Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Simplifying the Procedures of Purchase and Payment of Foreign Exchange for Technology-introduction by Enterprises with Foreign Investment

Huifa [1999] No.319

September 28,1999

Branches of the State Administration of Foreign Exchange, Departments of Foreign Exchange of Beijing and Chongqing, Branches of Foreign Exchange of Dalian, Qingdao, Ningbo, Xiamen, Shenzhen, Assigned banks of foreign exchange with Chinese investment:

In accordance with relevant regulations of the State Council, SAFE will amend the existing "Circular on Strengthening the Administration on the Purchase and Payment of Foreign Exchange for Intangible Properties" (HuiGuanHanZi [98] No.092)(hereafter "the Circular") in order to simplify the purchase and payment in foreign exchange for technology-introduction by enterprises with foreign investment as follows:

1.

For the purchase and payment in foreign exchange for technology- introduction by enterprises with foreign investment, the Circular requires the checking of registration validation for technology and equipment introduction of joint venture issued by MOFTEC and its branches. Since this document, the approval documents for joint venture (the technology- introduction contract must be notified) issued by MOFTEC and its branches and the approval license of enterprises with foreign investment will be checked instead of registration validation. Other documents required by the Circular will remain for checking.

2.

The approved purchase and payment in foreign exchange for technology-introduction by enterprises with foreign investment prior to this document, the approval documents for joint venture, the confirmation letter (the technology-introduction contract must be notified) issued by MOFTEC and its branches and the approval license of enterprises with foreign investment will be checked instead of registration validation. Other documents required by the Circular will remain for checking.

3.

This Circular will come into effect as of the issuing. Other requirements in the Circular remain unchanged.

Every branch should transfer to the sub-branches and the local foreign investment banks as soon as possible after received the circular. Every assigned banks of foreign exchange with Chinese investment should transfer to its sub-branches as soon as possible. Any problems encountered in carrying out the circular should be replied to the State Administration of Foreign Exchange in time.