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 working 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 focused on the transaction characteristics of the new trade format "small, massive, and electronic", guided banking institutions to understand the potential needs of enterprises within their jurisdiction to carry out relevant businesses, built an efficient, safe, low-cost cross-border settlement environment for the new trade format, and fully unleashed 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, with a year-on-year increase of 116.3%, 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 increasingly diversified, and 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 increase 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 withdrawal.

After the Fujian Branch of the Foreign Exchange Bureau learned of the above requirements, it introduced the new offshore international trade policy to enterprises at the first time, guided the Fujian Branch of ICBC to carefully evaluate the sales background, pricing mode, payment terms, settlement account period and other factors of the global procurement import and export contract, and confirmed the authenticity of the transaction. In April 2022, ICBC Fujian Branch successfully handled the first global procurement import L/C business within its jurisdiction, amounting to US $83.97 million, significantly improving the efficiency of capital use. From January to October 2022, ICBC, Export-Import Bank and China Construction Bank handled the new offshore international trade balance of more than US $600 million under global procurement.

Actively adapt to market changes to meet the demand for overseas processing entrusted by enterprises

Influenced by the increasingly fierce domestic competition, many domestic enterprises have begun to set up overseas production plants, transfer part of the production links to overseas countries, and reduce production costs through the way of "entrusting overseas companies for production and domestic companies for cross-border settlement". A textile company in Zhangpu is a small foreign trade company in Fujian Province. In January 2022, it received an order for textile bins from an overseas Wal-Mart company. It is planned to be produced by its Vietnamese subsidiary and shipped directly to an overseas Wal-Mart company. The goods did not enter or leave the customs territory of China.

The Fujian Branch of the Foreign Exchange Bureau actively guided the Bank of China Zhangzhou Branch to carry out due diligence on the company's overseas procurement contracts and business models, sort out the business logic, and confirm the authenticity and rationality of the transaction. In March 2022, it successfully handled a new offshore international trade income under the entrusted overseas processing for the company, amounting to 37000 US dollars. After realizing the convenience of the new offshore international trade policy, the company continued to expand its business. From January to October 2022, it handled the new offshore international trade balance of nearly 200000 US dollars under the entrusted overseas processing, significantly 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 go abroad, participate in overseas engineering construction, and carry out business through "overseas purchase of engineering materials, cross-border settlement of domestic companies". An engineering company in Fujian undertook a transmission line project in Bangladesh in 2020. Due to the need of project construction, it plans to purchase tower materials from India. The purchase price of equipment is planned to be paid in China, and the logistics is planned to be directly transported from India to Bangladesh.

The Fujian Branch of the Administration of Foreign Exchange interpreted the relevant policies for the Bank of China Fuzhou Branch in a timely manner, guided the Bank of China Fuzhou Branch to develop a series of targeted foreign exchange services for enterprises, and conducted due diligence on enterprise business qualifications, background of overseas contracted projects, business models, etc., to confirm the authenticity and rationality of the transaction. In March 2022, Bank of China Fuzhou Branch successfully handled the payment business under the overseas purchase of contracted projects for the engineering company, amounting to 582000 US dollars, effectively enhancing the enterprise's global resource allocation capability.