Article 1 The Regulations are formulated in accordance with the Administrative Rules on Pilot Program of Renminbi Settlement of Cross-border Trade Transactions (hereinafter referred to as the Rules).

Article 2 The Regulations apply to enterprises in the designated pilot areas that use reminbi in customs declaration and settlement of import/export trade transactions.

Article 3 In order to open a renminbi inter-bank fund transfer account for an overseas participating bank, a domestic agent bank shall sign an agent settlement agreement with the overseas participating bank, which prescribes the rights and obligations of both parties, terms for the opening of the above mentioned account, the procedure to process changes of or close the account, delegation of authority to the domestic agent bank to report information and etc.

When opening the renminbi inter-bank fund transfer account for the overseas participating bank, the domestic agent bank shall request the overseas bank to provide the registration document in its home country or region or the approval for incorporation by the concerning regulator in the home country/region, valid identity documents of legal representative(s) or the person(s) authorized to sign agreements on behalf of the bank, and examine the authenticity, integrity and compliance of such documents.

Within five working days after the opening of the renminbi inter-bank fund transfer account, the domestic agent bank shall fill in the Record Form for the Opening of Renminbi Inter-bank Fund Transfer (the format and the content of the form are to be decided by local PBC offices), and submit the Form together with a copy of the renminbi agent settlement agreement, a copy of documents certifying the opening and of the account and other documents needed for account-opening to the local PBC office.

An inter-bank fund transfer account opened for the overseas participating bank is exclusively for the purpose of settling cross-border trade transactions, and the account is not included in the management system of renminbi-denominated bank settlement accounts for the time being. However, the domestic agent bank shall attach a special mark to the account in its own management system.

Article 4 An overseas participating bank shall promptly inform its domestic agent bank of any change in its account-opening information in writing, and go through the procedure in accordance with the agent settlement agreement. Upon the notification, the domestic agent bank shall start the procedure in a timely manner and report the changed information to the PBC via the renminbi cross-border payment/receipt information management system within two working days.

Article 5 Where an overseas participating bank closes its renminbi inter-bank fund transfer account due to change of business, closure or merger and other reasons, the overseas participating bank shall make an application in writing to the domestic agent bank for account closure. The domestic agent bank shall terminate the renminbi agent settlement agreement, complete the account-closing procedure, and report the closure information to the PBC via the renminbi cross-border payment/receipt information management system within two working days after the account is closed.

Article 6 The PBC imposes an annual quota on the aggregated daily netted volume of renminbi purchase and sales between a domestic agent bank and overseas participating banks, an the domestic agent bank may conduct the renminbi purchase and sales business for the overseas participating bank within the quota as per the requests of the overseas participating bank. The quota is to be decided by the PBC in view of specific situations. The domestic agent bank shall establish a separate ledger for renminbi transaction positions under the cross-border trade renminbi settlement business, and accurately record the renminbi purchase/sale transactions with overseas participating banks.

Article 7 The total outstanding financing provided by a domestic agent bank for overseas participating banks shall not exceed 1 percent of the domestic bank's total renminbi deposit outstanding at the end of the previous year, and the maturity of the financing shall not exceed one month. The PBC may make adjustments according to specific situations. The local PBC office with jurisdiction over the domestic agent bank supervises the account financing activities of the domestic agent bank.

Article 8 A domestic agent bank shall confirm account-financing transactions with an overseas participating bank in internationally accepted way.

Article 9 Renminbi clearing banks in Hong Kong and Macau that apply to participate in the national inter-bank borrowing market shall submit to the PBC Shanghai Head Office the following documents:

1) Application documents;

2) Registration documents or the approval for incorporation by the concerning regulator in the place of registration;

3) Documents that prove the eligibility of the renminbi clearing bank;

4) Articles of Association;

5) Internal control system for inter-bank borrowing;

6) Staff members in charge of inter-bank borrowing:

7) Audited balance sheets and income statements in the past three years;

8) Information of the conduct of renminbi businesses in the past two years;

9) Other documents required by the PBC.

Article 10 The PBC Shanghai Head Office examines and approves the applications of renminbi clearing banks in Hong Kong and Macau for participating in the national inter-bank lending market in accordance with the Administrative License Law of the People's Republic of China. Renminbi clearing banks in Hong Kong and Macau become members of the national inter-bank lending market right upon the approval, and can conduct inter-bank lending business pursuant to relevant regulations.

Article 11 The outstanding borrowing and lending amount of a renminbi clearing bank in Hong Kong or Macau shall not exceed 8 percent of the bank's outstanding renminbi deposits at the end of the previous year, and the term of the borrowing/lending shall not exceed three months.

Article 12 The National Inter-bank Funding Center shall provide efficient services for renminbi clearing banks in Hong Kong and Macau such as connecting them to the national inter-bank lending system, price quote and trading and etc., and monitor, compile and inquire statistics of their lending activities.

Article 13 A domestic settlement bank may provide renminbi trade finance for the overseas counterparty of a domestic pilot enterprise, with the financing amount not exceeding the amount specified in the trade contract between the overseas counterparty and the domestic enterprise.

Article 14 A pilot enterprise shall comply with laws and regulations when conducting businesses, and base cross-border renminbi settlement on actual trade transactions. A renminbi settlement ledger shall be established in the enterprise to accurately record import/export customs declaration information and renminbi fund receipt and payment information.

When applying for renminbi trade settlement for the first time, the pilot enterprise shall provide information to its domestic settlement bank such as name and organization code of the enterprise, HS Code, tax registration number, and identity information of the legal representative(s) and person(s) in charge.

When applying for renminbi settlement, the pilot enterprise shall inform its domestic settlement bank of the actual or predicted date for import/export customs declaration, fill in the Notes for Receiving Renminbi from Export Transactions and the Notes for Paying Renminbi to Settle Import Transactions (see the appendix), so that the domestic settlement bank is able to examine the authenticity and consistency of the trade-related documents.

The pilot enterprise shall inform the domestic settlement bank of the actual time of customs declaration after the related import/export goods are declared for the customs or of the adjusted date for customs declaration if the declaration is not made as per the preset schedule.

Article 15 A domestic settlement bank shall, in accordance with requirements of the PBC, examine the authenticity and consistency of every cross-border renminbi fund receipt/payment transaction, and report information about renminbi cross-border payment/receipt, date of import/export or serial number of customs declaration, and renminbi trade finance to the renminbi cross-border payment/receipt information management system. The domestic payment bank shall not process renminbi receipt/payment for pilot enterprises without having examined the authenticity and consistency of the corresponding trade documents within the prescribed timeframe.