LETTER

DEPARTMENT OF FOREIGN EXCHANGE OF CENTRAL BANK OF CHINA

From:Department of Foreign Exchange of Central Bank of China

Date:June 11, 2003

Ref. No.:Tai-Yang-Wai-Wu-Zi-0920034703

Attachment:As Text

Subject:Enclosed herewith are the "Explanations for Completion of Declaration of Foreign Exchange Revenue, Payments and Transactions (Sale of Foreign Exchange)" and "Explanations for Completion of Declaration of Foreign Exchange Revenue, Payments and Transactions (Purchase of Foreign Exchange)". Please print and place these on the counters of your business place for declarants' reference when completing declarations. Please take note.

Explanation:Banks approved by the Central Bank of China to handle internet foreign exchange business shall post these Explanations for Completion of Declarations on the Websites for declarants' reference.

Director General

CHOU A Ting

ATTACHMENT I TO
CBC LETTER, DATED
JUNE 11, 2003

EXPLANATIONS FOR COMPLETION OF DECLARATIONS OF
FOREIGN EXCHANGE REVENUE, PAYMENTS AND TRANSACTIONS
(SETTLEMENT OF SALES)

Promulgated by the Central Bank of China

On June 11, 2003

  1. "Source of Foreign Exchange Remittance": Fill in the source of foreign exchange remittance.
  1. "Date of Declaration": Fill in the date of making the foreign exchange settlement declaration.
  1. "Declarant":

(1)A person who receives foreign exchange funds from revenues or transactions with a value equivalent to NT$500,000 or and more and who resides in the Republic of China ("R.O.C.") shall, unless the Central Bank of China ("CBC") agrees, or CBC rules provide, otherwise make the Declaration in his/her/its own name.

(2)If the Declarant appoints another person to handle the New Taiwan Dollar settlement declaration, the Declaration shall be made in the appointee's name with an appointment letter and documents proving the appointor's and the appointee's identities attached thereto.

(3)Non-resident legal entities shall issue a power of attorney to authorize a natural person or a legal person in the R.O.C. as the Declarant. The Declaration shall be made in such Declarant's name as the authorized representative or agent with a statement describing such authorization. Offshore non-R.O.C. financial institutions are not permitted to settle inward remittances.

  1. "Declarant's Registration Number":

(1)Company or firm:

  1. Fill in the Uniform Number issuedby the competent authority when such company or firm was establishedand provide photocopies of the registration card or the latest amended registration card.
  1. If the Declarant is a preparatory office of a businessentity invested in by overseas Chinese or foreigners, fill in the number of the investment approval issued by the competent authority and the name of such competent authority.

(2)Organization:

  1. Fill in the uniform number shown on the establishment document and theapproval issued by the competent authority.
  1. If the above documents do not contain a uniform number, fill in the name of the competent authority in charge of the registration, the number of the registration document and the uniform tax number issued by the tax authority.
  1. Accounting firms, law firms and medical clinics shall follow the rules applicable to organizations when filling out Declarations.

(3)R.O.C. Nationals:

  1. R.O.C. nationals holding a National Identity Card: Fill in the National Identity Card number and the date of birth.
  1. Overseas Chinese holding a Residence Certificate: Fill in the Residence Certificate number (if the Residence Certificate has a uniform number, fill in such uniform number) and the date of birth.
  1. Individual holding Overseas Chinese Identity Certificate or Investment Certificate for Purchasing Housingin the R.O.C. issued by the Overseas Chinese Affairs Commission: Fill in the Overseas Chinese Identity Certificate number.

(4)Foreigners:

  1. Foreigners holding an Alien Resident Certificate ("ARC"): Fill in the ARC number (if the ARC has a uniform number, fill in such uniform number), date of birth,and issuance date and expiration date of the ARC.
  1. Foreigners holding a foreign passport [and not holding an ARC]: Fill in the nationality and passport number in the column "without Alien Resident Certificate".
  1. Overseas Chinese holding an R.O.C. passport but not holding an R.O.C. National Identity Card: Fill in the country where the passport is issued and the passport number in the column "without Alien Resident Certificate" with a notationthatthe name of the issuance department has been added thereto.
  1. Hong Kong and Macau Residents: Fill in Hong Kong or Macau as the country name and the number of the Entry Certificate or Temporary Entry & Stay Notice as the certificate number in the column "without Alien Resident Certificate".
  1. Mainland China Residents: Fill in Mainland China as the country and thenumber of the Travel Certificate or Residence Certificate as the certificate number.
  1. "Nature of Foreign Exchange Revenue or Transactions":

(1)Principles:

  1. Carefully and honestly fill in the nature of the foreign exchange revenuesand transactions. If there is more than one nature, fill in each nature and each settlement amount separately.
  1. [Resident] companies, firms, organizations or individuals: Fill in the nature of the foreign exchange settlement according to the "source" of the foreign exchange remittance.
  1. Non-resident legal entities and natural persons: Fill in the nature of the foreign exchange settlement according to the "intended use" of the foreign exchange remittance.

(2)Export Revenue:

  1. Revenues from goods clearing R.O.C. customs:

Exported: Proceeds from goods having cleared customs in the R.O.C.

Not Exported: Pre-paymentsfor goods which will be exported through R.O.C. customs.

  1. Special revenues from goods:

If such proceeds are from oil sold in the harbor, fish sold overseas or costs of samples, add the nature of such proceeds.

(3)Income from services provided to non-residents: For remunerationreceived by a company, firm, organization or individual for services, such as transportation, insurance, trading commission, patent fess, triangular trade, delivery service, telecommunications service, computer based services, news, technology, visual and audio media, to non-residents, and foreign source salary income earned by R.O.C. citizens, commission (handling fees) and interest income received by banks, and income from expenditure by foreigners for business trip or tourism in Taiwan (income from non-resident's business trip in Taiwan is limited to the foreign exchange sold for traveling expenditure by such non-resident), etc., describe the nature of such income.

Example:

Where a firm engages in international trade and the goods are not exported through R.O.C. customs, but the proceeds of such goods are collected in the R.O.C., such trade is in the nature of "triangular trade" and such proceeds shall be filled in as "Inward Remittance from Triangular Trade".

(4)Other Remittances: For investments in Taiwan from overseas Chinese and foreigners, repatriation of various capital invested abroad, repatriation of overseas investment returns (including capital gains and dividends), various interest income, inward remittance of foreign loans, repatriation of loans to foreigners or foreigner's repayments of advances, issuance of overseas corporate bonds, issuance of overseas depositary receipts, inward remittance for family support, inward remittance as donation, re-exchange of un-unused portion of conversions for travel expenses, settlement of foreign exchange deposited in the R.O.C., describe the nature of such income.

Example:

a.Inward remittance of direct equity investment or working capital investment by overseas Chinese or foreigners cannot be randomly filled in as proceeds from export of goods. Except for investments exempted from approval requirements under to regulations governing investment by overseas Chinese and regulations governing foreign investment, exchange settlements shall be handled in accordance with the relevant letters issued by competent authorities, in order to smoothly complete the investment review procedure:

(1)Establishment of a subsidiary: If the exchange settlement is done in accordance with the competent authority's approval letter, the nature of such settlement shall be filled in as "equity investment by foreigner or overseas Chinese".

(2)Establishment of a branch office: If the exchange settlement is done in accordance with the competent authority's recognition/correction letter or Foreign Company Recognition Application Submission Slip chopped with competent authority's seal to evidence receipt of such application, the nature of such settlement shall be filled in as "branch office working capital in Taiwan".

b.If the inward remittance is to pay for representative office expenses, the nature of the exchange settlement shall be filled in as "office expense for Taiwan representative office having no profits from operations".

  1. "Amount of the Remittance": Fill in the settled foreign exchange amount or the foreign currency amount with an equivalent value in New Taiwan Dollar.
  1. "Country of Remittance": Fill in the country where the foreign exchange was actually remitted from. However:

(1)If the inward remittance is fromdomestic foreign exchange deposits or from other domestic banks and is settled in New Taiwan Dollars, the country of remittance shall be filled in as "Domestic".

(2)If the remittance is from a domestic OBU and is settled in New Taiwan Dollars, the country of remittance shall be filled in as "Domestic OBU".

If you have any questions about the rules applicable to the declaration of foreign exchange revenues, paymentsor transactions, please consult the bank or make an on-line inquiry on the Website of the Central Bank of China, Website address:

ATTACHMENT II TO
CBC LETTER, DATED
JUNE 11, 2003

EXPLANATIONS FOR COMPLETION OF DECLARATIONS OF
FOREIGN EXCHANGE REVENUE, PAYMENTS AND TRANSACTIONS
(SETTLEMENT OF PURCHASES)

Promulgated by the Central Bank of China

On June 11, 2003

  1. "Purposeof Foreign Exchange Remittance": Fill in the destination of foreign exchange remittance.
  1. "Date of Declaration": Fill in the date of making the foreign exchange settlement declaration.
  1. "Declarant":

(1)A person who needs to pay foreign exchange for payments or transactions with a value of NT$500,000 or more and who resides in the Republic of China ("R.O.C."), shall, unless the Central Bank of China ("CBC") agrees, or CBC rules provide, otherwise, make the Declaration in his/her/its own name.

(2)If the Declarant appoints another person to handle a New Taiwan Dollar settlement declaration, the Declaration shall be made in the appointee's name with an appointment letter and documents proving the appointor's and the appointee's identities attached thereto.

(3)The following non-resident legal entities shall issue a power of attorney to authorize a natural or legal person in the R.O.C. as the Declarant:

  1. Non-resident legal entities: Please fill in the authorized representative or agent and describe the basis for acting as an agent.

b.Offshore non-R.O.C. financial institutions: Please fill in the authorized financial institution and describe the basis for acting as an agent.

  1. "Declarant's Registration Number":

(1)Company or firm:

  1. Fill in the Uniform Number issuedby the competent authority when such company or firm was establishedand provide photocopies of the registration card or the latest amended registration card.
  1. If the Declarant is a preparatory office of a businessentity invested in by overseas Chinese or foreigners, fill in the number of the investment approval issued by the competent authority and the name of such competent authority.

(2)Organization:

  1. Fill in the uniform number shown on the establishment document and theapproval issued by the competent authority.
  1. If the above documents do not contain a uniform number, fill in the name of the competent authority in charge of the registration, the number of the registration document and the uniform tax number issued by the tax authority.
  1. Accounting firms, law firms and medical clinics shall follow the rules applicable to organizations when filling out Declarations.

(3)R.O.C. Nationals:

  1. R.O.C. nationals holding a National Identity Card: Fill in the National Identity Card number and the date of birth.
  1. Overseas Chinese holding a Residence Certificate: Fill in the Residence Certificate number (if the Residence Certificate has a uniform number, fill in such uniform number) and the date of birth.
  1. Individuals holding an Overseas Chinese Identity Certificate and Investment Certificate for Purchasing Housingin the R.O.C. issued by the Overseas Chinese Affairs Commission: Fill in the Overseas Chinese Identity Certificate number.

(4)Foreigners:

  1. Foreigners holding an Alien Resident Certificate ("ARC"): Fill in the ARC number (if the ARC has a uniform number, fill in such uniform number), date of birth,and issuance date and expiration date of the ARC.
  1. Foreigners holding a foreign passport [and not holding an ARC]: Fill in the nationality and the passport number in the column "without Alien Resident Certificate".
  1. Overseas Chinese holding an R.O.C. passport but not holding an R.O.C. National Identity Card: Fill in the country where the passport is issued and the passport number in the column "without Alien Resident Certificate" with a notation thatthe name of the issuance department has been added thereon.
  1. Hong Kong and Macau Residents: Fill in Hong Kong or Macau as the country name and the number of the Entry Certificate or Temporary Entry & Stay Notice as the certificate number in the column, "without Alien Resident Certificate".
  1. Mainland China Residents: Fill in Mainland China as the country and the number of the Travel Certificate or Residence Certificate as the certificate number.
  1. "Nature of Foreign Exchange Payment or Transactions":

(1)Principles:

  1. Carefully and honestly fill in the nature of the foreign exchange paymentsand transactions. If there is more than one nature, fill in each nature and each settlement amount separately.
  1. [Resident] companies, firms, organizations or individuals: Fill in the nature of the foreign exchange settlement according to the "intended use" of the foreign exchange remittance.
  1. Non-resident legal entities and natural persons: Fill in the nature of the settlement according to the "source" of the foreign exchange remittance.

(2)ImportPayments:

  1. Payments for goods clearing R.O.C. customs:

Imported: Payments for goods having cleared customs in the R.O.C.

NotImported: Pre-payments for goods which will be imported through R.O.C. customs.

  1. Special payments for goods:

If such remittance is to pay for fuel supply or purchase of samples, add the purpose of suchpayments.

(3)Payments by a company, firm or organization to non-residents for services provided by such non-residents: For payments by company, firm, organization or individual for services, such as transportation, insurance, trading commission, patent fees, triangular trade, delivery service, telecommunications service, computer based service, news, technology, visual and audio media, salary for hiring foreign employees, to non-residents, and commissions (handling fees) and interest expenditure of banks, describe the nature of such payments. For payments by individuals to non-residents for services provided by such non-residents, please fill in the nature of such exchange settlement in the column "Other Remittances".

Example:

Where a firm engages in international trade and the relevant goods are not imported through R.O.C. customs, but the payments for such goods are made within the R.O.C., the purpose if "triangular trade" and such payment shall be reported as as "Outward Remittance for Triangular Trade".

(4)Other Remittances: Withdrawal of investments and outward remittance of profits by overseas Chinese and foreigners, various investments in the R.O.C. (direct investments and investments in securities), overseas tourism, overseas visits to relatives, overseas study, various interest expenditures, repayment of foreign loans, redemption of overseas corporate bonds, redemption of overseas depositary receipts, outward remittance for family support, outward remittance as donation, outward remittance of salary income by foreigners working in Taiwan, re-purchase of foreign currency by foreigners, exchange settlement of foreign currency deposits deposited in the R.O.C. or foreign countries, please describe the purpose of such remittance.

Example:

  1. Tourism expendituresare limited to declarations made by residents when conducting overseas tourism. Non-residents who need to purchase foreign exchange shall make the Declaration according to the source of the New Taiwan Dollar funds being converted, such as salary income from teaching English or unused amount of New Taiwan Dollars converted from foreign currency.
  1. Outward remittance as direct equity investment in foreign businesses shall not be randomly declared as import payments. Such shall be declared as "Equity Investment in Foreign Country" in order to smoothly complete the investment review procedure.
  1. "Amount of Remittance": Fill in the settled foreign exchange amount or the foreign currency amount with an equivalent value in New Taiwan Dollar.
  1. "Country of Remittance": Fill in the country where the foreign exchange is actually remitted to. However:

(1)If the remittance is deposited into a domestic financial institution as foreign currency deposits or further remitted to other domestic banks, the "country of remittance" shall be filled in as "Domestic".

(2)If the remittance is remitted to a domestic OBU, the "country of remittance" shall be filled in as "Domestic OBU".

If you have any questions about the rules applicable to a declaration of foreign exchange revenues, payments or transactions, please consult the bank or make an on-line inquiry on the Website of the Central Bank of China, Website address:

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