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With a view to accommodating to the requirements of our country's restructuring of economic system and opening to the outside world, facilitating the personnel of the enterprises and extra-budgetary entities to carry out various overseas business activities (hereinafter referred to as overseas business travel), regulating the control of foreign exchange over individuals, this Circular is hereby given as follows on relevant issues concerning the use of foreign exchange for overseas business travel by enterprises and extra-budgetary entities: I. The "enterprises" as referred to in this Circular are state-owned enterprises, foreign-invested enterprises, private enterprises and other types of different ownership; and the "extra-budgetary entities" refers to public institutions and social organizations which are excluded from the financial budget administration. II. The "overseas business travel" mentioned in this Circular refers to an inspection, visit, study, economic and trade negotiation, exhibition, training, research and any other overseas business activity as conducted by the personnel of enterprises and extra-budgetary entities. III. The "personnel identification" referred to in this Circular includes resident identification and non-resident identification. The former refers to a certificate such as an identification card or residence booklet that can prove the status of a resident, while the latter refers to the passport of a non-resident or a certificate that shows that a resident has settled aboard or obtained the right of permanent residence. IV. The foreign exchange usages for overseas business travel of the personnel of enterprises and extra-budgetary entities shall include two parts: overseas travel expenses and personal pocket money: the former mainly includes the expenses for accommodation, boarding, traffic, translation, communication and other overseas business travel expenses under current items, while the latter refers to those for personal expenditure, the foreign exchange of which are purchased by the overseas business travel personnel with their own renminbi. V. An enterprise or extra-budgetary entity shall abide by the following provisions in handling the formalities on foreign exchange usages for overseas business travel: (i) When an enterprise or extra-budgetary entity purchases foreign exchange with renminbi for travel expenses arising from the overseas business travel, anyone traveler is entitled to purchase US$3,000 or the equivalent for each overseas business trip of 30 days or less; and US$5,000 or the equivalent for trips exceeding 30 days. In particular, the state-owned enterprises' purchasing foreign exchange for the accommodation, boarding, overheads and pocket money incurred abroad shall be implemented pursuant to the standards as provided for in the Standards and Measures for the Administration of the Expenses of Personnel Going Abroad Temporarily (No.73 [2001] of the Ministry of Finance) which is jointly issued by the Ministry of Finance and the Ministry of Foreign Affairs; the expenses for traffic, translation and communication and other expenses may, according to the enterprise's budget, be reasonably arranged after deducting the expenses for accommodation, boarding, overheads and pocket money within the foresaid guiding quota. If an overseas travel is comparatively long and the foreign exchange needed exceed the foresaid guiding quota, the purchase of foreign exchange shall be effected in a bank upon the strength of a foreign exchange bureau's approval document after it examines and approves the authenticity thereof; (ii) In case an enterprise or extra-budgetary entity plans to use its own foreign exchange to fund the overseas business travel, it shall prepare a reasonable budget for the expenses incurred therefrom, and recover the expenses incurred overseas from its own foreign exchange account for recurrent items; (iii) When a person in the enterprises and extra-budgetary entities purchases foreign exchange for overseas business travel, he may, with his passport, visa and personal identification, purchase an additional US$400 or the equivalent for overseas personal pocket money at a time with his own renminbi; (iv)The travel expenses and personal pocket money, incurred from the overseas training and further studies by anyone in the enterprises and extra-budgetary entities, shall be handled in accordance with the foresaid standards. The foreign exchange for schooling or training expenses may be purchased or paid according to relevant contracts, agreements or rules about the control of non-trade foreign exchange. Where a training contract or agreement doesn't clearly write down whether or not the training expenses shall include the living expenses, it may be implemented pursuant to relevant rules of the State Administration of Foreign Experts Affairs on the standards for the training and living expenses of those going abroad temporarily upon the application filed by the entity using foreign exchange. VI. An enterprise or extra-budgetary entity may handle the formalities of using foreign exchange prior to the overseas travel or within two months after the return from abroad. (i) An enterprise or extra-budgetary entity shall, according to the following prescriptions, handle the formalities of using foreign exchange prior to the overseas travel: 1. An enterprise or extra-budgetary entity that purchases foreign exchange so as to pay for the expenses incurred from the travel, the purchasing amount shall be within the guiding quota and anyone in the said enterprise or extra-budgetary entity shall make the purchase in a bank upon the strength of his own identification certificate, passport with effective visa and the Budget Form of Using Foreign Exchange for Overseas Business Travel by Enterprises and Extra-budgetary Entities (see Attachment I, hereinafter referred to as the Budget Form) affixed with the seal of its entity (or the entity' financial seal or the enterprise' reserved seal); the amount exceeding the said guiding quota shall be purchased in a bank upon the strength of an approval document of the foreign exchange bureau upon its examination of the said materials' authenticity; 2. An enterprise or extra-budgetary entity that uses its own foreign exchange to fund its overseas business travel, the relevant personnel shall seriously fill in the Budget Form and go through the formalities of using foreign exchange in a bank upon the strength of such certificates as the Budget Form, passport, visa and identification; 3. For anyone fail to obtain a passport and visa at the time of purchasing or using foreign exchange, it shall not, in principle, be granted with foreign exchange. Where the said visa can't be provided due to objective reasons, it shall be handled upon the strength of a relevant certificate (see Attachment II for specific format) issued by his entity upon the approval of the foreign exchange bureau, and the said proof shall be simultaneously kept in the archival files of the bank; 4. For a trip to those countries and regions that implement the system of visa upon arrival or visa free to travelers from our country, an enterprise or extra-budgetary entity shall, pursuant to Paragraph 3 of this Article, handle it upon the strength of a certificate produced by his entity; 5. The formalities of using foreign exchange for personal pocket money for overseas business travel shall be handled together with the travel expenses thereof. (ii) An enterprise or extra-budgetary entity shall, according to the following prescriptions, go through the formalities of using foreign exchange within two months after return from abroad: 1. An enterprise or extra-budgetary entity that pays the expenses incurred from overseas business travel by a domestic bank card of foreign currency, all expenses actually incurred therefrom may, in accordance with the Circular of the State Administration of Foreign Exchange on the Regulation of Foreign Currency Bank Cards (No. 66[2004] of the State Administration of Foreign Exchange), be paid through overdraft formalities in a bank upon his return from abroad; 2. In case any individual of the enterprises and extra-budgetary entities pays in advance the expenses for overseas business travel, the said expenses that shall be undertaken by its entity can be remitted to his personnel foreign exchange account from the entity' foreign exchange account for recurrent items or from the purchased foreign exchange upon the strength of the Budget Form that is filled afterwards by the entity, but no foreign cash may be paid to an individual. VII. After anyone of the enterprises and extra-budgetary entities has purchased foreign exchange for the overseas business travel each time, the purchased foreign exchange may be remitted overseas, or be taken overseas by means of draft, travel check or credit card, etc.. For anyone going abroad on business with foreign cash, it shall be handled according to the Notice of the State Administration of Foreign Exchange and the General Administration of Customs on Printing and Distributing the Interim Measures for the Administration of Carrying Foreign Cash by Persons Entering or Exiting the Territory (No. 102 [2003] of the State Administration of Foreign Exchange). VIII. If an enterprise or extra-budgetary entity needs to use foreign exchange for overseas business travel, the formalities of using foreign exchange may be separately handled by the individual persons going abroad on business themselves, or by entrusting a member in the group or team or by an agent other than the members in the group or team. If it is uniformly handled by a member in the group or team, all members' passports with effective visa, identification certificates and other certificates as required by the said Articles shall be provided to the foreign exchange bureau or the bank; if it is handled by an agent other than the members in the group or team, the agent's identification shall be provided in addition. For anyone of the enterprises and extra-budgetary entities going to Hongkong or Macao without a passport or his effective visa, the pass to Hongkong or Macao and an effective certificate with comments issued by a competent department shall be provided. IX. When handling the use of foreign exchange for overseas business travel by the enterprises and extra-budgetary entities, a bank shall, within the guiding quota as prescribed by the foreign exchange bureau, seriously examine the Budget Forms, identification certificates, passports and visa as submitted by the enterprises and extra-budgetary entities, and provide foreign exchange pursuant to the actual number of persons going abroad and the actual needs of the enterprises and extra-budgetary entities, and affix the seal of "foreign exchange paid" on the passport of each person going abroad and indicate the date of selling or paying foreign exchange after the said businesses are handled. A foreign exchange bureau or bank shall keep the photocopies of certificates like the passports, visa, identifications and Budget Forms for reference for five years after it handles the foreign exchange used for overseas business travel by the enterprises and extra-budgetary entities. X. A foreign exchange bureau shall strengthen the guidance and inspection of individual foreign exchange sales as handled by the banks, promote the banks to standardize the businesses of providing foreign exchange to the enterprises and extra-budgetary entities, timely correct the violations, if any, in the process of providing foreign exchange for overseas business travels by enterprises and extra-budgetary entities, and impose punishment on offenders pursuant to the Regulation of the People's Republic of China on Foreign Exchange Control and other relevant provisions. XI. The use of foreign exchange for overseas expenses incurred from the advertises, exhibitions, exhibition registrations and other purposes under non-trade items shall be subject to relevant provisions for the administration of the sale and payment of exchange for non-trade purposes rather than this Circular. XII. This Circular shall come into force as of December 15, 2004, and in the case of any conflict between any previous provision with the present Circular, the latter shall prevail. After receiving this Circular, each branch shall promptly reissue it to the sub-branches and foreign-funded banks under its jurisdiction. Each Chinese-funded bank designated for foreign exchange businesses shall promptly reissue the 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 State Administration of Foreign Exchange. Attachments: omitted. |
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