State Administration of Foreign Exchange, Issues Relevant to Regulation of Foreign Exchange Control on Non-resident Individuals Circular

Issued: February 16 2004
Effective: March 1 2004
Applicability: Foreign exchange receipts, payments, transfer, settlement and purchase as well as opening of foreign exchange accounts in China by non-resident individuals and the handling thereof by banks shall be carried out in accordance with the Circular and other relevant provisions (Section Two).
  Foreign exchange receipts and payments for capital account items such as trading of B shares shall be handled in accordance with relevant current provisions of the State Administration of Foreign Exchange (Section 10).
  "Non-resident individuals" refers to foreign natural persons (including stateless persons); Hong Kong, Macao and Taiwan compatriots; and Chinese natural persons who hold PRC passports but have obtained foreign permanent right of abode (Section One).

Main contents: The Circular allows non-resident individuals to hold foreign exchange remitted from overseas or foreign currency cash brought by them. They may also deposit it in a bank, withdraw foreign currency cash or carry out foreign exchange settlement. When opening a foreign currency cash account, a non-resident individual is required to produce his proof of identification. If the amount of deposit per person per day exceeds US$5,000 equivalent, other relevant documents are also required. Withdrawal of foreign currency cash per person per day exceeding US$10,000 equivalent, settlement of foreign currency cash per person per transaction exceeding US$5000 equivalent, and outward remittance of foreign currency cash exceeding US$5,000 equivalent also requires proof of identification and other relevant documents. When carrying out foreign exchange settlement from her foreign exchange account, a non-resident individual may handle it directly through a bank if the settlement amount per person per transaction is US$10,000 equivalent or less. If the cumulative settlement amount per person per month exceeds US$50,000 equivalent, the non-resident individual needs to apply to the foreign exchange administration at the locality.
Related legislation: PRC Foreign Exchange Control Regulations (Amendments), Jan 14 1997, CLP 1997 No.2 p7