Unitary policy is implemented in Xinjiang’s foreign trade industry. Border trade with neighboring countries is regulated in accordance with border trade policy of the country. Based on the realities of China’s border trade and with the reference of international practices, China regulates border trade in the following two ways.
Mutual trade between border inhabitants, which means that residents of the border areas trade goods in amounts not more than the ceiling prescribed by the government and at fairs designated by the government within 20 km from the borderline. Goods imported by residents through this form of trade shall be exempted from import duty and import linkage tax if the trade volume of every trader is not more than 3,000 yuan a day; import duty and import linkage tax shall be levied on the business volume above the ceiling of 3,000 yuan if the trade volume of every trade is more than 3,000 yuan a day.
Border trade, which refers to trading activities between enterprises entitled to border trade in border counties or banner, an administrative area at the county level and cities along the land border approved by the State and enterprises and other trade institutions in border areas of the neighboring countries.
Foreign Exchange Control
Foreign exchange in the border trade of Xinjiang with neighboring countries is administrated in accordance with Measures for the Administration of Foreign Exchange in Border Trade. Border trade enterprises may open border trade account in banks in the border areas of China and the border trade account can be settled in currencies of the neighboring countries.
Trade institutions abroad may, with banks in the bordering areas of China, open current foreign exchange account and border trade account in currencies of the neighboring countries. For current foreign exchange account, border trade account in currencies of neighboring countries and special RMB account for border trade opened by trade institutions abroad with banks in Chinese border areas, declaration formalities shall, in accordance with relations of China concerning foreign exchange control, be gone through for receipts and payments related to foreign trade transactions conducted outside China. In Chinese bordering areas where RMB accounts are settled in large amounts, trade institutions may, with banks in Chinese border areas, place special RMB account for border trade.
Earnings made by border trade enterprises in convertible currencies, if the amount is under the ceiling prescribed by the Foreign Exchange Administration for current foreign exchange account, it may be settled or kept under current foreign exchange account; if the amount is above the ceiling, the earnings shall be settled in accordance with relevant regulations.
(This English version is only for reference. To learn more, please refer to the authoritative Chinese version)