WT/TPR/S/82 Trade Policy Review
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES
(1) INTRODUCTION
1. On 20 December 1999, in accordance with the 1987 Joint Declaration on the Question of
Macau and with the Constitution of the People's Republic of China (PRC), Macau, previously a
territory under Portuguese administration, became the Macau Special Administrative Region (MSAR)
of the PRC.  The Basic Law, which was adopted by China's National People's Congress in 1993, is the
constitutional instrument governing the MSAR.  Th e Basic Law grants the MSAR a high degree of
autonomy except in foreign affairs and defence, and stipulates the principle of "one country, two
systems".  Under this principle, the previous market-based economic system and way of life are to be
maintained for at least 50 years after 1999, and th e MSAR's courts are endowed with independent
judicial power, including that of final adjudication.  Within certain limits, the MSAR is authorized to
conduct, on its own, some external affairs;  in particular, the MSAR can, using the name
"Macau, China", maintain and develop relations and conclude international agreements in fields such
as economic, trade, financial, and monetary matters.
(2) GENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK
2. Macau, China's political status and institutional structure are embodied in the Basic Law.  It
appears that the reversion to China did not affect Macau's legislation concerning trade and
trade-related policies, except for the changes made to laws and regulations to comply with the
requirements stipulated in the Basic Law.
3. Chart II.1 depicts the structure of the Government.1  The Government of the MSAR, which is
the executive authority of the Region, is headed by the Chief Executive. The Chief Executive is
selected by election or through consultations held locally, and appointed by the Central People's
Government.2  The term of office of the Chief Executive is five years, with a maximum of two terms.3
The Chief Executive is formally empowered to c onduct, on behalf of the Government of the MSAR,
external and other affairs as authorized by the Central People's Government;  the Chief Executive has
the power to represent the MSAR and to conclude in the name of the MSAR multilateral, regional,
and bilateral trade agreements with foreign countries and regions and relevant international
organizations.4  The Chief Executive is accountable to the Central People's Government and the
MSAR in accordance with the provisions of the Basic Law.5  The authorities confirm that there is no
specific provision empowering the Central People's Government to instruct the Chief Executive;
there are several provisions specifying the relati onship between China's central authorities and the
MSAR.
                                                     
1 The Government must abide by the law and is  accountable to the Legislative Assembly.  The
Government implements laws, presents regular policy addresses to the Assembly, and answers questions raisedby members of the Assembly (Article 65).
2 The specific method for selecting the Chief Executive is described in the Annex I of the Basic Law
(Article 47).
3 Article 48 of the Basic Law.
4 Article 50 of the Basic Law stipulates the powers and functions of the Chief Executive, such as:  to
sign bills passed by the legislature and to promulgate laws;  to decide on government policies and to issueexecutive orders;  to nominate, and report to the Central People's Government for appointment, certain principalofficials;  to appoint and remove judges of the courts at all levels, and holders of public office, in accordance
with legal procedures;  to implement the directives issu ed by the Central People's Government in respect of the
relevant matters provided for in the Basic Law;  to conduct external and other affairs as authorized by theCentral Authorities;  and to approve the introduction of motions regarding revenue or expenditure to thelegislature.
5 Article 45 (2) of the Basic Law.Macau, China WT/TPR/S/82
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Chart II.1
Structural Diagram of the Government of Macau SAR
Administrative subordination is under consideration.
This diagram does not cover all entities under supervision and guardianship of the Government.Information provided by the authorities of Macau, China.Chief Executive Courts Procuratorates Legislative Assembly
Office of the Chief Executive Executive Council
Commission of 
Audit
Police Servicea
Customs & ExciseaCommission 
against 
CorruptionGeneral 
Secretariat for 
Administration & 
JusticeGeneral 
Secretariat for 
Economy & 
FinanceGeneral 
Secretariat for 
SecurityGeneral 
Secretariat for 
Social Affairs & 
CultureGeneral 
Secretariat for 
Transports & 
Public Works
Office of the 
STPW
Infrastructure 
Development
Office
Civil
Aviation 
AuthorityEnvironmental
Protection
CommitteeTelecom. & 
Information Tec. 
Dev. OfficePostal
Services
Meteorological & 
Geophysical 
Services
Housing
InstituteNaval 
DockyardPort 
AuthorityCartography & 
Registry 
ServicesLands, Public 
Works & 
Transports Serv. Office of the 
SAJ
Provisional 
Municipality
of the IslandsLegal
Translation 
Office
Legislative Affairs
Office
Provisional 
Municipality
of MacauOfficial
 Printing 
ServicesIdentification
ServicesJustice
ServicesPublic 
Administration & 
Civil ServicesOffice of the 
SEF
Consumer
Council
Macau
Monetary
AuthorityMacau Trade & 
Investment 
Promotion Inst.Gambling 
Inspection & Co-
ordination Serv.
Social
Security
Fund
Pension
FundLabour & 
Employment 
ServicesStatistics & Census 
ServicesFinance 
ServicesEconomic
ServicesOffice of the 
SS
Macau Security 
Forces
Higher SchoolMacau
Prison
Municipal
Police
Fire-brigadeMarine & Customs 
PoliceJudiciary
PolicePublic Security 
PoliceSecurity forces of 
MacauOffice of the 
SSCA
University 
of Macau
Institute
of Tourism
EducationMacau Polytechnic 
InstituteSocial
Welfare
Institute
Macau Sports
Development
Board
Tertiary Education 
OfficeGovernment
Tourist
OfficeCulturalInstituteEducation & Youth 
Affairs ServicesHealth 
ServicesGovernment
Information
Services
Macau Liaison 
Office in LisbonMacau
Foundation
Fundation for 
Cooperation & 
Development 
of Macau
Economic & 
Commercial 
Delegation of 
Macau (in E.U. )
a
Note:
Source :WT/TPR/S/82 Trade Policy Review
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4. In formulating policy, the Chief Executive is assisted by the Executive Council.6  The latter
consists of seven to eleven (currently ten) members, who are appointed from among principal officials
of the executive authorities, Legislative Assembly members and public figures7;  their appointment or
removal is decided by the Chief Executive, w ho chairs meetings of the Executive Council.
5. The Legislative Assembly is the MSAR's legislature.8  It currently consists of 23 members,
i.e. eight returned through direct elections, eight indirect elections, and seven appointed by the ChiefExecutive.
9  The term of office of the first (current) Legislative Assembly lasts until 15 October 2001;
the term of subsequent Legislative Assembly will be  four years.  The President of the Legislative
Assembly is elected by, and from among, its members.
6. The Legislative Assembly is empowered, inter alia , to enact laws, approve budgets, and
decide on taxation.10  The Chief Executive is not vested with legislative power.  Members of the
Legislative Assembly may introduce, individually or jointly, bills that do not relate to public
expenditure, the political structure, or the operation of the Government.  All bills relating to
government policy need the written consent of the Chief Executive before being introduced into the
Legislative Assembly.
7. Macau, China's trade-related legislation consists of laws and decree-laws11;  the Chief
Executive may issue administrative regulations, executive orders, and decisions in accordance with
laws or decree-laws (Table II.1).  Bills passed by the Legislative Assembly become law only after
being signed and promulgated by the Chief Executive.12  If the Chief Executive considers that a bill
passed by the Legislative Assembly is not compatible with the overall interests of the MSAR, it may
be returned to the Legislative Assembly within 90 days for reconsideration.13  If the Legislative
Assembly passes the original bill again, by not less than a two-thirds majority of all members (i.e.
16 of the total of 23 members), the Chief Executive must sign and promulgate it within 30 days.14  If
the Chief Executive refuses to do so, or if the Legislative Assembly refuses to pass a budget or any
other bills that may concern the overall interests of the MSAR, and if consensus cannot be reached
after consultation, the Chief Executive may dissolve the Legislative Assembly.15  Laws enacted by the
                                                     
6 The Executive Council effectively replaced a previous Consultative Council.
7 As provided in Article 58, the Chief Executive must consult the Executive Council before making
important policy decisions, introducing bills to the Legislative Assembly, formulating administrativeregulations, or dissolving the Legislative Assembly.  Members of the Executive Council must be Chinese
citizens who are permanent residents of the MSAR.
8 Article 67 of the Basic Law.
9 Indirect elections involve a system of electoral colleges, where certain associations or organizations
representing social interests recognized by law are endowed with active voting capacity.
10 Article 71 of the Basic Law.
11 The decree-law was the format for the legislative power of Governor before the transfer of
sovereignty.  Decree-laws that were in force at the time of the transfer and did not contravene the Basic Law
have been maintained in force in the MSAR.  The effectiveness of the laws and of the decree-laws in the legalorder is the same.
12 Article 78 of the Basic Law.
13 Article 51 of the Basic Law.
14 Article 51 of the Basic Law.
15 Article 52 of the Basic Law.  The Chief Executive is allowed to dissolve the Legislative Assembly
only once during each term of his or her period of office.  The Chief Executive must resign if the newLegislative Assembly again passes the original bill by a two-thirds majority of all members and if he/she stillrefuses to sign it within 30 days.  The same applies to a situation where the new Legislative Assembly refuses topass the original bill in dispute.Macau, China WT/TPR/S/82
Page 15
Legislative Assembly must be reported to the Standing Committee of the National People's Congress
for the record;  the reporting does not affect the entry into force of such laws.16
Table II.1
Basic trade-related legislation in Macau, China
Subject Date Legislation Content
Commercial Code 03.08.99 Decree-Law 40/99/M Legal system regulating trade activities
Foreign trade 18.12.95 Decree-Law 66/95/M (as amended by
Decree-Law 59/98/M)Framework legislation governing all foreign
trade operations.
29.01.96 Decree-Law 7/96/M Regulations for freight forwarders.
25.06.96 Decree-Law 158/96/M Regulations for registration of foreign trade
operators.
12.02.96 Government Decision 28/96/M Issuance procedures of certificate of origin
and licences under Decree-Law 66/95/M.
28.12.98 Government Decision 128/GM/98 Goods subject to import and export licensing.
Export quotas 19.09.94 Government Decision 59/GM/94 Allocation and utilization of export quotas.
Trade controls 08.11.99 Decree-Law 77/99/M Regulations for arms and ammunitions.
04.12.95 Decree-Law 62/95/M Regulation for trade in substances depleting
the ozone layer.
29.09.86 Decree-Law 45/86/M Regulation for imports of CITES species.
19.10.98 Government Decision 219/98/M Prohibition of import of used vehicles and
engines.
09.10.96 Notice on Gazette Allocation of import quotas for
trichloroethane under Montreal Protocol.
Optical media 27.09.99 Decree-Law 51/99/M Regulation for production and trade of optical
media products.
Government procurement 15.12.84 Decree-Law 122/84/M (as amended by
Decree-Law30/89/M)Financial regime governing procurement of
public works, acquisition of goods and
services.
06.07.85 Decree-Law 63/85/M Guidelines for tenders for acquisition of goods
and services.
Labelling 17.08.92 Decree-Law 50/92/M (as amended by
Decree-Law 56/94/M)Labelling regulations for prepared foods.
Industrial policy 22.03.99 Decree-Law 11/99/M Industrial licensing requirements.
Investment incentives 08.02.86 Decree-Law 1/86/M (as amended by
Decree-Law 35/93/M)Fiscal incentives for industrial investors.
01.06.98 Decree-Law 23/98/M Extension of interest-rate subsidies to all
private enterprises.
27.03.95 Decree-Law 14/95/M (as amended by
Decree-Law 22/96/M and Decree-Law
22/97/M)Investors and professionals residency
application.
Consumption taxes 13.12.99 Law 4/99/M Basic framework regulation.
Intellectual propertyprotection16.08.99 Decree-Law 43/99/M Copyright and related rights law in
compliance with TRIPS.
13.12.99 Decree-Law 97/99/M Industrial property law in compliance with
TRIPS.
05.12.95 Government Decision 313/95/M Classification of goods and services for
purposes of trade mark registration.
05.06.00 Executive Decision 87/2000 Administrative fees for IP registration.
Pharmaceuticals 19.09.90 Decree-Law 58/90/M (amended by
Decree-Law 20/91/M, Government
Decision 43/SASAS/91 and Decree-Law
30/95/M)Regulation for  import, export, wholesale, and
retail sale of medicines and pharmaceuticals.
19.09.90 Decree-Law 59/90/M Registration of pharmaceutical products.
Source: Information provided by the Macau, China authorities.
                                                     
16 Article 17 of the Basic Law.WT/TPR/S/82 Trade Policy Review
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8. International treaties ratified or approved by the PRC or, as may be the case in certain
appropriate fields, by the Chief Executive, immediately and automatically become part of the MSAR's
legal order once published in the Official Gazette .  International law generally takes precedence over
domestic law.
9. The Basic Law vests the MSAR with independent judicial power, including that of final
adjudication;  it also establishes the independence of the courts, their submission only to the law, andtheir jurisdiction over all cases in the Region.  There are exceptions to their jurisdiction, imposed by
the legal system and by the principles previously  in force, which the Basic Law maintained.  The
courts of the MSAR also have no jurisdiction over acts of State such as defence and foreign affairs.
With the transfer of sovereignty, the Court of Second Instance and the Court of Final Appeal were
established;  the latter replaced the Justice Superior Court.
17
(3) TRADE POLICY FORMULATION AND IMPLEMENTATION
10. Since the previous Trade Policy Review of Macau in 1994, the Territory has continued to rely
largely on free market forces to allocated domestic resources and thus trade and investment flows.
Government activities focus on establishing a basi c regulatory framework and improving the business
environment for private operators, through such measures as investment incentives, trainingprogrammes and trade promotion initiatives.
11. Under the Basic Law, the MSAR remains a separate customs territory;  it may use the name
"Macau, China" and participate in international organizations and international trade agreements, such
as WTO Agreements.  The MSAR may, on its own, ma intain and develop relations and conclude and
implement agreements with foreign States and regions and relevant international organizations in the
appropriate fields, including in economic, trade, financial and monetary, shipping, communications,
tourism, cultural, science and technology, and sports matters.
18  The Basic Law also stipulates that the
MSAR "shall maintain the status of a free port" (A rticle 110) and "pursue a policy of free trade and
safeguard the free movement of goods, intangible assets, and capital" (Article 111).  The authorities
maintain that Article 111 includes free movement of services, but excludes labour.  In addition, the
MSAR "may issue its own certificates of origin for products in accordance with prevailing rules of
origin" (Article 113).
(i) Agencies involved in trade policy implementation
12. The Secretaries19, the Commissioner against Corruption, the Director of Audit, and the heads
of the Police Services and the Customs Services are principal officials in the Government.
13. Macau Economic Services is the main agency advising and assisting the Chief Executive and
principal officials in formulating, coordinating and implementing policy initiatives in areas related to
                                                     
17 Macau, China's courts consist of primary courts, intermediate courts and a Court of Final Appeal.
The primary courts have general jurisdiction at first instance, including the Criminal Instruction Tribunal.  The
Administrative Court has jurisdiction at first instance in administrative disputes.  The Court of Second Instanceis a court of appeal and the Court of Final Appeal is ve sted with final adjudication power.  The judges of the
courts at all levels are appointed by the Chief Executive, on the recommendation of an independent commissioncomposed of local judges, lawyers, and eminent persons from other sectors.  The judges are chosen on the basisof merit.  The independence of the courts is safeguarded by the irremovability of the judges and their
non-subjection to any orders or guidance other than the duty to respect decisions made following appeal to
higher courts.
18 Article 136 of the Basic Law.
19 Currently, there are five Secretaries, i.e. for Administration and Justice, Economy and Finance,
Security, Social Affairs and Culture, and Transport and Public Works.Macau, China WT/TPR/S/82
Page 17
trade, fisheries, and industry.  The Organization of Macau Economic Services (Chart II.2), is
mandated to:
- cooperate in the formulation and implementation of economic policies and the overall
planning of economic activities;
- support economic development, industrial diversification, investment and product
quality enhancement in Macau, China;
- administer foreign trade regulations and ensure the normal operation of commercial
flows;
- foster export growth and diversification, and promote Macau, China's economy
abroad;  and
- ensure fair competition, protect intellectual property rights and defend consumer
interests.
14. Other governmental bodies that participate in advising and assisting the Chief Executive and
principal officials in the formulation and implementation of trade policies include the Macau Finance
Services, the Macau Monetary Authority, the Macau Statistics and Census Services, the Macau
Marine Police and Customs, the Macau Health Services, the Office for Development ofTelecommunications and Information Technology,  the Macau Trade and Investment Promotion
Institute, and the Economic Council.
20
Chart II.2
Organization of Macau Economic Services
Director
Deputy Directors
Source : Information provided by the authorities of Macau, China.Industrial 
Licensing & 
Management of 
Incentive 
DivisionAdministration & 
Finance DivisionElectronic 
Data Processing 
DivisionResearch & 
Economic 
Analysis 
DivisionCommerce & 
Intellectual 
Property 
Inspection 
DivisionIndustry 
Inspection 
DivisionDomestic Trade 
& Consumption 
Tax DivisionForeign 
Trade DivisionCertificate
 of Origin 
DivisionResearch & Electronic 
Data Processing Dep.Industry
 DepartmentCommerce 
DepartmentIntellectual
Property
DepartmentInspection of Economic 
Activities Department
TreasuryIndustrial 
Property SectorDocumentation & 
Information 
CentrePersonnel & 
General Office 
SectionAccounts & 
Inventory Section
                                                     
20 The Macau Trade and Investment Promotion Instit ute was established in July 1994, and the Office
for Development of Telecommunication and Information Technology in June 2000.WT/TPR/S/82 Trade Policy Review
Page 18
(ii) Advisory and review bodies
15. Two of the main advisory and review bodies are the Economic Council and the Consumer
Council. The Economic Council gives advice on matters relating to Macau, China's economic and
trade strategies, development, and policies.21  The Consumer Council, a public institute established
since 1988, promotes the task of consumer protection in the MSAR and provides comments on the
implementation of policy pertaining to consumer protection.
(4) TRADE POLICY OBJECTIVES
16. The MSAR's trade policy objectives AREgeared to maintaining a structurally diverse,
market-driven, laissez-faire , and rules-based Macau economy.  With regard to the new round of trade
negotiations, Macau, China attaches great importance to liberalization of certain sectors, such as air
transport, tourism, telecommunications, and e-commerce.
(5) TRADE AGREEMENTS AND ARRANGEMENTS
(i) Multilateral agreements
17. Macau, China signed the Marrakesh Declaration to become a founding member of the WTO;
it had been a GATT contracting party in its own right since January 1991.  The WTO Agreements
were published in the Government Gazette  on 27 December 1994 and entered into force on the same
date.22  At the WTO Singapore Ministerial Conference in 1996, Macau was party to the Ministerial
Declaration on Trade in Information Technology Pr oducts (the Information Technology Agreement).
In the context of implementing its Uruguay Round commitments and in support of multilateral
disciplines, the MSAR has made notifications under a number of WTO Agreements (Table II.2)
Table II.2
Principal notifications by Macau, China under WTO Agreements, as at October 2000
Agreement Document reference Requirement/Contents
Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS)IP/N/1/MAC/1, 1/Rev.1 and 1/Rev.1/Add.1,
4 February 1998, 7 March 2000, and
23 June 2000Article 63.2:  Notification of the legislation
that applies in Macau, China in the field of
intellectual property
IP/N/1/MAC/C/1 and 1/Rev.1,
30 March 2000 and 9 May 2000Article 63.2:  Notification of the legislation
that applies in Macau, China in the field of
intellectual property
IP/N/1/MAC/I/1 and 2, 16 February 1998
and 17 May 2000Article 63.2:  Notification of the legislation
that applies in Macau, China in the field of
intellectual property
IP/N/1/MAC/T/1 and 2, 16 February 1998 Article 63.2:  Notification of the legislation
that applies in Macau, China in the field of
intellectual property
IP/N/6/MAC/1, 1 May 2000 Checklist of issues on enforcement
IP/Q/MAC/1 (IP/Q2/MAC/1,IP/Q3/MAC/1, IP/Q4/MAC/1),
18 August 2000Review of legislation
Table II.2 (cont'd)
                                                     
21 The Council is chaired by the Chief Executive, comprising council members from senior officials,
traders and businessmen, professionals, economists, academics, and representatives of enterprises.
22 Articles 112 and 138 of the Basic Law safeguard Macau, China's continued participation in the
WTO.Macau, China WT/TPR/S/82
Page 19
Agreement Document reference Requirement/Contents
Agreement on Agriculture G/AG/N/MAC/1, 2, 3, 4, 5, 6 and 7,
25 July 1996, 16 April 1998, 16 April 1998,17 December 1999, 17 December 1999,
17 March 2000, 17 March 2000Article 6:  Notification concerning domestic
support;  Article 9.1:  Notification
concerning export subsidies
Agreement on Textiles and Clothing G/TMB/N/108, 5 July 1995 Article 2.2:  Macau, China's observation in
relation to the U.S. notification under
Article 2.1
G/TMB/N/96, 24 May 1995 Article 3.1:  Notification concerning
restrictions on textile and clothing products
G/TMB/N/97, 24 May 1995 Article 6.1:  Notification concerning
transitional safeguard
Agreement on Implementation ofArticle VI of the General Agreement on
Tariffs and Trade 1994 (Agreement on
Anti-Dumping Practices)G/ADP/N/1/MAC/1, 22 November 1995 Article 18.5:  Notification concerning laws
or regulations relevant to the Agreement.
Agreement on the Implementation ofArticle VII of the GATT 1994
(Agreement on Customs Valuation)G/VAL/N/1/MAC/1, 9 May 1996 Article 22.2:  Notification concerning
national legislation relevant to the
Agreement
Agreement on Subsidies and
Countervailing MeasuresG/SCM/N/1/MAC/1, 1 July 1998 Article 32.6:  Notification concerning laws
or regulations relevant to the Agreement
G/SCM/N/3/MAC (16/MAC, 25/MAC),38/MAC, 48/MAC, 60/MAC and
60/MAC/Corr.1, 2 July 1998,20 September 1999, 21 September 1999,
16 March 2000, 1 May 2000Article 25:  Notification concerning
subsidies
Agreement on Safeguards G/SG/N/1/MAC/1 and 2, 14 August 1995
and 30 November 1995Article 12.6:  Notifications concerning laws
and regulations relevant to the Agreement
Agreement on Import Licensing
ProceduresG/LIC/N/3/MAC/1 and 2,
22 December 1998 and 3 January 2000Article 7.3:  Notifications concerning import
licensing procedures
Agreement on Technical Barriers toTradeG/TBT/Notif.96.449, 450, 451, 452,
19 December 1996.
G/TBT/Notif.00.481, 2 October 2000Notification under Article 10.6
Agreement on the Application of
Sanitary and Phytosanitary MeasuresG/SPS/N/MAC/1, 2 and 3, 19 July 1999,
13 August 1999 and 26 August 1999Notification of emergency measures
Understanding on the Interpretation of
Article XVII of the GATT 1994G/STR/N/1/MAC, G/STR/N/2/MAC,
G/STR/N/3/MAC, G/STR/N/4 (5)/MACand G/STR/N/6/MAC, 18 September 1995,
21 September 1999, 16 April 1998,
21 September 1999 and 15 March 2000Notification of state trading enterprises
Source: WTO Secretariat.
(ii) Regional agreements
18. Macau, China does not participate in any regional trade arrangements involving preferences,
and all trading partners are treated on an MFN basis.
19. Although Macau, China filed its application to join the Asia Pacific Economic Cooperation
(APEC) in 1993, it is not an APEC member.
(iii) Bilateral agreements
20. Macau, China has no bilateral trade-related agreements or arrangements with any other
parties;  no bilateral negotiations or initiatives have taken place since its previous Review.
21. Certain exports from Macau, China enjoy preferential treatment in Australia, Canada, the
European Union, Japan, New Zealand, Norway, Switzerland, and the United States, under GSPWT/TPR/S/82 Trade Policy Review
Page 20
schemes, although such treatment has been diminishing.23  While Macau, China exported GSP-
eligible goods worth US$4.5 million in 1999;  the authorities indicate that only 0.2% of its total
exports of such goods to these countries actually benefited from preferential access, according to the
data provided by the authorities.
22. While Macau, China accords no preferential treatment to the Mainland in terms of trade, the
Governments of the MSAR and Mainland China have cooperated in various fields such as customsand infrastructure.
(6) T
RADE DISPUTES AND CONSULTATIONS
23. Macau, China has never had any trade disputes with Members of the WTO;  nor have there
been any trade disputes outside the WTO framework, according to the authorities.
(7) MEASURES RELATED TO FOREIGN DIRECT INVESTMENT
24. Macau, China does not maintain any restrictions or controls on inward or outward foreign
direct investment or the use of foreign capital in existing or newly established companies;  nor are
there any restrictions on the repatriation of profits or exchange controls.  Moreover, the same
procedures are applied for the establishment of a local or foreign company;  each company doing
business in Macau must have a registered office there.
25. Since the establishment of the MSAR, the Macau  Trade and Investment Promotion Institute
(IPIM) has assumed additional authority and responsibilities;  its scope of activities has been
expanded and an Investment Committee coordinating relevant government offices, and a Private
Notary to assist the setting up and registration of companies were established within the IPIM to assist
investors with the necessary procedures required to start a business in Macau.
26. The Government grants interest-rate subsid ies on Pataca-denominated bank loans for the
purchase or leasing of new equipment, as well as for purchase, construction or leasing of industrialbuildings, used exclusively by the beneficiary;  the subsidies may be granted for up to four years.  In
addition, refundable and non-refundable subsidies may be granted to investment projects if certain
requirements are met (Chapter III(4)(ii)).  According to the authorities, the granting of these subsidies
is non-discriminatory, benefiting local and foreign investors alike.
24
27. In 1999, Macau, China signed a double taxation agreement with Portugal (published in
Decree-Law No. 106/99/M of 13 December 1999).  Ma cau, China also signed a bilateral agreement
on investment protection with Portugal (published in the Government Gazette  No. 31, on
31 July 2000).  Macau, China has no other bilateral investment treaties or bilateral tax treaties.
                                                     
23 In 1998, Macau products ceased to benefit from the U.S. GSP scheme;  benefits under the Japanese
GSP scheme were terminated on 1 April 2000.
24 According to Decree-Law No. 22/96/M of 22 Ap ril 1996, entrepreneurs investing at least
US$125,000 are granted the right of abode in the MSAR.  According to Decree-Law No. 22/97/M of11 June 1997, this amount is further reduced to US$62,500 for applicants who are retirees or pensioners fromHong Kong, China and have proof of their financial status.  The authorities indicate that the provision of theright to abode aims to attract foreigners wishing to investing in housing and reside in the MSAR.