State Administration of Foreign Exchange: Further facilitate foreign exchange fund settlement and support stable development of foreign trade.

Recently, the State Administration of Foreign Exchange issued a package of facilitation policies to support the stable development of foreign trade. Among them, it was mentioned to promote the optimization and expansion of facilitation policies. It aims to optimize and expand the scope of high-level open trial points for cross-border trade, further covering more regions with real needs, compliance of operating entities, and in line with the country's strategic development direction. It also supports the healthy development of new trade formats and innovative businesses. It leverages the role of high-quality e-commerce platforms and comprehensive foreign trade service enterprises to recommend and enhance credibility, urging banks to include more small and medium-sized enterprises related to new trade formats in the high-quality enterprise scope, and apply more convenient trade fund settlement policies. The original text is as follows: State Administration of Foreign Exchange issues a package of facilitation policies to support the stable development of foreign trade In order to further implement the decisions and arrangements of the Party Central Committee and the State Council, promote the facilitation of cross-border trade in receipts and payments, and improve the effectiveness of foreign exchange services to support the stable development of foreign trade, the State Administration of Foreign Exchange recently issued the "Notice of the State Administration of Foreign Exchange on Further Facilitating Foreign Exchange Fund Settlement to Support the Stable Development of Foreign Trade" (Letter No. 47, hereinafter referred to as the "Notice"). The main contents of the "Notice" include: First, promote the optimization and expansion of facilitation policies. It aims to optimize and expand the scope of high-level open trial points for cross-border trade, further covering more regions with real needs, compliance of operating entities, and in line with the country's strategic development direction. It expands the types of settlement business under the regular items of the trial enterprises, supports the settlement of net differences between transport, warehousing, maintenance, compensation, and other service fees related to goods and freight trade, reducing settlement costs. It further simplifies the procedures for the net settlement of funds by high-quality multinational corporations under the regular items, supports banks in handling foreign exchange transactions for them conveniently, releases the integrated efficiency of foreign exchange facilitation policies more efficiently. It supports banks to determine the amount of foreign exchange purchases based on the salary materials provided by high-quality enterprises, facilitating related transactions for foreign employees. Second, support the healthy development of new trade formats and other innovative businesses. It leverages the credibility-enhancing role of high-quality e-commerce platforms and comprehensive foreign trade service enterprises, encouraging banks to include more small and medium-sized enterprises related to new trade formats in the high-quality enterprise scope, and apply more convenient trade fund settlement policies. It guides banks to shift from traditional approval methods to automatically batch review trade information generated online by the foreign trade service enterprises, making it convenient for entities of new trade formats to handle foreign exchange receipts and payments. Supervises banks to establish special foreign exchange business disposal mechanisms for regular items, efficiently handling personalized and complex innovative foreign exchange business for domestic institutions with genuine and legal trade backgrounds based on the principle of "substance over form". Third, improve the efficiency of fund utilization for service trade enterprises. It relaxes the management of service trade advance payment business, clarifying that domestic enterprises can directly handle related fund receipts and payments at banks for freight transport, warehousing, maintenance, and other expenses between enterprises and trading counterparts. It supports construction enterprises to allocate and utilize funds across countries and regions effectively, activating the "idle" funds of overseas engineering projects, effectively reducing corporate financial costs, and helping to build the Belt and Road Initiative with high quality. Next, the State Administration of Foreign Exchange will continue to deepen foreign exchange management reforms, facilitate the cross-border trade in receipts and payments for operating entities, continuously improve the quality and efficiency of cross-border fund settlement, and effectively serve the high-quality development of the real economy. This article is compiled from the official website of the State Administration of Foreign Exchange, edited by GMTEight: Feng Qiuyi.