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Supplement V to the Mainland and Hong Kong Closer Economic Partnership Arrangement
To further enhance the level of economic and trade exchanges and cooperation between the Mainland[①] and the Hong Kong Special Administrative Region (hereinafter referred to as “Hong Kong”), and pursuant to:
the Mainland and Hong Kong Closer Economic Partnership Arrangement (hereinafter referred to as “CEPA”) signed on 29 June 2003 and its Annexes signed on 29 September 2003;
the Supplement to the CEPA signed on 27 October 2004;
the Supplement II to the CEPA signed on 18 October 2005;
the Supplement III to the CEPA signed on 27 June 2006;
the Supplement IV to the CEPA signed on 29 June 2007;
the two sides agreed to sign this Supplement V on further liberalization of trade in services in the Mainland for Hong Kong and promoting trade and investment facilitation and mutual recognition of professional qualifications.
I. Trade in Services
(I) From 1 January 2009, the Mainland shall further relax the market access conditions in 17 areas, namely, accounting, construction, medical, services incidental to mining, placement and supply services of personnel, related scientific and technical consulting services, printing, convention and exhibition, distribution, environment, banking, social services, tourism, maritime transport, air transport, road transport and individually owned businesses on the basis of the commitments on liberalization of trade in services under “CEPA”, “Supplement to the CEPA”, “Supplement II to the CEPA”, “Supplement III to the CEPA” and “Supplement IV to the CEPA”. The specific contents are detailed in the Annex of this Supplement V.
(II) The Annex of this Supplement V is a supplement and amendment to Table 1 of Annex 4 of “CEPA” – “The Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong Kong”, Annex 3 of “Supplement to the CEPA”- “Supplements and Amendments to the Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong Kong”, Annex 2 of “Supplement II to the CEPA”- “Supplements and Amendments II to the Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong Kong”, Annex of “Supplement III to the CEPA” - “Supplements and Amendments III to the Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong Kong” and Annex of “Supplement IV to the CEPA” - “Supplements and Amendments IV to the Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong Kong”. In the event of conflict with the provisions of the other five instruments, the provisions of the Annex of this Supplement V shall prevail.
(III) “Service providers” as referred to in the Annex of this Supplement V shall meet the relevant requirements of Annex 5 of “CEPA” – “Definition of “Service provider” and Related Requirements”.
II. Trade and Investment Facilitation
(I) The two sides will adopt the following measures to further strengthen cooperation in the area of electronic commerce:
To take forward the pilot applications of mutual recognition of electronic signature certificates issued by Guangdong and Hong Kong. A working group is to be set up which will strive to submit within this year suggestions on a framework for the mutual recognition of electronic signature certificates issued by both places.
(II) The two sides will adopt the following measures to further strengthen cooperation in the area of protection of intellectual property:
To further strengthen exchanges and cooperation in the trademark area, the Trademark Office of the State Administration for Industry and Commerce and the Intellectual Property Department of Hong Kong will set up a Trademark Working Coordination Group to serve as a regular communication mechanism for the two sides with a view to strengthening exchanges and cooperation of the two places in areas such as trademark registration and trademark protection.
(III) To promote cooperation in the area of branding between the two places, the two sides agree to add cooperation on branding into the area of trade and investment facilitation under “CEPA”. Accordingly:
1. Paragraph 1 of Article 17 of “CEPA” is amended as follows:
“I. The two sides will promote cooperation in the following areas:
1). trade and investment promotion;
2). customs clearance facilitation;
3). commodity inspection and quarantine, food safety and quality and standardization;
4). electronic business;
5). transparency in laws and regulations;
6). cooperation of small and medium enterprises;
7). cooperation in Chinese traditional medicine and medical products sector;
8). protection of intellectual property;
9). cooperation on branding.”
2. Article 2 of Annex 6 of “CEPA” is amended as follows:
“II. The two sides agree to cooperate in trade and investment facilitation in nine areas, namely, trade and investment promotion; customs clearance facilitation; commodity inspection and quarantine, food safety, quality and standardization; electronic business; transparency in laws and regulations; cooperation of small and medium enterprises; cooperation in Chinese traditional medicine and medical products sector; protection of intellectual property; and cooperation on branding. Cooperation in these areas will follow the guidance and coordination of the Joint Steering Committee set up in accordance with Article 19 of the ‘CEPA’.”
3. An article is added to Annex 6 of “CEPA” as Article 11 and the subsequent articles are renumbered accordingly. Article 11 reads as follows:
“XI. Cooperation on branding
The two sides recognize that cooperation on branding plays an important role in advancing economic development and promoting economic and trade exchanges between the two places. The two sides agree to strengthen cooperation in the area of branding.
(I) Cooperation Mechanism
Under the guidance and coordination of the Joint Steering Committee, the two sides will set up a working group with a view to strengthening cooperation in the area of branding.
(II) Content of Cooperation
The two sides agree to strengthen cooperation in the following areas:
1). Strengthen exchange and communication in the area of branding between the two places.
2). Exchange information relating to the formulation and implementation of laws and regulations in respect of protection of brands.
3). Strengthen cooperation in areas such as training, visits and publications.
4). Strengthen promotion of brands of both places through a variety of means such as promotion on websites, at exhibitions and seminars.”
III. Mutual Recognition of Professional Qualifications
The two sides will adopt the following measures to further promote mutual recognition of professional qualifications:
(I) Accounting Sector
Competent authorities or professional bodies of both sides will continue to promote work on the mutual exemption of some of the papers under the Accounting Professional Technician Qualification Examination.
(II) Construction Sector
Competent authorities or professional bodies of both sides will carry on the mutual recognition of qualifications for professionals in disciplines which have mutual recognition agreements signed and well-tested conditions met.
V. Annex
The Annex to this Supplement V forms an integral part of this Supplement V.
VI. Coming into Effect
This Supplement V shall come into effect on the day of signature by the representatives of the two sides.
Signed in duplicate in Hong Kong, this 29th day of July, 2008 in the Chinese language.
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Deputy Minister of the Ministry of Commerce |
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Secretary for Economy and Finance |
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People’s Republic of China |
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Hong Kong Special Administrative Region of the People’s Republic of China |
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Jiang Zengwei
(Signature) |
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Francis Tam Pak Yuen
(Signature) |
Annex
Supplement and Amendment V to the Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong Kong[②]
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Sectors or sub-sectors |
1．Business services |
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A．Professional services |
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b．Accounting, auditing and bookkeeping services (CPC862) |
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Specific commitments |
1．The validity period of Provisional License to Perform Audit-Related Services, which are applied by Hong Kong accounting firms on provisionally implementing audit business in mainland, is extended from two years to five years.
2．To allow Hong Kong to set up exam sites for holding Accounting Professional Qualification Examination of Mainland.
3．To accept Hong Kong residents in Shenzhen and Dongguan in Guangdong Province to enter for Accounting Qualification Examination of Mainland and handle related problems. Those who pass the examination will be issued an accounting qualification certificate by the Guangdong Province. |
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Sectors or sub-sectors |
1．Business services |
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A．Professional services |
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d．Architectural design services (CPC8671)
e．Engineering services (CPC8672)
f．Concentrated engineering services (CPC8673)
g．City planning and landscape architecture design services (excluding overall city planning services) (CPC8674) |
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Specific commitments |
1．To allow the Hong Kong professionals who have acquired the Registered City Planner Qualification of Mainland to register in Guangdong Province regardless whether they are registered in Hong Kong or not.
2．To allow the Hong Kong professionals who have acquired Supervision Engineer Qualification of Mainland to register in Guangdong Province regardless whether they are registered in Hong Kong or not.
3．When the Hong Kong service providers set up construction and engineering design enterprises in the form of equity joint venture or contractual joint venture in the Mainland, there is no restriction on the proportion of the total capital contributed by the Mainland partners to the registered capital. |
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Sectors or sub-sectors |
1．Business services |
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A．Professional services |
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h．Medical and dental services (CPC9312) |
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Specific commitments |
1．To allow the Hong Kong service providers to set up wholly-owned out-patient departments in Guangdong Province. [③]
2．There is no restriction on the proportion of investment capital between Hong Kong service providers and Mainland partners when Hong Kong service providers set up out-patient departments in the form of equity joint venture or contractual joint venture in Guangdong Province.
3．There is no requirement on the total investment of Hong Kong service providers in setting up out-patient departments in the form of single proprietorship, equity joint venture or contractual joint venture in Guangdong Province.
4．The provincial health administrative department of Guangdong Province is responsible for the project establishment and approval procedures of Hong Kong service providers in setting up out-patient departments in the form of single proprietorship, equity joint venture or contractual joint venture in Guangdong Province.
5．To allow the Hong Kong permanent residents with Chinese citizenship to apply for that through the Certificate of physicians of Mainland. [④] |
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Sectors or sub-sectors |
1．Business services |
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F．Other business services |
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h．Mining-related services (CPC883, only including oil and natural gas) |
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Specific commitments |
To allow Hong Kong service providers to provide oil and gas exploitation services in the Mainland in the form of contractual joint venture. |
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Sectors or sub-sectors |
1．Business services |
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F．Other business services |
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k．Personnel supply and placement services (CPC 872) |
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Specific commitments |
1．The minimum registered capital required for Hong Kong service providers in setting up wholly-owned job referral agencies in Guangdong Province follows the requirements applicable to Mainland enterprises in Guangdong Province.
2．The minimum registered capital required for Hong Kong service providers in setting up wholly-owned job intermediaries in Guangdong Province follows the requirements applicable to Mainland enterprises in Guangdong Province. |
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Sectors or sub-sectors |
1．Business services |
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F．Other business services |
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m．Consulting services related to science and technology
Prospecting services for iron, copper and manganese
- Geological, geophysical and other scientific prospecting services (part of CPC 86751)
-Underground surveying services (part of CPC 86752) |
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Specific commitments |
To allow Hong Kong service providers to provide prospecting and surveying services of iron, copper and manganese in the Mainland in the form of single proprietorship, equity joint venture or contractual joint venture. |
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Sectors or sub-sectors |
1．Business services |
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F．Other business services |
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r．Printing and publishing services |
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Specific commitments |
The minimum registered capital required for Hong Kong service providers to set up printing enterprise to provide services of packaging materials follows the requirements applicable to the Mainland enterprises. |
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Sectors or sub-sectors |
1．Business services |
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F．Other business services |
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Convention services and exhibition services (CPC87909) |
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Specific commitments |
To allow enterprises set up by Hong Kong service providers in the form of single proprietorship, equity joint venture or contractual joint venture in Beijing City, Tianjin City, Chongqing City, and Zhejiang Province to organize overseas exhibitions on a pilot basis[⑤]. The enterprises participating in should be registered enterprises in that province or city. |
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Sectors or sub-sectors |
4．Distribution services |
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A．Commission agency services (excluding salt and tobacco)
B．Wholesale services (excluding salt and tobacco)
C．Retail services (excluding salt and tobacco)
D．Franchising |
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Specific commitments |
For the same Hong Kong service provider which opens more than 30 stores in the Mainland, if the commodities for sale include pharmaceutical products, pesticides, mulching films, chemical fertilizers, vegetable oil, edible sugar and cotton, which are of different brands and from different suppliers, the Hong Kong service provider is allowed to operate in the form of single proprietorship.[⑥] |
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Sectors or sub-sectors |
6．Environmental services (excluding environmental quality monitoring and pollution source inspection) |
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A．Sewage services (CPC9401)
B．Solid waste disposal services (CPC9402)
C．Exhaust gas cleaning services (CPC9404)
D．Noise abatement services (CPC9405)
E．Nature and landscape protection services (CPC9406)
F．Other environmental protection services (CPC9409)
G．Sanitation services (CPC9403) |
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Specific commitments |
To allow Guangdong Province to approve the qualification of the Hong Kong service providers to set up operation enterprises of environmental pollution control facilities in Guangdong. |
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Sectors or sub-sectors |
7．Financial services |
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B．Banking and other financial services (excluding insurance and securities) |
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a．Accepting deposits and other payable funds of the public
b．All kinds of loans, including consumer credit, mortgage credit, agency of commercial transactions and financing
c．Financial leasing
d．All the payment and money transmission tools, including credit cards, charge and debit cards, traveler’s checks and bank drafts (including import and export settlement)
e．Guarantees and commitments
f．Foreign exchange transactions for own account or for account of customers |
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Specific commitments |
To allow any corporate banking institution of Mainland that is established by a Hong Kong bank and meets the following conditions to set up data centre in Hong Kong: [⑦]
(1) Incorporated in the Mainland on or before 30 June 2008;
(2) At the time of its incorporation, its parent bank has already established a data centre in Hong Kong;
(3) The data centre should operate independently and include core systems such as customer, accounting and product information systems;
(4) Its board of directors and senior management should have the highest right of management to the data centre;
(5) The data centre should meet relevant supervisory requirements and be approved by relevant authorities of Mainland. |
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Sectors or sub-sectors |
8．Health-related services and social services |
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C．Social services |
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Social welfares provided through residential institutions to the old and the handicapped (CPC93311)
Welfare services not provided through residential institutions (CPC93323) |
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Specific commitments |
To allow Hong Kong service providers to operate wholly-owned private non-business welfare agencies for the handicapped in Guangdong Province on a pilot basis. |
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Sectors or sub-sectors |
9．Tourism and tourism-related services |
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A．Hotel (including apartment building) and restaurant guides (CPC641-643)
B．Travel agencies and tour operators (CPC7471)
C．Tour guide (CPC7472)
Others |
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Specific commitments |
1．To commission Guangdong Province to examine and approve the travel agencies set up by Hong Kong service providers in the form of single proprietorship, equity joint venture or contractual joint venture in Guangdong Province.
2．To allow Hong Kong permanent residents with Chinese citizenship to take the Qualification Examination for Tourist Guide of Mainland. Those who have passed the examination shall obtain the Tourist Guide Certificate of Mainland in accordance with the relevant requirements. |
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Sectors or sub-sectors |
11．Transport services |
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A．Maritime transport services
H．Ancillary services |
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International transport (freight and passenger transport) (CPC7211，7212，excluding coastal and inland water transport services)
Container yard services
Others |
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Specific commitments |
To allow Hong Kong service providers to set up wholly-owned enterprises and their branches in Guangdong Province on a pilot basis to provide shipping agency services for vessel operators in routes between Guangdong Province and Hong Kong/Macao. |
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Sectors or sub-sectors |
11．Transport services |
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C．Air transport services |
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Airport management services(excluding cargo handling) (CPC74610)
Other supporting services to air transport (CPC74690)
Computer reservation system (CRS) services
Sales and marketing services to air transport |
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Specific commitments |
To allow Hong Kong service providers to submit the economic guarantee provided by corporate banks of Mainland or guarantee companies recommended by the China Air Transport Association in their applications of setting up air transport sales agencies in the form of single proprietorship, equity joint ventures or contractual joint ventures in the Mainland. |
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Sectors or sub-sectors |
11．Transport services |
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F．Road transport services |
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Highway freight by trucks or cars (CPC7123)
Highway passenger transport (CPC7121，7122)
Regular intercity passenger services (CPC71213)
Road freight station (yard)
Bus stop services (CPC7441)
Motor vehicles maintenance
Driving training |
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Specific commitments |
1．To commission the Guangdong Province to examine and approve the operation of road freight transport in the production enterprises invested by Hong Kong in Guangdong.
2．To commission the Guangdong Province to examine and approve the enterprises of motor vehicles maintenance and driving training and the projects of passenger and freight transport stations (yard) set up by Hong Kong service providers in Guangdong. |
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Sectors or sub-sectors |
Unlisted sectors in the classification of service sectors (GNS/W/120) |
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Individually-owned business |
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Specific commitments |
1．To allow Hong Kong permanent residents with Chinese citizenship to directly set up individually-owned business (without being subject to the approval procedures applicable to foreign investments set up individually-owned business) in accordance with the relevant laws, regulations and administrative regulations of Mainland, in all provinces, autonomous regions and municipalities, to provide the following services with no more than 8 employees (excluding franchising operation): building-cleaning services and advertising production services.
2．To allow Hong Kong permanent residents with Chinese citizenship to directly set up individually-owned business in Guangdong Province (without being subject to the approval procedures applicable to foreign investments set up individually-owned business) in accordance with the relevant laws, regulations and administrative regulations of Mainland, to provide the following services with no more than 8 employees (excluding franchising operation): trade brokerage and commission agency (excluding auction) and renting and leasing services (excluding services of renting and leasing house). |
[①] In the CEPA, the “Mainland” refers to the entire customs territory of the People’s Republic of China.
[②] The classification of the sectors is based on WTO’s GATS Services Sectoral Classification List (GNS/W/120). For the contents of the sectors, reference is made to the relevant CPC (United Nations Provisional Central Product Classification).
[③] Shall subject to the requirements of the mainland in setting up out-patient department.
[④] The specific implementation measures are promulgated by the Ministry of Health.
[⑤] Shall subject to the approval of the China Council for the Promotion of International Trade according to relevant laws and regulations in the Mainland.
[⑥]If the commodity for sale is processed oil, the commitments made by Mainland to the members of the World Trade Organization are still applicable.
[⑦] Shall subject to the conditions in the supervisory cooperation agreement, which was signed by the relevant supervisory authorities of Mainland and Hong Kong, on the provisions of corporate banking institutions of Mainland established by Hong Kong banks setting up data centers in Hong Kong.
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