Notice of the State Administration of Foreign Exchange on Relevant
Issues Concerning the Regulation of Foreign Exchange Control over
Non-resident Individuals

HuiFa [2004] No. 6

February 16, 2004

The branches and departments of foreign exchange administration of
the State Administration of Foreign Exchange (SAFE) of the
provinces, autonomous regions, and municipalities directly under the
Central Government, the branches of Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo; and the designated foreign exchange banks:
　　With the increase of activities of China with foreign countries,
the scale of the foreign exchange business of non-resident
individuals has also been increasing. In order to regulate the acts
of non-resident individuals of foreign exchange collection and
payment, foreign exchange settlement, and foreign exchange purchase,
the relevant issues concerning the foreign exchange administration
of non-resident individuals are notified as follows in accordance
with the Regulation of the People's Republic of China on Foreign
Exchange Administration and other relevant provisions on foreign
exchange administration:

1. The term "non-resident individuals" refers to foreign natural
persons (including stateless persons), Hong Kong, Macao, and Taiwan
compatriots, and the Chinese natural persons who hold Chinese
passports but who have already obtained the right of permanent
residence overseas.

2. Non-resident individuals shall follow the present Notice and
other relevant provisions when handling foreign exchange collection
and payment, foreign exchange transfer, foreign exchange settlement,
foreign exchange purchase, and the opening of foreign exchange
account in China.
　　Banks shall follow the present Notice and other relevant
provisions when handling the business of non-resident individuals of
foreign exchange collection and payment, foreign exchange transfer,
foreign exchange settlement, foreign exchange purchase, and the
opening of foreign exchange account.
3. Regulation on the inflow of foreign exchange of non-resident
individuals
1) With respect to the foreign exchange remitted or foreign exchange
cash carried by non-resident individuals into China from overseas,
the non-resident individuals may hold the sums by themselves or
deposit them with the bank, draw foreign exchange cash or make
foreign exchange settlement.
2) Where non-resident individuals open foreign exchange accounts
with the banks within China, they shall abide by the principle of
using true name when opening bank account.
　　Where a non-resident individual opens a foreign exchange
remittance account with foreign exchange capital instruments or bank
notices remitted from overseas, he/she shall open the account with
the original of his/her true identity certificate (including foreign
passport, and the original certificate of overseas permanent
residence, etc., hereinafter referred to as the true identity
certificate).
　　Where a non-resident individual opens the foreign exchange cash
account by taking with him/her foreign exchange cash, and the amount
deposited per day per person is less than 5,000 US dollars or the
equivalent (including 5,000 US dollars or the equivalent,
hereinafter the same), he/she shall open the account on the strength
of his/her true identity certificate; where the amount deposited per
day per person is more than 5,000 US dollars or the equivalent, the
individual shall open the account on the strength of his/her true
identity certificate, the original declaration form for carrying
foreign exchange cash into China of that individual (hereinafter
referred to as the declaration form), or the original bank form for
withdrawal of foreign exchange cash of the original bank. The bank
shall indicate the amount and the time of deposit and the name of
the deposit bank on the originals of the declaration form and the
bank form for withdrawal of foreign exchange cash, and shall return
those originals to the non-resident individual.
　　A non-resident individual shall open a spot exchange account for
the foreign exchange capital remitted from overseas, and shall open
a foreign exchange cash account for the foreign exchange cash
carried into China from overseas.
3) Where a non-resident individual collects foreign exchange
remitted from overseas or draws foreign exchange cash from his/her
foreign exchange account in China, he/she shall handle the
transaction with the bank on the strength of his/her true identity
certificate. Where the amount deposited per day per person is more
than 10,000 US dollars or the equivalent, the individual shall,
apart from providing his/her true identity certificate, faithfully
fill in the Form of Foreign Exchange Income and Expenditure of
Non-resident Individuals (see the attachment, hereinafter the same).
The bank shall carefully check the contents filled in by the
non-resident individual against the materials supplied by that
individual.
4) When handling foreign exchange settlement, a non-resident
individual shall faithfully explain to the bank the usage of the
foreign exchange to be settled, and fill in the Form of Foreign
Exchange Income and Expenditure of Non-resident Individuals. The
bank shall carefully check the contents filled in by the
non-resident individual against the materials supplied by that
individual.
　　Where a non-resident individual settles foreign exchange in
his/her foreign exchange account, and if the amount settled per day
per person is less than 10,000 US dollars or the equivalent, he/she
shall handle the transaction directly at the bank; if the
accumulated settled amount per person per month exceeds 50,000 US
dollars or the equivalent, the individual shall file an application
with the local foreign exchange administration, and handle the
transaction at the bank after the foreign exchange administration
examines and confirms that the usage is in compliance with the
provisions (such usages shall include trade settlement, purchase of
real properties, as well as durable goods such as automobiles for
personal use, etc.). With respect to direct settlement of foreign
exchange remitted from overseas, the individual shall, apart from
handling pursuant to the abovementioned provisions, provide his/her
true identity certificate to the bank or the foreign exchange
administration.
　　Where a non-resident individual settles the foreign exchange cash
he/she holds, and the amount to be settled per person each time is
less than 5,000 US dollars or the equivalent, he/she shall handle
the transaction on the strength of his/her true identity
certificate; where the amount settled per person each time is more
than 5,000 US dollars or the equivalent, he/she shall handle the
transaction on the strength of his/her true identity certificate,
the original declaration form, or the original bank form for
withdrawal of foreign exchange cash of the original bank. The bank
shall indicate on the original declaration form and the original
bank form for withdrawal of foreign exchange cash the amount
settled, the time of settlement, and the bank of settlement, and
shall return those originals to the non-resident individual.
4. Where a non-resident individual makes transfer of foreign
exchange capital in China, he/she shall faithfully explain to the
bank the usage of the capital transferred, and fill in the Form of
Foreign Exchange Income and Expenditure of Non-resident Individuals.
The bank shall, on the basis of careful check of the contents filled
in by the non-resident individual against the materials supplied by
the non-resident individual, handle the capital transfer only
between the foreign exchange accounts of the same nature of that
individual.
5. Regulation of the administration on the outflow of foreign
exchange from non-resident individuals
1) Where a non-resident individual needs to remit to overseas the
deposit in his/her foreign exchange remittance account and foreign
exchange cash account, he/she shall handle the transaction directly
at the bank, and fill in the Form of Foreign Exchange Income and
Expenditure of Non-resident Individuals. The bank shall carefully
check the contents filled in by the non-resident individual against
the materials supplied by that individual.
2) Where a non-resident individual needs to remit to overseas the
foreign exchange cash he/she holds, and the amount remitted is less
than 5,000 US dollars or the equivalent, he/she shall handle the
transaction at the bank on the strength of his/her true identity
certificate; where the amount remitted is more than 5,000 US dollars
or the equivalent, he/she shall handle the transaction on the
strength of his/her true identity certificate and the declaration
form. The bank shall indicate on the original declaration form of
the non-resident individual the amount remitted out, the date of
remittance, and the name of the remitting bank, and shall return the
original to the non-resident individual.
3) Where a non-resident individual purchases foreign exchange for
remitting out his/her legitimate income in RMB, or converts into
foreign exchange the RMB remained upon his/her exit of China, he/she
may follow the existing provisions on the transaction.
6. A non-resident individual may entrust others to handle the
abovementioned transactions for him/her within China. Where any
other person is entrusted, the written certificate of entrustment,
the original identity certificate of the person entrusted and the
photocopy thereof, and the various certifications as prescribed in
the above provisions shall be provided.
7. When handling foreign exchange business of non-resident
individuals, the bank shall distinguish such business from that of
resident individuals, and shall make notations for distinction.
8. After finishing the foreign exchange business of non-resident
individuals, the foreign exchange administration or bank shall keep
for five years for reference the photocopies of the identity
certificates of the non-resident individual and the person entrusted
thereby, the photocopy of the bank form for foreign currency
withdrawal, and the Form of Foreign Exchange Income and Expenditure
of Non-resident Individuals, as well as the photocopies of other
certifications.
9. Where non-resident individuals carry foreign exchange cash out of
China, the relevant provisions in the Interim Measures for the
Administration of Carrying of Foreign Exchange Cash into and out of
China shall be strictly abided by.
10. The foreign exchange income and expenditure occurring under the
capital account for trading of B shares etc of non-resident
individuals shall be governed by the existing relevant provisions of
the SAFE.
11. Where collections and payments involving foreign elements are
transacted through banks within China, international balance
statistics reports shall be made in accordance with the relevant
provisions of the Measures for International Balance Statistics
Report, and the Notice of the State Administration of Foreign
Exchange on the Relevant Issues concerning the Strengthening of
Statistics Monitoring of B Shares and other Cross-border Capital
Flows (No.72 [2001] of SAFE).
12. When handling the foreign exchange business of non-resident
individuals, the banks shall report the relevant transaction
information in accordance with the relevant provisions in the
Measures for the Administration of Report of Large-amount and
Doubtful Transactions of Foreign Exchange Capital by Financial
Institutions.
13. The banks shall handle the foreign exchange business of
non-resident individuals in accordance with the present Notice, and
subject themselves to the supervision and inspection of foreign
exchange administrations.
14. The local foreign exchange administrations shall, in accordance
with the provisions hereof and in conjunction with the relevant
financial regulatory departments, strengthen the supervision and
inspection of the foreign exchange business of non-resident
individuals. The foreign exchange administrations may punish any
party that violates the provisions hereof in accordance with the
Regulation of the People''s Republic of China on Foreign Exchange
Administration and other relevant provisions.
15. The present Notice shall come into force as of March 1st, 2004.
Where any previous relevant provisions conflict with the provisions
hereof, the latter shall prevail.
　　The branches of SAFE shall, after receiving this Notice, transmit
it to the sub-branches, foreign-funded banks, and urban commercial
banks under their respective jurisdictions as soon as possible. The
Chinese-funded designated foreign exchange banks shall transmit it
to their branches as soon as possible. In case of any problem
encountered in the implementation, please feedback it to SAFE in
good time.
　　Attachment: Form of Foreign Exchange Income and Expenditure of
Non-resident Individuals (omitted)