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




	REGISTRATION OF FOREIGN DEBTS IMPLEMENTATION RULES

	(Promulgated by the State Administration of Foreign Exchange Control on November 10, 1989 and come into force as of the same day)


SUBJECT : REGISTRATION OF FOREIGN DEBTS
ISSUING DEPARTMENT : STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 11/10/1989
IMPLEMENT DATE : 11/10/1989
LENGTH : 1,813 words
TEXT :

Article 1. With a view to implementing the "Interim Regulations on Statistics and Monitoring of Foreign Debts" (hereinafter referred to regulations), the details are enacted.

Article 2. Foreign debts denote all the debts borrowed directly from abroad and carried with the contractual obligation of payment in foreign currency. They include:

(1) Loans by international financial organizations: denoting the loans by IMF, the World Bank, ADB, UN Agricultural Development Foundation and other international or regional financial organizations;

(2) Loans by foreign governments: denoting official aid loans provided by foreign governments;

(3) Loans by foreign banks and non-bank financial organs: denoting banks, non-bank financial organs and banking groups outside China's territory;

(4) Buyer credit: denoting loans provided by foreign banks that issue export credits to China's import departments or banks for purchase of equipment of the exporter nation;

(5) Loans by foreign enterprises: denoting the loans by non-financial organs abroad;

(6) Floating of foreign currency bonds: denoting the bonds with the face value of foreign currency floated at the money market abroad by domestic organs;

(7) International financial leasing: denoting the leasing of a capital-raising nature provided by leasing organs abroad to domestic organs;

(8) Delayed payment: denoting the understanding that the importer enterprise pays the foreign exporter three months after the entry into the territory of the goods provided by the latter to the former;

(9) Debts repaid directly with ready foreign currency in compensatory trade; denoting the debts that have to be repaid in ready foreign currency stipulated in compensatory trade contracts, or that have to be repaid in ready foreign currency instead of in goods upon approval. This includes the debts compensated with foreign exchange earnings from exports; and

(10) Other forms of foreign debts include:

1. Foreign currency deposits by foreign organs or individuals at domestic financial organs; and
2. Loans by domestic enterprises (including foreign funded ventures) from foreign capital in China or Sino-foreign joint banking ventures.

Besides, the following situations are regarded as foreign debts:

1. The debts that have been transferred home by various means by organs that are registered outside China's territory and have to be repaid by domestic organs;
2. The foreign debts owed by Chinese organ stationed abroad that are not registered outside China's territory;
3. Loans by foreign-funded ventures in the name of foreign partner for capital or equipment input outside of enterprise investment and that have to be repaid by the enterprise under contracts between the foreign partner and the enterprise in question or under other law-binding documents;
4. The debts that have a guaranty of the foreign partner and have to be repaid as an obligation by the Chinese partner in reality;
5. The debts owed by wholly foreign-funded ventures to their parent companies.

Article 3. The State Administration of Exchange Control (SAEC) and its branches are the foreign debt registration and control organs (hereinafter referred to registration organs). SAEC is responsible for the registration of foreign debt of the ministries and commissions under the State Council, companies, the headquarters of the banks and non-bank financial organs in Beijing; its local branches are held responsible for registration of foreign debts of local government; financial organs, enterprises and offices of central departments stationed in the locality and local headquarters of financial organs.

The exchange control administration of the locality is responsible for the registration of the foreign loans of the Chinese organs sent abroad that are not registered outside China's territory.

Article 4. Registration of foreign debts is divided into registration by each deal and regular registration.

The foreign debts for regular registration denote: foreign debts by domestic banks and non-bank financial organs, foreign government loans the Ministry of Finance, the Ministry of Economic Relations and Trade, the chinese People's Bank, the Ministry of Agriculture and the Bank of China are held responsible for and loans by international financial organs.

The foreign debts for registration by each deal denote those owed by other domestic departments, enterprises (including foreign-funded ventures) than the units slated for regular registration.

For the foreign loans borrowed through financial organs entrusted by enterprises or institutions, the debtor specified in the loan contract shall handle the procedures of registration.

Article 5. The procedures of regular registration are:

(1) The borrower unit goes, in 15 days as of the signing of the contract on the first loan, to the local exchange control organ to register and get the card for regular foreign debt registration (hereinafter referred to registration card);

(2) When changes occur in the newly signed loan contract or debts in withdrawal or payments, the borrower unit shall fill in the "Foreign Debt Contract Information Form" and "Foreign Debt Change Feedback Form" (hereinafter referred to feedback form) separately on a month-by-month basis, and report to the registration organ in the last five days of each month;

(3) When the borrower unit needs to open a foreign currency account, it shall go, with the registration card and the document of approval for opening a bank account by the registration organ, to the designated opening bank (hereinafter referred to opening bank) to establish a foreign debt ready foreign currency special account (hereinafter referred to special account) and send the note of acknowledgment to the registration organ the next day.

Article 6. The procedures for registration by each deal are:

(1) The borrower unit goes, in 15 days as of the signing of the loan contract, to the registration organ to have foreign debts registered with a copy of the loan contract and document of endorsement for foreign borrowing (excluding foreign funded ventures) and get the card for registration by each deal;

(2) When the loan is transferred home, the borrower unit shall go, with the notice of remittance and the registration card, to the opening bank to establish a foreign debt special account and go through the procedures for entry into the account;

(3) When the debts are due and shall be repaid with interest, the borrower unit shall, with the registration card and the notice of payback with interest, go to the registration organ in advance to get the document of endorsement for payback with interest and, with the latter document and registration card, go to the opening bank to go through the procedures for payback with interest from the foreign debt special account;

(4) After going through the procedures for receipt, payment and opening an account, the borrower unit shall, based on the receipt and payment certificates by the opening bank, fill in the feedback form and send it together with a Xeroxed copy of the deposit certificate to the registration organ the next day;

(5) The unit that borrows spot exchange not transferred from abroad and calls for remittance abroad of the loan with interest - the non-transferred home type of debt- shall fill in the feedback form after the actualization of the debt and send the Xeroxed copy of the feedback form to the registration organ the next day. When the debts are due and shall be repaid with interest, it shall, with the document of endorsement by the registration organ, go to the opening bank to open a "special foreign currency account for payback of foreign debt with interest" (hereinafter referred to special payback account) to go through the procedures for remittance abroad of the borrowed money with interest;

(6) The units that deposit loans abroad upon approval by SAEC and its branches shall report monthly changes of deposits through the feedback form to the original registration organ;

(7) The domestic units that borrow money from foreign funded banks or Sino-foreign joint banking ventures in china do not need to establish another account, but, the borrower unit must go through the procedures for registration and dispatch the feedback form in accordance with relevant regulations;

(8) If the borrower unit that gets its registration card in its locality has to go through the procedures for opening an account and payback with interest in a bank in another locality, it can go, with the registration card issued by the registration organ of the original locality, to the registration organ of another locality to go through the formalities for endorsement of payback with interest, and the opening bank in another locality shall send the xeroxed copy of payment to the original registration organ three days after the clearance of the formalities.

Article 7. After the debts recorded on the registration card are finally cleared, the opening bank shall immediately cancel its foreign debt special account for payback with interest. The borrower unit shall send its registration card within 15 days to the registration organ that has issued the card and has it cancelled.

Article 8. The opening bank shall have the following conditions:

(1) The domestic banks that are approved to operate in foreign exchange; and

(2) Ability to help registration organs do a goods job of supervision and monitoring over foreign debts.

SAEC and its branches designate the opening banks in line with business needs.

Article 9. The opening banks shall fulfill the following duties;

(1) Supervise over the use of books. They shall see to it that: the foreign funds entered into the foreign debt special account and the special account for payback with interest are confined to the purposes of use stated on the registration card; the foreign funds transferred or deposited from other accounts are limited to covering as payment of the loan the equipment, labor, payback with interest and other uses approved by the registration organ;

(2) Handle the procedures for transfer and payment of debts with the registration card and documents of approval and, after the procedures are cleared, send the receipt and payment certificates to the registration organ the next day required; and

(3) See to it that all foreign debts registered by each deal go through the foreign debt special account and the special account for payback with interest when they are transferred home and repaid with interest.

Article 10. For violations of the rules hereof and any of the following behaviors, the local exchange control organ can, according to the seriousness of the case, impose on the litigant a fine of no more than 3% of the RMB equivalent of the foreign debts involved:

(1) Purposefully bypass or delay registration of foreign debts;

(2) Refuse to send the feedback form to the exchange control organ, hide information or give false information in the feedback form or delay sending the form twice;

(3) Forge and alter the registration card; or

(4) Establish with our authorization or retain the foreign debt special account and the special account for payback with interest and the foreign debts are repaid not through the above two accounts. For these cases both the borrower and the opening bank are fined.

Article 11. The right for interpretation of the details hereof resides in the
SAEC.

Article 12. The rules hereof come into force as of the date of promulgation.