IMPLEMENTATION RULES FOR THE MEASURES FOR THE ADMINISTRATION OF VERIFICATION AND WRITING-OFF OF EXPORT PROCEEDS IN FOREIGN EXCHANGE

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IMPLEMENTATION RULES FOR THE MEASURES FOR THE ADMINISTRATION OF VERIFICATION AND WRITING-OFF OF EXPORT PROCEEDS IN FOREIGN EXCHANGE

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State Administration of Foreign Exchange

Implementation Rules for the Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange

HuiFa [2003] No.107

September 8, 2003

Chapter 1 General Provisions

Article 1

The present Implementation Rules are hereby enacted for the purpose of earnestly implementing the Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange (HuiFa [2003] No.91) printed and distributed by the State Administration of Foreign Exchange (SAFE) and to strictly regulating the administration of verification and writing-off of export proceeds in foreign exchange (hereinafter referred to as the verification).

Article 2

SAFE and the branches and sub-branches thereof (hereinafter referred to as foreign exchange administrations) are the departments in charge of the administration of the verification.

Article 3

The verification shall apply the principle of locality jurisdiction, namely, the exporter shall make the record registration, apply for the verification forms, and make the verification with the foreign exchange administration of the place where it is located.

Article 4

The foreign exchange administrations shall apply classified administration of exporters on the basis of the annual assessment of their completion of verification, their reporting rates of international balance, their export and trade methods, and their methods of collection of export proceeds in foreign exchange (hereinafter referred to as collection of proceeds), as well as their compliance with the policies of the state on foreign exchange administration and in light of the opinions of the relevant departments in charge of the administration of the exporters, and shall respectively apply the administration methods of automatic verification, group verification, and one-by-one verification.

Article 5

The foreign exchange administrations shall apply the administration system of verification officers. The obtaining of verification forms and the making of verification of the exporter shall be under the charge of the verification officer of that exporter. The measures for the administration of verification officers shall be formulated by the branches of SAFE in light of the actualities of their respective areas, and be carried out after being reported to SAFE for record.

Chapter 2 Record Registration of Exporters

Article 6

The exporter shall, after acquiring the management right of export business, subscribe to "China Electronic Port" with the customs office, and make the electronic certification of the enterprise legal person IC card of "China Electronic Port" and the enterprise operator IC card of "China Electronic Port" with the relevant administrations.

Article 7

The exporter shall submit the following documents to the foreign exchange administration when making the record registration of verification:

(1)

The letter of introduction and written application of the exporter;

(2)

The original and copy of the Certificate of Qualification of Import and Export Enterprises of the People's Republic of China, or the Certificate of Approval for Foreign-Funded Enterprises of the People's Republic of China, or the Certificate of Approval for Enterprises Funded by Investors from Hong Kong, Macao, or by Overseas Chinese Investors of the People's Republic of China;

(3)

The Business license of Enterprise Legal Person (counterpart) or the Business License of Enterprise (counterpart) and the copy thereof;

(4)

The original and copy of the Certificate of Organization Code of the People's Republic of China;

(5)

The original and copy of the certificate of customs registration; and

(6)

Other documents as required by the foreign exchange administration.

The foreign exchange administration shall, after examining the aforesaid documents and ensuring there isn't any mistake, make the registration for the exporter and establish the electronic archive information of the exporter.

Article 8

The exporter shall, if its electronic archive information registered with the foreign exchange administration is altered, by taking the notices of alteration issued by the relevant administrations, make the alteration registration with the foreign exchange administration within 1 month after making the alteration registration with the administrations of industry and commerce, and customs, and the foreign exchange administration shall alter the purview of the IC card of that exporter at "China Electronic Port".

Article 9

Where the exporter terminates its business or is disqualified from foreign trade business, it shall, by taking the relevant documents issued by the relevant administrations, make the cancellation registration with the foreign exchange administration within 1 month, and the foreign exchange administration shall cancel the purview of the IC card of that exporter at "China Electronic Port".

Chapter 3 Administration of Verification Forms

Article 10

The verification forms shall be issued level by level by the designated personnel. SAFE shall issue the verification forms to its branches, which shall issue the verification forms to the central sub-branches under their respective administration, and the aforesaid central sub-branches shall issue the verification forms to the sub-branches under their respective administration. The foreign exchange administrations shall issue the verification forms to the exporters under their respective administration.

Article 11

The exporter shall, before obtaining the verification forms with the foreign exchange administration, file an application for the verification forms with the foreign exchange administration through the "System of Collection of Export Proceeds in Foreign Exchange of China Electronic Port" (hereinafter referred to as the System of Collection of Proceeds) according to the actual needs of its business, and the verification officer of that exporter shall, by taking the operator IC card of "China Electronic Port" of his own and other prescribed certificates, obtain the verification forms with the foreign exchange administration.

Article 12

A foreign exchange administration shall issue the verification forms to the exporter on the basis of the number of forms applied for by that exporter and the verification assessment grade, and shall transmit the electronic record data of the verification forms to the data center of "China Electronic Port".

Article 13

A foreign exchange administration may adjust the number of forms to be issued according to the verification assessment grade and the daily business operations of the exporter. If the exporter is assessed as an "honorable enterprise of collection of proceeds" or a "qualified enterprise of collection of proceeds", the verification forms shall be issued to it according to its needs, whereas the issuance of verification forms shall be restricted if that exporter is assessed as a "risky enterprise of collection of proceeds" or a "highly risky enterprise of collection of proceeds", or if it has committed any other serious violation of the provisions on foreign exchange administration.

Article 14

The exporter shall give the signature when obtaining the verification forms. Blank verification forms shall be continuously valid.

Article 15

The exporter shall, before formally using the verification forms, affix on them the bar seal of entity name and organization code and affix its official seal on between the pages of the form.

Article 16

Where all the goods stated on a verification form are shut out, or the verification form is filled in erroneously, the exporter shall write off that form with the foreign exchange administration within 3 months.

Article 17

Where the exporter terminates its business, or is disqualified from foreign trade, or is merged or split, it shall make the verification according to the following provisions:

(1)

Where the exporter no longer runs the export business as a result of terminating its business or being disqualified from foreign trade, it shall return the unused verification forms to the foreign exchange administration for writing-off within 1 month. The foreign exchange administration shall stop issuing verification forms to that exporter and shall prohibit the use of those forms that have been issued, but remained unused and have not been returned to the foreign exchange administration.

(2)

Where the exporter no longer runs the export business as a result of merger or splitting, it shall return the unused verification forms to the foreign exchange administration for writing-off within 1 month. The foreign exchange administration shall prohibit the use of those forms that have been issued to that exporter, but remained unused and have not been returned to the foreign exchange administration.

(3)

Where the exporter continues to run the export business as a result of merger or splitting, it shall return the unused verification forms to the foreign exchange administration for writing-off within 1 month and shall continue to assume the verification of the former exporter according to the agreement on merger and splitting.

Article 18

Where the exporter commits any serious violation of the provisions of foreign exchange administration or is involved in any other special circumstances, the foreign exchange administration may prohibit the verification forms that have been obtained but unused by that exporter.

Chapter 4 Export Customs Declaration

Article 19

The exporter shall, before making the customs declaration, put on record the verification forms with the customs office of the place where the declaration is to be made through the "System of Collection of Proceeds".

Article 20

The exporter shall fill in the verification forms accurately and completely, the contents of which shall be consistent with the relevant contents stated on the certification pages of the customs declaration forms of collection of export proceeds (hereinafter referred to as declaration forms).

Article 21

The exporter shall, when making the customs declaration, faithfully report to the customs office the transaction method, and on the basis of that method, report the transaction price, amount, freight and insurance premium, as well as the number of the processing trade contract, and shall ensure the truthfulness and completeness of the data declared.

Article 22

Where the regulation requires the use of verification forms for export customs declaration, the customs office shall examine the verification forms and other declaration documents submitted by the exporter, and after checking the electronic records of the verification forms and ensuring there is no mistake, process the clearance formalities for the exporter.

Article 23

The customs office shall, when processing clearance formalities for the exporter, affix the "test-over seal" in the column of "customs verification and clearance" on the verification form, and write off the electronic record data of the verification form with the remark of "used". It shall, after the clearance, issue the declaration forms marked with the numbers of the verification forms to the exporter if the exporter so applies, and transmit the writing-off of the electronic records of the verification forms, and the electronic records of the customs declaration forms, etc., to SAFE through the data center of "China Electronic Port".

Article 24

The customs office shall, when issuing the customs declaration form, ensure that the numbers of the verification forms correspond to those of the declaration forms one by one.

Article 25

The exporter shall, after the customs declaration and export, tender the verification forms that have been used in the customs declaration to the foreign exchange administration through the System of Collection of Proceeds.

Chapter 5 Collection of Proceeds

Article 26

The exporter shall, after exporting the goods, collect the price in good time and full amount pursuant to the time and method of collection stipulated in the export contract, and the total transaction price stated on the declaration form. In the case of spot collection, the export proceeds shall be collected within 180 days after the clearance of the goods, and in the case of forward collection, the proceeds shall be collected within the time limit as recorded for forward.

Article 27

With respect to the settlement or entry of account of the following foreign exchange, the bank may issue to the exporter the special page of verification form (hereinafter referred to as the special page):

(1)

With regard to the payments collected directly from overseas or domestic special economic zones, the bank shall issue the special page after finishing the foreign exchange settlement or entering the amount into the foreign exchange account for current account transactions (hereinafter referred to as "account entry") of the exporter.

(2)

With regard to the damages recovered from export cargo insurance or export credit insurance, the bank shall issue the special page after finishing the foreign exchange settlement or account entry on the strength of the original verification forms and the agreement on settlement of claims, and shall indicate on the special page "damages from export cargo insurance" or "damages from export credit insurance".

(3)

With regard to the foreign exchange capital obtained through forfeiting business, the bank shall issue the special page after finishing the foreign exchange settlement or account entry for the exporter pursuant to the provisions, and shall indicate on the special page "forfeiting business".

(4)

Where the bank hasn't, under factoring, provided financing service or such service with recourse for the exporter, the bank shall, after the exporter collects the payments from overseas, process the foreign exchange settlement or account entry according to the provisions and issue the special page to that exporter.

Where the bank has provided the exporter with financing service without recourse, the bank may, after providing the exporter with the fund and finishing the foreign exchange settlement or account entry for that exporter according to the provisions, issue the special page to that exporter on the basis of the amount financed, affix on the special page a special number of verification, and in the meanwhile, indicate on the special page "factoring financing business". The bank shall, after collecting the payments from overseas and deducting the amount financed and the interest thereon, issue the special page in respect of the balance, and shall indicate on the special page "factoring balance" and the relevant factoring expenses and interest accruing from the financing, as well as the number of the declaration form of foreign-related income and the original special number of verification.

(5)

With regard to the payments collected from the off-shore account opened by the overseas importer in a bank providing off-shore banking services within China, the bank shall issue the special page after finishing the foreign exchange settlement or account entry according to the provisions, and shall indicate on the special page "transferred from domestic off-shore account".

(6)

With regard to the foreign exchange collected by the transferor in deep processing transit business, the bank shall issue the special page after finishing the foreign exchange settlement or account entry for the transferor, and shall indicate on the special page the words of "collected proceeds from deep processing transit business" and the name of the transferee.

(7)

With regard to the collection of proceeds under export buyer's credit, the bank shall issue the special page after finishing the foreign exchange settlement or account entry for the exporter on the basis of the export contract, the order of the overseas borrower to pay, the letter of credit, or other payment orders, or on the basis of the postscripts or summary of entrusted payment of the domestic lending bank, and shall indicate on the special page "domestic transfer under export buyer's credit".

(8)

With regard to the export proceeds settled in foreign currency cash, the exporter shall make the foreign exchange settlement with the bank, and may not retain or deposit such proceeds with the bank. Where the amount of foreign currency cash reaches the limit for entry report, the bank shall issue the special page after making foreign exchange settlement for the exporter on the strength of the export contract, vouchers, verification forms, and the original of the declaration form of foreign currency carried into China signed by the customs office, and after indicating on the declaration form the amount settled and the date, and affixing a mark, shall indicate on the special page "settlement of foreign currency cash". Where the amount of foreign currency cash carried has not reached the limit for entry report, the bank shall settle the foreign currency cash on the strength of the export contract, invoices, verification forms, and the application for foreign exchange settlement, and shall indicate on the special page "settlement of foreign currency cash". The export proceeds collected under border trade and planning chartering shall be excluded.

(9)

The bank may not issue the special page when making foreign exchange settlement under export bill negotiation or making account entry for discount of time drafts or for packing loans under export letters of credit, and shall issue the special page only after collecting the export payments and finishing the relevant formalities.

(10)

With regard to the export payments collected directly from overseas or domestic special economic zones, if it is necessary for a domestic bank to exchange the foreign currency into another, the paying bank shall issue the special page when proceeding the exchange from the original currency within China. The exchanging bank shall indicate the words of "exchanged foreign currency" in the transaction postscript.

(11)

Where the special page may be issued in other circumstances as provided for by the foreign exchange administrations, the relevant provisions shall be observed.

Article 28

With regard to the settlement or account entry of the following kinds of foreign exchange, the bank may not issue the special page to the exporter:

(1)

Export proceeds other than those provided for in Article 27 and the proceeds that cannot be determined as export proceeds in foreign exchange at the present time;

(2)

Foreign exchange transferred from the foreign exchange accounts of other entities within China or from the foreign exchange accounts for current account and capital account transactions of a same entity, other than those provided for in Article 27 ;

(3)

Other foreign exchange for which no special page shall be issued as provided for by the foreign exchange administrations.

Article 29

The bank shall, when issuing the special page, keep the contents of the page the same as those of the record page kept by the bank and the book-keeping page of the recipient. A special page shall contain the following elements:

Name of the handling bank;

Date of foreign exchange settlement or payment collection;

Name and account number of the recipient entity;

Amount actually collected and the currency;

Detailed list of various incidental expenses (if there is any), and the amount and currency;

Net amount settled or entered into account and the currency;

Number of the verification form;

Number of the declaration form of foreign-related income or the special number of verification;

Words of "special page of verification and writing-off of export proceeds in foreign exchange";

10.

Official business seal of the bank and the signature or seal of the handling person; and

11.

Other contents that should be indicated as required by the foreign exchange administrations.

Article 30

The bank shall in advance put on record with the local foreign exchange administration the format and model of the special page. Where there is any alteration to the format or model, the bank shall change the record with the foreign exchange administration before using the altered format or model.

Article 31

Where the export proceeds of the exporter are not subject to the international balance report and the special page can be issued thereto pursuant to the provisions, the bank shall affix the special number of verification on the special page, and shall indicate the sources of the capital collected. The special number of verification has 22 figures altogether, the first 6 figures are the region identification number; the next 6 figures are the bank identification number and sequential number; the still next 6 figures are the date of collection of proceeds; and the last 4 figures are the business serial number of the bank on the day of transaction.

Article 32

The special page issued by the bank must contain the number of the report of foreign-related income or the special number of verification, otherwise, the foreign exchange administration may not handle the verification for the exporter on the basis of that special page.

Article 33

With respect to the collection of lump-sum payments in foreign exchange from several export transactions, the bank shall require the exporter to provide the numbers of the verification forms to which that sum corresponds to, and shall indicate those numbers on the special page. Only one special page may be issued for the collection of lump-sum proceeds, and the issuing of separate pages is not allowed. Where the lump-sum proceeds contain advanced payments and remainder of payments, the bank shall fill in the number of the verification form to which the remainder corresponds and shall indicate on the special page "advanced payments contained". And the exporter shall, after actually exporting the goods, make up the number of the verification form with the bank, which shall affix the business official seal and the signature of the handling person. With respect to a single advanced payment, the bank shall issue the special page to the exporter after finishing the foreign exchange settlement or account entry pursuant to the provisions and ensuring that the exporter has exported the goods (providing the number of verification form).

Article 34

Where the exporter needs to adjust its account or set off wrong accounts after the bank has issued the special page after the foreign exchange settlement and account entry, the bank shall withdraw and write off the special page that has been issued.

Article 35

In the case of export by agency, if both the agent and the principal have foreign exchange accounts for current account transactions and if the original foreign currency needs to be transferred to the principal, the bank shall enter all the foreign currency collected into the foreign exchange account for current account transactions of the agent, and issue the special page to the agent, which shall then transfer the foreign currency pursuant to the relevant provisions. If the agent has no foreign exchange account for current account transactions, the bank shall settle the foreign exchange collected and issue the special page to the agent, which shall transfer RMB to the principal.

Chapter 6 Verification Report of the Exporter

Article 36

The exporter shall, after exporting the goods and within 30 days from the anticipated date of collection of payments, make verification reports to the foreign exchange administration in respect of all the payments or each payment on the strength of the prescribed verification certifications. If the exporter applies automatic verification, it need not make the verification report with the foreign exchange administration, except under special circumstances.

The foreign exchange administration may, according to the volume of verification transactions of the region and the specific circumstances of the exporter, apply the system of verification report form or the electronic administration of verification reports.

Article 37

Where the anticipated date of collection of payment falls on the 180th day or thereafter after the date of customs declaration, the exporter shall, within 60 days after the customs declaration of the goods, make the record of forward collection of proceeds with the foreign exchange administration on the strength of the written application for record of forward collection of proceeds, export contract or agreement for forward collection, the verification forms, declaration forms, and other relevant documents.

Article 38

The exporter shall, when making the verification report, provide the verification certificates pursuant to the following provisions:

(1)

In the case of export under "general trade", "non-corresponding imported material", "authorized trade of military equipment", "unauthorized trade of military equipment", or "trade to Taiwan", the verification forms, declaration forms and special pages shall be provided.

(2)

In the case of export under "barter trade", the barter contract, verification forms and declaration forms shall be provided. For full barter, the import declaration forms of the goods bartered in shall also be provided; in the case of partial barter, the special pages and the import declaration forms of the goods bartered in shall also be provided.

(3)

In the case of export under "processing of materials supplied by clients", or "deep processing of materials supplied by clients", the verification forms, declaration forms and special pages shall be provided. With respect to the verification report for the proceeds from the first export transaction under the same contract, the processing contract approved by the commerce administration shall also be provided. And in the case of alteration of the contract or termination of the execution, the relevant certificates shall also be provided.

(4)

In the case of export under "compensation trade" and where the compensation shall be made in kind as stipulated by the contract, the compensation trade contract, verification forms, declaration forms, and the corresponding import declaration forms shall be provided. And where the value stated on the declaration forms exceeds that on the import declaration forms, the special pages shall also be provided.

(5)

In the case of export under "corresponding imported materials", "deep processing of imported materials", or "processing of imported materials by three types of foreign-funded enterprises", if the proceeds are collected in full amount, the verification forms, customs declaration forms and special pages shall be provided. Where the imported materials are set off, the exporter need to make the registration of set-off of imported materials with the foreign exchange administration, and provide the verification forms, customs declaration forms, special pages in respect of the balance, and the corresponding import declaration forms.

With respect to the verification report for the proceeds from the first export transaction under the same contract, the processing contract ratified by the commerce administration shall also be provided. And in the case of alteration of the contract or termination of the execution, the relevant certificates shall also be provided.

Where the exporter makes the export under "deep processing of imported materials" and the transferee makes the import under "deep processing of imported materials", the processing contract ratified by the commerce administration, the verification forms, declaration forms and special pages shall be provided. Where the payments are settled in RMB, the certificates of account entry in RMB and the import declaration forms shall be provided.

(6)

In the case of export under "samples and advertisement products A", the verification forms and declaration forms shall be provided. Where the collection of proceeds are verified and written off, the special pages shall be provided. And with respect to a single transaction in which the proceeds not collected exceed 500 US dollars of the equivalent, the contract or agreement concluded by the parties shall be provided.

(7)

In the case of export under "external contracting", the ratification letter of the commerce administration for foreign contracting, the contract or agreement on the contracted project, the verification forms, declaration forms and special pages shall be provided.

(8)

In the case of export under "returned cargo", the verification forms, declaration forms and import customs declaration forms shall be provided. The special pages shall also be provided with respect to the returned goods for which payments in foreign exchange have already been made.

(9)

In the case of export under "re-export of imported materials" or "re-export of leftover materials out of imported materials", if the collection of proceeds is verified and written-off, the verification forms, declaration forms and special pages shall be provided. If the proceeds are not collected, the verification forms, declaration forms and import declaration forms indicated with the trade methods of "corresponding imported materials" or "deep processing of imported materials" shall be provided.

(10)

In the case of export under "replacement of imported materials", if the proceeds are collected, the verification forms, declaration forms and special pages shall be provided. And if the proceeds are not collected, the verification forms, declaration forms and import declaration forms for processing of imported materials shall be provided.

(11)

In the case of export under "petty trade to Taiwan", where payments are settled in spot foreign exchange, the verification forms, declaration forms and special pages shall be provided. Where the payments are settled in foreign currency cash, the verification forms, declaration forms, foreign currency cash settlement vouchers and purchase invoices shall be provided. Where the payments are settled in RMB, the verification forms, declaration forms and certificate of account entry of RMB shall be provided.

(12)

In the case of export under "bonded factory" or "outward processing", if the proceeds are collected, the verification forms, declaration forms and special pages shall be provided. Where the goods are transported back after processing and the proceeds are not collected, the verification forms, declaration forms and corresponding import declaration forms shall be provided.

(13)

In the case of export under "leasing trade", and "less-than one-year leasing", the leasing contract, verification forms and customs declaration forms shall be provided. Where the foreign party is the leaseholder, the special pages shall also be provided. If the rent collected is insufficient in the verification, the import declaration forms shall also be provided. Where the Chinese party is the leaseholder, the printed copy (affixed with the business seal of the bank) of the electronic records of the import declaration forms shall also be provided.

(14)

In the case of export under "consignment trade", the verification forms, declaration forms and special pages shall be provided. Where the proceeds can't be collected in full amount, the confirmation letter of "consignment trade" shall also be provided.

(15)

In the case of export under "petty border trade", where the payments are settled in spot foreign exchange, the verification forms, declaration forms and special pages shall be provided. Where the payments are settled in foreign currency cash, the verification forms, declaration forms, foreign currency cash settlement vouchers and purchase invoices shall be provided. Where the payments are settled in RMB, the verification forms, declaration forms and certificates of account entry of RMB shall be provided (with respect to the regions that have opened RMB accounts for RMB border trade with overseas trade institutions, the certificates of domestic transfer of RMB capital may be provided). Where the payments are settled in the currency of an adjourning country, the verification forms, declaration forms and the declaration form for carrying the currency of an adjourning country or the certificate of inward remittance verified by the customs office shall be provided. Where the payments are settled through barter, the verification forms, declaration forms and import declaration forms shall be provided. Where the payments in foreign exchange are collected through remittance by any individual domestic resident, the declaration forms, verification forms and the special foreign exchange settlement vouchers for verification shall be provided.

(16)

In the case of export under plane chartering in the form of "tourist commodities trade", and "general trade", where the payments are settled in spot foreign exchange, the verification forms, declaration forms and special pages shall be provided. Where the payments are settled in foreign currency cash or through individual remittance, the verification forms, declaration forms, purchase invoices and foreign currency cash settlement vouchers or foreign exchange settlement vouchers for inward individual remittance shall be provided. Where the payments are settled in RMB, the verification forms, declaration forms and certificate of account entry of RMB shall be provided.

(17)

In the case of export by any other method subject to customs control, the relevant certificates shall be provided as provided for by the foreign exchange administrations and the relevant departments.

Article 39

Where the collecting entity and the entity assuming the verification are not the same as a result of exclusive sale of commodity, alteration of contract terms, or approved relationship between parent and branch (subsidiary) companies, the collecting entity may file an application with the foreign exchange administration for "transferring the collection of overseas proceeds", thus to facilitate the exporter to make the verification. And the exporter shall, when making the verification report, provide the application for transfer of collection of overseas proceeds, the relevant agreements, export contract, verification forms, customs declaration forms, special pages, and other relevant documents.

Article 40

When making the verification report, the exporter shall, if the foreign exchange administration it belongs to applies the system of the verification report form, provide the Verification Report Form in addition to the verification certificates provided for in Articles 38 and 39. And if the foreign exchange administration it belongs to applies the electronic administration of verification reports, it shall also provide the electronic data of the verification certificates in addition to those provided for in Articles 38 and 39.

Article 41

After the exporter exports the goods, if a single collection of proceeds or the value of a single import transaction exceeds the declared amount by no more than 2000 US dollars or the equivalent (2000 US dollars included), or if a single collection of proceeds or the value of a single import transaction is less than the declared amount by no more than 500 US dollars or the equivalent (500 US dollars included), the exporter may make the verification report pursuant to Articles 38 and 39. If a single collection of proceeds or the value of a single import transaction exceeds the declared amount by more than 2000 US dollars or the equivalent, or if a single collection of proceeds or the value of a single import transaction is less than the declared amount by more than 500 US dollars or the equivalent, the exporter shall make the report of margin verification. Where group verification is applied, the margin between the value of the exported goods and the proceeds collected or the value of the imported goods shall be calculated on the basis of each verification form.

Article 42

When making the margin verification report, the exporter shall, in addition to providing the verification certificates as provided for by Articles 38 and 39, provide an explanation letter in respect of the reasons for the arising of margin signed by the legal representative and affixed with the official seal of the exporter, and shall also provide the following certifications:

(1)

Where the margin arises as a result of the change of foreign market situations, the exporter shall provide the certificate issued by the relevant chamber of commerce or the market quote of the relevant exchange.

(2)

Where the margin arises because of the quality of the goods, the exporter shall provide the relevant letters of the importer and the certificate issued by the commodity inspection agency of the importer's country. Where the said inspection certificate cannot be provided due to objective reasons, the inspection report of the importer, the relevant certificates and the written warranty of the exporter shall be provided.

(3)

Where the margin arises due to the deterioration, perishing, non-natural death, or wearing-out of animals and perishable products, the exporter shall provide the relevant letters of the importer and the certificate issued by the commodity inspection agency of the importer's country. Where the said inspection certificate can't be provided due to objective reasons, the relevant letters of the importer, the relevant certificates and the written warranty of the exporter shall be provided.

(4)

Where the margin arises due to force majeure causes, such as natural disasters and wars, etc., the exporter shall provide the reports of newspapers or other news media or the certificate issued by the department of commerce of the Chinese embassy or consulate in the importer's country.

(5)

Where the margin arises due to the bankruptcy, shutting down or dissolution of the importer, the exporter shall provide the reports of newspapers or other news media or the certificate issued by the department of commerce of the Chinese embassy or consulate in the importer's country.

(6)

Where the margin arises due to the fluctuation of exchange rate of the currency of the importer's country, the exporter shall provide the documents relating to the exchange rate published on newspapers or other news media or promulgated by the foreign exchange administration.

(7)

Where the margin arises due to excessive or short shipment, the exporter shall provide the commercial instruments, such as the bills of lading or other formal shipping instruments.

(8)

Where the margin arises due to other reasons, the exporter shall provide the valid certificates recognized by the foreign exchange administrations.

Chapter 7 Verification and Writing-Off of Export Proceeds in Foreign Exchange

Article 43

A foreign exchange administration shall, after receiving the verification certificates (including the electronic data) reported by the exporter, verify the authenticity of the data reported by the exporter through the "System of Reports of Verification and Writing-off of Collection of Export Proceeds in Foreign Exchange" (hereinafter referred to as the System of Verification Reports) and other relevant systems. If the verification certificates submitted are inconsistent with the data transmitted by the customs office or bank, or the documents submitted for examination are incomplete, such certificates or documents shall be returned to the exporter for modification. The customs office and bank shall, after receiving the application of the exporter for modification, finish the check and modification of the verification certificates or electronic data within 5 workdays.

Article 44

The foreign exchange administrations may, according to the transaction volume of their respective regions and the specific situations of the exporters, apply different methods of verification respectively pursuant to the following provisions:

(1)

Transaction-by-transaction verification: that is, the exporter makes the verification report on the basis of each verification certificate, and the foreign exchange administration makes the verification for the exporter for each corresponding transaction. This method is suitable for the enterprises with high risks in collecting proceeds, as well as for the margin verification and the proceeds that can't be collected in full amount.

(2)

Group verification: that is, the exporter makes a consolidated verification report and the foreign exchange administration makes the verification for the exporter on a group basis. This method is suitable for the verification of the collection of proceeds in full amount of the exporters other than those with high risks in collecting proceeds, as well as for the collection of export proceeds that need to be verified and written off according to the contract under processing of materials supplied by the client or under set-off in processing of imported materials. The foreign exchange administration shall, when examining the group verification data, stick to the principle of correspondence of the total quantity stated on the verification forms and those on the special pages.

(3)

Automatic verification: that is, without the need for the exporter to report, the foreign exchange administration makes the total-quantity verification on the basis of the information of the verification forms and customs declaration collected through the System of Collection of Proceeds, and through the System of International Balance Statistics Report. This method is suitable for the honorable enterprises of collection of proceeds that have high rates of international balance report and that comply with other conditions prescribed by the foreign exchange administration, as well as for the collection of export proceeds in full amount under general trade and other export trade.

Article 45

A foreign exchange administration shall make the verification for the exporter pursuant to the following provisions:

(1)

In the case of export under "general trade", "non-corresponding imported materials", "authorized trade of military equipment", "unauthorized trade of military equipment, "consignment trade", "trade to Taiwan", or "external contracting", the verification shall be made on the basis of the full amount of the total price stated on the customs declaration forms.

(2)

In the case of export under "processing of materials supplied by the client", or "deep processing of materials supplied by the client", the verification shall be made on the basis of the fees to be collected as stipulated by the processing contract.

(3)

In the case of export under "processing of imported materials", "deep processing of imported materials", or "processing of imported materials by three types of foreign-funded enterprises", the verification shall be made on the basis of the full amount of the total stated on the customs declaration forms.

Where the set-off is ratified by the foreign exchange administration under processing of imported materials, the foreign exchange administration shall, according to the processing contract of the exporter, make the verification with respect to the value added, and set off the value of the imported materials against that stated on the corresponding import declaration forms. Where the "deep processing of imported materials" is settled in RMB, the import declaration forms shall be verified, written off, and concluded by the foreign exchange administration of the place where the transferor is located.

(4)

In the case of export under "compensation trade", if the value stated on the declaration forms is less than or the same as that stated on the import declaration forms, those values shall be directly set off for the verification. If the value stated on the declaration forms is more than that stated on the import declaration form, the verification shall be made with respect to the exceeding part.

(5)

In the case of export under "returned goods", "re-export of imported materials", "replacement of imported materials", "re-export of imported leftover materials", "outward processing", or "bonded factory", the verification shall be made on the basis of the total price stated on the declaration forms or by setting off against the value stated on the corresponding import declaration forms.

(6)

In the case of export under "samples and advertising products A", the verification shall be made on the basis of the collection or non-collection of the full amount of the total price stated on the customs declaration forms. Where the proceeds not collected in a single transaction exceed 500 US dollars or the equivalent, the verification of non-collection margin shall be made according to the contract or agreement signed between the parties.

(7)

In the case of export under "leasing trade" or "less-than one-year leasing", if the foreign party is the leaseholder, the verification shall be made on the basis of the full amount of the total price stated on the customs declaration forms. If the amount of the rent collected is insufficient for the verification, the margin may be set off against the corresponding import declaration forms of the returned equipment (goods) for verification. If the Chinese party is the leaseholder, the verification of non-collection shall be made on the basis of the printed copies (affixed with the business seal of the bank) of the electronic records of the import declaration forms.

(8)

In the case of export under "petty trade to Taiwan", where the transaction is settled in spot foreign exchange, the verification shall be made on the basis of the full amount of the total price stated on the customs declaration forms. Where the transaction is settled in foreign currency cash, the verification shall be made on the basis of the total price stated on the customs declaration forms and the amount settled as stated on the foreign currency cash settlement vouchers. Where the transaction is settled in RMB, the verification shall be made on the basis of the total price stated on the customs declaration forms and the value in RMB stated on the certificate of account entry of RMB;

(9)

In the case of export under "petty border trade", where the transaction is settled in spot foreign exchange, the verification shall be made on the basis of the full amount of the total price stated on the customs declaration forms. Where the transaction is settled in foreign currency cash, the verification shall be made on the basis of the total price stated on the customs declaration forms and the amount settled as stated on the foreign currency cash settlement vouchers. Where the transaction is settled in RMB, the verification shall be made on the basis of the total price stated on the customs declaration forms and the value in RMB as stated on the certificate of account entry of RMB. Where the transaction is settled in the currency of a adjourning country, the verification shall be made on the basis of the total price stated on the customs declaration forms and the value of the currency of the adjourning country as stated on the declaration form of foreign currency carried into China or on the certificate of inward remittance. Where the transaction is settled through barter, the verification shall be made on the basis of the set-off of the total price stated on the declaration forms against that stated on the import declaration forms. Where the payment is collected through individual remittance of domestic resident, the verification shall be made on the basis of the total price stated on the customs declaration forms and the value stated on the special foreign exchange settlement vouchers for verification.

(10)

In the case of export under plane bartering trade in the form of "tourism commodities trade", and "general trade", where the transaction is settled in spot foreign exchange, the verification shall be made on the basis of the full amount of the total price stated on the customs declaration forms. Where the transaction is settled in foreign currency cash or individual remittance, the verification shall be made on the basis of the total price stated on the customs declaration forms and the amount settled as stated on the foreign currency cash settlement vouchers, or the amount settled as stated on the foreign exchange settlement vouchers of individual inward remittance. Where the transaction is settled in RMB, the verification shall be made on the basis of the total price stated on the customs declaration forms and the value in RMB as stated on the certificate of account entry of RMB.

(11)

In the case of export under "barter trade", with respect to full barter, the verification shall be made on the basis of the set-off of the total price stated on the declaration forms against that stated on the import declaration forms. With respect to partial barter, the verification shall be made on the basis of the total price stated on the declaration forms, and the margin shall be set off against the import declaration forms for the goods bartered in.

(12)

In the case of export under other methods subject to customs control, the verification shall be made pursuant to the provisions of the foreign exchange administrations and the relevant departments.

In the case of export under government loan, the verification shall be made in RMB or foreign exchange collected within China on the basis of the explanation provided by the exporter, the approval document of the government, the contract or agreement and the declaration forms, etc., as well as the notice of RMB account entry or notice of foreign exchange account entry issued by the corresponding bank to the exporter.

In the case of export under foreign aid loans or funds and overseas material investment, the verification of non-collection margin shall be made on the basis of the explanation provided by the exporter, the approval document of the government department, the contract or agreement and the declaration forms, etc.

Article 46

When making the verification, the foreign exchange administration shall affix the seal of "verified and written-off" on the import declaration forms used in the set-off, and shall verify, write off and conclude those forms in the "System of Import Payment in Foreign Exchange of China Electronic Port".

Article 47

When making the verification for the exporter, if the foreign exchange administration can not get the relevant electronic records through the normal way due to block of network or technical problems of the system, etc., or there is not electronic records of the relevant data because no electronic administration has been applied, the foreign exchange administration may, after examining the verification certificates provided by the exporter and ensuring that there is no mistake, input the relevant data into the System of Verification Report, and make the verification at the same time.

Article 48

When examining the verification certificates provided by the exporter, the foreign exchange administration shall make the verification according to the different trade methods if the certificates are complete, the data are correct and the margin between the value of the exported goods and proceeds collected or the value of the imported goods has not exceeded the prescribed standard. If the said margin has exceeded the prescribed standard, the foreign exchange administration shall, after examining the prescribed margin certificates and ensuring that there is no mistake, make the margin verification for the exporter. If the said margin has exceeded the prescribed standard and the exporter fails to provide the prescribed margin certificates, the margin shall be included in future check if the relevant provisions are complied with, or the margin shall be brought into the administration of the failure to make verification within the time limit, if the conditions for future reference are not met and the prescribed time limit is exceeded.

Article 49

After finishing the verification for the exporter, the foreign exchange administration shall affix the seal of "verified and written off" on the corresponding special pages and the special tax refund pages of the verification forms. In the case of margin verification, and verification in foreign currency cash, the currency of an adjourning country, and RMB, etc., the foreign exchange administration shall also indicate on the tax refund pages of the verification forms the amount, currency, and date of the net income. All the documents shall be returned to the exporter except the special record pages of the electronic data of export proceeds that are input manually. A special page to be used for several times shall be returned to the exporter after being marked with the amount verified and written off or with the balance. And the exporter shall, after using that special page for verification for the first time, keep the original of that page for record, and use the copy of it to make verification and record afterwards. The foreign exchange administrations that have not applied the system of verification report form shall well handle the return of the list of verification. And the foreign exchange administrations that have applied the system of verification report form shall well handle the return of the Verification Report Form, and keep the foreign exchange administration record page of that form. With respect to the margin verification, the foreign exchange administrations shall keep all the verification certificates except the special tax refund pages of the verification forms.

Article 50

The foreign exchange administrations shall regularly upload the electronic data verified and written off to the data center of "China Electronic Port" for consultation by the relevant administrations of commerce, customs and taxation, etc.

Chapter 8 Automatic Verification

Article 51

The foreign exchange administrations shall approve the qualification for automatic verification of the exporters that meet the following conditions:

(1)

Having a 100% rate of international balance report;

(2)

Being graded as "honorable enterprise of collection of proceeds" in the verification assessment in the last year;

(3)

Having not committed any acts in violation of foreign exchange administration in the last two years;

(4)

Other conditions provided for by the foreign exchange administrations.

Article 52

When examining the qualification of the exporter for automatic verification, the foreign exchange administration shall prepare the Review Form of Qualification for Automatic Verification and Written-Off of Export Proceeds in Foreign Exchange (see attachment 1), and submit that form to SAFE level by level. Upon ratification of SAFE, the foreign exchange administration shall issue to the exporter the Notice of Confirmation of the Qualification for Automatic Verification and Written-off (see attachment 2).

Only after the exporter signs on the receipt of the Notice of Confirmation of the Qualification for Automatic Verification and Written-off for conformation and undertakes to perform the prescribed obligations and assume the relevant responsibilities, may the foreign exchange administration applies the administration of automatic verification with respect to that exporter.

Article 53

The branches of the foreign exchange administrations shall promptly promulgate the list of the exporters entitled to the administration of automatic verification (hereinafter referred to as automatic exporters), and shall send copies of the list to the relevant local administrations of commerce, taxation and customs, etc.

Article 54

The automatic exporter may apply to the foreign exchange administration for all the verification forms it needs for half a year, and shall use those forms pursuant to the relevant provisions.

Article 55

The automatic exporter shall collect the export proceeds in good time and full amount, and shall obtain the special pages pursuant to the relevant provisions.

Article 56

In any of the following situations, an automatic exporter shall make the verification report pursuant to the provisions of Chapter 6 hereof, and the foreign exchange administration shall make the verification for that exporter pursuant to the provisions of Chapter 7 hereof:

(1)

Where the proceeds can not be collected in full amount in an export transaction;

(2)

Where it needs to make export refund or go through other relevant formalities within 90 days after the clearance of the goods, and where the proceeds have already been collected;

(3)

Where the goods are exported by the trade methods in which no proceeds are collected or only partial proceeds are collected;

(4)

Where there is no need to make the report of foreign-related income with respect to the proceeds collected after the export.

In the case of the second situation, after the automatic exporter has reported to the foreign exchange administration, the foreign exchange administration shall adjust the date of collectable export proceeds accordingly in the System of Verification Report.

Article 57

Except the situations provided for in Article 56 hereof, an automatic exporter need not make the verification report to the foreign exchange administration, neither need it make the verification with the foreign exchange administration, but it shall submit through the net the declaration forms used in the verification. And the foreign exchange administration shall, on a monthly basis, make the automatic total-quantity verification on a chronicle basis with respect to its customs declaration data and the bank collection data through the System of Verification Report.

Article 58

The automatic exporter need not rely on the tax refund pages of the verification forms to make tax refund. The tax administration shall make the tax refund on the basis of the electronic data received from the data center of China Electronic Port and the list of verified and written off data provided by the foreign exchange administration to the tax administration every month.

Article 59

The port record of verification forms, customs declaration, record of forward collection, margin verification, refund of foreign exchange, and future reference of margin, etc., of an automatic exporter shall be handled pursuant to the relevant provisions.

Article 60

After the foreign exchange administration makes the verification for an automatic exporter on a monthly basis, if the rate of verification of that exporter fails to reach the prescribed rate, the foreign exchange administration shall issue a precaution notice to that exporter.

Article 61

After the exporter has received three consecutive precaution notices, if its rate of verification still fails to reach the prescribed rate or it no longer meets the conditions specified in Article 51 , the foreign exchange administration may disqualify it from automatic verification and will not approve its qualification for automatic verification in the next year.

Article 62

With respect to an automatic exporter which has been disqualified from automatic verification, the foreign exchange administration shall issue to it the Notice of Disqualification from Automatic Verification and Written-Off (see attachment 3), put that on record with SAFE, and send copies of the notice to the relevant local administrations of commerce, taxation and customs, etc.

Article 63

Where an automatic exporter has been disqualified from automatic verification by the foreign exchange administration, it shall make the verification report pursuant to the provisions of Chapter 6 hereof, and the foreign exchange administration shall make the verification for it pursuant to the provisions of Chapter 7 hereof.

Article 64

The automatic exporter shall keep in good conditions the original verification certificates pursuant to the relevant provisions.

Chapter 9 Refund and Compensation of Foreign Exchange

Article 65

Where the exporter needs to pay foreign exchange to any foreign importer as a result of refund or compensation under export, it shall apply to the foreign exchange administration by taking with it the prescribed documents. The foreign exchange administration shall, after examining the authentication of those documents, deduct the actually export proceeds achievements of that exporter and issue to it the Certificate of Deducted Proceeds/Verification (see attachment 4). And the bank shall sell and pay the foreign exchange for the exporter on the strength of the Certificate of Deducted Proceeds/Verification. Where the exporter has provided the import declaration forms, the foreign exchange administration shall verify, write off, and conclude those forms in the System of Import Payment in Foreign Exchange of China Electronic Port pursuant to the provisions.

Article 66

The exporter shall, when applying for refund or compensation of foreign exchange, provide the following certificates to the foreign exchange administration pursuant to the following provisions:

(1)

Where the export customs declaration has not been made but the whole or part of the payment has been advanced before the contract is terminated due to certain causes, the exporter shall provide the export contract, the certificate of termination of the contract or the agreement on refund or compensation, the special page or the certificate of collection of proceeds issued by the bank.

(2)

Where the goods are exported and the export proceeds have been collected, but the verification has not been made, the exporter shall provide the export contract, agreement on refund or compensation, verification forms, declaration forms and special pages. Where the goods are returned as compensation, the exporter shall also provide the import declaration forms indicated with "returned goods".

(3)

Where the goods are exported, the export proceeds have been collected and the verification has been made, the export contract, agreement on refund or compensation, special pages or the certificate of tax not refunded (or tax made up) issued by the taxation administration shall be provided.

(4)

Where the overseas party remitted by mistake any payment into China and such payment has not been verified and written off, the exporter shall provide the explanation of the situation, letter of the overseas party requiring refund, the special pages, and the collection certificate issued by the bank.

Chapter 10 Regulation on the Failure to Make the Verification within the Prescribed Time Limit

Article 67

Where the exporter, after exporting the goods, fails to make the verification within 30 days after the anticipated date of collection of proceeds, that exporter shall be regarded as failing to make the verification within the prescribed time limit.

Article 68

A foreign exchange administration shall check the failures to make the verification within the prescribed time limit on a monthly basis and urge the making of verification regularly, issue the Notice Urging Verification and provide the exporters with the List of Items not Verified and Written-Off within the Prescribed Time Limit.

Article 69

Where the exporter has received the Notice Urging Verification from the foreign exchange administration, it shall carefully check, verify, and confirm the data against the List of Items not Verified and Written off within the Prescribed Time Limit, and make the verification in good time.

Article 70

Where the exporter is in any of the following situations, the verification department of the foreign exchange administration shall transfer the case to the inspection department for investigation and punishment:

(1)

Where the exporter takes no steps to fulfill its obligation after being urged by the verification department of the foreign exchange administration, or the exporter fails to justify its conduct with reasonable causes;

(2)

The exporter fails to make the verification within 6 months after collecting the export proceeds and fails to justify its conduct with reasonable causes;

(3)

The total amount that has not been verified and written off has reached 5 million US dollars or the equivalent, and the exporter fails to justify its conduct with reasonable causes.

Chapter 11 Assessment of Verification

Article 71

Assessment of verification refers to the administration system in which the foreign exchange administrations, in conjunction with the commerce administrations, assess the exporters' performance of verification, determine the exporters' grades of collection of proceeds, and award or punish the exporters of different grades respectively. The assessment of verification shall be carried out on a yearly basis.

Article 72

The object of the assessment of verification is all the exporters that have collected export proceeds and that should make the verification within the assessed period.

Article 73

The index of the assessment of verification shall be the verification rate. The verification rate refers to the proportion that the amount verified and written off bears to the amount that should be verified and written off. SAFE and the Ministry of Commerce may appropriately adjust the standards of the assessment of verification according to the specific situations of different times.

Article 74

Standards of the assessment of verification and the grades of annual assessment are as follows:

(1)

The exporter shall be graded as an "honorable enterprise of collection of proceeds", if its verification rate reaches or exceeds 95%. A large exporter whose verification rate reaches or exceeds 85% and whose annual export value is more than 200 million US dollars or the equivalent may also be graded as an "honorable enterprise of collection of proceeds";

(2)

The exporter whose verification rate is between 70% (including 70%) to 95% shall be graded as a "qualified enterprise of collection of proceeds";

(3)

The exporter whose verification rate is between 50% (including 50%) to 70% shall be graded as a "risky enterprise of collection of proceeds";

(4)

The exporter whose verification rate is lower than 50% shall be graded as a "highly risky enterprise of collection of proceeds"

Article 75

The principle of local and leveled assessment shall be applied in the assessment of verification. The branches and sub-branches of SAFE and the commerce administrations at the corresponding levels shall be in charge of the annual assessment and grading of the exporters under their respective jurisdictions.

Article 76

The system of notification shall be applied with respect to the results of the assessment of verification. The range of notification shall include the exporters and the administrations of customs, banks, and taxation under the respective jurisdictions of the foreign exchange administrations. The foreign exchange administrations at the province level shall, in conjunction with the commerce administrations at the corresponding level, make joint notification with respect to the results of the assessment and grading, and shall promulgate the names of the "honorable enterprises of collection of proceeds" and the "highly risky enterprises of collection of proceeds".

Article 77

The results of the grading of "honorable enterprises of collection of proceeds", "qualified enterprises of collection of proceeds", "risky enterprises of collection of proceeds", and "highly risky enterprises of collection of proceeds" shall take effect as of the date of the grading and the valid term is one year.

Article 78

Where the exporter has been graded as a "highly risky enterprise of collection of proceeds" in one year or been graded as a "risky enterprises of collection of proceeds" for two consecutive years, the commerce administration shall suspend or cancel its qualification for export business management.

Chapter 12 Treatment of the Loss of Verification Instruments

Article 79

In the case of loss of any verification form, the exporter and the foreign exchange administration shall deal with the problem pursuant to the following provisions:

(1)

In the case of loss of a blank verification form that has not been used in customs clearance, the exporter shall report the loss with the System of Collection of Proceeds within one workday.

(2)

In the case of loss of a verification form that has already been used in the customs clearance but not in the verification, the exporter shall report the loss and apply for reissuing of the special tax refund page of the verification form with the local foreign exchange administration on the basis of the verification certificates other than the verification form. The foreign exchange administration shall, after examining the verification certificates provided by the exporter and ensuring that there is no mistake, record the loss of the special tax refund page of the verification form through the System of Collection of Proceeds, and shall, within 3 workdays after finishing the verification for the exporter, issue to the exporter the Certificate of Reissuing of the Special Tax Refund Page of the Verification Form (see attachment 5).

(3)

In the case of loss of the special tax refund page of a verification form after the verification is finished, the exporter shall file an application for loss report and reissuing of the special tax refund page with the foreign exchange administration on the strength of the certificate of tax refund issued by the taxation administration. Where the taxation administration certifies that the tax has not been refunded, the foreign exchange administration shall, after recording the loss in the System of Collection of Proceeds", issue the Certificate of Reissuing of the Special Tax Refund Page of the Verification From to the exporter within 3 workdays.

Article 80

In the case of loss of the special page, the exporter, the bank and the foreign exchange administration shall deal with the problem pursuant to the following provisions:

(1)

In the case of overseas collection, the exporter shall apply for reissuing of the special page with the foreign exchange administration on the strength of a written report and the declaration form of overseas income. The foreign exchange administration shall verify the electronic data of the foreign-related income declaration submitted by the bank and make sure that the special page has not been used in the verification, and issue the "ratification document for reissuing of the special page" to the exporter (see attachment 6).

(2)

In the case of collection of export proceeds for which no international balance report is needed, the exporter shall apply for reissuing with the foreign exchange administration on the strength of the written report and the page of the foreign exchange settlement voucher/collection notice of export proceeds kept by the exporter, or the written explanation issued by the bank certifying the foreign exchange settlement or collection of the exporter, and the foreign exchange administration shall, after examining the documents provided by the exporter and ensuring that there is no mistake and that the special page has not been used in the verification, issue the Ratification Document for Reissuing of the Special Page to the exporter.

(3)

The bank shall reissue the special page to the exporter on the strength of the Ratification Document for Reissuing of the Special Page issued by the foreign exchange administration, and shall indicate on that special page the words of "reissued", the number of the original declaration form of foreign-related income or the special number of verification, and the source of the export proceeds.

Article 81

Where the exporter has lost the import or export customs declaration form, the case shall be dealt with pursuant to the Notice of the State Administration of Foreign Exchange and the General Administration of Customs on the Relevant Issues Concerning Paper Import and Export Customs Declaration Forms and the Relevant Electronic Records (No.14 [2003] of SAFE).

Chapter 13 Administration of Archives

Article 82

The foreign exchange administrations, banks, and exporters shall apply classified administration of the archives of verification transactions provided for herein, all the verification archives shall be kept for 3 years for future reference except those that need to be kept for a long time as set forth by the provisions. The foreign exchange administrations shall keep the relevant data under the verifications for 10 years.

(1)

Verification documents that the foreign exchange administrations should keep

With respect to the electronic data input manually, the corresponding paper records shall be kept;

Verification forms or verification reports (record pages kept by the foreign exchange administration);

Documents kept for future reference;

Margin verification documents;

Format and model of the special page provided for by the bank;

Documents examined for the issuance of the Certificate of Reissuing of Special Tax Refund Page, Certification of Deducted Proceeds/Verification, Ratification Document for Reissuing of the Special Page, and other relevant documents, as well as the record pages of the certificates issued kept by the foreign exchange administration;

Verification forms that should be kept under writing-off transactions;

Other documents that the foreign exchange administration deems must be kept.

(2)

Documents the banks should keep

Certificate of Deducted Proceeds/Verification

Ratification Document for Reissuing of the Special Page