Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Adjusting the Policies for Domestic Resident Individuals to Purchase Foreign Exchanges under Current Accounts

HuiFa [2003] No.104

September 1, 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; all designated foreign exchange banks:

In order to adapt to the new situation of opening to the outside world, better satisfy the real demands of domestic resident individuals for using foreign exchanges under current accounts, facilitate and regulate resident individuals' purchase of foreign exchanges from banks, and curb illegal foreign exchange transactions, the State Administration of Foreign Exchange decides to adjust the existing policies for domestic resident individuals' purchase of foreign exchanges under current accounts, and revise relevant administrative provisions. The notice on relevant issues is hereby given as follows:

I.

The guiding limit for domestic resident individuals (hereinafter referred to as resident individuals) to purchase foreign exchanges under current accounts is raised, and the guiding limit for purchasing foreign exchanges in the "Detailed Implementing Rules on the Administration of Purchase of Foreign Exchanges by Domestic Resident Individuals" promulgated on July 11, 2002 (HuiFa [2002] No. 68) (hereinafter referred to as the "Detailed Rules") is adjusted as follows:

(1)

The guiding limit for purchasing foreign exchanges for actual exit from the territory (note: excluding border tour): If a resident individual needs to purchase foreign exchanges due to outbound travel, going on a pilgrimage, visiting relatives, overseas hospitalization, commercial investigation, employment, settling down abroad, international foreign exchanges, overseas trainings, overseas study, provision of labor service abroad, etc., and the period for him to stay out of the territory as indicated on his visa is within a half year, he may purchase foreign exchanges at the equivalent amount of 3,000 USD from the bank each time; while if the period for him to stay out of the territory is half a year or more, he may purchase foreign exchanges at the equivalent amount of 5,000 USD from the bank each time.

(2)

The guiding limit for purchasing foreign exchanges for non-exit from the territory: If a resident individual does not exit from the territory, but needs to purchase foreign exchanges due to payment of membership fee of an overseas international organization, remedies to overseas lineal relatives, mail order from abroad, etc., the guiding limit for purchasing foreign exchanges shall be uniformly adjusted to an equivalent amount of 3,000 USD per person per time.

(3)

Article 21 of the "Detailed Rules" is cancelled. The guiding limit for children at or below 14 to purchase foreign exchanges shall no longer be halved, instead, the foreign exchanges shall be supplied in full amount pursuant to the above guiding limit.

II.

If the amount of foreign exchanges purchased by a resident individual before exiting the territory is below the above prescribed guiding limit, the designated foreign exchange bank shall examine it for the sale of foreign exchanges; if the resident individual needs to exceed the above prescribed guiding limit to purchase foreign exchanges, he may not purchase the foreign exchanges from the designated foreign exchange bank until the branch or sub-branch of the State Administration of Foreign Exchange (hereinafter referred to as the foreign exchange bureau) has examined the authenticity.

III.

For a region where no foreign exchange bureau is established, the foreign exchange bureau at the next higher level shall assess the banks in this region which are qualified to sell foreign exchanges to individuals, and may, on the basis of assessment, authorize qualified banks to examine, on behalf of the foreign exchange bureau, the foreign exchanges purchased in excess of the guiding limit. Each branch and sub-branch shall submit the name list of the authorized banks to the State Administration of Foreign Exchange for record within one month after being formally authorized.

IV.

The scope of supplying foreign exchanges to those who study abroad at their own expenses is enlarged, and the relevant policies in the "Detailed Rules" for those who study abroad at their own expenses to purchase foreign exchanges are adjusted as follows:

(1)

The scope of supplying foreign exchanges to those who go to study abroad at their own expenses is enlarged from those who study for foundation programs or above to all persons going to study abroad.

(2)

Those who go abroad to study at their own expenses may, upon strength of the prescribed documents of proof, purchase foreign exchanges at the bank for their tuition and living expenses. The bank shall, with regard to anyone who is able to provide the documents of proof on tuition and living expenses, and who purchases foreign exchanges at the amount of not more than the equivalent of 20,000 USD in each school year, sell foreign exchanges at the amount listed on the documents of proof; and shall, with regard to anyone who purchases foreign exchanges in excess of the equivalent of 20,000 USD, sell foreign exchanges upon the approval document of the foreign exchange bureau after examination. With regard to anyone who is unable to provide the documents of proof on tuition and living expenses, the foreign exchanges shall be sold within the guiding limit prescribed in Paragraph 1 of Article 1 of the Circular.

V.

Sale of foreign exchanges to the resident individuals who travel to the boarder areas of adjacent countries. If a resident individual travel to the boarder area of an adjacent country, the guiding limit for him to purchase foreign exchanges shall be the equivalent of 100 USD per day, and the maximum limit for him to purchase foreign exchanges shall be the equivalent of 500 USD per day.

VI.

The administrative provisions on purchasing foreign exchanges for outbound travel are revised.

(1)

If a resident individual purchases foreign exchanges from the bank for the purpose of outbound travel, the guiding limit for him to purchase the foreign exchanges shall no longer include the group fee charged by the travel agency. The travel agency may separately purchase foreign exchanges from the bank to pay the group fee.

(2)

The documents of proof in the "Detailed Rules", which need to be provided for the purchase of foreign exchanges for outbound travel, are simplified. A resident individual may bring the passport for private purpose and the valid visa (a group visa holder may bring a photocopy of the group visa confirmed by the travel agency with a seal), and the identification card or permanent residence book to go through the formalities of purchasing foreign exchanges in the bank.

VII.

If a resident individual holds the multiple-return visa (or permission stamp), he may, within the guiding limit for purchasing foreign exchanges as prescribed in Article 1 of the Circular, purchase foreign exchanges from the bank, provided that the interval between two purchases is no less than 30 days.

VIII.

With respect to the consumption or expenditure of a resident individual under overseas current accounts, including the part over the guiding limit, the resident individual is permitted to go through the formalities of re-purchasing foreign exchanges in accordance with the following provisions after he has come back into the territory on the premise that he can prove the authenticity:

(1)

Any resident individual holding a foreign currency credit card issued by a domestic bank is permitted to, either with his own foreign exchanges or through purchasing foreign exchanges in a card-issuing bank with the credit card transaction bills issued by the card-issuing bank, the identification card or permanent residence book and other documents of proof, repay the foreign exchange advanced money he has overdrawn abroad.

(2)

A resident individual who is unable to provide foreign exchange guaranty bonds before applying for the foreign currency credit card shall be permitted to, before exiting the territory, open a foreign currency credit card with its own RMB deposits as the guaranty bonds.

(3)

A resident individual who is unable to hold his card for consumption or expenditure abroad due to a particular reason may, with respect to his foreign exchange expenditure under current accounts such as payment of tuition for going abroad to study at his own expenses, overseas hospitalization expenses, etc., bring the relevant documents of proof on consumption or expenditure abroad to the foreign exchange bureau for examination of authenticity, and then bring the approval document of the foreign exchange bureau and other relevant documents of proof to the bank to go through the formalities of re-purchasing foreign exchanges.

(4)

The method of write-off after verification after a resident individual has come back into the territory to re-purchase foreign exchanges shall be automatic write-off.

IX.

Each designated foreign exchange bank shall, when selling foreign exchanges to resident individuals, strictly comply with the Circular and other relevant provisions to use the management information system for domestic resident individuals to purchase foreign exchanges. In consideration that the system is in adjustment at present, the re-purchase of foreign exchanges under the relevant credit cards in the Circular is temporarily not incorporated into the system. The specific time of incorporation shall be separately notified by the State Administration of Foreign Exchange.

Before the re-purchase of foreign exchanges under the credit card is incorporated into the management information system for domestic resident individuals to purchase foreign exchanges, each bank selling foreign exchanges shall, within 10 working days at the beginning of each month, submit its information of the preceding month on re-purchase of foreign exchanges under the credit card to the State Administration of Foreign Exchange.

X.

The Circular shall come into force on October 1, 2003. Other matters concerning the administration of purchase of foreign exchanges by resident individuals, which are not involved in the Circular, shall still be subject to the governance of the "Detailed Rules". In case of any previous provision in conflict with the Circular, the Circular shall prevail.

Each branch shall, after receiving the Circular, transmit it to the central sub-branches and foreign-funded banks under its jurisdiction as soon as possible; each Chinese-funded designated foreign exchange bank shall, after receiving the Circular, transmit to its branches as soon as possible. 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.