2009-7-3 14:43:09SAFE: Notice on Adjusting the Examination and Approval Power for Foreign Exchange Business of Capital Account Items

The State Administration of Foreign Exchange (“SAFE”) issued Letter No. 21 [2009] of Notice on Adjusting the Examination and Approval Power for Foreign Exchange Business of Capital Account Items (“the Notice”) on May 6, 2009.

According to the Notice, the SAFE branch of the place where the enterprise is located is delegated to examine and approve an application of a foreign-funded enterprise for opening a capital account at a different place. The local SAFE branch is delegated to examine and approve an application for purchase of and payment in foreign exchange of the existing projects guaranteeing the fixed return from investment by foreign parties. For individuals, the SAFE branch of the immigrant’s previous residence place is delegated to examine and approve an application for the foreign exchange purchase-and-payment concerning his personal property transfer. The SAFE branch of the ancestor’s previous residence place is delegated to examine and approve an application for the foreign exchange purchase-and-payment concerning the adoptive transfer. The SAFE branch may delegate its power to its sub-branches based on the concrete conditions.

The Notice takes into force on June 1, 2009. The delegation from the SAFE to its branches and local foreign exchange administration will definitely facilitate the foreign exchange items concerning capital accounts of the enterprises and individuals.