Measures of Xiamen Special Economic Zone on Punishment of Foreign Exchange Management

Article 1 These Measures are formulated in accordance with Article 14 of the Detailed Rules for the Implementation of Penalties for Violation of Foreign Exchange Control approved by the State Council and promulgated by the State Administration of Foreign Exchange. Article 2 These Measures shall apply to the organs, armed forces, organizations, schools, state-owned enterprises, inline enterprises, urban and rural collective economic organizations and private economic organizations in Xiamen Special Economic Zone (hereinafter referred to as domestic institutions); Institutions established overseas by institutions in the Special Zone or investment enterprises (hereinafter referred to as overseas institutions); Foreign or Hong Kong, Macao and Taiwan institutions in Xiamen; Foreign-invested enterprises in the special zone; Mainland citizens, foreigners, stateless persons and compatriots from Hong Kong, Macao and Taiwan who live or enter the SAR. Article 3 The Xiamen Branch of the State Administration of Foreign Exchange is the functional department of the Special Zone to investigate and deal with foreign exchange management cases. Entering and leaving the country through goods, luggage, postal articles and means of transportation. Cases of arbitrage and evasion of foreign exchange with smuggling nature shall be handled by the customs; Cases of speculation by using foreign exchange and foreign currency tickets shall be handled by the administrative department for industry and commerce. Article 4 The following acts belong to arbitrage:

(1) Unless approved by the State Administration of Foreign Exchange and its branches (hereinafter referred to as branches) or otherwise stipulated by the state, paying the import payment in RMB or in kind or other funds that should be paid in foreign exchange;

(2) Domestic institutions and their personnel pay various expenses in China for overseas institutions, foreign institutions in China, foreign-invested enterprises and short-term entry individuals, and the other party pays foreign exchange and does not sell it to the state;

(3) Foreign institutions, foreign-invested enterprises in Hong Kong, Macao and Taiwan and their personnel stationed in Xiamen pay various fees for others in RMB. Repayment by others in foreign exchange or other similar forms;

(four) overseas institutions use their RMB to pay various expenses for others in China, and the other party pays foreign exchange;

(5) Without the approval of multilateral institutions, delegations, working groups and their personnel sent by domestic institutions to foreign countries or Hong Kong, Macao and other regions purchase goods or use them for other purposes, and repay them in RMB;

(6) Selling RMB investment shares or other property to overseas economic organizations, enterprises and individuals, collecting foreign exchange or exchanging foreign exchange securities and creditor's rights without the approval of the competent authorities and other legally authorized organs. Article 5 According to different situations of arbitrage, the following penalties shall be given respectively:

(1) If the foreign exchange earned by the arbitrage party is not used, it shall be ordered to repatriate it within a time limit and detain the foreign exchange that should be turned over; If the foreign exchange earned by the arbitrage party has been used, it shall be ordered to make up the equivalent foreign exchange, deduct the corresponding foreign exchange quota, and may be fined 2% to 10% of the arbitrage amount; If the foreign exchange earned by the arbitrage party has been used and has not been returned, a fine of 5% to 20% shall be imposed according to the amount of arbitrage;

(2) For the arbitrage party, a fine of 2% to 10% shall be imposed according to the amount of arbitrage. Article 6 The following acts belong to evasion of foreign exchange:

(1) Without the approval of the competent authority, domestic institutions reserve, use and deposit all kinds of trade foreign exchange, non-trade foreign exchange and other foreign exchange abroad, or deposit foreign exchange abroad in violation of the Detailed Rules for the Implementation of Foreign Exchange Management of Overseas Chinese-funded Enterprises, Foreign-funded Enterprises and Sino-foreign Joint Ventures;

(2) Remitting foreign exchange abroad in violation of the relevant state regulations on foreign exchange control, or remitting foreign exchange abroad according to law, but using it for other purposes or storing it abroad without authorization;

(3) Without the approval of the competent authority, domestic institutions, foreign-invested enterprises and their personnel use foreign exchange from export income or other income to offset the cost or other expenses of imported goods;

(4) Domestic institutions and foreign-invested enterprises underreport foreign exchange earnings by underreporting export prices and commissions, or overstate foreign exchange expenditures by overstateing import prices, fees and commissions, and privately use or deposit hidden foreign exchange abroad;

(five) without the approval of the competent authority, the foreign exchange income and other foreign exchange funds that should be repatriated to China are left in the local business or used for other purposes;

(6) changing the special foreign exchange and adjusting the use of foreign exchange without the approval of the competent authority;

(7) Unless approved by the foreign exchange bureau, delegations, working groups and their personnel stationed abroad or in Hong Kong, Macao and other regions do not use foreign exchange according to special plans, and deposit or use foreign exchange obtained from overseas funds or various business activities for other purposes. Article 7 The following penalties shall be given respectively for different situations of foreign exchange evasion:

(1) If the foreign exchange obtained from foreign exchange evasion has not been used, the violator or its competent department shall be ordered to repatriate the foreign exchange within a time limit, and the foreign exchange that should be turned over shall be detained, and a fine of 2% to 10% may be imposed according to the amount of foreign exchange evasion;

(2) If the foreign exchange earned from foreign exchange evasion has been used, it shall be ordered to pay back the foreign exchange that should be turned over, and a fine of 2% to 10% of the amount of foreign exchange evasion may be imposed;

(3) If the foreign exchange earned from foreign exchange evasion has been used and not returned, or the foreign exchange has not been repatriated within the prescribed time limit, a fine of 5% to 20% shall be imposed according to the amount of foreign exchange evasion. Article 8 The following acts are financial disturbances:

(a) operating foreign exchange business without the approval of the State Administration of Foreign Exchange and its Xiamen branch, or expanding foreign exchange business beyond the approved business scope;

(2) Banks in the Special Zone and their financial institutions open foreign exchange accounts for domestic institutions, foreign-invested enterprises or other units and individuals in violation of the provisions of the State on foreign exchange control;

(3) Domestic institutions, foreign-invested enterprises or other units and individuals use or lend foreign exchange accounts beyond the approved scope in violation of the provisions of the State on foreign exchange control;

(4) Domestic institutions issue securities with foreign exchange value at home and abroad and accept loans from financial institutions and enterprises in foreign countries, Hong Kong, Macao and Taiwan without the approval of the authorized authorities in the State Council or the State Council;

(5) Domestic institutions and foreign-invested enterprises fail to go through the foreign exchange debt registration and related procedures with the competent authorities in accordance with the relevant provisions of the state;

(6) Using foreign currency for settlement, loan, transfer, mortgage or circulation without the approval of the competent authority;

(7) Failing to go through the relevant foreign exchange verification procedures on time in accordance with the provisions of the State Administration of Foreign Exchange;

(eight) buying and selling foreign exchange without permission, buying and selling foreign exchange in disguise, and buying and selling foreign exchange in reverse;

(nine) financial institutions and their personnel in violation of the relevant provisions of the state, for others to arbitrage, evasion, financial disruption and other illegal acts to provide convenience.