General

At present, promoting the development of new forms and models of trade has become the main content of accelerating the cultivation of new advantages in trade competition and promoting the high-quality development of trade. In order to thoroughly implement the work requirements of the People's Bank of China and the Administration of Foreign Exchange to support the development of new offshore international trade, the Fujian Branch of the Administration of Foreign Exchange focuses on the transaction characteristics of the new trade format of "small amount, large amount and electronic", guides banking institutions to understand the potential needs of enterprises within their jurisdiction to carry out relevant businesses, builds an efficient, safe and low-cost cross-border settlement environment for the new trade format, and fully releases market vitality and creativity. From January to October 2022, the new offshore international trade balance of Fujian Province (excluding Xiamen) totaled US $1.16 billion, an increase of 116.3% year on year, involving 12 banking institutions and 22 enterprises.

Follow the development of international situation and guide the successful implementation of global procurement business

At present, the development of international trade is becoming increasingly diversified. More and more enterprises reduce costs and optimize resource allocation through the global procurement mode of "overseas procurement in country A, production in country B, and unified cross-border settlement by domestic companies". An industrial company in Fujian is mainly engaged in the wholesale of coal products and metal products. In order to effectively improve the sales profit, it plans to import iron ore and coal from Australia, and then sell them to the Malaysian subsidiary within the group, and give the subsidiary the corresponding account period for the collection of funds.

The Fujian Branch of SAFE, knowing the above needs, immediately introduced the new offshore international trade policy to enterprises, guided the Fujian Branch of ICBC to carefully evaluate the sales background, pricing model, payment terms, settlement accounting period and other elements of the global procurement import and export contract, and confirmed the authenticity of the transaction. In April 2022, Fujian Branch of Industrial and Commercial Bank of China successfully handled the first global procurement import L/C business for the company, with the amount of USD 83.97 million, greatly improving the efficiency of capital use. From January to October 2022, Industrial and Commercial Bank of China, Export Import Bank and China Construction Bank within the jurisdiction handled a total of more than 600 million US dollars of new offshore international trade balance under global procurement.

Actively adapt to market changes to meet the needs of enterprises for entrusted overseas processing

Influenced by the increasingly fierce domestic competition, many domestic enterprises have started to set up overseas production plants, transfer some production links to overseas countries, and reduce production costs by "entrusting overseas companies to produce, and domestic companies to settle cross-border". A textile company in Zhangpu is a small foreign trade company in Fujian Province. In January 2022, it received an order for textile storage boxes from an overseas Wal Mart company, which is planned to be produced by its Vietnamese subsidiary and delivered directly to an overseas Wal Mart company. The goods did not enter or exit the customs territory of China.

Fujian Branch of SAFE actively guided Zhangzhou Branch of Bank of China to carry out due diligence on the company's overseas procurement contract, business model, etc., sort out the business logic, confirm the authenticity and rationality of the transaction, and successfully handled a new type of offshore international trade revenue under the entrusted overseas processing project for the company in March 2022, amounting to 37000 US dollars. After realizing the convenience of the new offshore international trade policy, the company continued to expand relevant businesses. From January to October 2022, the new offshore international trade balance under entrusted overseas processing was nearly 200000 dollars, greatly improving the production and operation efficiency of the enterprise.

Responding to the call of the "the Belt and Road" to support overseas purchase of goods for contracted projects

With the development of economic globalization, domestic engineering contracting enterprises have gone abroad to participate in overseas engineering construction, and carried out business through "overseas purchase of engineering materials, cross-border settlement of domestic companies". A Fujian engineering company undertook a transmission line project in Bangladesh in 2020. Due to the needs of project construction, it is proposed to purchase tower materials from India, pay for equipment procurement in China, and transport logistics directly from India to Bangladesh.

Fujian Branch of SAFE timely interpreted relevant policies for Fuzhou Branch of Bank of China, guided Fuzhou Branch of Bank of China to develop a series of targeted foreign exchange services for enterprises, conducted due diligence on enterprise business qualification, overseas contracting project background, business model, etc., and confirmed the authenticity and rationality of the transaction. In March 2022, Fuzhou Branch of Bank of China successfully handled the payment business under overseas purchase of goods for contracted projects for the engineering company, with the amount of US $582000, effectively enhancing the enterprise's ability to allocate global resources.