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	CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE ISSUE OF FURTHER SIMPLIFYING THE FORMALITIES FOR FOREIGN EXCHANGE PAYMENT AND VERIFICATION IN IMPORT TRADE

	(No. 67 [2005] of the State Administration of Foreign Exchange September 15, 2005)


SUBJECT : FOREIGN EXCHANGE; PAYMENT AND VERIFICATION; IMPORT TRADE
ISSUING DEPARTMENT : THE STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 09/15/2005
IMPLEMENT DATE : 10/01/2005
LENGTH : 1,306 words
TEXT :

In order to further perfect the foreign exchange administration of current accounts and promote the trade facilitation, the State Administration of Foreign Exchange (hereinafter referred to as the SAFE) has decided to simplify some formalities for foreign exchange payment and verification in import trade. The Circular on the relevant issues is hereby given as follows:

I. SIMPLIFYING THE WARRANTS ON VERIFICATION OF FOREIGN EXCHANGE PAYMENTS IN IMPORT TRADE

(1) The provisions "a letter of guarantee for the advanced payment shall be offered when an enterprise pays foreign exchange for importing the goods subject to advanced payments" shall be cancelled, and an enterprise shall, upon the strength of a verification form of foreign exchange payments in import trade, import contract, nominal invoices as well as other relevant documents, handle the formalities for foreign exchange payment at the designated foreign exchange bank (hereinafter referred to as the bank).

(2) The provisions "the warrants on the verification of foreign exchange payments in import trade include import licenses, automatic import registration certificates and import bills of lading under the payment upon delivery" shall be cancelled, and an enterprise needs not to offer any of the above-mentioned documents when handling the formalities for foreign exchange payment at the bank.

II. SIMPLIFYING THE ADMINISTRATION OF THE DIRECTORY OF IMPORT ENTITIES MAKING EXTERNAL PAYMENT OF FOREIGN EXCHANGE (HEREINAFTER REFERRED TO AS THE DIRECTORY)

(1) When applying for handling matters relating to the Directory, an enterprise that has opened a current foreign exchange account as examined and approved by the branch of the SAFE (hereinafter referred to as the foreign exchange bureau) needs not to provide a form of archival filing and registration of import and export rights, industrial and commercial business license and certificate of the technical supervision bureau's code, etc. again, and may directly handle it upon the strength of the couplet (the third couplet) of the Document on Approval of Foreign Exchange Businesses under Current Accounts for the enterprise to keep and an application form for the registration in the inventory of import entities.

(2) The provisions "an enterprise whose industrial and commercial business license is only valid for less than one year shall not make registration for entering into the Directory" shall be cancelled.

(3) The provisions "an enterprise that has not operated import businesses for two consecutive years shall be deleted from the Directory" shall be cancelled.

III. CANCELING THE ARCHIVAL FILING ADMINISTRATION OF FOREIGN EXCHANGE PAYMENTS IN IMPORT TRADE IN WHICH THE ENTITY OPERATING CUSTOMS DECLARATION FOR IMPORTED GOODS IS INCONSISTENT WITH THE ENTITY THAT PAYS FOREIGN EXCHANGE, AND SIMPLIFYING THE RELEVANT FORMALITIES FOR FOREIGN EXCHANGE PAYMENT AND VERIFICATION IN IMPORT TRADE

(1) The archival filing administration of foreign exchange payments in import trade in which the entity operating customs declaration for imported goods is inconsistent with the entity that pays foreign exchange shall be cancelled.

An entity operating customs declaration for imported goods may, via the function of online delivery of documents of the China E-port Outward Remittance System, submit the original e-accounts of customs declaration forms for imported goods to the bank to which the foreign exchange is paid; or an enterprise that needs to pay foreign exchange may, upon the strength of the China E-port Enterprise IC Cards, verification form of foreign exchange payments in import trade, customs declaration form on the import of goods, import contract, commercial invoices as well as the agency agreement, go through the formalities for paying foreign exchange directly to the bank, which shall examine the authenticity of the relevant certificates, and check and write off and settle the original e-accounts of customs declaration form on the import of goods.

(2) An enterprise shall, upon the strength of a customs declaration form on the import of goods in which the entity operating customs declaration for imported goods is inconsistent with the entity that pays foreign exchange, handle the verification operations and needs not to provide an import license, automatic registration certificate, tax-free certificate or any other approval document to the foreign exchange bureau.

When handling the verification and cancellation formalities, the foreign exchange bureau shall check the verification form of foreign exchange payments in import trade, import contract, filing form on foreign exchange payments in import trade (if the archival filing is required), customs declaration form on the import of goods as well as agency agreement, and check and write off and settle the original e-accounts of customs declaration form on the import of goods by using Super-financial IC Cards..

IV. RELAXING THE ARCHIVAL FILING ADMINISTRATION OF FOREIGN EXCHANGE PAYMENTS IN IMPORT TRADE FOR THE PAYMENT IN OTHER PLACES

(1) The provisions "no certificate may be issued and no foreign exchange may be paid if an enterprise conducting the payment in other places has no branch, no loan for projects or no current foreign exchange account at the place where the foreign exchange is paid" shall be cancelled.

When handling the issuance of certificates or paying foreign exchange in other places, an enterprise shall, upon the strength of an application letter for archival filing, import contract, agency agreement (it shall be provided in the case of agency by mandate) affixed with its seal, as well as the documents as prescribed by the SAFE under different settlement methods, go through the formalities for archival filing of foreign exchange payments in import trade as classified as the payment in other places at the foreign exchange bureau at the place where an enterprise is registered. The bank at the place where an enterprise pays foreign exchange shall, upon the strength of a registration form of foreign exchange payments in import trade, a verification form of foreign exchange payments in import trade as well as the documents as required by the provisions on the administration of selling and payment of foreign exchanges, conduct the foreign exchange payments in other places. In the case of foreign exchange payments subject to the payment upon delivery, it is necessary to check the authenticity of the customs declaration form for imported goods via the China E-Port Outward Remittance System, and the original e-accounts of the customs declaration form for imported goods shall be checked and written off and settled.

(2) As to the registration forms of foreign exchange payments in import trade that are issued by the local foreign exchange bureau at the locality of an enterprise conducting the payment in other places, the authenticity verification procedures by calls and confirmation procedures by affixing seals by the foreign exchange bureaus at the place where the enterprises pay foreign exchanges shall be cancelled, and an enterprise may go through the formalities for issuing certificates or paying foreign exchanges directly to the bank where the foreign exchange is paid.

V. Those enterprises that have not been listed in the Directory or in the Name list of Import Entities Subject to the Authenticity Examination and Approval of the SAFE shall not be governed by the provisions in Articles 1, 3 and 4 of this Circular.

VI. This Circular shall not be applicable to those special economic areas such as bonded zones. The enterprises within enclosed customs supervision zones such as bonded zones that have obtained the rights to conduct foreign trade shall be governed by this Circular when they handle the formalities for verification of foreign exchange payments in import trade.

VII. This Circular shall be implemented as of October 1, 2005, and in the case of any conflict between any previous provision and this Circular, the latter shall prevail.

Upon receipt of this Circular, each branch shall promptly reissue it to the sub-branches and foreign-funded banks under its jurisdiction. Each designated Chinese-funded foreign exchange bank shall promptly reissue this Circular to its branches and sub-branches upon receipt of it. Any question encountered in the implementation of this Circular shall be promptly fed back to the Current Account Administrative Department of the SAFE.