To further promote the facilitation of cross-border trade receipts and payments and enhance the quality and efficiency of foreign exchange services in supporting the stable development of foreign trade, the State Administration of Foreign Exchange recently issued the "Notice on Further Facilitating Foreign Exchange Fund Settlement to Support the Stable Development of Foreign Trade" (hereinafter referred to as the "Notice"). The Notice clearly states that efforts should be made to optimize and expand facilitation policies, support the healthy development of innovative businesses such as new forms of trade, and enhance the efficiency of fund utilization by service trade enterprises.

To promote the optimization and expansion of facilitation policies, the Notice clearly states that efforts will be made to optimize and expand the pilot program for high-level opening up of cross-border trade. On the basis of the existing pilot regions, more regions with actual needs, good compliance of business entities and in line with the national strategic development direction will be further covered. Expand the types of net settlement of funds under the current account for pilot enterprises, support the net settlement of funds between the payment for goods and the service fees related to transportation, warehousing, maintenance and compensation in the goods trade, and reduce the settlement costs of funds. Further simplify the procedures for centralized collection and payment of current account funds and net settlement of differences for high-quality multinational companies, support banks in conveniently handling current account foreign exchange business for them in accordance with the principle of business development, and better release the integrated effectiveness of foreign exchange facilitation policies. Support banks in determining the amount of foreign exchange for salary settlement and purchase based on the salary materials provided by high-quality enterprises, and facilitate the handling of relevant business for foreign-related employees of enterprises.

In terms of supporting the healthy development of innovative businesses such as new trade forms, the Notice states that the role of high-quality e-commerce platforms and comprehensive foreign trade service enterprises in recommending and enhancing credit should be leveraged to encourage banks to include more small and medium-sized enterprises related to new trade forms in the scope of high-quality enterprises and apply more convenient trade fund settlement policies. Guide banks to transform their traditional document review methods. Based on the electronic transaction information generated online by foreign trade comprehensive service enterprises such as orders and logistics, conduct automatic batch reviews through the system to facilitate the convenient handling of foreign exchange receipts and payments for new trade entities. Supervise banks to establish a mechanism for handling special foreign exchange business under the current account. For domestic institutions with genuine and legal transaction backgrounds in the current account foreign exchange business, handle personalized and complex innovative foreign exchange business under the current account efficiently in accordance with the principle of "substance over form".

To enhance the efficiency of fund utilization by service trade enterprises, the Notice clearly states that the management of service trade advance payment business will be relaxed. It is specified that domestic enterprises and their counterparties can directly handle the collection and payment of costs such as goods transportation, warehousing, and maintenance at bank convenience stores. Support contracted engineering enterprises in centralized allocation and utilization of funds across countries and regions, effectively activate the "idle" funds of overseas engineering projects, effectively reduce the financial costs of enterprises, and contribute to high-quality joint construction of the "Belt and Road Initiative".

Next, the State Administration of Foreign Exchange will continue to deepen the reform of foreign exchange management, further facilitate the cross-border trade receipts and payments of business entities, constantly improve the quality and efficiency of cross-border fund settlement, and serve the high-quality development of the real economy. A relevant official from the State Administration of Foreign Exchange said. (Source: Peoples Daily Online）