|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
In order to support enterprises to participate in international economic and technical cooperation and competition, advance the convenience for investment, settle the financing difficulties as encountered by overseas investment enterprises, according to the Measures for the Management of Overseas Guarantees as Provided by Organizations within the Chinese Territory and the Detailed Rules for Implementation thereof (hereinafter referred to as the Measures), the State Administration of Foreign Exchange has decided to further simplify the administrative formalities for a designated foreign exchange bank ( hereinafter referred to as the bank) to provide overseas financial guarantees for a wholly-owned subsidiary enterprise or a share holding enterprise as registered abroad by an organization within the Chinese territory (hereinafter referred to as the overseas investment enterprise). We hereby notify relevant issues as follows: I. The State Administration of Foreign Exchange shall carry out an outstanding administration on the overseas financial guarantees as provided by banks for overseas investment enterprises and, according to such indicators of the relevant banks as the paid-in foreign exchange capital or working capital, the overseas guarantees and contract performance in the previous year, verify the surplus quotas for banks on an annual base. A bank may, within the scope of its quotas, provide overseas financial guarantees for overseas investment enterprises by itself and need not report each transaction to the State Administration of Foreign Exchange or the branch thereof (hereinafter referred to as the foreign exchange bureau) for approval. II. A bank that has the qualification of operating overseas guarantees may apply to the branch or the foreign exchange department of the State Administration of Foreign Exchange (hereinafter referred to as the foreign exchange branch) where it is located for the surplus quotas for overseas guarantee of the current year. Upon the preliminary examination of the foreign exchange branch, it shall be reported to the State Administration of Foreign Exchange for distribution. III. The head office of the bank shall file an application to the foreign exchange branch on behalf of all its banks in a uniform manner. For a foreign bank branch, the principal reporting bank or a branch or sub-branch as authorized by the superior bank within the Chinese territory may file an application on the latter behalf. IV. Where a bank applies to the foreign exchange branch for the surplus quotas for overseas guarantee, it shall submit the following materials: (1) An application report and an Application Form for the Balance of Overseas Financial Guarantees as Provided by A Bank within the Chinese Territory for An Overseas Investment Enterprise as filled out in the uniform format (see Attachment I for the form format); (2) The combined financial statements of the previous year that have been audited by an accounting firm within the Chinese territory, including the balance sheets and the gains and losses statements; (3) The name list of the branches to be authorized; (4) The use of the surplus quotas for overseas guarantee in the previous year and the performance of the contract (except for the first application); and (5) Any other material as required by the foreign exchange branch. V. The surplus quotas for overseas guarantee as verified by the State Administration of Foreign Exchange for a bank shall not exceed the paid-in foreign exchange capital or the combined working capital of the applicant bank. The surplus quotas for overseas guarantee may be directly used by the head office (or the principal reporting bank) of a bank or may be broken down to the branches and sub-branches as authorized by the head office bank (or the principal reporting bank) within the Chinese territory. Where a bank breaks down the surplus quotas for overseas guarantee to its branches and sub-branches within the Chinese territory, the said branches and sub-branches as authorized shall go to the local foreign exchange bureau upon the strength of the documents certifying the authorization and breakdown of surplus quotas as produced by their head office bank (or the principal reporting bank) to handle the formalities for archival filing. VI. The overseas financial guarantees as provided by a bank under the surplus quotas shall meet the relevant provisions of the Measures. The summation of the overseas guarantee balance, foreign exchange guarantee balance within the Chinese territory and the foreign exchange debt balance thereof shall not exceed 20 times of its self-owned foreign exchange capital. The summation of the foreign exchange deposit balance, the foreign exchange guarantee balance (calculated at a rate of 50%) and the foreign exchange investment (purchase of stocks) for an enterprise legal-person shall not exceed 30% of its self-owned foreign exchange capital. VII. An overseas investment enterprise shall meet the following requirements for obtaining the overseas financial guarantees from a bank: (1) An overseas investment enterprise having been legally registered abroad (including a wholly-owned subsidiary enterprise or a share holding enterprise as registered abroad by an organization within the Chinese territory); (2) Having gone through the formalities of foreign exchange registration for overseas investment in the foreign exchange bureau; and (3) Satisfying the specific provisions of the Measures. VIII. Where a bank provides overseas financial guarantees for an overseas investment enterprise, it shall go to the local foreign exchange bureau to go through the formalities for periodical registration of overseas guarantees according to the Measures. IX. Where a bank that has provided overseas financial guarantees for an overseas investment enterprise plans to perform its duty, it shall go to the local foreign exchange bureau to go through the formalities for verification according to the relevant provisions. The performance of a counter-guarantee as provided by the parent company of an overseas investment enterprise within the Chinese territory or by any other counter-guarantor to a bank within the Chinese territory need not be subject to the verification of the foreign exchange bureau. Where a bank performs its duty by using the RMB capital as provided by a counter-guarantor within the Chinese territory, the bank that provides the overseas guarantees shall go through the formalities for verification on duty performance by purchasing foreign exchange upon the strength of the agreement on counter-guarantees and may not conduct any duplicate foreign exchange purchase for a same performance of overseas guarantees. X. A bank shall, according to the provisions of the present Circular, report the relevant information to the foreign exchange bureau, summarize all the transactions of overseas guarantees under the surplus management item within the banking system as well as the full-caliber overseas guarantee data, fill out the Monthly Reporting Form of Overseas Guarantees as Provided by A Bank within the Chinese Territory (see Attachment II for the format) and report them to the foreign exchange bureau within 5 workdays at the beginning of each month. XI. The non-financial overseas guarantees as provided by a bank shall still be subject to the proportional management of assets and debts according to the provisions in force. Where a bank within the Chinese territory provides any overseas financial guarantee to a client other than an overseas investment enterprise, it shall be handled according to the Measures. XII. The foreign exchange bureau shall carry out an examination on the business operations under the overseas guarantee outstanding management item to check out whether or not they comply with the relevant provisions. For the part of overseas guarantee that exceeds the verified surplus quotas, or for any bank that fails to conduct the business operations of overseas guarantees according to the Measures, it shall be investigated and punished according to the Regulation of the People's Republic of China on the Administration of Foreign Exchange and any other relevant provision. XIII. The present Circular shall come into force as of September 1, 2005. All the foreign exchange branches are requested to forward the present Circular to the center sub-branches and foreign-funded banks as soon as they receive the present Circular. All the designated Chinese-funded banks shall, after receiving the present Circular, forward it to their branches and sub-branches under administration as soon as possible. In the meanwhile, all the foreign exchange branches may accept the applications of banks within the jurisdiction for the year 2005 as of the day when this document is received and report them to the State Administration of Foreign Exchange after the preliminary examination. Attachments: omitted. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|