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SAFE: to promote decentralization September 1 onwards small transactions without a single trial

 

China State Administration of Foreign Exchange on Wednesday (July 24) announced his decision from September 1 onwards in the nationwide implementation services trade foreign exchange management reform, including the elimination of trade in services purchase and payment approval, small transactions without trial orders and other measures to further promote trade and investment facilitation.
 
SAFE press release posted on the website, the receipt and payment of trade in services small business can be handled directly in financial institutions, financial institutions equivalent of $ 50,000 for single trade in services in the following business principle, the receipt and payment transactions from time to audit documents.
 
For businesses still need to audit documents, simplifying the corresponding single-trial requirements, including dozens of class to the existing audit requirements documents to simplify and merge; removal of most of the department approval, filing documents audit requirements; cancel external payment tax proof.
 
Meanwhile, trade in services should relax domestic institutions of foreign exchange earnings overseas storage conditions, allowing enterprises to foreign exchange earnings of the Group will focus on trade in services outside the store, and strengthen the service trade foreign exchange inflow and outflow bidirectional monitoring.
 
The following is a press release SAFE:
 
To implement the State Council on the financial support of the relevant requirements of the real economy, to further promote trade and investment facilitation, promotion of service trade development, Recently, the State Administration of Foreign Exchange issued "State Administration of Foreign Exchange on Issuing the service trade foreign exchange regulations of the notice" (Hui Fa [2013] No. 30), decided since September 1, 2013 onwards, the nationwide implementation of services trade foreign exchange management reform. The main elements of reform include:
 
First, to promote decentralization. Cancellation approved purchase and payment services trade, service trade purchase and payment services can be directly handled in a financial institution. Foreign exchange management departments to strengthen due diligence requirements for financial institutions to promote financial institutions to improve related internal control system and operational processes, and monitor and check their implementation.
 
Second, small transactions without a single trial. Receipt and payment services trade small business can be handled directly in financial institutions, financial institutions equivalent of $ 50,000 for single trade in services in the following business principle, the receipt and payment transactions from time to audit documents. Domestic institutions and individuals need to retain foreign exchange balance of trade in services related to each transaction documents and five years for future reference.
 
Three is to simplify the document review. For businesses still need to audit documents, simplifying the corresponding single-trial requirements, including dozens of class to the existing audit requirements documents to simplify and merge; removal of most of the department approval, filing documents audit requirements; cancel external payment tax proof.
 
Four is to clean up the integration regulations. Develop "service trade foreign exchange management guidelines" and its implementing rules, regulations abolished more than 50 documents for foreign body handle foreign exchange business provides system services trade, clear and transparent legal basis.
 
Five is to relax outside the store. Relaxation of trade in services by domestic institutions of foreign exchange earnings overseas storage conditions, allowing enterprises Group will focus on service trade foreign exchange income offshore storage.
 
Sixth, strengthen management, and post-management balance. Strengthen the service trade foreign exchange inflow and outflow of the two-way monitoring, the establishment by the macro analysis, meso monitored closely integrated micro-site verification of the regulatory system, supplemented by the necessary on-site verification, inspection, strengthen risk prevention and control.
 
Service trade foreign exchange management reform reflects the foreign exchange management ideas and change the way that helps prevent the formation of facilitation and a combination of new risk management approach will help meet service trade development trends, and promote the healthy development of China's service trade.
Guangzhou Dechun Trade Ltd. Company
Guangzhou Dechun Trade Ltd. Company