The Notice of the State Administration of Foreign Exchange (Huifa [2008] 142) on Improving the Administration of Foreign Exchange Capital Settlement of Foreign-invested Enterprises stipulates that foreign-invested enterprises shall submit the following materials when applying for capital settlement from banks:

(1) IC card for foreign exchange registration of foreign-invested enterprises.

(2) Power of Attorney for the payment of RMB funds obtained by capital settlement.

Payment order letter refers to a written instruction issued by an enterprise or individual, according to which the bank pays RMB funds obtained from foreign exchange settlement.

(3) Documents proving the use of RMB funds after settlement of foreign exchange.

Including the commercial contract or the payment notice issued by the payee, the payment notice should include the main terms and conditions of the commercial contract, the amount, the name of the payee, the bank account number, the use of funds, etc. When an enterprise repays RMB loans with RMB funds obtained from fund settlement, it must submit a statement that the loan funds have been used within the approved business scope as agreed in the contract.

(4) The latest capital verification report issued by an accounting firm (a letter of confirmation of foreign investment must be attached).

(5) Copies of relevant vouchers for foreign payment of RMB funds in settlement of foreign exchange in the early stage and invoices stamped with the official seal or financial seal of the enterprise obtained according to the payment order letter and the usage list (see Annex 2 for the format). If the settlement is the last of one-time or multiple settlements, the enterprise shall submit the above materials to the bank within 5 working days after settlement.

(6) Other materials that the bank thinks need to be supplemented.

Where the enterprise reserve funds with the equivalent value of 50,000 US dollars or less are used for settlement of foreign exchange, the documents in Items (3) and (5) may not be submitted, and the interest in the fund account may be directly settled by the interest list issued by the bank.

As can be seen from the above provisions, the settlement of funds must meet two conditions, one is capital verification, and the other is specific use. If the settlement exceeds US$ 50,000, the RMB obtained from the settlement must also be remitted to the payee agreed in the contract. Even if the one-time remittance of $6,543,800+is verified, it cannot be settled without specific use. What's more, it is not allowed without capital verification.