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    Cross Border Trade RMB Settlement Is Extended To All Import And Export Enterprises.

    2012/3/5 9:36:00 29

    RMB Import And Export Business Qualification

    "All provinces (autonomous regions, municipalities directly under the central government) and cities under separate planning shall have the qualification to import and export business, and the renminbi settlement of export trade shall be carried out according to the" administrative measures for the settlement of RMB settlement in cross border trade "and this circular according to law.

    Recently, the notice issued by the six ministries and commissions of the people's Bank of China and the Ministry of Finance on issues related to the management of RMB settlement enterprises in export trade (hereinafter referred to as the notice) has made the above stipulation.


    The central bank pointed out that the move is aimed at implementing the national "12th Five-Year plan" requirement for expanding the cross border use of RMB, adapting to market demand and further promoting trade liberalization and facilitation.


    "Over the past two years, the measures for RMB settlement in cross-border trade have been gradually improved, and the scale of settlement has steadily increased. The demand for RMB settlement by enterprises in the export trade is further expanded."

    The central bank said.


    Data released by the central bank showed that the amount of RMB settlement business in cross-border trade increased by 3.1 times over the same period in 2011, of which RMB accounts for 6.6% of the total trade volume in goods trade, up 4.4% from 2010.


    The release of the notice means that the main body of RMB settlement in the export trade is no longer limited to the enterprises listed in the pilot list. All enterprises with import and export qualification can carry out the RMB settlement business of export goods trade.


    Cross border trade as early as July 2009

    RMB settlement

    When the pilot started, only 365 enterprises took part in the first batch of experiments.

    In June 2010, after the expansion of the pilot area to 20 provinces and municipalities, the enterprises in the pilot area could trade in import goods, cross-border service trade and other current account settlement with RMB, and the pilot enterprises of RMB settlement for export goods trade were also expanded to more than 60 thousand.


    In August last year, the central bank further extended the scope of cross-border trade RMB settlement to the whole country.

    The scope of the notice will be extended to all import and export enterprises, which may be another important step in the process of RMB cross-border settlement.


    "At this point, China's enterprises engaged in import and export goods trade, service trade and other current account items can choose to calculate, settle and pay in Renminbi."

    The central bank said.


      

    Bank of China

    (601988, stock bar) chief economist Cao Yuanzheng pointed out that the original RMB cross border settlement is all the import enterprises can carry out, while selecting a part of the export enterprises to carry out a pilot project, the notice will extend the cross-border settlement business to all regions and all export enterprises, and the cross-border settlement business of export enterprises will first encounter the situation of export tax rebate, so the next step is to make further arrangements in terms of taxation.


    "If all the cross boundary settlement can be carried out under regular items, we can say that the liberalization of the current account is in place."

    Cao Yuanzheng said.


    In addition, the notice also stipulates that in order to promote the normal norms of RMB settlement in export goods trade, prevent risks and improve the effectiveness and pertinence of supervision, relevant departments will supervise the enterprises that have serious violations in tax, customs and finance in recent two years, so as to urge them to conduct business in accordance with the law.

    Dynamic management of key regulatory areas should be implemented and adjusted annually.


    Insiders pointed out that in the process of promoting RMB internationalization, we should carry out relevant measures.

    cross-border settlement

    Strengthening supervision of enterprises helps to curb some investors' use of cross-border trade RMB.

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