Notice of the People's Bank of China on Issuing the “Implementing Rules of the Administrative Measures for Piloting Cross-Border Trade Settlement in RMB” (Document [2009] No. 212)

To: the Shanghai Headquarters of the People's Bank of China, all branches and business management departments, core sub-branches at provincial capitals, core sub-branches at sub-provincial level cities, state-owned commercial banks, shareholding commercial banks, and China Postal Savings Bank

In order to carry out the Administrative Measures for Piloting Cross-Border Trade Settlement in RMB, the People's Bank of China has formulated the Implementing Rules of the Administrative Measures for Piloting Cross-Border Trade Settlement in RMB, which are hereby issued to you for your implementation.

People's Bank of China
July 3, 2009

Implementing Rules of the Administrative Measures for Piloting Cross-Border Trade Settlement in RMB

Article 1  The Implementing Rules has been made pursuant to the Administrative Measures for Piloting Cross-Border Trade Settlement in RMB (hereinafter referred to as the “Measures”).

Article 2  The Measures and the Implementing Rules are applicable to import and export trade settlement of the enterprises in pilot areas that make customs declaration and settle in RMB.

Article 3  To open a RMB current account for a participating bank abroad, the domestic correspondent bank shall sign with the participating bank abroad a correspondent settlement agreement, in which the two sides shall agree on such contents as their respective rights and obligations, the conditions for opening the account, the procedures for handling account alteration and cancellation, and the power authorization for information reporting. When opening a RMB current account for the participating bank abroad, the domestic correspondent bank shall ask the participating bank abroad to provide the document for registration in its home country and region or the certificate for its establishment approval by the supervision authority of its home country, the valid ID certificate for its legal representative or designated signor, and other documents of certification for account opening, and shall also make conscientious examination over the truthfulness, completeness and compliance of the aforesaid documents. Within five work days after it opens a RMB current account for the participating bank abroad, the domestic correspondent bank shall fill in the Sheet for Record Filing in Opening RMB Current Account (formula for the Sheet and its content shall be set by the subsidiary of the People's Bank of China at the pilot area), and send it, together with a duplicate of the RMB correspondent settlement agreement, a duplicate of the certification documents for account opening of the participating bank abroad and other documents for the account opening, to the local subsidiary of the People's Bank of China for record filing. The current account of the participating bank abroad may be used only for cross-border trade settlement in RMB, and such an account is currently not included into the Renminibi bank settlement account management system. But the domestic correspondent shall make a special mark of such account in its own management system.

Article 4  If any change happens to the account opening information of a participating bank abroad, the domestic correspondent bank shall be timely informed in writing, and alteration procedures shall be handled accordingly for the correspondent settlement agreement signed at the time of account opening. After receiving the notice of change, the domestic correspondent bank shall handle the alteration procedures in time, and also make a report of the altered information to the People's Bank of China via the RMB cross-border payment information management system within two work days.

Article 5  If a participating bank abroad is to cancel a RMB current account opened with the domestic correspondent bank due to such causes as change of business or closure or merger of its organization, it shall file a written application for canceling the RMB current account with the domestic correspondent bank. The domestic correspondent bank shall terminate the RMB correspondent settlement agreement with the participating bank abroad, and also handle the cancellation procedures. Besides, it shall make a report of the account cancellation information to the People's Bank of China via the RMB cross-border payment information management system within two work days.

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