New regulations released by SAFE promoting cross-border IPR

On 24 July 2013, State Administration of Foreign Exchange (SAFE) released Guidelines for Foreign Exchange Administration of Trade in Service (Guideline) and its implementation rules, The Detailed Rules for Implementing Guidelines for Foreign Exchange Administration of Trade in Service (Implementation Rules), both of which took effect on 1 September 2013.

There are many facets surrounding foreign exchange, but we have looked specifically into these new rules to see how they will affect cross-border IP transactions such as payment for trademark licensing or import/export technologies.

In summary, the Guideline and the Implementation Rules simplify the documentation requirements for transferring royalty payments outside China generally and if the amount of the transaction is equal to or below $50,000 (£32,000) the requirements are even less…

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