China Reforms Forex Management System

China's foreign exchange regulator said on September 15, 2011 that it has decided to reform its foreign exchange management system for the goods trade.

The move aims to reduce social costs, promote foreign exchange management and facilitate goods trade, the State Administration of Foreign Exchange (SAFE) said on its website.

The new system will be first trialed in the provinces of Jiangsu, Shandong, Hubei, Zhejiang and Fujian as well as cities of Dalian and Qingdao, the SAFE said.

It will simplify forex payment and settlement process for goods trade as well as exports tax rebate process.

It will also adjust the process of export declaration and improve information sharing mechanism for exports forex collection and tax rebate.

The SAFE said it will work with the State Administration of Taxation and the General Administration of Customs to crack down on illegal cross-border capital flows, tax fraud and smuggling.

Source: China Daily