This English document is coming from the "LAWS AND REGULATIONS OF THE

This English document is coming from the "LAWS AND REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7) which is compiled by the Brueau of Legislative Affairs of the State Council of the People's Republic of China, and is published by the China Legal System Publishing House.

In case of discrepancy, the original version in Chinese shall prevail.

Whole Document INTERIM REGULATIONS ON THE ADMINISTRATION OF TOURIST AGENCIES (Promulgated by the State Council on May 11, 1985) Article 1 These Regulations are formulated to strengthen the administration of tourist agencies, to protect the lawful rights and interests of tourists, and to promote the development of the tourist industry.

Article 2 "Tourist agencies" (or tourist companies, or other similar organizations of the same nature; the same below) refer to those enterprises which are established according to law, have the status of legal persons, are engaged in soliciting and receiving tourists and in organizing tourist activities, and conduct business accounting independently.

Article 3 Tourist agencies shall, in accordance with the principle of expanding the friendly contacts among peoples, enriching the socialist cultural life and promoting the prosperity of socialist tourist economy, conduct operational activities for the advancement of socialist spiritual civilization and material civilization.

Article 4 The tourism administration department shall, in its administration of tourist agencies, adopt the policy of unified leadership, graded administration, and decentralized operations.

Article 5 The following terms used in these Regulations, except as otherwise provided in the articles of these Regulations, shall convey the meanings as defined below: (1) "Solicit" refers to the efforts made by a tourist agency in carrying out publicity and promotion activities both at home and abroad, as well as the organizational work so involved, in accordance with the scope of business approved by the competent authorities.

(2) "Receive" refers to the operational activities of a tourist agency which, at the request of tourists, include making travel plans and arrangements for meals, accommodation, transportation and sightseeing.

(3) "Tourism administration department" refers to the National Tourism Administration and the tourism bureaus in various provinces, autonomous regions, and municipalities directly under the Central Government, as well as the corresponding administrative organs in municipalities and counties.

Article 6 Tourist agencies shall be divided into three categories according to the scope of their business: Category 1: Tourist agencies that handle such business as both soliciting tourists abroad and making arrangements for foreigners, overseas Chinese, compatriots from Hong Kong, Macao and Taiwan to come to China, or to return to China or China's inland, for a visit or sightseeing.

Category 2: Tourist agencies that do not solicit tourists abroad, but handle such tourist business as making travel arrangements for those foreigners, overseas Chinese, compatriots from Hong Kong, Macao and Taiwan, who are received by tourist agencies of Category 1 or by other departments with relevance to external affairs. Category 3: Tourist agencies that handle domestic tourist business for Chinese citizens.

Article 7 Tourist agencies of Category 1 and Category 2 may register and commence operations only under the following prerequisites: (1) having articles of association for the tourist agency to be established, which are in conformity with the State provisions; (2) having a definite organization and a legal representative, a fixed site for setting up an office and for conducting business operations, and the necessary communication facilities; (3) tourist agencies that handle such tourist business as both soliciting and receiving tourists abroad shall have a registered capital of CNY 500,000 yuan or more; tourist agencies that handle only reception business shall have a registered capital of CNY 250,000 yuan or more; (4) having the organizing ability to provide tourists with such services as meals, accommodation and transportation, and such services are up to the standard; and (5) having a contingent of managerial and operational personnel who can guarantee the quality standard of various services, can conduct normal business operations, and are familiar with tourist business; and having a contingent of interpreters and tourist guides who have passed qualifications examinations.

Article 8 Tourist agencies of Category 3 may register and commence operations only under the following prerequisites: (1) having articles of association for the tourist agency to be established, which are in conformity with the State provisions; (2) having a fixed site for setting up an office and for conducting business operations; (3) having a registered capital of CNY 30,000 yuan or more; (4) having the organizing ability to provide, within their scope of business, the tourists with various services that meet the standard service requirements; and (5) having a contingent of administrative and service personnel who are familiar with tourist business.

Article 9 Those who wish to establish tourist agencies of Category 1, in a local area, shall submit an application to the tourism bureau of the province, autonomous region, or municipality directly under the Central Government where their tourist agencies are located, and the application shall be transmitted to the National Tourism Administration for examination and approval; if such a tourist agency is to be established by a department at the central level, the application shall be submitted to the National Tourism Administration for examination and approval.

The tourist agencies mentioned in the preceding paragraph shall, after obtaining the approval from the tourism administration department, go through the application and registration procedures in accordance with the State provisions concerning the administration of industry and commerce, and start their business operations only after their applications have been verified and approved and the business licences have been issued to them.

Article 10 Those who wish to establish tourist agencies of Category 2, in a local area, shall have their applications examined and approved by the tourism bureau of the province, autonomous regions, or municipality directly under the Central Government where their tourist agencies are located; if such a tourist agency is to be established by a department at the central level, the application shall be submitted to the National Tourism Administration for examination and approval.

The tourist agencies mentioned in the preceding paragraph shall, after obtaining the approval from the tourism administration department, go through the application and registration procedures in accordance with the State provisions concerning the administration of industry and commerce, and start their business operations only after their applications have been verified and approved and the business licences have been issued to them.

Article 11 Those who wish to establish tourist agencies of Category 3 shall start their business operations only after their applications have been examined and approved by the local tourism administration department, and have been verified and approved for registration by the local administrative department for industry and commerce, and the business licences have been issued to them.

Article 12 In the event that tourist agencies of Category 1 wish to establish or withdraw their representative business offices abroad or in the regions of Hong Kong and Macao, they must report to the National Tourism Administration for examination and approval.

Article 13 Foreign tourist agencies, and tourist agencies in the regions of Hong Kong and Macao, shall not be permitted to establish their representative business offices in China without the approval from the National Tourism Administration. Their representative business offices, after being established with approval, shall not be permitted to handle such tourist business as soliciting and receiving tourists.

Article 14 The basic duties of tourist agencies shall be as follows: (1) to conclude and sign contracts or agreements with the operating units concerned, and to handle tourist business in accordance with the laws and regulations of the State and the principles and policies for tourist industry; (2) to draw up touring itineraries and to conduct soliciting activities in accordance with the unified plan and the market demands; (3) to make arrangements for meals, accommodation, transportation, and sightseeing in accordance with the itineraries selected by tourists; (4) to provide tourists with the necessary services of interpreters and tourist guides; (5) to improve operations and management, to raise the quality of service, to listen to the criticisms and suggestions by tourists, and to investigate and handle violators of rules and regulations by personnel of their own units; and (6) to handle commission business relating to tourism.

Article 15 With respect to business contacts between tourist agencies and such business departments as airlines, railways, transportation, hotels and restaurants, and automobile companies, or the business contacts between tourist agencies, the parties concerned shall, in accordance with the provisions of the Law of the People's Republic of China on Economic Contracts, conclude and sign a certain form of economic agreement or contract, on the basis of the principle of equality and mutual benefit, reaching unanimity through consultation, exchange at equal value and offering services with remunerations.

Article 16 Tourist agencies shall strictly abide by the laws and regulations of the State, implement the principles and policies relating to tourism, strengthen the system of financial administration, and pay taxes and other fees according to pertinent provisions.

Article 17 Tourist agencies shall strengthen the education on complying with discipline and laws, and on professional ethics, among their employees, and lay great stress on professional training, in order to unceasingly improve the quality of the employees to meet the needs of the development of tourism.

Article 18 Tourist agencies and their workers and staff members shall not be permitted to seek and accept commission or other remuneration. Stores that sell tourist articles and catering units shall not be permitted to pay commission or other remuneration to tourist agencies or their workers and staff members. The competent authorities shall impose necessary administrative and disciplinary sanctions on those who have violated the aforesaid provisions.

Article 19 Tourist agencies shall accept the administration, guidance, supervision and investigation by the departments respectively in charge of tourism, commodity prices, and taxation, and by the administrative department for industry and commerce.

Article 20 In case a tourist agency wishes to wind up its business operations, it shall submit an application to the tourism administration department and the administrative department for industry and commerce and go through the procedures for cancellation of its registration.

Article 21 Tourist agencies and the individuals of their workers and staff members that have carried out the provisions of these Regulations conscientiously, and have made important contributions to the improvement of operations and management, or to the improvement of the quality standard of services, shall be duly awarded by the tourism administration department.

Article 22 With respect to those who have violated the provisions of these Regulations and conducted tourist business operations presumptuously without the approval by the competent authorities, and without going through the procedures for registration, and those who, without authorization, have transferred their business licences to others, have cheated tourists, or have sought profits by illegal means, the tourism administration department shall, depending on the seriousness of the case, impose a fine on the managerial personnel of the tourist agency concerned or on the person directly held responsible or order the tourist agency concerned to cease its business operations for rectification; with respect to serious cases, the administrative department for industry and commerce shall confiscate the illegal gains of the violator(s), revoke his/her/its/their business licence(s), and order the violator(s) to cease business operations.

Article 23 The right to interpret these Regulations shall reside in the National Tourism Administration.

Article 24 These Regulations shall go into effect on the date of promulgation.