Laws of the People's Republic of China

the State Administration of Foreign Exchange

Circular of State Administration of Foreign Exchange on Printing and Distributing Administrative Rules for Examination and Verification Certificate of Declaration of Balance of Payments

Hui Fa [2004] No.102

October 15, 2004

The branches and foreign exchange offices of the State Administration of Foreign Exchange of all provinces, autonomous regions, and municipalities directly under the Central Government, and the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

With a view to coordinating with the effective development of the verification of the declaration of the balance of payments statistic, insuring that the institutions and staff of the State Administration of Foreign Exchange and the branches and foreign exchange offices (hereinafter referred to as the branches and offices) in charge of the declaration of the balance of payments statistic carry out examination and verifications subject to law, strengthening the administration of the Examination and Verification Certificate of Declaration of Balance of Payments, pursuant to the provisions of the Measures for Declaration of Balance of Payments Statistic, the rules for the implementation thereof and the Administrative Measures of the State Administration of Foreign Exchange for Law Enforcement Certificate, the State Administration of Foreign Exchange stipulates the Administrative Rules of the State Administration of Foreign Exchange for the Examination and Verification Certificate of Declaration of Balance of payments; related issues are hereby notified as follows:

1.

The promulgation, use and administration of the Examination and Verification Certificate of Declaration of Balance of Payments shall be executed strictly in accordance with the Measures for Declaration of Balance of Payments Statistic and the Administrative Measures of the State Administration of Foreign Exchange for Law Enforcement Certificate.

2.

The branches and offices shall, according to the work of the staff, make proper distribution of the inspection certificate and the Examination and Verification Certificate to insure that the staff of foreign exchange authorities will not hold simultaneously both the Inspection Certificate and the Examination and Verification Certificate.

3.

The branches and offices may apply for the Examination and Verification Certificate as required by work or the position changes of the staff rather than apply for it collectively.

4.

The branches at provincial level may, in accordance with these Verification Rules, stipulate by themselves specific rules applicable to the areas under their respective jurisdictions on the administration of the Examination and Verification Certificate.

5.

A further step to change the Examination and Verification Certificate will be taken due to relatively big changes in the staff in charge of the balance of payments statistic since 1999. Issues on changing the Certificate will be notified separately.

The branches, after receiving this circular, shall deliver in time to the offices within the areas under their respective jurisdictions. Where there are any problems in the process of execution, please contact the Balance of payments Department of the State Administration of Foreign Exchange.

Contact Person: Lu Zhiwang

Telephone: 010-68402374

Attachment:The Administrative Rules of the State Administration of Foreign Exchange for the Examination and Verification Certificate of Declaration of Balance of payments

Article 1

Pursuant to related provisions of the Measures for Declaration of Balance of payments statistic, the Administrative Measures of the State Administration of Foreign Exchange for Law Enforcement Certificate, these rules is stipulated with a view to further normalizing the administration of the Examination and Verification Certificate of Declaration of Balance of payments (hereinafter referred to as the Examination and Verification Certificate).

Article 2

These Rules applies to the State Administration of Foreign Exchange and its branches and offices. The Department of Balance of Payments of the State Administration of Foreign Exchange (hereinafter referred to as the Department of Balance of payments of the State Administration) is in charge of the design, printing, distribution, recalling and administration of the Examination and Verification Certificate. The branches of the State Administration of Foreign Exchange at provincial level are responsible for the examination and approval, distribution, recalling and administration of the Examination and Approval Certificate within themselves and the branches and offices within the areas under their respective jurisdictions.

Article 3

The Department of Balance of payments of the State Administration shall administer the Examination and Verification Certificate as an important voucher and designate specific staff to be in charge of the distribution, recalling and collective keeping, as well as locking the blank Examination and Verification Certificate in special drawers. Annual records (including electronic and paper record,), which shall include the information concerning amount printed, distribution, changes and surplus, shall be kept.

Article 4

The staff of the State Administration of Foreign Exchange and its branches and offices shall not hold simultaneously both Inspection Certificate and Examination and Verification Certificate. The professional and part-time staff in charge of the foreign exchange examination shall apply for and obtain the Inspection Certificate; the staff engaged in the related work concerning balance of payments statistic shall apply for and obtain the Examination and Verification Certificate.

As for the branches and offices with relatively few staff in foreign exchange business, the holders of the Inspection Certificate or the Examination and Verification Certificate shall be distributed properly.

Article 5

The balance of payments statistic staff of the State Administration of Foreign Exchange and its branches and offices, in applying for the Examination and Verification Certificate or the replacement thereof, shall prepare the following materials:

1.

The application form of the Examination and Verification Certificate of Declaration of Balance of Payments of the State Administration of Foreign Exchange (see Attachment 1) (hereinafter referred to as the application form);

2.

A recent one-inch and without-hat color photo of the applicant;

3.

A copy of the ID card of the applicant;

4.

A copy of the missing proclamation (for the replacement);

5.

Other material required by the State Administration of Foreign Exchange.

Article 6

Where the balance of payments statistic staff of the State Administration of Foreign Exchange apply for the Examination and Verification Certificate, the materials required by Article 5 of these Rules shall be submitted to the staff handling the Examination and Verification Certificate of the Department of Balance of payments, who shall examine the contents filled in the application form to assure the completeness and accuracy of the contents filled in five workdays, and the holding of the applicant shall conform to the requirement of Article 4 of these Rules. The handling personnel shall, after the completion of examination and approval, submit that to the division and department leaders of the Department of Balance of Payments to give opinions.

Article 7

Where the balance of payments statistic staff of the branches and offices of the State Administration of Foreign Exchange apply for the Examination and Verification Certificate, the materials as required in Article 5 of these Rules shall be submitted to the staff handling the Examination and Verification Certificate of the local State Administration of Foreign Exchange, who shall examine the contents filled in the application form to assure the completeness and accuracy of the contents filled in five workdays, and the holding of the applicant shall conform to the requirement of Article 4 of these Rules . The handling personnel shall, after the completion of examination and approval, submit that to the leaders of this bureau to give opinions and affix the official stamp, and then report to the local provincial branches of the State Administration of Foreign Exchange level by level.

Article 8

The provincial branches of the State Administration of Foreign Exchange shall exanimate, consolidate and preserve the application materials reported by the branches and offices within the areas under their jurisdictions, and fill in the Consolidation Form of Applications and Changes in the Examination and Verification Certificate of Declaration of Balance of payments (see Attachment 2) (hereinafter referred to as the Consolidation Form); the Consolidation Form thus filled (electronic and paper forms) and the applicant' photos ( the entity and name of applicant shall be noted on the back ) shall be reported to the Department of Balance of Payments of the State Administration, whose handling personnel shall report to the leaders of the division and department to give opinions within two workdays after receiving the Consolidation Forms submitted by the branches.

Article 9

The staff handling the Examination and Verification Certificate of the State Administration shall fill in the blank Examination and Verification Certificate on the basis of the application form or the Consolidation Form of the Examination and Verification Certificate signed with consent opinions by the leaders of the Department of Balance of Payments, and issue the Examination and Verification Certificate to the applicant of the State Administration or to the handling personnel of the provincial branch of the State Administration of Foreign Exchange after the Department of Personnel of the State Administration of Foreign Exchange affixes the steel seal. The provincial branches shall be responsible to distribute the Examination and Verification Certificate to the branches and offices within the areas under their jurisdictions.

Article 10

The State Administration of Foreign Exchange and its provincial branches shall take an appropriate preservation of the application materials of the holders of the Examination and Verification Certificate and establish the annual archives record concerning the issuance, registration and change (including loss and cancellation) of the Examination and Verification Certificate for the sake of check.

Article 11

The branches and offices of the State Administration of Foreign Exchange shall designate special persons to be responsible for the handling and administration of the Examination and Verification Certificate, including consolidating the application, distribution and recall of the Examination and Verification Certificate, and report in time the changes such as loss and cancellation etc. of the Examination and Verification Certificate to the Department of Balance of Payments of the Administration level by level.

The staff of the branches and offices of the State Administration of Foreign Exchange handling the Examination and Verification Certificate shall take charge of the centralized preservation of the Examination and Verification Certificates of the holders of the same level of bureau of foreign exchange, and distribute the Examination and Verification Certificate to the holder before examinating and verifying the declaration of balance of payments, and take it back in time for centralized preservation at the completion of examination and verification.

Article 12

The holder of the Examination and Verification Certificate shall preserve carefully and use lawfully the Examination and Verification Certificate, and shall not alter, destroy willfully or lend it. If the Examination and Verification Certificate is lost, the loser shall submit the explanation thereof (including the lost time, place and reason etc.) to local foreign exchange bureau, and the staff handling the Examination and Verification Certificate of this bureau shall finish the examination within two workdays and submit to the leader of this bureau to give opinions, and then report to the provincial branch level by level. The provincial branch of the State Administration of Foreign Exchange shall publish the lost announcement (see Attachment 3) of the Examination and Verification Certificate in the name of the State Administration of Foreign Exchange on the Financial News within two workdays after the explanation is received. The staff handling the Examination and Verification Certificate of the provincial branch shall report the lost case of the Examination and Verification Certificate to the Department of Balance of Payments of the Administration and mail or fax a copy of the published lost announcement within five workdays after the lost announcement is published.

Article 13

Where the holder of the Examination and Verification Certificate does not engage in the work of examinating and verifying the declarations of balance of payments statistic because of the change in post or the other reasons, the local bureaus of the foreign exchange shall recall the holder's Examination and Verification Certificate before the holder goes through the personnel formalities, and report to the provincial branch level by level. The staff handling the Examination and Verification Certificate of the provincial branches of the State Administration of Foreign Exchange shall carry out the consolidated registration (see Attachment 4 ) of the recalling of the Examination and Verification Certificate within the areas under their respective jurisdictions, and report the Examination and Verification Certificate recalled and the consolidated registration archives records to the Department of Balance of payments of the Administration to go through the cancellation formalities

Article 14

All provincial branches of the State Administration of Foreign Exchange shall inspect and examine the holding of the Examination and Verification Certificate, and check the archives records of the Examination and Verification Certificate within the areas under their respective jurisdictions during the period of the second or third ten days of December every year, and report the inspection and examination of the Examination and Verification Certificate to the Statistic System Division of the Department of Balance of Payments of the Administration via the internal electronic information transmission system of the State Administration of Foreign Exchange before December 31 of the current year.(Email: statbop.safe ). At the beginning of every year, the Department of Balance of payments of the Administration shall exanimate the archives records of the Examination and Verification Certificate of previous year and publish them on the information website of the State Administration of Foreign Exchange for the branches and offices to search and check.

Article 15

These Rules shall come into force as of the date of November 1, 2004.

Attachment:

1.

The Application Form of the State Administration of Foreign Exchange for the Examination and Verification Certificate of Declaration of Balance of payments (omitted)

2.

The Consolidation Form of Applications and Changes in the Examination and Verification Certificate of Declaration of Balance of payments (omitted)

3.

The format of the lost announcement of the Examination and Verification Certificate of Declaration of Balance of payments (omitted)

4.

The archives and records of the Examination and Verification Certificate of Declaration of Balance of Payments (omitted)