The Shanghai branch of the State Administration of Foreign Exchange launched a new function on the cross-border financial service platform for foreign exchange payments for domestic freight on April 1.

The new function connects with invoice data from the Shanghai Municipal Tax Service through a shipping and trade blockchain network, enabling automatic online verification of maritime freight invoice information and trusted mutual recognition of cross-bank foreign exchange payment data.

As an international trade and shipping center, Shanghai sees strong demand for foreign exchange payments related to domestic freight services.

Previously, companies were required to submit large volumes of invoices to banks as proof of transaction authenticity, while banks had to verify them manually, a time-consuming process that also carried risks such as duplicate use of electronic invoices and duplicate foreign exchange payments.

The new function addresses these challenges by establishing a trusted data-sharing and verification mechanism among banks, enterprises, foreign exchange authorities, and tax authorities, improving the quality and efficiency of banks' review of the trade background for such business.

On the launch day, several pilot banks completed the first batch of transactions using the new function. Bank representatives said the system enables one-stop verification of invoice authenticity and uniqueness, effectively reducing risks associated with the duplicate use of e-invoices.

Source: Xinhua