General Affairs Department of State Administration of Foreign Exchange, Circular on Issues Relevant to the Sale and Payment of Foreign Exchange for Transfer of Goods Out of Export Processing Zones for Further Processing

Issued: June 2 2005

Main contents: Transfer of goods out of export processing zones for further processing between transferor enterprises in export processing zones and transferee enterprises outside special customs regulation zones such as export processing zones and bonded zones shall be calculated and paid for in foreign currencies (Item One). Designated foreign exchange banks may handle procedures for the sale of foreign exchange to the transferor enterprise for payment to the transferee enterprise or the overseas party on the strength of such documents as: (1) the original import declaration form and (2) the factory transfer contract (Item Two).