Circular of the State Administration of Foreign Exchange on Promulgating the Administrative Measures for Foreign Exchange Regulation in Bonded Logistic Parks

Circular of the State Administration of Foreign Exchange on Promulgating the Administrative Measures for Foreign Exchange Regulation in Bonded Logistic Parks

Hui Fa [2002] No.74

July 25, 2002

Branches of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, foreign exchange regulation offices, and branches of the SAFE in the cities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

In light of the new situation of foreign exchange regulation in bonded logistic parks, the SAFE has revised the Measures for Foreign Exchange Regulation in Bonded Logistic Parks, which was promulgated on December 18, 1995 and took effect as of January 1, 1996. The revised Measures for Foreign Exchange Regulation in Bonded Logistic Parks are hereby promulgated for implementation.

Article 1 In accordance with the provisions of Measures for Foreign Exchange Regulation in Bonded Logistic Parks, an enterprise in bonded logistic parks, whether it is Chinese-funded or foreign-funded, shall go through formalities of foreign exchange registration and receive Foreign Exchange Registration Certificate in Bonded Logistic Parks. Therefore, as of the day when Measures for Foreign Exchange Regulation in Bonded Logistic Parks are formally put into force, the branches of the SAFE (hereinafter referred to as the SAFE offices) shall no longer issue Foreign Exchange Registration Certificate of Enterprise with Foreign Investment to any enterprise with foreign investment located in the bonded logistic park but shall only issue Foreign Exchange Registration Certificate in Bonded Logistic Parks to such an enterprise.

Article 2 As of the Promulgation of this Circular, the SAFE branches and foreign exchange regulation offices are required to issue new Foreign Exchange Registration Certificates in Bonded Logistic Parks to enterprises in bonded logistic parks, and collect from them the now out-dated Foreign Exchange Registration Certificate in Bonded Logistic Parks and Foreign Exchange Registration Certificate of Enterprise with Foreign Investment in accordance with the provisions of Measures for Foreign Exchange Regulation in Bonded Logistic Parks. The said re-issuance and collection shall be finished before January 1, 2003.

Article 3 During the said re-issuance and collection, both old and new Foreign Exchange Registration Certificates in Bonded Logistic Parks shall be valid. Where an enterprise located in bonded logistic parks cannot acquire the new Foreign Exchange Registration Certificates in Bonded Logistic Parks in time to make foreign exchange payment or collection due to reasons on the SAFE office's side, according to Measures for Foreign Exchange Regulation in Bonded Logistic Parks, the foreign exchange payment or collection may be handled by a bank upon approval of the SAFE office temporarily. As of January 1, 2003, the old Foreign Exchange Registration Certificate in Bonded Logistic Parks and Foreign Exchange Registration Certificate of Enterprise with Foreign Investment shall become invalid without exception.
On receiving this Circular, the SAFE branches and foreign exchange regulation offices are required to transmit it timely to sub-branches and banks under their jurisdiction, administrative offices in bonded logistic parks, and enterprises in bonded logistic parks, give publicity to the Measures and make preparations to ensure timely change of the Foreign Exchange Registration Certificate in Bonded Logistic Parks of the enterprises in bonded logistic parks. Any problem arising in the implementation shall be reported to the General Affairs Division of the State Administration of Foreign Exchange in time.

Attachment:
Measures for Foreign Exchange Regulation in Bonded Logistic Parks

Chapter I General Provisions

Article 1 With a view to improving foreign exchange regulation in bonded logistic parks and facilitating sound development of the national economy, these Measures are formulated in accordance with Administrative Regulations of the People's Republic of China on Foreign Exchange and relevant laws and regulations.

Article 2 Bonded Logistic Parks in these Measures refer to the special areas that are established inside the People's Republic of China (hereinafter referred to as "inside China") upon the approval of the State Council and are under closed supervision conducted by the customs

Article 3 Outside areas in these Measures refer to the areas inside China other than the bonded logistic parks.

Article 4 Entities in the bonded logistic parks in these Measures refer to the administrative organs, enterprises, institutions, and other economic organizations established inside the bonded logistic parks.
The afore-mentioned Enterprises inside the bonded logistic parks refer to both of the Chinese-funded and the foreign-funded enterprises registered in the bonded logistic parks.

Article 5 Institutions responsible for foreign exchange regulation in the bonded logistic parks are the State Administration of Foreign Exchange (SAFE), its branches and sub-branches (hereinafter referred to as the SAFE offices).

Article 6 Foreign exchange receipt and payment and foreign exchange operating activities in the bonded logistic parks shall be handled in accordance with these Measures.

Article 7 Overseas economic transactions of the bonded logistic parks shall be priced and settled in foreign exchange instead of in Renminbi.
Bonded goods flowing between the bonded logistic parks and outside areas shall be priced and settled in foreign exchange instead of in Renminbi. Goods other than bonded ones flowing between the bonded logistic parks and outside areas may be priced and settled either in Renminbi or in foreign exchange. Non-trade transactions such as services shall be priced and settled in Renminbi.
Transactions between enterprises in the same bonded logistic park or between different bonded logistic parks may be priced and settled either in Renminbi or in foreign exchange. Fees as prescribed by administrative organs inside the bonded logistic parks shall be priced and settled in Renminbi. Economic transactions between the bonded logistic parks and other special areas under closed supervision of the customs, such as export processing zones and the Shanghai Diamond Exchange, shall be regarded as transactions between bonded logistic parks.

Article 8 Banks shall abide by these Measures and other relevant regulations on foreign exchange regulation when they open or close foreign exchange accounts, purchasing or selling foreign exchange, and making payment or collection in foreign exchange for enterprise in bonded logistic parks, they shall verify and keep relevant certificates and vouchers for future reference and submit statistic statements and other information to the SAFE offices as required.

Article 9 All foreign exchange revenues earned by entities in the bonded logistic parks shall be repatriated to China timely and shall not be deposited overseas without due approval the of SAFE offices.

Article 10 For economic transactions between overseas enterprises and entities in the bonded logistic parks, the entities in the bonded logistic parks shall go through formalities for statistical report of balance of international payment as required.
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