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	OFFICIAL REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE REGARDING PURCHASE OF FOREIGN EXCHANGE IN ADVANCE FOR THE GUARANTY DEPOSITS UNDER LETTERS OF CREDIT OR GUARANTY LETTERS

	(Official Reply No. 73 [2001] of the State Administration of Foreign Exchange promulgated on March 27, 2001)


SUBJECT : LETTERS OF CREDIT OR GUARANTY LETTERS; GUARANTY DEPOSIT
ISSUING DEPARTMENT : STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 03/27/2001
IMPLEMENT DATE : 03/27/2001
LENGTH : 188 words
TEXT :

Regarding "Report on the Relevant Information concerning the Exchange Purchased by Enterprises in Advance" (No. 1 <2001> of Shanghai Branch of the State Administration of Foreign Exchange), we hereby give our reply, upon deliberation, on the issue of the purchase of exchange in advance with the guaranty deposit under letters of credit/guaranty letters as follows:

I. An institution within the territory may, when paying guaranty deposit under a letter of credit/guaranty letter to a designated foreign exchange bank, make the payment from its Renminbi account or foreign exchange account, instead of by purchasing exchange.

II. An institution within the territory shall, when collecting or paying foreign exchange under other items, still comply with the present provisions on foreign exchange.

III. Where an institution within the territory violates this Reply, the State Administration of Foreign Exchange or one of its branches shall impose penalties on it in accordance with the Regulation on Foreign Exchange Control and other relevant provisions.

IV. This Reply shall come into force as of the date when it is received. In case any previous provision is in conflict with this Reply, the latter shall prevail.