The Commissions/Bureaus/Offices of Foreign Trade and Economic Cooperation, the Bureaus/Office of Finance, the Economic and Trade Commissions (Economic Commissions, Economy Planning Commissions) of of each Province, Autonomous Region, National Municipality and Solely-planned Municipality, the National Enterprises of Foreign Trade and Economy, and five other enterprises of Foreign Trade and Economy (not including Nanguang Group Corporation Ltd., Residence in Macao):
According to Notice on Transmitting "Suggestion on encouraging the enterprises to develop the businesses of overseasl processing trade made by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), the State Economic and Trade Commission (SETC), and the Ministry of Finance (MOF)" by the Office of State Council (OSC), (OSC[1999]No.17), the MOFTEC, the MOF, the SETC, the People's Bank of China, the State Administration of Foreign Exchange (SAFE) have jointly formulated the Administration Regulation of the Discount Interest of Loans for Working Foreign Exchanges for the overseas enterprises of processing trade. Now we distribute it to you, cease execute it subsequently. If there are any problems in execution, please report them to the MOFTEC in time by letter.
Enclosure:
The Administration Regulative of the Discount Interest of Loans for Working Foreign Exchanges for the Overseas Enterprises of Raw Processing Trate
Chapter 1 General Principles
Item 1 According to the Notice on Transmitting "Suggestion on encouraging the enterprises to develop the businesses of overseas processing trade by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), the State Economic and Trade Commission (SETC), and the Ministry of Finance (MOF)" by the Office of State Council (OSC) (OSC[1999]No.17), the regulation has been formulated specially to promote our enterprises to develop overseas raw material processing and assembling.
Item 2 The Loans for Working Foreign Exchanges in the regulation refer to the circulating funds of the short-term loans of foreign spot exchange which the overseas enterprises of processing trade obtain from domestic banks (Loans of Foreign Exchange for short). The term of the loans does not exceed one year.
Item 3 The overseas enterprises of processing trade should borrow, use or refund the loans according to related regulations of foreign exchange management in our country.
Chapter 2 Application conditions and forms of discount interest
Item 4 For the enterprises which are approved to be engaged in overseas processing trade by the nation, and have received the Approval Certificate of the Overseas Enterprises of Processing trade, the People's Republic of China, they can apply for the Discount Interest of the Loans of Foreign Exchange obtained from banks.
Item 5 For the approved Loans of Foreign Exchange for which the overseas enterprises applied, the bank implement according to its normal interest rate. The Central Foundation of Foreign Trade Development (CFFTD) will pay the discount interest to the enterprises by 2%.
Item 6 All discount interest will pay in RMB, and the amount under yuan will do not count.
Item 7 The exchange rate refers to the weighting average RMB price converted into by the SAFE from the foreign currency of that month, which contains the interest balance date.
Item 8 The counting time of the discount interest is in accordance with the counting time that the bank takes the interest of the loans from the enterprises. It will not include interest added and interest punished outside the normal term of the loans. The fund of discount interest will be appropriated every half year.
Chapter 3 Application procedures and requirements
Item 9 The application for the discount interest takes the dependency management; After the application materials for the discount interest of the enterprises are examined by the lending bank, they are required to report them to the provincial agency of FTEC before January 31st or July 31st .
Item 10 After examining the materials of the discount interest according to the principle of "Stressing the emphasis, and supporting the priority", and being checked by the provincial bank corresponding to the lending bank, the provincial agency of FTEC reports them to the provincial agency of finance with the ETC on February 15 and August 15, and report the duplicated copies to the MOFTEC, the SETC at the same time. After examining the materials of the discount interest, the provincial agency of finance reports the examination result enclosure with the Application forms of the discount interest of the Loans of Foreign Exchange to the MOF to apply for drawing the interest, and send the duplicated copies to the provincial agencies of FTEC and ETC.
Item 11 The following materials should be provided for the application of the discount interest:
(1) the Approval Certificate of the Overseas Enterprises of Processing Trade, the People's Republic of China;
(2) the contract of the Loans of Foreign Exchange offered by the bank, the balance testimonial of receiving the interest, and the balance bill of paying the interest of the enterprises;
(3) the Application forms of the discount interest of the Loans of Foreign Exchange(Annex, one form, two copies).
Chapter 4 the payment and management of the interest money
Item 12 After checking the relevant material with the head bank of the lending bank, the MOF will appropriate the interest money down, and send the duplicated copies to the MOFTEC and SETC.
Item 13 The interest money will be appropriated to the enterprises through the provincial Bureaus/Offices of Finance by the MOF before February 28 and August 31 every year.
Item 14 The interest money that the enterprises receives will be used to reduce the expense of financial affairs.
Item 15 The provincial agencies of FTEC and Bureaus/Offices of Finance are required to supervise, examine to ensure the payment of the interest money, and report them to the MOFTEC and the MOF before March 31 and September 30 every year.
Item 16 The MOFTEC and the MOF will examine selectively the execution of the discount interest and the payment of the interest money.
Chapter 5 Punishment
Item 17 The following are forbidden for The approved enterprises enjoying the discount interest can do the following:
(1) Change the use of the Loans of Foreign Exchange for other uses without authorization;
(2) Change the use of the interest money without authorization;
(3) Take wrong actions to cheat the interest money;
(4) Reject or don't cooperate with the supervision, examinations stipulated in the regulation.
For the enterprises belong to (1) or (2) behaviors, their qualification for applying the discount interest will be canceled; For the enterprises belong (3) their overseas enterprise qualification of processing trade will be canceled, and suggest related leaders giving administrative sanction to the main principals or other principals; those committing a crime will investigate and treat their criminal responsibility; For the enterprises belong to (4) they should correct in limited term at requirements; for those unable to correct there qualification for applying the discount interest will be canceled
Chapter 6 Supplementary articles
Item 18 The MOFTEC and the MOF are responsible for the explanation and revision of the regulation.
Item 19 The provisional regulations are to be put into effect from the date of its issuance.
May 19, 1999 |
