Laws of the People's Republic of China

State Administration of Foreign Exchange

Notice of the State Administration of Foreign Exchange on the Administration of Foreign Exchange in Bonded Logistic Parks

Hui Fa [2005] No. 92

December 20, 2005

The branches and foreign exchange departments of the State Administration of Foreign Exchange in all provinces, autonomous regions and municipalities directly under the Central Government and the municipal branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

With a view to promoting the development of bonded logistic parks and regulating the income and expenses of foreign exchange and foreign exchange businesses, hereby the relative issues concerning the administration of foreign exchange in bonded logistic parks are notified as follows:

I.

The administration of foreign exchange in bonded logistic parks shall, unless there is any special provision in the present Notice, be implemented in accordance with the provisions prescribed in the Measures for the Administration of Foreign Exchange in Bonded Areas (Hui Fa [2002] No. 74), by principle.

II.

The enterprises in bonded logistic parks (hereinafter referred to as the "park enterprises") shall conduct the registration of foreign exchange and collect the Registration Certificate of Foreign Exchange in Bonded Logistic Parks (hereinafter referred to as the Registration Certificate) by the reference to the Measures for the Administration of Foreign Exchange in Bonded Areas. The format of the Registration Certificate shall be formulated by the reference to the Registration Certificate of Foreign Exchange in Bonded Areas.

A park enterprise located in a bonded area may handle the procedure of getting a Registration Certificate in accordance with the relative provisions, or endorse the Registration Certificate of Foreign Exchange at local foreign exchange bureaus and indicate its nature on it.

Conducting any foreign exchange business, a park enterprise shall show its Registration Certificate besides other valid vouchers and commercial documents as prescribed in the present Notice and other relative regulations on the administration of foreign exchange.

III.

In case a non-park enterprise within the territory of China purchases any goods within a bonded logistic park, it may pay to the involved park enterprise, or pay directly abroad, or pay to any other relevant non-park enterprise having the right for goods within the territory of China.

Going through the payment formalities for import, a non-park enterprise within the territory of China shall go to the relative bank with the valid vouchers and commercial documents in accordance with the relative provisions on the administration of settlement, sale and payment of foreign exchange. In particular, if the goods belong to a non-park enterprise within or out of the territory of China, the relevant warehousing agreement or entrustment agreement as signed between the non-park enterprise within or out of the territory of China and the relevant park warehousing enterprise shall be submitted as well.

After receiving the foreign exchange as paid by a non-park enterprise within the territory of China mentioned in the preceding paragraph, a non-park enterprise having the right for goods within the territory of China shall conduct the formalities for verification on the basis of such certificates as the notice on account entry of foreign exchange or settlement vouchers of foreign exchange in accordance with the relative provisions.

Where a park enterprise signs any export contract with an overseas enterprise, the relevant goods are declared by a non-park enterprise to the Customs to go across the border, and the transfer of the amount of the price of the goods as collected by the park enterprise from abroad to the non-park enterprise in the currency of foreign exchange shall be conducted in accordance with the provisions prescribed in the Reply of the General Bureau of the State Administration of Foreign Exchange on the Issue about the Transfer of Foreign Exchange from Enterprises in Bonded Areas to Those in Non-bonded Areas (Hui Zong Fu [2004] No. 79).

VI.

When a park enterprise having the right of engaging in foreign trade declares any imported or exported goods to the Customs, it shall conduct the formalities for registration in the roster of import entities that make payment in foreign exchange and in the archives of verification for export and then go to the designated foreign exchange bank to conduct the formalities for collection and payment of foreign exchange with valid vouchers and commercial documents in accordance with the provisions on the administration of settlement, sale and payment of foreign exchange. Particularly, the relative import customs declaration signed and issued by the Customs shall be indicated for the payment for any purchase of foreign exchange.

When declaring any imported or exported goods to the Customs, as to the collection of export proceeds in foreign exchange and external payment for purchase of foreign exchange, a park enterprise shall go through the formalities for verification in accordance with the relevant provisions. In particular, the export proceeds in foreign exchange shall be first injected into an account of foreign exchange but not directly settled. When any amount is directly paid for import from an account of foreign exchange, no formalities for payment in foreign exchange for import shall be gone through.

V.

For any formality for payment in foreign exchange for import conducted on the basis of relative customs declaration bills for imported goods or archival checklists of entry goods, the designated foreign exchange bank shall verify, indicate and conclude the original e-accounts of the said declaration forms or archival checklists of entry goods on the platform of "E-port".

VI.

For any economic trade between a bonded logistic park and a foreign entity, all the relative park enterprises shall make statistical declaration on international receipts and payments in accordance with the relative provisions. For any economic trade between a bonded logistic park and a non-park area within the territory of China, the relative non-park enterprises need not make any statistical declaration on international receipts and payments.

VII.

The purchase and payment of foreign exchange under non-trade items as well as the trade on capital account of a park enterprise shall be conducted in accordance with the relative provisions applied to the regions out of customs surveillance.

The payment of relative expenses under non-trade items in advance or in apportionment to the overseas parent company or any associated company by a park enterprise, shall be conducted in accordance with the relative provisions in the Notice of the State Administration of Foreign Exchange on the Administration of Sale and Purchase of Foreign Exchange under Non-trade Items by Multi-national Corporations (Hui Fa [2004] No. 62).

VIII.

In accordance with the present Notice and other relative provisions, the branch of the State Administration of Foreign Exchange at the locality of a bonded logistic park shall constitute the detailed rules for carrying out the administration of foreign exchange in bonded logistic parks under its jurisdiction and shall, within 2 months as of the promulgation day of the present Notice, report the detailed rules to the State Administration of Foreign Exchange for approval before their implementation. Some detailed rules on implementation constituted by some branches shall become annulled after the new detailed rules on implementation go into effect.

The Reply of the General Bureau of the State Administration of Foreign Exchange about Pilot Purchase of Foreign Exchange under Non-trade Items in Shanghai Waigaoqiao Bonded Logistic Park (Hui Zong Fu [2004] No. 21), the Reply of the State Administration of Foreign Exchange concerning the Measures for the Administration of Pilot Purchase of Foreign Exchange under Non-trade Items by Enterprises in Shanghai Waigaoqiao Bonded Logistic Park (Hui Zong Fu [2004] No. 57) and the Reply of the State Administration of Foreign Exchange on the Issue concerning the Verification and Write-off of Foreign Exchange Payment for Goods Purchased from Overseas Companies and Deposited in Shanghai Waigaoqiao Bonded Logistic Park by Enterprises within the Territory of China (Hui Zong Fu [2004] No. 63) shall become annulled as of the promulgation day of the present Notice.

IX.

Bonded Logistic Centers shall be governed by the present Notice.

The foreign exchange collection and payment between special customs surveillance areas, such as bonded areas, export processing zones and bonded logistic parks, and bonded customs surveillance areas, such as bonded logistic centers, bonded warehouses and export supervised warehouses, shall be conducted in accordance with Article 7 in the Measures for the Administration of Foreign Exchange in Bonded Areas and Article 31 in the Interim Measures for the Administration of Foreign Exchange in Export Processing Zones. Under trade items, especially the relative contracts (agreements), invoices, archival checklists of goods or customs declaration as signed and issued by customs shall be indicated. If the goods belongs to any non-park enterprise within or out of the territory of China, the warehousing agreement or entrustment agreement signed between the non-park enterprise within or out of the territory of China and the relative park warehousing enterprise shall be indicated as well.

X.

The present Notice shall go into effect as of the promulgation day. In case anyone or entity violates any provision of the present Notice, he/it shall be punished as prescribed in the Regulation of the People's Republic of China on the Administration of Foreign Exchange.

After receiving the present Notice, all branches and administrative departments are required to transmit it to the sub-branches and designated foreign exchange banks under their jurisdiction in time. Any problem that occurs in the process of implementation shall be fed back to the General Bureau of the State Administration of Foreign Exchange.

Contact person: Hu Chunyu, Xu Weigang

Telephone number: 010гн68402235, 68402238