Each branch and sections of State Administration of Foreign Exchange, Sections of Administration of Foreign Exchange in Beijing and Chongqing, the branches in Dalian, Qingdao, Ningpo, Xiamen and Shenzhen:

In order to regulating the limits of authority concerning examination and approval of guaranteeing foreign bodies to observe contract, the handling principles are issued to you now and you should observe them when dealing with the affairs.

1. Legitimate and regular guarantee of foreign bodies to observe contract should be examined and approved by the local branch according to the regulations and the dependency principle settled down in the locality and at the same time copy and report the contents of the examination and approval to State Administration of Foreign Exchange to be put on file.

2. The guarantee of foreign bodies to observe contract with the substantial disobedience to the regulations (means that a guarantor's guarantee action for a foreign body ought to be approved by an administration of foreign exchange, but the guarantor is not approved before signing the guarantee contract) should be examined primarily by the local branch of State Administration of Foreign Exchange and then report State Administration of Foreign Exchange to examine and approve.

3. The guarantee of foreign bodies to observe contract with the procedural disobedience to the regulations(only limited to that a guarantor's guarantee action for a foreign body has already been approved by an unit of administration of foreign exchange or needs no approval, but fails to register at an administration of foreign exchange according to the regulations)should be examined and approved after a relevant penalty referencing to the circumstance of the disobedience by the local branch of State Administration of Foreign Exchange, and at the same time report the penalty and the examination and approval of the guarantee to State Administration of Foreign Exchange to examine and approve and to be put on file.