China Business and Intellectual Property Lawyers & Attorneys : King & Wood Law Firm : China Law Insight : IP, Arbitration, Litigation, Securities, Foreign Investment

The New Rules amended the old “Administrative Rules of the People’s Republic of China on Foreign Exchanges” promulgated in 1996 (the “Old Rules”).  For the purpose of accommodating the fundamental changes in the international balance of China, namely that the foreign exchange (“FX”) reserve of China is no longer  short but is increasing too rapidly, the New Rules have adopted a balanced control on both inflow and outflow of FX, which may possibly lead to the conclusion that the conditions for the inflow of FX may be stricter than for the outflow.  The New Rules have also improved the measures for the supervision and management of FX, which, rather than a system based solely on the regulatory authorities, creates a   regulatory system involving the regulatory authorities, the financial institutions engaging in FX businesses and the domestic entities engaging in FX transactions.  In addition, the New Rules have emphasized supervision in the examination on the authenticity of the underlying transactions.

Furthermore, for the purpose of accommodating the enhancement of supervisions on cross-boarder funds flow and the implementation of the examination on the authenticity of the underlying transactions as required by the New Rules, the State Administration of Foreign Exchange (“SAFE”) promulgated on 2 July 2008 a Circular on Issues concerning Management of the Registration of the Foreign Debts under the Item of Corporate Trade in Goods (the “Circular”) before the promulgation of the New Rules, which provides measures to be carried out for the registration of foreign debts in the form of prepayment and deferred payment arrangements under the trade in goods.  We understand that SAFE is aiming to reinforce the authenticity of trades by prescribing additional registration procedures to prepayment and deferred payment arrangements to furtherprevent the flow of hot money under the disguise of trade payments.

We set out below an introduction on the key features of the New Rules, the Circular and their respective relevant provisions.  This Bulletin is for general guidance only.

Administration on FX under Current Accounts

●    Remittance back to China of proceeds in FX is no longer required

The New Rules no longer require a domestic entity to remit its proceeds generated in FX back to China.  Instead, it allows both domestic entities and domestic individuals to either keep their FX proceeds in a place out of China or remit the same back to China.  The detailed conditions and terms for the reservation of proceeds out of China and for the remittance of proceeds back to China will be specified by the relevant governmental authorities.

●    Exchange of proceeds in FX into RMB is no longer required

The New Rules do not restrict on international payment or remittance under current accounts, which further enhances the convenience of FX transactions under current accounts.  Proceeds in FX are no longer required to be exchanged into RMB.  Proceeds in FX may now be retained in FX or sold to financial institutions in exchange of RMB according the relevant rules.

Administration on FX under Capital Accounts

●    Broadening of the channels for capital flowing out of China

The New Rules simplify the administrative method on direct offshore investment.  In this regard, instead of the mandatory approval for direct offshore investment, a registration approach is employed.  The New Rules also add certain principles for financing in China by foreign entities, for investment on foreign securities and derivatives by domestic entities, and for loans provided by domestic entities to foreign entities.

●    Revolution in the supervision method for supervising FX under capital accounts

The New Rules abolish the old default rule that the FX proceeds under capital accounts shall be deposited into FX accounts maintained with the relevant designated FX bank.  Instead, except for those FX that do not need to be approved, FX under capital accounts may be retained in FX or be exchanged into RMB upon the approval by the FX supervising authority.  With regard to the purchase of FX under capital accounts, such FX may in principle be purchased after the relevant transaction documents are submitted to the relevant financial institution which sells FX.

●    Enhancement of supervision on the utilization of capital remitted into China

The New Rules adopt a measure to trace the utilization of foreign capital remitted into China which had not been seen in the old regulatory system.  The New Rules require that the FX under capital accounts remitted into China or the RMB proceeds in exchange of such FX shall be used according to the purpose approved by the relevant regulatory authorities.  The FX supervising authority is entitled to supervise and examine  the utilization of the above mentioned FX and RMB, and on the accounts in which the above FX or RMB are deposited.

Supervision and Administration on FX Transactions and FX Market

●    Power of regulatory authorities has been specified and financial institutions assume the obligation to assist in regulatory supervision

With regard to the supervision and administration on FX transactions, the New Rules on the one hand specifically provide that the FX supervising authority is entitled to the supervision and examination on FX transactions and on the other hand establish a system under which financial institutions engaging in FX businesses shall assist in the regulatory supervision by certain measures taken through FX accounts.

●    Permissibility of non-financial institutions to engage in FX businesses

With regard to the supervision and administration on FX market, the New Rules ease the requirement on subjects allowed to participate in inter-bank transactions, and permit an entity other than a financial institution to engage in such inter-bank market transaction according to the relevant rules issued by the FX supervising authority as long as such an entity meet the requirements set out by the FX supervising authority.

Liabilities and Legal Consequences

The New Rules reduce the punishment scale of illegal outflow of FX, and create punishment on illegal inflow of FX, which aims to balance the control on both inflow and outflow of FX.  Meanwhile, the New Rules focus supervision on the authenticity of the underlying transactions. As long as the underlying transaction based on which a FX transaction is to be carried out is authentic, no regulatory punishment would generally be imposed on such a FX transaction.  To accommodate the assistance by financial institutions in regulatory supervision, the New Rules increase the punishment level of the punishment for financial institutions and create punishment on the liable personnel in the financial institutions.

Foreign Debt Registration Measures under Trade in Goods

In relation to the enhancement of supervisions on cross-boarder funds flow and the examination on the authenticity of the underlying transactions as required by the New Rules, the Circular issued before the New Rules has already to some extent implemented part of the relevant rules set out in the New Rules.

●    Application

The registration requirements under the Circular apply generally to enterprises established under  PRC law and the individual foreign traders within the PRC, no matter whether the enterprise is registered in any special area, whether the goods in question will be actually in or out of the PRC Customs or whether relevant trade proceeds would be subject to the cross examination by SAFE and the relevant Customs.

●    Registration

Corporations need to log on the SAFE’s trade credit registration management system and complete the online registration on a case by case basis. No hardcopy documents need to be submitted for such online registration.

With regard to the registration for prepayments, where there is a prepayment clause in the export contract, the PRC exporter shall complete the prepayment registration within 15 working days starting from the execution date thereof and complete the prepayment withdrawal registration within 15 working days upon the actual receipt of such prepayment.

With regard to the registration for deferred payments (Apply from October 1, 2008), the PRC importer shall, within 15 working days upon either the execution date of an import contract containing a deferred payment clause or the issuance date of the Custom declaration of the importation of goods, the payment in connection with which will not due in 90 days, complete the deferred payment registration, and shall complete the cancellation registration within 15 working days after the registered deferred payment is actually made.

●    Noncompliance

It’s noteworthy that to make clear the legal consequences for noncompliance with foreign debt management under the Circular, SAFE issued separately a Circular on Issues concerning Penalties on Violating Management of the Registration of the Foreign Debt under the Item of Corporate Trade in Goods (Huifa[2008]No. 34), providing in detail the liabilities of corporations and banks for breaches of the Circular.

Conclusion

The New Rules adopt the experience of supervision gained through the recent revolution and opening of China, and reserves room for the next steps which may make trades and investments in China  more convenient, create a more complete supervising system, and grant a safer business environment.  In the meanwhile, the Circular implements certain rules of the New Rules on the supervision of cross-border funds flow and the examination on the authenticity of the underlying transactions, which introduces new compliance requirements for adopting prepayment and/or deferred payment arrangements by the PRC importer and/or exporter.  

Considering that the relevant systems are of their initial launching, it’s foreseeable that both the management measures and the systems would be fine-tuned over  time.  Going forward, we will follow up with this issue and if you need any further information, please contact:

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外汇管理制度的重大变革

——解读新《中华人民共和国外汇管理条例》

金杜律师事务所 融资组银行部

背景

2008年8月5日，国务院总理温家宝签署第５３２号国务院令，公布了新修订的《中华人民共和国外汇管理条例》(以下简称“新条例”)。新条例于公布之日起实行，并对原来的外汇管理制度做出了较大幅度的改革以适应近年来中国经济的快速发展和国际经济形势的深刻变化。

新条例对1996年公布的原《中华人民共和国外汇管理条例》(以下简称“原条例”)作了全面修订。新条例为了应对中国国际收支形势发生的根本性变化，即由外汇短缺转为外汇储备增长过快，对外汇流入流出实施了均衡管理。这可能意味着新条例的实施将使得外汇流入的条件更加严格，而外汇流出的条件则变得宽松。新条例也健全了外汇监管手段和措施，从单一的监管机关监管扩展到监管机关、经营外汇业务的金融机构和有外汇经营活动的境内机构三方面共同配合进行全面管理，并将监管重点放在了对交易真实性的审查上。

另外，在新条例出台之前，为配合新条例加强跨境资金流动监管并细化对交易真实性的审查，外汇局于2008年7月2日发布了《关于实行企业货物贸易项下外债登记管理有关问题的通知》（以下简称“通知”），对企业货物贸易项下预收货款和延期付款形式的短期外债实行登记管理。我们理解，通知旨在通过对企业贸易项下的预收和延付安排增加程序性的登记要求，加强对于相关贸易真实性的审查，从而防止热钱以贸易形式流入。

我们将在下文介绍新条例和通知的主要内容及其相关规定。本简报旨在做出一般性的指引，而不够成对某一特定案例的具体意见。

经常项目外汇管理

● 取消经常项目外汇收入强制汇入国内的要求

新条例不再要求境内机构将经常项目项下的外汇收入调回境内，而是允许境内机构和境内个人将其外汇收入调回境内或者存放境外。调回境内或者存放境外的具体条件、期限等将由国务院有关部门做出规定。

● 取消经常项目外汇收入强制结汇要求

新条例规定对经常性国际支付和转移不予限制，并进一步便利经常项目外汇收支。新条例取消了经常项目外汇收入强制结汇要求，经常项目外汇收入可按照相关规定保留或者卖给金融机构。

资本项目外汇管理

● 资本流出渠道被拓宽

新条例简化了对境外直接投资外汇管理的行政审批，将审批制更改成了登记制；增设境外主体在境内筹资、境内主体对境外证券投资和衍生产品交易、境内主体对外提供商业贷款等交易项目的管理原则。

● 改革资本项目外汇管理方式

新条例废除了资本项目项下的外汇收入应当存入指定银行开立的外汇账户的原则性要求，而规定除国家规定无需批准的以外，资本项目外汇收入可以经外汇管理机关的批准后保留或者结汇；资本项目外汇支出国家未规定需事前经外汇管理机关批准的，原则上可以持规定的有效单证直接到金融机构办理。

● 加强流入资本的用途管理

新条例新增了旧的监管模式中未曾使用过的流入资本用途管理。新条例要求资本项目外汇及结汇后人民币资金应当按照有关主管部门及外汇管理机关批准的用途使用，并授权外汇管理机关对资本项目外汇及结汇后人民币资金的使用和账户变动情况进行监督检查。

外汇交易监督管理和外汇市场管理

● 监管机关职权更明确，金融机构新增协助义务

在外汇交易管理方面，新条例进一步确定了外汇管理机关对外汇交易进行监督检查的权力，同时，新条例也建立了由经营外汇业务的金融机构通过外汇账户进行协助监管的制度。

● 允许非金融机构进行外汇交易

新条例放宽了对银行间外汇市场交易主体的要求，允许符合国务院外汇管理部门规定的相关条件的非金融机构也可以按照国务院外汇管理部门的相关规定在银行间外汇市场进行外汇交易。

法律责任

新条例降低了对外汇非法流出行为的处罚力度，并增加了对外汇非法流入行为的处罚，以实现对外汇流入和流出的均衡管理。同时，新条例在极大程度上将监管重点放到了对真实交易的监管上，原则上只要是有真实交易基础的用汇行为，则不加以处罚。为了配合金融机构的协助监管，新条例调高了对金融机构违法行为的处罚力度，并增加了对与外汇违法行为有关的金融机构负有直接责任的人员的处罚。

货物贸易项下外债登记管理制度

与上述的新条例加强跨境资金流动管理以及对交易真实性进行监管相关，在新条例之前发布的通知已经在一定程度上细化了新条例中相关部分的规定。

● 适用

通知中针对预收货款和延期付款的贸易外债登记管理普遍适用于境内注册的企业和个人对外贸易经营者，无论企业注册地是否在特殊经济区域，无论货物是否进出关，无论出口收入是否纳入外汇局和海关的联网核查，均要办理贸易项下外债登记。

● 登记管理

企业需登陆外汇局网上服务平台上的贸易信贷登记管理系统，对预收货款和延期付款办理逐笔登记和注销。在线登记环节无需向外汇局提供书面资料。

就预收货款登记而言，在出口合同包括预收货款条款的情况下，企业应于合同签订之日起15个工作日内，办理预收货款登记，并于实际收到该等预收货款之日起15个工作日内办理预收货款提款登记。

就延期付款登记（自2008年10月1日起实施）而言，企业应在签订含延期付款条款的进口合同或在海关实际签发进口货物报关单(但企业未实际付汇)后90天之日起15个工作日内，办理延期付款登记；并应在相关的延期付款对外实际支付之日起15个工作日内，办理延期付款注销登记。

● 违规行为的处罚

值得注意的是，对于违反货物贸易项下外汇管理规定的行为外汇局专门下发《关于货物贸易项下违反外汇管理行为有关处罚问题的通知》（汇发[2008]34号），规定银行和企业的相关违规责任。

总结

新条例吸收了近年来改革开放在监管措施方面的成果，并为下一步改革预留了政策空间，以使贸易投资更加便利，行政监督更加完善，交易环境更加安全。而通知则对新条例中对于跨境资金流动监管和基础交易真实性审查做出了细化的规定，明确了贸易项下外债的登记管理制度，并为银行和企业进行贸易项下的预收货款和延期付款安排规定了新的合规要求。

鉴于与新条例和通知相关的管理系统均处于初建阶段，该等系统的运行尚需进一步的调整和完善，我们将及时注意相关法规的发展。

如您需要任何进一步的信息，请联系：

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