The People's Bank of China has introduced new draft regulations concerning gold. On June 29, it was noted that the central bank, in collaboration with the General Administration of Customs, has revised the existing "Measures for the Administration of Gold and Gold Products Import and Export" to further standardize related activities, enhance trade facilitation, and improve the business environment. The revised draft, titled "Measures for the Administration of Gold and Gold Products Import and Export (Draft for Comments)," is now open for public feedback.
In its explanatory notes, the People's Bank of China stated that the original measures, implemented in 2015, have played a positive role in stabilizing the order of national gold import and export, facilitating trade, and serving the real economy. However, with socio-economic development and adjustments in relevant laws and policies, some provisions of the original rules no longer meet current management needs, necessitating this revision.
Key Changes for Individuals
A key revision is the deletion of the clause stipulating that "regulations on the management of individuals carrying gold and gold products in and out of the country shall be formulated by the People's Bank of China in conjunction with the General Administration of Customs." Instead, the draft adds a provision that individuals carrying or mailing a reasonable quantity for personal use across borders are exempt from obtaining the "People's Bank of China Gold and Gold Products Import and Export Permit" (hereafter referred to as the "Permit"), with supervision conducted by Customs.
In simpler terms, for ordinary travelers, carrying gold within reasonable personal use limits will now involve a smoother customs clearance process without needing to apply for the central bank's Permit. However, quantities exceeding personal use will still be subject to strict customs supervision.
Yuan Shuai, co-founder of the New Intelligence Faction New Quality Productivity Salon, commented that this revision represents a clear delineation of regulatory responsibilities and a practical move towards public convenience. It integrates the regulatory rules for individuals carrying or mailing reasonable amounts of gold for personal use directly into the existing management framework, eliminating the need for separate supporting rules. Previously, many travelers were unclear about the specific requirements for carrying gold, often facing clearance delays due to rule misunderstandings. The revised, unified, and clear rules significantly reduce the compliance costs for individuals and provide clear behavioral expectations.
"For the market, this adjustment can stimulate the circulation vitality of private gold consumption and collection," Yuan Shuai added. "With rising household incomes, cross-border purchases and carrying of gold jewelry, investment bars, and other products are increasing annually. Simplifying the rules aligns with current consumption trends and will not impact the overall regulatory order for gold imports and exports, as the boundary of 'reasonable personal use' is clear. It distinctly separates commercial gold import/export from personal consumption-related carrying, thereby liberalizing reasonable personal demand while maintaining regulatory safeguards."
Impact on Business Entities
It is noteworthy that China's gold import and export scale has maintained stable growth in recent years, playing a significant role in stabilizing foreign exchange reserves, meeting industrial demand, and financial market pricing. In fact, the draft also focuses on regulating the gold import and export activities of business entities like enterprises. For instance, it extends the validity period of the "one permit per batch" Permit to three months and optimizes the usage method for "non-one permit per batch" Permits.
Wu Zewei, a special researcher at Suzhou Merchant Bank, noted that the previously short validity period of the Permit imposed strong constraints on corporate logistics arrangements and customs clearance schedules. Multiple cross-cycle import/export batches required repeated permit applications, increasing administrative and time costs for enterprises. The extended validity period allows companies to plan their customs declarations and logistics more flexibly, adapting to long-cycle procurement and multi-batch clearance trade scenarios, thereby reducing compliance operational costs.
Enhanced Regulatory Requirements
Regarding regulation, the draft introduces additional requirements during qualification reviews and document submissions. These include that applicants must have "no violations of customs, foreign exchange management, taxation, anti-money laundering and counter-terrorist financing, environmental protection, and other relevant regulations in the past two years." It also states that "for the first application each year or when other aforementioned materials change, the process shall follow the initial application procedures." Furthermore, it strengthens supervision over foreign trade agency businesses and adds requirements for customs to consider the credit rating of foreign trade enterprises.
"Gold import and export are susceptible to risks such as smuggling for arbitrage, fraudulent transactions, and illegal cross-border capital flows," Wu Zewei emphasized. "Regulators need to balance facilitation with risk prevention and control, optimize access management, strengthen whole-process monitoring, combat illegal transactions, and maintain market order and financial stability."