Case Study
A traveler using an Exit-Entry Permit for Travelling to and from Hong Kong and Macao was intercepted by Customs officers while exiting through the “Nothing to Declare Channel”at a border checkpoint. An inspection revealed the traveler was concealing HK$200,000 bound to his abdomen. It was also found that the individual had made multiple exits within the preceding 15 days, and this was his first exit on that particular day. Customs officers permitted HK$8,000 to be carried out, in line with regulations, while the excess amount of HK$192,000 was detained. During the subsequent investigation, the traveler admitted that the HK$200,000 intended for carrying to exit the territory was not covered by the required Permit for Carrying Foreign Exchanges to Exit the Territory (hereinafter referred to as Permit for Carrying Foreign Exchanges) and that the purpose was to profit from exchange rate differences. The traveler also acknowledged being aware of the regulations and declaration requirements for carrying currency out but had chosen not to declare it. Customs imposed an administrative penalty to the traveler and confiscated the excess HK$192,000.
Regulatory Analysis
What is the limit for carrying Renminbi (RMB) when entering or leaving China?
In accordance with the Provisions of the People’s Republic of China Governing the National Money Entering or Leaving the Country, and Announcement No. 18. [2004] of the People's Bank of China (on Adjusting the Limit for Carrying the National Money Entering or Leaving the Country), both Chinese citizens exiting or entering the country and foreigners entering or exiting are permitted to carry a maximum of RMB 20,000 per person per trip. Those carrying RMB exceeding this limit when entering or leaving China must declare it to Customs truthfully as stipulated by state regulations. It is prohibited to send RMB in or out via postal mail or to transport RMB across the border without authorization. Violations of the above-mentioned regulations, will be dealt with by Customs according to law; if the circumstances are serious and considered a criminal offense, the judicial authorities shall initiate criminal proceedings in accordance with the law.
What are the restrictions on carrying foreign currency cash when entering or leaving China?
According to the Interim Measures for Administration of Carrying Foreign Currency Cash into and out of China, there is no limit on the amount of foreign currency cash that incoming travelers may bring into the country. However, amounts exceeding USD 5,000 (or its equivalent) must be declared to Customs in writing.
For outbound travelers carrying foreign currency cash, if the amount does not exceed the amount declared upon their most recent entry into China, a Permit for Carrying Foreign Exchanges is not required. Customs shall clear the amount based on the travelers’ most recent inbound declaration records for foreign currency cash. If there is no such record, or if the amount of such foreign currency cash exceeds the last declared value, the following procedures apply: 1. If the amount carried out by the outbound travelers does not exceed USD 5,000 equivalent (inclusive), no Permit for Carrying Foreign Exchanges is required, and Customs shall grant clearance. This exemption does not apply to same-day or short-term frequent travelers. 2. If the amount carried out by the outbound travelers exceeds USD 5,000 equivalent but does not exceed USD 10,000 equivalent (inclusive), a Permit for Carrying Foreign Exchanges must be obtained from a bank. Upon exit, Customs shall clear the currency after verifying the bank-stamped Permit for Carrying Foreign Exchanges. If multiple Permits for Carrying Foreign Exchanges are presented and the cumulative total of these bank-stamped Permits for Carrying Foreign Exchanges exceeds USD 10,000 equivalent, Customs shall deny clearance. 3. If the amount carried out by outbound travelers exceeds USD 10,000 equivalent, a Permit for Carrying Foreign Exchanges must be obtained from the local branch of the State Administration of Foreign Exchange (SAFE) where the depositing or foreign exchange-purchasing bank is located. Customs shall clear the funds after verifying the SAFE-stamped Permit for Carrying Foreign Exchanges.
Can the equivalent of USD 5,000 in foreign currency be carried on each entry or exit of China?
According to the Interim Measures for Administration of Carrying Foreign Currency Cash into and out of China, individuals classified as “same-day frequent travelers” or “short-term frequent travelers” are not always permitted to carry the equivalent of USD 5,000 foreign currency cash on every entry or exit.
For same-day frequent travelers entering or leaving China, a written declaration of foreign currency cash must be made to Customs upon entry. Customs shall verify the amount of foreign currency cash against the declaration record from the most recent entry of such travelers upon exit. If there is no valid declaration record or the amount of foreign currency cash exceeds the last declared entry value, a maximum of USD 5,000 equivalent (inclusive) foreign currency cash may be carried out without a Permit for Carrying Foreign Exchanges on the first exit of the day, and Customs shall grant clearance. However, amounts exceeding this limit will not be permitted. On the second and subsequent exits of the same day, a maximum of USD 500 equivalent (inclusive) foreign currency cash may be carried out without a Permit for Carrying Foreign Exchanges, and Customs shall grant clearance, but amounts exceeding USD 500 equivalent will not be permitted.
For short-term frequent travelers entering or leaving China, a written declaration of foreign currency cash must be made to Customs upon their entry. When they exit, Customs shall verify the amount of foreign currency cash against the declaration record from their most recent entry. If there is no valid declaration record or the amount of foreign currency cash exceeds the last declared entry value, a maximum of USD 5,000 equivalent (inclusive) may be carried out without a Permit for Carrying Foreign Exchanges on the first exit within the 15-day period, and Customs shall grant clearance. However, amounts exceeding this limit will not be permitted. On the second and subsequent exits within the 15-day period, a maximum of USD 1,000 equivalent (inclusive) may be carried out without a Permit for Carrying Foreign Exchanges, and Customs shall grant clearance, but amounts exceeding USD 1,000 equivalent will not be permitted.
