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Circular of the State Administration of Foreign Exchange Concerning the Relevant Issues on Sorting out the Deposits That Guarantee Profits from Investments Abroad and Are Remitted Back to China
( 2002-11-12 15:54) (chinadaily.com.cn)

(Promulgated on November 12, 2002 by the State Administration of Foreign Exchange)

The branches and offices of the State Administration of Foreign Exchange in all provinces, autonomous regions, municipalities directly under the Central Government, the branches of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

In order to implement the development strategy of Going Globally and the spirit of the Decision of the State Council on Canceling the First Group of Projects Subject to Administrative Approval (No. 24 [2002] of the State Council), we hereby give our notice on the relevant issues concerning the administration of the deposits that guarantee profits from investments abroad and are remitted back to China as follows:

I. The system of deposits that guarantee profits from investments abroad and are remitted back to China is cancelled. From November 15, 2002, foreign exchange bureaus shall no longer collect deposits that guarantee profits from investments abroad and are remitted back to China.

II. All braches and offices of the State Administration of Foreign Exchange (SAFE) shall immediately sort out the collected deposits guaranteeing profits remitted back to China, so as to prepare for the refund work coming next. The leaders of all braches and offices of the SAFE shall attach great importance to this work, and designate special persons to hold the responsibility. The sort-out shall be thorough and complete, and be conducted sum by sum and account by account. The scope of sort-out shall cover the principal and the interest, as well as the deposit accounts opened in the name of the foreign exchange bureau, and the deposit accounts opened in the name of domestic investment subjects but supervised by the foreign exchange bureau.

III. All braches and offices of the SAFE shall finish sorting out the deposits before November 26, 2002, make a report, and submit the report in official written form to the SAFE before November 30, 2002. The report shall include the following contents:

(1) number of enterprises involved in the presently administered deposits;

(2) total amount, including the amount of the principal and interest;

(3) details of deposit, including the names of the depositors, banks of deposit and the amounts;

(4) other particulars to be stated.

IV. The refund of the deposits shall be formally handled after the SAFE has promulgated the specific provisions.

V. All braches and offices of the SAFE shall timely report the problems they meet with in implementing the present notice to the Department for Capital Accounts under the SAFE.

   
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