Notice of the State Administration of Foreign Exchange on Issues concerning Improving the Administration of Online Verification of Export Collection and Settlement of Foreign Exchange

[Issued by] State Administration of Foreign Exchange

[Release Document No.] Huifa [2009] No. 10

[Release Date] 2009-01-15

[Implementation Date] January 15, 2009

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions and municipalities directly under the Central Government, the branches of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo; and all Chinese-funded designated foreign exchange banks:

In order to implement the Several Opinions of the General Office of the State Council on the Current Financial Promotion of Economic Development (Guo Ban Fa [2008] No. 126), improve the efficiency of the use of enterprise liquidity, and vigorously promote trade facilitation, we hereby improve the management of online verification of export collection and settlement of foreign exchange. The notice is as follows:

1. the enterprise has actually exported and received foreign exchange, but the balance of foreign exchange receivable is temporarily insufficient due to the delay in export data transmission, the bank may first handle the settlement or transfer of funds in the account to be verified for the enterprise on the basis of the enterprise's commitment statement letter (which shall include the actual export date, the corresponding date of foreign exchange receipt, the authenticity of the commitment, etc., and shall affix the official seal of the unit). The enterprise shall complete the online verification procedures within 30 working days after the settlement or transfer of foreign exchange, and the bank shall log in to the export collection and settlement network verification system (hereinafter referred to as the "system") to check the amount of foreign exchange receivable for the enterprise under the corresponding trade category. For those that have not been reissued within 30 working days, the bank shall report to the Foreign Exchange Bureau within 10 working days after the expiration of the period, and at the same time stop handling the advance settlement or transfer of foreign exchange for the enterprise, and check the amount of foreign exchange that has been settled or transferred online when there is a receivable amount.

From February 15, 2009, the 2. will uniformly adjust the proportion of foreign exchange collected from processing incoming materials from 20% to 30%. The branches of the foreign exchange bureau and the foreign exchange management department shall log on to the "system" in the "system" of the "adjustment of the proportion of processing to receive foreign exchange" module, the proportion of processing to receive foreign exchange unified adjustment to 30%. If the actual proportion of foreign exchange received in the customs declaration of single export goods under the item of processing trade is higher than 30%, the bank shall handle it in accordance with the relevant provisions on the excess proportion of foreign exchange received by the current processing of incoming materials.

3. for the formation of exchange rate changes due to the formation of foreign exchange difference funds, enterprises can directly to the bank on the basis of the description of the situation from the account to be verified to settle or transfer procedures.

4., for funds under trade in services that enter an account to be verified due to a receipt of foreign exchange that contains a variety of natures, misdescriptions by the enterprise or errors in the work of the bank, the enterprise may, on the basis of relevant documents such as contract invoices, go directly to the bank for the withdrawal or settlement of foreign exchange from the account to be verified.

5. enterprises may first settle or transfer foreign exchange if they do have exports but the amount of foreign exchange receivable is insufficient due to the time lag in data transmission. Banks shall, in strict accordance with the requirements of this Circular, handle the online verification of export collection and settlement of foreign exchange for enterprises. The collection of foreign exchange under export trade financing shall not be handled in accordance with this provision, but shall still be handled in accordance with the relevant provisions of the current trade credit management.

The 6. Foreign Exchange Bureau shall strengthen the post-event supervision of banks and enterprises for the settlement or transfer of foreign exchange and the completion of online verification procedures. Those who violate the provisions of this Notice shall be punished by the Foreign Exchange Bureau in accordance with the Regulations on Foreign Exchange Administration of the the People's Republic of China and other relevant provisions.

7. This Circular shall come into force as of the date of promulgation.

After receiving this notice, each branch and foreign exchange management department shall forward it to the central branch, branch, foreign-funded bank and local commercial bank under its jurisdiction as soon as possible. All Chinese-funded designated foreign exchange banks shall, upon receipt of this notice, forward it to their respective branches as soon as possible. In case of any problems in the implementation, please give feedback to the State Administration of Foreign Exchange in a timely manner.

January 15, 2009