Text:
In order to implement the "going out" development strategy, promote and facilitate the overseas direct investment activities of domestic institutions, and standardize and improve the foreign exchange management of overseas direct investment, the State Administration of Foreign Exchange recently drafted the Provisions on Foreign Exchange Management of Overseas Direct Investment of Domestic Institutions (Draft for Comment) (hereinafter referred to as the Provisions). The relevant situation is now explained as follows:
Background of the promulgation of the Regulations In recent years, the State Administration of Foreign Exchange has conscientiously implemented the Scientific Outlook on Development and the "going global" development strategy, actively carried out policy adjustment and system innovation according to the guiding principles of the country's overseas investment industry and the international balance of payments situation, introduced a series of policy adjustment measures, further simplified the review procedures for foreign exchange management of overseas investment, decentralized the review authority, and lifted the restrictions on foreign exchange purchases, which promoted the development and growth of domestic enterprises "going global" and achieved good results. The main measures are as follows:
The first is to simplify the examination and approval procedures for overseas investment. Cancel the foreign exchange risk review of overseas investment, simplify the review procedures of foreign exchange funds sources for overseas investment, and cancel the system of repatriation profit margin.
The second is to carry out a pilot reform of foreign exchange management for overseas investment. The pilot project began in XX and was fully promoted in May of XX. The main contents are:
1. relax the sources of foreign exchange funds for overseas investment of enterprises. In addition to its own foreign exchange funds, foreign exchange loans and RMB can also be used to purchase foreign exchange.
2. Expand the amount of foreign exchange purchased by overseas investment.
3. Profits from overseas investment are no longer repatriated, and they can stay abroad for capital increase or reinvestment.
4. Further decentralize the authority to examine the sources of foreign exchange funds for overseas investment of enterprises, and increase the authority of provincial foreign exchange bureaus from the original equivalent of $3 million to $100000.
The third is to further adjust the foreign exchange management policies for overseas investment. From July 1 day of XX, the limit on the amount of foreign exchange purchased by overseas investment will be lifted, and the upfront expenses of overseas investment will be allowed to be remitted; Further simplify the pre-cost audit procedure. In August of XX, the authority of overseas investment audit was further decentralized, and the foreign exchange source audit of overseas investment was conducted by the local foreign exchange bureau without reporting to the State Administration of Foreign Exchange for approval.