Foreign Exchange Reform in International Servic
2013-September-9 Source: Newsgd.com
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On July 18, 2013, the Circular on Issuing of Foreign Exchange Administration Regulation in Service Trade (Huifa [2013] No. 30) was promulgated. From this September, reform on foreign exchange in service trade will be carried out nationwide, and it covers six fields.

1. Easier Procedure. The provider or the client of international service trade may go to the bank directly for settlement without the approval from foreign exchange administration bureau.

2. Less Document. For the settlement no more than USD 50,000, the bank does not require transaction document for settlement, but the enterprise or individual shall keep such transaction paper for five years for future reference.

3. Simpler Review. For the settlement more than USD 50,000, the transaction document is required, but the approval from authority, the record filing and duty-paid proof are not necessary in bank’s review.

4. Clearer Regulation. The Guidance on Foreign Exchange in Service Trade and its implementation measures will be enacted and repeal 50 relevant regulations, which forms a crystallized framework for settlement.

5. Lower Threshold. The threshold for enterprise to deposit its income from international service trade in foreign countries is lowered.

6. Broader Administration. The inflow and outflow of foreign currency in international trade is monitored by means of macro-analysis, medium control and micro inspection in administration system, with on-site inspection for risk surveillance.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

Editor: Kate
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