 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 fr om the delegation of the People's Republic of 
China. 
 
____________ 
 
 
1. Member notifying: 
 The People's Republic of China 
 2. Notification under: 
 Article III, paragraph 3 of the Gene ral Agreement on Trade in Services 
 3. Date of entry into force/duration: 
 2001/12/11 
  
4. Agency responsible for implementation and enforcement of the measure: 
National Tourism Administration 
Ministry of Foreign Trade and Economic Co-operation 
 5. Complete description of the measure
* indicating the modes of supply covered, the effect 
on trade in services (e.g., restrictions/lib eralization measures) and the impact of the 
measure on commitments in the Member's schedule and Article II (MFN) exemption 
list, if relevant: 
 
 Regulations on Administration of Travel Agencies 
  Full text English translation of the regulation is attached.
1  The English translation is for 
reference only and the Chinese version shall be authentic. 
 
6. Members specifically affected, if any: 
 All Members 
 
7. The texts are available from: 
 - Enquiry point   ; 
 - WTO Secretariat  ; 
 - Other sources (address, fax  
  and telephone of other body)   
                                                      
* Including international agreements, recognition measures or other types. 
1 In English only S/C/N/217 
Page 2 
Regulations on Administrati on of Travel Agencies 
 
(Promulgated by Decree No.205 of the State Counc il 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 in terests of tourists and travel 
agencies, maintaining the order of tourism market an d promoting the healthy development of tourism.  
 Article 2  These Regulations shall apply to travel agen cies established within the territory of the 
People’s Republic of China and resident offices established within the territory of the People’s 
Republic of China by foreign travel agencies (herei nafter referred to as resident offices of foreign 
travel agencies).  
 
Article 3  Travel agencies referred to in these Regulations mean the enterprises that engage in 
the tourism business with making profit as their aim.  
 
Tourism business referred to in these Regulations means the business activities of providing such paid 
services as fulfillment of procedures in respect of  exit, entry and visa on be half of tourists, soliciting 
and receiving tourists or arranging board and lodging for them.   Article 4  The competent tourism administration department of the State Council shall be 
responsible for the supervision and administration of travel agencies throughout the country.  
 
Departments for tourism administration under local people ’s governments at or above the county 
level shall, according to their dutie s, be responsible for the supervision and administration of travel 
agencies within their respective administrative areas.  
 
Departments mentioned in Paragraphs 1 and 2 of this Article are collectively refe rred to as the tourism 
administration departments.      
 
Article 5  Travel agencies shall be categorized into international travel agencies and domestic 
travel agencies according to their business scope . Where necessary, the special provisions of these 
Regulations, if any, shall apply thereto.   
 
The business scope of international travel agencies shall include the inbound tourism business, 
outbound tourism business and domestic tourism business.  
 
The business scope of domestic travel agencies shall be limited only to the domestic tourism business.   
 
 Chapter II Establishment of Travel Agencies  
 Article 6  To establish a travel agency, the following conditions shall be satisfied:  
 (1) having the fixed business premises;   (2) having necessary business facilities;  
 (3) having trained business personnel who possess the qualification certificate issued by 
the tourism administration department of the people ’s government at or above the 
level of province, autonomous region or municipality directly under the Central 
Government; and  
 (4) having the registered capital and the qu ality guaranty bond as specified in Articles 7 
and 8 of these Regulations.   
  S/C/N/217 
 Page 3 
 
 
Article 7  The registered capital of travel agencies shall comply with the following 
requirements:  
 (1) The registered capital of an internationa l travel agency may not be less than RMB 1.5 
million yuan; and  
 (2) The registered capital of a domestic travel agency may not be less than RMB 300,000 
yuan.  
 
Article 8  To apply to establish a travel agency, the quality guaranty bond shall be paid to the 
tourism administration department acco rding to the following provisions:  
 (1) The applicant for establishing an intern ational travel agency shall pay RMB 600,000 
yuan for the inbound tourism business or RMB 1 million yuan for the outbound tourism business; and   
 (2) The applicant for establishing a domestic travel agency shall pay RMB 100,000 yuan.   
 
The quality guaranty bond and its interests accrue d in the period of custody by the tourism 
administration department shall belong to the trav el agency; the tourism administration department 
may, according to the relevant provisions of the State, deduct the custody fee at a certain rate from the 
interest.  
 
Article 9  To apply to establish an international trav el 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 depart ment 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.   
To apply to establish a domestic travel agency, the application shall be submitted for approval 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.  
 
Article 10  To apply to establish a travel agency, the following documents shall be submitted:  
 (1) the written application for the proposed travel agency;  
 (2) the feasibility study report for the proposed travel agency;  
 (3) the articles of association of the proposed travel agency;  
 (4) resumes of the manager and deputy managers of the proposed travel agency and their 
qualification certificates as specified in Item  (3) of Article 6 of these Regulations;  
 (5) the capital and credibility certification issued by the deposit bank and the capital 
verification report issued by the certified public accountant and his accounting firm or 
auditing firm;  
 (6) the business premises certificate; and  
 (7) the business facilities certificate.  
 Article 11  The tourism administration department shall, after the receipt of an application, carry 
out the examination according to the following principles:  
 (1) whether or not it conforms to the tourism development planning;  
 (2) whether or not it meets the need of tourist market; and  
 (3) whether or not it satisfies the conditions as specified in Article 6 of  these Regulations.  
 The tourism administration department shall, wi thin 30 days from the da te of receipt of the 
application, make the decision of approval or di sapproval, and notify the applicant of its findings.  
 
Article 12  If the application is approved upon examination and approval, the tourism 
administration department shall issue the Busine ss Operation Permit for Travel Agency to the S/C/N/217 
Page 2 applicant. The applicant shall, by presenting su ch a Permit, obtain the business license from the 
industrial and commercial administration department.  
The applicant who fails to obtain the Business Operation Permit for Travel Agency may not engage in 
the tourism business.  
 
Article 13  The travel agency that intends to make a change to its business scope shall obtain 
approval from the tourism administration department that originally approved it, and after that, go 
through the registration formalities for the change with the industrial and commercial administration 
department.  
 The travel agency that intends to make a change to  such item as its name, business premises or legal 
representative, or to terminate or suspend its bus iness, shall go through the relevant registration 
formalities for the change or cancellation with th e industrial and commercial administration 
department, and report it to the tourism administration  department that originally approved it for the 
record.  
 
Article 14  The tourism administration departments shall practice the system of announcement 
with regard to travel agencies, which shall include the announcement of business commencement, change of name or business scope, termination of business or revocation of permit.  
 
Article 15  The travel agency that has an annual r eception 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).  
 The international travel agency shall make an incr ease of RMB 750,000 yuan to its registered capital 
and RMB 300,000 yuan to its quality guaranty bond when a branch is set up. The domestic travel agency shall make an increase of RMB 150,000 yuan to its registered capital and RMB 50,000 yuan 
to its quality guaranty bond when a branch is set up.  
 Travel agencies and their branches shall be unde r unified management, financial control, market 
promotion and receiving.  
 
The branches set up by travel agencies shall accept the supervision and administration from the 
departments for tourism administration of local people’s governments at and above the county level where they are located.  
 
Article 16  Foreign travel agencies that intend to establish resident offices within the territory of 
the People’s Republic of China must obtain ap proval from the competent tourism administration 
department of the State Council.  
 Resident offices of foreign travel agencies may engage only in tourism consultation, liaison and 
publicity, and may not engage in the tourism business.  
 
Chapter III Operation of Travel Agencies    Article17  Travel agencies shall carry out their bus iness activities within the approved business 
scope. Travel agencies shall, in their business activities, adhere to the principles of voluntariness, 
equality, fairness, honesty and credibility and observe commercial ethics.  
 
Article18  No travel agency may, by using the foll owing illegal methods, engage in the tourism 
business so as to harm its competitor:  
 (1) to counterfeit the registered trademark of another travel agency;  
 (2) to use the name of another travel agency without authorization;  
 (3) to defame another travel agency;   S/C/N/217 
 Page 5 
 
 
 (4) to authorize a unit which is not a travel agency or an individual to engage in the 
tourism business on its behalf; or  
(5) to commit other acts to disturb the order of tourism market.  
 
Article 19  Travel agencies shall conclude written contracts with the business personnel they 
employed in order to establish the rights  and obligations of both the parties.  
 
No business personnel may without the consent of the travel agency , disclose, use or allow another 
person to use the travel agency’s business secrets coming to his knowledge.  
 Article 20  Travel agencies shall protect the lawful rights and interests of tourists.  
 
The tourism service information provided by travel agen cies to tourists must be  true and reliable, and 
no false promotion may be permitted.  
 
Article 21  Travel agencies shall, when organizing tours, buy the tour accident insurance for their 
tourists and guarantee that the services they provide comply with the requirements for the tourists ’ 
personal and property safety; and in case of potential danger to the tourists personal and property 
safety, they shall make true disclosure and explicit wa rnings to the tourists and take measures to avoid 
the occurrence of any danger.  
 
Article 22  Travel agencies are entitled to collect fees for services they provide to their tourists 
according to the provisions of the State, and if extr a charges are charged for additional services in the 
course of a tour, they shall obtain the consent from tourists in advance.   Travel agencies shall, when providing paid services, issue service documents to the tourists according 
to the provisions of the State.  
 
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.  
 
The tourism administration department shall handle th e complaints lodged by tourists according to the 
provisions of these Regulations.  
 
Article 24  The tour guides receiving tourists and the tour leaders for outbound tour employed by 
travel agencies shall have the qualification certificat e issued by tourism administration departments of 
people’s governments at or above the level of pr ovince, autonomous region or municipality directly 
under the Central Government.  
 
Article 25  Travel agencies shall, when organizing outbound tour for tourists, select counterpart 
travel agencies in the countries or regions concerne d, which are established according to law and have 
good reputation, and can entrust them with the rece ption only after a writing agreement with them has 
been concluded.  
 
In case of infringement upon the tourists’ rights or in terests due to breach of agreement by the travel 
agency abroad, the home travel agency that organizes the outbound tour shall be liable for 
compensation, and then it may demand reimbursement from the travel agency abroad.   S/C/N/217 
Page 2 Article 26  Travel agencies shall keep complete reco rds of soliciting and re ceiving tourists, and 
preserve the relevant documents and material s for inspection by the tourism administration 
department.  
 
Chapter IV Special Provisions on Foreign-Invested Travel Agencies    
 
Article 27  The provisions of this Chapter shall apply to foreign-invested travel  agencies; where 
this Chapter remains silent, other relevant provis ions of these Regulations shall apply thereto.  
 
Foreign-invested travel agencies mentioned in the preceding paragraph shall include Chinese Foreign 
equity joint venture travel agencies and Chinese Foreign contractual joint venture travel agencies 
established according to law jointly by foreig n tourism operators and Chinese investors.  
 Article 28  The minimum registered capital of a Chinese  Foreign equity joint venture travel 
agency shall be RMB 4 million yuan. The minimu m registered capital of a Chinese Foreign 
contractual joint venture travel agency may be adjusted. The competent tourism administration 
department of the State Council shall, together  with the competent foreign trade and economic 
cooperation department of the State Council, determine the time limit for adjustment.  
 The competent tourism administration department of the State Council shall, together with the 
competent foreign trade and economic cooperation department of the State Council, determine the 
proportion of capital to be contributed by the invest ors in Chinese Foreign equity joint venture travel 
agencies according to the relevant provisions.  
 
The provisions of Paragraphs 1 and 2 of this Ar ticle shall apply mutatis mutandis to the minimum 
registered capital and the proportion of capital to be contributed by the parties in Chinese Foreign 
contractual joint venture travel agencies.  
 
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.  
 
Article 31  When applying to establish a foreign-invested travel agency, the Chinese investor 
shall make the application to the competent tourism administration department of the State Council 
and submit the documents as specified in Article 10 of these Regulations and the certificates in 
conformity with the provisions of Article 30  of these Regulations. The competent tourism 
administration department of the State Council sh all finish the examination on the application and 
make the decision of approval or disapproval within 60 days from the date of receipt of the 
application. If the approval is granted, it shall issue the Letter of Examination Opinion on Business 
Operation Licensing for Foreign-Invested Travel Agen cy; if no approval is granted, it shall inform the 
applicant and give reasons in writing.  
 
The applicant shall, by presenting the Letter of Examination Opinion on Business Operation 
Licensing for Foreign-Invested Travel Agency, the co ntract and articles of association signed by all 
investors, apply to the competent foreign trade and economic cooperation department of the State  S/C/N/217 
 Page 7 
 
 
Council for the establishment of the foreign-invested enterprise. The competent foreign trade and 
economic cooperation department of the State Council shall finish the examination on the contract 
and articles of association of the proposed foreign-invested travel agency and make the decision of 
approval or disapproval within the time limit as specified by the relevant laws and administrative 
regulations. If the approval is granted, it shall i ssue the Approval Certific ate for Foreign-Invested 
Enterprise and inform the applicant to obtain the Business Operation Permit for Travel Agency from 
the competent tourism administration department of th e State Council. If no approval is granted, it 
shall inform the applicant and give reasons in writing.  
 
The applicant shall, on the strength of the Bu siness Operation Permit for Travel Agency and the 
Approval Certificate for Foreign Invested Enterprise, go through the formalities for registration of 
foreign-invested travel agency with the industrial and commercial administration department.  
 
Article 32  Foreign-Invested travel agencies may engage in the inbound tourism business and 
domestic tourism business.    No foreign-invested travel agency may set up any branch.  
 
Article 33  No foreign-invested travel agency may engage in the tourism business of Chinese 
citizens travelling abroad and of citizens from other Chinese territories travelling to Hong Kong 
Special Administrative Region, Macao Special Administrative Region and Taiwan region.  
 
Chapter V Supervision and Inspection      
 
Article 34  Tourism administration departments shall, according to law, strengthen the 
supervision and administration of travel agencies an d resident offices of foreign travel agencies, and 
maintain the order of tourism market.   
Article 35  Travel agencies shall accept the s upervision and inspection from tourism 
administration departments on their service quality,  safety, price, financial accounts, payment of 
foreign exchange and other business operations.  
 
The staff members of tourism administration departments shall show their certificates when they 
perform their duties of supervision and inspection.  
 
Article 36  Tourism administration departments shall carry out the annual inspection on travel 
agencies every year. Travel agencies shall submit the annual inspection report, assets statement, 
financial statement and other relevant documents and materials in accordance with the provisions of 
tourism administration departments.   
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. No unit or individual may use the quality guaranty bonds for any 
other purpose.  
 
Chapter VI Penalty Provisions   
 
Article 38  Where anyone violates the provisions of Paragraph 2 of Article 12 or Paragraph 2 of 
Article 16 of these Regulations, the tourism administration departme nt shall order him to stop the 
illegal operation, confis cate the illegal income and impose a fi ne of not less than RMB 10,000 yuan 
but not more than RMB 50,000 yuan concurrently.  
 
Article 39  Where anyone violates the provisions of  Paragraph 1 of Article 17, Article 21, 
Paragraph 1 of Article 22, Article 24, Paragraph 1 of  Article 25, Article 32 or Article 33 of these 
Regulations, the tourism administration department shall order him to make corrections within a S/C/N/217 
Page 2 prescribed time limit, confiscate the illegal income, if  any; if he fails to make corrections within the 
prescribed time limit, order him to suspend busi ness for 15 to 30 days for rectification and may 
concurrently impose a fine of not less than RMB 5,000 yuan but not more than RMB 20,000 yuan; if 
the circumstances are serious, may revoke the Business Operation Permit for Travel Agency.  
 
Article 40  Where anyone violates the provisions of Ar ticle 18 or Paragraph 2 of Article 20 of 
these Regulations, penalties shall be given in ac cordance with the relevant provisions of the 
Trademark Law of the People’s Republic of China and the Law of the People’s Republic of China 
Against Unfair Competition.  
 
Article 41  Where anyone violates the provisions of Ar ticle 26 or Paragraph 1 of Article 35 of 
these Regulations, the tourism administration department shall order him to make corrections within a prescribed time limit and give a warning; if he fa ils to make corrections within the prescribed time 
limit, shall order him to suspend business for 3 to 15  days for rectification and may impose a fine of 
not less than RMB 3,000 yuan but not more than RMB 10,000 yuan concurrently.  
 
Article 42  Where a travel agency is revoked its Business Operation Permit for Travel Agency, it 
shall be revoked its business licen se by the industrial and commercial administration department 
accordingly.  
 
Article 43  The tourism administration department that  accepts the complaint as specified in 
Article 23 of these Regulations shall, if the case is  proved true after inves tigation, order the travel 
agency concerned to make compensation on the basis of actual losses of tourists; if the travel agency 
refuses or is unable to bear the responsibility for compensation, the tourism administration department may make the payment from the quality guaranty bond of the travel agency concerned.  
 
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 Enterpri se 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.  
 Chapter VII Supplementary Provisions  
 Article 46  These Regulations shall apply mutatis mutandis to the establishment of travel 
agencies on the mainland with the investment by  tourism operators from the Hong Kong Special 
Administrative Region, Macao Special Administrative Region and Taiwan region.  
 
Article 47  These Regulations shall be effective as of the date of promulgation. The Interim 
Regulations on Administration of Travel Agencies promulgated by the State Council on May 11, 1985 
shall be repealed simultaneously.    
__________ 