. /.RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/232
26 November 2003
(03-6294)
Council for Trade in Services Original:  English
COMMUNICATION FROM THE SEPARATE CUSTOMS TERRITORY
OF TAIWAN, PENGHU, KINMEN AND MATSU
Transitional Review Mechanism in connection with Paragraph 18 of
the Protocol on the Accession of the People’s Republic of China
The following communication, dated 21 November 2003, from the Delegation of the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Ma tsu is being circulated to the Members of the
Council for Trade in Services.
_______________
Written Questions to China from the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu concerning Trade in Services
I. TELECOMMUNICATION SERVICES
1. We noted that China has replied to the questions raised by several Members on this subject in
the TRM exercise last year. However, we would like to follow up a few remaining issues and we
appreciate China’s further clarification.
2. Given that China has already made a commitment to adopt the Reference Paper on Basic
Telecommunications, which is important in terms of market access commitments, we would be
interested in knowing exactly how China plans to implement the Reference Paper through itsTelecommunication Law .
3. It is noted that China’s Telecommunication Law  and Administrative Regulations of Foreign-
invested Telecommunications Business stipulate certain qualification requirements for
telecommunications  businesses operating in China.
4. We hope that China would conduct the review procedures in a transparent and objective
manner, which is also consistent with its accession commitments.
5. The geographical scope in which foreign-invested telecommunication companies are allowed
to operate is regulated by China’s Administrative Regulations of Foreign-invested
Telecommunications Businesses  and determined by the supervisory department for the information
industry under the State Council, in accordance with the relevant regulations.
6. Could China please advise us which government department will be issuing the measures in
this respect?S/C/W/232
Page 2
II. TOURISM AND TRAVEL-RELATED SERVICES
7. China’s Administrative Regulations on Travel Agencies impose an economic needs test (ENT)
on new foreign-invested travel agencies
8. Could China please explain why this additional requirement, which was not listed in its
schedule of GATS commitments, is necessary?
III. TRANSPORT SERVICES
9. China agreed in its accession commitments that the minimum registered capital of a joint-
venture freight forwarding agency shall be no less than US$ 1 million. However, its Notification on
Issues Relating to the Experimental Establishment of Foreign-Invested Logistic Enterprises , effective
from 20 July 2002, stipulates that only foreign enterprises having more than US$ 5 million registered
capital will be permitted.
10. It would be appreciated if China could explain the reasons for this increase in the capital
requirement in the light of its accession commitments.
IV. PROFESSIONAL SERVICES: ACCOUNTING , AUDITING AND BOOKKEEPING
11. According to Article 2 of its Provisional Rules on Evaluating Registration of Membership by
Foreign Accountants, foreigners that have passed China’s CPA tests and wish to apply for a licence to
practice as a CPA in China, must have accumulated more than two years’ experience as anindependent auditor within China, must have a fixed residence or fixed contact point within China
and, at the time of application, the residency requirement is at least one year. These requirements,
however, are not contained in China’s WTO commitments.
12. It would be appreciated if China could explain why these above-mentioned requirements are
necessary.
__________