State Administration of Foreign Exchange to Adjust Administration of Foreign Debt Registration Under Trade in Goods
On December 23, 2008, the State Administration of Foreign Exchange ("SAFE") issued a circular (the "Circular"), effective on the same date, to adjust the administration of foreign debt registration under trade in goods. The Circular loosens restrictions on the amount of prepayment in exports and the deferred payments in imports in several aspects. Both the proportion of prepayment in export of goods and the proportion of deferred payment in import of goods are increased from 10% to 25%, provided that SAFE may still adjust these proportions applicable to certain types of enterprises (e.g. enterprises engaged in the manufacturing of large sets of equipment) to an even higher level. SAFE may adjust the proportions upon the application to enterprises with good credit, no violations of foreign exchange regulations and strict compliance with trade credit registration. The above-mentioned proportions are only applicable to registered prepayment and deferred payments in excess of $30,000. The Circular aims to promote export and import without abandoning supervision of foreign debts under trade in goods, partially in response to the adverse impacts created by the recent global financial crisis.
Copyright ©2009 by Kaye Scholer LLP. All Rights Reserved. This publication is intended as a general guide only. It does not contain a general legal analysis or constitute an opinion of Kaye Scholer LLP or any member of the firm on the legal issues described. It is recommended that readers not rely on this general guide but that professional advice be sought in connection with individual matters. References herein to "Kaye Scholer LLP & Affiliates," "Kaye Scholer," "Kaye Scholer LLP," "the firm" and terms of similar import refer to Kaye Scholer LLP and its affiliates operating in various jurisdictions.
Also of Interest
- M&A and Corporate Governance Newsletter | Spring 2016 March 2016 • Reports / Newsletters
- Q&A with Alice Young: Diversity Experiences and Achieving Success in the Legal Profession April 6, 2015 • Media Mentions
- Kaye Scholer’s Shanghai Corporate Team Recommended in The Legal 500 Asia Pacific 2015 2014年11月5日 • Recognitions
- Kaye Scholer’s Global Capabilities Recognized in IFLR1000 2015 October 27, 2014 • Recognitions
- M&A and Corporate Governance Newsletter Summer 2014 • Reports / Newsletters
- How Chinese Companies Can Successfully Invest in the United States June 30, 2014 • Articles
- M&A and Corporate Governance Newsletter Spring 2014 • Reports / Newsletters
- Kaye Scholer Recognized in Six Practice Areas Worldwide in Chambers Global 2014 March 13, 2014 • Recognitions
- Shanghai Corporate Department Recognized by Chambers Asia Pacific 2014 February 18, 2014 • Recognitions