World Trade
Organization S/C/N/217
24 December 2002 (02-7093) Council for Trade in Services Original: English

NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES

The following notification has been received from the delegation of the People's Republic of China.
205 of the State Council of the Peoples Republic of China on October 15, 1996, and revised in accordance with the Decision of the State Council on Amending the Regulations on Administration of Travel Agencies on December 11, 2001)

Chapter I General Provisions

Article 1 These Regulations are formulated for the purposes of strengthening the administration of travel agencies, protecting the lawful rights and interests of tourists and travel agencies, maintaining the order of tourism market and promoting the healthy development of tourism.

Departments for tourism administration under local people’s governments at or above the county level shall, according to their duties, be responsible for the supervision and administration of travel agencies within their respective administrative areas.

Article 9 To apply to establish an international travel agency, the application shall be submitted to the department for tourism administration of the people’s government of the province, autonomous region or municipality directly under the Central Government where it is to be situated; after the examination and consent by the department for tourism administration of the people’s government of the province, autonomous region or municipality directly under the Central Government, that application shall be submitted to the competent tourism administration department of the State Council for examination and approval.

Article 15 The travel agency that has an annual reception of more than 100,000 person time tourists may set up branch agency which has no status of legal person (hereinafter referred to as the branch).

Article 23 Tourists shall have the right to lodge complaints with the tourism administration department for any losses caused to them under any of the following circumstances:
(1) The travel agency fails to meet, due to its own fault, the service quality standard set forth in the contract;
(2) The service provided by the travel agency fails to meet the national or trade standard; or
(3) Bankruptcy of the travel agency causes losses to the tour fee prepaid by tourists.

Article 29 The Chinese investor in a foreign-invested travel agency shall satisfy the following conditions:
(1) being a company established according to law;
(2) having no record of law breaking or serious regulation breaking in the past three years; and
(3) meeting the prudence requirement and the requirements for special industry specified by the competent tourism administration department of the State Council

Article 30 The foreign investor in a foreign-invested travel agency shall satisfy the following conditions:
(1) being a travel agency or an enterprise mainly engaging in tourism business;
(2) having the annual business volume of more than USD$ 40 million; and
(3) being a member of the tourism association of its own country.

The applicant shall, by presenting the Letter of Examination Opinion on Business Operation Licensing for Foreign-Invested Travel Agency, the contract and articles of association signed by all investors, apply to the competent foreign trade and economic cooperation department of the State Council for the establishment of the foreign-invested enterprise.

Article 37 Tourism administration departments shall strengthen the financial management of quality guaranty bonds, and use them for compensation to the economic losses of tourists according to the relevant provisions of the State.

Article 44 Where the tourism administration department or the competent foreign trade and economic co-operation department, in violation of the provisions of these Regulations, commits any of the following acts, administrative sanctions shall be given to the persons in charge who have responsibility and other persons directly responsible for the violations according to law:
(1) failing to issue the Business Operation Permit for Travel Agency or the Approval Certificate for Foreign-Invested Enterprise to the applicant who satisfies the conditions; or
(2) issuing the Business Operation Permit for Travel Agency or the Approval Certificate for Foreign-Invested Enterprise to the applicant who does not satisfy the conditions.

Article 45 Any staff members of the tourism administration department who neglect their duties or abuse their powers shall be investigated for criminal liability according to law if the criminal law is violated; or be given administrative sanctions according to law if the offense is not serious enough for criminal penalty.