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Laws of the People's Republic of China |
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| Category | BANKING | Organ of Promulgation | The State Council | Status of Effect | In Force |
| Date of Promulgation | 1994-03-26 | Effective Date | 1994-04-01 |
|
Interim Provisions for the Control of Foreign Exchange Settlements, Sales and Payments |
|---|
Article 1 These Provisions are formulated in order to
standardize methods of foreign exchange settlement, sale and payment
and to achieve conditional convertibility of Renminbi under current
payment items.
Article 2 A designated foreign exchange bank shall conduct such
business operations as settlement of foreign exchange, sale of foreign
exchange, opening of foreign exchange accounts and payment to
foreigners in accordance with these Provisions.
Article 3 The various foreign exchange earnings derived by any Article 4 Apart from those items included within the scope of (1) foreign exchange earnings derived from the export of goods or (2) foreign exchange earnings gained through the winning of bids under (3) foreign exchange earnings gained through dealing in duty free (4) foreign exchange earnings gained by providing commodities or (5) various foreign exchange income from the payment of stipulated (6) foreign exchange earnings gained through the assignment of (7) foreign exchange earnings gained through sales of real estate (8) foreign exchange profits remitted back into Chinese territory (9) foreign exchange earnings gained through claims against foreign (10) foreign exchange earnings gained through undertaking foreign (11) foreign exchange earnings gained through foreign exchange (12) foreign exchange earnings gained through overseas donations (13) other foreign exchange earnings which shall be settled as Article 5 For the following types of foreign exchange, domestic (1) business transaction foreign exchange received in the course (2) foreign exchange withheld to be paid by organizations which (3) foreign exchange temporarily withheld to be paid or to be (4) insurance premiums gained through acceptance of foreign Earnings gained through settlement of the aforesaid types of Article 6 Foreign exchange which falls within the following scope (1) foreign exchange to be used for State-approved specific (2) donated foreign exchange to be used for overseas payments as (3) foreign exchange gained through overseas borrowings and the (4) foreign exchange remitted into Chinese territory as investment (5) foreign exchange possessed by foreign diplomatic missions in (6) foreign exchange possessed by foreign investment enterprises; (7) foreign exchange owned by resident individuals and individuals Article 7 A domestic organization which is permitted to open Article 8 Foreign exchange used for the following trade and non- (1) licences issued by the relevant departments, or import (2) corresponding registration certificates and import contracts (3) apart from the aforesaid two items, an import contract shall For advance payments (within the prescribed proportion), guarantee (4) foreign exchange used to purchase commodities from bonded (5) import contracts or agreements shall be presented for the (6) for foreign exchange to be used to pay compensation to (7) bidding documentation shall be presented for bid bonds to be Article 9 Foreign exchange used for the following trade and non- (1) import processing contracts approved by foreign economic (2) payments for the import of duty-free commodities within the (3) international through freight costs, cost of maintenance of (4) food allowances and subsidies to be paid to international (5) expenses paid for international postal services and Article 10 Foreign exchange used for the following trade and non- (1) advance payments for goods and commissions which are in excess (2) payments to foreigners incurred in the course of making Article 11 Foreign exchange which is used within the limits of Article 12 Foreign exchange which is without the financial (1) foreign exchange to be used to hold exhibitions and (2) costs of external publicity, aid to foreign countries, (3) establishment costs and funds used for the establishment of (4) examination fees paid to foreigners by the overseas (5) foreign exchange which is used for other non-profit purposes. Article 13 Foreign exchange which is used for the following non- (1) Renminbi wages, living expenses and subsidies for leaves of (2) foreign exchange used by individuals when leaving the country (3) retirement, severance and discharge payments and disabled (4) foreign exchange specifically used for the purchase of small Article 14 The following types of foreign exchange used under (1) loan agreement and notice of loan principal and interest (2) guarantee contract and payment notice issued by creditor (3) resolutions of distribution of profits proposed by a board of Article 15 The following types of foreign exchange used for (1) Foreign Debt Registration Certificates or Foreign Exchange (2) guarantee contracts, Foreign Exchange Guarantee Registration (3) a document of approval issued by a project examination and (4) a document of approval issued by a project examination and Article l6 Legal Renminbi income (such as visa fees and Legal Renminbi income (such as passenger-cargo freight received by Article 17 Renminbi which has not been used up, when leaving the Article 18 Where a foreign exchange account exists and payment Article 19 Where external payments are made from a foreign Article 20 A payment made through purchase of foreign exchange or Article 21 Where repayment of overseas loan principal and Article 22 In order to prevent exchange rate risks for units with Article 23 Payments for import under barter trade shall not be Article 24 A designated foreign exchange bank shall open an Article 25 A designated foreign exchange bank shall submit Article 26 A domestic organization may select a designated Financial institutions engaging in foreign exchange business Article 27 If a party violates these Provisions, the Administration Article 28 The provisions of Chapter III of these Provisions shall Article 29 The State Administration of Exchange Control shall be Article 30 These Provisions shall become effective on April 1, 1994.
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domestic enterprise, public institution, government organ or social
organization (hereinafter referred to as "domestic organization") must
be promptly remitted back into Chinese territory, and foreign exchange
settlements, sales, opening of foreign exchange accounts and payments
to foreigners shall be conducted pursuant to these Provisions.
Chapter II Settlement of Foreign Exchange
foreign exchange earnings prescribed in Articles 5 and 6 of these
Provisions, the following foreign exchange earnings derived by
domestic organizations must all be cleared and sold to designated
foreign exchange banks:
goods in transit for which payment is received before collection and
from other trading activities:
overseas loans:
commodities within Chinese territory under the supervision and
administration of Customs:
services in such industries and various types of agency business as
transport (including all types of transport), port-related business
(including seaports and airports), post and telecommunications (not
including international remittances), tourism, advertising,
consultancy, exhibitions, sales commission, maintenance and repair,
etc;
fees, fines and confiscated funds derived by the administrative and
judicial organs;
intangible assets such as land use rights, copyrights, trademark rights,
patent rights, technology with non-patent rights and goodwill, etc;
and other assets to overseas buyers;
by overseas investment enterprises, foreign exchange recovered under
foreign economic aid projects and foreign exchange earnings gained
from overseas assets;
parties and returned foreign exchange guarantee funds;
exchange insurance by insurance institutions;
business operations by financial institutions which have obtained a
"Licence to Engage in Foreign Exchange Business Operations";
of gifts, sponsorship and aid:
stipulated by the State Administration of Exchange Control.
organizations may apply to the State Administration of Exchange Control
or its branches (hereinafter referred to as "the Administration of Exchange
Control") to open foreign exchange accounts with designated
foreign exchange banks in order to carry out foreign exchange
settlement pursuant to the regulations:
of engaging in overseas contract projects, the provision of labor
services overseas, technical cooperation and other business service
operations by companies concerned;
act as agents in undertaking foreign business operations or business
operations abroad;
settled, including bid bonds, down-payments to guarantee fulfillment
of contract remitted from overseas, foreign exchange gained through
transit trade with collection before payment, foreign exchange
business remitted by post and telecommunications offices, advance
payments of foreign exchange received from foreign tourist
organizations by first class travel services, foreign exchange gained
through overseas insured transportation business operations by railway
departments and foreign exchange guarantee funds and mortgage funds
received by Customs authorities;
exchange insurance to be used for overseas reinsurance but which has
not yet been settled by insurance institutions.
foreign exchange on time and in accordance with the accounting system
shall all be cleared and sold to designated foreign exchange banks.
need not be settled and may have foreign exchange accounts opened with
designated foreign exchange banks:
purposes of repayment of domestic and overseas debts which have been
examined by the Administration of Exchange Control;
stipulated in a donation agreement;
issue of foreign currency bonds and shares;
by legal or natural persons overseas;
China, the representative offices of international organizations and
other overseas legal persons;
coming to China.
foreign exchange accounts as stipulated in Article 5 and 6 of these
Provisions shall carry out the procedures for opening foreign
exchange accounts with a designated foreign exchange bank by
presenting a document of opening a foreign exchange account issued by
the Administration of Exchange Control.
Chapter III Sale of Foreign Exchange
trade operational payments to foreigners by domestic organizations
shall be converted and paid at a designated foreign exchange bank by
presentation of valid commercial documents in relation to payment
method and the listed valid documents:
documents and corresponding import contracts, shall be presented for
the import of goods subject to import quota control or for specific
goods under import control;
shall be presented for the import of goods subject to the automatic
registration system;
be presented for other goods imported in accordance with the State
regulations for import control.
funds for opening Letters of Credit, remaining payments, transportation
fees, insurance premiums and subsidiary expenses under import items as
stipulated in the aforesaid items (1) to (3), and commissions (within
the prescribed proportion), transportation fees, insurance premiums and
subsidiary expenses under export items, the valid documents as stipulated
in the aforesaid items (1) to (3), or relevant documents of approval,
shall be presented;
zones and bonded warehouses, and to purchase items from foreign
exhibitions held in China, the valid documents stipulated in the
aforesaid items (1) to (3) shall be presented;
import of intangible assets such as patent rights, copyrights,
trademark and computer software, etc;
foreigners under export items, the exchange settlement sheet, claim
agreement, certificate of settlement of claim and certificate for the
refund of foreign exchange shall be presented;
used for overseas contract projects, and contracts shall be presented
for down payment of guarantee for fulfillment of contracts and project
funds to be paid on behalf of another party.
trade operational payments to foreigners by domestic organizations
shall first be converted and paid at designated foreign exchange banks
based on the detailed account of payments provided by the customer
which shall then be examined and verified:
relations and trade departments shall be presented for the import of
materials involved in processing for re-export;
prescribed scope of business operations made by duty-free companies
which have been approved by the State Council;
equipment, station, airport and seaport fees, fuel supply fees,
insurance premiums, non-financing lease fees and service charges to be
paid to foreigners by civil aviation, ocean shipping and railway
departments;
operational personnel by civil aviation, ocean shipping and railway
departments;
telecommunications by post and telecommunications departments.
trade operational payments to foreigners by domestic organizations
shall be converted and paid at designated foreign exchange banks
against foreign exchange sales notices issued by the Administration of
Exchange Control:
of the prescribed proportions;
payments before collection under transit trade items.
the financial budget by organs, public institutions and social
organizations for non-trade and non-profit purposes shall be
handled in accordance with the "Interim Provisions Regarding Financial
Administration of Non-trade and Non-profit Foreign Exchange".
budget and used for the following non-profit purposes by domestic
organizations shall be converted and paid at designated foreign exchange
banks against the foreign exchange sales notices issued by the
Administration of Exchange Control:
investment-seeking symposia, and to conduct training and to make film
and television programs abroad, etc;
foreign exchange donated to foreign parties, membership dues to
international organizations;
representative offices or administrative bodies overseas;
examination coordination center of the State Education Commission;
trade and non-profit purposes by individuals shall be converted
and paid at designated foreign exchange banks authorized by the
Administration of Exchange Control pursuant to the relevant regulations:
absence from work received by foreign experts who have been employed
by domestic organizations and which require conversion into foreign
exchange;
for personal reasons and for visiting and entertainment purposes by
individuals;
person pensions which require the purchase of foreign exchange for
remittance overseas to individuals who have settled overseas;
amounts of medicine and medical equipment through the mail from
overseas by domestic resident individuals.
capital financing items by domestic organizations shall be converted
and paid at designated foreign exchange banks by presentation of the
following listed documents:
required repayments issued by creditor institutions shall be presented
for repayment of principal and interest on foreign exchange loans
issued by domestic financial institutions using their own funds;
institutions shall be presented for foreign exchange used for domestic
guarantees to fulfill contracts;
directors and tax receipts shall be presented for dividends paid in
foreign currency which have been approved by the State.
capital financing items by domestic organizations shall firstly be
declared to the Administration of Exchange Control by presentation of the
following listed valid documents and shall then be converted and paid
at designated foreign exchange banks by presenting documents of
examination and approval issued by the Administration of Exchange Control:
(Transferred) Loan Registration Certificates and notice of loan
principal and interest required repayments issued by creditor
institutions shall be presented for repayment of foreign debts or
foreign exchange (transferred) loan principal, interest and expenses;
Certificates issued by the Administration of Exchange Control and
payment notice issued by overseas organizations shall be presented for
foreign exchange used to provide a foreign exchange guarantee overseas in
order to fulfill a contract;
approval department and an investment contract shall be presented for
overseas investment funds to be remitted abroad;
approval department and a contract shall be presented for registered
funds contributed in foreign exchange by Chinese investors in a
foreign investment enterprise as required and which has been approved.
certification fees, etc.) derived by foreign diplomatic missions in
China which is required to be remitted overseas shall be converted and
paid at designated foreign exchange banks authorized by the Administration
of Exchange Control.
representative offices of foreign airlines or ocean-shipping companies
in China) derived by overseas organizations with legal person status
in China which is required to be remitted overseas must be declared to
the Administration of Exchange Control by presentation of certification
documents and shall then be converted and paid at designated foreign
exchange banks by presentation of the foreign exchange sales notice
issued by the Administration of Exchange Control.
country, by foreigners, overseas Chinese and Hong Kong, Macao and
Taiwanese compatriots who came to China for a temporary stay, may be
converted back into foreign exchange by presentation of their passport
and original conversion sheets (valid for a period of six months) for
taking out of China.
Chapter IV Payment of Foreign Exchange
usage conforms to the prescribed scope of using a foreign exchange
account, the balance of that foreign exchange account may first be
used to make all external payments, where foreign exchange payments
are outside the prescribed scope of using a foreign exchange account
is insufficient to make payments, the foreign exchange may be purchased
in order to make external payments.
exchange account, these shall be examined by the bank at which the
foreign exchange account is opened according to prescribed scope of
revenue and expenditure of the foreign exchange account and pursuant
to the relevant provisions of Chapter III of these Provisions, and
the payments shall be made.
made from a foreign exchange account must be handled within the time
limit prescribed in the settlement method or in the contract, and
external payments shall not be made in advance.
interest is required to be made ahead of the prescribed time, it shall
first be subject to approval by the Administration of Exchange Control,
after which foreign exchange may be purchased in order to make the
external payment.
Chapter V Supplementary Provisions
forward payment contracts or debt repayment agreements, the designated
foreign exchange banks may conduct forward deals between Renminbi and
foreign currencies and other value maintenance operations.
made through the purchase of foreign exchange or from foreign exchange
accounts.
account with 50% of the amount of exchange settled by an export
enterprise for that export enterprise. The exchange used for expanding
its exports (including for import processing, packing materials,
export base, claims and settlement of claims, transport costs and
insurance premiums, after-sales service and other subsidiary trade
expenses) required by an export enterprise shall be handled for
conversion and payment pursuant to the provisions of articles 8 and 9
of these Provisions from the account balance by the bank handling
conversion and payment.
exchange settlement, sales and payment statements to the Administration
of Exchange Control every 10 days.
foreign exchange bank within its registered area to carry out business
operations such as the opening of foreign exchange accounts,
settlement and purchase of exchange, and these activities shall be
reported to the Administration of Exchange Control for the record.
operations and domestic organizations which conduct exchange
settlement, sale and payment business shall, without preconditions,
accept the supervision and inspection of the Administration of Exchange
Control and shall produce and provide relevant documents.
of Exchange Control may impose such punishment as warnings,
fines or suspension of exchange settlement, sale and payment for
business operations.
not apply to foreign investment enterprises.
responsible for the interpretation of these Provisions.
In the event of any conflict between these Provisions and other relevant
legislation promulgated previously, these current Provisions shall prevail.
URL: http://www.asianlii.org/cn/legis/cen/laws/ipftcofessap841