Supplement II to the Mainland and Hong Kong Closer Economic Partnership Arrangement

《内地与香港关于建立更紧密经贸关系的安排》补充协议二

Promulgating Institution: Ministry of Commerce

Promulgating Date: 10/18/2005

颁布机关: 商务部

颁布时间: 10/18/2005

To further enhance the level of economic and trade exchanges and cooperation between the Mainland 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 Mainland and Hong Kong Closer Economic Partnership Arrangement(hereinafter referred to as "Supplement to CEPA") signed on 27 October 2004;

the two sides agreed to sign this Supplement II on further liberalization of trade in goods and trade in services in the Mainland for Hong Kong, and on financial cooperation between both sides.

    为进一步提高内地《安排》中，内地系指中华人民共和国的全部关税领土。与香港特别行政区（以下简称“香港”）经贸交流与合作的水平，根据：

    2003年6月29日签署的《内地与香港关于建立更紧密经贸关系的安排》(以下简称“《安排》”)及于2003年9月29日签署的《安排》附件;

    2004年10月27日签署的《〈安排〉补充协议》,

    双方决定,就内地在货物贸易领域和服务贸易领域对香港扩大开放及双方的金融合作签署本协议。

I. Trade in Goods

(1) From 1 January 2006, the Mainland shall fully implement zero tariff on imported goods of Hong Kong origin2. Imported goods subject to zero tariff must fulfill the rules of origin confirmed after consultation by both sides.

 The rules of origin for goods of Hong Kong origin for which consultations were completed by both sides in 2005 are listed in Annex 1 of this Supplement II. Annex 1 of this Supplement II is a supplement to Table 1 of Annex 2 of "CEPA" – "Schedule on Rules of Origin of Hong Kong Goods Subject to Tariff Preference for Trade in Goods".  

 Both sides agreed to amend the detailed implementation procedures in Article 5 of Annex 1 of "CEPA" – "Arrangements for Implementation of Zero Tariff on Trade in Goods" as follows: 

"(1) Submission

1. From 1 January 2006, Hong Kong manufacturers may submit lists of goods subject to zero tariff to the Hong Kong Trade and Industry Department.

2. The Hong Kong Trade and Industry Department shall, prior to 1 March and 1 September each year respectively, submit the list of goods verified and certified in accordance with relevant rules of the Hong Kong Special Administrative Region Government to the Ministry of Commerce.

(2) Consultation and Promulgation

The Ministry of Commerce shall confirm and then pass the list of goods to the Customs General Administration. The Customs General Administration and the Hong Kong Trade and Industry Department shall enter into consultation on the rules of origin for the relevant goods. The two sides shall complete the consultations on the rules of origin before 1 June and 1 December each year respectively, add the rules of origin of the relevant goods to Table 1 of Annex 2 of "CEPA", and promulgate them.

 (3) Implementation

The Mainland shall, no later than 1 July of the same year and 1 January of the following year respectively, release the relevant imports on zero tariff basis in line with "CEPA" upon presentation of the certificates of origin issued by the Hong Kong issuing authorities."

(2) Article 5 of Annex 2 of "CEPA" – "Rules of Origin for Trade in Goods" is amended as follows:

"5. On the criteria for 'substantial transformation' set out in Article 2 (2) of this Annex, the two sides agree on the following:

(1) the criteria for determining 'substantial transformation' may include 'manufacturing or processing operations', 'change in tariff heading', 'value-added content', 'other criteria' or 'mixed criteria';

1. 'manufacturing or processing operations' refers to the principal manufacturing or processing operations carried out in the area of one side which confer essential characteristics to the goods derived after the operations;

2. 'change in tariff heading' refers to the processing and manufacturing operations of non-originating materials carried out in the area of one side and resulting in a product of a different four-digit tariff heading under the 'Product Description and Harmonized System Codes'. Moreover, no production, processing or manufacturing operations will be carried out in countries or territories other than that side which will result in a change in the four-digit tariff heading;

3. 'value-added content' refers to the total value of raw materials, component parts, labour costs and product development costs exclusively incurred in one side being greater than or equal to 30% of the FOB value of the exporting goods, and that the final manufacturing or processing operations should be completed in the area of that side. The formula for calculation is as follows:

labour costs + product development costs

---------------------------------------------------------  x 100% ≥ 30%

FOB value of the exporting goods

(i) 'product development' refers to product development carried out in the area of one side for the purposes of producing or processing the exporting goods. Development expenses incurred should be related to the exporting goods. These expenses include fees payable for the development of designs, patents, patented technologies, trademarks or copyrights (collectively 'these rights') carried out by the manufacturer himself, fees payable to a natural or legal person in the area of one side for undertaking development of these rights, and fees payable for purchasing these rights owned by a natural or legal person in the area of one side. The fees payable should be clearly identifiable under generally accepted accounting principles and the requirements of 'Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994';

(ii) calculation of the above 'value-added content' will be consistent with generally accepted accounting principles and the 'Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994';

4. 'other criteria' refers to methods agreed by both sides in determining 'substantial transformation', other than 'manufacturing or processing operations', 'change in tariff heading' and 'value-added content' as set out above.

5. 'mixed criteria' refers to the use of two or more of the above criteria in determining origin.

(2) other additional conditions. If the 'substantial transformation' criteria set out in paragraph (1) above are not adequate for determining origin, additional conditions can be used (such as brand requirement, etc) upon agreement by both sides."

       一、货物贸易

    (一)自2006年1月1日起,内地对原产香港的进口货物2全面实施零关税。零关税进口货物须符合双方磋商确定的原产地标准。

    2005年双方已完成磋商的原产香港货物的原产地标准载于本协议附件1。本协议附件1是《安排》附件2表1《享受货物贸易优惠措施的香港货物原产地标准表》的补充。

    双方决定将《安排》附件1《关于货物贸易零关税的实施》第五条的具体实施步骤修改为:

    “(一)提交

    1.自2006年1月1日起,香港的生产企业可向香港工业贸易署提交享受零关税的货物清单。

    2.香港工业贸易署应分别于每年3月1日和9月1日前,将按香港特别行政区政府的有关规定进行核查和认定后的货物清单提交商务部。

    (二)磋商和公布

    商务部对货物清单进行确认后转海关总署。海关总署与香港工业贸易署就有关货物的原产地标准进行磋商。双方应于每年6月1日和12月1日前完成原产地标准的磋商,将有关货物的原产地标准补充列入《安排》附件2表1,并对外公布。

    (三)实施

    内地将分别不迟于当年7月1日和第二年1月1日根据香港发证机构签发的原产地证书,准予有关货物按照《安排》零关税进口。”

    (二)对《安排》附件2《关于货物贸易的原产地规则》中的第五条内容修改为:

    “五、本附件第二条第(二)款所称‘实质性加工’的认定标准,应采用双方同意的下列标准:

    (一)‘实质性加工’的认定标准可采用‘制造或加工工序’、‘税号改变’、‘从价百比’、‘其他标准’和‘混合标准’。

    1.‘制造或加工工序’是指在一方境内进行赋予加工后所得货物基本特征的主要制造或加工工序。

    2.‘税号改变’是指非一方原产材料经过在该方境内加工生产后,所得产品在《商品名称及编码协调制度》中四位数级的税目归类发生了变化,且不再在该方以外的国家或地区进行任何改变四位数级的税目归类的生产、加工或制造。

    3.‘从价百分比’是指完全在一方获得的原料、组合零件、劳工价值和产品开发支出价值的合计与出口制成品离岸价格(fob)的比值应大于或等于30%,并且最后的制造或加工工序应在该方境内完成。具体计算公式如下:

    原料价值+组合零件价值+劳工价值+产品开发支出价值

    ———————————————————————————×100%≥30%

    出口制成品的FOB价格

    (1)‘产品开发’是指在一方境内为生产或加工有关出口制成品而实施的产品开发。开发费用的支付必须与该出口制成品有关,包括生产加工者自行开发、委托该方境内的自然人或法人开发以及购买该方境内的自然人或法人拥有的设计、专利权、专有技术、商标权或著作权而支付的费用。该费用支付金额必须能按照公认的会计准则和《关于实施1994年关税与贸易总协定第7条的协定》的有关规定明确确定。

    (2)上述‘从价百分比’的计算应符合公认的会计准则及《关于实施1994年关税与贸易总协定第7条的协定》。

    4.‘其他标准’,是除上述‘制造或加工工序’、‘税号改变’和‘从价百分比’之外的、双方一致同意采用的确认‘实质性加工’其它方法。

    5.‘混合标准’,是指同时使用上述两个或两个以上的标准确定原产地。

    (二)其他附加条件。当上述第(一)款的‘实质性加工’标准不足以确认原产地时,经双方一致同意,可采用附加条件(如品牌要求等)。”

II. Trade in Services

(1) From 1 January 2006, the Mainland shall further relax the market access conditions in the areas of legal, accounting, audiovisual, construction, distribution, banking, tourism, transport and individually owned stores on the basis of the commitments on liberalization of trade in services under "CEPA" and "Supplement to CEPA". The specific contents are detailed in Annex 2 of this Supplement II.

(2) Annex 2 of this Supplement II 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" and Annex 3 of "Supplement to CEPA" – "Supplements and Amendments 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 two instruments, the provisions of Annex 2 of this Supplement II shall prevail. 

(3) "Service suppliers" as referred to in Annex 2 of this Supplement II shall meet the relevant requirements of Annex 5 of "CEPA" – "Definition of "Service Supplier" and Related Requirements".

       二、服务贸易

    (一)自2006年1月1日起,内地在《安排》和《〈安排〉补充协议》开放服务贸易承诺的基础上,在法律、会计、视听、建筑、分销、银行、旅游、运输和个体工商户等领域进一步放宽市场准入的条件。具体内容载于本协议附件2。

    (二)本协议附件2是《安排》附件4表1《内地向香港开放服务贸易的具体承诺》和《〈安排〉补充协议》附件3《内地向香港开放服务贸易的具体承诺的补充和修正》的补充和修正。与前两者条款产生抵触时,以本协议附件2为准。

    (三)本协议附件2中的“服务提供者”,应符合《安排》附件5《关于“服务提供者”定义及相关规定》的有关规定。

III. Financial Cooperation

(1) The Mainland shall allow qualified Mainland securities companies which belong to the pilot innovation type to set up subsidiaries in Hong Kong in accordance with the relevant requirements.

(2) The Mainland shall allow qualified Mainland futures companies to operate futures business in Hong Kong, including the setting up of subsidiaries.

       三、金融合作

    (一)内地允许符合条件的内地创新试点类证券公司根据相关要求在香港设立分支机构。

    (二)内地允许符合条件的内地期货公司到香港经营期货业务,包括设立分支机构。

IV. Annexes

 The Annexes to this Supplement II form an integral part of this Supplement II.

       四、附件

    本协议的附件构成本协议的组成部分。

V. Coming into Effect

This Supplement II shall come into effect on the day of signature by the representatives of the two sides.

       五、生效

    本协议自双方代表正式签署之日起生效。。

Annexes:1 Schedule on Rules of Origin of Hong Kong Goods Subject to Tariff Preference for Trade in Goods in 2006 (I)(Omitted)

2 Supplements and Amendments II to the Mainland's Specific Commitments on Liberalization of Trade in Services for Hong Kong(Omitted)

附件：1、2006年享受货物贸易优惠措施的香港货物原产地标准表（一） （略）

2、内地向香港开放服务贸易的具体承诺的补充和修正二（略）