Implementation Rules for Personal Foreign Exchange Management Measures

source ：State Administration of Foreign Exchange

Key point: Implement annual total amount management for individual foreign exchange settlement and domestic individual foreign exchange purchase. The annual total amount is equivalent to $50000 per person per year. The State Administration of Foreign Exchange may adjust the annual total amount based on the international balance of payments.

(Revised) Notice of the State Administration of Foreign Exchange on Issuing the Implementation Rules for Personal Foreign Exchange Management Measures

Branches and departments of the State Administration of Foreign Exchange in various provinces, autonomous regions, municipalities directly under the central government, as well as branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; Designated Chinese foreign exchange banks, China UnionPay Co., Ltd.:

In order to implement the Measures for the Administration of Individual Foreign Exchange (Order of the People's Bank of China [2006] No. 3), the State Administration of Foreign Exchange has formulated the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (hereinafter referred to as the Detailed Rules). We are now issuing the 'Detailed Rules' to you for your compliance and implementation.

After receiving this notice, all branches and foreign exchange management departments of the State Administration of Foreign Exchange should immediately forward it to their subordinate branches, urban commercial banks, rural commercial banks, and foreign-funded banks, complete the business operation training for their subordinate branches and banks as soon as possible, and publish the policy response hotline; Each designated Chinese foreign exchange bank should promptly forward the information to its affiliated branches. If you encounter any problems during execution, please promptly report to the State Administration of Foreign Exchange.

Attachment: Implementation Rules for Personal Foreign Exchange Management Measures

                                                           January 5th, 2007

Implementation Rules for Personal Foreign Exchange Management Measures

CHAPTER I GENERAL PROVISIONS

Article 1  In order to standardize and facilitate the foreign exchange business operations of banks and individuals, these detailed rules are formulated in accordance with the "Personal Foreign Exchange Management Measures".    
Article 2  Annual total amount management shall be implemented for individual foreign exchange settlement and domestic individual foreign exchange purchase. The annual total amount is equivalent to $50000 per person per year. The State Administration of Foreign Exchange may adjust the annual total amount based on the international balance of payments.
The settlement and purchase of foreign exchange within the individual's annual total amount shall be processed at the bank with valid identification documents; For items exceeding the annual total amount, they shall be handled in accordance with Articles 10, 11, and 12 of these detailed rules under the current account, and in accordance with the relevant provisions of "Personal Foreign Exchange Management under Capital Account" under these detailed rules under the capital account.
Article 3  Individuals may remit foreign exchange purchased overseas, deposit it into their own foreign exchange savings account, or carry it out of the country in accordance with relevant regulations.
Article 4  Individuals may entrust their immediate family members to handle the purchase and settlement of foreign exchange within their annual total amount; Foreign exchange purchases, settlements, and overseas individual foreign exchange purchases exceeding the annual total amount may be entrusted to others with relevant supporting documents in accordance with the provisions of these detailed rules.
Article 5  Individuals carrying foreign currency cash entering or leaving the country shall comply with relevant national management regulations.
Article 6  Each designated foreign exchange bank (hereinafter referred to as the bank) shall conduct authenticity verification of individual foreign exchange transactions in accordance with the provisions of these detailed rules, and shall not forge or alter transactions.  
Banks should handle personal foreign exchange purchases and settlements through the Personal Foreign Exchange Settlement and Sale Management Information System (hereinafter referred to as the Personal Foreign Exchange Settlement and Sale System), and enter relevant information truthfully, accurately, and completely.
Article 7  The State Administration of Foreign Exchange and its branches (hereinafter referred to as the State Administration of Foreign Exchange) are responsible for the statistics, monitoring, management, and inspection of individual foreign exchange transactions.

Chapter 2 Personal Foreign Exchange Management under Current Account

Article 8    The foreign exchange income and expenditure under personal current account are divided into operating foreign exchange income and expenditure and non operating foreign exchange income and expenditure.
Article 9    Operating foreign exchange income and expenditure under personal current account shall be handled in accordance with the following regulations:
（1） Individual foreign trade operators should handle foreign trade purchases, payments, and settlements through their own foreign exchange settlement accounts; Its foreign exchange receipts and payments, import and export verification, and international balance of payments declaration are managed by institutions.
Individual foreign trade operators refer to individuals who have lawfully completed industrial and commercial registration or other professional procedures, obtained personal industrial and commercial business licenses or other professional certificates, and registered for the record in accordance with the regulations of the competent commerce department of the State Council, obtained the right to engage in foreign trade business activities.

（2） If an individual industrial and commercial household entrusts an enterprise with foreign trade operation rights to handle imports, I will purchase foreign exchange based on the import agency contract or agreement signed with the agency enterprise. The purchased foreign exchange will be directly transferred to the agency enterprise's current account foreign exchange account through my foreign exchange settlement account.

Individual industrial and commercial households who entrust enterprises with foreign trade operation rights to handle exports can collect and settle foreign exchange through their own foreign exchange settlement account. Foreign exchange settlement can be processed with the export agency contract or agreement signed with the agency enterprise, as well as the export goods declaration form of the agency enterprise. After reporting the name, account number, and other materials required for verification of individual industrial and commercial households to the local foreign exchange bureau, the agency enterprise can use the collection notice of individual industrial and commercial households as verification vouchers.

（3） The foreign exchange settlement under the overseas personal tourism shopping trade method shall be handled with valid identification documents and personal tourism shopping customs declaration forms of the individual.

Article 10     If the non operational foreign exchange settlement under the current account of domestic individuals exceeds the annual total amount, they shall handle it at the bank with their valid ID card and the following supporting documents:

（1） Donation: A notarized donation agreement or contract. Donations must comply with national regulations;

（2） Family support: proof of direct family relationship or notarized proof of support relationship, proof of relevant income of overseas payers, such as bank deposit certificates, personal income tax certificates, etc;

（3） Inheritance income: legal documents or notarized certificates of inheritance;

（4）Insurance foreign exchange income: Insurance contracts and payment certificates from insurance operating institutions. Purchasing foreign exchange insurance must comply with national regulations;

（5） Exclusive rights use and franchise income: payment proof, agreement or contract;

（6） Revenue from legal, accounting, consulting, and public relations services: payment certificates, agreements, or contracts;

（7） Employee compensation: employment contract and income proof;

（8） Overseas investment income: foreign exchange registration certificate for overseas investment, profit distribution resolution or dividend payment letter or other income proof;

（9） Other: Relevant certificates and payment vouchers.

Article 11   If the non operational foreign exchange settlement under the current account of overseas individuals exceeds the annual total amount, they shall handle it at the bank with their valid ID card and the following supporting documents:

（1） Rental expenses: rental contracts, invoices, or payment notices registered with the housing management department;

（2） Life consumption expenses: contracts or invoices;

（3） Medical and study expenses: proof of fees charged by domestic hospitals (schools);

（4） Other: Relevant certificates and payment vouchers.

  For the above-mentioned single foreign exchange settlement with an equivalent value of over 50000 US dollars, the RMB funds obtained from the settlement should be directly transferred to the domestic RMB account of the counterparty.

Article 12   If the non operational foreign exchange purchases under the current account of domestic individuals exceed the annual total, they can be processed at the bank with their valid identity documents and relevant proof of transaction volume.

Article 13   Overseas individuals' legitimate RMB income for current account purchases and the redemption of unused RMB shall be handled in accordance with the following regulations:

（1） Legitimate RMB income obtained from current accounts within the country shall be used to purchase foreign exchange with valid identification documents and relevant proof materials (including tax vouchers) indicating transaction volume.

（2） The exchange of unused RMB back into foreign exchange can be processed with valid identification documents and the original exchange receipt. The validity period of the original exchange receipt is 24 months from the date of exchange; For exchanges that do not exceed the equivalent of $500 (inclusive) on the same day, as well as exchanges that do not exceed the equivalent of $1000 (inclusive) on the same day at domestic or foreign locations before departure, valid identification documents of the individual can be used for processing.
Article 10   Individuals within the country who transfer foreign exchange abroad for current account expenditures shall follow the following regulations:
          For foreign exchange savings accounts with a cumulative value of less than or equal to 50000 US dollars on the day of outbound and domestic remittance, the bank shall handle it with valid identification documents of the individual; If the amount exceeds the above-mentioned amount, it shall be processed with a certificate of authenticity of the transaction amount under the current account.
        For those holding foreign currency cash and remitting a cumulative equivalent of less than or equal to 10000 US dollars on the same day, they must present their valid identification documents to the bank for processing; For amounts exceeding the above-mentioned amount, the transaction shall be processed with a certificate of authenticity of the transaction amount under the current account, the "Declaration Form for Inbound Passengers' Luggage and Articles by the Customs of the People's Republic of China" signed by the Customs, or the withdrawal document for foreign currency cash from the original deposit bank of the individual.
Article 15   Overseas individuals who wish to remit foreign exchange under their current account abroad shall handle the process at the bank in accordance with the following regulations:

（1） Foreign exchange remittances from foreign exchange savings accounts must be processed with valid identification documents of the individual;

（2） Handheld foreign currency cash remittance, with a cumulative equivalent of less than or equal to 10000 US dollars on the same day, can be processed with valid identification documents of the individual; For amounts exceeding the above-mentioned amount, the "Declaration Form for Inbound Passengers' Luggage and Articles of the People's Republic of China Customs" signed by the customs or the foreign currency cash withdrawal documents from the original deposit bank of the individual should also be provided for processing.

Chapter 3 Personal Foreign Exchange Management under Capital Account

Article 16   Domestic individuals' outward direct investment should be handled in accordance with relevant national regulations. After obtaining approval from the local foreign exchange bureau, the required foreign exchange can be purchased or remitted in self owned foreign exchange, and the corresponding foreign exchange registration procedures for overseas investment can be completed.
              For domestic individuals and overseas individuals who habitually reside in China due to economic interests and establish or control special purpose companies overseas and return for investment, the foreign exchange receipts and payments shall be handled in accordance with relevant regulations such as the "Notice of the State Administration of Foreign Exchange on Foreign Exchange Management of Financing and Return Investment of Domestic Residents through Overseas Special Purpose Companies".
Article 17   Domestic individuals can use foreign exchange or RMB, and conduct overseas fixed income, equity and other financial investments through qualified domestic institutional investors such as banks and fund management companies.
Article 18   Domestic individuals participating in foreign exchange business such as employee stock ownership plans and stock option plans of overseas listed companies should apply to the State Administration of Foreign Exchange through their affiliated companies or domestic agencies for approval before processing.
               The foreign exchange income obtained from the sale of stocks and dividends under employee stock ownership plans, stock option plans, etc. by domestic individuals can be remitted back to the domestic dedicated foreign exchange account opened by the affiliated company or domestic agency, and can be settled or transferred to the employee's personal foreign exchange savings account.
Article 19   Domestic individuals who pay foreign exchange premiums to insurance operating institutions approved to operate foreign exchange insurance business in China shall handle the purchase and payment procedures of foreign exchange by presenting the insurance contract and payment notice from the insurance operating institution.
               Individuals within the country who are beneficiaries of foreign exchange insurance and receive compensation or insurance benefits under foreign exchange insurance can deposit them into their own foreign exchange savings account or settle them in foreign exchange.
Article 20   Domestic individuals who have migrated overseas shall transfer their domestic assets to foreign countries before obtaining legal immigration status, as well as the transfer of foreign assets inherited by foreign citizens in accordance with the law, in accordance with relevant regulations such as the "Interim Measures for the Administration of Sales and Payments of Personal Assets to Foreign Countries".
Article 21 Foreign exchange management related to the purchase and sale of commercial housing by overseas individuals within the country, as well as the acquisition of domestic real estate enterprises through equity transfer, shall be handled in accordance with relevant regulations such as the "Notice of the State Administration of Foreign Exchange and the Ministry of Construction on Regulating Foreign Exchange Management in the Real Estate Market".
Article 22 Overseas individuals may invest in domestic B-shares in accordance with relevant regulations; Investment in various financial products issued and circulated domestically should be handled through qualified overseas institutional investors.
Article 23 According to the process of RMB capital account convertibility, the management of domestic individuals providing loans, borrowing foreign debt, providing external guarantees, and directly participating in overseas commodity futures and financial derivative product trading will be gradually relaxed. Specific measures will be formulated separately.

Chapter 4 Personal Foreign Exchange Account and Foreign Currency Cash Management

Article 24 The State Administration of Foreign Exchange manages individual foreign exchange accounts based on the type of account subject and transaction nature. Banks should differentiate between domestic and overseas individuals when opening foreign exchange accounts for individuals. Accounts are divided into foreign exchange settlement accounts, foreign exchange savings accounts, and capital account accounts according to the nature of transactions.
Article 25 Foreign exchange settlement account refers to the account opened by individual foreign trade operators and individual industrial and commercial households in accordance with regulations for handling operational foreign exchange income and expenditure under current account. Its opening, use, and closure are managed according to institutional accounts.
Article 26 Individuals opening foreign exchange savings accounts in banks should provide their valid identification documents, and the account name should match the name recorded on their valid identification documents.
Article 27 Individuals opening foreign exchange accounts for capital projects such as investment special accounts for foreign investors, special purpose companies, and investment mergers and acquisitions, as well as domestic transfers and remittances of funds in these accounts, must be approved by the State Administration of Foreign Exchange.
Article 28 The domestic transfer of funds from personal foreign exchange savings accounts shall be handled in accordance with the following regulations:

（1） I can transfer funds between my accounts with valid identification documents;

（2） The transfer of funds between an individual and their immediate family account shall be processed with valid identification documents and proof of direct family relationship from both parties;

（3） Funds transfers between domestic and overseas individual accounts are managed as cross-border transactions.
Article 29 Funds can be transferred between my foreign exchange settlement account and foreign exchange savings account, but the transfer from my foreign exchange savings account to the foreign exchange settlement account is limited to external payments on the day of the transfer and cannot be settled after the transfer.
Article 30   Individuals who withdraw foreign currency cash with a cumulative equivalent of less than or equal to 10000 US dollars on the same day can handle it directly at the bank; If the amount exceeds the above limit, please report to the foreign exchange bureau in the location of the bank in advance with your valid ID card, proof of withdrawal purpose, and other materials. Banks can process the withdrawal of foreign currency cash for individuals by presenting their valid identification documents and the "Record Form for Withdrawing Foreign Currency Cash" (Attachment 1) signed by the State Administration of Foreign Exchange.
Article 31 Individuals who deposit foreign currency cash into their foreign exchange savings account and accumulate an equivalent of less than or equal to $5000 on the same day can directly process it at the bank; If the amount exceeds the above limit, the individual must present their valid identification documents, the Customs Declaration Form for Inbound Passengers' Luggage and Articles signed by the Customs, or the withdrawal documents for foreign currency cash from their original deposit bank to handle the transaction at the bank. Banks should indicate the name of the deposit bank, deposit amount, and deposit date on the relevant documents.

Chapter 5 Personal Foreign Exchange Settlement and Sale Management Information System

Article 32 Banks that have the qualification to operate foreign exchange settlement and sales business and have connected and used the personal foreign exchange settlement and sales system can directly handle personal foreign exchange settlement and sales business through the personal foreign exchange settlement and sales system.
Article 33 Each bank's head office and branch applying to access the personal foreign exchange settlement and sale system should meet the technical access conditions for the personal foreign exchange settlement and sale management information system (see Annex 2), have trained technical personnel and business operators, and be able to maintain the normal operation of the system.
Article 34 Banks should fill out the personal foreign exchange settlement and sales system bank branch information registration form according to regulations and submit a system access application to the State Administration of Foreign Exchange. After the foreign exchange bureau approves the bank's application for acceptance, it will be granted access.
Article 35 Except for the following situations, banks handling personal foreign exchange settlement and sale business should be included in the personal foreign exchange settlement and sale system:

（1） Foreign exchange settlement and sale through foreign currency exchange points;

（2） Foreign exchange settlement of less than the equivalent of 100 US dollars (including 100 US dollars) through bank counter zero settlement, interest transfer settlement, etc;

（3） Domestic consumption settlement of foreign currency cards;

（4） Overseas cards can withdraw RMB cash through self-service banking devices;

（5） Using domestic cards to purchase foreign exchange for repayment overseas.
Article 36 When banks handle foreign exchange settlement and sale business for individuals, they should follow the following procedures:

（1） Query personal foreign exchange settlement and sales status through the personal foreign exchange settlement and sales system;

（2） Review the proof materials provided by individuals according to regulations;

（3） Enter transaction data of foreign exchange settlement and sale on the personal foreign exchange settlement and sale system one by one;

（4） Print the "Foreign Exchange Settlement/Purchase Notice" through the personal foreign exchange settlement and sales system, and keep it as an accounting voucher for future reference.
Article 37 The State Administration of Foreign Exchange is responsible for assessing and inspecting the standardization of banking operations within its jurisdiction, as well as the completeness and accuracy of business data entry.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 38 Individuals who entrust their immediate family members to handle the purchase and settlement of foreign exchange within the annual total amount shall provide valid identification documents, authorization letters, and proof of direct family relationship for both the principal and the trustee; In other cases, in addition to providing valid identification documents and authorization letters from both parties, relevant proof materials as stipulated in these detailed rules should also be provided.
        Direct relatives refer to parents, children, and spouses. The proof of direct family relationship refers to a valid proof of family relationship issued by government grassroots organizations such as household registration books, marriage certificates, or street offices, public security departments, and notary public departments, which can prove the direct family relationship.
Article 39 Those who violate the Personal Foreign Exchange Management Measures and these detailed rules will be punished by the State Administration of Foreign Exchange in accordance with the Foreign Exchange Management Regulations of the People's Republic of China and other relevant regulations; For matters not explicitly stipulated in the Foreign Exchange Management Regulations of the People's Republic of China and other relevant regulations, banks and individuals shall be fined up to RMB 30000 and RMB 1000 respectively.

Article 40  The State Administration of Foreign Exchange is responsible for interpreting these detailed rules.
Article 41  These detailed rules shall come into effect on February 1, 2007. 

Note: The second item of Article 9 of the "Implementation Rules for the Measures for the Administration of Foreign Exchange for Individuals" in the attachment, which states that "foreign exchange settlement shall be handled with the export agency contract or agreement signed with the agency enterprise, and the export goods declaration form of the agency enterprise," has been revised by Article 4 of the "Notice of the State Administration of Foreign Exchange on Announcing the Abolition of 14 Invalid Foreign Exchange Management Normative Documents and Amending 1 Foreign Exchange Management Normative Document" (Hui Fa [2016] No. 13) to "foreign exchange settlement shall be handled with commercial documents such as contracts and transportation documents issued by logistics companies