State Administration of Foreign Exchange, Issues Relevant to Further Adjusting the Administrative Policies on Verification and Reconciliation for Import and Export Circular

Issued: July 10 2002
Effective: August 1 2002

Main contents: The Circular adjusts and streamlines certain import and export verification and reconciliation procedures in order to help Chinese enterprises adapt to the new trade environment after China's accession to the World Trade Organization. In connection with export, filing with local branches of the State Administration of Foreign Exchange (SAFE) will no longer be required for forward exchange receipts unless the receipts are expected to be 180 or more days forward (Section One). In connection with import, filing with local SAFE branches will not be required for foreign exchange payments even if settlement involves "letters of credit, collection and delivery of more than 90 days" (Section Three). Such settlement will be treated as "normal foreign exchange payment".