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China introduces new pilot forex policy on goods trade

Updated: Jan 3,2019 9:24 AM     CGTN

China’s foreign exchange (forex) authority launched a new pilot policy on goods trade to better facilitate forex transaction, said the State Administration of Foreign Exchange on Jan 2.

The policy is being experimented in Guangdong-Hong Kong-Macao Greater Bay Area, Shanghai and East China’s Zhejiang province.

Banks in compliance with relevant regulations are allowed to take convenient measures to facilitate transaction for enterprises with good credit.

For example, banks will optimize the auditing process of forex revenue and expenditure documents on condition of understanding their customers needs and being fully responsible.

The legal forex revenue of pilot enterprises can be directly included into the forex settlement account with no need to be in the to-be-checked account in the first place.

The overdue and non-original re-exchange can be handled in banks as the registration procedure of business under special conditions is canceled.

In addition, the customs clearance process has further been simplified. Banks can skip the electronic information checking procedure if they can ensure the authenticity and legitimacy of the forex businesses.

The move is part of the country’s efforts to improve the business environment and serve the development of a stable and sound economy.