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Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
Individually Owned Stores Liberalization Measures under CEPA
| CEPA I |
| Sectors or sub-sectors |
4. Distribution services |
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C. Retailing services (excluding tobacco) |
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Specific commitments |
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1. |
To allow Hong Kong service suppliers to set up wholly-owned retail commercial enterprises in the Mainland1 |
| 2. |
To apply for the setting up of retail commercial enterprises in the Mainland on a wholly-owned, equity joint venture or contractual joint venture basis, Hong Kong service suppliers must fulfill the following conditions:
The average annual sales value of a Hong Kong service supplier in the preceding 3 years is not less than US$100 million; the minimum asset in the previous year is US$10 million; the minimum registered capital for setting up an enterprise in the Mainland is RMB 10 million. For setting up a retail commercial enterprise in the Central and Western Region, the minimum registered capital is RMB 6 million. |
| 3. |
To allow Hong Kong service suppliers to set up retailing enterprises in all cities at the prefectural level in the Mainland, and cities at the county level in Guangdong Province. |
| 4. |
To allow Hong Kong service suppliers to set up wholly owned retailing enterprises in the Mainland for sale of motor vehicles2 |
| 5. |
To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant laws, regulations and administrative regulations, individually owned stores in Guangdong to provide retailing services excluding franchising operation, without being subject to the approval procedures applicable to foreign investments. The sales area of such stores should not exceed 300 square metres. |
1 The retailing services provided by Hong Kong service suppliers in the Mainland in respect of books, newspapers, magazines, pharmaceuticals, pesticides, mulching film, chemical fertilizers, staple food, vegetable oil, edible sugar, cotton and processed oil remain subject to Mainland¡¦s commitments to members of the World Trade Organization.
2 Chain stores with more than 30 outlets remain subject to Mainland¡¦s commitments to members of the World Trade Organization.
| CEPA II |
| Sectors or sub-sectors |
Service sectors (sectors not set out in GNS/W/120) |
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Individually owned stores |
| Specific commitments |
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To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant Mainland laws, regulations and administrative regulations, individually owned stores in all provinces, autonomous regions, municipalities directly under the Central Government in the Mainland without being subject to the approval procedures applicable to foreign investments, to provide retailing services; food and beverage services; hair dressing, beauty treatment and health care services, bathing services and repair services of home electrical appliances and other goods for daily uses under residents services and other services; excluding franchising operation. No more than 8 persons should be engaged in the operation of the individually owned stores, and the business area of such stores should not exceed 300 square meters. |
| CEPA III |
| Sectors or sub-sectors |
Service sectors (sectors not set out in GNS/W/120) |
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Individually owned stores |
| Specific commitments |
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To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant Mainland laws, regulations and administrative regulations, individually owned stores in all provinces, autonomous regions, municipalities directly under the Central Government in the Mainland without being subject to the approval procedures applicable to foreign investments, to provide the following four kinds of services (excluding franchising operation): import and export of goods and technologies; photography and photographic processing services; washing, cleaning and dyeing services; and repair and maintenance of motor vehicles and motorcycles. No more than 8 persons should be engaged in the operation of the individually owned stores, and the business area of such stores should not exceed 300 square meters. |
| 2006 Liberalization Measures |
| Sectors or sub-sectors |
Service sectors (sectors not set out in GNS/W/120) |
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Individually owned stores |
| Specific commitments |
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To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant Mainland laws, regulations and administrative regulations, individually owned stores in all provinces, autonomous regions and, municipalities directly under the Central Government in the Mainland without being subject to the approval procedures applicable to foreign investments, to provide the following services (excluding franchising operation): crop cultivation; animal husbandry; aquaculture; computer repair services; technology exchange and promotion services. No more than 8 persons should be engaged in the operation of the individually owned stores. |
| 2007 Liberalization Measures |
| Sectors or sub-sectors |
Service sectors (sectors not set out in GNS/W/120) |
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Individually owned stores |
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Specific commitments |
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To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant Mainland laws, regulations and administrative regulations, individually owned stores in all provinces, autonomous regions and municipalities directly under the Central Government in the Mainland without being subject to the approval procedures applicable to foreign investments, to provide the following services (excluding franchising operation): computer services, software services; goods handling and loading/unloading services related to road transport, other transport services3 ;storage and warehousing4 ; and translation and interpretation5 services. No more than 8 persons should be engaged in the operation of the individually owned stores. |
3 Excluding international freight forwarding agency and courier services.
4 The business area for individually owned stores providing storage and warehousing services should not exceed 300 square meters.
5 Confined to business activities only.
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| 2008 Liberalization Measures |
| Sectors or sub-sectors |
Service sectors (sectors not set out in GNS/W/120) |
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Individually owned stores |
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Specific commitments |
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1. |
To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant Mainland laws, regulations and administrative regulations, individually owned stores in all provinces, autonomous regions and municipalities directly under the Central Government in the Mainland without being subject to the approval procedures applicable to foreign investments, to provide the following services (excluding franchising operation): building-cleaning services and advertising production services. No more than 8 persons should be engaged in the operation of the individually owned stores. |
| 2. |
To allow Hong Kong permanent residents with Chinese citizenship to set up, in accordance with the relevant Mainland laws, regulations and administrative regulations, individually owned stores in Guangdong Province without being subject to the approval procedures applicable to foreign investments, to provide the following services (excluding franchising operation): trade brokerage and commission agency (excluding auction) and renting and leasing services (excluding the renting and leasing of housing premises). No more than 8 persons should be engaged in the operation of the individually owned stores. |
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