Implementation Rules for the Measures for the Administration of
Verification and Writing-Off of Export Proceeds in Foreign Exchange

the State Administration of Foreign Exchange　

HuiFa [2003] No.107    September 8, 2003

Chapter 1 General Provisions

Article 1 The present Implementation Rules are hereby enacted for the purpose of earnestly implementing the Measures for the Administration of Verification and Writing-Off of Export Proceeds in Foreign Exchange (HuiFa [2003] No.91) printed and distributed by the State Administration of Foreign Exchange (SAFE) and to strictly
regulating the administration of verification and writing-off of export proceeds in foreign exchange (hereinafter referred to as the verification).

Article 2 SAFE and the branches and sub-branches thereof  (hereinafter referred to as foreign exchange administrations) are the departments in charge of the administration of the verification.

Article 3 The verification shall apply the principle of locality jurisdiction, namely, the exporter shall make the record
registration, apply for the verification forms, and make the verification with the foreign exchange administration of the place where it is located.

Article 4 The foreign exchange administrations shall apply classified administration of exporters on the basis of the annual assessment of their completion of verification, their reporting rates of international balance, their export and trade methods, and their methods of collection of export proceeds in foreign exchange (hereinafter referred to as collection of proceeds), as well as their compliance with the policies of the state on foreign exchange administration and in light of the opinions of the relevant departments in charge of the administration of the exporters, and shall respectively apply the administration methods of automatic verification, group verification, and one-by-one verification.

Article 5 The foreign exchange administrations shall apply the administration system of verification officers. The obtaining of verification forms and the making of verification of the exporter shall be under the charge of the verification officer of that
exporter. The measures for the administration of verification
officers shall be formulated by the branches of SAFE in light of the
actualities of their respective areas, and be carried out after
being reported to SAFE for record.
Chapter 2 Record Registration of Exporters
Article 6 The exporter shall, after acquiring the management right
of export business, subscribe to "China Electronic Port" with the
customs office, and make the electronic certification of the
enterprise legal person IC card of "China Electronic Port" and the
enterprise operator IC card of "China Electronic Port" with the
relevant administrations.
Article 7 The exporter shall submit the following documents to the
foreign exchange administration when making the record registration
of verification:
(1) The letter of introduction and written application of the
exporter;
(2) The original and copy of the Certificate of Qualification of
Import and Export Enterprises of the People''s Republic of China, or
the Certificate of Approval for Foreign-Funded Enterprises of the
People''s Republic of China, or the Certificate of Approval for
Enterprises Funded by Investors from Hong Kong, Macao, or by
Overseas Chinese Investors of the People''s Republic of China;
(3) The Business license of Enterprise Legal Person (counterpart) or
the Business License of Enterprise (counterpart) and the copy
thereof;
(4) The original and copy of the Certificate of Organization Code of
the People''s Republic of China;
(5) The original and copy of the certificate of customs
registration; and
(6) Other documents as required by the foreign exchange
administration.
　　The foreign exchange administration shall, after examining the
aforesaid documents and ensuring there isn''t any mistake, make the
registration for the exporter and establish the electronic archive
information of the exporter.
Article 8 The exporter shall, if its electronic archive information
registered with the foreign exchange administration is altered, by
taking the notices of alteration issued by the relevant
administrations, make the alteration registration with the foreign
exchange administration within 1 month after making the alteration
registration with the administrations of industry and commerce, and
customs, and the foreign exchange administration shall alter the
purview of the IC card of that exporter at "China Electronic Port".
Article 9 Where the exporter terminates its business or is
disqualified from foreign trade business, it shall, by taking the
relevant documents issued by the relevant administrations, make the
cancellation registration with the foreign exchange administration
within 1 month, and the foreign exchange administration shall cancel
the purview of the IC card of that exporter at "China Electronic
Port".
Chapter 3 Administration of Verification Forms
Article 10 The verification forms shall be issued level by level by
the designated personnel. SAFE shall issue the verification forms to
its branches, which shall issue the verification forms to the
central sub-branches under their respective administration, and the
aforesaid central sub-branches shall issue the verification forms to
the sub-branches under their respective administration. The foreign
exchange administrations shall issue the verification forms to the
exporters under their respective administration.
Article 11 The exporter shall, before obtaining the verification
forms with the foreign exchange administration, file an application
for the verification forms with the foreign exchange administration
through the "System of Collection of Export Proceeds in Foreign
Exchange of China Electronic Port" (hereinafter referred to as the
System of Collection of Proceeds) according to the actual needs of
its business, and the verification officer of that exporter shall,
by taking the operator IC card of "China Electronic Port" of his own
and other prescribed certificates, obtain the verification forms
with the foreign exchange administration.
Article 12 A foreign exchange administration shall issue the
verification forms to the exporter on the basis of the number of
forms applied for by that exporter and the verification assessment
grade, and shall transmit the electronic record data of the
verification forms to the data center of "China Electronic Port".
Article 13 A foreign exchange administration may adjust the number
of forms to be issued according to the verification assessment grade
and the daily business operations of the exporter. If the exporter
is assessed as an "honorable enterprise of collection of proceeds"
or a "qualified enterprise of collection of proceeds", the
verification forms shall be issued to it according to its needs,
whereas the issuance of verification forms shall be restricted if
that exporter is assessed as a "risky enterprise of collection of
proceeds" or a "highly risky enterprise of collection of proceeds",
or if it has committed any other serious violation of the provisions
on foreign exchange administration.
Article 14 The exporter shall give the signature when obtaining the
verification forms. Blank verification forms shall be continuously
valid.
Article 15 The exporter shall, before formally using the
verification forms, affix on them the bar seal of entity name and
organization code and affix its official seal on between the pages
of the form.
Article 16 Where all the goods stated on a verification form are
shut out, or the verification form is filled in erroneously, the
exporter shall write off that form with the foreign exchange
administration within 3 months.
Article 17 Where the exporter terminates its business, or is
disqualified from foreign trade, or is merged or split, it shall
make the verification according to the following provisions:
(1) Where the exporter no longer runs the export business as a
result of terminating its business or being disqualified from
foreign trade, it shall return the unused verification forms to the
foreign exchange administration for writing-off within 1 month. The
foreign exchange administration shall stop issuing verification
forms to that exporter and shall prohibit the use of those forms
that have been issued, but remained unused and have not been
returned to the foreign exchange administration.
(2) Where the exporter no longer runs the export business as a
result of merger or splitting, it shall return the unused
verification forms to the foreign exchange administration for
writing-off within 1 month. The foreign exchange administration
shall prohibit the use of those forms that have been issued to that
exporter, but remained unused and have not been returned to the
foreign exchange administration.
(3) Where the exporter continues to run the export business as a
result of merger or splitting, it shall return the unused
verification forms to the foreign exchange administration for
writing-off within 1 month and shall continue to assume the
verification of the former exporter according to the agreement on
merger and splitting.
Article 18 Where the exporter commits any serious violation of the
provisions of foreign exchange administration or is involved in any
other special circumstances, the foreign exchange administration may
prohibit the verification forms that have been obtained but unused
by that exporter.
Chapter 4 Export Customs Declaration
Article 19 The exporter shall, before making the customs
declaration, put on record the verification forms with the customs
office of the place where the declaration is to be made through the
"System of Collection of Proceeds".
Article 20 The exporter shall fill in the verification forms
accurately and completely, the contents of which shall be consistent
with the relevant contents stated on the certification pages of the
customs declaration forms of collection of export proceeds
(hereinafter referred to as declaration forms).
Article 21 The exporter shall, when making the customs declaration,
faithfully report to the customs office the transaction method, and
on the basis of that method, report the transaction price, amount,
freight and insurance premium, as well as the number of the
processing trade contract, and shall ensure the truthfulness and
completeness of the data declared.
Article 22 Where the regulation requires the use of verification
forms for export customs declaration, the customs office shall
examine the verification forms and other declaration documents
submitted by the exporter, and after checking the electronic records
of the verification forms and ensuring there is no mistake, process
the clearance formalities for the exporter.
Article 23 The customs office shall, when processing clearance
formalities for the exporter, affix the "test-over seal" in the
column of "customs verification and clearance" on the verification
form, and write off the electronic record data of the verification
form with the remark of "used". It shall, after the clearance, issue
the declaration forms marked with the numbers of the verification
forms to the exporter if the exporter so applies, and transmit the
writing-off of the electronic records of the verification forms, and
the electronic records of the customs declaration forms, etc., to
SAFE through the data center of "China Electronic Port".
Article 24 The customs office shall, when issuing the customs
declaration form, ensure that the numbers of the verification forms
correspond to those of the declaration forms one by one.
Article 25 The exporter shall, after the customs declaration and
export, tender the verification forms that have been used in the
customs declaration to the foreign exchange administration through
the System of Collection of Proceeds.
Chapter 5 Collection of Proceeds
Article 26 The exporter shall, after exporting the goods, collect
the price in good time and full amount pursuant to the time and
method of collection stipulated in the export contract, and the
total transaction price stated on the declaration form. In the case
of spot collection, the export proceeds shall be collected within
180 days after the clearance of the goods, and in the case of
forward collection, the proceeds shall be collected within the time
limit as recorded for forward.
Article 27 With respect to the settlement or entry of account of the
following foreign exchange, the bank may issue to the exporter the
special page of verification form (hereinafter referred to as the
special page):
(1) With regard to the payments collected directly from overseas or
domestic special economic zones, the bank shall issue the special
page after finishing the foreign exchange settlement or entering the
amount into the foreign exchange account for current account
transactions (hereinafter referred to as "account entry") of the
exporter.
(2) With regard to the damages recovered from export cargo insurance
or export credit insurance, the bank shall issue the special page
after finishing the foreign exchange settlement or account entry on
the strength of the original verification forms and the agreement on
settlement of claims, and shall indicate on the special page
"damages from export cargo insurance" or "damages from export credit
insurance".
(3) With regard to the foreign exchange capital obtained through
forfeiting business, the bank shall issue the special page after
finishing the foreign exchange settlement or account entry for the
exporter pursuant to the provisions, and shall indicate on the
special page "forfeiting business".
(4) Where the bank hasn''t, under factoring, provided financing
service or such service with recourse for the exporter, the bank
shall, after the exporter collects the payments from overseas,
process the foreign exchange settlement or account entry according
to the provisions and issue the special page to that exporter.
　　Where the bank has provided the exporter with financing service
without recourse, the bank may, after providing the exporter with
the fund and finishing the foreign exchange settlement or account
entry for that exporter according to the provisions, issue the
special page to that exporter on the basis of the amount financed,
affix on the special page a special number of verification, and in
the meanwhile, indicate on the special page "factoring financing
business". The bank shall, after collecting the payments from
overseas and deducting the amount financed and the interest thereon,
issue the special page in respect of the balance, and shall indicate
on the special page "factoring balance" and the relevant factoring
expenses and interest accruing from the financing, as well as the
number of the declaration form of foreign-related income and the
original special number of verification.
(5) With regard to the payments collected from the off-shore account
opened by the overseas importer in a bank providing off-shore
banking services within China, the bank shall issue the special page
after finishing the foreign exchange settlement or account entry
according to the provisions, and shall indicate on the special page
"transferred from domestic off-shore account".
(6) With regard to the foreign exchange collected by the transferor
in deep processing transit business, the bank shall issue the
special page after finishing the foreign exchange settlement or
account entry for the transferor, and shall indicate on the special
page the words of "collected proceeds from deep processing transit
business" and the name of the transferee.
(7) With regard to the collection of proceeds under export buyer''s
credit, the bank shall issue the special page after finishing the
foreign exchange settlement or account entry for the exporter on the
basis of the export contract, the order of the overseas borrower to
pay, the letter of credit, or other payment orders, or on the basis
of the postscripts or summary of entrusted payment of the domestic
lending bank, and shall indicate on the special page "domestic
transfer under export buyer''s credit".
(8) With regard to the export proceeds settled in foreign currency
cash, the exporter shall make the foreign exchange settlement with
the bank, and may not retain or deposit such proceeds with the bank.
Where the amount of foreign currency cash reaches the limit for
entry report, the bank shall issue the special page after making
foreign exchange settlement for the exporter on the strength of the
export contract, vouchers, verification forms, and the original of
the declaration form of foreign currency carried into China signed
by the customs office, and after indicating on the declaration form
the amount settled and the date, and affixing a mark, shall indicate
on the special page "settlement of foreign currency cash". Where the
amount of foreign currency cash carried has not reached the limit
for entry report, the bank shall settle the foreign currency cash on
the strength of the export contract, invoices, verification forms,
and the application for foreign exchange settlement, and shall
indicate on the special page "settlement of foreign currency cash".
The export proceeds collected under border trade and planning
chartering shall be excluded.
(9) The bank may not issue the special page when making foreign
exchange settlement under export bill negotiation or making account
entry for discount of time drafts or for packing loans under export
letters of credit, and shall issue the special page only after
collecting the export payments and finishing the relevant
formalities.
(10) With regard to the export payments collected directly from
overseas or domestic special economic zones, if it is necessary for
a domestic bank to exchange the foreign currency into another, the
paying bank shall issue the special page when proceeding the
exchange from the original currency within China. The exchanging
bank shall indicate the words of "exchanged foreign currency" in the
transaction postscript.
(11) Where the special page may be issued in other circumstances as
provided for by the foreign exchange administrations, the relevant
provisions shall be observed.
Article 28 With regard to the settlement or account entry of the
following kinds of foreign exchange, the bank may not issue the
special page to the exporter:
(1) Export proceeds other than those provided for in Article 27 and
the proceeds that cannot be determined as export proceeds in foreign
exchange at the present time;
(2) Foreign exchange transferred from the foreign exchange accounts
of other entities within China or from the foreign exchange accounts
for current account and capital account transactions of a same
entity, other than those provided for in Article 27;
(3) Other foreign exchange for which no special page shall be issued
as provided for by the foreign exchange administrations.
Article 29 The bank shall, when issuing the special page, keep the
contents of the page the same as those of the record page kept by
the bank and the book-keeping page of the recipient.
A special page shall contain the following elements:
1. Name of the handling bank;
2. Date of foreign exchange settlement or payment collection;
3. Name and account number of the recipient entity;
4. Amount actually collected and the currency;
5. Detailed list of various incidental expenses (if there is any),
and the amount and currency;
6. Net amount settled or entered into account and the currency;
7. Number of the verification form;
8. Number of the declaration form of foreign-related income or the
special number of verification;
9. Words of "special page of verification and writing-off of export
proceeds in foreign exchange";
10. Official business seal of the bank and the signature or seal of
the handling person; and
11. Other contents that should be indicated as required by the
foreign exchange administrations.
Article 30 The bank shall in advance put on record with the local
foreign exchange administration the format and model of the special
page. Where there is any alteration to the format or model, the bank
shall change the record with the foreign exchange administration
before using the altered format or model.
Article 31 Where the export proceeds of the exporter are not subject
to the international balance report and the special page can be
issued thereto pursuant to the provisions, the bank shall affix the
special number of verification on the special page, and shall
indicate the sources of the capital collected. The special number of
verification has 22 figures altogether, the first 6 figures are the
region identification number; the next 6 figures are the bank
identification number and sequential number; the still next 6
figures are the date of collection of proceeds; and the last 4
figures are the business serial number of the bank on the day of
transaction.
Article 32 The special page issued by the bank must contain the
number of the report of foreign-related income or the special number
of verification, otherwise, the foreign exchange administration may
not handle the verification for the exporter on the basis of that
special page.
Article 33 With respect to the collection of lump-sum payments in
foreign exchange from several export transactions, the bank shall
require the exporter to provide the numbers of the verification
forms to which that sum corresponds to, and shall indicate those
numbers on the special page. Only one special page may be issued for
the collection of lump-sum proceeds, and the issuing of separate
pages is not allowed. Where the lump-sum proceeds contain advanced
payments and remainder of payments, the bank shall fill in the
number of the verification form to which the remainder corresponds
and shall indicate on the special page "advanced payments
contained". And the exporter shall, after actually exporting the
goods, make up the number of the verification form with the bank,
which shall affix the business official seal and the signature of
the handling person. With respect to a single advanced payment, the
bank shall issue the special page to the exporter after finishing
the foreign exchange settlement or account entry pursuant to the
provisions and ensuring that the exporter has exported the goods
(providing the number of verification form).
Article 34 Where the exporter needs to adjust its account or set off
wrong accounts after the bank has issued the special page after the
foreign exchange settlement and account entry, the bank shall
withdraw and write off the special page that has been issued.
Article 35 In the case of export by agency, if both the agent and
the principal have foreign exchange accounts for current account
transactions and if the original foreign currency needs to be
transferred to the principal, the bank shall enter all the foreign
currency collected into the foreign exchange account for current
account transactions of the agent, and issue the special page to the
agent, which shall then transfer the foreign currency pursuant to
the relevant provisions. If the agent has no foreign exchange
account for current account transactions, the bank shall settle the
foreign exchange collected and issue the special page to the agent,
which shall transfer RMB to the principal.
Chapter 6 Verification Report of the Exporter
Article 36 The exporter shall, after exporting the goods and within
30 days from the anticipated date of collection of payments, make
verification reports to the foreign exchange administration in
respect of all the payments or each payment on the strength of the
prescribed verification certifications. If the exporter applies
automatic verification, it need not make the verification report
with the foreign exchange administration, except under special
circumstances.
　　The foreign exchange administration may, according to the volume
of verification transactions of the region and the specific
circumstances of the exporter, apply the system of verification
report form or the electronic administration of verification
reports.
Article 37 Where the anticipated date of collection of payment falls
on the 180th day or thereafter after the date of customs
declaration, the exporter shall, within 60 days after the customs
declaration of the goods, make the record of forward collection of
proceeds with the foreign exchange administration on the strength of
the written application for record of forward collection of
proceeds, export contract or agreement for forward collection, the
verification forms, declaration forms, and other relevant documents.
Article 38 The exporter shall, when making the verification report,
provide the verification certificates pursuant to the following
provisions:
(1) In the case of export under "general trade", "non-corresponding
imported material", "authorized trade of military equipment",
"unauthorized trade of military equipment", or "trade to Taiwan",
the verification forms, declaration forms and special pages shall be
provided.
(2) In the case of export under "barter trade", the barter contract,
verification forms and declaration forms shall be provided. For full
barter, the import declaration forms of the goods bartered in shall
also be provided; in the case of partial barter, the special pages
and the import declaration forms of the goods bartered in shall also
be provided.
(3) In the case of export under "processing of materials supplied by
clients", or "deep processing of materials supplied by clients", the
verification forms, declaration forms and special pages shall be
provided. With respect to the verification report for the proceeds
from the first export transaction under the same contract, the
processing contract approved by the commerce administration shall
also be provided. And in the case of alteration of the contract or
termination of the execution, the relevant certificates shall also
be provided.
(4) In the case of export under "compensation trade" and where the
compensation shall be made in kind as stipulated by the contract,
the compensation trade contract, verification forms, declaration
forms, and the corresponding import declaration forms shall be
provided. And where the value stated on the declaration forms
exceeds that on the import declaration forms, the special pages
shall also be provided.
(5) In the case of export under "corresponding imported materials",
"deep processing of imported materials", or "processing of imported
materials by three types of foreign-funded enterprises", if the
proceeds are collected in full amount, the verification forms,
customs declaration forms and special pages shall be provided. Where
the imported materials are set off, the exporter need to make the
registration of set-off of imported materials with the foreign
exchange administration, and provide the verification forms, customs
declaration forms, special pages in respect of the balance, and the
corresponding import declaration forms.
　　With respect to the verification report for the proceeds from the
first export transaction under the same contract, the processing
contract ratified by the commerce administration shall also be
provided. And in the case of alteration of the contract or
termination of the execution, the relevant certificates shall also
be provided.
　　Where the exporter makes the export under "deep processing of
imported materials" and the transferee makes the import under "deep
processing of imported materials", the processing contract ratified
by the commerce administration, the verification forms, declaration
forms and special pages shall be provided. Where the payments are
settled in RMB, the certificates of account entry in RMB and the
import declaration forms shall be provided.
(6) In the case of export under "samples and advertisement products
A", the verification forms and declaration forms shall be provided.
Where the collection of proceeds are verified and written off, the
special pages shall be provided. And with respect to a single
transaction in which the proceeds not collected exceed 500 US
dollars of the equivalent, the contract or agreement concluded by
the parties shall be provided.
(7) In the case of export under "external contracting", the
ratification letter of the commerce administration for foreign
contracting, the contract or agreement on the contracted project,
the verification forms, declaration forms and special pages shall be
provided.
(8) In the case of export under "returned cargo", the verification
forms, declaration forms and import customs declaration forms shall
be provided. The special pages shall also be provided with respect
to the returned goods for which payments in foreign exchange have
already been made.
(9) In the case of export under "re-export of imported materials" or
"re-export of leftover materials out of imported materials", if the
collection of proceeds is verified and written-off, the verification
forms, declaration forms and special pages shall be provided. If the
proceeds are not collected, the verification forms, declaration
forms and import declaration forms indicated with the trade methods
of "corresponding imported materials" or "deep processing of
imported materials" shall be provided.
(10) In the case of export under "replacement of imported
materials", if the proceeds are collected, the verification forms,
declaration forms and special pages shall be provided. And if the
proceeds are not collected, the verification forms, declaration
forms and import declaration forms for processing of imported
materials shall be provided.
(11) In the case of export under "petty trade to Taiwan", where
payments are settled in spot foreign exchange, the verification
forms, declaration forms and special pages shall be provided. Where
the payments are settled in foreign currency cash, the verification
forms, declaration forms, foreign currency cash settlement vouchers
and purchase invoices shall be provided. Where the payments are
settled in RMB, the verification forms, declaration forms and
certificate of account entry of RMB shall be provided.
(12) In the case of export under "bonded factory" or "outward
processing", if the proceeds are collected, the verification forms,
declaration forms and special pages shall be provided. Where the
goods are transported back after processing and the proceeds are not
collected, the verification forms, declaration forms and
corresponding import declaration forms shall be provided.
(13) In the case of export under "leasing trade", and "less-than
one-year leasing", the leasing contract, verification forms and
customs declaration forms shall be provided. Where the foreign party
is the leaseholder, the special pages shall also be provided. If the
rent collected is insufficient in the verification, the import
declaration forms shall also be provided. Where the Chinese party is
the leaseholder, the printed copy (affixed with the business seal of
the bank) of the electronic records of the import declaration forms
shall also be provided.
(14) In the case of export under "consignment trade", the
verification forms, declaration forms and special pages shall be
provided. Where the proceeds can''t be collected in full amount, the
confirmation letter of "consignment trade" shall also be provided.
(15) In the case of export under "petty border trade", where the
payments are settled in spot foreign exchange, the verification
forms, declaration forms and special pages shall be provided. Where
the payments are settled in foreign currency cash, the verification
forms, declaration forms, foreign currency cash settlement vouchers
and purchase invoices shall be provided. Where the payments are
settled in RMB, the verification forms, declaration forms and
certificates of account entry of RMB shall be provided (with respect
to the regions that have opened RMB accounts for RMB border trade
with overseas trade institutions, the certificates of domestic
transfer of RMB capital may be provided). Where the payments are
settled in the currency of an adjourning country, the verification
forms, declaration forms and the declaration form for carrying the
currency of an adjourning country or the certificate of inward
remittance verified by the customs office shall be provided. Where
the payments are settled through barter, the verification forms,
declaration forms and import declaration forms shall be provided.
Where the payments in foreign exchange are collected through
remittance by any individual domestic resident, the declaration
forms, verification forms and the special foreign exchange
settlement vouchers for verification shall be provided.
(16) In the case of export under plane chartering in the form of
"tourist commodities trade", and "general trade", where the payments
are settled in spot foreign exchange, the verification forms,
declaration forms and special pages shall be provided. Where the
payments are settled in foreign currency cash or through individual
remittance, the verification forms, declaration forms, purchase
invoices and foreign currency cash settlement vouchers or foreign
exchange settlement vouchers for inward individual remittance shall
be provided. Where the payments are settled in RMB, the verification
forms, declaration forms and certificate of account entry of RMB
shall be provided.
(17) In the case of export by any other method subject to customs
control, the relevant certificates shall be provided as provided for
by the foreign exchange administrations and the relevant
departments.
Article 39 Where the collecting entity and the entity assuming the
verification are not the same as a result of exclusive sale of
commodity, alteration of contract terms, or approved relationship
between parent and branch (subsidiary) companies, the collecting
entity may file an application with the foreign exchange
administration for "transferring the collection of overseas
proceeds", thus to facilitate the exporter to make the verification.
And the exporter shall, when making the verification report, provide
the application for transfer of collection of overseas proceeds, the
relevant agreements, export contract, verification forms, customs
declaration forms, special pages, and other relevant documents.
Article 40 When making the verification report, the exporter shall,
if the foreign exchange administration it belongs to applies the
system of the verification report form, provide the Verification
Report Form in addition to the verification certificates provided
for in Articles 38 and 39. And if the foreign exchange
administration it belongs to applies the electronic administration
of verification reports, it shall also provide the electronic data
of the verification certificates in addition to those provided for
in Articles 38 and 39.
Article 41 After the exporter exports the goods, if a single
collection of proceeds or the value of a single import transaction
exceeds the declared amount by no more than 2000 US dollars or the
equivalent (2000 US dollars included), or if a single collection of
proceeds or the value of a single import transaction is less than
the declared amount by no more than 500 US dollars or the equivalent
(500 US dollars included), the exporter may make the verification
report pursuant to Articles 38 and 39. If a single collection of
proceeds or the value of a single import transaction exceeds the
declared amount by more than 2000 US dollars or the equivalent, or
if a single collection of proceeds or the value of a single import
transaction is less than the declared amount by more than 500 US
dollars or the equivalent, the exporter shall make the report of
margin verification. Where group verification is applied, the margin
between the value of the exported goods and the proceeds collected
or the value of the imported goods shall be calculated on the basis
of each verification form.
Article 42 When making the margin verification report, the exporter
shall, in addition to providing the verification certificates as
provided for by Articles 38 and 39, provide an explanation letter in
respect of the reasons for the arising of margin signed by the legal
representative and affixed with the official seal of the exporter,
and shall also provide the following certifications:
(1) Where the margin arises as a result of the change of foreign
market situations, the exporter shall provide the certificate issued
by the relevant chamber of commerce or the market quote of the
relevant exchange.
(2) Where the margin arises because of the quality of the goods, the
exporter shall provide the relevant letters of the importer and the
certificate issued by the commodity inspection agency of the
importer''s country. Where the said inspection certificate cannot be
provided due to objective reasons, the inspection report of the
importer, the relevant certificates and the written warranty of the
exporter shall be provided.
(3) Where the margin arises due to the deterioration, perishing,
non-natural death, or wearing-out of animals and perishable
products, the exporter shall provide the relevant letters of the
importer and the certificate issued by the commodity inspection
agency of the importer''s country. Where the said inspection
certificate can''t be provided due to objective reasons, the
relevant letters of the importer, the relevant certificates and the
written warranty of the exporter shall be provided.
(4) Where the margin arises due to force majeure causes, such as
natural disasters and wars, etc., the exporter shall provide the
reports of newspapers or other news media or the certificate issued
by the department of commerce of the Chinese embassy or consulate in
the importer''s country.
(5) Where the margin arises due to the bankruptcy, shutting down or
dissolution of the importer, the exporter shall provide the reports
of newspapers or other news media or the certificate issued by the
department of commerce of the Chinese embassy or consulate in the
importer''s country.
(6) Where the margin arises due to the fluctuation of exchange rate
of the currency of the importer''s country, the exporter shall
provide the documents relating to the exchange rate published on
newspapers or other news media or promulgated by the foreign
exchange administration.
(7) Where the margin arises due to excessive or short shipment, the
exporter shall provide the commercial instruments, such as the bills
of lading or other formal shipping instruments.
(8) Where the margin arises due to other reasons, the exporter shall
provide the valid certificates recognized by the foreign exchange
administrations.
Chapter 7 Verification and Writing-Off of Export Proceeds in Foreign
Exchange
Article 43 A foreign exchange administration shall, after receiving
the verification certificates (including the electronic data)
reported by the exporter, verify the authenticity of the data
reported by the exporter through the "System of Reports of
Verification and Writing-off of Collection of Export Proceeds in
Foreign Exchange" (hereinafter referred to as the System of
Verification Reports) and other relevant systems. If the
verification certificates submitted are inconsistent with the data
transmitted by the customs office or bank, or the documents
submitted for examination are incomplete, such certificates or
documents shall be returned to the exporter for modification. The
customs office and bank shall, after receiving the application of
the exporter for modification, finish the check and modification of
the verification certificates or electronic data within 5 workdays.
Article 44 The foreign exchange administrations may, according to
the transaction volume of their respective regions and the specific
situations of the exporters, apply different methods of verification
respectively pursuant to the following provisions:
(1) Transaction-by-transaction verification: that is, the exporter
makes the verification report on the basis of each verification
certificate, and the foreign exchange administration makes the
verification for the exporter for each corresponding transaction.
This method is suitable for the enterprises with high risks in
collecting proceeds, as well as for the margin verification and the
proceeds that can''t be collected in full amount.
(2) Group verification: that is, the exporter makes a consolidated
verification report and the foreign exchange administration makes
the verification for the exporter on a group basis. This method is
suitable for the verification of the collection of proceeds in full
amount of the exporters other than those with high risks in
collecting proceeds, as well as for the collection of export
proceeds that need to be verified and written off according to the
contract under processing of materials supplied by the client or
under set-off in processing of imported materials. The foreign
exchange administration shall, when examining the group verification
data, stick to the principle of correspondence of the total quantity
stated on the verification forms and those on the special pages.
(3) Automatic verification: that is, without the need for the
exporter to report, the foreign exchange administration makes the
total-quantity verification on the basis of the information of the
verification forms and customs declaration collected through the
System of Collection of Proceeds, and through the System of
International Balance Statistics Report. This method is suitable for
the honorable enterprises of collection of proceeds that have high
rates of international balance report and that comply with other
conditions prescribed by the foreign exchange administration, as
well as for the collection of export proceeds in full amount under
general trade and other export trade.
Article 45 A foreign exchange administration shall make the
verification for the exporter pursuant to the following provisions:
(1) In the case of export under "general trade", "non-corresponding
imported materials", "authorized trade of military equipment",
"unauthorized trade of military equipment, "consignment trade",
"trade to Taiwan", or "external contracting", the verification shall
be made on the basis of the full amount of the total price stated on
the customs declaration forms.
(2) In the case of export under "processing of materials supplied by
the client", or "deep processing of materials supplied by the
client", the verification shall be made on the basis of the fees to
be collected as stipulated by the processing contract.
(3) In the case of export under "processing of imported materials",
"deep processing of imported materials", or "processing of imported
materials by three types of foreign-funded enterprises", the
verification shall be made on the basis of the full amount of the
total stated on the customs declaration forms.
　　Where the set-off is ratified by the foreign exchange
administration under processing of imported materials, the foreign
exchange administration shall, according to the processing contract
of the exporter, make the verification with respect to the value
added, and set off the value of the imported materials against that
stated on the corresponding import declaration forms. Where the
"deep processing of imported materials" is settled in RMB, the
import declaration forms shall be verified, written off, and
concluded by the foreign exchange administration of the place where
the transferor is located.
(4) In the case of export under "compensation trade", if the value
stated on the declaration forms is less than or the same as that
stated on the import declaration forms, those values shall be
directly set off for the verification. If the value stated on the
declaration forms is more than that stated on the import declaration
form, the verification shall be made with respect to the exceeding
part.
(5) In the case of export under "returned goods", "re-export of
imported materials", "replacement of imported materials", "re-export
of imported leftover materials", "outward processing", or "bonded
factory", the verification shall be made on the basis of the total
price stated on the declaration forms or by setting off against the
value stated on the corresponding import declaration forms.
(6) In the case of export under "samples and advertising products
A", the verification shall be made on the basis of the collection or
non-collection of the full amount of the total price stated on the
customs declaration forms. Where the proceeds not collected in a
single transaction exceed 500 US dollars or the equivalent, the
verification of non-collection margin shall be made according to the
contract or agreement signed between the parties.
(7) In the case of export under "leasing trade" or "less-than
one-year leasing", if the foreign party is the leaseholder, the
verification shall be made on the basis of the full amount of the
total price stated on the customs declaration forms. If the amount
of the rent collected is insufficient for the verification, the
margin may be set off against the corresponding import declaration
forms of the returned equipment (goods) for verification. If the
Chinese party is the leaseholder, the verification of non-collection
shall be made on the basis of the printed copies (affixed with the
business seal of the bank) of the electronic records of the import
declaration forms.
(8) In the case of export under "petty trade to Taiwan", where the
transaction is settled in spot foreign exchange, the verification
shall be made on the basis of the full amount of the total price
stated on the customs declaration forms. Where the transaction is
settled in foreign currency cash, the verification shall be made on
the basis of the total price stated on the customs declaration forms
and the amount settled as stated on the foreign currency cash
settlement vouchers. Where the transaction is settled in RMB, the
verification shall be made on the basis of the total price stated on
the customs declaration forms and the value in RMB stated on the
certificate of account entry of RMB;
(9) In the case of export under "petty border trade", where the
transaction is settled in spot foreign exchange, the verification
shall be made on the basis of the full amount of the total price
stated on the customs declaration forms. Where the transaction is
settled in foreign currency cash, the verification shall be made on
the basis of the total price stated on the customs declaration forms
and the amount settled as stated on the foreign currency cash
settlement vouchers. Where the transaction is settled in RMB, the
verification shall be made on the basis of the total price stated on
the customs declaration forms and the value in RMB as stated on the
certificate of account entry of RMB. Where the transaction is
settled in the currency of a adjourning country, the verification
shall be made on the basis of the total price stated on the customs
declaration forms and the value of the currency of the adjourning
country as stated on the declaration form of foreign currency
carried into China or on the certificate of inward remittance. Where
the transaction is settled through barter, the verification shall be
made on the basis of the set-off of the total price stated on the
declaration forms against that stated on the import declaration
forms. Where the payment is collected through individual remittance
of domestic resident, the verification shall be made on the basis of
the total price stated on the customs declaration forms and the
value stated on the special foreign exchange settlement vouchers for
verification.
(10) In the case of export under plane bartering trade in the form
of "tourism commodities trade", and "general trade", where the
transaction is settled in spot foreign exchange, the verification
shall be made on the basis of the full amount of the total price
stated on the customs declaration forms. Where the transaction is
settled in foreign currency cash or individual remittance, the
verification shall be made on the basis of the total price stated on
the customs declaration forms and the amount settled as stated on
the foreign currency cash settlement vouchers, or the amount settled
as stated on the foreign exchange settlement vouchers of individual
inward remittance. Where the transaction is settled in RMB, the
verification shall be made on the basis of the total price stated on
the customs declaration forms and the value in RMB as stated on the
certificate of account entry of RMB.
(11) In the case of export under "barter trade", with respect to
full barter, the verification shall be made on the basis of the
set-off of the total price stated on the declaration forms against
that stated on the import declaration forms. With respect to partial
barter, the verification shall be made on the basis of the total
price stated on the declaration forms, and the margin shall be set
off against the import declaration forms for the goods bartered in.
(12) In the case of export under other methods subject to customs
control, the verification shall be made pursuant to the provisions
of the foreign exchange administrations and the relevant
departments.
　　In the case of export under government loan, the verification
shall be made in RMB or foreign exchange collected within China on
the basis of the explanation provided by the exporter, the approval
document of the government, the contract or agreement and the
declaration forms, etc., as well as the notice of RMB account entry
or notice of foreign exchange account entry issued by the
corresponding bank to the exporter.
　　In the case of export under foreign aid loans or funds and
overseas material investment, the verification of non-collection
margin shall be made on the basis of the explanation provided by the
exporter, the approval document of the government department, the
contract or agreement and the declaration forms, etc.
Article 46 When making the verification, the foreign exchange
administration shall affix the seal of "verified and written-off" on
the import declaration forms used in the set-off, and shall verify,
write off and conclude those forms in the "System of Import Payment
in Foreign Exchange of China Electronic Port".
Article 47 When making the verification for the exporter, if the
foreign exchange administration can not get the relevant electronic
records through the normal way due to block of network or technical
problems of the system, etc., or there is not electronic records of
the relevant data because no electronic administration has been
applied, the foreign exchange administration may, after examining
the verification certificates provided by the exporter and ensuring
that there is no mistake, input the relevant data into the System of
Verification Report, and make the verification at the same time.
Article 48 When examining the verification certificates provided by
the exporter, the foreign exchange administration shall make the
verification according to the different trade methods if the
certificates are complete, the data are correct and the margin
between the value of the exported goods and proceeds collected or
the value of the imported goods has not exceeded the prescribed
standard. If the said margin has exceeded the prescribed standard,
the foreign exchange administration shall, after examining the
prescribed margin certificates and ensuring that there is no
mistake, make the margin verification for the exporter. If the said
margin has exceeded the prescribed standard and the exporter fails
to provide the prescribed margin certificates, the margin shall be
included in future check if the relevant provisions are complied
with, or the margin shall be brought into the administration of the
failure to make verification within the time limit, if the
conditions for future reference are not met and the prescribed time
limit is exceeded.
Article 49 After finishing the verification for the exporter, the
foreign exchange administration shall affix the seal of "verified
and written off" on the corresponding special pages and the special
tax refund pages of the verification forms. In the case of margin
verification, and verification in foreign currency cash, the
currency of an adjourning country, and RMB, etc., the foreign
exchange administration shall also indicate on the tax refund pages
of the verification forms the amount, currency, and date of the net
income. All the documents shall be returned to the exporter except
the special record pages of the electronic data of export proceeds
that are input manually. A special page to be used for several times
shall be returned to the exporter after being marked with the amount
verified and written off or with the balance. And the exporter
shall, after using that special page for verification for the first
time, keep the original of that page for record, and use the copy of
it to make verification and record afterwards. The foreign exchange
administrations that have not applied the system of verification
report form shall well handle the return of the list of
verification. And the foreign exchange administrations that have
applied the system of verification report form shall well handle the
return of the Verification Report Form, and keep the foreign
exchange administration record page of that form. With respect to
the margin verification, the foreign exchange administrations shall
keep all the verification certificates except the special tax refund
pages of the verification forms.
Article 50 The foreign exchange administrations shall regularly
upload the electronic data verified and written off to the data
center of "China Electronic Port" for consultation by the relevant
administrations of commerce, customs and taxation, etc.
Chapter 8 Automatic Verification
Article 51 The foreign exchange administrations shall approve the
qualification for automatic verification of the exporters that meet
the following conditions:
(1) Having a 100% rate of international balance report;
(2) Being graded as "honorable enterprise of collection of proceeds"
in the verification assessment in the last year;
(3) Having not committed any acts in violation of foreign exchange
administration in the last two years;
(4) Other conditions provided for by the foreign exchange
administrations.
Article 52 When examining the qualification of the exporter for
automatic verification, the foreign exchange administration shall
prepare the Review Form of Qualification for Automatic Verification
and Written-Off of Export Proceeds in Foreign Exchange (see
attachment 1), and submit that form to SAFE level by level. Upon
ratification of SAFE, the foreign exchange administration shall
issue to the exporter the Notice of Confirmation of the
Qualification for Automatic Verification and Written-off (see
attachment 2).
　　Only after the exporter signs on the receipt of the Notice of
Confirmation of the Qualification for Automatic Verification and
Written-off for conformation and undertakes to perform the
prescribed obligations and assume the relevant responsibilities, may
the foreign exchange administration applies the administration of
automatic verification with respect to that exporter.
Article 53 The branches of the foreign exchange administrations
shall promptly promulgate the list of the exporters entitled to the
administration of automatic verification (hereinafter referred to as
automatic exporters), and shall send copies of the list to the
relevant local administrations of commerce, taxation and customs,
etc.
Article 54 The automatic exporter may apply to the foreign exchange
administration for all the verification forms it needs for half a
year, and shall use those forms pursuant to the relevant provisions.
Article 55 The automatic exporter shall collect the export proceeds
in good time and full amount, and shall obtain the special pages
pursuant to the relevant provisions.
Article 56 In any of the following situations, an automatic exporter
shall make the verification report pursuant to the provisions of
Chapter 6 hereof, and the foreign exchange administration shall make
the verification for that exporter pursuant to the provisions of
Chapter 7 hereof:
(1) Where the proceeds can not be collected in full amount in an
export transaction;
(2) Where it needs to make export refund or go through other
relevant formalities within 90 days after the clearance of the
goods, and where the proceeds have already been collected;
(3) Where the goods are exported by the trade methods in which no
proceeds are collected or only partial proceeds are collected;
(4) Where there is no need to make the report of foreign-related
income with respect to the proceeds collected after the export.
　　In the case of the second situation, after the automatic exporter
has reported to the foreign exchange administration, the foreign
exchange administration shall adjust the date of collectable export
proceeds accordingly in the System of Verification Report.
Article 57 Except the situations provided for in Article 56 hereof,
an automatic exporter need not make the verification report to the
foreign exchange administration, neither need it make the
verification with the foreign exchange administration, but it shall
submit through the net the declaration forms used in the
verification. And the foreign exchange administration shall, on a
monthly basis, make the automatic total-quantity verification on a
chronicle basis with respect to its customs declaration data and the
bank collection data through the System of Verification Report.
Article 58 The automatic exporter need not rely on the tax refund
pages of the verification forms to make tax refund. The tax
administration shall make the tax refund on the basis of the
electronic data received from the data center of China Electronic
Port and the list of verified and written off data provided by the
foreign exchange administration to the tax administration every
month.
Article 59 The port record of verification forms, customs
declaration, record of forward collection, margin verification,
refund of foreign exchange, and future reference of margin, etc., of
an automatic exporter shall be handled pursuant to the relevant
provisions.
Article 60 After the foreign exchange administration makes the
verification for an automatic exporter on a monthly basis, if the
rate of verification of that exporter fails to reach the prescribed
rate, the foreign exchange administration shall issue a precaution
notice to that exporter.
Article 61 After the exporter has received three consecutive
precaution notices, if its rate of verification still fails to reach
the prescribed rate or it no longer meets the conditions specified
in Article 51, the foreign exchange administration may disqualify it
from automatic verification and will not approve its qualification
for automatic verification in the next year.
Article 62 With respect to an automatic exporter which has been
disqualified from automatic verification, the foreign exchange
administration shall issue to it the Notice of Disqualification from
Automatic Verification and Written-Off (see attachment 3), put that
on record with SAFE, and send copies of the notice to the relevant
local administrations of commerce, taxation and customs, etc.
Article 63 Where an automatic exporter has been disqualified from
automatic verification by the foreign exchange administration, it
shall make the verification report pursuant to the provisions of
Chapter 6 hereof, and the foreign exchange administration shall make
the verification for it pursuant to the provisions of Chapter 7
hereof.
Article 64 The automatic exporter shall keep in good conditions the
original verification certificates pursuant to the relevant
provisions.
Chapter 9 Refund and Compensation of Foreign Exchange
Article 65 Where the exporter needs to pay foreign exchange to any
foreign importer as a result of refund or compensation under export,
it shall apply to the foreign exchange administration by taking with
it the prescribed documents. The foreign exchange administration
shall, after examining the authentication of those documents, deduct
the actually export proceeds achievements of that exporter and issue
to it the Certificate of Deducted Proceeds/Verification (see
attachment 4). And the bank shall sell and pay the foreign exchange
for the exporter on the strength of the Certificate of Deducted
Proceeds/Verification. Where the exporter has provided the import
declaration forms, the foreign exchange administration shall verify,
write off, and conclude those forms in the System of Import Payment
in Foreign Exchange of China Electronic Port pursuant to the
provisions.
Article 66 The exporter shall, when applying for refund or
compensation of foreign exchange, provide the following certificates
to the foreign exchange administration pursuant to the following
provisions:
(1) Where the export customs declaration has not been made but the
whole or part of the payment has been advanced before the contract
is terminated due to certain causes, the exporter shall provide the
export contract, the certificate of termination of the contract or
the agreement on refund or compensation, the special page or the
certificate of collection of proceeds issued by the bank.
(2) Where the goods are exported and the export proceeds have been
collected, but the verification has not been made, the exporter
shall provide the export contract, agreement on refund or
compensation, verification forms, declaration forms and special
pages. Where the goods are returned as compensation, the exporter
shall also provide the import declaration forms indicated with
"returned goods".
(3) Where the goods are exported, the export proceeds have been
collected and the verification has been made, the export contract,
agreement on refund or compensation, special pages or the
certificate of tax not refunded (or tax made up) issued by the
taxation administration shall be provided.
(4) Where the overseas party remitted by mistake any payment into
China and such payment has not been verified and written off, the
exporter shall provide the explanation of the situation, letter of
the overseas party requiring refund, the special pages, and the
collection certificate issued by the bank.
Chapter 10 Regulation on the Failure to Make the Verification within
the Prescribed Time Limit
Article 67 Where the exporter, after exporting the goods, fails to
make the verification within 30 days after the anticipated date of
collection of proceeds, that exporter shall be regarded as failing
to make the verification within the prescribed time limit.
Article 68 A foreign exchange administration shall check the
failures to make the verification within the prescribed time limit
on a monthly basis and urge the making of verification regularly,
issue the Notice Urging Verification and provide the exporters with
the List of Items not Verified and Written-Off within the Prescribed
Time Limit.
Article 69 Where the exporter has received the Notice Urging
Verification from the foreign exchange administration, it shall
carefully check, verify, and confirm the data against the List of
Items not Verified and Written off within the Prescribed Time Limit,
and make the verification in good time.
Article 70 Where the exporter is in any of the following situations,
the verification department of the foreign exchange administration
shall transfer the case to the inspection department for
investigation and punishment:
(1) Where the exporter takes no steps to fulfill its obligation
after being urged by the verification department of the foreign
exchange administration, or the exporter fails to justify its
conduct with reasonable causes;
(2) The exporter fails to make the verification within 6 months
after collecting the export proceeds and fails to justify its
conduct with reasonable causes;
(3) The total amount that has not been verified and written off has
reached 5 million US dollars or the equivalent, and the exporter
fails to justify its conduct with reasonable causes.
Chapter 11 Assessment of Verification
Article 71 Assessment of verification refers to the administration
system in which the foreign exchange administrations, in conjunction
with the commerce administrations, assess the exporters''
performance of verification, determine the exporters'' grades of
collection of proceeds, and award or punish the exporters of
different grades respectively. The assessment of verification shall
be carried out on a yearly basis.
Article 72 The object of the assessment of verification is all the
exporters that have collected export proceeds and that should make
the verification within the assessed period.
Article 73 The index of the assessment of verification shall be the
verification rate. The verification rate refers to the proportion
that the amount verified and written off bears to the amount that
should be verified and written off. SAFE and the Ministry of
Commerce may appropriately adjust the standards of the assessment of
verification according to the specific situations of different
times.
Article 74 Standards of the assessment of verification and the
grades of annual assessment are as follows:
(1) The exporter shall be graded as an "honorable enterprise of
collection of proceeds", if its verification rate reaches or exceeds
95%. A large exporter whose verification rate reaches or exceeds 85%
and whose annual export value is more than 200 million US dollars or
the equivalent may also be graded as an "honorable enterprise of
collection of proceeds";
(2) The exporter whose verification rate is between 70% (including
70%) to 95% shall be graded as a "qualified enterprise of collection
of proceeds";
(3) The exporter whose verification rate is between 50% (including
50%) to 70% shall be graded as a "risky enterprise of collection of
proceeds";
(4) The exporter whose verification rate is lower than 50% shall be
graded as a "highly risky enterprise of collection of proceeds"
Article 75 The principle of local and leveled assessment shall be
applied in the assessment of verification. The branches and
sub-branches of SAFE and the commerce administrations at the
corresponding levels shall be in charge of the annual assessment and
grading of the exporters under their respective jurisdictions.
Article 76 The system of notification shall be applied with respect
to the results of the assessment of verification. The range of
notification shall include the exporters and the administrations of
customs, banks, and taxation under the respective jurisdictions of
the foreign exchange administrations. The foreign exchange
administrations at the province level shall, in conjunction with the
commerce administrations at the corresponding level, make joint
notification with respect to the results of the assessment and
grading, and shall promulgate the names of the "honorable
enterprises of collection of proceeds" and the "highly risky
enterprises of collection of proceeds".
Article 77 The results of the grading of "honorable enterprises of
collection of proceeds", "qualified enterprises of collection of
proceeds", "risky enterprises of collection of proceeds", and
"highly risky enterprises of collection of proceeds" shall take
effect as of the date of the grading and the valid term is one year.
Article 78 Where the exporter has been graded as a "highly risky
enterprise of collection of proceeds" in one year or been graded as
a "risky enterprises of collection of proceeds" for two consecutive
years, the commerce administration shall suspend or cancel its
qualification for export business management.
Chapter 12 Treatment of the Loss of Verification Instruments
Article 79 In the case of loss of any verification form, the
exporter and the foreign exchange administration shall deal with the
problem pursuant to the following provisions:
(1) In the case of loss of a blank verification form that has not
been used in customs clearance, the exporter shall report the loss
with the System of Collection of Proceeds within one workday.
(2) In the case of loss of a verification form that has already been
used in the customs clearance but not in the verification, the
exporter shall report the loss and apply for reissuing of the
special tax refund page of the verification form with the local
foreign exchange administration on the basis of the verification
certificates other than the verification form. The foreign exchange
administration shall, after examining the verification certificates
provided by the exporter and ensuring that there is no mistake,
record the loss of the special tax refund page of the verification
form through the System of Collection of Proceeds, and shall, within
3 workdays after finishing the verification for the exporter, issue
to the exporter the Certificate of Reissuing of the Special Tax
Refund Page of the Verification Form (see attachment 5).
(3) In the case of loss of the special tax refund page of a
verification form after the verification is finished, the exporter
shall file an application for loss report and reissuing of the
special tax refund page with the foreign exchange administration on
the strength of the certificate of tax refund issued by the taxation
administration. Where the taxation administration certifies that the
tax has not been refunded, the foreign exchange administration
shall, after recording the loss in the System of Collection of
Proceeds", issue the Certificate of Reissuing of the Special Tax
Refund Page of the Verification From to the exporter within 3
workdays.
Article 80 In the case of loss of the special page, the exporter,
the bank and the foreign exchange administration shall deal with the
problem pursuant to the following provisions:
(1) In the case of overseas collection, the exporter shall apply for
reissuing of the special page with the foreign exchange
administration on the strength of a written report and the
declaration form of overseas income. The foreign exchange
administration shall verify the electronic data of the
foreign-related income declaration submitted by the bank and make
sure that the special page has not been used in the verification,
and issue the "ratification document for reissuing of the special
page" to the exporter (see attachment 6).
(2) In the case of collection of export proceeds for which no
international balance report is needed, the exporter shall apply for
reissuing with the foreign exchange administration on the strength
of the written report and the page of the foreign exchange
settlement voucher/collection notice of export proceeds kept by the
exporter, or the written explanation issued by the bank certifying
the foreign exchange settlement or collection of the exporter, and
the foreign exchange administration shall, after examining the
documents provided by the exporter and ensuring that there is no
mistake and that the special page has not been used in the
verification, issue the Ratification Document for Reissuing of the
Special Page to the exporter.
(3) The bank shall reissue the special page to the exporter on the
strength of the Ratification Document for Reissuing of the Special
Page issued by the foreign exchange administration, and shall
indicate on that special page the words of "reissued", the number of
the original declaration form of foreign-related income or the
special number of verification, and the source of the export
proceeds.
Article 81 Where the exporter has lost the import or export customs
declaration form, the case shall be dealt with pursuant to the
Notice of the State Administration of Foreign Exchange and the
General Administration of Customs on the Relevant Issues Concerning
Paper Import and Export Customs Declaration Forms and the Relevant
Electronic Records (No.14 [2003] of SAFE).
Chapter 13 Administration of Archives
Article 82 The foreign exchange administrations, banks, and
exporters shall apply classified administration of the archives of
verification transactions provided for herein, all the verification
archives shall be kept for 3 years for future reference except those
that need to be kept for a long time as set forth by the provisions.
The foreign exchange administrations shall keep the relevant data
under the verifications for 10 years.
(1) Verification documents that the foreign exchange administrations
should keep
1. With respect to the electronic data input manually, the
corresponding paper records shall be kept;
2. Verification forms or verification reports (record pages kept by
the foreign exchange administration);
3. Documents kept for future reference;
4. Margin verification documents;
5. Format and model of the special page provided for by the bank;
6. Documents examined for the issuance of the Certificate of
Reissuing of Special Tax Refund Page, Certification of Deducted
Proceeds/Verification, Ratification Document for Reissuing of the
Special Page, and other relevant documents, as well as the record
pages of the certificates issued kept by the foreign exchange
administration;
7. Verification forms that should be kept under writing-off
transactions;
8. Other documents that the foreign exchange administration deems
must be kept.
(2) Documents the banks should keep
1. Certificate of Deducted Proceeds/Verification
2. Ratification Document for Reissuing of the Special Page
3. Other documents that should be kept
(3) Documents the exporters should keep
1. Verification certificates returned by the foreign exchange
administration, among which, with respect to the special page that
is to be used for several times, the exporter shall, after using
that page in the verification, put on archive the original of that
page, and use the copy of it for the verification afterwards.
2. The verification list or verification report (the record page
kept by the exporter);
3. Other documents that should be kept.
Article 83 The foreign exchange administrations, banks and exporters
shall regularly compile the verification documents into volumes and
designate special personnel to assume the administration of the
archives.
Article 84 The foreign exchange administrations shall regularly or
irregularly inspect the keeping of verification archives of the
exporters.
Article 85 The foreign exchange administrations, banks and exporters
may destroy by themselves the archives that have exceeded the period
of keeping.
Chapter 14 Rules of Punishment
Article 86 The banks and exporters shall handle the verification in
accordance with the Measures for the Administration of the
Verification and Writing-Off of Export Proceeds in Foreign Exchange
and the present Implementation Rules, as well as other relevant
provisions. And the foreign exchange administrations shall punish
those violating the provisions in accordance with the Regulations of
the People''s Republic of China on Foreign Exchange Administration
and other relevant provisions.
Article 87 If a bank has committed any of the following acts, the
foreign exchange administration shall impose on it a fine ranging
from 10,000 Yuan to 30,000 Yuan:
(1) Filling in the special page incompletely or inaccurately;
(2) Failing to collect or settle foreign exchange for the exporter
in good time or failing to issue the special page in good time,
resulting in the failure of the exporter to make the verification
within the prescribed time limit;
(3) Misreporting or omitting in the report electronic information
about the collection of proceeds.
Article 88 If a bank has committed any of the following acts, the
foreign exchange administration shall impose on it a fine ranging
from 50,000 Yuan to 300,000 Yuan:
(1) Issuing any special page for the foreign exchange settlement or
account entry that does not fall within the collection of proceeds;
(2) Issuing special pages repeatedly;
(3) Reissuing the special page for the exporter without
authorization;
(4) Falsifying the electronic information on the collection of
proceeds;
(5) Failing to observe the provisions in handling the refund and
compensation of foreign exchange;
(6) Failing to keep the relevant documents of the collection of
proceeds and thus resulting in loss, damage, or any other serious
consequences.
Article 89 If the exporter has committed any of the following acts,
the foreign exchange administration shall impose on it a fine ranging from 10,000 Yuan to 30,000 Yuan:
(1) Failing to make verification according to the provisions after the collection of proceeds;
(2) Falsifying or misreporting the number of the verification form to the bank to cheat for the special page;
(3) Failing to make verification and conclusion pursuant to the provisions after stopping transacting export business due to certain reasons.

Article 90 If the exporter has committed any of the following acts, the foreign exchange administration shall impose on it a fine ranging from 50,000 Yuan to 300,000 Yuan:
(1) Using forged or altered verification instruments, such as verification forms, import and export declaration forms, and special pages, etc.;
(2) Using a special page repeatedly;
(3) Making falsified verification report on the basis of any foreign exchange income other than export proceeds from trade;
(4) Without the approval of the foreign exchange administration, failing to collect the proceeds within 180 days after the date of customs declaration under spot collection of proceeds; or failing to collect the proceeds within the anticipatory date as recorded with the foreign exchange administration under forward collection of proceeds without justified reasons;
(5) Failing to keep in good conditions or losing the original verification certificates and thus resulting in serious consequences.

Chapter 15 Supplementary Provisions

Article 91 The power to interpret the present Implementation Rules shall remain with the State Administration of Foreign Exchange.

Article 92 The present Implementation Rules shall enter into effect as of October 1, 2003. Where any previous relevant provisions conflict with the present Measures, the present Implementation Rules shall prevail.