Measures for the Administration on Individual Foreign Exchange of the People’s Republic of China

The Measures for the Administration on Individual Foreign Exchange of China have been deliberated and adopted at the 27th executive meeting of the presidents of the People’s Bank of China on November 30, 2006. They are hereby promulgated and shall enter into force as of February 1, 2007.

Chapter I General Provisions

Article 1 In order to facilitate individual foreign exchange revenue and expenditure, simplify business procedures and regulate foreign exchange control, the present Measures are instituted under the Regulations of the People’s Republic of China concerning the Management of Foreign Exchange, the Regulations on the Management of the Sale and Purchase of and Payment in Foreign Exchange and other related laws and regulations.

Article 2 Individual foreign exchange businesses may be classified into domestic and overseas individual foreign exchange business in accordance with the parties involved in the transaction as well as that under the current account and that under the capital account in accordance with the nature of transaction. Individual foreign exchange business shall be administered on the basis of the classification mentioned above.

Article 3 The individual foreign exchange business under the current account may be administered according to the principle for convertibility, while that under the capital account may be administered according to the convertibility procedure.

Article 4 The State Administration of Foreign Exchange and branches thereof (hereinafter referred to as foreign exchange authorities) shall supervise and administer domestic and overseas individual foreign exchange businesses according to the provisions in the present Measures.

Article 5 An individual shall carry out the related foreign exchange business according to the related provisions in the present Measures. The banks shall operate such businesses for individuals as payment and collection of foreign exchange, sales and purchase of foreign exchange, and the opening of foreign exchange accounts according to the provisions in the present Measures as well as examine and verify the authenticity of the valid identity certificates and the related d certification materials submitted by individuals. The remittance institutions and foreign currency exchange institutions (including foreign exchange offices) shall deal with individual foreign exchange business for individuals according to the provisions in the present Measures.

Article 6 Banks shall deal with the business of individual purchase and sales of foreign exchange through the management information system designated by the foreign exchange authorities, accurately and exactly key in the related information and keep the materials concerning the disposal of individual business for at least five years for future examination.

Article 7 All banks and individuals shall comply with the related provisions of the present Measures in dealing with individual foreign exchange businesses, and may not evade quota supervision through method of splitting or evade authenticity control by means of using false business papers or vouchers.

Article 8 As regards individual cross-border revenue and expenditure, an individual shall fulfill the procedures of the declaration for statistics of international balance of payment according to the related provisions on the declaration for statistics of international balance of payment.

Article 9 The management of total annual amount shall be applicable to individual settlement of and domestic individual purchase of foreign exchange. In case it is within the total annual amount, it shall be dealt with at a bank upon the strength of valid personal identity certificate; if it is beyond the total annual amount, those under the current account shall be dealt with at a bank upon the strength of his/her valid personal identity certificate and the related certification materials indicating the trading volume, etc. while those under the capital account shall be dealt with according to the related provisions of Chapter III.

Chapter II Administration for the Individual Foreign Exchange under the Current Account

Article 10 As regards an individual foreign trade operator engaging in the import and export of goods and has registered the foreign trade operation right in the commercial authority, his/her foreign exchange revenue and expenditure related to trade shall be administered as the foreign exchange revenue and expenditure of an institution.

Article 11 After handling the industrial and commercial registration or other formalities for business operation, An individual may entrust an enterprise qualified to handle foreign trade to act as his/her agent so as to deal with the collection, payment, transfer and settlement of the foreign exchange capital under the item of import and export the item of tourism and shopping as well as the item of petty trade in border areas.

Article 12 In case a domestic individual remits any foreign exchange abroad for current expenditure, where the amount of a single transaction or the total amount remitted abroad in a same day is within the provisioned amount, he/she shall deal with it at a bank upon the strength of his/her valid identity certificate; where the amount of a single transaction or the total amount remitted abroad in a same day exceeds the provisioned amount, he/she shall deal with it at a bank upon the strength of his/her valid identity certificate and related certification materials indicating trading volume, etc.

Article 13 As regards the lawful income in RMB under the current account gained by an overseas individual within the territory of China, he/she may use it to purchase foreign exchange or remit it abroad at a bank upon the strength of his/her valid identity certificate and related certification materials.

Article 14 The foreign exchange that is remitted from abroad and still not used by an overseas individual may be remitted back at a bank through the original channel by such individual upon the strength of his/her valid identity certificate.

Article 15 In case an overseas individual reconverts the RMB that he/she has converted but not used into foreign currency banknote, if the amount is small, he/she may, upon the strength of his/her valid identity certificate, deal with it at a bank or a foreign currency exchange institution; if the amount is higher than the provisioned amount, he/she may, upon the strength of the original exchange memo, deal with it at a bank.

Chapter III Administration for Individual Foreign Exchange under the Capital Account

Article 16 Where a domestic individual directly invests abroad in accordance with the related provisions, he/she may purchase foreign exchange or remit his/her self-owned foreign exchange abroad upon the approval of the foreign exchange authority and shall deal with registration of foreign exchange for overseas investment.

Article 17 In case a domestic individual purchases B shares so as to invest in overseas finance under items of rights and interests, regular earnings or others as approved by the state, he/she shall conduct it through a domestic financial institution qualified in corresponding businesses according to related provisions.

Article 18 In case a domestic individual pays any insurance premium for foreign exchange life insurance to a domestic insurance operation institution, he/she may pay by purchased or his/her self-owned foreign exchange.

Article 19 The lawful income under the capital account gained by a domestic individual from overseas may conduct foreign exchange settlement upon the examination and approval of the foreign exchange authority.

Article 20 In case a domestic individual needs to purchase or pay any foreign exchange so as to donate or transfer property to abroad, he/she shall comply with the related provisions and shall obtain the approval of the foreign exchange authority.

Article 21 In case a domestic individual offers any loan to anyone overseas, borrows any foreign debt, grants any abroad guarantee or directly conducts any transaction related to overseas commodity futures or financial derivative products, he/she shall comply with the related provisions and handle the corresponding registration at the foreign exchange authority.

Article 22 In case an overseas individual purchases domestic commercial house, he/she shall abide by the principle of self-use, the revenue, expenditure and exchange of his/her foreign exchange capital shall comply with the related provisions on foreign exchange management. The RMB gained by an overseas individual through selling his/her domestic commercial house may be remitted abroad after exchange for foreign currency upon the approval of the foreign exchange authority.

Article 23 Unless otherwise stipulated by the state, an overseas individual may not purchase any domestic financial product under items of rights and interests and regular earnings, etc. When purchasing B shares, an overseas individual shall conform to the related provisions of the state.

Article 24 An overseas individual’s domestic deposit of foreign exchange shall be list into the balance of short-term foreign debts of depository financial institutions for management.

Article 25 When providing any loan or guarantee to any domestic institution, an overseas individual shall, conform to the related provisions on the foreign debts control.

Article 26 In case an overseas individual transfers abroad his/her domestic lawful property, he/she shall abide by the related provisions on the foreign exchange control concerning external transfer of individual property.

Chapter IV Administration for Individual Foreign Exchange Accounts and Foreign Currency Banknotes

Article 27 Individual foreign exchange accounts may be classified into domestic individual foreign exchange account and overseas individual foreign exchange account in accordance with the category of related parties concerned as well as foreign exchange settlement account, capital account and foreign exchange savings account in accordance with the nature of account.

Article 28 A bank shall define the category of the party to an account in accordance with such certification materials submitted by an individual for opening an account as the identity certificate and so on, and the name recorded on the opened foreign exchange account shall accord with that recorded on his/her valid identity certificate. The domestic transfer between the foreign exchange account of a domestic individual and that of an overseas individual shall be treated as a cross-border transaction for management.

Article 29 An individual may, upon handling the industrial and commercial registration or other formalities for business operation, open a foreign exchange settlement account.

Article 30 In case a domestic individual conducts foreign exchange trading or any other transaction related to foreign exchange, he/she shall handle such business through a domestic financial institution enjoying corresponding business qualification in accordance with law.

Article 31 An overseas individual who makes domestic direct investment may, upon the approval of the foreign exchange authority; open a special foreign exchange account for foreign investors. The capital in such account may conduct the foreign exchange settlement upon the approval of the foreign exchange authority. The overseas individual may transfer the foreign exchange capital in such account into the capital account of the foreign-funded enterprise, if a direct investment project is approved by the competent department of the state.

Article 32 An individual may, upon the strength of his/her valid identity certificate, open a foreign exchange savings account. The revenue and expenditure scope of foreign exchange savings account shall cover the collection and payment of non-business foreign exchange and capital transfer between the foreign exchange savings account of this individual and that of his/her linear relative with the same subject category. The joint foreign exchange savings account opened by a domestic and an overseas individual shall be treated as the foreign exchange savings account of the domestic individual for management.

Article 33 When entering or leaving the country by carrying foreign currency banknotes, an individual shall observe the related administrative provisions of the state.

Article 34 In case an individual purchases foreign exchange and withdraw banknotes or withdraw banknotes from his/her foreign exchange savings account, where the amount of a single transaction or the total amount in a same day is below the amount of foreign currency banknote allowed to be carried abroad as provisioned in the related provisions, he/she may directly deal with it at a bank; if the amount of a single transaction or the accumulated amount of the banknotes withdrawn for that day is above the provisioned amount mentioned above, he/she shall, upon the strength of his/her valid identity certificate, certificate on the purpose of the banknotes withdrawn and other materials, report to the local foreign exchange authority for record in advance.

Article 35 In case an individual deposits his/her foreign currency banknotes into his/her foreign exchange savings account, as regards the amount of a single transaction or the accumulated account in a same day below the amount of foreign currency banknote allowed to carry in as provision in the related provisions, he/she may deal with it directly at a bank; as regards the amount of a single transaction or the accumulated account in a same day exceeding the above-mentioned amount, he/she shall, upon the strength of his/her valid personal identity certificate, declaration form for carrying foreign currency banknote into China or his bank form for the withdrawal of foreign currency banknote of the original bank, deal with it at a bank.

Article 36 Banks shall record, analyze and report the large-amount or suspicious foreign exchange transactions according to the related stipulations on anti-money laundering.

Chapter V Supplementary Provisions

Article 37 For the purpose of the present Measures,

(1) “a domestic individual” means a Chinese citizen holding a resident, serviceman or armed police identity card of the People’s Republic of China.
(2) “an overseas individual” means a foreign citizen (including stateless person) holding a passport or a compatriot from Hong Kong, Macao or Taiwan holding a mainland travel permit for Taiwan, Hong Kong and Macao residents.
(3) “a non-business foreign exchange under the current account” means the foreign exchanges under the current account except for foreign exchange earnings from trade.

Article 38 Individual traveler’s checks shall be conducted according to he related provisions on foreign currency banknotes, while business of individual foreign currency cards shall be conducted according to the related provisions on the management for foreign currency cards.

Article 39 In case any entity or individual violates any provision in the present Measures, the foreign exchange authority shall punish it/him according to the Regulations of the People’s Republic of China concerning the Administration of Foreign Exchange and other related provisions; and in case of the crime being constituted, the violator shall be transferred to the judicial organ to subject it/him to criminal responsibility.

Article 40 The State Administration of Foreign Exchange shall take charge of instituting corresponding detailed rules for the present Measures and determining the total annual amount and the prescribed amounts and so on.

Article 41 The State Administration of Foreign Exchange shall be responsible for the interpretation of the present Measures.

Article 42 The present Measures shall enter into force as of February 1, 2007. In case any previous provision is inconsistent with the present Measures, the latter shall prevail. The administrative provisions on foreign exchange as listed in the Appendix shall be repealed as of the date when the present Measures go into effect.

Appendix:List of the Repealed Provisions

1. Circular concerning the Related Matters on the Depositing and Withdrawing of Large Sums of Foreign Currency Banknotes by Residents or Non-resident Individuals (Hui Guan Han Zi [1997] No.123)
2. Interim Measures for the Management on Domestic Resident Individual Foreign Exchange (Hui Fa [1998] No.11)
3. Circular concerning the Amendment of the Interim Measures for the Management of Domestic Resident Individual Foreign Exchange (Hui Fa [1999] No.133)
4. Circular concerning the Amendment of the Notice on Matters Involving the Private Use of Foreign Exchange by Domestic Resident Individuals and Printing and Distribution of the Interim Measures for the Management on Domestic Resident Individual Foreign Exchange (Hui Fa [1999] No.305)
5. Circular Concerning the Purchase of and Payment in Foreign Exchange against RMB Reserves Money by Residents for Self-financed Study Abroad (Hui Fa [2000] No.82)
6. Reply on the Related Matters on the Remittance of Foreign Exchange Deposits by Domestic Resident Individuals and the Alteration of the Name of Foreign Exchange Accounts (Hu Fa [2000] No.291 )
7. Circular of the State Administration of Foreign Exchange Concerning the Adjustment of the Policies on Foreign Exchange Purchase and Payment by Resident Individuals for Their Self-financed Study Abroad (Hui Fa [2001] No.185)
8. Circular of the State Administration of Foreign Exchange Concerning the Issuance of the Detailed Implementation Rules for the Administration on Purchase of Foreign Exchange by Domestic Resident Individuals (Hui Fa [2002] No.68)
9. Circular of the State Administration of Foreign Exchange Concerning the Pilot on the Business of Selling Exchanges to Domestic Individual Resident Individuals for Travel to the Boarder Areas of Adjacent Countries (Hui Fa [2002] No.121)
10. Circular of the State Administration of Foreign Exchange Concerning the Adjustment of the Policies for Domestic Resident Individuals to Purchase Foreign Exchanges under Current Accounts (Hui Fa[2003] No. 104)
11. Circular of the State Administration of Foreign Exchange Concerning the Related Matters on Quitting Schools and Foreign Exchange Swap by Foreign Personnel Studying in China (Hui Fa [2003] No.62)
12. Circular of the Comprehensive Department under the State Administration of Foreign Exchange concerning the Suspension of Filing the Registration Form of the Deposit and Withdraw of Large Sum of Banknotes (Equivalent to 10,000 Dollars or More) by Resident or Non-resident Individuals and the Transfer of Foreign Currency by Domestic Resident Individuals (Hui Zong Han [2003] No.14)
13. Circular of the State Administration of Foreign Exchange concerning the Adjustment of the Instructive Quota for Foreign Exchange Purchase by Domestic Resident Individuals for Their Self-financed Study Abroad (Hui Fa [2004] No.111)
14. Circular of the State Administration of Foreign Exchange on the Related Matters on Standardizing the Control of Foreign Exchange Settlement of Resident Individuals (Hui Fa [2004] No. 18)
15. Circular of the State Administration of Foreign Exchange on the Related Matters on Standardizing the Foreign Exchange Control of Non-resident Individuals (Hui Fa [2004] No. 6)
16. Circular of the State Administration of Foreign Exchange concerning the Adjustment of the Quota of Foreign Exchange Purchase under Current Accounts by Domestic Resident Individuals for Private Purposes and the Simplification of the Related Procedures (Hui Fa [2005] No. 60)