Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange (SAFE) on Distributing Instruction on Making Use of Information Technology to Improve BOP Statistics and Standard of Interface Between Monitoring System for BOP Statistics and Operation Systems of Financial Institutions

HuiFa [2002] No.17

February 9, 2002

SAFE branches and exchange administration offices in all provinces, autonomous regions and municipalities directly under the Central Government, SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and the headquarters of all designated Chinese-funded foreign exchange banks:

Making full use of information technology is the only way to transform our current statistical technology and means, and achieve higher efficiency and better data so as to adapt our work to the changing economic conditions both at home and abroad after China's entry into the WTO, bring BOP statistical means in line with international standard, and meet the need of macro-economic policy-making. Therefore, the SAFE has formulated the Instruction on Making Use of Information Technology to Improve BOP Statistics (see Attachment 1). The Instruction is now distributed to you together with the Standard of Interface between Monitoring System for BOP Statistics and Operation Systems of Financial Institutions (see Attachment 2). Please put them into practice in line with local characteristics and realities; and transmit them in time to foreign-funded banks under your jurisdiction.

Attachment:

1. Instruction on Making Use of Information Technology to Improve BOP Statistics

2. Standard of Interface between Monitoring System for BOP Statistics and Operation Systems of Financial Institutions (Omitted)

Attachment 1:Instruction on Making Use of Information Technology to Improve BOP Statistics

1.

Necessity and feasibility of improving BOP statistics by making use of information technology.

Since the Measures on BOP Statistical Reporting was put into practice on January 1,1996, the SAFE and its branches (hereinafter referred to as SAFE offices), banks, BOP reporters and other relevant parties have been working hard to improve the quality of BOP statistical data. Deadline of BOP reporting of external receipts was shortened on September 1,2001, a big stride forward in the timeliness of data submission. However, there still exist some difficulties and problems in BOP statistics. Our statistical measures have to be improved to keep abreast of new economic development both at home and abroad. Making full use of information technology is the only way to transform our current statistical technology and means, and achieve higher efficiency and better data so as to be in line with international practice and meet the need of macro-economic conditions.

Firstly, to enhance the quality and efficiency of BOP statistics by making use of information technology is a requisite to bring our BOP statistics in line with international standards and practices after China's entry into the World Trade Organization (WTO). After entering the WTO, China will be further integrated into the world economic community. Timely, accurate and comprehensive statistics plays an important role in bringing our economy further on the track of international practice and ensuring its sound and stable development. Secondly, making use of information technology is essential to enhance statistical quality, cut statistical costs, lighten the burden on BOP reporters and ensure data quality. Thirdly, digitalization has laid a foundation for improving statistical means through information technology. Popularization of computer networks, computerization of domestic banks' business and reporters' knowledge on information technology have laid a sound foundation for making use of information technology to improve BOP statistics. Finally, the current situation of domestic banking makes it possible to make use of information technology to improve BOP statistics. Some banks have made trials in this respect and proved it feasible.

2.

Instruction on online BOP statistical reporting and data interface transfer

The goal of making use of information technology is to replace manual filling-and-processing transmission with picking up electronic data from computers, and replace regularly and irregularly submitted data with almost real time data. Currently, collection of BOP information by means of online reporting and data interface transfer is encouraged. Details are as follows:

(1)

Channel for information transmission between a bank and its clients: on-line reporting (report of external receipts)

a.

Procedures

(a) The bank sends reporting advice and information to its clients (the reporters) directly from its operation system through the Internet;

(b) After filling an electronic reporting form upon the information transmitted by the bank from the Internet and vouchers related to the transaction, the reporter transmits the form to the bank through the Internet;

(c) After receiving the electronic reporting form, the operation system of the bank will check the reported information automatically. Qualified information will be transmitted to the SAFE office concerned through data interface. Unqualified information will be sent back to the reporters for timely revision or supplementation.

b.

Quality requirements

(a) Timeliness

Online reporting system shall be able to guarantee the bank to inform the reporter and the SAFE office concerned on the same day when receiving an external payment, guarantee the reporter to transmit accurate and comprehensive reporting information to the bank within the prescribed time and thus make it possible for the bank to transmit the information to the SAFE office concerned on the same day (or the next working day).

(b) Accuracy

The system shall have the function of logical judgment so as to check the reported data automatically in accordance with relevant requirements of indirect BOP reporting. For example, the received amount shall be no less than the total amount of foreign exchange, the sold foreign exchange and others in a transaction. The system shall be able to judge whether the transaction postscript has been filled, or whether such elements required by the operational procedures on indirect BOP reporting as "basic information statement of the institution", "institutional code", "transaction serial number" and "country" have been provided.

(c) Comprehensiveness

The operation system of the bank shall be able to generate relevant reporting information automatically, and have the function of reminding and warning so as to urge the reporter and the bank to report in time. Such technological measures as automatic check up may improve the comprehensiveness of BOP reporting.

(d) Safety

The backup function of the system shall be installed so as to protect the data from malfunction and disaster. The security function shall be installed so as to keep clients information from being given away.

(e) Practicality

The system shall ensure the convenience of reporting. It shall provide the reporters with general knowledge of BOP reporting, search of transaction serial numbers, scope and explanation of the numbers, and other help.

(f) Openness

The system shall be open and extensible. It shall have strong compatibility and extensibility.

(2)

Channel of information transmission between a bank and a SAFE office: data interface transfer

Data interface transfer refers to connection between the interface of the operation system of the bank and that of the monitoring system of BOP statistics of the SAFE office.

a.

External receipts reporting

a-i. Statement of external receipts:

The bank shall transmit the statement of external receipts to the SAFE office through the data interface transfer in good time on receiving a payment.

a-ii. Reporting form of external receipts:

a-ii-i. A bank that has realized online reporting shall transmit the online reported information of its clients to the SAFE office in time through the data interface transfer.

a-ii-ii. A bank that has not realized online reporting:

a-ii-ii-i. In case of external receipts under L/C and B/C, the bank shall be allowed to report on behalf of a reporter after signing an agreement with the reporter (indicating the legal responsibilities of each party) and then transmit the reporting information to the SAFE office in good time through the data interface transfer. When reporting on behalf of the reporter, the bank shall ascertain the nature of transaction based on relevant vouchers and certificates related to L/C and B/C. Predetermination of transaction serial number is not permitted.

a-ii-ii-ii. In case of external receipts under T/T:

For the receipts under T/T whose nature is relatively simple, reporting procedures for (a-ii-ii-i) "external receipts under L/C and B/C" shall be followed: The bank shall be allowed to report on behalf of the reporter after signing an agreement with the reporter (indicating the legal responsibilities of each party). For other kinds of receipts under T/T, the reporter shall report first, and then the bank shall input the reported information into the monitoring system of BOP statistics and transmit the information to the SAFE office concerned in good time.

b.

External payment

b-i. Combination of business vouchers and reporting forms is encouraged. The SAFE has designed a unified format for the combination. Any bank hoping to combine reporting form to its business vouchers may apply at a SAFE office for instruction and help. After the transition to combination is completed, paper-made reporting form of external payment [verification form of import payment (acting reporting form) excluded] shall be abolished. The bank does not have to record and transmit journal ledger of external payment. It shall only transmit the information ready in its operation system in the format of reporting form to the SAFE office through data interface transfer.

b-ii. A bank that has not combined reporting forms to business vouchers shall still fill in a journal ledger of external payment as required, and transmit the journal ledger and information reported by its clients to the SAFE office through data interface transfer.

3.

Principles and Requirements

(1)

Principles

a.

All SAFE branches and banks shall actively research, develop, and apply data interface transfer and online reporting system in accordance with their own capability and local economic development.

b.

During the course of developing data interface transfer and online reporting system, banks and SAFE branches shall keep each other fully informed. SAFE branches shall keep abreast of the progress of the development, and provide necessary guidance and help. Data interface transfer and on-line reporting system developed by a bank shall be inspected by the local SAFE office and meet the requirement of quality standard before putting into use.

c.

Data transfer shall not disturb the operation of current systems, normal data transmission and statistical quality.

d.

When upgrading and developing its operation system, the headquarters of each bank shall take account of BOP statistical reporting, foreign exchange purchase and sale statistics, foreign exchange account supervision, and etc, make overall arrangement so as to lay a foundation for the eventual achievement of data interface transfer between the operation system and monitoring system of BOP statistics.

(2)

Timetable

Starting from 2002, relevant entities shall work hard to carry this work forward so that data interface transfer between the SAFE offices in provinces and cities directly under State planning and the banks directly under their jurisdiction (foreign-funded banks included) can be realized on the whole in one or two years. Mean while, banks with massive foreign exchange business and SAFE branches concerned are encouraged to develop online reporting system.