China Law Online Database : novexcn.com

You are using Guest Account

Subscribe To This Law Only

Subscribe To All Law Contents

Print This Page

Back




	CIRCULAR ABOUT "INCENTIVE RULES OF EXPORT FOREIGN PROCEEDS ASSESSMENT TRAIL PROCEDURES" EXECUTION

	(Huifa No. 68 [2000] of the State Administration of Foreign Exchange promulgated on May 19, 2000)


SUBJECT : EXPORT; EXECUTION
ISSUING DEPARTMENT : STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 05/19/2000
IMPLEMENT DATE : 05/19/2000
LENGTH : 636 words
TEXT :

Examination and assessment of export receipts of foreign exchange in 1999 in line with Export Foreign Proceeds Assessment Trail Procedures was accomplished at the end of March 2000. We hereby circulate the result of the examination and assessment.

INCENTIVE RULES OF EXPORT FOREIGN PROCEEDS ASSESSMENT TRAIL PROCEDURES (hereinafter the "Detailed Rules") has been jointly issued by the People's Bank of China, Ministry of Foreign Trade and Economic Cooperation (MOFTEC), and State Administration of Taxation in accordance with Provisional Regulations on Examination of Export Receipts of Foreign Exchange. We will reward "1999-honorable enterprises for collection of export receipts" and punish "1999-high-risky enterprises for collection of export receipts" according to the result of examination and assessment, and to the "Detailed Rules". We hereby make notice on relevant issues concerning implementing the "Detailed Rules" as follows:

I. The People's Bank of China, SAFE, MOFTEC, and State Administration of Taxation will stipulate rewarding and punishment measures respectively to "1999-honorable enterprises for collection of export receipts" and "1999-high-risky enterprises for collection of export receipts" in the fields of lending rates, foreign exchange administration, foreign trade development fund, and export tax-refund. Each branch shall coordinate with relevant departments when implement rewarding and punishment measures of foreign exchange administration.

II. "Honorable enterprises for collection of export receipts" are exempted from surrendering bond for repatriation of profits resulting from their overseas investment with the approval of SAFE. The deadline of repatriating profits could be extended with the approval of SAFE.

III. SAFE branch could raise the balance ceiling of the foreign exchange settlement account of Chinese-funded "honorable enterprises for collection of export receipts" from 15 percent to 30 percent of their annual foreign trade volume if they apply to do so. Other key elements of accounts, including the scope of deposits and withdrawals, the method concerning the sale of foreign exchange are completely the same. Balance ceiling the account is fixed in the first quarter of each year according to the foreign trade volume of enterprise in the previous year. When applying to adjust the balance ceiling of their foreign exchange settlement account with SAFE, "honorable enterprises for collection of export receipts" shall submit relevant documents prescribed in Operational Procedures for Maintaining Certain Amount of Foreign Exchange Receipts. SAFE shall fix the balance ceiling of the enterprises' foreign exchange settlement account after verifying submitted documents by comparing their foreign trade volume in the previous year with the dada provided by MOFTEC, and confirm the ceiling by affixing a seal to "the Application Form for Fixing Balance Ceiling of Foreign Exchange Settlement Account". Supervision over foreign exchange settlement accounts of Chinese-funded "honorable enterprises for collection of export receipts" shall be conducted still according to Circular on Permitting Chinese-funded Enterprises to Maintain Certain Amount of Their Foreign Exchange Receipts and Operational Procedures for Maintaining Certain Amount of Foreign Exchange Receipts.

IV. SAFE shall transmit the detailed name list provided by the MOFTEC of large export enterprises whose exports were more than US$200 million in the previous on to relevant SAFE branches. The relevant branches are required to publish the listed enterprises as "honorable enterprises for collection of export receipts" and grant them corresponding reward if the ratio of their export receipts is not lower than 85 percent and the ratio of their surrendered verification forms of export receipt is not lower than 80 percent.

V. MOFTEC and its branches shall suspend its foreign trade right if the enterprise is assessed as "high-risky enterprises for collection of export receipts" for one year or as "risky enterprises for collection of export receipts" for two successive year. Each branch is required to make written notice of the assessment result in this year to "risky enterprises for collection of export receipts".

VI. The assessment result for the year of 1999 is valid from April 1, 2000 through March 31, 2001.