13 April 2017
SAFE Issues Circular on Facilitating Banks in Trade Documents Checking
The State Administration of Foreign Exchange (SAFE) recently issued the Circular on Facilitating Banks in Carrying out the Checking of Trade Documents to further facilitate banks in unfolding trade authenticity checking and raise the level of trade facilitation. The circular will come into force on 1 May 2017.
The circular states that electronic customs declaration information will be made available to banks across the country. Providing banks with an additional channel for making inquiries on trade authenticity without changing the existing procedures will not only facilitate enterprises in the efficient handling of business but will also help banks raise their level of computerisation of financial services, strengthen risk management and increase their operational efficiency.
The main points of the circular include:
1. Share electronic customs declaration information with banks so that they can check the authenticity of foreign exchange business in trade in goods.
2. Banks may verify electronic customs declaration information in accordance with the principles of “know your customer, know your business and due diligence”. Verification may be exempted if the authenticity of transaction can be confirmed.
3. Banks should indicate on their system and make known to all banks throughout the country enterprises that are found to have failed to provide customs declaration information as required, made repeated use of documents (that are intended for single use), made use of false documents, and so on.
See circular in Chinese.