Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Execution of the Circular Concerning the Relevant Issues of Software Exports

HuiFa [2001] No.28

February 22, 2001

The sub-administrations of the State Administration of Foreign Exchange; the departments of foreign exchange administration of Beijing and Chongqin; and the sub-administrations of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen:

In order to promote the software export enterprises to export their products and earn foreign exchange income, the relevant issues of the execution of item 7) of Article 1 of the Circular Concerning the Relevant Issues of Software Exports (WaiJingMaoJiFa [2000] No.680 ) (hereinafter referred to as the Circular) promulgated jointly by the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Information Industry, the State Administration of Taxation, the General Administration of Customs, the State Administration of Foreign Exchange and the State Administration of Statistics are hereby defined as follows:

1.

The domestic-funded software enterprises of self-management export (hereinafter referred to as "enterprises") that meet the conditions for account opening as provided by the Circular shall, when applying to the foreign exchange administrations for opening accounts of foreign exchange settlement, provide the "Certificate of Cognizance of Software Enterprise" issued by the competent department under the Ministry of Information Industry, apart from providing the relevant materials as provided for in the Procedures for the Keeping of Limited Amount of Foreign Exchange Income by Domestic-funded Enterprises.

2.

When making the examination and verification of account opening of an enterprise, the foreign exchange administration shall examine and verify whether the enterprise is in the "List of Honorable Enterprises", and shall determine the maximum limit of the account on the basis of 15% of the sum of cancellation after verification of export earnings in foreign exchange of last year issued by the foreign exchange administration of the place where the enterprise is located. The sum cancelled after verification of export earnings in foreign exchange that is used to determine the limit shall be kept together with the materials for account opening, for the purpose of check and verification.

3.

The sub-administrations shall strictly take the sum cancelled after verification of export earnings in foreign exchange of last year that actually occurred to the enterprise as the base, and determine the limit of the account of foreign exchange settlement according to the prescribed proportion. The limit may not be broken without the approval of the general administration.

The sub-administrations shall transmit this Circular to their branches as soon as possible after receiving it.