Interpretation Of The New Cross-Border Payment Policy Of The State Administration Of Foreign Affairs In 2015

The State Administration of foreign exchange recently released the cross-border Payment institutions.

The pilot guidance (hereinafter referred to as the "guiding opinions") is a nationwide pilot project for cross-border payment of foreign exchange by payment institutions.

Mr. Zheng Huadong, Mr. Qian Bao, has done some core reading for everyone according to his own experience for many years, aiming at some problems that people care about. VP

I. The Application for pilot qualification -- full liberalization.

The "guidance" adopts a list management to the payment institutions that set up cross border foreign exchange payment business. After payment institutions submit relevant application materials, they can obtain official written documents within 20 working days only after being examined by the branch of the foreign exchange bureau, and complete the registration of "list of foreign exchange and receipts and payments enterprises in foreign trade" (for goods trade only), and copy it to the State Administration of foreign exchange.

Compared with 2013 (only five cities in Shanghai, Beijing, Chongqing, Zhejiang and Shenzhen), the application of pilot qualification has been fully liberalized, and the original 22 pilot institutions will face the challenges of many new payment institutions.

Two. About the amount of single paction increased to $50 thousand.

The guidance will be "original".

No more than 10 thousand dollars equivalent, and the amount of single trade in trade in services should not exceed $50 thousand equivalent. "The revised limit is $50 thousand for a single paction.

The increase of the single paction limit is of great significance for promoting the development of cross-border electricity providers, and to a large extent meet the demand for small cross-border electricity suppliers with high technology content and high unit price of unmanned aerial vehicles.

Three. About payment in advance - allowing allowance for clearing accounts.

The guiding opinions stipulate that the payment institution can handle the difference in settlement when the paction information is reduced by request.

Qian Bao VP Zheng Huadong pointed out that this modification will greatly reduce the settlement cost of cross-border electricity suppliers and Payment institutions, while shortening business processing time.

At present, due to the good pilot situation, the volume of pactions is growing rapidly. Under most of the operations or manual processing, the differential paction can reduce the workload of the payment institutions and cooperative banks, and is conducive to further development of the pilot business.

At the same time, we should pay attention to the two types of data such as the actual payment and the original payment.

Four. About cooperative banks no longer limit the quantity.

The "guidance" no longer limits the amount of the co operative bank and the reserve account, giving the payment agencies more room to operate, and promoting the payment agencies and more banks to carry out cross-border foreign exchange payment pilot business.

Five, about information declaration - small sum summary input

For a cross border foreign exchange payment business with a single amount equivalent to US $500 (inclusive), the guiding opinions require the cooperative banks to collect the currencies and the nature of the pactions.

In the name of the institution, the management system of individual purchase and sale pactions is no longer needed.

This amendment will also greatly simplify the information reporting work of the cooperative bank and contribute to business development.

Qian Bao VP Zheng Huadong believes that, on the whole, the new version of the guidance has been combined with the supervision experience of the foreign exchange administration over the past year and the practical feedback from the payment agencies and the reserve fund cooperation bank. In various ways, the regulatory requirements have been relaxed appropriately, and the development of cross-border e-commerce has been a major favorable policy.