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Supplementary Agreement IV on Hong Kong/Mainland Closer Economic Partnership Arrangement
Promulgation Date:2007-06-29  Promulgation Number:  Promulgation Department:The Ministry of Commerce
Supplementary Agreement IV on Hong Kong/Mainland Closer Economic Partnership Arrangement In order to further enhance economic and trade exchanges and cooperation between the Mainland ① (Note: The Mainland refers to all the tariff territory of the People's Republic of China) and Hong Kong Special Administrative Region (hereinafter referred to as "Hong Kong"), and pursuant to Hong Kong/Mainland Closer Economic Partnership Arrangement (hereinafter referred to as "CEPA") signed on June 29, 2003 and its Annexes signed on September 29, 2003, the Supplementary Agreement on the CEPA signed on October 27, 2004, the Supplementary Agreement II on the CEPA signed on October 18,2005, as well as the Supplementary Agreement III on the CEPA signed on June 27, 2006, both parties agreed to sign this Supplementary Agreement with regard to the mainland's extending opening and strengthening financial cooperation, facilitating trade investment and promoting the mutual recognition of professional qualification in the field of trade in services. 1. Trade in Services (1) From January 1, 2008, the Mainland shall, on the basis of the commitments of opening trade in services in the CEPA, the Supplementary Agreement on the CEPA, the Supplementary Agreement II on the CEPA, the Supplementary Agreement III on the CEPA, further loosen market access in 28 fields such as law, medical treatment, computer and the relevant services, real estate, market research, the services relating to management consultation, public utilities, talent agent, building cleaning service, photography, printing, translation and interpretation, exhibition, telecommunication, audiovisual service, distribution, environment, insurance, banking, securities, social service, tourism, entertainment, sport, marine transportation, air transportation, highway transportation and individual business. The concrete content has been written in the Annex to the CEPA. (2) The Annexes to this Agreement are supplements and amendments to Table 1 of Annex 4 to the CEPA - "The Mainland's Specific Commitments for Opening the Trade in Services to Hong Kong", Annex 3 to the Supplementary Agreement on the CEPA - "The Supplement and Amendment to the Mainland's Specific Commitments for Opening the Trade in Services to Hong Kong" and Annex 2 to the Supplementary Agreement II on the CEPA - "The Supplement and Amendment II to the Mainland's Specific Commitments for Opening the Trade in Services to Hong Kong". In the event that the Annex herein runs counter to the provisions of the aforesaid four provisions, the Annexes to this Agreement shall prevail. (3) The "service suppliers" as mentioned in the Annexes to this Agreement shall comply with the relevant requirements of Annex 5 to "CEPA" - "Definition of ‘Service Supplier' and Related Requirements", where: (a) The business time limit of such banks or financial companies in Hong Kong as are engaged in substantial business shall be loosened. The particulars concerning banks in Hong Kong or financial companies in Item (2), Paragraph 1 (2), Article 3 in Appendix V (Definition of "service supplier" and the Relevant Provisions in CEPA shall be altered as follows: the Hong Kong service suppliers which provide banking and other financial services (excluding insurance and securities), i.e. banks or financial companies in Hong Kong shall, after having obtained relevant licenses from Hong Kong Monetary Authority in accordance with Banking Ordinance, be engaged in substantial business for no less than five years, or operate for two years in the form of branch and be engaged in substantial business for no less than three years by means of registration in local region. (b) The following particulars shall be added to Item (2), Paragraph (1) 2 in Article 3 under Definition of "service supplier" and the Relevant Provisions in CEPA: the Hong Kong service supplier which provide international shipping agent service to the third party shall have registered in Hong Kong and be engaged in substantial business service for no less than five years. 2. Financial Cooperation Both parties shall take the following measures to further strengthen cooperation in financial field: (1) to actively support Mainland banks to establish branches in Hong Kong. (2) to establish green channel in a bid to help banks in Hong Kong establish branches in the middle and western region, northeast region and Guangdong province. (3) to encourage banks in Hong Kong to establish banks in rural areas in the Mainland. 3. Facilitation of Trade Investment Both parties shall take the following measures to further enhance cooperation in the field of exhibition: the Mainland shall support and coordinate with Hong Kong to hold large international conferences and exhibitions. 4. Mutual Recognition of Professional Qualification Both parties shall take the following measures to further promote the mutual recognition of professional qualification: (1) The competent authorities or industry institutions to both parties shall embark on the exchange of mutual recognition of the qualifications of Investigation & Design Registered Electrical Engineer, Investigation & Design Registered Public Utility Engineer, and carry out technical exchange concerning Investigation & Design Registered Civil Engineer (rock and soil) and mapping. (2) Both parties shall establish a functional group in a bid to research and advance the registration and practice after the mutual recognition of professional qualification in architecture field. 5. Annex The Annex hereto shall be a part of this Agreement. 6. Entry into Force This Agreement shall enter into force as of the date of signature by the representatives of both parties. Done in Chinese in duplicate. Signed in Hong Kong on June 29, 2007. Vice Minister of the Ministry of Commerce of People's Republic of China Secretary for Economy and Finance of Hong Kong Special Administrative Region of the People's Republic of China Annex

 

Annex:

Supplementary Agreement IV on Hong Kong/Mainland Closer Economic Partnership Arrangement①

 

(Note: Service sector classification of WTO General Agreement on Trade in Services, GATS (GNS/W/120) is employed in sectors classification, and the corresponding CPC, United Nations Provisional Central Product Classification is referred with regard to the content of sectors.)

Sector or subsector

1. Business service

  A. Professional service

    a. Legal service(CPC861)

Concrete commitment

A Hong Kong law office, which has established a representative office in the Mainland, shall be allowed to jointly operate with a law office in the Mainland.

No regional limit may be set to the joint Mainland law office herein.

 

Sector or subsector

1. Business service

  A. Professional service

    h. Medical treatment and dentist (CPC9312)

Concrete commitment

1. The requirement of overall investment amount with regard to Hong Kong service supplier's establishment of joint venture and contractual medical institution shall be reduced from not less than 20 million yuan to not less than 10 million yuan.

2. Where a Hong Kong service supplier who has obtained Certification of Practicing Physician of the Mainland establishes an individual clinic in the Mainland, it shall be allowed to handle it herein pursuant to the conditions for the Mainland practicing physicians to establish individual clinics①. (Note: It shall be subject to the examination and approval of the provincial public health administrative authority in the Mainland.)

 

Sector or subsector

1. Business service

  B. Computer and the relevant services

    b. Software implementation service(CPC842)

    c. Data treatment service(CPC843)

Concrete commitment

1. Hong Kong service suppliers shall be allowed to establish solely-funded enterprises in the Mainland to provide software implementation service.

2. Hong Kong service suppliers shall be allowed to establish solely-funded enterprises in the Mainland to provide data treatment service.

 

Sector or subsector

1. Business service

  D. Real estate service

    Habitation or inhabitation real estate management service on the basis of charge or contract (CPC82201, 82202)

Concrete commitment

    The construction area of property taken by a Hong Kong service supplier in Hong Kong and the Mainland shall be deemed as the proof to assess its application for the qualification of enterprise property management in the Mainland.

 

Sector or subsector

1. Business service

  F. Other business services

    b. Market investigation service(CPC86401)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish joint venture enterprises in the Mainland to provide market investigation service.

 

Sector or subsector

1. Business service

  F. Other business services

    d. Services relating to management consultation(CPC8660)

    Project management service except construction(CPC86601)

Concrete commitment

    1. Hong Kong service suppliers shall be allowed to provide project management service (except construction) relating to management consultation be means of cross-border delivery.

    2. Hong Kong service suppliers shall be allowed to establish solely-funded enterprises in the Mainland to provide project management service except construction relating to management consultation.

 

Sector or subsector

1. Business service

  F. Other business services

    Public utility service

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded enterprises in the Mainland and participate in the construction and operation of gas, thermal power, water supply and drainage pipe network of middle-size cities in the Mainland.

 

Sector or subsector

1. Business service

  F. Other business services

  k. Personnel supply and arrangement service(CPC872)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded talent agents in the Mainland.

 

Sector or subsector

1. Business service

  F. Other business services

    o. Building cleaning service(CPC874)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded enterprises to provide building cleaning service.

 

Sector or subsector

1. Business service

  F. Other business service

    p. Photography service(CPC875)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded enterprises to provide photography service.

 

Sector or subsector

1. Business service

  F. Other business services

    r. Printing and publishing service

Concrete commitment

    1. Hong Kong service suppliers shall be allowed to establish solely-funded enterprises to undertake publication and other presswork service. The shareholders held by Hong Kong service suppliers may not exceed 49%.

    2. Hong Kong service suppliers shall be allowed to establish solely-funded enterprises to print and bind package and decoration publication.

 

Sector or subsector

1. Business service

  F. Other business services

    Translation and interpretation service(CPC87905)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded enterprises to provide translation and interpretation service.

 

Sector or subsector

1. Business service

  F. Other business services

    Conference and exhibition service(CPC87909)

Concrete commitment

    1. Hong Kong service suppliers shall be allowed to hold pilot exhibition in Guangdong province and Shanghai Municipality by means of cross-border delivery①. (Note: It shall be submitted to the Ministry of Commerce for examination and approval pursuant to the current laws and rules of the Mainland.)

    2. Hong Kong service suppliers shall be allowed to establish solely-funded, equity joint or contractual joint ventures to operate pilot abroad exhibition service② (Note: It shall be submitted to China Council for the Promotion of International Trade for examination and approval pursuant to the current laws and rules of the Mainland.), and the enterprises participant in the exhibition shall have been registered in the relevant provinces or cities.

 

Sector or subsector

2. Telecommunication service

  C. Telecommunication service

    Value-added telecommunication service

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish equity joint ventures in the Mainland to provide visual private network service under Telecommunication Service Classification Catalogue in the Mainland without regional limitation. The shares held by Hong Kong service suppliers may not exceed 50%.

 

Sector or subsector

2. Telecommunication service

  D. Audiovisual service

    Video distribution service (CPC83202), audiovisual product distribution service

    Theater service

    Chinese language movie and joint production movie

    Cable television technology service

    Jointly shooting teleplays

    Others

Concrete commitment

    The itemed Series view jointly produced by the Mainland and Hong Kong     shall be adjusted to be not less than 1,500 characters per piece.

 

Sector or subsector

4. Distribution service

    A. Commission agent service (excluding salt and tobacco)

    B. Wholesale service (excluding salt and tobacco)

    C. Retail service (excluding salt and tobacco)

    D. Chartered operation

Concrete commitment

    Where a same Hong Kong service supplier has established more than 50 stores in the Mainland, if the commodities herein include medicine, pesticide, mulching films, fertilizer, plant oil, edible sugar, cotton and etc., and the aforesaid products belong to different brands and come from different suppliers, the Hong Kong service supplier herein shall be allowed to hold shares hereof and the proportion may not exceed 65%①. (Note: If the commodity herein is finished product oil, it shall be dealt with pursuant to the Mainland's commitment to World Trade Organization members.)

 

Sector or subsector

6. Environment service

(excluding environment quality survey and pollution source investigation)

    A. Pollution discharge service (CPC9401)

    B. Solid refuse treatment service (CPC9402)

    C. Pollution gas cleaning service (CPC9404)

    D. Noise reduction service (CPC9405)

    E. Nature and scenery protection service (CPC9406)

    F. Other environment protection services(CPC9409)

    G. Sanitation service  (CPC9403)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded enterprises and to provide environmental service.

 

Sector or subsector

7. Financial service

  A. All the insurance and relevant services

    a. Life insurance, health insurance and retirement pension/annuity 

    b. Non-life insurance

    c. Reinsurance

    d. Affiliate service of insurance

Concrete commitment

    1. The test centers for Insurance Intermediaries Qualifying Examination of Mainland shall be allowed to be set up in Hong Kong.

    2. Hong Kong insurance agent companies shall be allowed to set up solely-ventured companies in the Mainland so as to provide agent service insurance companies in the Mainland .

 

Sector or subsector

7. Financial service

    B. Bank and other financial service (excluding insurance and  securities)

    a. Accepting public deposit and other public fund due to be paid

    b. All types of loan, including consumption credit, mortgage credit, commercial dealing and financing

    c. Financial leasing

    d. All the payment and remittance instrument, including credit card, charge card, traveler's check, bank draft (including import and export settlement)

    e. Assurance and commitment

    f. Sale and purchase of foreign exchange of its own accord or for clients

Concrete commitment

    If a Hong Kong bank is intended to become a shareholder of a Mainland bank, the requirement on the year-end overall asset before its application shall be adjusted from not less than 10 billion US dollars to not less than 6 billion US dollars.

 

Sector or subsector

7.  Financial service

    B. Banking and other financial services

    Securities service

Concrete commitment

    1. The fund management companies in the Mainland approved by China Securities Supervision and Control Commission shall be allowed to establish branches in Hong Kong and undertake the relevant business.

    2. Where the Mainland securities companies establish branches in Hong Kong, its time limit of registration in Hong Kong shall be extended from six months to one year.

 

Sector or subsector

8.  Service relating to health and social service

    C. Social service

    Social service provided by residential institutions to the old and the disabled(CPC93311)

    Social service not provided by residential institutions(CPC93323)

Concrete commitment

    Hong Kong service suppliers shall be allowed to set up beadhouses by means of solely-funded and private entity in the pilot of Guangdong province, and provide service for the aged.

 

Sector or subsector

9. Tourism and the relevant services

    A. Restaurant (including apartment building) and eatery (CPC641-643)

    B. Travel agency and travel operators (CPC7471)

    Others

Concrete commitment

    1. Where a Hong Kong travel agency is intended to establish equity joint travel agencies, the total amount of annual tourism shall not be less than 8 million US dollars.

    2. Where a Hong Kong travel agency is intended to establish solely-funded travel agencies, the total amount of its annual tourism may not be less than 15 million US dollars.

    3. Solely-funded or jointly-funded travel agencies in such provinces and autonomous regions as Guangxi, Hunan, Hainan, Fujian, Jiangxi, Yunnan, Guizhou and Sichuan shall be allowed to apply for operating group tourism where the citizens having the formal registered residence come to Hong Kong and Macao.

 

Sector or subsector

10. Entertainment, culture and sport service

    A. Entertainment service (excluding audiovisual service)

Concrete commitment

    1. Hong Kong service supplier shall be allowed to establish solely-venture performance broker organ.

    2. Hong Kong performance broker organs or artistic performance group shall be allowed to hold business performance in the province or city by means of cross-border payment with the approval from the competent authority in Guangdong province and Shanghai. The performance broker organ or artistic performance groups which come to perform in the Mainland shall be subject to the approval of the Ministry of Culture in advance.

 

Sector or subsector

10. Entertainment, culture and sports service

  D. Sports and other entertainment services (CPC964)

     Sports service (CPC96411, 96412, 96413)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish solely-funded enterprises in the Mainland and provide services of sport popularization, organization and operation of sport facilities.

 

Sector or subsector

11. Transportation service

    A. Marine transportation service

    H. Assistant service

    International service (freight and passenger transport) (CPC7211, 7212, excluding offshore and inland water transportation)

    Container yard service

    Others

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish enterprises by means of joint venture to provide international shipping service, and the share controlled by Hong Kong service suppliers may not exceed 51%.

 

Sector or subsector

11. Transport service

    C. Aviation transport service

    d. Repair and maintenance of aircrafts (CPC8868)

    Other supportive service of air transport (CPC74690)

    Computer Reservation System. (CRS)

    Sale and distribution of air service

Concrete commitment

    1. Where Hong Kong service suppliers are allowed to apply for establishing solely-funded, equity joint or contractual joint air transport distribution agent enterprises, the service suppliers herein shall present the economic guarantee provided by the guarantee company recommended by the Mainland Chinese-funded bank or China Air Transport Association.

    2. When Hong Kong service suppliers apply for establishing solely-funded, equity joint or contractual joint air transport distribution agent enterprises, they may directly submit the application documents to China Air Transport Association without the substantial initial examination by the representative office of China Air Transport Association.

    3. Hong Kong service suppliers shall be allowed to establish joint-venture enterprises in the Mainland with local Computer Reservation System. The Mainland party shall have a controlling share of the enterprises. The business licenses for establishing joint-venture enterprises shall be subject to economic requirement test.

 

Sector or subsector

11. Transport service

    F. Highway transport service

    Regular passenger service among cities(CPC71213)

Concrete commitment

    Hong Kong service suppliers shall be allowed to establish joint-venture enterprises to provide regular passenger transport service between cities.

 

Sector or subsector

Sectors unlisted in the Classification of Service Sectors (GNS/W/120)

    Individual industrial and commercial businesses

Concrete commitment

    The Chinese permanent Hong Kong citizens shall be allowed to establish individual industrial and commercial businesses in all the provinces, autonomous regions and municipalities under the Central Government in the Mainland pursuant to the relevant laws, rules and administrative regulations of the Mainland without having to be subject to the examination and approval of foreign capital, excluding chartered operation, and the number of staff in an individual industrial and commercial business may not exceed eight. The business scope shall include: computer service, software, load, unload and removal relating to expressway transport and other transport services ① (note: excluding international loan and express delivery service), storage② (note: the business area of storage may not exceed 300 m2.); translation and interpretation③ (note: only limited to business service).

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