State Administration of Foreign Exchange, Circular on Optimizing Exchange Control in Order to Support the Development of Foreign-Related Business

国家外汇管理局关于优化外汇管理 支持涉外业务发展的通知

June 19, 2020 | BY

Susan Mok

Forex control relaxed to facilitate cross-border business

Clp Reference: 3800/20.04.10 Promulgated: 2020-04-10 Effective: 2020-04-10
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Issued: April 10, 2020

Effective: as of date of issuance

Main contents: When qualified enterprises use income on the capital account such as investment capital, foreign debts and proceeds from offshore listings to make domestic payments, they shall not be required to provide to a bank in advance supporting documentation showing genuineness on an amount by amount basis (Article 1).

Cancellation of the registration of qualified foreign loans secured with domestic security and loans extended abroad is delegated to banks for handling (Article 3).

Registration of special foreign exchange refund matters is abolished and refunds may be handled directly with the financial institution for Type-A enterprises dealing in trade in goods (Article 2).

 

The purchase of foreign exchange for the repayment of domestic foreign exchange loans with an export background is relaxed (Article 4).

| clp reference:3800/20.04.10 issued:2020-04-10 effective:2020-04-10

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