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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
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Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

Distribution Services

Liberalisation Measures under CEPA

The Agreement on Trade in Services covers and consolidates commitments relating to liberalisation of trade in services provided in CEPA and its Supplements and also the Agreement between the Mainland and Hong Kong on Achieving Basic Liberalisation of Trade in Services in Guangdong.
 
Agreement on Trade in Services
Liberalisation Measures under Cross-border Services (Positive List)
Sectors or
Sub-sectors
  • 4. Distribution Services
    • B. Wholesale trade services (CPC622)
      C. Retailing services (CPC631, 632, 6111, 6113, 6121)
Specific
commitments
To allow contractual service providers employed by Hong Kong service suppliers, in the mode of movement of natural persons, to provide services under this sector or sub-sector in the Mainland.1
Liberalisation Measures under Cultural Services (Positive List)
Sectors or
Sub-sectors
  • 4. Distribution services
    • B. Wholesale trade services (wholesale trade of books, newspapers, magazines, cultural relics)
Specific
commitments
  1. To allow wholesale trade enterprises, established by Hong Kong service suppliers in the Mainland on a wholly-owned basis, to operate services in respect of books, newspapers, magazines.2
  2. The minimum registered capital required for Hong Kong service suppliers to set up publication distribution enterprises in the Mainland follows the requirements applicable to Mainland enterprises.3
 
Sectors or
Sub-sectors
  • 4. Distribution services
    • C. Retailing services (retailing of books, newspapers, magazines, cultural relics)
Specific
commitments
  1. To allow retail trade enterprises, established by Hong Kong service suppliers in the Mainland on a wholly-owned basis, to operate services in respect of books, newspapers, magazines.4
  2. For the same Hong Kong service supplier which operates more than 30 stores accumulatively in the Mainland, if the commodities for sale include books, newspapers, magazines, etc. and the aforementioned commodities are of different brands and come from different suppliers, the Hong Kong service supplier is allowed to engage in retailing services of books, newspapers, magazines on a wholly-owned or equity joint venture basis. 5
  3. The minimum registered capital required for Hong Kong service suppliers to set up publication distribution enterprises in the Mainland follows the requirements applicable to Mainland enterprises.6
  4. To allow contractual service providers employed by Hong Kong service suppliers, in the mode of movement of natural persons, to provide services under this sector or sub-sector in the Mainland.7
Reserved Restrictive Measures under Commercial Presence (Negative List)
Sector
  • 4. Distribution Services
Sub-sector
    • A. Commission agents' services (CPC621)
Obligations
concerned
National Treatment
Reserved
Restrictive
Measures
Commercial Presence

Apply national treatment.
 
Sector
  • 4. Distribution Services
Sub-sector
    • B. Wholesale trade services (CPC622, except wholesale trade services of books, newspapers, magazines, cultural relics8)
Obligations
concerned
National Treatment
Reserved
Restrictive
Measures
Commercial Presence
  1. Not to engage in purchase of staple food and wholesale services of staple food, cotton, vegetable oil, edible sugar and crop seeds.
  2. For engaging in the construction and operation of large-scale wholesale markets of agricultural products, the Mainland party shall be the controlling shareholder.
 
Sector
  • 4. Distribution Services
Sub-sector
    • C. Retailing services (CPC631, 632, 6111, 6113, 6121, except retailing services of books, newspapers, magazines, cultural relics9)
Obligations concerned
National Treatment
Reserved Restrictive
Measures
Commercial Presence
  1. Not to provide retailing services of tobacco.
  2. For gasoline stations chain set up by the same Hong Kong service supplier having more than 30 branch stores selling different types and brands of processed oil coming from multiple suppliers, the Mainland party shall be the controlling shareholder.
 
Sector
  • 4. Distribution Services
Sub-sector
    • D. Franchising (CPC8929)
Obligations concerned
National Treatment
Reserved Restrictive
Measures
Commercial Presence
Apply national treatment.
 
Sector
  • 4. Distribution Services
Sub-sector
    • E. Other distribution services (Except the auction of cultural relics10)
Obligations concerned
National Treatment
Reserved Restrictive
Measures
Commercial Presence
  1. The setting up and operation of duty-free stores shall comply with the relevant Mainland regulations.
  2. In the application for setting up direct selling enterprises, applicants shall have undertaken direct selling activities for over three years outside the border. Direct selling enterprise or any of its branches are not allowed to recruit personnel outside the border as direct sales personnel. Personnel outside the border are not allowed to undertake vocational training of direct sales personnel.

1 Covering the liberalisation measures provided in CEPA Supplement X.
2 Covering the liberalisation measures provided in CEPA Supplement.
3 Covering the liberalisation measures provided in CEPA Supplement VI.
4 Covering the liberalisation measures provided in CEPA Supplement.
5 Covering the liberalisation measures provided in CEPA Supplement II, Supplement III and the newly added liberalisation measures in this Agreement.
6 Covering the liberalisation measures provided in CEPA Supplement VI.
7 Covering the liberalisation measures provided in CEPA Supplement X.
8 "Wholesale trade services of books, newspapers, magazines, cultural relics" belongs to areas covered by Table 4 (Cultural Services Positive List) of Annex 1 of this Agreement.
9 "Retailing services of books, newspapers, magazines, cultural relics" belongs to areas covered by Table 4 (Cultural Services Positive List) of Annex 1 of this Agreement.
10 "Auction of cultural relics" belongs to areas covered by Table 4 (Cultural Services Positive List) of Annex 1 of this Agreement.