State Administration of Foreign Exchange, Issues Relevant to Further Adjusting the Policies on Foreign Exchange Accounts for Current Account Items Circular

Issued: September 9 2002
Effective: October 15 2002
Interpreting authority: State Administration of Foreign Exchange

Main contents: The Circular unifies conditions for wholly Chinese-owned enterprises and foreign-invested enterprises opening foreign exchange accounts for current account items. Wholly Chinese-owned enterprises shall face less stringent requirements when applying to open foreign exchange accounts for current account items. Any domestic enterprise (Chinese or foreign invested) authorized to engage in foreign business or that has foreign exchange income under current items may apply to the State Administration of Foreign Exchange to open a foreign exchange account for current account items (Item One). Existing foreign exchange settlement accounts for current account items and designated foreign exchange accounts shall be consolidated to form foreign exchange accounts for current account items (Item Two). The balance of a foreign exchange account for current account items of domestic organizations shall be limited to 20% of the foreign exchange income under current account items of the previous year. The balance of new foreign exchange accounts for current account items opened by domestic organizations that had no foreign exchange income under current account items in the previous year shall not exceed US$100,000 (Item Three). The scope and limit on payments and receipts applied to current account foreign exchange settlement accounts and foreign exchange accounts opened before the implementation of this Circular shall remain in effect (Item Four). Attached to the Circular is the Administration of Foreign Exchange Accounts for Current Account Items of Domestic Organizations Implementing Rules, which detail the opening, using and closing of foreign exchange accounts for current account items.
Related legislation: PRC Foreign Exchange Control Regulations (2nd Revision), Aug 5 2008, CLP 2008 No.8 p77 and Administration of Foreign Exchange Accounts Inside China Provisions, Oct 7 1997, CLP 1998 No.2 p7