To further facilitate of investment and trade, and to improve the regulatory pertinence and effectiveness, pursuant to the Administrative Rules for the Pilot Program on RMB Settlement of Cross-Border Trade (Announcement by the PBC, Ministry of Finance, Ministry of Commerce, General Administration of Customs, State Administration of Taxation and China Banking Regulatory Commission No.10[2009]), issues pertaining to administration over enterprises engaging in RMB settlement of export of goods are hereby notified as follows:
I. Enterprises with the qualification to engage in import and export business in all the provinces (autonomous regions/centrally-administered municipalities) may carry out RMB settlement of export of goods pursuant to the Administrative Rules for the Pilot Program on RMB Settlement of Cross-Border Trade and these Notices.
II. The PBC shall, in conjunction with the Ministry of Finance, Ministry of Commerce, General Administration of Customs, State Administration of Taxation, and China Banking Regulatory Commission (hereinafter referred to the “Six Ministries and Commissions”), supervise the enterprises that engage in RMB settlement of export of goods based on a priority attention list.
The people’s governments of provinces (autonomous regions/centrally administered municipalities) and cities with independent planning status shall coordinate amongst the local departments concerned to select enterprises to be included in the priority attention list that engage in RMB settlement of export of goods based on the following criteria, and submit the list of enterprises to the Six Ministries and Commissions for examination and approval. The Six Ministries and Commissions shall, on the basis of the list of enterprises submitted by the provinces (autonomous regions/centrally-administered municipalities) and cities with independent planning status, and in light of needs of the departments concerned to perform their respective duties, determine the list of enterprises subject to focused supervision.
(1) having committed such acts as export tax rebate fraud, tax evasion, falsifying VAT invoice or receiving a falsified VAT invoice in the previous two years;
(2) having been put on file for investigation by taxation and public security authorities due to suspicion of tax evasion, export tax rebate fraud, falsifying VAT invoice or receiving a falsified VAT invoice in the previous two years;
(3) having committed smuggling and had other serious violations of custom regulations in the previous two years;
(4) having had relatively serious violations of the rules for financial regulation in the previous two years;
(5) having had relatively serious violations of the laws and regulations on foreign trade in the previous two years; and
(6) having had other relatively serious violations of laws in the previous two years.
III. The Six Ministries and Commissions shall, in order to perform their respective duties, strengthen supervision over enterprises and banks carrying out RMB settlement of export of goods, and fully share the list of priority-attention enterprises subject to focused supervision and other relevant information so as to pool regulatory efforts for effective risk control.
IV. The PBC shall include the list of priority-attention enterprises that engage in export of goods in the RMB Cross-border Receipt and Payment Information Management System. In the process of handling cross-border RMB businesses for these enterprises, banking institutions shall strength examination and verification with the help of the RMB Cross-border Receipt and Payment Information Management System for effective risk control, and properly keep the relevant documents and materials for future reference after handling the business. The RMB funds acquired by enterprises on the priority-attention list from RMB settlement of cross-border trade shall not be deposited abroad.
V. The Six Ministries and Commissions shall perform dynamic management over the list of priority-attention enterprises that engage in RMB settlement of export of goods. The people’s governments of provinces (autonomous regions/centrally-administered municipalities) and cities with independent planning status shall update the list of priority-attention enterprises that engage in RMB settlement every year. The adjusted list of priority-attention enterprises shall be submitted to the Six Ministries and Commissions for examination and approval by the end of January each year, which shall, pursuant to the criteria specified in paragraph II of these Notices, make adjustment to the list of priority-attention enterprises within 60 days.
VI. The people’s governments of provinces (autonomous regions/centrally-administered municipalities) and cities with independent planning status shall submit the list of priority-attention enterprises that engage in RMB settlement of export of goods to the Six Ministries and Commissions within one month as of the date of promulgation of these Notices. Upon joint examination, approval and release of the list by the Six Ministries and Commissions, and a province (autonomous region/centrally-administered municipality) or a city with independent planning status has submitted the list, all enterprises therein with the qualification to engage in import and export business may carry out RMB settlement of export of goods pursuant to the Administrative Rules for the Pilot Program on RMB Settlement of Cross-Border Trade and these Notices. Prior to the release of the list, enterprises that have formerly been listed under the pilot program in relevant provinces (autonomous regions/centrally-administered municipalities) and cities with independent planning status may carry on their RMB settlement of export of goods.
VII. Shanghai Head Office, all branches and operation offices of the PBC, as well as PBC central sub-branches at the provincial capital and quasi-provincial capital levels shall disseminate these Notices to the banking institutions under their respective administration.
3 February 201
