Aug. 25 – The State Administration of Foreign Exchange is now allowing certain regions to deposit export revenues overseas, with the aim of improving the efficiency of fund use by domestic enterprises.

Huifa [2010] No. 44, issued on August 19, stipulates that starting from October 1, 2010, Beijing, Guangzhou (including Shenzhen), Shandong (including Qingdao), and Jiangsu will carry out a pilot program for depositing export revenues overseas for a period of one year.

According to the notice, those eligible enterprises in the pilot areas who are willing to deposit export revenues overseas may apply to the local SAFE branch for the approval to participate in the pilot program. The pilot enterprises shall open and close offshore accounts, funds collection and payments and submit the relevant documents to the authorities.

In addition, the annual deposits overseas may not exceed a certain percentage of the total export earnings. The ratio can be adjusted by the pilot branch according to the “experimental approach” and the actual situation of the enterprises.

Once an application is approved, the foreign exchange bureaus will attend to the relevant foreign exchange control procedures for the enterprises, after which the enterprises can begin export rebates according to the provisions.