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	CIRCULAR ABOUT PREPAYMENT OF SECURITY DEPOSIT IN RMB ON FOREIGN EXCHANGE PURCHASE FOR SELF-FINANCING OVERSEAS STUDIES

	(Huifa No. 82 [2000] of the State Administration of Foreign Exchange promulgated on July 1, 2000, which shall come into force as of the same day)


SUBJECT : INDIVIDUALS; SELF-FINANCING OVERSEAS STUDIES
ISSUING DEPARTMENT : STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 07/01/2000
IMPLEMENT DATE : 07/01/2000
LENGTH : 498 words
TEXT :

As stipulated in Article 3 of Circular on Distributing Provisional Rules on the Administration of Private Use of Foreign Exchange by Domestic Resident Individuals (Huifa (1998) No. 11), resident individuals are allowed to purchase foreign exchange against certain amount RMB earnest money in the special case that only after prepaying some earnest money can they acquire valid entry visa. We hereby circulate some detailed procedures as follows to facilitate implementation:

I. Only branches of Bank of China (hereinafter the Bank) with the authorization to conduct the domestic resident individuals' exchange business for private purpose can conduct this kind of business.

II. Purchase of and payment in foreign exchange against prepaid RMB earnest money by resident individuals for self-financing study abroad can be proceeded as follows:

(1) Before prepaying RMB earnest money to Bank, domestic resident individuals shall apply with the local SAFE branch or sub-branch (hereinafter the SAFE Branch) where their permanent residencies are by presenting ordinary private passport and foreign exchange earnest money prepayment notice issued by institutions overseas;

(2) Domestic resident individuals shall deposit prepaid RMB earnest money and make purchase of and payment in foreign exchange with Bank by presenting approval document issued by the SAFE Branch and relevant certificates; and

(3) The Bank shall proceed sales of and payment in foreign exchange against prepaid RMB earnest money according to Receipt Practice Of Security Deposit In RMB On Foreign Exchange Purchase For Overseas Studies Of Domestic Citizen (refer to the attachment).

III. The SAFE Branches shall proceed as follows:

(1) After verifying the application documents presented by domestic resident individuals for self-financing study abroad, the SAFE Branch shall write comments on RMB Earnest Money Prepayment Notice to Domestic Resident Individuals for Self-financing Study Abroad (hereinafter the Notice brief);

(2) Each SAFE Branch can design its own form of the Notice. The Notice can be incorporated into relevant Verification Notice for Foreign Exchange Sales; and

(3) The SAFE Branch is authorized to approve foreign exchange purchase up to US$ 50,000 equivalent against prepaid RMB earnest money. Purchase of foreign exchange more than US$ 50,000 shall be submitted to SAFE for approval.

IV. Within the first 15 days of every quarter, the Bank shall report to the SAFE at its same level the data of the previous quarter on prepaid RMB earnest money and foreign exchange purchased against it by domestic resident individuals for self-financing study abroad.

V. This circular shall come into force as of July 1, 2000.

Each SAFE Branch or department is supposed to transmit the Circular to SAFE branches and sub-branches, subsidiaries of BOC under its jurisdiction. BOC headquarter are supposed to transmit it to its subsidiaries authorized to conduct domestic resident individuals' exchange business for private purpose. Please feel free to contact Supervision and Inspection Department of SAFE once you have any problem in the enforcement of the Circular.

Attachment: Circular about distributing "Receipt Practice Of Security Deposit In RMB On Foreign Exchange Purchase For Overseas Studies Of Domestic Citizen" (omitted)