Issued: June 30 2004

Effective: as of date of issue

Interpreting authority: State Administration of Foreign Exchange

Applicability: "Trade credit" means assets and liabilities arising directly from the provision of credit between sellers and buyers that are involved in trading of goods between Chinese residents and overseas (including Hong Kong, Macao and Taiwan) non-residents, that is, claims and debts resulting from the non-synchronization between payment of funds for goods and transfer of their ownership (Article 2).