Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Abrogating Some Foreign Exchange Regulations

HuiFa [1999] No.289

September 9, 1999

All branch of State Administration of Foreign Exchange,foreign exchange department of Beijing and Chongqing, sub-branch of Dalian, Qingdao, Ningbo, Xiamen, Shenzhen, all China-invested designated foreign exchange banks:

In accordance with the open policy, the encouragement to collect export receipts and the improvement of investment environment, SAFE has been clarifying exchange regulation since 1997. So far, SAFE has decided to abrogate some unnecessary exchange regulations. And now notify the following:

1.

To simplify the collection and the book-in procedures for export receipts and to encourage the exporting entities' full and timely collection of receipts, with the context of the improving administration on current account transactions, SAFE will abrogate two regulations as of October 1, 1999. The two regulations are "Regulations on the Administration of Foreign Exchange Sales for Current Account" (promulgated on July 25, 1997 and implemented since September 1, 1997) and "Circular on Simplifying Selling or Booking-in Procedure of Foreign Exchange in 'Regulations on the Administration of Foreign Exchange Sales for Current Account'" (promulgated on October 7, 1998 and implemented since September 15, 1998). As of October 1, 1999, the collection or book-in of current account transaction receipts can be directly finished in designated foreign exchange banks at any amount or any means of payments.

2.

Since the computerized network for declaration forms checking has been established and operated, the loopholes of fraud purchase of foreign exchange in other places than the registration place has been eliminated. To simplify the purchase and payment of foreign exchange in other places than the registration place, SAFE will abrogate the "Circular on Clarifying the Procedures for the Sales of and Payments in Foreign Exchange in Other Places Than the Registration Place" (promulgated by SAFE and implemented on November 11, 1998). As for the purchase and payment of foreign exchange in other places than the registration place, "Regulations on Authenticity Checking for Verification and Cancellation of Import Payment" and "Regulations on Some Issues on Standardizing the Trade Agent Business" will be complied with and the filing form for the imports payments issued by SAFE will be required.

3.

To unify the administration of external debts, SAFE will abrogate the "Circular on Strengthening the Administration of the Verification of External Debt Service" (promulgated by SAFE and implemented on June 22, 1998). As of October 1, 1999, with the context that the "Circular on Some Issues Concerning Strengthening the Administration of Foreign Exchange under Capital Accounts" (promulgated by SAFE and implemented on September 15, 1998) and the "Circular on Relevant Issues Concerning Improving the Administration of Foreign Exchange under Capital Accounts" (promulgated by SAFE and implemented on January 7, 1999) have reiterated and clarified the requirements for the verification of external debt service. External debt service must comply with the "Circular on Some Issues Concerning Strengthening the Administration of Foreign Exchange under Capital Accounts", "Circular on Relevant Issues Concerning Improving the Administration of Foreign Exchange under Capital Accounts" and the "Provisional Regulations of External Debt Statistics and Supervision" and its implementation rules.

All the substation shall transmit the notification to the dominated branch after receiving it, All the China-invested designated foreign exchange banks shall transmit it to the dominated branch.