1 / The latest support measures from the State Administration of Foreign Exchange

On May 20th, the State Administration of Foreign Exchange issued a notice on supporting the development of new trade formats, in order to facilitate the handling of relevant foreign exchange business, better support the development of new trade formats such as cross-border e-commerce, and promote the improvement of foreign trade quality and efficiency. The notice shall be implemented from the date of issuance.

According to the Notice of the State Administration of Foreign Exchange on Supporting the Development of New Trade Forms, the State Administration of Foreign Exchange will expand the settlement channels for new trade forms, support eligible banks to handle foreign exchange business with electronic transaction information, facilitate the settlement of cross-border e-commerce export business funds, and allow cross-border e-commerce to offset and settle overseas warehousing, logistics, tax and other expenses with export payments.

The notice has optimized the cross-border payment of cross-border e-commerce related taxes and fees, and enterprises can provide customers with cross-border payment of related warehousing, logistics, taxes and fees. Individuals can handle foreign exchange settlement under cross-border e-commerce and market procurement trade through foreign exchange accounts to meet their foreign trade settlement needs.

In terms of improving the settlement of market procurement trade funds, the notice proposes that banks can use the platform information to handle the collection and settlement of foreign exchange for entrusted third-party customs declaration for entities registered on the market procurement trade platform. In order to support foreign trade comprehensive service enterprises in handling export collection procedures, the notice stipulates that foreign trade comprehensive service enterprises that meet technical requirements can handle export collection procedures for their clients through banks with the ability to review electronic transaction information.

The notice has also optimized policies in facilitating enterprises to remotely handle foreign exchange business, optimizing the declaration of small transactions involving foreign payments, and continuously tracking the innovative development of new trade formats.