Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Verification Procedures of Import Payment in Foreign Exchange

Huifa [2001] No.98

May 25, 2001

Each branch of the State Administration of Foreign Exchange (SAFE) in provinces, autonomous regions, and municipalitie directly under the Central Government, foreign exchange administration department, SAFE branch of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

According to Article 14 of Circular on Perfecting the Administration of Sales of and Payment in Foreign Exchange (Huihan [1998] No. 27) promulgated by SAFE on August 14, 1998, SAFE and its branches shall keep both the first copy of the verification statement and attached vouchers and certificates submitted by the domestic entity on file after examination. Attached vouchers and certificates (including the verification certificates) shall not be returned to the domestic entity. This stipulation was effective in improving the administration of import payment in foreign exchange and preventing duplicated purchase of and payment in foreign exchange upon one set of import vouchers and certificates. After nationwide implementation of the Verification Network System for Import and Export Customs Declaration Form on January 1, 1999, network verification of the electronic account data make the authenticity of the import customs declaration form quite certain and duplicated use of import customs declaration form impossible. There's no need to keep attached vouchers and certificate on file any more. We hereby circulate relevant stipulations as follows to this end:

1.

SAFE and its branches, after examining the verification statement and attached vouchers and certificates submitted by the import entity and conducting the verification of import payment in foreign exchange for the entity, shall stamp the verification statement and all of attached verification certificates with "reported for verification". The first copy the verification statement and the last copy of the customs declaration form printed by the Verification Network System for Import and Export Customs Declaration Form shall be kept on file (in case of "transit trade" or "materials for overseas project", receipts of foreign exchange sales and notice of collection shall be stamped with "reported for verification". A duplicate copy of them shall be kept on file). Other vouchers and certificates shall be returned to the import entity. The import entity shall keep the second copy of the verification statement and relevant vouchers and certificates on file for 5 years according to requirement.

2.

This circular shall enter into force as of the date of promulgation.

On receipt of this circular, SAFE branches are required to transmit it expeditiously to their sub-branches and related entities. If problems arise during implementation, it is requested that they be reported to SAFE in time.