Laws of the People's Republic of China

State Administration of Foreign Exchange

Notice of the State Administration of Foreign Exchange on Relevant Issues concerning the Administration on Commission Sale of Foreign Currency Travelers Check

HuiFa [2004] No.15

March 1st, 2004

The branches and departments of foreign exchange administration of the State Administration of Foreign Exchange of all provinces, autonomous regions, and municipalities directly under the Central Government, the branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all the Chinese-funded designated foreign exchange banks:

With a view to strengthening supervision over the flowing of foreign currency, and regulating the administration on foreign currency travelers check, and in accordance with the "Provisions on the Management of Settlement, Sales and Payment of Foreign Exchange" (HuiFa [1996] No.210), the Interim Measures for the Administration on Carrying Foreign Currency Cash to Enter and Exit the Territory (HuiFa [2003] No.102), and the relevant provisions, we hereby make the following notice on the relevant issues concerning the commission sale of foreign currency travelers check.

I.

The term "foreign currency travelers check" as mentioned in this Notice refers to the note, which is sold on commission basis by domestic commercial banks (hereinafter referred to as the "banks"), and printed by overseas banks or special financial institutions, with the issuing institution as the final payer and with the convertible currency as the price calculation and settlement currency as well as with fixed denomination.

II.

The objects to whom the foreign currency travelers check is commissioned to sell, may be the domestic institutions, foreign institutions within the territory of China, or domestic resident individuals or non-resident individuals.

III.

The term "non-resident individuals" as mentioned in this Notice shall refer to foreign natural persons (including person without nationality), Hong Kong, Macao, and Taiwan compatriots, and Chinese natural persons who hold the passport of the People's Republic of China but have obtained the right of permanent residence overseas.

IV.

The foreign currency travelers check sold by the banks on commission basis is limited in principle to overseas traveling, going on a pilgrimage to sacred places, visiting or meeting relatives, overseas hospitalization, studying abroad and other foreign payment under the non-trade item, and shall not be used for foreign payment under trade item or capital item.

V.

When handling the business of commission sale of foreign currency travelers check, the banks shall make examination strictly in accordance with the "Provisions on the Management of Settlement, Sales and Payment of Foreign Exchange" and the "Detailed Rules for the Implementation of the Administration on Purchase of Foreign Exchange by Domestic Residents" (HuiFa [2002] No.68) and the Notice on Relevant Issues concerning Regulation of Foreign Exchange Management on Non-resident Individuals (HuiFa [2004] No. 6) and the pertinent provisions, and handle purchasing formalities for those meeting the requirements. No bank shall handle purchase formalities for those not meeting the requirements.

VI.

A domestic institution or a foreign institution within the territory of China, applying for purchasing foreign currency travelers check, shall buy it with the capital under the current foreign exchange account, foreign exchange capital account, and in other foreign exchange accounts specifying that the money may be used for outlays under current account, or with the foreign exchange purchased by using the capital of the Renminbi account. No foreign currency travelers check shall be purchased by using foreign currency cash or Renminbi cash.

VII.

A domestic institution or a foreign institution within the territory of China shall, when purchasing foreign currency travelers check, submit the following certification documents:

1.

Application for purchase;

2.

Official documents of approval for task of going abroad or passport with effective visa;

3.

Budget form for fees for going abroad; and

4.

Other certification documents.

The banks shall examine and verify the truthfulness of the aforesaid certification documents, and handle formalities for purchase of foreign currency travelers check for those meeting the requirements.

VIII.

The domestic resident individuals may purchase foreign currency travelers check with the capital in their foreign exchange deposit accounts or with foreign currency cash, or with the capital in their Renminbi accounts or with the foreign exchange purchased by using Renminbi cash.

IX.

Non-resident individuals may purchase foreign currency travelers check with the capital in their foreign exchange deposit accounts or with foreign currency cash.

The legal Renminbi income of the non-resident individuals within the territory of China may be used for purchasing foreign currency travelers check after being converted into foreign exchange in accordance with the pertinent provisions.

X.

Where a resident individual or non-resident individual purchases foreign currency travelers check with the capital in his foreign exchange cash accounts, he shall handle it according to the provisions as follows:

1.

Where the foreign currency travelers check purchased at one time is equivalent to 10 thousand dollars or less, he shall file an application to the bank with the certification documents as follows:

(1)

Application for purchase;

(2)

Effective identification certificate of the person himself;

(3)

Passport with effective entry visa of the country or region, which has been properly handled, or the pass to Hong Kong and Macao regions (including the pass for coming-and-going to Hong Kong and Macao regions).

The banks shall examine and verify the truthfulness of the aforesaid certification documents, and handle formalities for purchasing foreign currency travelers check for those in conformity with the provisions.

2.

Where the foreign currency travelers check purchased at one time is equivalent to over 10 thousand dollars up to 50 thousand dollars, he shall file an application to the bank with the following certification documents:

(1)

Application for purchase;

(2)

Effective identification certificate of the person himself;

(3)

Passport with effective entry visa of the country or region, which has been properly handled, or the pass to Hong Kong and Macao regions (including the pass for coming-and-going to Hong Kong and Macao regions); and

(4)

Relevant documents, which can prove the truthfulness of the purpose of the use of the foreign currency travelers check.

The banks shall examine and verify the truthfulness of the aforesaid certification documents, and handle formalities for purchasing foreign currency travelers check for those in conformity with the provisions.

3.

Where the foreign currency travelers check purchased at one time is equivalent to over 50 thousand dollars, he shall, on the strength of the certification documents as prescribed in paragraph 2 of the present Article, file an application to the foreign exchange administration at the place where it is located, who shall then examine and verify the truthfulness thereof. And the banks shall handle formalities for purchasing foreign currency travelers check for him according to the approval documents issued by the local foreign exchange administration.

XI.

Where a domestic resident individual or non-resident individual purchases foreign currency travelers check with the capital in their foreign currency cash deposit accounts or with foreign currency cash, he shall handle it according to the provisions as follows:

1.

Where the foreign currency travelers check purchased at one time is equivalent to 10 thousand dollars or less, he shall file an application to the bank with the certification documents as follows:

(1)

Application for purchase;

(2)

Effective identification certificate of the person himself;

(3)

Passport with effective entry visa of the country or region, which has been properly handled, or the pass to Hong Kong and Macao regions (including the pass for coming-and-going to Hong Kong and Macao regions); and

(4)

A domestic resident individual shall also provide the bank withdrawal certificate and other certification documents that can prove his legal foreign exchange resources. A non-resident individual shall also provide the customs declaration form for the amount of foreign currency cash declared by him when he enters China, and other certification documents that can prove his legal foreign exchange resources.

The banks shall examine and verify the truthfulness of the aforesaid certification documents, and handle formalities for purchasing foreign currency travelers check for those in conformity with the provisions.

2.

Where the foreign currency travelers check purchased at one time is equivalent to over 10 thousand dollars up to 20 thousand dollars, he shall file an application to the bank with the certification documents as follows:

(1)

Application for purchase;

(2)

Effective identification certificate of the person himself;

(3)

Passport with effective entry visa to the country or region, which has been properly handled, or the pass to Hong Kong and Macao regions (including the pass for coming-and-going to Hong Kong and Macao regions); and

(4)

A domestic resident individual shall also provide the bank withdrawal certificate and other certification documents that can prove his legal foreign exchange resources. A non-resident individual shall also provide the customs declaration form for the amount of foreign currency cash declared by him when he enters China, and other certification documents that can prove his legal foreign exchange resources; and

(5)

Relevant documents that can prove the truthfulness of its purpose.

The banks shall examine and verify the truthfulness of the aforesaid certification documents, and handle formalities for purchasing foreign currency travelers check for those in conformity with the provisions.

3.

Where the foreign currency travelers check purchased at one time is equivalent to over 20 thousand dollars, he shall, on the strength of the certification documents as prescribed in paragraph 2 of the present Article, file an application to the foreign exchange administration at the place where it is located, who shall then examine and verify the truthfulness thereof. And the banks shall handle formalities for purchasing foreign currency travelers check for him according to the approval documents issued by the local foreign exchange administration.

XII.

Where a domestic resident individual purchases foreign currency travelers check with the foreign exchange purchased in Renminbi, the bank shall handle the formalities for purchase of foreign exchange with Renminbi in accordance with the pertinent provisions of the "Detailed Rules for the Implementation of the Administration on Purchase of Foreign Exchange by Domestic Resident Individuals". The domestic resident individuals may decide by themselves the amount of foreign currency travelers check they will purchase within the quota of the approved foreign exchange purchase.

XIII.

When purchasing foreign currency travelers check, in case the purchaser can not obtain the effective visa beforehand because of special circumstances, he shall file an application to the banks or foreign exchange administrations respectively according to the limits as follows:

1.

Where the equivalence is 10 thousand dollars or below, the purchaser shall file an application to the bank with the pertinent certification documents, and the bank shall handle the formalities for him by referring to the aforesaid provisions after making examination on the truthfulness thereof; and

2.

Where the equivalence is over 10 thousand dollars, the purchaser shall file an application to the local foreign exchange administration with the pertinent certification documents. After the local foreign exchange administration has made examination on it, the bank shall handle formalities for the purchase of foreign currency travelers check upon the strength of the approval documents issued by the local foreign exchange administration.

XIV.

When handling formalities for purchasing foreign currency travelers check, the banks shall handle formalities for declaration of the statistics on balance of international payment as prescribed.

XV.

Where a purchaser purchases foreign currency travelers check at one time by using the capital in his foreign currency cash account or using foreign currency cash, and the amount of the foreign currency travelers check exceeds the equivalence of 10 thousand dollars, the bank shall have them itemized, and handle formalities for report on large and doubtful payment transaction in accordance with the "Provisions on Anti-money- laundering through Financial Institutions" (HuiFa [2003] No.1) and the "Measures for the Administration of Reporting Large and Doubtful Payment Transactions"(HuiFa [2003] No. 3) and the relevant provisions.

XVI.

The banks shall make statistics separately on the number and amount of the business of commission sale for foreign currency travelers check and the business of foreign currency exchange, and have them kept for future reference.

XVII.

This Notice shall enter into force as of April 1st, 2004.

All the branches shall, after receiving this Notice, transmit it to their subordinated sub-branches, foreign-funded banks and relevant entities as soon as possible. And all the Chinese-funded designated foreign exchange banks shall transmit it to the branches or sub-branches subject to them as soon as possible. In case any problem arises in the implementation, please feedback it to the State Administration of Foreign Exchange in good time.