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| Category | BANKING | Organ of Promulgation | The State Council | Status of Effect | In Force |
| Date of Promulgation | 1997-01-14 | Effective Date | 1997-01-14 |
|
Decision of the State Council on Amending the Regulations of the People's Republic of China on Foreign Exchange Control |
|---|
The State Council decides to amend the Regulations of the People's
Republic of China on Foreign Exchange Control as follows:
1. A new article is added as Article 5: "The State shall not exercise
restrictions on the frequent international payment and transfer."
2. The first paragraph of Article 13 is amended as the first paragraph of
Article 14 as follows: "Foreign exchange needed by individuals on private
business shall be bought within the specified limits. Those beyond the
specified limits shall be applied for to the exchange control department,
and may be converted when the exchange control department considers the
application truthful."
3. A new article is added as Article 15: "The profit arising from the
domestic property owned by individuals having moved to and resided in
foreign countries may, by presentation of specified certifying papers and
valid certificates, be converted at the authorized bank for dealing in
foreign exchange and be remitted or carried out of China."
4. Article 15 and Article 16 are merged and amended as Article 17 as
follows: "Legitimate incomes in Renminbi obtained by foreign institutions or
individuals in China may, when there is a need to remit them out of China,
be converted at the authorized bank for dealing in foreign exchange by
presentation of relevant certifying papers and certificates."
This Decision shall enter into force as of the date of promulgation.
The Regulations of the People's Republic of China on Foreign Exchange (Promulgated by Decree No.193 of the State Council of the People's Article 1 These Regulations are formulated for the purpose of Article 2 The exchange control department of the State Council and its Article 3 "Foreign exchange" mentioned in these Regulations means those (1) foreign currencies, including banknote and coins; (2) foreign currency payment instruments, including negotiable (3) foreign currency securities, including government bonds, corporate (4) Special Drawing Rights and European Monetary Units; and (5) other assets in foreign currency. Article 4 These Regulations shall be applicable to foreign exchange Article 5 The State shall not exercise restrictions on the frequent Article 6 The state shall adopt a system of statistics and reporting of Article 7 No circulation of, or valuation and settlement in, foreign Article 8 Any organization or individual shall be entitled to accuse and Organizations and individuals having rendered great service in accusing, Article 9 Foreign exchange receipts from current transactions by Article 10 Foreign exchange receipts from current transactions by Article 11 Foreign exchange needed for current transactions by domestic Article 12 Domestic institutions shall go through verification and Article 13 Personal foreign exchange may be held by the individuals The business in personal foreign exchange saving deposit shall abide by Article 14 Foreign exchange needed by individuals on private business Individuals carrying foreign exchange when leaving China shall go through Article 15 The profit arising from the domestic property owned by Article 16 Without the approval from the exchange control department, no Article 17 Legitimate incomes in Renminbi obtained by foreign Article 18 Foreign exchange remitted or carried in from outside China Article 19 Foreign exchange receipts from capital transactions by Article 20 Domestic institutions shall, in accordance with relevant Article 21 Domestic institutions wishing to make investment outside Article 22 The raising of foreign loans shall be handled in accordance Foreign loans raised by foreign investment enterprises shall be submitted Article 23 For issuing foreign currency bonds outside China, financial Article 24 The provision of external guarantee may be handled only by Article 25 The state shall adopt a registration system for external Domestic institutions shall go through external debt registration The exchange control department of the State Council shall be responsible Article 26 Where a foreign investment enterprise is legally terminated, Article 27 For launching foreign exchange business, financial Without approval from the exchange control department, no organization or Article 28 Financial institutions engaging in foreign exchange business Article 29 In operations of foreign exchange business, financial Article 30 The authorized bank for dealing in foreign exchange shall use Revolving foreign exchange fund for settlement of accounts of the Article 31 In operations of foreign exchange business, financial Financial institutions engaging in foreign exchange business shall file Article 32 For terminating the operation of foreign exchange business, Article 33 A single managed floating system on the basis of the supply The People's Bank of China shall, according to the prices shaped in the Article 34 Foreign exchange market transactions shall follow the Article 35 The currency varieties and forms of foreign exchange market Article 36 The authorized bank for dealing in foreign exchange and other The authorized bank for dealing in foreign exchange and other financial Article 37 The exchange control department of the State Council shall Article 38 The People's Bank of China shall exercise adjustment and Article 39 Whoever evades foreign exchange by committing any of the (1) in violation of provisions of the state, holding the foreign (2) failing to sell the foreign exchange to the authorized bank for (3) remitting or carrying foreign exchange out of China in violation of (4) carrying or sending by post foreign currency deposit certificates or (5) other acts of evading foreign exchange. Article 40 Whoever engages in illegal procurement of foreign exchange (1) in violation of provisions of the state, paying in Renminbi or with (2) paying domestic expenses for other persons in Renminbi while being (3) without the approval from the exchange control department, foreign (4) buying foreign exchange from the authorized bank for dealing in (5) other acts of illegally procuring foreign exchange; Article 41 Whoever engages in foreign exchange business without an Financial institutions engaging in foreign exchange business beyond the Article 42 The authorized bank for dealing in foreign exchange who fails Article 43 Financial institutions engaging in foreign exchange business Article 44 Domestic institutions committing any of the following acts in (1) raising foreign loans without authorization; (2) in violation of relevant provisions of the state, issuing foreign (3) in violation of relevant provisions of the state, providing external (4) other acts in violation of the control of external debts; Article 45 Domestic institutions illegally using foreign exchange under (1) valuating and settling in foreign currency in China; (2) providing pledge with foreign currency without authorization; (3) changing the uses of foreign exchange without permission; or (4) other circumstances involved in illegal use of foreign exchange; Article 46 Whoever buys and sells foreign exchange without permission or Article 47 Domestic institutions who, in violation of the administration Article 48 Domestic institutions who, in violation of the Article 49 Financial institutions engaging in foreign exchange business Article 50 Where any party concerned refuses to accept the penalty Article 51 Where any domestic institution violates provisions concerning Article 52 For the purpose of these Regulations, (1) "domestic institutions" mean enterprises, institutions, government (2) "the authorized bank for dealing in foreign exchange" means a bank (3) "individuals" mean either Chinese citizens or foreigners who reside (4) "foreign institutions in China" mean foreign diplomatic missions and (5) "foreign individuals in China" mean permanent personnel of foreign (6) "current transactions" mean transactions that occur frequently (7) "capital transactions" mean capital exporting and importing resulting Article 53 Foreign exchange control measures for bonded areas shall be Article 54 Foreign exchange control measures for frontier trade and Article 55 These Regulations shall enter into force on April 1, 1996.
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Control shall be republished after being correspondingly amended according
to this Decision.
Appendix: REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON FOREIGN
EXCHANGE CONTROL
Republic of China on January 29, 1996, amended and promulgated on January 14,
1997 according to the Decision of the State Council on amending the
Regulations of the People's Republic of China on Foreign Exchange Control)
Chapter I General Provisions
strengthening the foreign exchange control, keeping international payments
equilibrium and promoting the healthy development of the national economy.
branches (hereinafter referred to as the exchange control department) shall
exercise foreign exchange control according to law, and be responsible for
the implementation of these Regulations.
payment instruments and assets in foreign currency which may be used for
international payments, including the following:
securities, bank deposit certificates and postal savings certificates, etc.;
bonds and stocks, etc.;
receipts and disbursements and foreign exchange business operations by either
domestic institutions and individuals or foreign institutions and individuals
in China.
international payment and transfer.
the international balance of payment. All organizations and individuals
involved in international payments shall take statistics and make reports on
their international balance of payment.
currencies shall be allowed in the territory of the People's Republic of
China.
expose the acts and activities that violate the exchange control.
exposing, or assisting in the investigation of, violations of exchange
control shall be awarded by the exchange control department, and the latter
shall keep things secret.
Chapter II Foreign Exchange in Current Transactions
domestic institutions must be transferred to China and may not be held abroad
in violation of relevant provisions of the state.
domestic institutions shall be sold to the authorized bank for dealing in
foreign exchange in accordance with provisions of the State Council
concerning the administration on foreign exchange settlements, sales and
payments or, with an approval, a foreign exchange account may be opened for
that with the authorized bank for dealing in foreign exchange.
institutions shall be paid through buying from the authorized bank for
dealing in foreign exchange by presentation of valid certificates and
business papers in accordance with provisions of the State Council concerning
the administration on foreign exchange settlements, sales and payments.
cancellation formalities for their foreign exchange receipts from export and
foreign exchange payments for import in accordance with provisions of the
state concerning the administration on verification and cancellation of
foreign exchange receipts from export and foreign exchange payments for
import.
themselves, or they may also be deposited in the bank or sold to the
authorized bank for dealing in foreign exchange.
the principle of voluntariness in depositing, freedom of withdrawal, interest
on every deposit and keeping in secret for the depositors.
shall be bought within the specified limits; those beyond the specified
limits may be applied for to the exchange control department, and may be
converted when the exchange control department considers the application
truthful.
the declaration formalities with the customs; those carrying foreign
exchange exceeding the specified limits shall, in addition, present valid
certificates to the customs.
individuals having moved to and resided in foreign countries may, by
presentation of specified certifying papers and valid certificates, be
converted at the authorized bank for dealing in foreign exchange and be
remitted or carried out of China.
foreign exchange assets in forms of foreign currency payment instruments or
foreign currency securities, etc., which are held by Chinese citizens
residing in China, may be carried or sent by post out of China.
institutions or individuals in China may, when there is a need to remit them
out of China, be converted at the authorized bank for dealing in foreign
exchange by presentation of relevant certifying papers and certificates.
by foreign institutions or individuals in China may be held by themselves,
deposited in the bank or sold to the authorized bank for dealing in foreign
exchange. They may also be remitted or carried out of China by presentation
of valid certificates.
Chapter III Foreign Exchange in Capital Transactions
domestic institutions shall be transferred to China, except the State Council
has provisions otherwise.
provisions of the state, open foreign exchange accounts with the authorized
bank for dealing in foreign exchange for their foreign exchange receipts from
capital transactions; for selling said receipts to the authorized bank for
dealing in foreign exchange, an approval from the exchange control department
shall be obtained in advance.
China shall, before applying to the competent department for examination and
approval, have their sources of foreign exchange funds examined by the
exchange control department; after obtaining the approval, they shall go
through the fund remittance formalities in accordance with provisions of the
State Council concerning the foreign exchange control relating to external
investment.
with relevant provisions of the state by government departments designated by
the State Council or by financial institutions or enterprises approved by the
exchange control department of the State Council.
to the exchange control department for the record.
institutions shall apply to the exchange control department of the State
Council for approval, and the issuance shall be handled in accordance with
relevant provisions of the state.
the financial institutions and enterprises which are qualified according to
relevant provisions of the state and, for the provision, an approval from the
exchange control department shall be obtained in advance.
debts.
procedures in accordance with provisions of the State Council concerning the
external debt statistics and monitoring.
for the nationwide statistics and monitoring of external debts, and shall
publish the external debt situation regularly.
among the assets after liquidation and taxation in accordance with relevant
provisions of the state, the Renminbi owned by the foreign party may be
converted at the authorized bank for dealing in foreign exchange and remitted
or carried out of China; the foreign exchange owned by the Chinese party
shall all be sold to the authorized bank for dealing in foreign exchange.
Chapter IV Foreign Exchange Business of Financial Institutions
institutions must apply for approval to the exchange control department and
obtain a foreign exchange business license.
individual may engage in foreign exchange business. Financial institutions
with the approval for foreign exchange business operations may not engage in
business which are beyond the approved scope.
shall open foreign exchange accounts for their customers and handle relevant
foreign exchange business in accordance with relevant provisions of the state.
institutions shall deposit reserves for foreign exchange deposit in
accordance with relevant provisions of the state, abide by provisions
concerning the control of foreign exchange balance sheet ratio, and establish
reserves for bad debts.
their owned capital for the payment of Renminbi needed in the business of
exchange settlement.
authorized bank for dealing in foreign exchange shall be managed within a
proportional range, which shall be appraised and fixed in the light of actual
situation by the People's Bank of China.
institutions shall subject themselves to the inspection and supervision by
the exchange control department.
with the exchange control department their foreign exchange balance sheets,
foreign exchange profit and loss statements and other financial accounting
statements and data.
financial institutions shall apply to the exchange control department for
approval. Financial institutions approved to terminate the operation of
foreign exchange business shall make liquidation of foreign exchange
creditor's rights and debts, and hand in the foreign exchange business
Chapter V Renminbi Exchange Rates and Exchange Market
and demand in the market shall be adopted to the Renminbi exchange rates.
exchange market among banks, publish the exchange rates between Renminbi and
major foreign currencies.
principle of openness, fairness, impartiality and good faith.
transactions shall be specified and adjusted by the exchange control
department of the State Council.
financial institutions engaging in foreign exchange business are transactors
in the foreign exchange market among banks.
institutions engaging in foreign exchange business shall determine the
foreign exchange buying and selling prices for their customers and handle
the foreign exchange business according to the rates and floating ranges
published and specified by the People's Bank of China.
exercise supervision and administration on the foreign exchange market
throughout the country according to law.
control with regard to the foreign exchange market according to the needs of
the monetary policies and the fluctuations of the foreign exchange market.
Chapter VI Legal Responsibilities
following acts shall be ordered to transfer the foreign exchange back to
China within a specified time with a compulsory buying and exchanging of said
foreign exchange and a fine from 30 per cent to five times the evaded amount
imposed on by the exchange control department, or be investigated for the
criminal responsibility if a crime is constituted:
exchange abroad without authorization;
dealing in foreign exchange in accordance with provisions of the state;
provisions of the state;
foreign currency securities out of China without an approval from the
exchange control department; or
by committing any of the following acts shall be given a warning with a
compulsory buying and exchanging of the procured foreign exchange and a fine
from 30 per cent to three times the amount procured imposed on by the
exchange control department, or be investigated for the criminal
responsibility if a crime is constituted:
physical goods for import or for others of the like which should be paid for
in foreign exchange;
repaid in foreign currency by those persons;
investors making investment in China with Renminbi or with goods and materials
purchased in China;
foreign exchange by cheating with false or invalid certificates, contracts
or documents; or
approval from the exchange control department shall be confiscated of their
illegal earnings with their illegal business forbidden by the exchange
control department, or be investigated for the criminal responsibility if a
crime is constituted.
approved scope without authorization shall be ordered to make corrections by
the exchange control department with confiscation of their illegal earnings,
if any, and a fine from one to five times the illegal earnings, or a fine
from 100,000 to 500,000 yuan if there is no illegal earnings. Where the
circumstances are serious or no corrections have been made within the
specified time, they shall be ordered to make consolidation or be revoked of
their foreign exchange business licenses by the exchange control department.
Where a crime is constituted, they shall be investigated for the criminal
responsibility.
to handle the foreign exchange settlements or sales in accordance with
provisions of the state shall be ordered to make corrections and criticized
by circulating a criticism notice by the exchange control department with
confiscation of their illegal earnings and a fine from 100,000 to 500,000
yuan. Where the circumstances are serious, they shall be suspended from the
business of foreign exchange settlements and sales.
who violate the control of Renminbi exchange rates, foreign exchange loan and
deposit interest rates or foreign exchange market, shall be ordered to make
corrections and criticized by circulating a criticism notice by the exchange
control department with confiscation of their illegal earnings, if any, and a
fine from one to five times the illegal earnings, or a fine from 100,000 to
500,000 yuan if there is no illegal earnings. Where the circumstances are
serious, they shall be ordered to make consolidation or be revoked of their
foreign exchange business licenses by the exchange control department.
violation of the control of external debts shall be given a warning and
criticized by circulating a criticism notice with a fine from 100,000 to
500,000 yuan imposed on by the exchange control department, or be
investigated for the criminal responsibility if the a crime is constituted:
currency bonds outside China without authorization;
guarantee without authorization; or
any of the following circumstances shall be ordered to make corrections by
the exchange control department with a compulsory buying and exchanging,
confiscation of their illegal earnings and a fine not exceeding the value of
the foreign exchange amount involved in the illegal acts, or be investigated
for the criminal responsibility if a crime is constituted:
in a disguised form or scalps foreign exchange shall be given a warning by
the exchange control department with a compulsory buying and exchanging,
confiscation of their illegal earnings and a fine from 30 per cent to three
times the foreign exchange amount involved in the illegal acts. Where a crime
is constituted, they shall be investigated for the criminal responsibility.
on foreign exchange accounts, open foreign exchange accounts inside or
outside China without permission, lend or transfer their foreign exchange
accounts, use each other's foreign exchange accounts in collusion, or use the
foreign exchange accounts for other purposes than those approved shall be
ordered to make corrections and criticized by circulating a criticism notice
by the exchange control department with cancellation of their foreign
exchange accounts and a fine from 50,000 to 300,000 yuan.
administration of foreign exchange verification and cancellation, forge,
alter, lend, transfer or repeatedly use export verification and cancellation
certificates, or fail to go through the specified verification and
cancellation procedures shall be given a warning and criticized by
circulating a criticism notice by the exchange control department with
confiscation of their illegal earnings and a fine from 50,000 to 300,000
yuan. Where a crime is constituted, they shall be investigated for the
criminal responsibility.
who violate provisions of Article 28 or 38 of these Regulations shall be
ordered to make corrections and criticized by circulating a criticism notice
by the exchange control department with a fine from 50,000 to 300,000 yuan.
decision made by the exchange control department, he may, within 15 days from
receiving the notification of the penalty decision, apply for reconsideration
to the exchange control department at the immediately higher level, which
shall make a reconsideration decision within two months from receiving the
reconsideration application. The party concerned refusing to accept the
consideration decision may bring a suit with the people's court.
the foreign exchange control, in addition to the penalty on the institutions
according to provisions of these Regulations, the person in charge directly
responsible and other person directly responsible shall be given a
disciplinary sanction, or be investigated for the criminal responsibility if
a crime is constituted.
Chapter VII Supplementary Provisions
departments, public organizations and army units, including foreign
investment enterprises, within the territory of the People's Republic of
China;
that engages in the business of foreign exchange settlement and sales with
the approval of the exchange control department;
in the People's Republic of China up to one year;
consular posts in China, resident representative offices in China of
international organizations, foreign commercial representative offices in
China and resident business offices in China of foreign nongovernmental
organizations;
institutions in China, foreigners staying short terms in China, foreigners
engaged by domestic institutions and foreign students studying in China;
resulting in international receipt and payment, including trade receipt and
payment, service receipt and payment and unilateral transfer, etc.; and
in increasing or decreasing of assets and liabilities, including direct
investment, loans of all kinds and investment in securities, etc..
formulated separately by the exchange control department of the State
Council.
transactions between inhabitants on either side of the border shall be
separately formulated by the exchange control department of the State Council
according to the principles prescribed by these Regulations.
The Interim Regulations of the People's Republic of China on Foreign Exchange
Control promulgated by the State Council on December 18, 1980 and the rules
thereunder shall cease to be in force thereupon.
URL: http://www.asianlii.org/cn/legis/cen/laws/dotscoatrofec738