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Supplementary Agreement No 3 to Macao/Mainland Closer Economic Partnership Arrangement
Promulgation Date:2006-06-26  Promulgation Number:  Promulgation Department:The Ministry of Commerce
Supplementary Agreement No 3 to Macao/Mainland Closer Economic Partnership Arrangement The Ministry of Commerce June 26, 2006 For the purpose of further enhancing the level of economic and trade exchanges and cooperation between the Mainland (which refers to all the tariff territory of the People's Republic of China in CEPA) and Macao SAR (hereinafter referred to as "Macao"), and in accordance with the Mainland and Macao Closer Economic Partnership Arrangement (hereinafter referred to as "CEPA") signed on October 17, 2003, the Supplementary Agreement to CEPA as signed on October 29, 2004 as well as the Supplementary Agreement No. 2 to CEPA as signed on October 21, 2005, two sides agreed to sign the present Supplementary Agreement to further expand the trade in services in the Mainland for Macao and to enhance the cooperation between two sides in the field of trade and investment facilitation. 1. Trade in Services (1) The market access requirements shall be further relaxed by the Mainland as of January 1, 2007 in the fields of law, construction, exhibition, audio and video, distribution, tourism, transportation and individual industry and commerce on the basis of the commitments to open the trade in services in CEPA, the Supplementary Agreement to CEPA, and the Supplementary Agreement NO. 2 to CEPA. Specific contents are stated in the Appendixes of the present Agreement. (2) The present Agreement Appendixes supply and amend Table 1 of Appendix 4 of CEPA (The Mainland's Specific Commitments for Opening the Trade in Services to Macao), Appendix 3 of the Supplementary Agreement to CEPA (The Supplement and Amendment to the Mainland's Specific Commitments for Opening the Trade in Services to Macao) and Appendix 2 of the Supplementary Agreement No. 2 to CEPA (The Supplement and Amendment No. 2 to the Mainland's Specific Commitments for Opening the Trade in Services to Macao). In the case of any conflict between the provisions of the above-mentioned three instruments, the provisions in the present Agreement Appendixes shall prevail. (3) Service suppliers as referred to in the present Agreement Appendixes shall meet the related requirements as provided for in Appendix 5 of "CEPA" (Definition of Service Supplier and Relevant Requirements). 2. Trade and Investment Facilitation (1) For the purpose of supporting and coordinating appropriate diversity of Macao industrial structure and promoting the exhibition industrial development of two sides, two sides have agreed unanimously to complementally incorporate the exhibition industry cooperation into the field of trade and investment facilitation in CEPA, and accordingly, Article 9 in the CEPA Appendix 6 is amended as: "Two sides have realized that the reinforcement of industrial cooperation and exchanges will be beneficial to the industry as well as the whole social and economic development of two sides in accordance with the principle of complementary strengths. And two sides will implement cooperation in Chinese medicine industry and exhibition industry, and are also considering to implement special cooperation in other industries at an appropriate time." (2) For the purpose of promoting the two sides cooperation in the field of intellectual property protection, two sides have agreed unanimously to incorporate the intellectual property protection into the field of trade and investment facilitation in CEPA, and accordingly: a. Paragraph 1 of Article 17 of CEPA shall be amended as: "(1) Two sides will promote cooperation in areas as follows: (a) trade and investment promotion; (b) customs facilitation; (c) commodity inspection, inspection and quarantine of animals and plants, food security, health quarantine, certification and standardization management; (d) electronic commerce; (e) transparency in laws and regulations; (f) small and medium-sized enterprises cooperation; (g) industrial cooperation; and (h) intellectual property protection." b. Article 2 of the CEPA Appendix 6 shall be amended as: "II. Two sides consent to implement the cooperation of trade and investment facilitation in such eight fields as trade and investment promotion, customs facilitation, commodity inspection, inspection and quarantine of animals and plants, food safety, health quarantine, certification and standardization management, electronic commerce, transparency in laws and regulations, small and medium-sized enterprise cooperation, industrial cooperation, and intellectual property protection. And the related cooperation shall be implemented under the guidance and coordination of the joint guidance committee established under Article 19 of CEPA." c. One article shall be added to CEPA Appendix 6 as Article 10, and the sequential numbers of the following articles shall be changed accordingly. The Article 10 shall be: "X. Intellectual Property Protection Two sides have realized that the reinforcement of intellectual property protection has an reaching importance for promoting economic development of two sides as well as the economic trade exchanges and cooperation of two sides, and consent to enhance the cooperation in the field of intellectual property protection. (1) Cooperation Mechanism The cooperation of two sides in the field of intellectual property protection shall be enhanced through the cooperation mechanism between the governments of two sides. (2) Contents of Cooperation Two sides consent to enhance the cooperation in the areas as follows: (a) conducting exchanges and communications of the information concerning intellectual property protection through the establishment of a mediation center for protecting intellectual property in Macao; (b) exchanging information in respect of the formulation and implementation of laws and regulations concerning protecting intellectual property; (c) sharing materials and information concerning intellectual property protection through implementing inspections, holding seminars, publishing related publications or other ways; and (d) implementing consultations for the matters derived from intellectual property protection." 3. Appendixes The Appendixes of the present Agreement form an integral part of the present Agreement. 4. Entry into Force The present Agreement shall enter into force as from the signature date by the representatives of two sides. Done in Chinese in duplicate. Signed in Macao on June 26, 2006. Mr. Liao Xiaoqi (signature) Vice Minister of the Ministry of Commerce of the People's Republic of China Mr. Tam Pak Yuen (Signature) Secretary for the Economy and Finance of Macao SAR of the People's Republic of China Appendix

 

Appendix:

Supplement and Amendment No. 3 to the Mainland’s Specific Commitments for Opening the Trade in Service to Macao

 

  (The category of service sectors (GNS/W/120) as prescribed in the General Agreement on Trade in Services of the WTO shall apply to the category of service sectors herein. The corresponding classification of central products by the United Nations (CPC, United Nations Provisional Central Product Classification) shall be referred to for the contents of the sectors).

Sector or sub-sector

1. Business services

 A. Specialized services

  a. Legal services (CPC861)

Specific commitments

1.In the law offices within the Mainland that conduct joint business with those in Macao, there is no requirement for the number of full-time lawyers.

2. There is no requirement for the time of residence of the representatives of Macao law offices stationed in Mainland representative offices.

3. Any Macao resident having obtained the qualification of Mainland lawyers or legal profession as well as the lawyer’s practicing license is allowed to act as an agent of Macao-related marriage and inheritance cases with the identity of Mainland lawyers.

4. With the identity of a citizen, any Macao lawyer is allowed to act as an agent of Mainland civil cases.

 

Sector or sub-sector

1. Business services

 A. Specialized services

  Project cost advisory services

Specific commitments

1.Any Macao service supplier is allowed for the establishment of a solely-funded project cost advisory enterprise.

2. The performances of a Macao service supplier in Macao and Mainland can jointly be the basis for the assessment of its application qualification for establishing project cost advisory enterprises within the Mainland.

 

Sector or sub-sector

1. Business services

 F. Other business services

  Conference and exhibition services (CPC87909)

Specific commitments

Macao service suppliers are allowed to establish solely-funded enterprises, contractual and equity joint ventures within the Mainland for providing exhibition services in Macao and Hong Kong.

 

Sector or sub-sector

2. Telecommunication services

 D. Audiovisual services

  Services of videotape distribution(CPC83202), and services of audio products distribution

  Services of cinema

  Films in Chinese and films as produced cooperatively

  Cable TV technical services

  TV plays produced cooperatively

  Others

Specific commitments

The State Administration of Radio, Film and Television will transfer the power to examine the completed domestic teleplays produced by the entities affiliated to the province, autonomous region or municipality directly under the Central Government and participated in by Macao acting and administrative staff to the provincial administrative department of radio, film and television.

 

Sector or sub-sector

4. Distribution services

 A. Commission agency services (excluding salt and tobacco)

 B. Wholesale services (excluding salt and tobacco)

 C. Retail services (excluding tobacco)

 D. Franchising

Specific commitments

Where a Macao service supplier has set up more than 30 stores in the Mainland accumulatively, and engaged in the business of books, newspapers, magazines, medicine, pesticide, farming film, fertilizer, grain, edible oil, sugar, cotton, etc. that have different trademarks and are provided by different suppliers, the Macao service supplier is allowed to hold a controlling amount of shares and make less than 65% of contributions. ( If the Macao service supplier engages in refined oil, it shall be handled in accordance with the commitments made to WTO members by the Mainland.)

 

Sector or sub-sector

9. Tourism and relevant services

 A. Hotels (including apartments) and restaurants (CPC641-643)

 B. Travel agencies and tour operators (CPC7471)

 C. Others

Specific commitments

A Macao solely-funded or joint venture travel agency in Guangdong Province is allowed to make application for engaging in team travel services for Guangdong residents (residents with the official residence of Guangdong Province) to Macao and Hong Kong.

 

Sector or sub-sector

11. Transport services

 C. Air transport services

  Airport management services (excluding the loading and unloading of goods) (CPC74610)

  Other supporting services for air transport (CPC74690)

  Sales of air services and marketing services

Specific commitments

A Macao aviation sales agent is allowed to set up solely-funded air transport sales agency enterprises in the Mainland subject to the same requirement of registered capital as that for Mainland enterprises.

 

Sector or sub-sector

11. Transport services

 F. Highway transport services

  Highway transport by truck and automobile (CPC7123)

  Highway passenger transport (CPC7121,7122)

  Highway freight transport station (field)

  Vehicle maintenance

Specific commitments

A Macao service supplier is allowed to set up solely-funded enterprises in the Mainland for conducting the following highway transport services:

Highway freight transport station (field); and Vehicle maintenance

 

Sector or sub-sector

Any sector that hasn’t been listed in the category of service sector(GNS/W/120)

 Individual industrial and commercial household

Specific commitments

A Macao permanent resident with Chinese citizenship is allowed to establish an individual industrial and commercial household in any province, autonomous region, or municipality directly under the Central Government in the Mainland under the relevant laws, regulations and administrative rules, and is not subject to the examination and approval for foreign investment. The relevant business scope covers farming, husbandry, aquaculture, computer repair services, and promotion and exchange of science and technology, but does not cover any franchise operation. The practitioners thereof shall not be more than 8 persons.

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