Laws of the People's Republic of China

The People's Bank of China

Decree of President of the People's Bank of China

No.2

Measures on the Statistics and Declaration of International Receipts and Payments approved by the State Council on August 30, 1995 is hereby promulgated shall be come into force as of the day of January 1, 1996.

President of the People's Bank of China, Dai Xianglong

September 14, 1995

Measures on the Statistics and Declaration of International Receipts and Payments

Article 1

These Measures are formulated in accordance with the Statistics Law of the People's Republic of China to perfect international receipts and payments statistics.

Article 2

The coverage of statistics and declarations of international receipts and payments includes all economic transactions which occur between Chinese and non-Chinese residents.

Article 3

The term "Chinese residents" as referred to in these Measures includes:

(1)

all natural persons who have resided within China for over one year except students and patients or from foreign countries or from the regions of Hong Kong, Macao and Taiwan and foreign staff members of foreign embassies or consulates in China and their family members;

(2)

Chinese citizens staying abroad for a short period of time (less than one year), Chinese students studying abroad, Chinese patients seeking medical treatment abroad and staff members of Chinese embassies or consulates and their family members;

(3)

enterprises or institutions (including enterprises with foreign investment and financial institutions with foreign capital) with legal person status established within China according to law and offices resided in China of legal persons outside China (not including agencies stationed in China of international organizations nor foreign embassies or consulates stationed in China; and

(4)

Chinese governmental organs (including Chinese embassies or consulates abroad), social organizations and army units.

Article 4

These Measures shall be applicable in all regions within China, including bonded areas and bonded warehouses set up within China.

Article 5

The State Administration of Foreign Exchange shall, pursuant to the procedures prescribed by the Statistics Law of the People's Republic of China, be responsible for organizing the implementation of statistics and declarations of international receipts and payments, exercising supervision and inspection and conducting the gathering, compiling and publishing of statistics on the status of international receipts and payments and international investments, formulating and revising detailed rules for the implementation of these Measures and producing and issuing declaration forms for international receipts and payments statistics. Relevant government departments shall assist in the work concerning statistics and declarations of international receipts and payments.

Article 6

The statistics and declaration of international receipts and payments shall effect the principle of declaration by the transaction's principals and adopt measures combining indirect declarations and direct declarations and allow for both declarations on a deal-by-deal basis and declarations at regular intervals.

Article 7

Chinese residents shall timely, accurately and completely declare their international receipts and payments.

Article 8

Chinese residents who engage in business transactions with non-Chinese residents through a financial institution located in China shall, though the same financial institution, declare to the State Administration of Foreign Exchange or to one of its branches the subject matters of the transactions.

Article 9

Securities dealers and securities registration agencies within China who engage in foreign transactions of securities for themselves or as agents of clients shall declare to the State Administration of Foreign Exchange or one of its branches their foreign transactions and the corresponding receipts, payments, dividends and interest distributions of such transactions.

Article 10

Dealers within China who conduct foreign transactions in futures or futures options for themselves or as agents of clients shall declare to the State Administration of foreign Exchange or one of its branches their foreign transactions and the corresponding receipts and payments of such transactions.

Article 11

Various financial institutions within China shall declare directly to the State Administration of Foreign Exchange or one of its branches the details of foreign transactions which they operate themselves, including foreign assets and liabilities, changes in these assets and liabilities, receipts and payments of corresponding profits and interest, receipts and payments of foreign financial services and other kinds of receipts and payments; and implement duties related to activities carried out by Chinese residents through them for the statistics and declaration of international receipts and payments.

Article 12

Non-financial Chinese institutions who have opened an account outside China shall declare directly to the State Administration of Foreign Exchange or one of its branches their transactions and account balances which have arisen which non-Chinese residents through foreign accounts.

Article 13

Enterprises with foreign investment within China, enterprises with direct investment abroad and other non-financial institutions with foreign assets or liabilities shall declare directly to the State Administration of Foreign Exchange or one of its branches their foreign assets and liabilities, changes in these assets or liabilities and receipts and payments of corresponding profits, dividends and interest.

Article 14

The State Administration of Foreign Exchange or its branches may conduct samplings or general surveys of the state of affairs of international receipts and payments.

Article 15

The State Administration of Foreign Exchange or its branches shall have the authority to examine and check the contents of declarations by Chinese residents. The declarants or relevant agencies or individuals shall supply all data and conveniences necessary for such examination and check.

Article 16

The State Administration of Foreign Exchange and its branches shall keep in strict confidence the specific data declared and shall only utilize this data for international receipts and payments statistics. Statistical staff members in international receipts and payments may not supply any agency or individual with any data in any form declared by the declarants except as otherwise provided for by law.

Article 17

Chinese residents violating these Measures may be punished by the State Administration of Foreign Exchange or its branches by a warning, circular of criticism or by a fine in accordance with the seriousness of the violation.

Article 18

Where any of the various kinds of financial institutions violates these Measures, the State Administration of Foreign Exchange or its branches may, in accordance with the seriousness of the violation, issue a warning, circulate a notice of criticism, impose a fine or revoke the institution's license for foreign exchange business operations.

Article 19

Any statistical staff member in international receipts and payments who violates the provisions of Article 16 of these Measures shall be given administrative sanctions according to law by the State Administration of Foreign Exchange or its branches.

Article 20

The State Administration of Foreign Exchange shall formulate the Rules for the implementation of the Measures on the statistics and Declaration of International Receipts and Payments in accordance with these Measures.

Article 21

These Measures shall enter into force as of January 1, 1996.