Laws of the People's Republic of China

The State Administration of Foreign Exchange, the General Administration of Customs

Circular of the State Administration of Foreign Exchange and the General Administration of Customs on Launching a Pilot Project for Network Examining the Verification of Export Collection in Foreign Exchange by Electronic System for Executing Laws at Ports

Huifa [2001] No.7

January 22, 2001

Shanghai, Tianjin, and Guangzhou Branch of the State Administration of Foreign Exchange (hereinafter SAFE), Beijing Department of the SAFE, Guangdong Branch of the General Administration of Customs (hereinafter GAC), and each Customs directly under GAC:

According to the written reply of the State Council to GAC and other 11 government departments on the Written Request on Relevant Issues Concerning Setting up An Electronic System For Executing Laws At Ports (hereinafter ESELAP), and to the instructions of the State Council Leaders on Speeding up the Establishment of ESELAP, ESELAP has been developed and tested. It was put into use experimentally on December 15, 2000 in Beijing, and is planned to operate in Shanghai, Tianjing, and Zhuangzhou at the beginning of February 2001.

A sub-system of ESELAP named Export Collection in Foreign Exchange makes use of the advanced information technology, draws support from the state telecommunication public network. The enterprise can apply for verification certificate of export collection in foreign exchange (hereinafter Verification Certificate) by inter-net at any time. SAFE can issue Verification Certificates by inter-net, set up a live nationwide electronic accounts Database of Verification Certificate in pubic data center, and provide electronic data of Verification Certificates to the customs and departments collecting state taxes for customs declarations and drawbacks. Thus ESELAP shall improve foreign exchange supervision by cross-checking electronic data, and prevent lawless persons from using forged, altered, embezzled, or falsely used paper-made Verification Certificates for foreign exchange evasion, smuggling, and drawbacks.

To ensure smooth experimental operation of the System of Export Collection in Foreign Exchange (hereinafter SECFE), relevant issues are circulated as follows:

1.

SECFE is a major project of the state to formalize foreign trade and financial order, and to ensure economic safety of the state. It is also one of the sub-systems of ESELAP that go into experimental operation first. Branches of SAFE in pilot cities and every customs in the whole country shall attach great importance to the experimental operation of SECFE. Leaders at each level shall personally organize the work of propaganda, mobilization, and training in their own department, especially the work of implementation. SAFE and the customs shall each take their own responsibility and cooperate each other closely in order to establish a clear and harmonious inter-department working mechanism. SAFE shall issue Verification Certificates by inter-net seriously, and ensure the electronic accounts data of Verification Certificates authentic and correct. Customs shall check the electronic accounts data of Verification Certificates issued in pilot areas strictly, and stop all kinds of foreign exchange evasion by using forged, altered, embezzled, and falsely used paper-made Verification Certificates.

2.

SAFE branches in pilot cities shall do following works strictly according to requirement:

(1)

Employing new version Verification Certificates. New Version Verification Certificate refers to one that is stamped with bar code and special seal for network experiment in the column of term of validity. New version Verification Certificate needs not to be marked with term of validity. It is regarded as long-term valid.

(2)

The amount of paper-made new version Verification Certificate issued by SAFE to the enterprise shall be the smaller one comparing the amount applied for by inter-net with that confirmed by the local SECFE that the enterprise can acquire. SAFE shall simultaneously input the electronic accounts data of Verification Certificate issued to the public data center.

(3)

SAFE shall no longer require the applicant on the spot fill out its name in or affix its name seal to paper-made new version Verification Certificate. However, before officially using the new version Verification Certificate, the user shall fill out its name or affix its name seal, and affix its official seal to it.

(4)

When conducting the procedure of verification of export collection in foreign exchange, SAFE shall examine paper-made new version Verification Certificates, customs declaration form and its special copy for verifying export foreign exchange earnings collected, check the data in electronic accounts of customs declaration form to see if they show no difference from those in paper-made customs declaration form. If so, the verification procedure shall be conducted, and the data verified shall be input into the Public Data Center timely.

(5)

If new version Verification Certificate has no electronic accounts data, or electronic accounts show difference from paper-made vouchers, the SAFE branch who issued it shall accept the enterprise inquiry timely. The SAFE who accepts the inquiry shall resolve all of the problems in 5 working days. If the difference is derived from wrong paper-made vouchers, mistakes shall be corrected with the vouchers, if is from wrong electronic accounts data, the data shall be corrected or supplemented. SAFE shall ensure the accuracy of the paper-made vouchers of new version Verification Certificate and electronic accounts data, as well as the consistence between them.

3.

Each customs in pilot cities shall do following works strictly according to requirement:

(1)

When conducting the procedure of customs declaration for the enterprise, customs shall adhere to the principle of one copy of Verification Certificate, one copy of customs declaration form.

(2)

Before declaring exports to customs, the enterprise shall record the serial number of the new version Verification Certificate at the same customs that it will declare to by inter-net in advance. The customs shall not accept unrecorded Verification Certificate.

(3)

Customs who check new version Verification Certificate by external network shall examine case by case the consistence (including the serial number of the Verification Certificates, the name of enterprise, etc.) between paper-made Verification Certificate and electronic accounts on the spot of export declaration. For Customs who check new version Verification Certificates automatically by internal network, the computer shall automatically compare relevant contents (including the serial number of the Verification Certificate, name code of the enterprise) between the customs declaration form and the electronic accounts data of new version Verification Certificate. Examination shall be strengthened on the spot of export declaration to ensure voucher-to-voucher consistence, and voucher-to-electronic data consistence of customs declaration form and new version Verification Certificate.

(4)

When conducting the procedure of customs clearance, customs shall write their opinion in the column of Check and Release by Customs, and make a note of been used in electronic accounts data of new version Verification Certificates by computer or by hand.

(5)

In the case that goods are returned in full-amount, customs who check new version Verification Certificate by external network shall delete the information of corresponding customs declaration form, and at the same time mark the electronic accounts data of new version Verification Certificate with Goods Returned by hand. For customs who check new version Verification Certificate automatically by internal network shall delete the information of corresponding customs declaration form, the computer shall at the same time automatically mark the electronic accounts data of new version Verification Certificate with Goods Returned.

(6)

In the case that customs declaration form is returned because of being filled incorrectly, customs shall reinstate electronic accounts data of corresponding new version Verification Certificate as Unused.

(7)

Customs shall ensure the accuracy of the paper-made vouchers of customs declaration form and electronic accounts data, as well as the consistence between them. If customs declaration form has no electronic accounts data, or electronic accounts data show difference from paper-made vouchers, the customs who issued it shall accept the enterprise inquiry timely. The customs that accept the inquiry shall resolve all of the problems in 5 working days. If the difference is derived from wrong paper-made vouchers, mistakes shall be corrected with the vouchers. If it is from wrong electronic data, the data shall be corrected or supplemented.

4.

Timetable for experimental operation of SECFE

(1)

As of February 8, 2001, export enterprises in Beijing shall apply for new version Verification Certificates by inter-net, and apply for paper-made new version Verification Certificates with SAFE by presenting their IC card. New version Verification Certificate shall begin to be employed as of February 18. Customs nationwide shall check the electronic accounts data of paper-made new version Verification Certificates in Beijing by network as of February 18. Unused old version paper-made Verification Certificates of the enterprise can not be used any longer as of the same day. All of them shall be returned to SAFE for being written off in 1 month.

(2)

As of March 15, 2001, every enterprise in Shanghai, Tianjin, and Guangzhou shall apply for new version Verification Certificates by inter-net, and apply for paper-made new version Verification Certificates with SAFE by presenting its IC card. New version Verification Certificate shall begin to be employed as of April 1, 2001. Customs nationwide shall check the electronic accounts data in these cities by network when enterprises in these cities begin to use paper-made new version Verification Certificate for customs declaration. Unused old version paper-made Verification Certificates of the enterprise can not be used any longer as of April 1. All of them shall be returned to SAFE for being written off in 1 month.

(3)

SECFE is planned to operate nationwide as of June 1, 2001. Every enterprise, SAFE branch, and customs shall operate according to the requirement of SECFE.

5.

An Announcement is distributed here as an attachment to you for smooth experimental operation of SECFE. Please make it pubic in relevant media and put it up at the office spot of SAFE and customs according to the course of experimental operation.

If there is any problem during the implementation, please report to SAFE of GAC in time.

Hotline to SAFE: 010-68518956

Hotline to GAC: 010-65195656