Administrative Regulation regarding Foreign Exchange Settlement, Sales and Payment
Administrative Regulation regarding Foreign Exchange Settlement, Sales and Payment
Administrative Regulation regarding Foreign Exchange Settlement, Sales and Payment
Yin Fa [1996] No.210, Order of the People's Bank of China [1996] No. 1
June 20, 1996
Chapter I General Provisions
Article 1 These Provisions are formulated with a view of achieving convertibility of the Renminbi for current account transactions through the introduction of a set of rules governing the settlement, sale of and payment in foreign exchange.
Article 2 Banks involved in foreign exchange business shall comply with these Provisions when conducting businesses related to the settlement and sale of foreign exchange, opening foreign exchange accounts and making external payments within the business scope duly authorized by the People's Bank of China and the State Administration of Foreign Exchange.
Article 3 Domestic entities shall promptly repatriate all foreign exchange from abroad unless otherwise authorized by the government.
Article 4 Domestic entities, resident individuals, foreign establishments in China and foreign nationals shall comply with these Provisions with respect to the settlement and sale of foreign exchange, opening of foreign exchange accounts and making of external payments.
Article 5 When receiving foreign exchange and making external payments in foreign exchange through banks involved in foreign exchange business, domestic entities and resident individuals are obliged to report the balance of payments statistics in accordance with the Measures on Reporting Balance of Payments Statistics and other relevant provisions as well.
Chapter II Settlement, Sale of and Payment in Foreign Exchange for Current Account Transactions
Article 6 Except as provided in Article 7, 8 and 10 of these Provisions, all the following foreign exchange receipts for domestic entities shall be sold to designated foreign exchange banks in full with respect to the coverage and quantity for foreign exchange settlement:
1. Export proceeds for goods in foreign exchange or foreign exchange income generated from entrepot business characterized by an initial payment, subsequent reimbursement and other types of transactions, among which export proceeds in foreign exchange settled under a documentary letter of credit/payment guarantee and documentary collection shall be sold to designated foreign exchange banks upon the presentation of valid commercial documents, and export proceeds for goods in foreign exchange settled by remittance shall be sold to designated foreign exchange banks upon the presentation of the Verification Certificate for Export Proceeds;
2. Foreign exchange earned by successful international competitive bidding for contracts funded by overseas loans;
3. Foreign exchange earned from domestic duty-free shops administered by the customs authorities;
4. Foreign exchange earned by provision of goods or services in connection with transportation (inclusive of all means of transportation), ports (inclusive of airports) postal and telecommunication services (exclusive of international remittances), advertisement, consultation, exhibition, consignment, repairs and maintenance, etc, and other agency services;
5. All types of administrative fees, fines and confiscation in foreign exchange collected by administrative and judicial agencies;
6. Foreign exchange received for the transfer of intangible assets such as land use right, copyright, trademark, patent, non-patent technologies and good will; in case that these intangible assets belong to an individual, the sale of foreign exchange shall be optional;
7. Profits in foreign exchange repatriated by enterprises with direct investment abroad, foreign exchange earnings generated from foreign economic aid programs and other types of foreign exchange income derived from overseas assets;
8. Compensation for claims abroad and refund of security deposit in foreign exchange;
9. Foreign exchange income generated from property rentals and other types of foreign assets;
10. Foreign exchange income from insurance companies for writing insurance policies denominated in foreign currency;
11. Net foreign exchange income from financial institutions duly authorized under the License for Foreign Exchange Business;
12. Foreign exchange from overseas grants, sponsorships and aid programs; and
13. Other types of foreign exchange that shall be sold to designated foreign exchange banks in accordance with the provisions of the State Administration of Exchange Control.
Article 7 Domestic entities (exclusive of enterprises with foreign investment) may apply to the State Administration of Exchange Control or its local branches (hereafter referred to as the SAEC for both) for the permission to open foreign exchange accounts with banks involved in foreign exchange business and shall sell to the banks the following types of foreign exchange in accordance with the relevant provisions:
1. Foreign exchange received in the course of normal business operations by companies undertaking contracts, providing labor, engaging in technical co-operation projects and offering other services abroad;
2. Foreign exchange collected for payments on the part of those businesses that act as an agent for international transactions;
3. Foreign exchange under suspense account, including overseas security deposit for tender bond, performance bond, receipts for later disbursements under entrepot trade; international foreign exchange remittances performed through postal and telecommunication services; advance payments in foreign exchange received by Class, A travel agencies from foreign travel agencies; foreign exchange received by railway carriers for providing insured overseas transportation; foreign exchange security deposit and collateral received by the customs authorities;
4.
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