Issues Relevant to Further Intensifying the Reform of Foreign Exchange Administration on External Investments Circular
国家外汇管理局关于进一步深化境外投资外汇管理改革有关问题的通知
A circular on foreign exchange administration for external investments in the PRC.
(Issued by the State Administration of Foreign Exchange on October 15 2003 and effective as of November 1 2003.)
(国家外汇管理局于二零零三年十月十五日发布，自二零零三年十一月一日起执行。 )
To the branch or foreign exchange administration office of each province, autonomous region and municipality directly under the central government of the State Administration of Foreign Exchange and the Shenzhen, Dalian, Qingdao, Xiamen and Ningbo branches of the State Administration of Foreign Exchange:
国家外汇管理局各省、自治区、直辖市分局、外汇管理部，深圳、大连、青岛、厦门、宁波市分局：
In order to promote the intensified implementation of the "Going Abroad" development strategy, enhance the pilot reform of foreign exchange administration for external investments and further improve foreign exchange administration for external investments, relevant issues are notified hereby.
为推动“走出去”发展战略的深入贯彻实施，深化境外投资外汇管理改革试点工作，进一步完善境外投资外汇管理，现就有关问题通知如下：
1. The branches and foreign exchange administration offices in the areas approved by the State Administration of Foreign Exchange to carry out the pilot reform of foreign exchange administration for external investments (the Pilot Branches) may directly issue their examination opinions with regard to foreign exchange fund sources for external investment projects in which the sum of Chinese investors' investment in foreign exchange does not exceed US$3 million. Upon obtaining approval from the State Administration of Foreign Exchange, the Pilot Branches may authorize sub-branches of their jurisdictional areas, whose external investment business is relatively substantial, to directly issue examination opinions with regard to the foreign exchange fund sources for external investment projects in which Chinese investors' investment in foreign exchange does not exceed US$1 million.
一、经国家外汇管理局批准进行境外投资外汇管理改革试点地区的分局、外汇管理部(以下简称“试点分局”)，可以直接出具中方外汇投资额不超过300万美元的境外投资项目外汇资金来源审查意见。报经国家外汇管理局批准，试点分局可授权辖内境外投资业务量较大的支局直接出具中方外汇投资额不超过100万美元的境外投资项目外汇资金来源审查意见。
The approval authority regarding foreign exchange fund sources for external investments shall remain unchanged in regions other than the pilot areas.
非试点地区境外投资外汇资金来源审查权维持现状不变。
2. After having acquired verification and approval from the Pilot Branches, investing parties, on the principle of actual necessity, may remit early-stage project funds abroad, before their external invested enterprises are registered and established. The Pilot Branches shall, in accordance with relevant business operation procedures (See Annex 1), examine and approve applications submitted by investing parties for outward remittance of early-stage project funds.
二、经试点分局核准，投资主体可以在所投资境外企业注册成立之前，按照实需原则向境外汇出项目前期资金。试点分局应当按照有关业务操作规程(见附件1)，审核投资主体汇出项目前期资金的申请。
(1) The early-stage project funds include initial expenditures that are required by the establishment of external enterprises and performance deposits for acquisitions of the assets or equity interests of an external enterprise, etc. The early-stage funds shall be included into and administrated as a part of the total amount of foreign exchange investment of the Chinese investors and utilized by investing parties to meet their actual project needs.
(一) 项目前期资金包括筹建境外企业所需的开办费、为收购境外企业资产或股权所支付的履约保证金等。前期资金应当被纳入中方外汇投资总额之内进行管理，由投资主体依照项目实际情况使用。
(2) For early-stage funds that are used for initial expenditures, investing parties must directly pay the external institutions or individuals. They are not required to open a special external account for deposit. Investing parties shall carry out the application procedures for outward remittance of initial expenditures with their local Pilot Branches on the strength of the following documents:
(二) 对于开办费项下的前期资金，投资主体应当直接支付给境外机构或个人，无须开立境外专用账户存放。投资主体应当持下列材料向所在地试点分局申请办理开办费项下的资金汇出手续：
a. written application (including such contents as reasons for payment, name of the remittee, name of the deposit bank, account number, currency type, payment amount and detailed list of the uses of the initial expenditures);
1、 书面申请(包括支付事由、收款人名称、开户银行、账号、币别、支付金额、开办费使用清单等内容)；
b. examination opinion issued by the foreign exchange branch regarding foreign exchange fund sources for external investment;
2、 外汇局出具的境外投资外汇资金来源审查意见；
c. official reply and approval certificate granted by the project examination and approval department regarding the external investment project;
3、 项目审批部门关于该境外投资项目的批复和批准证书；
d. documents issued by relevant external departments evidencing the necessity for payment of such initial expenditures; and
4、 境外有关机构出具的对确需支付开办费的证明材料；
e. other documents required by the Pilot Branch in view of the circumstances.
5、 试点分局视情况要求的其它材料。
(3) For early-stage funds that are used for performance deposits, investing parties shall open a special external account for deposit and shall not directly pay the external institutions or individuals. Investing parties shall apply to open a special external account and to purchase foreign exchange for fund payment with their local Pilot Branch on the strength of the following documents:
(三) 对于履约保证金项下的前期资金，投资主体应当在境外开立专用账户存放，不得直接支付给境外的机构或个人。投资主体应当持下列材料向所在地试点分局申请开立境外专用账户和资金购付汇：
a. written application (including such contents as reasons for opening the account, name of the proposed bank for opening the account, currency type, payment amount, term of use and descriptions of the purposes.)
1、 书面申请(包括开户事由、拟开户银行、币别、金额、使用期限、用途说明等内容)；
b. business licences of the investing parties, which have passed annual inspection by the administration for industry and commerce;
2、 投资主体经工商管理部门年审合格的营业执照；
c. relevant account administration provisions of the place where the special external account will be opened;
3、 境外专用账户开户地的账户管理有关规定；
d. such documents as descriptions of the assets or equity interests proposed to be acquired, appraisal report of assets or equity interests proposed to be acquired issued by a professional intermediary agent, and documents evidencing the necessity of the payment of performance deposit issued by relevant external authorities; and
4、 对拟收购资产或股权的情况说明、专业中介机构对拟收购资产或股权的评估报告、境外有关机构出具的确需缴纳履约保证金的证明等材料；
e. other documents required by the Pilot Branch in view of the circumstances.
5、 试点分局视情况要求的其它材料。
Special external accounts shall be opened in the investing parties' names and with first choice given to an external PRC-invested bank. Advance verification and approval must be obtained from the Pilot Branch if any alterations occur to such accounts. Investors shall carry out the procedures for purchase of foreign exchange for payment of early-stage funds used for performance deposits on the strength of the verification and approval documents for opening the external bank accounts, evidencing documents for opening external bank accounts, and verification and approval documents for purchase of foreign exchange for fund payment.
境外专用账户应当以投资主体名义开立，并首选在境外中资银行开户,如有变更事项应当事先经试点分局核准。投资主体凭试点分局出具的境外开户核准件、境外开户证明材料及资金购付汇核准件办理履约保证金项下前期资金的购付汇手续。
(4) The surplus of early-stage funds may be directly transferred to the bank accounts of the external enterprise after its establishment. If such transfer is necessary, investing parties shall transfer the surplus of the early-stage funds to the bank accounts of the external enterprise within seven days after the date of the establishment of the external enterprise (for those who opened special external accounts, the special account shall be closed simultaneously). Within 20 days after the date of the establishment of the external enterprise, the investing parties shall file descriptions of the use of the early-stage funds, the transfer of the surplus funds, and the opening and closing of the special external account with the Pilot Branch that originally approved the outward remittance of foreign exchange funds for the record
(四) 所投资境外企业成立后，剩余前期资金可直接划入该境外企业账户。需要划转的，投资主体应当在境外企业成立后7日内将剩余资金划入该境外企业账户(开立有境外专用账户的，应当同时关闭该境外专用账户)，并在境外企业成立后20日内，将该笔前期资金的已使用情况、剩余资金划转情况及有关境外专用账户开立、关闭情况一并报原核准汇出资金的试点分局备案。
In the event that the external invested enterprise cannot be established due to failure of establishment preparation or failure of equity interest acquisitions, investing parties shall repatriate the surplus of the early-stage funds within seven days after the investors made the decision to terminate such investment project (for those who opened special external accounts, such accounts shall be closed simultaneously). Within 20 days after the decision regarding the termination of the investment projects is made, the investing parties shall file descriptions on the use of the early-stage funds, the repatriation of the surplus funds, and the opening and closing of the special external accounts with the Pilot Branch that originally approved the outward remittance of foreign exchange funds for the record.
由于筹建失败、股权收购失败等原因使所投资境外企业未能成立的，投资主体应当在作出终止该项投资的决议后7日内将剩余前期资金全额调回境内(开立有境外专用账户的，应当同时关闭该境外专用账户)，并在作出终止该项投资的决议后20日内，将该笔前期资金的已使用情况、剩余资金调回情况及有关境外专用账户关立、关闭情况一并报原核准汇出资金的试点分局备案。
3. In addition to submitting relevant documents in accordance with the State Administration of Foreign Exchange, Issues Relevant to Streamlining the Examination of the Foreign Exchange Fund Sources for External Investments Circular (Hui Fa [2003] No.43), investors engaged in external investments, for external assets or equity interests acquisition projects, shall also submit evidencing documents to the SAFE branch at the locality, such as documents describing the assets or equity interests proposed to be acquired, acquisition agreements, appraisal reports of the acquired subject matters issued by intermediary agencies, etc. For the registered capital increase of external enterprises that are already established, investing parties shall also submit compliance documents to the SAFE branch at the locality, such as the official reply issued by the department in charge of the project concerning establishment of the external enterprise, as well as examination opinions of fund sources, approval documents regarding outward remittance of foreign exchange funds, foreign exchange registrations for external investments, registration certificates and the business licence of the external enterprise issued by the SAFE branch when the external enterprise is established.
三、投资主体从事境外投资，除按照《国家外汇管理局关于简化境外投资外汇资金来源审查有关问题的通知》(汇发2003，43号)的规定提交相关材料以外，对于收购境外资产或股权的项目，另须向所在地外汇局提交拟收购资产或股权的说明文件、收购协议、中介机构对拟收购标的的评估报告等证明材料。对已设立境外企业增资的，另须向所在地外汇局提交项目主管部门关于设立境外企业的批复以及该境外企业设立时外汇局出具的资金来源审查意见、外汇资金汇出核准件、境外投资外汇登记证、境外企业注册登记证书和营业执照等合规性材料。
4. For external investment projects that have already been established but that were not established in compliance with the foreign exchange registration formalities, investing parties shall carry out subsequent foreign exchange registration for external investments with the SAFE branch at the locality prior to May 31 2004 on the strength of the following documents:
四、已在境外成立、但未按规定办理外汇登记手续的境外投资项目，投资主体应当在2004年5月31日之前，持以下材料向所在地外汇局申请补办境外投资外汇登记：
a. written application (including a description of the general history and fund sources, etc. of the project);
1、 书面申请(包括对项目历史概况和资金来源等的说明)；
b. official reply, approval certificate, or confirmation letter of the project issued by the department in charge of external investments;
2、 境外投资主管部门对项目的批复、批准证书或确认函；
c. registration certificate and business licence of the external enterprise;
3、 境外企业的注册登记证书、营业执照；
d. articles of association and contract of the external enterprise;
4、 境外企业的章程、合同；
e. composition and members of the board of directors of the external enterprise;
5、 境外企业的董事会构成及人员名单；
f. information of the bank accounts of the external enterprise (including the deposit bank, account numbers, etc.);
6、 境外企业账户开立情况(包括开户银行及账号等内容)；
g. balance sheet of the external enterprise for the previous year; and
7、 境外企业上一年度的资产负债表；
h. other documents required by the SAFE branch in view of the circumstances.
8、 外汇局视情况要求的其它材料。
After receiving all of the above-mentioned documents and having such documents verified, the SAFE branch shall handle subsequent foreign exchange registration for the external investments of the investing parties and issue within 15 working days the Foreign Exchange Registration Certificate for External Investments. For external investment projects in which the investing parties applied for subsequent registration but failed to provide the documents in 4-b, the SAFE branch shall first put the relevant information of the external investment project on the record, then issue the Foreign Exchange Registration Certificate for External Investments upon the receipt of the letter of confirmation from the department in charge of external investments.
外汇局收到完整的上述材料并审核无误后，应当15个工作日内为投资主体办理境外投资外汇补登记，并颁发《境外投资外汇登记证》。对于提出了补登记申请、但不能提供前款所列第2项材料的境外投资项目，外汇局应当先将该境外投资项目的有关情况备案，待境外投资主管部门出具确认函后，再颁发《境外投资外汇登记证》。
5. SAFE branches shall, within the first 10 days of each month, submit new Statistics Tables on Foreign Exchange Business for External Investments (see Annex 2) to the Department of Capital Account Items of the State Administration of Foreign Exchange. The Comprehensive Statistics Tables on Pilot External Investments originally submitted by the Pilot Branches are not in use any more.
五、各分局应当在每月的前10个工作日内，向国家外汇管理局资本项目管理司上报新的《境外投资外汇业务统计表》(见附件2)，试点分局原报送的《境外投资试点统计汇总表》不再报送。
This Circular shall come into effect on
November 1 2003. If any problems occur during its implementation, please report them in a timely manner to the Department of Capital Account Items of the State Administration of Foreign Exchange.
本通知自2003年11月1日起执行。执行中如有问题，请及时向总局资本项目管理司反映。
Annexes:
附件：
1. Operational Procedures for Outward Remittance of Early-Stage Funds for External Investments
1、 境外投资前期资金汇出的操作规程
2. Statistics Tables on Foreign Exchange Business for External Investments
clp reference:3800/03.10.15promulgated:2003-10-15effective:2003-11-012、 境外投资外汇业务统计表
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