Circular of the State Administration of Foreign Exchange on Expanding the Pilot Program for High-level Opening-up of Cross-border Investment.
Shanghai Branch, Jiangsu Province, Guangdong Province, Beijing Municipality, Zhejiang Province, Hainan Province, Shenzhen City and Ningbo Branch of the State Administration of Foreign Exchange
In order to thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the first financial work conference, further promote the facilitation of cross-border investment, and accelerate the construction of a new development pattern, the State Administration of Foreign Exchange has decided to expand the implementation of the pilot policy of high-level opening-up for cross-border investment in Shanghai, Jiangsu Province, Guangdong Province (including Shenzhen), Beijing, Zhejiang Province (including Ningbo City), and Hainan Province (hereinafter referred to as the pilot areas), so as to facilitate more business entities to handle cross-border investment business in compliance with regulations, and promote high-quality development with high-level opening-up. The relevant matters are hereby notified as follows:
1. Further facilitate the receipt and payment of foreign exchange funds under the current account. Qualified prudent compliance banks in the pilot areas (hereinafter referred to as prudent compliance banks) may handle foreign exchange receipts and payments under the current account for the pilot high-quality enterprises in accordance with the principle of "know your customers, understand your business, and conduct due diligence".For a single foreign exchange expenditure of more than US$50,000 equivalent to services ** and other items, the "Tax Filing Form for External Payment of Services ** and Other Items" can be verified afterwards.
2. Support banks to optimize new types of international settlements. Encourage prudent and compliant banks in the pilot areas to innovate financial services, and independently handle the new type of international foreign exchange receipts and payments that are true and compliant for the pilot high-quality enterprises.
3. Expand the scope of net settlement of ** net income and expenditure. When a high-quality enterprise in the pilot area conducts foreign exchange business under a specific current account with the same overseas counterparty, the prudent and compliant bank in the pilot area can handle netting for the high-quality enterprise under the condition of ensuring that the risk is controllable.
Fourth, the goods ** overdue and other special foreign exchange refunds are exempt from registration. Prudent and compliant banks in the pilot areas can directly handle the special foreign exchange return business for the pilot high-quality enterprises, and the enterprises do not need to register with the foreign exchange bureau in advance.
5. Optimize the management of the business of substitution or apportionment under the service **. The disbursement or apportionment business under the service ** of more than 12 months, as well as the disbursement or apportionment business under the service ** that occurs between the high-quality enterprises in the pilot area and the overseas institutions with which they have an affiliated relationship, shall be handled by the prudent and compliant banks in the pilot area after reviewing the authenticity and reasonableness.
6. Foreign-invested enterprises are exempt from registration for domestic reinvestment. When a foreign-invested enterprise carries out domestic reinvestment business, if the invested enterprise or equity transferor is an enterprise registered within the jurisdiction of the pilot area, it is not required to go through the registration procedures for receiving domestic reinvestment.
7. The foreign debt quota shared by the parent and subsidiary of the financial leaser. Eligible financial leasing companies in the pilot areas are allowed to share the external debt quota with their special purpose vehicles (SPVs).
8. The foreign exchange registration of part of the capital account shall be handled directly by the bank. Eligible non-financial enterprises in the pilot areas that borrow foreign debts and go public abroad can directly go through the relevant registration formalities with the bank.
The pilot regional bureaus shall formulate detailed business implementation rules in accordance with this Circular, strengthen the supervision and verification and inspection of the above-mentioned businesses during and after the event, and guide banks and enterprises to conduct business in compliance. The pilot regional bureau should closely track the development of various pilot businesses, monitor and analyze the characteristics and problems of abnormal cross-border capital flows in real time, conduct risk assessments on a regular or irregular basis, establish risk response plans and response mechanisms, ensure the smooth and orderly development of pilot policies, severely crack down on violations of laws and regulations, effectively prevent and resolve the risks of abnormal cross-border capital flows, and maintain the order of the foreign exchange market.
This notice shall be implemented as of the date of promulgation. If you encounter any problems during the implementation, please give feedback to the State Administration of Foreign Exchange in a timely manner.
Notice is hereby given. Safe.
December 4, 2023.