The People’s Bank of China (PBC) Shanghai Head Office; the branches of the People's Bank of China in Tianjin, Shenyang, Nanjing, Jinan, Wuhan, Guangzhou and Chengdu; the Headquarter Operations Office and the Chongqing Operations Office; the central sub-branches of the People's Bank of China in Hohhot, Changchun, Harbin, Hangzhou, Fuzhou, Nanning, Haikou, Kunming, Lhasa and Urumqi; all central sub-branches of the People's Bank of China in sub-provincial cities; the public finance departments, departments of commerce, state taxation bureaus and China Banking Regulatory Commission offices of Beijing Municipality, Tianjin Municipality, Inner Mongolia Autonomous Region, Liaoning Province, Jilin Province, Heilongjiang Province, Shanghai Municipality, Jiangsu Province, Zhejiang Province, Fujian Province, Shandong Province, Hubei Province, Guangdong Province, Guangxi Zhuang Autonomous Region, Hainan Province, Chongqing Municipality, Sichuan Province, Yunnan Province, Tibet Autonomous Region and Xinjiang Uygur Autonomous Region; the Guangdong Branch and Tianjin and Shanghai Special Commissioner's Offices of the General Administration of Customs and all customs offices directly under the General Administration of Customs:
Since the initiation of pilot RMB settlement in cross-border trade in July 2009, the channels for RMB settlement and clearing have been kept convenient and expedite, and clear and definite policies on RMB export tax refund (exemption) and import and export customs declaration as well as convenient operating procedures have been executed, which are universally hailed by pilot enterprises. To meet the actual demand of enterprises for RMB settlement in cross-border trade and let RMB settlement further play its role in promoting trade and investment facilitation, with the approval of the State Council, you are hereby notified of the relevant matters concerning the expansion of pilot RMB settlement in cross-border trade as follows:
I. The overseas coverage of RMB settlement in cross-border trade shall expand from Hong Kong, Macao and the Association of Southeast Asian Nations to all countries and regions.
II. Eighteen provinces (autonomous regions and municipalities directly under the Central Government), including Beijing, Tianjin, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Zhejiang, Fujian, Shandong, Hubei, Guangxi, Hainan, Chongqing, Sichuan, Yunnan, Tibet and Xinjiang, shall be added as pilot areas.
III. The pilot coverage in Guangdong Province shall expand from four cities to the whole province, and the number of pilot enterprises conducting RMB settlement in export trade in goods in Shanghai Municipality and Guangdong Province shall be increased.
IV. The enterprises in the pilot provinces (autonomous regions and municipalities directly under the Central Government) may conduct RMB settlement in import trade in goods, cross-border trade in services and other current accounts, in accordance with the Measures for the Administration of Pilot RMB Settlement in Cross-border Trade (Announcement No.10 [2009] of the People's Bank of China, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and the China Banking Regulatory Commission, hereinafter referred to as the “Pilot Administrative Measures”).
V. The pilot enterprise management system shall apply to the RMB settlement in export trade in goods in 16 provinces (autonomous regions and municipalities directly under the Central Government) including Beijing, Tianjin, Inner Mongolia, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Hubei, Guangdong, Guangxi, Hainan, Chongqing, Sichuan and Yunnan. The people's governments of all provinces (autonomous regions and municipalities directly under the Central Government) and cities under separate state planning shall coordinate the relevant local departments in recommending pilot enterprises conducting RMB settlement in export trade in goods according to the relevant provisions of Article 4 of the Pilot Administrative Measures. The People's Bank of China, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and the China Banking Regulatory Commission shall, after examination, finalize the lists of pilot enterprises with control over the total number. The finalized pilot enterprises which conduct RMB settlement in export trade in goods shall go through customs declaration procedures for export under the relevant provisions and enjoy the tax refund (exemption) policies for export goods.
VI. The enterprises qualified to engage in the import and export business in eight border provinces (autonomous regions), including Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Yunnan, Tibet and Xinjiang, may, in accordance with the Pilot Administrative Measures, carry out pilot RMB settlement of export goods in general trade and petty border trade with adjacent countries at the designated ports. In particular, the pilot enterprises chosen pursuant to the Pilot Administrative Measures in four provinces (autonomous regions) including Inner Mongolia, Liaoning, Guangxi and Yunnan shall handle the export declaration and tax refund (exemption) formalities in accordance with paragraph V of this Notice; and for other enterprises in eight border provinces (autonomous regions) conducting RMB settlement in general trade and petty border trade with adjacent countries at the designated ports, the export declaration and tax refund (exemption) formalities shall be handled in accordance with the Notice of the Ministry of Finance and the State Administration of Taxation on Allowing Pilot Tax Refund (Exemption) for the RMB Settlement of Export Goods in General Trade and Petty Border Trade in Border Areas (No.26 [2010] of the Ministry of Finance).
VII. The relevant departments of the provinces (autonomous regions and municipalities directly under the Central Government) where the pilot RMB settlement in cross-border trade is carried out shall actively do a good job in the pilot work in accordance with the Pilot Administrative Measures and other relevant documents so as to ensure smooth pilot work on RMB settlement in cross-border trade.
The People's Bank of China
The Ministry of Finance
The Ministry of Commerce
The General Administration of Customs
The State Administration of Taxation
The China Banking Regulatory Commission
June 17, 2010
