State Administration of Foreign Exchange, Foreign Exchange Control in Bonded Zones Measures

Promulgated: July 25 2002
Effective: October 1 2002
Interpreting authority: State Administration of Foreign Exchange
Applicability: The Measures apply to receipts and payments of foreign exchange and other foreign exchange businesses concerning bonded zones (Article 6). For the purposes of the Measures, "bonded zones" refers to special areas in the PRC set up with the approval of the State Council where the customs exercises enclosed supervision (Article 2). "Enterprises inside bonded zones" refers to Chinese enterprises and foreign-invested enterprises registered in bonded zones (Article 4).

Main contents: According to the Measures, all enterprises inside bonded zones shall complete foreign exchange registration and obtain a Bonded Zone Foreign Exchange Registration Certificate (Article 11). Their foreign exchange current accounts and capital accounts shall be set up with the required approvals and documents (Articles 17). Purchase of foreign exchange for payment outside their foreign exchange accounts is restricted (Articles 24, 26 and 34). Where self-owned foreign exchange is insufficient for certain permitted purposes, purchase of foreign exchange may be permitted subject to certain document requirements (Articles 25, 29, 30 and 31). Banks are required to strictly comply with the Measures in selling foreign exchange to enterprises inside bonded zones and keep and report detailed records of such sales (Articles 32, 33 and 36).
Related legislation: PRC, Foreign Exchange Control Regulations (2nd Revision), Aug 5 2008, CLP 2008 No.8 p77
Repealed legislation: Foreign Exchange Control in Bonded Zones Measures, Dec 16 1995; Questions Relevant to Implementing the«Foreign Exchange Control in Bonded Zones Procedures» Circular, Jan 24 1996; Zhejiang Branch's Questions for Determining the Nature of and Dealing with Sale and Payment of Foreign Exchange by Banks Outside Bonded Zones to Enterprises Inside Bonded Zones Reply, Jul 27 1998; Questions Relevant to Foreign Exchange Control in Bonded Zones Circular, Sep 1 1998; Questions Relevant to Foreign Exchange Control in Bonded Zones Official Reply, Jul 26 2000 and Transmission of the «Questions Relevant to the Establishment of Branches by Foreign-invested Enterprises in Bonded Zones Circular»Circular, Jan 29 2002 as well as other auxiliary rules and normative documents