Improving the Verification of Foreign Exchange Settlement for Capital Account Items and the Administration of Foreign Debt Registration of Foreign-invested Enterprises Circular
国家外汇管理局关于改进外商投资企业资本项目结汇审核与外债登记管理工作的通知
(Issued by the State Administration of Foreign Exchange on May 17 2004 and effective 45 days after the date of issue.)
(Issued by the State Administration of Foreign Exchange on May 17 2004 and effective 45 days after the date of issue.)
(国家外汇管理局于二零零四年五月十七日发布，自发布之日起45天起开始施行。)
Hui Fa [2004] No.42
汇发[2004]42号
To the branches and offices of the State Administration of Foreign Exchange of all provinces, autonomous regions and municipalities directly under the central government, and Shenzhen, Dalian, Qingdao, Xiamen and Ningbo municipal branches:
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 encourage a reasonable and orderly flow of foreign capital in China so as to safeguard and promote the balance of international payments, matters concerning the verification of foreign exchange settlement for capital account items and the administration of foreign debt registration of foreign-invested enterprises are hereby notified as follows:
为引导外商投资资金在境内合理有序流动，维护和促进国际收支平衡，现就改进外商投资企业资本项目结汇审核与外债登记管理工作有关事项通知如下：
I. When handling exchange settlement of capital funds of foreign-invested enterprises, each branch of the State Administration of Foreign Exchange (hereafter, SAFE Branches) and authorized designated foreign exchange banks, in addition to carrying out verification in accordance with requirements of the State Administration of Foreign Exchange, Issues Relevant to Improving Foreign Exchange Control on Foreign Direct Investment Circular (Hui Fa [2003] No.30) and the State Administration of Foreign Exchange, Reforming the Mode of the Administration of Foreign Exchange Settlement of Capital Funds of Foreign Investment Circular (Hui Fa [2002] No.59), shall request the enterprises applying for a single foreign exchange settlement of an amount exceeding US$200,000 to provide an exchanged funds usage written payment order, and such capital shall be directly paid to the payee designated by the same. For an enterprise's small payments for wages, fund reserves or foreign exchange settlements with an amount less than US$200,000 (including US$200,000), it is permitted not to require a written payment order, and to insert the funds from foreign exchange settlement into the renminbi account of the applicant enterprise, but when that enterprise is making its next exchange settlement request, it shall provide a detailed breakdown of the exchanged funds' usage from the previous settlement.
一、 国家外汇管理局各分局(以下简称外汇局)以及经授权的外汇指定银行在办理外商投资企业资本金结汇时，除根据《国家外汇管理局关于完善外商直接投资外汇管理工作有关问题的通知》(汇发〔2003〕30号)和《国家外汇管理局关于改革外商投资项下资本金结汇管理方式的通知》(汇发〔2002〕59号)的要求进行审核外，对于一次结汇金额在20万美元以上的，应要求申请结汇的企业提供有关结汇资金用途的书面支付命令，直接向其指定的收款人进行支付。对于企业支付工资、留存备用金或结汇资金在20万美元以下(含20万美元)的小额支付，可以不要求申请企业提供书面支付命令而将结汇资金进入申请企业人民币账户，但该企业在办理下一笔结汇时，应提供上一笔结汇资金的用途明细清单。
II. When a SAFE Branch is handling procedures for verification of exchange settlement of foreign debt funds of a foreign-invested enterprise, it shall carry out their verification duties by strictly adhering to the current operation rules and the requirements stipulated by Item One hereof, and if the exchange settlement of foreign debt funds of foreign-invested enterprises is to be used to repay renminbi debts, the SAFE Branch shall not grant approval.
二、 外汇局在办理外商投资企业外债资金结汇核准手续时，应严格按照现行操作规程以及本通知第一条的规定履行审核职责，如外商投资企业外债资金结汇用于偿还人民币债务，外汇局应不予批准。
III. The sum of the aggregate amount of medium and long-term foreign debts and the balance of short-term foreign debt borrowed by a foreign-invested enterprise shall be strictly kept within the difference between the examination and approval department approved total investment and registered capital. Except upon approval by the original examination and approval department of a change to total investment, the SAFE Branch must not handle procedures for foreign debt registration and exchange settlement verification for a foreign-invested enterprise's excess portion of foreign debt remitted in. If a foreign-invested enterprise's foreign debt funds inward remittance is already in excess, it shall conscientiously go to the original examination and approval department to handle retrospective verification of change in total investment, and the SAFE Branch will allow the enterprise to keep the foreign debt funds within a three-month period. If this period is exceeded, the SAFE Branch shall through a capital account item foreign exchange work verification document notify the account-opening bank to send back the excess portion of funds through the original channel.
三、 外商投资企业举借的中长期外债累计发生额和短期外债余额之和严格控制在审批部门批准的项目投资总额和注册资本之间的差额以内。非经原审批部门批准变更投资总额，外汇局不得办理外商投资企业超额汇入部分外债资金的登记和结汇核准手续。如外商投资企业外债资金已超额汇入，应自觉到原审批部门补办变更投资总额核准，外汇局允许企业在三个月期限内保留外债资金，如超出此期限，外汇局应以资本项目外汇业务核准件的形式通知开户银行将超额部分资金沿原汇路退回。
IV. Each designated foreign exchange bank shall modify corresponding internal operation flows and apply the above requirements. The SAFE Branches at each level shall be responsible for guiding and supervising the designated foreign exchange banks within their jurisdiction to improve their management of foreign exchange settlement for capital account items as well as the management of inward and outward foreign debt funds remittances.
四、 各外汇指定银行应修订相应的内部业务流程，落实上述操作要求，各级外汇局负责对辖区外汇指定银行改进资本项目结汇管理和外债资金汇出入管理工作进行指导和监督。
V. The aforementioned measures are to further improve and implement current foreign exchange administration regulations on capital account items. The SAFE Branches at each level shall pay attention to dissemination and interpretation, thus assuring the thorough enforcement of the above measures.
五、 以上各项措施系对现有资本项目外汇管理法规的进一步完善和落实，各级外汇局应注意作好宣传解释工作，保证上述各项措施的顺利贯彻执行。
VI. This Circular shall take effect 45 days after its issuance. The SAFE Branches at each level shall forward this Circular as soon as possible to all designated foreign exchange banks within their jurisdiction. In the event that any problems arise in the course of implementation, please report to the Department of Capital Account Items of the State Administration of Foreign Exchange in a timely manner.
六、 本通知自发布之日起45天起开始施行。各级外汇局在收到本通知后，应尽快转发辖地各外汇指定银行。执行中如遇问题，请及时向国家外汇管理局资本项目管理司反馈。
1 Translation provided by Coudert Brothers LLP.
clp reference:3820/04.05.17 prc reference:汇发[2004]42号 promulgated:2004-05-17This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now