New developments in Forex Administration for trade in goods - Huifa  No.3
On January 26, 2017, the State Administration of Foreign Exchange (SAFE) issued the "Circular on Further Advancing the Reform of Foreign Exchange Administration and Improving Examination of Authenticity and Compliance" ("Huifa  No.3"). There are three main aspects regarding changes in forex administration for trade in goods as follows:
- Allowing settlement of domestic forex loans with goods for export;
- Enhancing examination of forex collections and payments as well as the authenticity of trading transactions; and
- Improving management and accounting of forex income derived from the trade of goods stored overseas.
Objectives of the new circular include:
- Facilitating short-term financing for export trade transactions; and
- Strengthening controls and examination of forex collection and payment compliance for trade in goods