1. Willing settlement of capital account foreign exchange income
   
   Willing settlement of capital account foreign exchange income refers to the foreign exchange income of capital account that has been clearly implemented by relevant policies (including foreign exchange capital, foreign debt funds and funds repatriated from overseas listing, etc.), which can be settled at the bank according to the actual business needs of domestic entities.
   
   While implementing the willing settlement of foreign exchange earnings under capital accounts, domestic entities may still choose to use their foreign exchange earnings in accordance with the payment settlement system. When a bank handles each foreign exchange settlement business for a domestic entity in accordance with the principle of payment settlement, it shall review the authenticity and compliance of the use of the previous foreign exchange settlement funds of the domestic institution (including willing settlement and payment settlement).
   
   
2. Use of capital account foreign exchange income willing settlement
   
   The foreign exchange income from capital accounts of domestic entities and the RMB funds from foreign exchange settlement shall follow the principle of authenticity and self-use within the scope of business and may be used for current expenditures within the scope of their own business, as well as capital expenditures permitted by laws and regulations.
   
   A domestic entity  shall comply with the following provisions in the use of its capital account foreign exchange income and the RMB funds derived from the settlement of foreign exchange:
   
   (1) It shall not be used directly or indirectly for expenditures beyond the scope of business operations of the enterprise or prohibited by national laws and regulations;
   (2) Unless otherwise provided, it shall not be used directly or indirectly for securities investment or other investment and financial management except for bank capital protection products;
   (3) It shall not be used to issue loans to non-affiliated enterprises, except where the scope of business expressly permits;
   (4) It shall not be used for construction or purchase of non-self-use real estate (except for real estate enterprises).
   
   Where there is a contractual agreement on the scope of use of capital account income between  domestic entities and other parties, the relevant funds shall not be used beyond the scope stipulated in the contract. Unless otherwise provided, contractual agreements between domestic entities and other parties shall not conflict with relevant provisions.
   
   
3. Payment of capital account income and foreign exchange settlement funds
   
   

   (1)

   When a domestic entity applies for the use of capital account income for payment, it shall truthfully provide the bank with the authenticity certification materials related to the purpose of the funds (including directly handling foreign payment from the foreign exchange settlement and payment account instead of the foreign exchange settlement and payment account, or directly handling foreign exchange payment from the foreign exchange account under the capital account);

   (2)

   If a domestic entity is unable to provide the authenticity certificate for the time being for special reasons, the bank may handle the relevant payment for it on the premise of fulfilling the due diligence obligation and confirming that the transaction has a real transaction background, and shall submit special matters to the SAFE for record through the relevant business system of the SAFE on the day of handling the business. The bank shall, within 20 working days after the payment is completed, collect and review the relevant certification materials resubmitted by the domestic institution, and report to the foreign Exchange Bureau through the relevant business system the resubmission of the authenticity certification materials for the record business of special matters.

   
   For domestic entities to use the capital account income in the name of reserve funds, the bank may not require it to provide the above-mentioned documents of authenticity. The cumulative amount paid by a single entity in the monthly reserve fund (including willing settlement and payment settlement) shall not exceed the equivalent of US $200,000.
   
   For domestic entities that apply for one-time payment and settlement of all capital account foreign exchange income or payment of all RMB funds in the settlement and payment account, if they fail to provide relevant authenticity certification materials, the bank shall not handle foreign exchange settlement and payment for them.
   For domestic entities to use the capital account income in the name of reserve funds, the bank may not require it to provide the above-mentioned documents of authenticity. The cumulative amount paid by a single entity in the monthly reserve fund (including willing settlement and payment settlement) shall not exceed the equivalent of US $200,000.
   
   For domestic entities that apply for one-time payment and settlement of all capital account foreign exchange income or payment of all RMB funds in the settlement and payment account, if they fail to provide relevant authenticity certification materials, the bank shall not handle foreign exchange settlement and payment for them.
   For domestic entities to use the capital account income in the name of reserve funds, the bank may not require it to provide the above-mentioned documents of authenticity. The cumulative amount paid by a single entity in the monthly reserve fund (including willing settlement and payment settlement) shall not exceed the equivalent of US $200,000.
   
   For domestic entities that apply for one-time payment and settlement of all capital account foreign exchange income or payment of all RMB funds in the settlement and payment account, if they fail to provide relevant authenticity certification materials, the bank shall not handle foreign exchange settlement and payment for them.
   For domestic entities to use the capital account income in the name of reserve funds, the bank may not require it to provide the above-mentioned documents of authenticity. The cumulative amount paid by a single entity in the monthly reserve fund (including willing settlement and payment settlement) shall not exceed the equivalent of US $200,000.
   
   For domestic entities that apply for one-time payment and settlement of all capital account foreign exchange income or payment of all RMB funds in the settlement and payment account, if they fail to provide relevant authenticity certification materials, the bank shall not handle foreign exchange settlement and payment for them.
   

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