Regulations on the Administration of Travel Agencies
　　(Enacted by Decree No. 205 of the State Council of the People's Republic of China on October 15, 1996;amended according to the State Council's Decision on the Amendments to the Regulations on the Administration of Travel Agencies on December 11, 2001)Chapter I General Provisions

　　Article 1 These Regulations are formulated with a view to strengthening the administration of travel agencies, protecting the legitimate rights and interests of tourists and travel agencies, maintaining the order of tourist market, and promoting the healthy development of the tourist industry

　　Article 2 These Regulations shall apply to travel agencies formed within the territory of the People's Republic of China and permanent offices set up within the territory of the People’s Republic of China by foreign travel agencies(hereinafter referred to as the “permanent offices of foreign travel agencies”)

　　Article 3 A “travel agency” in these Regulations refers to any for-profit enterprise engaged in tourist businesses.

　　A “tourist business” in these Regulations refers to any operating activity of providing tourists with paid services including, but not limited to, the vicarious handling of procedures for entry and exit of a country and visas, solicitation and reception of tourists, and arrangement for meals and accommodations.

　　Article 4 The competent authorities on tourism under the State Council shall be responsible for the national super-vision and management of travel agencies.

　　The authorities in charge of administration of tourist affairs under the local people's governments at or above the county level shall be responsible for the supervision and management of travel agencies within their respective administrative regions.

　　The authorities referred to in the preceding two paragraphs are hereinafter together referred to as the “administrative tourism authorities”.

　　Article 5 Except otherwise provided for in these Regulations, according to their business scopes, travel agencies shall be divided into international travel agencies and domestic travel agencies.

　　The business scope of international travel agencies may consist of inbound tourist business, outbound tourist business and domestic tourist businesses.

　　The business scope of domestic travel agencies shall consist of domestic tourist businesses only.

　　Chapter Ⅱ Formation of a Travel Agency

　　Article 6 The following conditions shall be met for the formation of a travel agency:

　　(1)Having fixed premises for business operation;

　　(2)Having necessary facilities for business operation;

　　(3)Having trained personnel with certificates issued by the administrative tourism authorities under the people's governments at or above the level of province, autonomous regions or cities directly under the Central Government; and

　　(4) Having the registered capital and quality bond set forth in Article 7 and 8 of these Regulations

　　Article 7 The registered capital of a travel agency shall satisfy either of the following requirements:

　　(1)For an international travel agency, its registered capital shall not be less than 1.5 million Chinese yuan; and

　　(2) For a domestic travel agency, its registered capital shall not be less than 300,000 Chinese yuan.

　　Article 8 While applying for the formation of a travel agency, the applicant shall submit a quality bond to the administrative tourism authorities pursuant to either of the following standards:

　　(1)The amount of quality bond to be submitted by an international travel agency engaged in inbound tourist business shall be 600,000 Chinese yuan, while the amount of quality bond to be submitted by an international travel agency engaged in outbound tourist business shall be 1mIlion Chinese yuan; and

　　(2)The amount of quality bond to be submitted by a domestic travel agency shall be 300,000 Chinese yuan.

　　The ownership of a quality bond and its accruing interest during the possession and management by the administrative tourism authorities shall belong to the travel agency; however, the administrative tourism authorities may draw a certain amount of management fee from the interest, according to relevant State provisions.

　　Article 9 An application for the formation of an international travel agency shall be filed with the authorities in charge of administration of tourist affairs under the people's government of a province, autonomous region or city directly under the Central Government where the intended international travel agency is located; after being examined and approved by the authorities in charge of administration of tourist affairs under the people's government of a province, autonomous region or city directly under the Central Government, the application shall be submitted to the competent authorities on tourism under the State Council for review and approval

　　An application for the formation of a domestic travel agency shall be filed with and approved by the authorities in charge of administration of tourist affairs under the people’s government of a province, autonomous region or city directly under the Central Government where the intended domestic travel agency is located.

　　Article 10 For an application for the formation of a travel agency, the following documents shall be submitted:

　　(1) Written formation application;

　　(2)Feasibility report on the formation of the intended travel agency;

　　(3) Articles of association of the intended travel agency;

　　(4) Curriculum vitae and certificates as required in Article6(3) of these Regulations of the president and vice-president(s) of the intended travel agency;

　　(5) Capital credit certificate issued by a bank with which the intended travel agency opens an account, and capital verification report issued by a certified public accountant and his or her accountants' firm or auditors' firm;

　　(6)Certificate(s) of premises for business operation; and

　　(7) Certificate(s) of condition of equipment for business operation.

　　Article 11 After receiving a written application, the administrative tourism authorities shall conduct examination thereof according to the following principles:

　　(1)Consistent with the development plan on tourism;

　　(2) Consistent with the needs of tourist market; and

　　(3)Meeting the conditions as set forth in Article 6 of these Regulations.

　　Within 30 days of the date of receiving the written application, the administrative tourism authorities shall make a decision on approval or not, and notify the applicant.

　　Article 12 The administrative tourism authorities shall issue to the applicant whose application has been examined and approved a Travel Agency Business Operation Permit, by which the applicant shall collect a business license at the administrative authorities on industry and commerce afterwards.

　　Those without obtaining the Travel Agency Business Operation Permit shall not carry out tourist businesses

　　Article 13 In case of changing its business scope, a travel agency shall make a re-registration with the administrative authorities on Indus and commerce, after such a change has been examined and approved by the original administrative tourism authorities on examination and approval.

　　In case of changing its name, premises for business operation or legal representative or ceasing or suspending business operation, a travel agency shall make a re-registration or cancellation registration for such a change with the administrative authorities on industry and commerce, and the change shall be filed with the original administrative tourism authorities on examination and approval.

　　Article 14 The administrative tourism authorities shall implement a public announcement system in respect of travel agencies. Public announcements consist of announcements on starting of business, change of name, change of business scope, cessation of business, and suspension of permit.

　　Article 15 A travel agency with the annual tourist reception in number not less than 100,000 may set up non-legal-person branch(es) (hereinafter referred to as the “branch(es)”).

　　For every branch set up, an international travel agency shall add 750,000 Chinese yuan to its registered capital and300,000 Chinese yuan to its quality bond, while a domestic travel agency shall add 150,000 Chinese yuan to its registered capital and 50,000 Chinese yuan to its quality bond.

　　A travel agency and its branch(es) shall be unified in management, finance, solicitation and reception.

　　A branch of a travel agency shall be subject to the super-vision and management by the authorities in charge of ad-ministration of tourist affairs under the local people's governments at the level of county or above where such a branch is located

　　Article 16 Any formation of permanent office of a foreign travel agency in the People's Republic of China shall be subject to the approval by the competent authorities on tour-ism under the State Council.

　　A permanent office of a foreign travel agency may only carry out tourist consulting, liaison and publicity activities, and shall not carry out tourist businesses.

　　Chapter Ⅲ Business Operation of a Travel Agency

　　Article 17 A travel agency shall carry out its businesses in accordance with its approved business scope.

　　In its business operation, a travel agency shall adhere to principles of voluntaries, equity, fairness, honesty and credibility, and conform to business ethics.

　　Article 18 A travel agency shall not carry out businesses or damage competitors by any unfair means as follows:

　　(l)Falsifying the registered trademark(s) of any other travel agency;

　　(2)Unauthorized use of the name of any other travel agency;

　　(3) Defamation of any other travel agency;

　　(4)Authorizing any non-travel-agency unit or individual as its agent to carry out tourist businesses; or

　　(5)Any other act interfering with the order of tourist market.

　　Article 19 A travel agency shall enter into written con-tracts with its employed business personnel on the rights and obligations of both sides.

　　Without consent from the travel agency, its business personnel shall not disclose, use or permit others to use the business secrets of the travel agency known by them.

　　Article 20 A travel agency shall protect the legitimate rights and interests of tourists.

　　The information on tourist services provided by a travel agency for the tourists must be true, reliable, and free of false introduction.

　　Article 21 When organizing a tour, a travel agency shall buy tourist accident insurance for the tourists, and guarantee the services provided are consistent with the requirements for the personal and property safety of the tourists; and shall make true statements and clear warnings to the tourists of any possible event endangering the personal or property safety of the tourists, and take protective measures against the happening of such dangers.

　　Article 22 A travel agency shall charge travel services provided by it to the tourists according to the State provisions; and shall obtain prior consent from the tourists for any additional charge needed for any additional service in the travel.

　　A travel agency shall issue service documents for paid services provided by it to tourists according to the State provisions.

　　Article 23 A tourist has the right to complain losses incurred to the administrative tourism authorities, if:

　　(I)The travel agency concerned has, for its own fault, failed to reach the service quality standards agreed upon in the contract;

　　(2)The services provided by the travel agency have failed to reach the State standards or industry standards; or

　　(3)The bankruptcy of the travel agency has caused the tourist suffering losses of the prepaid travel costs.

　　The administrative tourism authorities shall handle com-plaints accepted from tourists according to the provisions of these Regulations.

　　Article 24 The guides employed to receive tourists and leaders to organize tourists for outbound tours by a travel agency shall hold certificates issued by the administrative tourism authorities under the people's governments at or above the level of province, autonomous regions and cities directly under the Central Government.

　　Article 25 When organizing tourists for an outbound tour, a travel agency shall choose a travel agency with good reputation duly formed in the relevant country or region, and authorize it with the reception work only after signing a writ-ten contract.

　　If the rights and interests of tourists are damaged for default of the overseas travel agency, the domestic travel agency organizing the outbound tour shall assume the liability for damages, with right of recourse to the defaulting over-seas travel agency.

　　Article 26 When soliciting and receiving tourists, a travel agency shall make complete records and keep relevant documents and materials for future examinations by the administrative tourism authorities.

　　Chapter Ⅳ Special Provisions on Foreign-Funded Travel Agencies

　　Article 27 The provisions of this Chapter shall apply to foreign-funded travel agencies; and where this Chapter is silent, relevant provisions of these Regulations shall apply

　　The foreign-funded travel agencies aforementioned in-dude Chinese-foreign equity travel agencies and Chinese-foreign contractual travel agencies duly formed through joint investment by foreign tourist businessmen and Chinese investors.

　　Article 28 The minimum amount of registered capital of a Chinese-foreign equity travel agency shall be 4 million Chinese yuan, which may be adjusted during a period deter-mined by the competent authorities on tourism under the State Council in conjunction with the competent authorities on foreign trade and economy under the State Council.

　　The investment ratio of the Chinese and foreign investors in a Chinese-foreign equity travel agency shall be deter-mined by the competent authorities on tourism under the State Council in conjunction with the competent authorities on foreign trade and economy under the State Council ac-cording to relevant provisions.

　　The provisions in the preceding two paragraphs shall apply, mutatis mutandis, to the minimum amount of registered capital and investment ratio of in a Chinese-foreign contractual travel agency.

　　Article 29 The Chinese investor in a foreign-funded travel agency shall meet the following conditions:

　　(1)Being a company duly formed;

　　(2)Having not committed any recorded lawbreaking or material irregularity over the last three years; and

　　(3) Satisfying the requirements of the competent authorities on tourism under the State Council for due care and a special industry.

　　Article 30 A foreign tourist businessman in a foreign-funded travel agency shall meet the following conditions:

　　(1)Being a travel agency or undertaking, mainly engaged in tourist businesses;

　　(2)Having an annual turnout not less than 40 million U.S. dollars; and

　　(3) Being a member of the tourist industry association in its own country.

　　Article 31 To form a foreign-funded travel agency, the Chinese investors shall be responsible to submit to the competent authorities on tourism under the State Council an application, documents set forth in Article 10 of these Regulations and certificates meeting the conditions set forth in Article 30 of these Regulations. The competent authorities on tourism under the State Council shall finish examining the application and make a decision on approval or not within 60days of the date of accepting the application. If the application is approved, a written document of Opinions on a Decision to Approve the Business Operation of a Foreign-Funded Travel Agency shall be issued; otherwise, a written notice shall be given to the applicant with reasons for the disapproval

　　With the Opinions on a Decision to Approve the Business Operation of a Foreign-Funded Travel Agency and the contract and articles of association signed by the investors, the applicant shall submit an application for forming a Chinese-foreign funded travel agency to the competent authorities on foreign trade and economy under the State Council. The competent authorities on foreign trade and economy under the State Council shall finish examining the contract and articles of association of the intended foreign-funded travel agency and make a decision on approval or not within the time limit prescribed by a law or administrative regulations as of the date of accepting the application. If the application is approved, a Certificate of Approval of a Foreign-Funded Enterprise shall be issued, and the applicant shall be notified of collecting the Travel Agency Business Operation Permit at the competent authorities on tourism under the State Council; otherwise, a written notice shall be given to the applicant with reasons for the disapproval.

　　With the Travel Agency Business Operation Permit and the Certificate of Approval of a Foreign-Funded Enterprise, the applicant shall conduct procedures for registration with the administrative authorities on industry and commerce

　　Article 32 A foreign-funded travel agency may carryout inbound tourist business and domestic tourist business.

　　A foreign-funded travel agency shall not set up any branch

　　Article 33 A foreign-funded travel agency shall not carryout any outbound tourist business in respect of Chinese nationals and tourist business of Chinese nationals other than those in Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region going to any of the three regions.

　　Chapter Ⅴ Supervision and Inspection

　　Article 34 The administrative tourism authorities shall strengthen the supervision and management of travel agencies and permanent offices of foreign travel agencies and maintain the order of tourist market according to law.

　　Article 35 Travel agencies shall be subject to the super-vision and inspection by the administrative tourism authorities in respect of their service quality, tourist safety, external quotation, financial account, foreign exchange incomes and expenditures and other operating condition.

　　When performing the supervision and inspection, the working personnel of the administrative tourism authorities shall show certificates.

　　Article 36 The administrative tourism authorities shall conduct an annual inspection of a travel agency. The travel agency shall submit the annual inspection report, balance sheet, financial statement and other relevant documents and materials according to the provisions of the administrative tourism authorities.

　　Article 37 The administrative tourism authorities shall strengthen the financial management of quality bonds, and use the quality bonds for compensation for the economic losses of tourists according to relevant State provisions. Any individual or entity shall not misappropriate the quality bonds.

　　Chapter VI Penalty Provisions

　　Article 38 For a violation of paragraph 2 of Article 12 or paragraph 2 of Article 16 of these Regulations, the administrative tourism authorities shall order cessation of illegal business operation, forfeiture of illegal incomes and imposition of a fine not less than 10,000 Chinese yuan but not more than 50, 000 Chinese yuan.

　　Article 39 For a violation of paragraph I of Article 17,Article 21, paragraph 1 of Article 22, Article 24, paragraph 1 of Article 25, Article 32, or Article 33 of these Regulations, the administrative tourism authorities shall order rectification within a prescribed time limit; forfeiture of illegal incomes, if any; cessation of business operation for consolidation for 15to 30 days and a fine not less than 5,000 Chinese yuan but not more than 20,000 Chinese yuan, if such a rectification fails; and suspension of the Travel Agency Business Operation Permit, if the circumstances are serious.

　　Article 40 For a violation of Article 18 or paragraph 2 of Article 20 of these Regulations, penalties shall be imposed in accordance with the relevant provisions of the Trademark Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China

　　Article 41 For a violation of Article 26 or paragraph I of Article 35 of these Regulations, the administrative tourism authorities shall order rectification within a prescribed time limit and give a warning; and order cessation of business operation for consolidation for 3 to 15 days and a fine not less than 3,000 Chinese yuan but not more than 10,000 Chinese yuan, if such a rectification fails.

　　Article 42 If the Travel Agency Business Operation Permit of a travel agency has been suspended, the administrative authorities on industry and commerce shall suspend the corresponding business license.

　　Article 43 If a complaint accepted according to Article23 of these Regulations is proved to be true after investigation, the administrative tourism authorities shall order the travel agency concerned to compensate for the actual losses of the tourist; and may perform appropriation from the quality bond submitted by the travel agency, if the travel agency refuses or is unable to assume the compensation liability.

　　Article 44 For a violation of these Regulations under either of the following circumstances by the administrative tourism authorities or the competent authorities on foreign trade and economy, administrative penalties shall be imposed on the chief officers liable and other personnel directly liable according to law:

　　(1)Refusal to issue the Travel Agency Business Operation Permit or the Certificate of Approval of a Foreign-Funded Enterprise to a qualified applicant to whom the same should be issued; or

　　(2)Unauthorized issuing of the Travel Agency Business Operation Permit or the Certificate of Approval of a Foreign-Funded Enterprise to an unqualified applicant.

　　Article 45 Criminal liabilities shall be pursued, if the working personnel of the administrative tourism authorities commit dereliction of duties or abuse of powers violating the criminal provisions; or administrative penalties shall be imposed according to law, if a crime is not constituted.

　　Chapter Ⅶ Supplementary Provisions

　　Article 46 These Regulations shall apply, mutatismutand is, to the formation of travel agencies in the Chinese mainland invested by tourist businessmen in the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region

　　Article 47 These Regulations shall come into force as of the date of enactment. The Interim Regulations on the Ad-ministration of Travel Agencies enacted on May 11, 1985,shall be abolished simultaneously.