天美九一厂制作

Chapter I  General Provisions

    Article 1 For the purposes of establishing fundamental management principles and defining the nature of factoring business and promoting its disciplined, healthy and orderly development, these Norms are formulated in accordance with the Contract Law of the People’s Republic of China, the Real Right Law of the People’s Republic of China, the Banking Regulation Law of the People’s Republic of China, Law of the People’s Republic of China on Commercial Banks and other relevant laws, rules and regulations as well as domestic and international practices.

    Article 2 These Norms shall apply to the banking institutions within the territory of the People’s Republic of China that are established and engaged in factoring business upon approval by the banking regulatory authority under the State Council.

    Article 3 Banks shall observe the following principles in handling factoring business:  

    (1) Complying with relevant laws, rules and regulations of the State;
    (2) Complying with international practices such as General Rules for International Factoring;
    (3) Maintaining a proper balance between business development and risk management;
    (4) Maintaining a proper balance between cooperation and competition with peers.

Chapter II Definition, Features and Classification

    Article 4 Definitions
    (1) Account receivable
    For the purpose of these Norms, account receivable means the right of the creditor (the “Seller”) to demand payment from the debtor (the “Buyer”) for supply of goods, services or facilities, including current and future monetary claims and their proceeds, but excluding the right to demand payment arising from notes or other marketable securities.
    For the purpose of these Norms, account receivable shall include the following:
    (a) Debt arising from sales, including sale of goods, supply of water, electricity, gas and heating and licensing of intellectual property;
    (b) Debt arising from leasing of personal or real property;
    (c) Debt arising from provision of services;
    (d) Tolls on real property including highways, bridges, tunnels and ferries;
    (e) Others.
    (2) Factoring
    Factoring, based upon the seller’s assignment of its accounts receivable, is a comprehensive financial service which combines financing, collection and accounts receivable administration and protection against bad debts. The seller assigns its accounts receivable to the bank, whether or not for the purpose of finance, for at least one of the following services:
    (a) Collection of accounts receivable: The bank demands payment from the buyer, proactively or upon request by the seller, by means of telephone, dunning letter, door-to-door collection and legal proceedings.
    (b) Management of accounts receivable: The bank, upon request by the seller, provides the seller with information on collection of accounts receivable and overdue accounts, reconciliation statements and other financial and statistic statements, on a regular or ad-hoc basis, thereby assisting the seller in managing accounts receivable.
    (c) Protection against bad debts: After the seller and the bank enter into a factoring agreement, the bank grants the buyer a credit line and makes payment under guarantee as agreed within the approved credit line for the seller’s accounts receivable free and clear of commercial disputes.

    Article 5 Factoring has the following features:
    (1) The bank acquires direct claim against the buyer by becoming the assignee of the seller's accounts receivable;
    (2) The first source of repayment for factoring finance is payment of accounts receivable by the buyer;
    (3) The bank continuously tracks, assesses and examines payment activity and records of the buyer for timely risk detection so as to mitigate its own risks;
    (4) Protection against bad debts is a conditional payment commitment by the bank.

    Article 6 Classification of factoring
    (1) International factoring and domestic factoring
    Factoring is classified as international factoring and domestic factoring by nature of the underlying transaction and locations of the seller and the buyer. Under domestic factoring, both the seller and the buyer are in the same country. Under international factoring, either the seller or the buyer is in a foreign country.
    (2) Recourse factoring and non-recourse factoring
    Factoring is classified as recourse factoring and non-recourse factoring based on whether the bank may reassign accounts receivable to the seller or request the seller to repurchase accounts receivable or repay finance when the buyer goes bankrupt or is unable to pay accounts receivable or defaults on payment of accounts receivable.
    Under recourse factoring, the bank may reassign accounts receivable to the seller or request the seller to repurchase accounts receivable or repay finance when the bank is unable to collect accounts receivable from the buyer upon maturity. Recourse factoring is also called “Repurchase Factoring”.
    Under non-recourse factoring, the bank bears the risk of bad debts arising from the buyer’s inability to pay accounts receivable which is free and clear of any commercial disputes. Non-recourse factoring is also called “Buyout Factoring”.
    (3) Disclosed and undisclosed factoring
    Factoring is classified as disclosed factoring and undisclosed factoring based on whether the buyer is notified of the assignment of accounts receivable.
    Under disclosed factoring, assignment of accounts receivable is disclosed to the buyer in ways including but not limited to sending the buyer an introductory letter in the format defined by the bank or adding onto the invoice an assignment clause in the format defined by the bank .
    Under undisclosed factoring, assignment of accounts receivable is temporarily kept secret from the buyer but the bank reserves the right to notify the buyer of the assignment under certain conditions.

Chapter III Internal Management Requirements of Banks

    Article 7 Banks shall, in line with their development strategy and scale of business, set up separate factoring department or team which shall be responsible for formulation of factoring regulations, product development and promotion, business operation and management. Banks shall allocate appropriate resources to support factoring business.

    Article 8 Banks engaged in factoring business shall employ staff with factoring know-how and set up posts encompassing the following functions: business management, product development and promotion, risk control, marketing, operation, etc.

    Article 9 Banks shall actively organize factoring staff to receive training, including training programs provided by the Factors Chain International and the  Factors Association of China. Banks shall examine and assess the professional competence of their factoring staff.

    Article 10 Banks shall establish standard business management measures and operating procedures in line with their specific conditions.
    (1) Business management measures shall at least include:
    (a) Scope of business: Banks shall define their factoring products in accordance with these Norms and formulate a proper scope of business.
    (b) Organizational structure: Banks shall specify relevant department responsible for factoring, define its duties and grant to such department relatively independent management authority.
    (c) Client selection: Banks shall develop proper client selection criteria in line with the features of factoring.
    (d) Receivables criteria: Banks shall develop criteria for accounts receivable eligible for factoring, including but not limited to payment terms, payment conditions and the underlying transaction , etc.
    (e) Credit assessment and approval: Banks shall formulate specific credit policy, assessment criteria and draw-down conditions for factoring which shall be different from those of working capital loans. Banks may offer a credit line to the buyer without signing a credit agreement with the buyer.
    (f) Risk management of correspondents: Banks shall manage the risks of partner banks, factoring companies and insurance companies.
    (g) Post-credit management: Banks shall formulate specific post-credit management policy, including close monitoring of the performance risk of the seller and the buyer, underlying transaction, collection of accounts receivable, etc.
    (h) Fees and interest rates: Banks shall determine factoring fees and interest rates taking into consideration of business cost, risk exposure and reasonable profit. Interest rate for international factoring finance may be determined by considering banks’ internal fund transfer pricing plus a margin. The minimum interest rate for domestic factoring finance shall be the discount rate of bank acceptance draft.
    (2) Operating procedures for factoring shall at least include:
    (a) Business acceptance.
    (b) Credit line application and approval.
    (c) Signing of factoring agreement: Banks shall sign factoring agreement with the seller. Banks may not sign credit agreement with the buyer. 
    (d) Examining underlying transaction.
    (e) Assignment of accounts receivable and notification of the buyer: With the exception of order approval, the seller shall, in principle, be required to assign to banks all accounts receivable related to a specific buyer.
    (f) Credit line management: Including approval, utilization, amendment, freeze and cancellation of credit lines for the seller and the buyer.
    (g) Finance.
    (h) Administration and collection of accounts receivable.
    (i) Collection and payment of fees and charges.
    (j) Settlement of specific issues such as credit note, commercial dispute, indirect payment and payment under guarantee.
    (k) Accounting.

    Article 11 Banks shall determine whether to register assignment under factoring with the PBOC Accounts Receivable Pledge Registration System in accordance with internal management requirements.

    Article 12 Banks shall establish an electronic operation and management system to achieve the following objectives:
    (a) Uniform management process: Banks shall establish uniform business standards to ensure real-time monitoring of parameter structure, safety and control maintenance, limit control and operating procedures, keep abreast of operational developments and facilitate regular review and examination of operations.
    (b) Early warning and supervision: Banks shall manage ledger accounts and give early warning to abnormalities.
    (c) Business data storage: Banks shall provide data backup to ensure safety of data in storage. The storage period shall be at least five years. Data in storage shall be available upon request for statistics, management and other purposes.

Chapter IV Statistics and Information Disclosure

    Article 13 Banks shall make business statistics properly and submit transaction data promptly as required by regulators.

    Article 14 Disclosure in the Corporate Credit Information System of PBOC (CCIS): The finance information under recourse factoring shall be registered in the credit information of the seller in CCIS  . There is no need to register in CCIS for non-recourse factoring. Banks’ approval of the credit line of the buyer shall not be registered in the credit information of the buyer in CCIS. Banks’ payment under guarantee or bad debt under factoring shall be registered in the credit information of either the seller or buyer depending on the nature of risk.

Chapter V Supplementary Provisions

    Article 15 Banks shall formulate relevant business regulations and implementation procedures in accordance with these Norms. Other institutions engaged in factoring may also use these Norms as a reference for conducting their business.

    Article 16 When new foreign exchange administration rules and regulations   related to factoring are promulgated, banks shall follow these new rules and regulations.  

    Article 17 These Norms are formulated and subject to interpretation by the  Factors Association of China.

    Article 18 These Norms shall enter into force on the date of promulgation.