it and the agency enterprise, and the purchased foreign exchange shall be directly transferred to the agency enterprise's foreign exchange account under the current account through his/her foreign exchange settlement account.
In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the export business, he/she may handle the collection or settlement of foreign exchange through his/her foreign exchange settlement account.
......
Hui Fa [2007] No. 1
January 5, 2007
The branches and foreign exchange management departments of the State Administration of Foreign Exchange in each province, autonomous region and municipality directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo , each Chinese-funded appointed foreign exchange banks and China UnionPay Co., Ltd.:
For the purpose of implementing the Measures for the Administration of Personal Foreign Exchange (Order No.3 [2006] of the People's Bank of China), the State Administration of Foreign Exchange enacted the Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange (hereinafter referred to as Detailed Rules). We hereby print and distribute these Detailed Rules to you. You shall comply with and implement them earnestly.
Each branch and foreign exchange management department of the State Administration of Foreign Exchange shall forward this Circular to all sub-branches, urban commercial banks, rural commercial banks and foreign-funded banks within their respective jurisdictions once they receive this Circular, provide trainings on business operation to the subordinate sub-branches and banks as soon as possible, and publicize the special telephone numbers for interpreting the related policies. Each Chinese-funded appointed foreign exchange banks should forward this Circular to their subordinate branches. In case any entity faces any problem when implementing this Circular, please feedback to the State Administration of Foreign Exchange in a timely manner.
Appendix: Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange
Chapter I General Provisions
Article 1 Under the Measures for the Administration on Individual Foreign Exchange, the present Detailed Rules are formulated with a view to regulating and facilitating the foreign exchange business operation of banks and personals.
Article 2 The administration of total annual amount shall be adopted for personal settlement and domestic personal purchase of foreign exchange. The total annual amount shall be the value equivalent to USD 50,000 Dollars for each person every year. The State Administration of Foreign Exchange may make adjustment on the total annual amount in light of the position of payment balance.
With regard to the personal settlement and purchase of foreign exchange, in case it is within the total annual amount, it shall be handled at a bank by presenting his/her valid identity certificate; if beyond the total annual amount, those under the current account shall be handled under Articles 10, 11 and 12 of the present Detailed Rules, while those under the capital account shall be handled under the related provisions of the "Administration of the Personal Foreign Exchange under the Capital Account" in the present Detailed Rules .
Article 3 The foreign exchange purchased by an individual may be remitted abroad, deposited into his/her foreign exchange savings account or carried out of the territory of the country under the related provisions.
Article 4 As regard personal purchase or settlement of foreign exchange within the total annual amount, he/she may entrust his/her linear relative to handle on his/her behalf; in respect of a personal purchase, settlement or overseas personal purchase of foreign exchange beyond the total annual amount, he/she may entrust other person to handle upon the strength of the related evidential materials under the provisions in the present Detailed Rules.
Article 5 When carrying foreign currency banknotes into or out of the country, an individual shall conform to the related administrative provisions of the state.
Article 6 Appointed foreign exchange banks (hereinafter referred to as bank) shall check and verify the authenticity of personal foreign exchange business under the provisions of the present Detailed Rules, and may not forge or alter any transaction.
A bank shall, through the personal foreign exchange sale and settlement management information system (hereinafter referred to as personal foreign exchange sale and settlement system), handle the business of personal purchase or settlement of foreign exchange and record the related information in an authentic, accurate and integrated way.
Article 7 The State Administration of Foreign Exchange and branches thereof (hereinafter referred to as foreign exchange departments) shall take charge of collecting statistical data on, monitoring, administrating and examining the personal foreign exchange business.
Chapter II Administration of the Personal Foreign Exchange under the Current Account
Article 8 Personal foreign exchange income and expenditure under the current account may be divided into business foreign exchange income and expenditure and non-business foreign exchange income and expenditure.
Article 9 Personal business foreign exchange income and expenditure under the current account shall be handled under the rules as follows:
1. as regard an personal foreign trade operator, he/she shall handle the purchase, payment, collection and settlement of foreign exchange through his/her foreign exchange settlement account; the declaration of his/her foreign exchange income and expenditure, import-export verification and writing-off and payment balance shall be administered as those of an institution.
Personal foreign trade operator means an individual that conducts foreign trade business activities after fulfilling the industrial and commercial registration or other formalities for business operation and gaining an personal industrial and commercial business license or other certificates for business operation as well as going through the formalities of registration under the related provisions of the competent department of commerce under the State Council and obtaining the right to conduct foreign trade .
2. In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the import business, he/she shall purchase foreign exchange by presenting the agency contract (agreement) on import concluded between it and the agency enterprise, and the purchased foreign exchange shall be directly transferred to the agency enterprise's foreign exchange account under the current account through his/her foreign exchange settlement account.
In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the export business, he/she may handle the collection or settlement of foreign exchange through his/her foreign exchange settlement account.
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