颁布日期：19971007 　实施日期：19971015 　颁布单位：中国人民银行

YinFa [1997] No.416

October 7, 1997

Branch of the People's Bank of China (hereinafter "PBC") in each province, autonomous region, municipality directly under the Central Government, Shenzhen branch of PBC; Branch of the State Administration of Foreign Exchange (hereinafter "SAFE") in each province, autonomous region, municipality directly under the Central Government, Shenzhen branch of SAFE:

In order to standardize the opening and use of domestic foreign exchange account and strengthen administration on foreign exchange account,the State Administration of Foreign Exchange legislates the Regulation on Administration of Domestic Foreign Exchange Account in accordance with the emended version of Regulation of Foreign Exchange Administration of People's Republic of China. It is issued to you for implementation and requested to transmit PBC sub-branches,SAFE sub-branches, financial institutions, and to relevant organizations.If problems arise during implementation, it is requested that they be reported to SAFE in timely fashion.

Attachment:

Regulation on Administration of Domestic Foreign Exchange Account

Chapter I General Provisions

Article 1 In accordance with the Regulation of Foreign Exchange Administration of People's Republic of China and the Regulation on the Administration of Surrender, Sales of and Payments in Foreign Exchange, this regulation is legislated in an attempt to regulate opening and use of foreign exchange account and to strengthen administration on foreign exchange account.

Article 2 The State Administration of Foreign Exchange and its branches and sub-branches (hereinafter as "SAFE" in brief) shall exercise supervision on foreign exchange account.

Article 3 Domestic entities, foreign establishments, individuals and foreign nationals in China shall abide by this regulation in opening, use or close foreign exchange account.

Article 4 The terms referred to in this regulation are interpreted below:

1. Financial institutions of deposit refers to banks and non-bank financial institutions having a foreign exchange business license.

2. Foreign exchange account refers to the account of domestic entities, foreign establishments, individuals and foreign nationals in China maintained at a financial institution which is denominated in a convertible currency.

Article 5 Domestic entities and foreign establishments shall not open foreign currency cash account in general case. Individuals and foreign nationals in China shall not open exchange account for settlement in general case.

Chapter II Foreign Exchange Account for Current Account Transaction and its Opening and Use

Article 6 Foreign exchange for current account transactions listed below may be held in a foreign exchange account:

(1) Come-and-go foreign exchange occurred during project construction by domestic entities in operation of oversea contract construction or labor and technique cooperation;

(2) Foreign exchange paid and received by domestic entities involved in agent businesses or oversea businesses on behalf of others;

(3) Foreign exchange received by domestic entities to be paid or settled in a short time, including bid security remitted from oversea, performance security, foreign exchange received first to be paid later for transfer trade, foreign exchange remittance received by Post Office in operation of international remittance, foreign exchange received by railway department in oversea guarantee transportation businesses, foreign exchange deposits received by the Customs, and recognizance etc;

(4) Come-and-go foreign exchange of ocean shipping companies in international ocean transportation business approved by Ministry of Transportation, or of foreign transportation companies and charter companies in international freight business approved by Ministry of Foreign Trade and Economic Cooperation;

(5) Foreign exchange insurance fees received by insurance institutions to be reinsured overseas or not yet settled;

(6) Foreign exchange to be paid overseas for donation, assistance or aid as required by agreement;

(7) Foreign exchange proceeds of duty-free companies from duty-free goods business;

(8) Project funds of enterprises with export-import license in business of export of jumbo electronic equipment with total project funds reaching a specified sum and duration, or advancement and progress payments for projects under international bid;

(9) Foreign exchange within a holding ratio verified by SAFE that is received by international travel agencies and prepaid by foreign travel agencies;

(10) Current account foreign exchange of enterprises with foreign investment within a balance ceiling verified by SAFE;

(11) Foreign exchange used by domestic entities for repayment of principal and payment of interest of domestic or external foreign exchange loans;

(12) Foreign exchange expenses of foreign establishments remitted from abroad;

(13) Foreign exchange proceeds of individuals and foreign nationals in China from current account transactions;

(14) Other foreign exchange of domestic entities under current account as approved by SAFE.

Article 7 Foreign exchange accounts of domestic entities, opened according to the Article 6(1)-(10) and (14) of this regulation, shall be used for receiving foreign exchange under current account and for paying expenditures under current account or capital account expenditures approved by SAFE.

Article 8 Foreign exchange accounts of foreign establishments, opened according to the Article 6(12) of this regulation, shall be used for receiving administrative appropriation remitted from abroad and for paying administrative expenditures.

Article 9 Individuals and foreign nationals in China shall open an foreign exchange account or a foreign currency note deposit account according to Article 6(13) of this regulation.

Article 10 Domestic entities shall apply to SAFE for opening a foreign exchange account for current account transactions.

Article 11 Domestic entities (enterprises with foreign investment are excluded) shall submit the following materials when apply to SAFE for opening a foreign exchange account, fill the approval note of SAFE on opening foreign exchange account (attachment I), and open a foreign exchange account at a Chinese-funded financial institution after approval, and shall draw foreign exchange account utilization certificate (attachment II) at SAFE upon presentation of a return receipt of account opening within 5 days of account opening:

(1) an application report for opening a foreign exchange account;

(2) business license issued by industrial and commercial administrative department or association registration certificate issued by civil administrative department, or valid approval documents issued by authority in conformity with the entity's nature;

(3) approval documents on businesses issued by State Council's authorized agencies;

(4) a contract, an agreement or other relevant materials required by SAFE.

Chinese-funded financial institutions shall make a clear indication of the account number, currency and date of opening and put a stamp of the institution on the return receipt.

Article 12 Enterprises with foreign investment shall apply to SAFE for opening a current account foreign exchange account with an application report on opening a foreign exchange account and a foreign exchange registration certificate enterprises with foreign investment, and then get through account opening procedures at a financial institution with an account opening notice issued by SAFE and a foreign exchange registration certificate for enterprises with foreign investment. The financial institution shall make a clear indication of the account number, currency and date of account opening on the foreign exchange registration certificate for enterprises with foreign investment and put a stamp of the institution on the certificate.

Article 13 When domestic entities apply for opening a foreign exchange account, SAFE shall specify the receipts and payments scope, operating period, corresponding mode of foreign exchange surrender or the ceiling of the account balance according to the utilization of the foreign exchange account, and make a clear indication in the foreign exchange account utilization certificate or the foreign exchange registration certificate for enterprises with foreign investment.

Article 14 Foreign establishments shall apply for a foreign exchange account record form of foreign establishments (attachment 3) with approval documents issued by relevant authority and an industrial and commercial registration certificate, and then get through account opening procedure at a bank with the foreign exchange account record form of foreign establishments.

Article 15 Individuals and foreign nationals in China have freedom in deposit and withdrawal of foreign currency. In case of deposit and withdrawal of a large sum of foreign currency notes over equivalent of 10,000 US dollars, identity certificate or passport shall be present to the deposit bank and the deposit bank shall make a registration case by case.

Article 16 Domestic entities and foreign establishments, which maintain a foreign exchange account for current account transaction, shall make receipts and payments within the scope specified in foreign exchange account utilization certificate, a foreign exchange registration certificate for enterprises with foreign investment or a foreign exchange account record form of foreign establishments.

Article 17 Enterprises with foreign investment shall enter its foreign exchange proceeds from current account transactions into its foreign exchange current account within the account balance ceiling verified by SAFE; Once the balance of the foreign exchange account exceeds the ceiling, foreign exchange shall be surrendered to a designated foreign exchange bank or sold to a foreign exchange swap center.

Deposit financial institution shall advice enterprise with foreign investment in 5 working days to surrender or sell foreign exchange through a foreign exchange swap center once receiving foreign exchange under current account for enterprise with foreign investment over the balance ceiling of foreign exchange current account. In case that the foreign exchange is not surrendered or sold in time due, the deposit financial institution shall report to SAFE and SAFE shall order an imperative surrender.

SAFE shall adjust the principle for rectification of balance ceiling of foreign exchange current account according to enterprises with foreign investment's paid-in capital and demand for turnover of foreign exchange for current account transactions.

Article 18 Other domestic entities shall surrender foreign exchange in the foreign exchange account in a manner specified in the foreign exchange account utilization certificate.

Article 19 Deposit financial institutions shall formulate a unified rule for management of foreign exchange L/C deposit account, submit it to SAFE for record, and open a foreign exchange L/C deposit account for risk control purpose according to the rule submitted.

Foreign exchange L/C deposit account shall not be used for any other purpose.

Chapter III Foreign Exchange Account for Capital Account Transactions and its Opening and Use

Article 20 Foreign exchange from capital account transactions listed below may be kept in a foreign exchange account:

(1) External debt and indirect external debt borrowed by domestic entities and foreign exchange loans of domestic Chinese-funded financial institutions;

(2) Foreign exchange of domestic entities for repayment of principal of domestic and external foreign exchange liabilities;

(3) Foreign exchange of domestic entities from stock issuance;

(4) Capital paid in foreign exchange by Chinese investors of enterprises with foreign investment;

(5) Foreign exchange remitted by oversea legal entities or individuals for establishing an enterprises with foreign investment;

(6) Foreign exchange of domestic entities from realization of asset stock;

(7) Foreign exchange of oversea legal entities or individuals from buying or selling B-share stock;

(8) Foreign exchange from other capital account transactions approved by SAFE.

Article 21 Special accounts for loans opened, according to Article 20(1) of this regulation, shall be credited with funds under external debt, indirect external debt or foreign exchange loans; and be debited with expenditures specified in loans agreement.

Article 22 Special accounts for serving loans, opened according to Article 6(11) and Article 20(2), shall be credited with foreign exchange purchased as approved, foreign exchange transferred from special account for loans as approved and foreign exchange proceeds kept as approved; and shall be debited with repayment of principal and payments of interest of liabilities and relevant expenditures.

Article 23 Special foreign exchange stock accounts, opened according to Article 20(3) of this regulation, shall be credited with foreign exchange proceeds from issuance of stock denominated in foreign currency, and shall be debited with expenditures specified in prospectus approved by administrative department.

Article 24 Foreign exchange capital account of enterprises with foreign investment, opened according to Article 20(4) of this regulation, shall be credited of paid-in capital paid by Chinese and foreign investors of enterprises with foreign investment, and shall be debited with foreign exchange expenditures of enterprises with foreign investment for current account transactions and foreign exchange expenditures for capital account transactions approved by SAFE.

Article 25 Special transient account opened according to Article 20(5) of this regulation, shall be credited with foreign exchange remitted by oversea legal entities or individuals for establishing an enterprise with foreign investment, and shall be debited with operation expenditures for establishment and other relevant expenditures. Once the enterprise is established, the balance of the transient account may be transferred to capital account as foreign investors' investment. In case the enterprise fails to establish, the balance may be remitted oversea with SAFE's approval.

Article 26 Foreign exchange accounts, opened according to Article 20(6) of this regulation, shall be credited with foreign exchange proceeds from asset transfer of domestic entities, and shall be debited for expenditures as approved.

Article 27 Foreign exchange accounts, opened according to Article 20(7), shall be credited of foreign exchange proceeds of oversea legal entities or individuals from trade in stock and of foreign exchange remitted or taken from abroad, and shall be debited for trade in stock.

Article 28 Entities shall apply to SAFE for opening a foreign exchange account for capital account transactions with an application report on opening foreign exchange account and other relevant documents, and then get through account opening procedure at a deposit financial institution upon presentation of an account opening notice verified by SAFE.

(1) With respect to domestic entities opening a special account for loans and a special account for loans repayment, a reserved copy of lending contract, an external debt registration certificate or a foreign exchange (indirect) loans registration certificate shall be presented to SAFE for application;

(2) With respect to domestic entities apply for opening a special stock account, documents such as prospectus approved by security administrative department shall be presented to SAFE;

(3) With respect to enterprises with foreign investment applying for opening a capital account, a foreign exchange registration certificate for enterprises with foreign investment and other relevant documents shall be presented to SAFE;

(4) With respect to oversea legal entities or individuals applying for opening a transient account, a remittance advice and an investment letter of intent shall be presented to SAFE;

(5) With respect to domestic entities applying for opening a foreign exchange account according to Article 20(6) of this regulation, a transfer approval document issued by authority, transfer agreement and funds utilization plan etc shall be presented to SAFE.

Article 29 With respect to opening a B-share account, oversea legal entities or individuals shall open account a security company upon presentation of legal entity certificate of oversea institutions or identity certificate of oversea individuals.

Article 30 When domestic entities apply for opening a foreign exchange account for capital account transactions, SAFE shall verify the receipts and payments scope, operating period and the balance ceiling of the foreign exchange account, and shall indicate the foregoing information in the account opening advice.

Article 31 After opening a foreign exchange account for capital account transactions for an enterprise with foreign investment, deposit financial institutions shall make a clear indication of account number, currency and date of opening on the foreign exchange registration certificate of enterprises with foreign investment, and put a stamp of the financial institution on it.

Article 32 Domestic entities may use the funds in a special loans account for expenditures specified in loans agreement without SAFE's approval.The balance of a special loan repayment account shall not exceed the total sum of principal repayments and interest payment in upcoming two periods. Payments are subject to SAFE's approval transaction by transaction.

Article 33 Domestic entities shall apply for principal repayments and payments of interest and other charges from the special foreign exchange account for loans repayment at local SAFE within 5 working days with the external debt registration certificate and an advice of principal repayment and interest payment from creditor, and draw a verification note for principal repayment and interest payment. Deposit financial institutions shall make payments upon presentation of the verification note issued by SAFE.

Article 34 Domestic entities shall present a foreign exchange (indirect) loans registration certificate, an advice of principal repayment and interest payment from creditor, a lending contract to deposit financial institutions when paying principal and interest of external debt and indirect external debt.

Article 35 Domestic entities converting funds in foreign exchange account for capital account transactions are subject to SAFE's approval; the funds in foreign exchange accounts of oversea legal entities or individuals, opened according to Article 20(7) of this regulation, shall not be converted into RMB.

Chapter IV Supervision of Foreign Exchange Account

Article 36 Domestic entities and foreign establishments in China shall apply to the local SAFE where its is registered for opening an account. Opening foreign exchange accounts in places other than register place shall apply to the following rules:

(1) Enterprises with foreign investment shall apply to the local SAFE where it is registered, and submit a record file to the local SAFE where the account is opened upon presentation of the account opening advice issued by the local SAFE where it is registered. After the SAFE where the account is opened put a stamp on the note, the enterprises with foreign investment may get through procedures at a deposit financial institution;

(2) Other domestic entities opening a foreign exchange account for current account transactions according to this regulation, shall apply to the SAFE where the account is going to open upon presentation of approval documents issued by SAFE where it is registered, and the SAFE where the account is going to open shall issue a approval note of opening foreign exchange account and a foreign exchange account utilization certificate;

(3) Other domestic entities opening a foreign exchange account for capital account transactions according to this regulation shall submit a record file to the SAFE where account is opened upon presentation of an account opening note issued by the SAFE where it is registered, and then shall open a foreign exchange account at a deposit financial institution after the SAFE where account is open put a stamp on the note;

(4) Foreign establishments shall apply to both the local SAFE where it is registered and the local SAFE where account is opened for a foreign exchange account record form for foreign establishments.

Article 37 In case of making a change in contents related to a foreign exchange account in a foreign exchange account utilization certificate, foreign exchange registration certificate of enterprises with foreign investment or a foreign exchange account record form for foreign establishments or an account opening advice, domestic entities and foreign establishments in China shall present relevant documents to SAFE and provide an application to get through procedure for change.

Article 38 In demand of close of a foreign exchange account, domestic entities and foreign establishments shall submit to SAFE a proof document on account closing issued by the deposit financial institution and a foreign exchange account utilization certificate, an external debt registration certificate, a foreign exchange registration certificate of enterprises with foreign investment or a foreign exchange account record form of foreign establishments within 10 working days after getting through account closure procedures.

Article 39 SAFE shall exercise annual inspection on foreign exchange account of domestic entities and foreign establishments.

Article 40 Deposit financial institutions shall report statistics on changes in foreign exchange account to the local SAFE as required.

Article 41 With respect to a foreign exchange account to be withdrawn, SAFE shall send an advice of withdrawal of the foreign exchange account to the deposit financial institution and account-opening unit concerned, and give a clear treatment on the balance of the foreign exchange account according to regulations and order withdrawal of a foreign exchange account in a time limit.

Article 42 Domestic entities and foreign establishments shall apply for and make account opening according to this regulation, and shall use the foreign exchange account within the receipts and payments scope, operating period and balance ceiling rectified by SAFE. Entities shall not open a foreign exchange account without authorization, lease, lend or cross-use a foreign exchange account, use a foreign exchange account to receive, hold or transfer foreign exchange for other entities or individuals, deposit foreign exchange of entities in name of an individual, or use a foreign exchange account beyond the opening period and balance ceiling rectified by SAFE.

Article 43 Deposit financial institutions shall open, close or make receipts and payments through a foreign exchange account for domestic entities, foreign establishments, individuals or foreign nationals in China according to this regulation, and shall supervise the use of foreign exchange accounts of account-opening entities and individuals. Financial institutions shall not open foreign exchange accounts or process receipts in and payments from account beyond scope for domestic entities, foreign establishments, individuals or foreign nationals in China without authorization.

Article 44 In case of domestic entities, foreign establishments, individuals and foreign nationals in China in violation of the following regulations on foreign exchange account management, SAFE shall order correction, withdraw its foreign exchange accounts, circulate a notice of criticism and impose a forfeit from 50,000 yuan through 300,000 yuan:

(1) Open a foreign exchange account in the territory of China without authorization;

(2) Lend, cross-use or transfer a foreign exchange account;

(3) Change the utilization scope of a foreign exchange account without authorization;

(4) Use a foreign exchange account beyond the balance ceiling and operating period rectified by SAFE;

(5) Violate other regulations on foreign exchange account administration.

Article 45 In case a deposit financial institutions opens a foreign exchange account for domestic entities, foreign establishments, individuals and foreign nationals in China without authorization, or make receipts in and payments from a foreign exchange account beyond the limit specified by SAFE, SAFE shall order a correction, circulate a notice of criticism, and impose a forfeit from 100,000 yuan through 300,000 yuan.

Chapter V Supplementary Provisions

Article 46 Noncorporator economic organizations with foreign investment, having a business license in China, shall abide by regulations on enterprises with foreign investment specified in this regulation in opening and using a foreign exchange account.

Article 47 Cases under the following circumstances are not subject to this regulation:

(1) Vostro foreign exchange accounts of financial institutions;

(2) Foreign exchange accounts of foreign embassies, consulate, and resident representative offices of international organizations maintained in China;

Article 48 The SAFE is responsible for the interpretation of this regulation.

Article 49 This regulation shall come into force as of October 15, 1997. The Provisional Rule of Foreign Exchange Account Administration promulgated by PBC on April 1, 1994, the Circulation on Issues Concerning the Provisional Rules of Foreign Exchange Account Administration promulgated by SAFE on May 30, 1994, Account-opening Procedures for Principal Repayments and Interest Payments of External Debt and Foreign Exchange (indirect) Loans promulgated on June 22, 1994, and the Provisional Rule on Domestic Foreign Exchange Account Administration of Enterprises with Foreign Investment promulgated on June 28, 1996 shall be repealed simultaneously.

Attachment 1:Approval Note of SAFE on Opening Foreign Exchange Account(omitted)

Attachment 2:Foreign Exchange Account Utilization Certificate(omitted)

Attachment 3:Foreign Exchange Account Record Form of Foreign Establishments(omitted)