Laws of the People's Republic of China

The State Administration Of Foreign Exchange Control

Circular of the State Administration of Foreign Exchange on the Sales of and Payments in Foreign Exchange and Verification of Export Receipts and Import Payments Under the Item of Transfer Between-factories During Further Processing

HuiFa [1999] No.84

January 12,1999

Branches of State Administration of Foreign Exchange, Beijing and Chongqing foreign exchange departments; designated foreign exchange banks:

In order to regulate the transfer between factories during further processing, now notify relevant issues as follows:

1.

As to ratified transfer between factories, designated foreign exchange banks shall undergo sale of and payment in foreign exchange or transferring through boundaries for the transferring-out enterprises upon relevant certificates. The transferring-out enterprises and the transferring-in enterprises shall undergo corresponding verifications for import payment and export collection. Relevant specific operating procedure is regulated by SAFE and its branches (HuiFa [1999] No.78).

2.

The SAFE and its branches should irregularly inspect enterprises running transferring between factories during further processing. Those violating this Circular and other regulations, should be punished according to relevant rules.