State Administration of Foreign Exchange, Provisions on the Pilot Reform of the System of Verification of Foreign Exchange Payments for Imports

Issued: April 6 2010

Main contents: Beginning from May 1 2010, pilot reform of the system of verification of foreign exchange payments for imports will be implemented in seven provinces (municipalities): Tianjin, Jiangsu, Shandong, Hubei, Inner Mongolia, Fujian and Qingdao. The procedures for foreign exchange payments for imports will be much simplified after the reform: the majority of import work units will no longer be required to handle the procedures for on-the-spot verification of foreign exchange payments for regular imports, and banks shall not need to conduct examination via the network when handling foreign exchange payments for imports (Article 1).

Foreign exchange bureaux shall carry out off-site checking, monitoring and warning on import work units using the “System for Checking of Receipts and Payments of Foreign Exchange for Trade”, and conduct on-site checking on unusual trading entities. They will implement administration of import work units by category. They will provide maximum convenience in respect of foreign exchange payments to Grade One Import Work Units, and impose stringent administration on Grade Two and Grade Three Import Work Units (Article 2). Upon signing the confirmation letter at the foreign exchange bureau, an import work unit will be automatically included on the “List of Import Work Units that Make Foreign Exchange Payments” (Article 4). During the pilot period, cross-province (autonomous region and municipality directly under the central government) foreign exchange payments shall be handled in accordance with relevant current provisions on the verification of foreign exchange payments for imports (Article 5).