Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of SAFE on Printing and Distributing the Operation Directions (for Trial Implementation) of the Interim Measures for Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad

Hui Fa [2004] No.118

December 9, 2004

The branches and foreign exchange offices of the State Administration of Foreign Exchange of all provinces, autonomous regions, and municipalities directly under the Central Government, and the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

The Interim Measures for the Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad (hereinafter referred to as the Measures) has come into force as of the date of December 1, 2004. With a view to ensuring the implementation of this policy, specifying relevant operation procedures, and making formalities convenient for applicants, in accordance with the relevant provisions, the State Administration of Foreign Exchange formulates the Operation Directions (for Trial Implementation) of the Interim Measures for the Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad, please implement it accordingly.

Attachment:The Operation Directions (for Trial Implementation) of the Interim Measures for the Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad htm/e03848.htm

Attachment:

The Operation Directions (for Trial Implementation) of the Interim Measures for the Administration of Sales and Payments of Exchange in Transferring Individual Property Abroad

 　　1.Operation Procedures

　　(1) Procedures for the application of emigration transfer, inheritance transfer, and for the purchase of exchange and outward remittance for the first time

　　(i) the applicant files an application

　　　　　　　　　　↓

　　　　　　　　　　　　　　　　　　　　Amount applied beyond the equivalent

　　 (ii) Examination of local forex authorities-----------------------------------------------------------------→ (iii) examination and approval of SAFE

　　　　　　　　　　　　　│  ↑  issuance of approval document to local forex authorities after approval  ↓

　　　　　　　　　　　　　│  ↑←----------------------------------------------------------------------------------------------↓

　　　　　　　　　　　　　↓--------------------------------------------------------------------→↓

　　　　　　　　　　　　│

　　　　　　　　　　　　│

　　　　　　　　　　　　↓

　　(vi) The applicant goes through the purchase of exchange and outward remittances formalities at the designated foreign exchange bank on the basis of the approval document

　　(2) The operation procedures for second and afterwards exchange purchase and outward remittance of emigration transfer

　　(vii)the applicant files application

　　　　　　　　　　　│

　　　　　　　　　　　↓

　　(viii)examination and approval of local foreign exchange authorities

　　　　　　　　　　　│

　　　　　　　　　　　↓

　　(ix) Issues the exchange purchase, outward remittance approval document to the applicant

　　　　　　　　　　　│

　　　　　　　　　　　↓

　　(x)The applicant goes through the purchasing and remittance procedures in the designated foreign exchange bank on the basis of the approval document of the foreign exchange authorities

　　2. The applicant qualification

　　(1) Definition (Article 2 of the Measures)
　　"Emigration transfer" refers to the activity of a natural person who emigrates abroad and has permanent residence thereof or who goes to Hong Kong, Macau SAR and has permanent residence thereof or who goes to Taiwan region from the mainland and resides there realizes the legal property owned by him within the territory before he (she) gets an emigration status and purchases exchange in designated foreign exchange bank and remits outward the exchange.
　　"Inheritance transfer" refers to the activity of a foreign citizen or a permanent resident of Hong Kong, Macau SAR or Taiwan region who realizes the property inherited within the territory, purchases exchange in designated foreign exchange bank and remits outward the exchange.
　　(2) The qualification of the applicant for emigration transfer
　　i. A natural person emigrates from Chinese mainland to a foreign country and has permanent residence in the country of residence or has the citizenship of the country of residence;
　　ii. A natural person goes to Hong Kong or Macau SAR from the mainland and has the permanent residence of the SAR;
　　iii. A natural person goes to and resides in Taiwan region from Chinese mainland.
　　(3) The qualification of applicant for inheritance transfer
　　i. Foreign citizen;
　　ii. Permanent resident of Hong Kong, Macau SAR;
　　iii. Resident in Taiwan region.
　　3. Identity documents of the applicant
　　(1) The identity documents of the applicant for emigration transfer (paragraph 4 of article 8 of the Measures)
　　i. the applicant who is a Chinese citizen and has foreign permanent residence shall provide:
　　(i) Valid passport of the People's Republic of China or other valid identity certificate such as the Alien Certificate issued by the country of residence;
　　(ii) The abroad residence certificate of the applicant issued (authenticated) by China's embassy abroad;
　　(iii) The Chinese resident registration cancellation certificate issued by public security authorities.
　　ii. The applicant who has foreign citizenship shall provide:
　　(i) The ID card of the country of residence of the applicant or other valid identity certificate (for example, passport);
　　(ii) The abroad residence certificate of the applicant authenticated by China's embassy abroad;
　　(iii) The Chinese resident registration cancellation certificate issued by public security authorities.
　　iii. The applicant who is the resident of Hong Kong, Macau SAR shall provide:
　　(i) (Permanent) resident ID Card of Hong Kong, Macau SAR or other valid identity certificate;
　　(ii) Home-visiting certificate or the passport of SAR;
　　(iii) The inland resident registration cancellation certificate issued by public security authorities.
　　iv. The applicant who is a resident in Taiwan region shall provide:
　　(i) The resident ID Card of Taiwan region or other valid identity certificate for residing in Taiwan;
　　(ii) The laissez-passer of mainland resident commuting from mainland to Taiwan or other entry-exit certificate;
　　(iii) The mainland resident registration cancellation certificate issued by pubic security authorities.
　　(2) The identity documents of the applicant for inheritance transfer (paragraph 3 of article 9 of the Measure)
　　i. The applicant who is a foreign citizen shall provide:
　　(i) The foreign passport or other certificate document held by the applicant that can testify his nationality;
　　(ii) The resident ID card of the country of residence of the applicant or other valid identity certificate;
　　(iii) The residence certification of the applicant for that country authenticated by China's embassy abroad;
　　ii. The applicant who is the resident of Hong Kong, Macau SAR shall provide:
　　(i) (Permanent) Residence Card of Hong Kong, Macau SAR or other valid identity certificate;
　　(ii) Home-visiting certificate or the passport of SAR;
　　iii. The applicant who is a resident in Taiwan region shall provide:
　　(i) The resident ID Card of Taiwan region or other valid identity certificate for residing in Taiwan;
　　(ii) The laissez-passer of mainland resident commuting from mainland to Taiwan or other entry-exit certificate;
　　4. Related applying material
　　(1) The applying material for emigration transfer (Article 8 of the Measure, operation procedure 1)
　　The applicant shall submit application material to the foreign exchange authorities subject to following format and contents:
　　i. Written application. Including: Basic information introduction of the applicant, the reason to the application for emigration transfer, the property or income source and a detailed account of the realization, etc.;
　　ii. The Information Table of the Applicant for Emigration Property Transfer Abroad with the signature of the applicant (see attached table1);
　　iii. The Application Table for Exchange Business in Transferring Abroad Individual Property with the signature of the applicant or his agent (see attached table 2)
　　iv. The identity document of the applicant (to provide in accordance with Article 3 of this Directions)
　　v. The certificate of income source and other property rights certificates;
　　The certificate of income source and other property rights certificates referred to in this paragraph include:
　　(i) The income source certificate shall be provided with respect to the individual salary and rewards (including salary and stipend, income from author's remuneration, income from remuneration for personal service).
　　(ii) With respect to the business income (including income derived from production and business operation and income from contracted or leased operation of enterprises and institutions by private owner, individual shareholder of enterprises, individual industrial and commercial households), the declaration table, equity certificate or contracting, leasing contract or agreement and other material attesting the income source such as financial statements of enterprises, the distribution decisions of the director board of enterprises shall be provided.
　　(iii) With respect to capital income and the realization (including income derived from interest, dividend, bonus, property leasing, property transfer and franchising), the deposit certificate, the record in opening stock or bond account and the transaction thereof, the contract or agreement to property leasing, transfer, franchising, the property right certificate of house, the real estate sale & purchase agreement or the dismantle and removal compensation agreement shall be provided.
　　(iv) With respect to contingent income (including legal income from welfare lottery, sport lottery, etc) and other property and income, the proof of actual transaction record shall be provided.
　　vi. Relevant tax documents or tax payment receipts shall be submitted in accordance with relevant provisions of the State Administration of Taxation.
　　vii. Agency authorization agreement and the identity documents of the agent shall be provided if the formalities are handled by authorized agent.
　　The identity document of the agent referred to in this paragraph is the ID card or other valid identity document if the agent is a resident within the territory; or if the agent is a foreign citizen or a Chinese citizen who resides abroad, the identity document of the agent authenticated or issued by abroad Chinese embassy is required to be submitted.
　　The property rights document mentioned above such as the property right certificate of house, the real estate sale & purchase agreement or the dismantle and removal compensation agreement, the contract or agreement to contract, lease property, property transfer contract or agreement, franchising contract or agreement shall be notarized and the authorization agreement and the identity document of the agent shall be notarized.
　　(2) The applying material for emigration transfer (Article 9 of the Measure, operation procedure 1)
　　i. Written application. Including: an introduction of the general information of the applicant, the relation between the applicant and the predecessor, the reason to the application for inheritance transfer, the property source of the predecessor and a detailed account of the realization, etc.;
　　ii. The Information Table of the Applicant for Emigration Property Transfer Abroad with the signature of the applicant (see attached table1);
　　iii. The identity certificate of the applicant (to provide in accordance with Article 3 of this Directions);
　　iv. The document proving that the applicant inherits the property;
　　v. The proof document of the right of the inherited property;
　　The property right referred to in this paragraph means the primary status of the property inherited by the applicant; related proof document of property rights include:
　　(i) With respect to real property (such as house), the title deed of house, the sale & purchase agreement for real estate or the dismantle and removal compensation agreement etc. shall be provided;
　　(ii) With respect to chattel (such as vehicles), the ownership certificate such as vehicle registration shall be provided;
　　(iii) With regard to financial assets (savings, stocks and bonds etc.), savings proof, opening account and trading records of stocks and bonds, and equity certificate etc. shall be provided;
　　(iv) With regard to other assets, proof of the property ownership by inheritance shall be provided.
　　vi. Relevant tax document or tax payment receipt shall be submitted in accordance with relevant provisions of the State Administration of Taxation.
　　vii. Agency authorization agreement and the identity document of the agent shall be provided if the formalities are handled by authorized agent.
　　The identity document of the agent referred to in this paragraph is the ID card or other valid identity document if the agent is a resident within the territory; or if the agent is a foreign citizen or a Chinese citizen who resides abroad, the identity document of the agent authenticated or issued by abroad Chinese embassy is required to be submitted. Agency authorization agreement and the identity document of the agent if the formalities are handled by authorized agent.
　　The proof document of property inheritance and the property certificate of the property inherited mentioned above such as the property right certificate of house, the real estate sale & purchase agreement or the dismantle and removal compensation agreement, the contract or agreement to contract, lease property, property transfer contract or agreement, franchising contract or agreement shall be notarized and the authorization agreement and the identity document of the agent shall be notarized.
　　(3) The applying material for second and afterwards exchange purchase and outward remittance of emigration transfer (Article 6 of the Measures, the operation procedure 7) 
　　i. Written application. The contents thereof include: the basic information of approval and the remittance occurred, amount applied for purchase and remittance this time;
　　ii. The original copy of the approval reply issued by local foreign exchange authorities to the applicant;
　　iii. The approval document issued by local foreign exchange authorities in last remittance.
　　Agency identity document and notarized agency authorization agreement if the formalities are handled by authorized agent. The local foreign exchange central branch of the applicant may incept the applying material instead; temporarily the examination and approval power is not authorized to local foreign exchange central branch. The receiving date of the foreign exchange authorities starts from the date when the local exchange branch (office) receives completed material.
　　5. The internal control system and departments cooperation
　　(1) Internal control system
　　Foreign exchange administration authorities at all levels shall establish the internal control system to guard against risks with a view to accomplishing the examination and approval of sales and payments of exchange in transferring individual property abroad, and preventing illegal funds from flowing aboard through this channel.
　　i. Setup of posts and administration responsibilities. All branches shall set up the position and designate specific staff responsible for this work. The main duties and responsibilities shall be: in charge of organizing the implementation, dissemination and interpretation of the Measures; examination of application materials; the contact and communication with the discipline inspection, supervisory, public security, judicial, and taxation authorities; establishment of archives and bench sheets for applicant; report of the relevant data etc.
　　ii. Establishment of bench sheets. The State Administration of Foreign Exchange and its branches shall establish the special bench sheets and the applicants' personal archives base for convenient daily search and inquiry.
　　iii. Data report. The relevant data report shall report monthly to the State Administration of Foreign Exchange through the Flow and Agiotage of Capital Account and its Sub-items Monthly Statement.
　　iv. Confidentiality system of the relevant information. The information provided by the discipline inspection, supervisory, public security, judicial, and taxation authorities shall be reserved by the specific man. The search and inquiry of the relevant information shall be authorized by the concerned leaders. The relevant specific examination and approval staffs shall keep confidential the personal information of the applicant, and shall not disclose outside.
　　v. Major matters report system. The abnormal application for big amount, for instance, the application for an equivalent above 1 million RMB or the suspicious tax evasion etc., shall be examined with emphasized attention, and reported level by level to the responsible leaders or decided collectively. 
　　(2) Cooperation with discipline inspection, supervisory, public security, judicial and taxation authorities
　　The foreign exchange authorities of all levels shall actively strengthen the contact with public security, supervisory, judicial and taxation (state taxation bureau and local taxation bureau) of the same level, communicate with them and conduct regular negotiation system to do a good supervisory work together. (i) The information communication and report system. According to Article 12 of the Measures, foreign exchange authorities will not accept the application for transfer abroad the property prohibited to be transferred by judicial and supervisory authorities. The supervisory authorities (above (including) provincial level) may provide the name list and related information material of those who have been recorded in file for investigation or whose property has been prohibited to be transferred to corresponding foreign exchange authorities (the local authorities of the place where the permanent registered address of the person involved in the file or where the property situates). All public security and judicial authorities (above (including) provincial level) may regularly provide the name list and related information material of those who have been recorded in file for investigation (suspected to have transferred across nation). All taxation authorities (above (including) provincial level) may regularly provide the name list and related information material of those who have been recorded in file to investigate the suspected tax evasion.
　　(ii)The establishment of confirmation request system. Where the application is involved in the public employee (including leaders of state-owned enterprise) and his (her) near relatives and the applied amount is beyond 1 million RMB, foreign exchange authorities may carry out the confirmation request with the supervisory department (above (including) province level) at the corresponding level in the examination; the application for transferring large doubtful property or for suspected illegal transfer, the foreign exchange authorities, in the examination, shall carry out the confirmation request to the public security, judicial authorities at corresponding level. The above authorities shall give written reply within 10 days after the receipt of the confirmation request of the foreign exchange authorities. 
　　Attachment:
　　1. The Internal Examination and Approval Rules and Key Points (for Internal Control) (Omitted)
　　2. The Confirmation Request (Referential Format and for Internal Control) (Omitted)
　　Attached table:
　　1. The Information Table of the Applicant for Emigration Property Transfer Abroad
　　2. The Application Table for Exchange Business in Transferring Abroad Individual Property

Attached table 1:

No.:          

The Information Table of the Applicant for Emigration Property Transfer Abroad (Please fill in with Chinese round hand)

Attached table 2:

The Application Table for Exchange Business in Transferring Abroad Individual Property

　　Business Number: