Laws of the People's Republic of China

PROVISIONS ON SEVERAL MATTERS CONCERNING CONVERSION
OF FOREIGN CURRENCIES

 (Issued by the State Administration of Foreign Exchange
Control on October 30, 1989)

 

 

 

SUBJECT: FOREIGN EXCHANGE FINANCE & BANKING

ISSUING-DEPT: THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONTROL

ISSUE-DATE: 10/30/1989

IMPLEMENT-DATE: 10/30/1989

LENGTH: 528 words

TEXT:

[Article 1] [Article 1] These Provisions are hereby formulated in order to strengthen the control over the conversion of foreign currencies.

[Article 2] [Article 2] The banks handling foreign exchange business (hereinafter referred to as "banks") shall, in accordance with the approved regulations on foreign exchange deposits, open foreign currencies accounts or Renminbi accounts for foreign diplomatic missions, consulates, commercial offices, international and non-government bodies resided in China (hereinafter referred to as "resident organizations"), and supervise the receipt and payment of the accounts.  No account holders should handle the receipt or payment of the accounts on behalf of other organizations.  When the resident organizations draw foreign exchange certificates from their accounts, the opening banks should put a stamp "non-convertible foreign exchange" on the memorandum of foreign exchange certificates.  Unused amount of foreign exchange certificates can not be exchanged back to foreign currency and must be used only in the territory of China.

[Article 3] [Article 3] The banks shall, in accordance with the approved regulations on handling foreign exchange deposits, open foreign exchange or Renminbi accounts for the resident employees of the resident organizations (hereinafter referred to as "resident employees").  When the resident employees draw forerign exchange certificates from their accounts, the opening banks should mark "account for resident employees" on the memorandum of foreign exchange certificates.  If the resident employees wish, on their departure, to exchange the unused amount of foreign exchange certificates back to foreign currencies to be remitted or brought out from China, they must present their exit certificates, airline tickets and valid memorandum of foreign exchange certificates within the valid term to the banks, and only part of the foreign exchange certificate (the maximum amount will not exceed half the original converted amount) can be exchanged back to foreign currencies.  Resident employees staying in China can not exchange unused amount of foreign exchange certificates back to foreign currencies and must use them only in the territory of China.

[Article 4] [Article 4] For foreign tourists, overseas Chinese and compatriots from Hong Kong and Macao on a short visit to China who need to convert foreign currencies into foreign exchange certificates, the banks should mark the person's name and passport number on the memorandum of foreign exchange certificates.  When they wish to exchange the unused amount of foreign exchange certificates back to foreign exchange currencies, they must present their valid memorandum of foreign exchange certificates and exit certificates to the banks and they are permitted to exchange only once (the maximum amount will not exceed the half the original converted amount), and the banks shall withdraw the memorandum of foreign exchange certificaates immediately.

[Article 5] [Article 5]These Provisions shall come into force from the date of their promulgation.  If there is any divergency between these Provisions and others, these Provisions shall prevail.