Ministry of Commerce Supplementary Agreement No.2 on Mainland and Macao Closer Economic Partnership Arrangement Ministry of Commerce October 21, 2005 In order to further increase the level of economic exchanges and cooperation between the mainland and Macau Special Administrative 1. Trade in Goods (1) As of January 1, 2006, Mainland implements Zero Tariff for imported Goods of Macau Origin. The Zero Tariff goods shall accord with The standards of place of origin of goods of Macau Origin have been settled by both sides is listed in the Appendix 1 of this Agreement, Both sides decided to amend the specific measures in Article 5 in Appendix 1, namely About the Implementation of Zero Tariff of Trade I. Submission (A) As of January 1, 2006, manufacturing enterprises in Macau could submit detailed list of goods that enjoy zero tariff to Macao Economic (B) Macao Economic Services shall submit the lists, after verification and cognizance of the Macau SAR government, to Ministry of Commerce II. Negotiation and Promulgation After the cognizance of Ministry of Commerce, the list shall be transferred to General Administration of Customs, where negotiation III. Implementation The mainland shall qualify the zero-tariff-import of goods according to CEPA, based on the Certificate of Place of Origin issued by (2) Amend the content in Article 5 in Appendix 2, namely About the Rules on Place of Origin of Trade in Goods, of CEPA to: ” V. In Item 2 of Article 2 of the Appendix, the cognizance standards of “substantial processing” shall adopt following standards (1) The cognizance of “substantial processing” could adopt “manufacturing or processing procedure”, “change of tax code”, “ad valorem (A) Manufacturing or processing procedure means the main manufacturing or processing procedure, conducted in the boundary of one side, (B) Change of tax code means that after processing in the boundary of one side, the outcome of the non-single-side material of origin (C) Ad valorem percent could be calculated in the following formula: (Value of Raw Material + Value of Component Parts + Value of Labor + Payment Value of Product Development) / FOB Value of Exporting (D) Other standards means other substantial processing methods agreed by both sides, besides the above-mentioned “manufacturing or processing (E) Mixed standards means use two or more standards to settle the place of origin. (2) Other additional conditions. When the above-mentioned “substantial processing” standards are not enough for settling the place of origin, other additional conditions 2. Trade in services (1) As of January 1, 2006, on the basis of CEPA and Supplementary Agreement of CEPA commitment on opening up service trade, condition (2) Appendix 2 of this Agreement is the supplement and amendment of Chart 1 of Appendix 4 in CEPA and Appendix 3 of Supplementary Agreement (3) “Service provider” in Appendix 2 of this Agreement shall be in line with relative regulations mentioned in Appendix 5 of CEPA. 3. Appendix: The Appendix shall be considered as part of the Agreement. 4. Take Effect This Agreement shall take effect as of the date of formal subscription of both sides. This Agreement is written in the Chinese languages in duplicate. This Agreement was signed on October 21, 2005, Macao. Vice Minister of Ministry of Commerce of PRC Secretary for Economy and Finance of Macao Special Administrative Region of PRC |
Ministry of Commerce
2005-10-21