Banks step up examination of payments for imported goods

Date:  2017-06-30    Autor:   Angel SHI

The State Administration of Foreign Exchange (SAFE) issuedHui Fa (2017) No.9 in early April 2017. It deals with the module “verificationof customs declaration information” in the ASOne system that will be opened to banksby SAFE and requires them to verify all import information with the informationin the system, to ensure legality of the business transactions and with it, theforeign exchange payment.

1.    Principal verification

For one single payment for goods traded foran amount of more than USD 100, 000, the bank shall handle verificationformalities of the corresponding electronic information regarding the importdeclaration through the module "verification of customs declarationinformation”. Verification formalities are not needed if the bank concerned canconfirm the authenticity and legality of the payment of foreign exchange by theenterprise.
For one single payment of foreign exchange for goods traded for an amount ofUSD 100,000 or less, the bank decide whether to handle verification through themodule or not.

That is, regardless of whether theenterprise payment is more than USD100, 000, the bank can require enterprisesto provide the custom information for the foreign exchange payment and verifythe custom information in the module, in order to effectively avoid theenterprise apply foreign exchange payment repeatedly using the customdeclaration information or fictitious trade background.

2.    Verification formalities for different kinds of import businesses

I.             Forenterprises whose import declaration formalities are completed, banks shallhandle verification formalities in the module against the amount of the foreignexchange payment within five workingdays as of the date of handling the payment of foreign exchange for goodstraded.

II.            Forenterprises whose import declaration formalities are not completed (pre-payment),banks shall require such enterprises to provide the corresponding customsdeclaration information within 40 daysas of the import date, and handle verification formalities afterwards againstthe amount of the foreign exchange payment;

III.           Forenterprises which could not timely provide customs declaration information forreasonable reasons although their import declaration formalities are completed,banks shall handle the foreign exchange payment upon confirmation of theauthenticity and legality of transactions, and handle verification formalities afterwards within 40 days as of theimport date.

3.    Handling irregularities

For those who failure to provide customsdeclaration information within the prescribed time limit, or being suspected ofusing false customs declaration information etc., the bank shall mark suchenterprises correspondingly on a case-by-case basis in the module, and the markinformation of such enterprises will be available to banks nationwide throughthe module.

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