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 Printing and Distributing the Interim Measures for the Administration of Carrying Foreign Currency Cash for Persons Entering or Exiting the Territory

HuiFa[2003] No.102

August 28, 2003

The branches and offices under 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; Guangdong Branch Administration of Customs, Tianjin and Shanghai Special Dispatched Offices, all customs and educational institutions directly subordinate to the General Administration of Customs; and all designated foreign exchange banks:

In order to facilitate the foreign-related contacts of those who enter or exit the territory, regulate the acts of carrying foreign currency cash to enter or exit the territory of the persons concerned, crack down the illegal and criminal acts of money laundering, smuggling of currencies and evasion of foreign exchanges, etc., the State Administration of Foreign Exchange and the General Administration of Customs have jointly formulated the Interim Measures for the Administration of Carrying Foreign Currency Cash for Persons Entering or Exiting the Territory, which are hereby printed and distributed to you for your compliance and implementation, and a notice is given as follows regarding the relevant issues:

I.

The "Permit for Carrying Foreign Exchanges to Exit the Territory" (hereinafter referred to as the "Permit for Carrying Foreign Exchanges"), which was put into use on August 1, 1999, shall be continually used, and shall be uniformly printed and produced by the State Administration of Foreign Exchange. Each designated foreign exchange bank shall obtain the said permit in the branch or sub-branch bureau of the State Administration of Foreign Exchange at its locality (hereinafter referred to as the foreign exchange bureau).

II.

A person exiting the territory may carry foreign currency cash with him, and may also carry foreign currencies out of the territory in accordance with the provisions of the State on financial administration by means of remitting the foreign currencies out through the bank or carrying the drafts, travel checks, and the international credit cards, etc.

If a person exiting the territory carries foreign currency cash of not more than the amount equal to 5,000 USD, he does not need to apply for the "Permit for Carrying Foreign Exchanges", and he shall be released by the customs; if a person exiting the territory carries foreign currency cash of more than the amount equal to 5,000 USD but not more than 10,000 USD, he shall apply to the designated foreign exchange bank for the "Permit for Carrying Foreign Exchanges", and the customs shall inspect and release him upon checking the "Permit for Carrying Foreign Exchanges" affixed with the seal of the designated foreign exchange bank; a person exiting the territory shall not, in principle, carry foreign currency cash of more than the amount equal to 10,000 USD. Under any of the following particular circumstances, he may apply to the foreign exchange bureau for the "Permit for Carrying Foreign Exchanges":

1.

He is in a group exiting the territory composed of a large number of persons.

2.

He is in a scientific inspection group exiting the territory for a long time or for a long trip.

3.

He is a government leader visiting a foreign country.

4.

He is leaving for a country in war, a country with strict foreign exchange control policies, or a country with bad financial conditions or in financial turmoil.

5.

Other particular circumstances.

III.

In consideration of the incorporation of foreign currency pay orders and foreign currency negotiable securities into the banking management system, the specific administrative measures shall be separately formulated, and the persons entering and exiting the territory who carry the above said documents and securities shall no longer be subject to the administration of the customs.

IV.

The State Administration of Foreign Exchange and the customs at all levels shall arrange for the education and trainings on the Interim Measures for the Administration of Carrying Foreign Currency Cash for Persons Entering or Exiting the Territory, and make an extensive propaganda through various news media for the implementation thereof. After receiving the Circular, all branch bureaus of the State Administration of Foreign Exchange shall transmit it as soon as possible to the sub-branch bureaus, designated foreign exchange banks and relevant entities under their respective jurisdiction; the designated foreign exchange banks shall transmit it as soon as possible to the branches and sub-branches under their respective jurisdiction; and all customs directly under the General Administration of Customs shall transmit it as soon as possible to the customs under their respective jurisdiction. In case of any question in the implementation, please timely inform it to the Department of Current Account Administration under the State Administration of Foreign Exchange or the Supervision Department under the General Administration of Customs.

Attachment: Interim Measures for the Administration of Carrying Foreign Currency Cash for Persons Entering or Exiting the Territory

Attachment:Interim Measures for the Administration of Carrying Foreign Currency Cash for Persons Entering or Exiting the Territory

Article 1

The Measures are hereby formulated in accordance with the Customs Law of the People's Republic of China and the Regulation of the People's Republic of China on the Administration of Foreign Exchanges to facilitate the foreign-related contacts of those who enter or exit the territory, and regulate the acts of carrying foreign currency cash to enter or exit the territory of the persons concerned.

Article 2

Meanings of the following terms in the Measures are as follows:

"Foreign currency" means a convertible currency exchanged by a Chinese domestic bank by quotation (see Attachment 1);

"Cash" means a paper and coin foreign currency;

"Bank" means a Chinese-funded bank or foreign-funded bank or its branch, which is approved or recorded by the People's Bank of China to engage in the business of settlement and sale of foreign exchanges or the business of conversion or savings of foreign currencies;

"Person exiting or entering the territory" means a resident individual or non-resident individual who exits or enters the territory;

"Multiple returns on the same day" mean a person exits or enters the territory for more than one time within one day;

"Multiple returns within a short period" mean a person exits or enters the territory for more than one time within 15 days.

Article 3

If the foreign currency cash carried by a person entering the territory exceed the amount equal to 5,000 USD, he shall declare to the customs in writing, except for multiple returns on the same day or multiple returns within a short period.

Article 4

If the foreign currency cash carried by a person exiting the territory does not exceed the amount of foreign currency cash declared at his latest entry, the person need not apply for the "Permit for Carrying Foreign Exchanges to Exit the Territory" (hereinafter referred to as the "Permit for Carrying Foreign Exchanges", see Attachment 2), and the customs may inspect and release him on the basis of the records on the amount declared at his latest entry.

Article 5

If a person exiting the territory carries foreign currency cash for which there is no record or whose amount exceeds the recorded amount of the declared foreign currency cash at his latest entry, he shall be inspected and released in accordance with the following provisions:

1.

If the amount carried by a person exiting the territory is not more than the amount equal to 5,000 USD, he need not apply for the "Permit for Carrying Foreign Exchanges", and the customs may release him, except for multiple returns on the same day or multiple returns within a short period.

2.

If the amount carried by a person exiting the territory is more than the amount equal to 5,000 USD but not more than 10,000 USD, the person shall apply to the bank for the "Permit for Carrying Foreign Exchanges". When he exits the territory, the customs shall inspect and release him if he presents the "Permit for Carrying Foreign Exchanges" affixed with a seal of the bank. If more than one such permit are used, and the total amount in the Permits for Carrying Foreign Exchanges affixed with seals of the bank exceeds the amount equal to 10,000 USD, the customs shall not release him.

3.

If the amount carried by a person exiting the territory is more than the amount equal to 10,000 USD, he shall apply to the branch or sub-branch bureau of the State Administration of Foreign Exchange (hereinafter referred to as the foreign exchange bureau) at the locality of his deposit bank or exchange-selling bank for the "Permit for Carrying Foreign Exchanges", and the customs shall inspect and release him upon the "Permit for Carrying Foreign Exchanges" affixed with the seal of the foreign exchange bureau.

Article 6

A person entering or exiting the territory with "multiple returns on the same day" or with "multiple returns within a short period" who carries foreign currency shall be inspected and released in accordance with the following provisions:

1.

A person entering or exiting the territory with multiple returns on the same day must declare to the customs in writing the foreign currency cash he carries into the territory. When he exits the territory, the customs shall inspect the foreign currency cash and release him according to the records on the amount declared at his latest entry. If there is no record of the foreign currency cash or the amount exceeds the recorded amount declared at his latest entry, he may carry the foreign currency cash of not more than the amount equal to 5,000 USD when he exits the territory for the first time on the very day, and need not apply for the "Permit for Carrying Foreign Exchanges", and the customs may release him. However, if the amount of foreign currency cash carried out of the territory is more than the amount equal to 5,000 USD, the customs shall not release him. When the person exits the territory for the second time or more on the very day, he may carry foreign currency cash of not more than the amount equal to 500 USD, and need not apply for the "Permit for Carrying Foreign Exchanges", the customs may release him. However, if the amount of foreign currency cash carried out of the territory is more than the amount equal to 500 USD, the customs shall not release him.

2.

A person entering or exiting the territory with multiple returns within a short period must declare to the customs in writing the foreign currency cash he carries into the territory. When he exits the territory, the customs shall inspect and release him according to the records on the amount declared at his latest entry. If the foreign currency cash for which there is no record or whose amount exceeds the recorded amount declared at his latest entry, he may carry foreign currency cash of not more than the amount equal to 5,000 USD when he exits the territory for the first time within 15 days, and need not apply for the "Permit for Carrying Foreign Exchanges", the customs may release him. However, if the amount of foreign currency cash carried out of territory is more than the amount equal to 5,000 USD, the customs shall not release him. When the person exits the territory for the second time or more within 15 days, he may carry foreign currency cash of not more than the amount equal to 1,000 USD, and need not apply for the "Permit for Carrying Foreign Exchanges", the customs may release him. However, if the amount of foreign currency cash carried out of the territory is more than the amount equal to 1,000 USD, the customs shall not release him.

Article 7

A person exiting the territory may carry foreign currency cash with him, and may also carry foreign currencies out of the territory in accordance with the provisions by means of remitting the foreign currencies out through the bank or carrying drafts, travel checks, and international credit cards, etc., provided that he may not carry foreign currency cash of more than the amount equal to 10,000 USD out of the territory in principle. If due to a particular circumstance, he indeed needs to carry foreign currency cash of more the amount equal to 10,000 USD out of the territory, he shall apply to the foreign exchange bureau at the locality of his deposit bank or exchange-selling bank for the "Permit for Carrying Foreign Exchanges".

Article 8

A person exiting the territory who applies to the bank for the "Permit for Carrying Foreign Exchanges" shall, if carrying the foreign currency cash drawn from the foreign exchange deposit account of his own or of his lineal relative, bring the passport, the Permit To and From Hong Kong and Macao, or the Permit To and From Taiwan, and the valid visa or permission stamp, as well as the proof of deposits to apply to the deposit bank; if he carries foreign currency cash out of the territory after purchasing the foreign exchanges, he shall bring the prescribed documents on purchasing foreign exchange to apply to the exchange-selling bank.

A bank shall, after verifying the documents provided by the person exiting the territory as inerrable, check and issue the "Permit for Carrying Foreign Exchanges" to him, and preserve the photocopies of the above documents for 5 years for future references.

Article 9

A bank shall not check and issue the "Permit for Carrying Foreign Exchanges" to a person exiting the territory with the amount exceeding that in the proof of deposits in itself or that of purchased foreign exchanges. The amount of each "Permit for Carrying Foreign Exchanges" checked and issued by the bank shall not exceed the amount equal to 10,000 USD, but may be lower than 5,000 USD.

Article 10

If a person exiting the territory applies to the foreign exchange bureau for the "Permit for Carrying Foreign Exchanges", he shall bring the written application, the passport, the Permit To and From Hong Kong and Macao, or the Permit To and From Taiwan, and the valid visa or permission stamp, the proof of bank deposits, as well as the documents proving that he indeed needs to carry foreign currency cash of more than the amount equal to 10,000 USD out of the territory, to apply to the foreign exchange bureau at the locality of his deposit bank or exchange-selling bank.

The foreign exchange bureau shall, after verifying the documents submitted by the person exiting the territory as inerrable, issue the "Permit for Carrying Foreign Exchanges" to him if he is qualified for the conditions, and preserve the photocopies of the written application and other documents for 5 years for future references.

Article 11

The "Permit for Carrying Foreign Exchanges" shall be affixed with the "Approval Seal of the State Administration of Foreign Exchange for Carrying Foreign Exchanges out of the Territory" or the "Special Seal of the Bank for Carrying Foreign Exchanges out of the Territory", and be valid for once within 30 days as of its issuance.

Article 12

The "Permit for Carrying Foreign Exchanges" shall be in three sheets. If the original "Permit for Carrying Foreign Exchanges" was issued by the bank, the first sheet shall be delivered by the carrier to the customs for inspection and preservation, the second sheet shall be delivered by the issuing bank by month to the local foreign exchange bureau for preservation, and the third sheet shall be preserved by the issuing bank. If the original "Permit for Carrying Foreign Exchanges" was issued by the foreign exchange bureau, the first sheet be delivered by the carrier to the customs for inspection and preservation, while the second and the third sheets shall be preserved by the issuing foreign exchange bureau.

Article 13

If a person exiting the territory loses the "Permit for Carrying Foreign Exchanges", and the original "Permit for Carrying Foreign Exchanges" was issued by the bank, he shall, before exiting the territory, bring the documents prescribed in Article 8 to the original issuing bank to file a reapplication, and the original issuing bank shall, after verifying the documents provided by him and the originally preserved documents as inerrable, issue to him the "Proof on Reapplication" (see Attachment 3). The person entering or exiting the territory shall re-apply for the "Permit for Carrying Foreign Exchanges" in the foreign exchange bureau at the locality of the bank with the "Proof on Reapplication" issued by the bank, or in the bank with the approval document of the foreign exchange bureau, while the bank shall add the word of "Reissued" in the reissued "Permit for Carrying Foreign Exchanges"; if the original "Permit for Carrying Foreign Exchanges" was issued by the foreign exchange bureau, the said person shall, before exiting the territory, bring the reapplication and the documents prescribed in Article 10 to apply to the original issuing foreign exchange bureau, and the foreign exchange bureau shall, after verifying the documents provided by him and the originally preserved documents as inerrable, reissue the "Permit for Carrying Foreign Exchanges" to him, and add the word of "Reissued" in the reissued "Permit for Carrying Foreign Exchanges". No foreign exchange bureau or bank is permitted to reissue the "Permit for Carrying Foreign Exchanges" to a person who has left the territory.

Article 14

A bank shall, within 5 days at the end of each month, submit the information of the last month on issuing the "Permit for Carrying Foreign Exchanges" (see Attachment 4) to the foreign exchange bureau at its locality through the "Statistical Table on Carrying Foreign Currency Cash to Exit the Territory".

Article 15

Each foreign exchange bureau shall collect the information within its jurisdiction on the issuance by foreign exchange bureaus and banks of the "Permit for Carrying Foreign Exchanges", and submit such information to the State Administration of Foreign Exchange by "Statistical Table on Carrying Foreign Currency Cash to Exit the Territory" within 10 days at the end of each month.

Article 16

A bank shall, strictly in accordance with the Measures, check and issue the "Permit for Carrying Foreign Exchanges" to the persons entering or exiting the territory. Any bank violating the Measures shall be imposed upon the punishments of warning, circularized criticism, fine and cancellation of the "Permit for Carrying Foreign Exchanges" by the foreign exchange bureau.

Article 17

If a person entering or exiting the territory carries foreign currency cash in violation of the Measures, he shall be punished by the customs in accordance with the relevant provisions.

Article 18

If a person entering or exiting the territory carries such foreign currency pay orders as drafts, travel checks, international credit cards, bank deposits, and postal savings deposits, etc. or such foreign currency negotiable securities as government bonds, corporate bonds, stocks, etc., he shall be temporarily not under the administration of the customs.

Article 19

The power to interpret the Measures shall remain with the State Administration of Foreign Exchange and the General Administration of Customs.

Article 20

The Measures shall enter into force as of September 1, 2003. The Provisions on the Administration of Carrying Foreign Exchanges to Enter or Exit the Territory, which were jointly promulgated by the State Administration of Foreign Exchange and the General Administration of Customs on December 31, 1996 and which entered into force on February 10, 1997; the Circular on the Relevant Issues Concerning Starting to Use the New Type of Permit for Carrying Foreign Exchanges to Exit the Territory, which were jointly promulgated by the State Administration of Foreign Exchange and the General Administration of Customs on June 17, 1999, and which entered into force on August 1, 1999; the Circular on the Relevant Operational Issues Concerning Starting to Use the New Type of Permit for Carrying Foreign Exchanges to Exit the Territory", which were promulgated by the State Administration of Foreign Exchange on June 14, 1999, and which entered into force on the same day; and the Circular on Strengthening the Administration of the Permit for Carrying Foreign Exchanges to Exit the Territory, which were promulgated by the State Administration of Foreign Exchange on October 25, 1999, and which entered into force on the same day, shall all be abrogated simultaneously.

Attachment:

1. Currencies Exchanged by Chinese Domestic Banks by Quotation (Omitted)

2. Permit for Carrying Foreign Exchanges to Exit the Territory" (Omitted)

3. Proof of Reapplication (Omitted)

4. Statistical Table on Carrying Foreign Currency Cash to Exit the Territory (Omitted)