The Inner Mongolia Branch of the State Administration of Foreign Exchange recently issued the Implementation Rules for the Pilot Program on High-Level Opening-up of Cross-Border Trade and revised guidelines on the facilitation of trade-related foreign exchange receipts and payments for enterprises.

The move aims to build safer, more efficient, and lower-cost payment channels for foreign trade companies, supporting the development of Inner Mongolia into an important gateway for China's opening-up to the north and promoting financial innovation in the China (Inner Mongolia) Pilot Free Trade Zone.

Under the new policy, border trade companies can offset receivables and payables with the same trading partner in neighboring countries and settle only the net amount, reducing capital occupation and exchange costs.

The cross-border trade opening-up pilot spans five cities and leagues, including Hohhot, Baotou, Ordos, Alshaa, and Chifeng, while the special policy on net settlement of border trade is valid across the entire region.

The reform package introduces seven key measures, including simplifying foreign exchange procedures for current account transactions, optimizing settlement for new forms of international trade, and expanding net settlement for trade receipts and payments.

It also includes streamlining special foreign exchange procedures, improving management of service trade payments, facilitating foreign currency salary payments for overseas employees, and simplifying procedures for multinational companies' centralized fund management.

The new measures also bring breakthroughs in enterprise access, business coverage, and banking services.

The cooperation period requirement between banks and eligible enterprises, including high-tech firms, technologically-advanced enterprises, and national manufacturing champions, has been shortened from two years to one year, allowing qualified companies to benefit from facilitation policies more quickly.