(Approved by the State Council on October 29, 1998 and promulgated¹ by Order No. 11 of the State Tourism Administration and the Ministry² of Foreign Economic Relations and Trade on December 2, 1998)
颁布日期：19981202 　实施日期：19981202 　颁布单位：国务院

　　Article 1 These Procedures are formulated³ in accordance with the Law of the People's Republic of China Concerning Chinese-Foreign Joint⁴ Ventures and the Regulations on Travail⁵ Services Administration as well as relevant laws and regulations with a view to further extending the opening up of the tourism industry to the outside world and promoting the development of the tourism industry.

　　Article 2 These Procedures shall be applicable to travel services established with Chinese and foreign investments by foreign companies or enterprises and Chinese companies or enterprises within the territory of China(hereinafter referred to as travel services with joint investments for abbreviation).

　　Article 3 For application for the establishment of a travel service with joint investments, the Chinese joint venturer should meet the following criteria⁶:

　　(1)It shall be an international travel service;

　　(2)Its average annual number of overseas tourists?? in 3 years prior to the application exceeds 30000 man/day;

　　(3)Total sales volume of average annual tourism business in 3 years prior to the application exceeds RMB 50 million Yuan; and

　　(4)It must be an official member of China Tourism Association.

　　Article 4 For application for the establishment of a travel service with joint investments, the foreign joint venturer should meet the following criteria:

　　(1)It shall be a travel service operating international tourism or an enterprise of a travel service operating international tourism with all capital;

　　(2)It has an annual sales volume from tourism business of more than US$ 50 million;

　　(3)It has joined international or national computer network for advance booking or has formed its own computer network for advance booking; and

　　(4)It must be an official member of its national tourism association.

　　Article 5 The travel service with joint investments to be established should meet the following criteria:

　　(1)It has a registered capital of not less than RMB 5 million Yuan;

　　(2)Its enterprise form shall be a limited liability company;

　　(3)The percentage of contribution of the registered capital from the Chinese party shall not be under 51%;

　　(4)Its legal representative shall be appointed by the Chinese party;

　　(5)It has a business site, business facilities and management staff that meet the requirements; and

　　(6)The duration of joint venture shall not exceed 20 years.

　　Article 6 A travel service with joint investments shall, pursuant to the provisions of management of entry tourism by international travel services, effect payment of quality guaranty fund.

　　Article 7 Procedures for the examination and approval of a travel service with joint investments shall be as follows:

　　(1)The Chinese joint venturer shall submit such documents as the project proposal and feasibility study for the travel service with joint investments to the department of tourism administration of the province(autonomous region, municipality directly under the Central Government)or municipality under direct planning by the state of the locality wherein the travel service is to be located. Those documents shall, upon preliminary examination of the department of tourism administration at the provincial⁸ level, be submitted to the State Tourism Administration.

　　Where the Chinese joint venturer is an enterprise under central management, those documents shall, upon preliminary examination of its competent department, be submitted to the State Tourism Administration.

　　The State Tourism Administration shall, pursuant to the laws and regulations of the state concerning tourism administration process the examination and approval of the documents submitted.

　　(2)The Chinese joint venturer shall, upon receipt of the official reply of approval of the State Tourism Administration, submit such documents as the contract on the establishment of a travel service with joint investments and its articles of association to the provincial level competent department of foreign economic relations and trade of the locality. The provincial-level competent department of foreign economic relations and trade shall, upon preliminary examination, submit those documents to the Ministry of Foreign Economic Relations and Trade.

　　Where the Chinese joint venturer is an enterprise under central management, those documents shall, upon preliminary examination of its competent department, be submitted to the Ministry of Foreign Economic Relations and Trade.

　　The Ministry of Foreign Economic Relations and Trade shall, pursuant to the laws and regulations of the state concerning foreign business investment, process the examination and approval of the documents submitted.

　　(3)The Chinese joint venturer shall, on the strength of the certificate of approval of enterprise with foreign business investment issued by the Ministry of Foreign Economic Relations and Trade and the business permit for travel service operations issued by the State Tourism Administration and pursuant to the provisions, go through the formalities of registration⁹ and taxation¹⁰ registration for the project the establishment of which has been approved.

　　Article 8 The following documents should be presented for the application for the establishment of a travel service with joint investments:

　　(1)certification of qualifications of the Chinese joint venturer including a copy of the business licence, business permit for travel service operations, annual business reports of the 3 years prior to the application and certification of the membership of the tourism association;

　　(2)certification of qualifications of the foreign joint venturer including a copy of the registration, certificate of bank credit standing¹¹, certification of financial status issued by an accountant firm, certificate of access to the net provided by the compute⁷ company concerned, certification of the membership of national tourism association and the annual report of the year prior to the application;

　　(3)the project proposal of the travel service with joint investments;

　　(4)the feasibility study of the travel service with joint investments;

　　(5)the contract and articles of association of the travel service with joint investments; and

　　(6)other materials the presentation of which is required under laws and regulations and by the examination and approval organs.

　　Article 9 Each foreign joint venturer shall only invest in the establishment of one travel service with joint investments within the territory of China.

　　Article 10 No permission shall be granted temporarily during the experimental phase for the establishment of branch(es) of travel services with joint investments.

　　Article 11 Travel services with joint investments may operate entry tourism business and domestic tourism business.

　　Article 12 No permission shall be granted temporarily to travel services with joint investments for management of the business of Chinese citizens going to foreign countries and the Hongkong Special Administrative¹² Region and the regions of Macao and Taiwan for tourism.

　　Article 13 Management by travel services with joint investments of special tourism projects and projects of tourism in special areas must be submitted to the State Tourism Administration and departments concerned for examination and approval.

　　Article 14 Travel services with joint investments shall not organize and arrange projects containing contents of obscenity, gambling¹³ and drug taking and other items harmful to social ethics¹⁴ and people's physical and mental health; shall not organize projects containing contents damaging state interests and national dignity of the People's Republic of China; and shall not organize projects containing contents prohibited under Chinese laws and regulations.

　　Article 15 Employment of tour guides by travel services with joint investments within the territory of China shall be processed pursuant to relevant state provisions.

　　Article 16 Travel services with joint investments shall be subject to trade administration of the department of tourism administration.

　　Article 17 Travel services with joint investments shall, pursuant to provisions, submit financial, accounting¹⁵ and statistical¹⁶ statements to the department of tourism administration and other departments concerned and be subject to business inspection¹⁷.

　　Article 18 The foreign exchange revenue and expenditure¹⁸ of travel services with joint investments shall be handled pursuant to the relevant procedures for enterprises with foreign business investment.

　　Article 19 Travel services with joint investments shall abide¹⁹ by the laws and regulations of the People's Republic of China, be subject to the jurisdiction²⁰ of laws and regualtions of China, and their just management activities and legitimate²¹ rights and interests shall be protected by the laws and regulations of China.

　　In the event of acts on the part of travel services with joint investments in violation²² of the laws and regulations of China, they shall be handled pursuant to the relevant laws and regulations.

　　Article 20 Whoever violates the provisions of these Procedures shall be imposed penalty by the department of tourism administration pursuant to the Regulations on Travel Services Administration and the Rules for the Implementation²³ of the Regulations on Travel Services Administration.

　　Article 21 Interim²⁴ Measures for the Administration of Examination and Approval of Establishment of Category I Travel Services with Chinese and foreign investments in National Tourism Holiday Areas shall continue to be effective during the implementation of these Procedures.

　　Article 22 For establishment of travel services with joint investments with joint investments by investors²⁵ of the Hongkong Special Administrative Region and regions of Macao and Taiwan and the domestic investors, reference shall be made to these Procedures.

　　Article 23 The State Tourism Administration and the Ministry of Foreign Economic Relations and Trade shall be responsible for the interpretation²⁶ of these Procedures.

　　Article 24 These Procedures shall go into force as of the date of promulgation²⁷.

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