Laws of the People's Republic of China

    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 plovisions;

    (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 RMB 500,000
yuan or more; tourist agencies that handle only reception business shall have
a registered capital of RMB 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 RMB 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 region, 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.