WT/TPR/M/281/Add.1  
18 September 2013  
(13-4939)  Page: 1/37  
Trade Policy Review Body 
13 and 15 May 2013  Original: English/anglais/inglés  
TRADE POLICY REVIEW 
MACAO, CHINA 
RECORD OF THE MEETING 
  Addendum 
Chairperson: H.E. Mr. Joakim Reiter (Sweden) 
 
This document contains the advance written questions, and replies provided by Macao, 
China.1 
 
 
Organe d'examen des politiques commerciales 
13 et 15 mai 2013 
EXAMEN DES POLITIQUES COMMERCIALES 
MACAO, CHINE 
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Joakim Reiter (Suède) 
 
Le présent document contient les questions écrites communiquées à l'avance et les 
réponses fournies par la Macao, Chine.1 
 
 Órgano de Examen de las Políticas Comerciales 
13 y 15 de mayo de 2013 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
M
ACAO, CHINA 
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Joakim Reiter (Suecia) 
 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por la Macao, China.1 
                                               
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/281/Add.1 
 
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WTO TRADE POLICY REVIEW OF MACAO, CHINA 
 
WRITTEN QUESTIONS FROM THE UNITED STATES 
MAY 13 AND 15, 2013 
 
I. Questions on the Secret ariat Report (WT/TPR/S/281): 
 SUMMARY 
Trade Policies and Practices 
 Page 7, paragraph 11: The Secretariat Report states that “there are few non-tariff border 
measures, and import licensing has been maintained only for reasons of health, safety, 
environment, and the administration of consumption tax.  Although consumption taxes are levied 
on imports and domestically produced goods alike,  they fall disproportionately on imports because 
there is little or no domestic production of these goods.”  The Secretariat further reports that 
beverages with alcoholic concentration below 30%, as well as fuel and lubricants (see page 34) are 
exempted from the consumption tax, and thereby no longer require an import license.  In light of this, is the government considering eliminating import licenses for purposes of administering the 
consumption tax, taking into account Article 1.3 of the Import Licensing Procedures Agreement?  
 Answer 
 
At the outset, the MSAR Government has fully complied with Article 1.3 of the Import Licensing 
Procedures Agreement in administering import licensing procedures in a fair and equitable manner.  The MSAR Government requires import licenses to be issued by the Macao Economic Services for 
imports of beverages with alcoholic volume equal or greater than 30% and tobacco products for 
the purpose of collecting consumption tax.  
The MSAR Government considers that this import license is essential for the administration of 
consumption tax because in cases of actual import volume less than the original volume in the application or re-export of spirits and cigarettes at a later stage, importers can apply for a tax refund from the Macao Economic Services by simultaneously submitting evidential documents, 
such as the import license (which contains the description of the goods) and tax payment receipt 
(which contains the tax payment reference assigned by the Macao Economic Services) for accurate calculation purpose. 
 
3.  TRADE POLICIES AND PRACTICES BY MEASURE 3.2.5.  Import prohibitions, restrictions, and licensing 
 
Page 35, paragraph 3.31:   The Secretariat report states “Import licenses are valid for 30 days 
from issuance, and may not be extended.”  Please explain why Macao, China does not permit 
import licenses to be renewed. 
 
Answer 
 
Macao, China does allow import licenses to be renewed.  The rule that import licenses are valid for 
30 days from issuance and may not be extended is a requirement in form rather than substance. In terms of form, concomitant with the expiry of the effective date of the license, the effectiveness 
of the license as a whole also becomes void.  However, the importer can re-apply for a new license 
in lieu of the expired one for the same batch(es) of goods. Therefore, re-application is essentially 
the same as renewal. The non-extension of expired licenses is just a procedural requirement to ensure that all effective licenses in circulation are, in every respect, original from the issuing 
authority. 
 3.2.6.  Contingency measures 
 
Page 36, paragraph 3.34:  We note from the Secretariat’s report that Macao, China, does not have 
any safeguard legislation or applicable institution framework.  It does not appear that Macao, 
China, has notified this to the WTO Committee on Safeguards.  When does Macao, China, intend to 
submit its notification?     WT/TPR/M/281/Add.1 
 
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Answer 
 
Macao, China will submit its revised notification to the WTO Committee on Safeguards in May 
2013. 3.2.8.  Standards and other technical requirements  
 
Page 37, paragraph 3.45: The Secretariat report states that “the Civic and Municipal Affairs Bureau 
of Macao (IACM) is responsible for formulating and implementing SPS regulations and measures, 
and is also the SPS enquiry point for the WTO.”  Does the IACM also cover technical barriers to 
trade (TBT) matters?  Answer 
 Currently, the IACM has been assigned responsibility for SPS matters only. 
 
Page 38, paragraph 3.48: The Secretariat report states that “in response to the global hike in food 
prices, fees for SPS inspections of vegetables, meat and poultry… have been suspended since 1 
January 2008.”  Is the decision to suspend SPS inspection fees tied to a particular price point? 
 
Answer 
 SPS inspection fees for certain types of comm odities are exempted by the Chief Executive 
Decision.  The exemption is not tied to any particular price point. 
 Page 38, Paragraph 3.49:  The Secretariat report indicates that currently three “temporary” SPS 
measures are in place, including those on BSE-related products.  It is our understanding that Macao’s market is still only open to deboned beef from animals less than 30 months of age.  This scope is inconsistent with OIE guidelines for controlled-risk countries. When does Macao intend to 
adopt a policy that gives Members fully-OIE compliant access for its beef? 
 Answer 
 
When establishing SPS-related legislation, the M SAR Government considers not only the existing 
relevant international standards established by I PPC, Codex and OIE, but also national standards 
applied by other countries.  For the mentioned SPS measures concerning BSE-related products, 
they were enacted on 31 December 2007 in accordance with the OIE guidelines applied at that 
time.  
Page 38, paragraph 3.50:  The Secretariat report states that “The Food Safety Centre is to be 
established once the Food Safety Law is enacted.”  What role will the Food Safety Centre have with 
regards to food and agricultural SPS issues?  
Answer 
 
According to the food safety bill, food safety-relat ed powers will be under the jurisdiction of IACM. 
The Food Safety Centre will adopt the “ris k analysis” approach, which encompasses risk 
assessment, risk management and risk communication. The Centre will be responsible for monitoring, investigating and handling food incidents as well as taking appropriate preventative 
measures. The IACM duties remain unchanged with regards to SPS issues.  
 3.4.5.  Intellectual property rights  
Page 52, paragraph 3.112: The Secretariat report  indicates that the WIPO Copyright Treaty and 
WIPO Performances and Phonograms Treaty have no t been extended to Macao, China.  Are there 
plans to make such an extension in the future? 
 
Answer 
 
T h e  M S A R  G o v e r n m e n t  i s  p l a n n i n g  t o  m a k e  sure the WIPO Copyright Treaty and WIPO 
Performances and Phonograms Treaty apply to the MSAR. Arrangements for this extension have been initiated.  WT/TPR/M/281/Add.1 
 
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Page 53, paragraphs 3.118-19:  The Secretariat’s Report indicates that invention patents granted 
in China by China's State Intellectual Property Office (SIPO) can be extended to Macao, China, but 
that utility model patents UMPs granted by and applied for at SIPO cannot.  Please explain the 
reason for the difference.  
Answer 
 
Whereas the State Intellectual Property Office of China conducts substantive examination of 
invention patents, it conducts only preliminary examination of utility model patents; the Macao 
Economic Services conducts substantive examination for both invention patents and utility model patents.  Consequently, only invention patents, but not utility model patents, can be extended 
from Mainland China to the MSAR. 
 
Page 53, paragraph 3.119:  The Secretariat’s Report indicates that utility model patents are 
required to undergo substantive examinations by  SIPO.  Please explain whether and how SIPO’s 
substantive examination of utility model patents may differ from its examination of invention 
patents?  
Answer 
 
In accordance with the Industrial Property Code of the MSAR, the patentability requirements of inventions are applied to utility models; however, utility model patents only protect products, but 
not processes. 
 Page 55, Paragraph 3.132:  The Secretariat Report indicates that the most recent revision to the 
copyright law became effective on June 1, 2012.  Article 38 of the current law, Decree-Law No. 
43/99/M, amended by Law No. 5/2012, provides fo r the republication of works where a rights 
holder does not wish to publish an out of print work.  Article 57(3) of the law provides for first 
publication or disclosure of a copyrighted work und er authority of the author, or where the author 
does not give permission, is aware of the act and do es not object.  Article 59(3) of the current law, 
Decree-Law No. 43/99/M, amended by Law No. 5/ 2012, provides for the posthumous publication 
twenty-five years after the death of  the author even if the successors object to the publication.  
Please explain how Macao, China, views these three articles in light of Berne Article 9 and TRIPS 
Article 13.   
Answer 
1. Article 57(3), of Decree-Law No. 43/99/M 
Article 9(1) of the Berne Convention prescribes that authors of literary and artistic works shall 
have the exclusive right of authorizing the repr oduction of these works in any manner or form, 
notwithstanding the limitations and exceptions in paragraph 2. The Convention does not elaborate 
on how such authorization must be given, namely whether it may be tacitly given.  
Article 57(3), of Decree-Law No. 43/99/M deems that the right holder who does not oppose the 
publication or divulgation of his work, despite being aware of it, gives his tacit authorization, in accordance with the principle qui tacet consentire videtur .  
 
2. Articles 38 and 59(3) of Decree-Law No. 43/99/M 
Article 9(2) of the Berne Convention and Articl e 13 of TRIPS allow members to adopt limitations 
and exceptions to exclusive rights in special cases,  provided they do not conflict with the normal 
exploitation of the work and do not unreasonably prejudice the legitimate interests of the right 
holder.   
The cases in articles 38 and 59(3) of Decree-Law No. 43/99/M are special situations which do not 
conflict with the normal exploitation of the work. Indeed, both provisions concern works that are not being exploited at all by the right holder, even  if that exploitation might be in the public 
interest (TRIPS articles 7 and 8). Non-exploitation of a work cannot be said to be a form of 
“normal exploitation” . On the other hand, the legitimate interests of the right owner are taken into 
account in two instances.  
 
In first instance, his reasons for not exploiting the work, or for opposing its exploitation, are necessarily evaluated by the courts in the case of article 38 and may also be evaluated by the 
courts in the case of article 59(3). Both articles emphasize moral reasons over mere financial ones WT/TPR/M/281/Add.1 
 
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since the latter can hardly justify the opposition to the exploitation of the work by a third party. In 
the second instance, the right holder must be remunerated for the exploitation of the work. Based 
on a systematic construction of the statute, we understand that such remuneration is also due in 
the case of article 59(3), although not mentioned explicitly therein. We take into account that the provision does not allow for an expropriation of th e right. Note that neither article 38 nor article 
59(3), are applicable whenever the right holder is th e first owner, i.e. in principle, the intellectual 
creator.  
Page 55, Paragraph 3.132:  The Secretariat Report indicates that the most recent revision to the 
copyright law became effective on June 1, 2012.  Article 66 of the current law, Decree-Law No. 
43/99/M, amended by Law No. 5/2012, provides "the legal right to use a work without the author's prior consent includes by implication the ri ght to transform it, by translation or otherwise, 
to the extent necessary for its authorized use."  How does Macao, China, views this provision in 
consideration of Berne Article 8 and TRIPs Article 13?   
Answer 
 
The exclusive right of translation in article 8 of the Berne Convention cannot be understood as 
being incompatible with private use or fair use. Therefore, article 66 of Decree-Law No. 43/99/M 
provides that whoever is free to use a literary or artistic work under the provisions on private use 
or fair use (articles 60 - 65) may translate it, or in other ways transform it to the extent necessary for its authorized use. In fact, without the provisio n in article 66, articles 60 to 65 would be largely 
ineffective. Note that 62(1) follows closely article 13 of TRIPS: it provides that the fair use of a 
work cannot hinder its normal economic exploitation or unreasonably prejudice the legitimate interests of the author.  
 
4.  TRADE POLICIES BY SECTOR 4.2.  Manufacturing 
 
Page 59, paragraph 4.14:  The Secretariat report  indicates that the manufacturing industry has 
been relocated to areas with lower production cost, including labor and land.  Are these areas 
named “cross-border industrial zones?”  If that is the case, how many cross-border industrial 
zones are in Macao, China?   
 Answer 
 Many manufacturers in Macao SAR have relocated their businesses to areas with lower production cost.  These areas include, but are not limited to, the Zhuhai-Macao Cross-border Industrial Zone, 
which is the only cross-border industrial zone in Macao, China. 
 II. Questions on the Government Report (WT/TPR/G/281) 
 
Page 5, paragraph 2.11: The Government of Macao, China, reports “the establishment of the Food 
Safety Coordination Group in September 2008.”  What role does the Food Safety Coordination 
Group have with regards to food and agricultural SPS issues?   
 
Answer 
 
The Food Safety Coordination Group is responsible for the monitoring of foodstuffs for purposes of 
food safety and the adoption of appropriate measures towards any emerging situation.  Page 12, paragraph 5.3:  The WTO Secretariat states that Macao, China, provides “assistance 
related to technical production, product design, and vocational training for the textiles and clothing industry, which remains the main exporter of manufactured goods” for the promotion of “Made in Macao” Products.  Could the government of Macao,  China, please explain the type of assistance, 
financial or otherwise, provided to the country’s textile and clothing industry for the promotion of 
“Made in Macao” products?  
Answer 
 
To nurture the manufacturing industry of Macao, the SAR Government is aimed at assisting the industry to transit towards the high value-added end of the sector and to develop Macao brands.  WT/TPR/M/281/Add.1 
 
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In the course, the Government provides the industry with technical assistance and assistance in design.  Also, the Macao Fashion Festive is organized to create a development platform for local 
designs and brands.   Other assistance measures  include supporting the development of designs 
with local characteristic, assisting Macao products to explore overseas markets, and promoting local designs and brands in overseas exhibitions. 
 WT/TPR/M/281/Add.1 
 
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TRADE POLICY REVIEW OF MACAO, CHINA 2013 
WRITTEN QUESTIONS FROM CHINA 
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
4.TRADE POLICIES BY SECTOR 
Page 72 (Para 1) 
 “The tourism sector has benefitted from a prosperi ng gaming sector. Of total visitor expenditure, 
the share on gaming increased, from 74% in 2007 to 87% in 2011 (Table 4.9). During the period 
under review, the Government carried out a numbe r of measures to prevent excessive expansion 
of the gaming industry. ”   
Questions: 
1. Could Macao, China clarify what specific measures and practices it has adopted to prevent 
excessive expansion of the gaming industry? 
 
Answer 
 
In the context of preventing excessive expansio n of the gaming industry, the MSAR Government 
has, first of all, held back the number of gaming concessions and sub-concessions with no 
increment in the foreseeable future. Second, the number of gaming tables is restricted to 3% 
annual compound growth rate and granted on the basis of the non-gaming facilities in the concessionaire’s investment projects. Third, the minimum age to be allowed to work in the gaming 
sector and enter the casino is raised. Fourth, the junket promoters have to obtain license granted 
by the MSAR Government before starting business; and most important of all, the Macao Gaming Committee is now chaired by the Chief Executive,  and is responsible for formulating gaming 
policies and monitoring the sector’s development and operation.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Page 4 (Para 2.3) 
“As regards further liberalization, Macao, China is committed to achieving a successful conclusion 
of the ongoing negotiations related to the DDA. In  this context, Macao, China remains willing to 
bind more of its tariff lines and it has considerably improved its offer of commitments pertaining to 
those service sectors covered by the GATS.”  
Questions: 
2. Could Macao, China please clarify its point of view on how to advance the Doha services 
negotiations considering the difficulties in the overall DDA and certain initiatives to negotiate 
services liberalization outside of DDA.  
 
Answer 
 
Notwithstanding the difficulties in advancing the DDA, Macao, China urges Members to consider 
the long-term benefits from the single undertaki ng.  A successful conclusion of the Round would 
help strengthen the multilateral trading system. With respect to services negotiations, Macao, China supports the notion of progressive liberali zation and believes that more open services 
markets will contribute to economic development, especially of developing countries. 
 
As for the recent initiatives by some Members to negotiate services liberalization outside the DDA, Macao, China believes that these initiatives reflec t those Members’ concern over the impasse in the 
on-going services negotiations.  Macao, China will continue to monitor developments in this 
regard. WT/TPR/M/281/Add.1 
 
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TRADE POLICY REVIEW OF MACAO 
WRITTEN QUESTIONS FROM SINGAPORE 
 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT 
4 TRADE POLICY BY SECTOR: AIR TRANSPORT 
 
QUESTIONS: 
 Summary 
 Page 68 (Para 4.58) 
 1. We note that the Macao government advocates an open sky policy. We would like to 
understand better the type of traffic rights that Macao exchanges with other WTO members 
under such a policy, and whether these include 5
th freedom traffic rights between Macao and 
China; Chinese Taipei; or Hong Kong, China. 
 
Answer 
 
Macao, China’s open sky policy seeks to remove restrictions to the extent possible and hence to 
foster the most liberal environment in which air operators, domestic or foreign, can easily do business. Macao, China is will ing to exchange up to the 7
th air traffic right with our counterparts; 
however, given that Macao, China is a Special Administrative Region of the People’s Republic of 
China with its own limits, Macao, China cannot exchange with foreign countries 5th freedom 
traffic rights between Macao, China; Mainland China; Chinese Taipei; or Hong Kong, China.  
 
2. We would like to clarify that there is no exchange of 7th freedom traffic rights for cargo 
transportation between Singapore and Maca o under the Singapore-Macao Air Services 
Agreement. However, Singapore would welcome such an exchange with a like-minded WTO 
Member. 
 Answer 
 
M a c a o ,  C h i n a  c o n f i r m s  t h a t  t h e r e  i s  n o  e x c h a n g e  o f  7th freedom traffic rights for cargo 
transportation between Macao, China and Singapore under the current Macao, China-Singapore Air Services Agreement, and likewise, Macao, China also shares Singapore’s view that such an 
exchange with a like-minded WTO Member is more than welcome.  
 
PART II:  QUESTIONS REGARDING THE GOVERNMENT REPORT 
Trade Policies and Practices 
 
Page 8 (Para 18) 
 3. We understand that Macao is looking to diversify its economy into manufacturing and 
other services beyond gaming, and it is envi saged that the Hong Kong-Zhuhai-Macao Bridge – 
once completed- will be a huge enabler of these effo rts. We will like to understand further, in the 
long run after the bridge has been completed, 
 
a) What new industries does Macao foresee to grow?  
b) With improved linkages with its region, how does Macao intend to promote the 
resurgence of the manufacturing sector? 
c) What synergies does Macao expect with Hong  Kong and mainland China in the future?  
d) In what aspects does Macao expect to have enhanced competition with Hong Kong and 
mainland China? 
e) How will the development and economic interactions within the Pan-Pearl River Delta be 
planned and governed? 
 
 
  
 WT/TPR/M/281/Add.1 
 
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Answer 
 
Macao, China attaches high priority to diversif ying its economy by various means.  Among these 
means are deepening regional cooperation with China, especially the Pearl River Delta, and 
improving essential public infrastructure.   
 
Against this background, the construction of Hong Kong-Zhuhai-Macao Bridge adds new impetus to Macao, China’s economic diversification.  The Bridge allows Macao, China to integrate better 
into the Pearl River Delta and provides manufacturers with more flexibility in arranging their 
production in the region so as to take adva ntage of their expanding business opportunities. 
 
Also, as a consequence of deepening regional cooperation, manufacturers have better market 
access to the Mainland and can develop new emerging sectors, such as: traditional Chinese 
medicine; cultural and creative industry; tourism and related services; Meeting, Incentives, 
Conventions and Exhibitions (MICE); and financial services.  
With broader and deeper regional cooperation, Ma cao, China is able to break through constraints 
on its market size and factors of production, and can therefore nurture different potentially fast-growing manufacturing and services sectors.  In fact, it will be more of a cooperative than a 
competitive relation in the PRD region, especially Guangdong, Hong Kong SAR and Macao SAR. 
 
Under regional cooperation, together with the unparalleled advantage in Portuguese language, 
Macao, China is developing into a high-quality “World Tourism and Leisure Centre” destination, and a trade and commerce platform for China and Portuguese-speaking countries.  In a regional 
context, this positioning allows Macao, China to develop a broader range of tourism products, 
particularly to explore the opportunities of “one route, multi-destination” tourism in the Pearl River Delta. Furthermore, Macao, China will continue to enhance its platform role to facilitate 
economic exchanges between China and the Portug uese-speaking countries as well as the EU. 
 Competition Policy 
 Page 12 (Para 4.31) 
 4. We note that Macao does not have a comprehensive competition law.  We also note that 
there is a Commercial Code and other sector-specific regulations and rules in place, and that 
Macao is an open economy with a high concentration of SMEs.  We wish to enquire whether there are any specific sectors and activities that  are not subject to existing competition codes 
and regulations and what these sectors/activities are. Further, how does the government intend 
to manage anti-competitive conduct relating to these sectors/activities?   
Answer 
 
Although Macao SAR does not have a comprehe nsive competition law, the MSAR Government 
adopts a pragmatic and sector-specific approach in its competition regime.  All commercial 
activities are subject to the Commercial Code which contains explicit provisions laying down the 
general disciplines in the context of competition, while specific competition regulations are established for various sectors, including gaming, banking and finance, insurance intermediary, 
public procurement, telecommunications, and so forth. Macao, China will continue to pay 
attention to the evolution of the economy, and takes adequate action to ensure a fair and competitive environment. 
 
 WT/TPR/M/281/Add.1 
 
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WTO Trade Policy Review of Macao, China 
(13 and 15 May 2013) 
 
Questions from Hong Kong, China 
 
I. Questions regarding the Secretariat Report 
 Question 1 
 
Page 61 (Para. 4.19) 
 Banking 
 
The Macao Financial System Act (FSA) is currently under review and the scope of the review includes market entry criteria, scope of permitted business activities as well as their prudential 
limits, appointment of and related liabilities of the members of the Board of Directors and 
Supervisory Board, requirements of external audi tors, requirement for market exit, intervention 
and liquidation procedures, and punishment for illegal financial activities.  
 
Would the Macao authorities refer to any international practices or standards in reviewing the FSA?  Would the Macao Government consider further liberalising the banking sector so as to attract more foreign investment? 
 
Answer 
 
On the basis of past supervisory experience an d development of the Macao SAR’s banking sector, 
the review is being conducted mainly with reference to:  
  the supervisory practices advocated or recommended by international organizations, 
  including the Basel Committee on Banking Supervision, the Financial Stability Board   and the International Monetary Fund, in particular, the revised Core Principles for   Effective Banking Supervision published in September 2012; and 
   the regulatory and supervisory regimes of other countries or jurisdictions that  
  maintain close financial connections with or have legal systems similar to that of the   Macao SAR. 
 
The review is to further optimize our ongoing banking regulatory and supervisory regimes in view of the developments in both the banking sector and banking supervisory standards. 
 
The Macao banking sector has been highly liberalized and is open to any foreign investors who are fit and proper.  Currently, there are 29 banking institutions in Macao SAR.  Apart from two of them having local capital, the rest are mainly subsidiaries or branches of foreign banks. 
 
Question 2  
Page 65 (Para. 4.39) 
 
Telecommunications 
 
With a view to enhancing and consolidating competition-related provisions to maintain and promote effective competition in telecommunications market, the Bureau of Telecommunications Regulations (DSRT) is reviewing these provisions, which are scattered throughout different 
regulations and laws.  As stipulated in Article 8 of the Basic Telecommunications Law, all forms of 
cross-subsidisation or other practices that subvert competition or the user’s freedom of choice are prohibited. 
 
We are interested to know the latest progress of  the review by the DSRT.  What follow-up actions 
will be taken by the DSRT after completing the review? 
 
   WT/TPR/M/281/Add.1 
 
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Answer 
 
The review of competition-related provisions is still in progress.  In order to cope with full market 
liberalization in the Macao SAR, the DSRT may proceed, if considered necessary and appropriate, to re-draft or enhance the relevant legislat ive provisions after completing the review.  
Question 3 
 Page 67 (Para. 4.46) 
 Maritime Transport  Under Article 13 of the Administrative Regulation No. 34/2009, passenger transport operators 
must submit their tariff tables at least 30 days (or 15 days for special fares or other special offers) 
prior to the implementation dates to the Maritime Administration for approval.  Tariff tables are subject to adjustment annually, with approval from the Maritime Administration, based on the 
change of fuel prices and the consumer price index.   
 In addition to the change of fuel prices and cons umer price index, are there any other factors that 
affect the approval of the tariff tables?  If so, what are these factors?  Any precedent case that the 
tariff tables were rejected?  Answer 
 Other than changes in fuel prices and the Macao SAR’s composite consumer price index, the Maritime Administration also takes into account passenger ferry operators’ financial status, 
passenger affordability, and the sustainability of the Macao SAR’s maritime passenger transport 
industry when reviewing relevant tariff tables. In addition, for the sake of balancing the interests between operators and passengers, the Maritime Administration may conduct negotiations with 
operators. Hitherto, no applications for tariff tables have been rejected. 
 Question 4  
Page 71 (Para. 4.69) 
 
Tourism 
 
In order to become a world tourism and leisure centre, the Macao Government is developing a comprehensive tourism development plan, and is studying the advantages of integrating the world 
heritage resources with cultural and creative industries. 
 We are interested to know more about the scope and details of the development plan, its latest 
progress, and implementation schedule.  Will the private sector be invited to participate in the 
programme?  If so, what are the criteria to select private companies to participate in the 
programme?  
Answer 
 
The comprehensive tourism development plan is now at its preparatory stage.  If necessary, an 
international tender will be opened to recruit professional and experienced planning companies. 
The private sector will not be excluded from the programme, and there will not be any limitation on the geographical regions of the private sector.   
As for the criteria for selection of the tender, the research method, the price, the experience of the 
company as well as the working schedule are important factors that might be taken into consideration.  
 
II. Questions regarding the Government Report  
Nil from Hong Kong, China 
 WT/TPR/M/281/Add.1 
 
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Trade Policy Review of Macao 
Written Questions from the Separate Cu stoms Territory of Taiwan, Penghu,  
Kinmen and Matsu 
 
PART I: ON REPORT OF THE SECRETARIAT (WT/TPR/S/281) 
 
A. SUMMARY 
Trade and Investment Regime 
Page 7 (Para, 9) 
Macao’s authorities are attempting to utilize the resources and opportunities offered by the CEPA 
to encourage manufacturers to bring new industries into the territory, albeit with limited success 
so far. 
Question(s): 
1. Could Macao please elaborate further on these recent developments in its manufacturing 
sector? 
Answer 
 
The manufacturing industry of Macao was strictly linked to exportation, and largely dominated by 
the textile and garment sector.  Since the elimination of export quotas on textiles and garments in 
2005 and followed by the worldwide financial crisis  in 2008, the manufacturing industry has been 
suffered from a severe and continued decrease of textile and garment production mainly exported to the US and Europe.  Despite the decline of  the textiles and garments sector, some new 
industries covering food, green lighting products, spring mattresses, electric motorcycles, and 
solar technology have emerged since few years ago.  In 2012, the total merchandise exports increased by 17.1%.  In particular, the sector of machinery-electrical equipment has become the 
most important sector. 
2. Could it also please describe the various benefits provided by the CEPA to the 
manufacturing sector, and the challenges faced? 
Answer 
 
The main benefits provided by CEPA involve the opening of the Mainland market to imports from 
Macao, China thereby creating additional export opportunities for domestic manufacturers.  Moreover, CEPA facilitates diversification of the Macao SAR’s industrial structure through the development of new array of products, ranging from coffee, refined copper foil to stamps and 
recycled plastics; exports of these products have increased markedly since 2009.  
 With regard to challenges, as most manufacturers in Macao are Small and Medium Enterprises 
(SMEs), their products are not yet well-known br ands in the Mainland market.  Hence, more 
concerted efforts are needed to promote the “Made in  Macao” products.  The slow pace of the local 
industrial transformation and upgrading is anothe r challenge faced by the manufacturing industry. 
 
B. 2. Trade Policy Regime: Framework and Objectives  2.3  Trade policy objectives 
Page 22 (Para. 2.12) 
The authorities state that promoting economic diversification and increasing regional cooperation 
are top priorities. The government wishes to enhance the steady development of the tourism and gaming industry while regulating the scale of ga ming development, and to boost the development 
of the convention and exhibitions industry, cultural and creative industries, traditional Chinese 
medicine industry, and commerce and trade services. 
Question(s): 
3. Under Macao’s present policy of industrial diversification, is the emphasis on developing 
any specific manufacturing industries in particular, and if so, which ones? 
 Answer 
The policy of the MSAR Government in respect of industrial policies is of two-folds. On one hand, the MSAR Government promotes industrial tran sformation and encourages the development of WT/TPR/M/281/Add.1 
 
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high value-added products, for instance, refined copper foil, machines and apparatus, as well as pharmaceutical products are now taking up shape in Macao.  On the other hand, in face of the 
intense competition of textiles and clothing industry worldwide, the MSAR Government strives to 
assist this mainstay industry of Macao by enco uraging and supporting the enterprises to revamp 
from original equipment manufacturing (OEM) to original design manufacturing (ODM) in order to 
enhance their competitiveness in the global ma rket.  The Macao Productivity and Technology 
Transfer Centre (CPTTM), which is a non-profit organization jointly established by the MSAR Government and the private sector, supports enterprises to utilize effectively new conceptual 
thinking, information and resources in order to develop new production and management skills. 
 4. Furthermore, with regard to the conventions and exhibitions industry, have any policies or 
regulations been enacted by the Macao governme nt relating to subsidies being provided to 
companies? 
Answer 
 
To further promote Macao’s image as the “World Tourism and Leisure Center” destination, the 
MSAR Government welcomes more conventions and exhibitions events to be held in Macao.  In 
this connection, the MSAR Government provides promotional assistance to events convened in 
Macao, namely, the publication of event information in relevant websites of the MSAR Government, the distribution of event informat ion by overseas representatives of the Macao 
Government Tourist Office, the provision of tourists information kits and free welcome gifts at the 
event venue and so on.   The objective is to help the organizers to work more effectively and efficiently on the events in Macao.  
2.4    Trade agreements and arrangements 
2.4.3.2  Services  
Page 26 (Para. 2.25) 
Through the nine supplements to the CEPA, China has progressively expanded the coverage of 
services that qualify for preferential treatment as  “Macao services supplier” to 48 service sectors. 
After obtaining a Macao services supplier certificate, businesses from Macao SAR may enter China’s market under preferential treatment. There are even fewer restrictions for conducting 
business in the Guangdong Province of China.  
Question(s): 
5. Mainland China and Macao signed CEPA ten years ago. Could Macao please identify its top 
five service industries that have a ccess to the Mainland China market? 
 
Answer 
 
From the implementation of CEPA till now, the to p service sectors that have access to the Mainland 
China market are “Individually owned stores”, follow ed by “Freight forwardi ng agency”, “Logistics” 
and “Distribution”. Other than that, there are a few branch companies or offices established by 
Macao Service Suppliers in the Mainland that provide advertising, trade mark agency, convention 
and exhibition, printing as well as tourism services. 
 
6. Do Macao’s services companies operating businesses in China still face restrictions 
imposed by local regulations there?  Does the Macao government have any policies aimed 
at assisting these businesses? 
 Answer 
 As there is a vast difference between the regulatory system of Mainland China and Macao SAR, and the business operating method between the two places varies, it is therefore necessary to 
continuously enhance the measures under Trade and Investment Facilitation in CEPA.  To conduct 
business in Mainland China, Macao’s services co mpanies have to be evaluated and approved by 
local authorities of the related service sectors. In order to assist these companies, Macao Economic Services of the Macao SAR Government has established the CEPA Information Center to handle 
inquiries related to CEPA and businesses operating in the Mainland.  Together with the Legal 
Affairs Bureau and Macao Trade and Investment Promotion Institute, Macao Economic Services has also constructed the CEPA dedicated website, which provides all-round and in-depth 
information about the CEPA.  For instance, it allows users to browse easily through “Investing in WT/TPR/M/281/Add.1 
 
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Macao” and “Investing in the Mainland” to obtain information on the tax systems, regulations of relevant industries, as well as other trade and economic laws and regulations of both places.  
Nonetheless, the Macao Trade and Investment Promotion Institute launched the China Business 
Advisory Service by inviting an economic specialist from the Mainland to provide advisory service at Macao Business Support Centre (MBSC). The advisory service includes responding to business 
and trade information enquiries, as well as providing follow-up to investment, trade and economic 
co-operation projects. 
3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures directly affecting imports  
3.2.9  Government procurement Page 38 (Paras 3.52 & 3.59; Table 3.5) Macao SAR is not a signatory to the WTO Government Procurement Agreement (GPA), nor an 
observer. The authorities indicate that procurem ent procedures and disciplines are "virtually 
consistent with the international standards".  In 2011, total expenditure on government procurement accounted for 5.7% of GDP (Table 3.5). 
In 2009, with a view to enhancing the efficiency  and effectiveness of public works procurement, 
the DSSOPT established a centralized registry syst em of qualified constructors (operational from 
2010) for selective tenders. Public works in this system are categorized into four types, and for 
each type, into three groups. Constructors also register and are then assigned to a group in 
accordance with an assessment conducted by the DSSOPT assessment committee. Selective tender is then applied: i.e. when a tender is posted, a list of constructors will be drawn randomly from the database, witnessed by the assessment committee, as potential qualified contractors. 
Question(s): 
7.  Could Macao consider applying to accede to the WTO/GPA? 
Answer 
Macao, China is not a party to the WTO Agreement on Government Procurement (GPA) owing to 
the diverse nature of procurement of goods and se rvices.  Nevertheless, Macao, China’s laws and 
regulations on government procurement do provide a clear indication for all government agencies 
involved in the procurement process of the procedures to be followed.  Accession to the GPA would 
require a thorough review on the current legi slative framework and may require subsequent 
revisions to the procurement system of the SAR. 
8. What are the qualifications required by foreign constructors for them to be listed in the 
centralized registry system of qualified constructors of the DSSOPT? 
Answer 
 
Foreign contractors cannot be listed in the centralized registry system of qualified contractors of 
the DSSOPT.  However, if the projects accept fo reign contractors during the tender process, the 
foreign contractors will then need to meet the same requirements as local qualified contractors as 
well as the requirements pursuant to Article 63 of the Decree-Law no. 74/99/M, which specifies 
that the bidder needs to provide the registration of  their contractors with their home country, or if 
there is no such registration, the bidder needs to  provide documents, declaring their professional 
personnel, past experience, financial status and so on.  
PART II: ON THE GOVERNMENT REPORT (WT/TPR/G/281) 
 
2.   MAIN INSTITUT IONAL DEVELOPMENTS 
2.3  Reform of Public Administration and Institutionalization of 
Transparency 
Page 4 (Para. 2.8) 
As regards measures to combat corruption, the Commission Against Corruption (CCAC) has 
stepped up supervision of the private as well as the public sector, with the establishment under its 
auspices of an anti-graft system involving, inter alia, amendments, adopted by the  Legislative 
Assembly in 2013, to the System of Declaration of  Income and Property for civil servants and the WT/TPR/M/281/Add.1 
 
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entry into force of the Prevention and Suppression  of Bribery in the Private Sector Law in 2010 as 
well as measures to deal with complaints. 
Question(s): 
9. Could Macao please explain the main objectives and content of the  aforementioned law, 
and describe achievements so far? 
 
Answer 
a) System of Declaration of  Income and Property 
- The main objective of the amendments to the System of Declaration of Income and 
Property for civil servants, adopted in 2013, is to increase the transparency of the financial 
situation of public servants occupying high public or political office by means of its 
Declaration, and, in the case of top level officials, by means of their public disclosure. This 
will enhance the integrity of the holders of the above mentioned positions as well as the 
institutions where they carry out their functions.  
- The above System will work from now on also as a public accountability system. 
- The System’s concrete objectives are: 
o To build a corruption-free administration; 
o To improve transparency; 
o To strengthen monitoring mechanisms; 
o To ensure compliance with the obligations set out in article 5º of the UNCAC; 
o To reduce the opportunities for direct involvement in corrupt practices and fraud. 
- This system entered into force on 22nd April 2013. 
b) Law nº 19/2009 - Prevention and Suppression of Bribery in the Private Sector  
- The adoption of legislative measures to criminalize acts of corruption in the private sector, 
as set out in the United Nations Convention Against Corruption, provides the legal means 
necessary to crack down effectively on corruption, in order to achieve the common goal of 
the States Parties to ensure stability and security of society, the values of democracy, ethics, justice, sustainable development and the rule of law. 
- This law regulates essentially the following matters: 
o Typifies as a crime of corruption in the private sector, the offer or acceptance of 
undue advantage in return for an act or omission that constitutes a breach of the 
duties of a person who, in any capacity, directs a private sector entity, or works in it; 
o Sets the same criminal framework for corruption, both active and passive, in the 
private sector, showing that the damage caused by these two forms of corruption to social values are identical; 
o As referred in the law on corruption in the public sector, the punishment may be 
waived if the agent, before commission, rejects the offer or the promise that he had accepted, or if he returns the advantage or, in the case of fungible thing, its 
correspondent value; 
o As provided for in article 26º of the UNCAC,  establishes the liability of legal persons 
for corruption offences, under similar terms as those provided for in the laws on the 
prevention and punishment of the crime of  money laundering, on the prevention and 
suppression of the crimes of terrorism an d on combating trafficking in persons.  
 
Besides government departments, CCAC also handles cases involving private sector. In 
addition to handling local cases, the CCAC has been cooperating with other countries and 
economies.  In 2011, the CCAC was requested for assistance in 13 cases from law 
enforcement agencies outside Macao SAR.  
Meanwhile, understanding the importance to promote education on integrity and honesty, 
the CCAC has actively organized a wide range of activities targeting at various audiences to raise awareness on anti-corruption and ga in public support. The working group meeting 
on review of implementation of the United Nations Convention Against Corruption was held 
in September 2012 in Macao, China. WT/TPR/M/281/Add.1 
 
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Trade Policy Review of Macao China 
13 and 15 May 2013 
EU questions 
 
WT/TPR/S/281 
 
2.4 Bilateral agreements Page 24 - 28 para 2.18 – 2.31  provides a detailed layout of the sectors and aspects covered by 
the Closer Economic Partnership Arrangement (CEPA) between Macao and China. 
 EU Question No.1:  The EU would like to know whether Macao SAR can identify priority areas for future liberalization 
under CEPA as well as any mechanism aimed and addressing possible implementation difficulties?  
 Answer 
 As promulgated by the Government of Guan gdong Province, the Guangdong Province will 
accelerate cooperation in the development of trade in services among Guangdong, Hong Kong and 
Macao in the following priority areas: commercial services, professional services, scientific and 
technical services, cultural services as well as social services.  Therefore, the Macao SAR Government will try to work in coordination wi th the development plan of Guangdong for future 
liberalization, especially in the context of CEPA. 
In addition, through the consultation mechanism of CEPA, opinions, suggestions and requests of 
the public are collected every year for consideration of further liberalization under CEPA. Any possible implementation difficulties can also be communicated and resolved through this 
consultation mechanism.  
 2.5 Foreign investment regime 
Page 29 para 2.43  provides an outline of the bilateral investment agreements, double taxation 
avoidance agreements and tax information exchange agreements.  EU Question No.2:  
The EU would like to know whether there are further agreements under negotiation or ratification? 
Answer 
 
Macao, China is actively negotiating Tax Information Exchange Agreements (TIEAs) with many 
jurisdictions,  including: South Africa; Czech Republic; Germany; Japan; Malta; Argentina; Brunei; San Marino; Guernsey; UK; Spain; Ireland; New Zealand; and Vietnam (DTA). 
3.3.2 Export prohibition , restriction and licensing 
Page 42 para 3.65  gives the list of products subject to export licensing regime. The list does not 
cover many items that could be used for weapons of mass destruction production or of their means of delivery even if they only transit through Macao. 
 
EU Question No.3:  The EU would like to know how Macao SAR implements UN Resolution 1540 given the limited list of 
items subject to export control? 
Answer 
 
UN Resolution 1540 has been implemented by the enfo rcement of different pieces of legislation in 
Macao SAR. In the first place, it has been mandated by means of Chief Executive’s Notice No.25/2004 in the Official Gazette (No. 31, Series II, of 4 August 2004), giving effect to its applicability in Macao SAR.  In addition, there is an exception clause in Article 5 of Law No. 7/2003 
establishing the circumstances under which, cont rary to the principle of free trade pursued by 
Macao SAR, a ban on exports is necessary and allowed. One such circumstance is compliance with the obligations arising from the implementation of international agreements applicable in Macao 
SAR.  
  
 WT/TPR/M/281/Add.1 
 
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Page 38, Para 3.52 and page 9 para  4.13 of the Government report 
The report states that Macao procurement procedures and disciplines are in compliance with 
international standards, nonetheless Macao SAR is not a signatory to the WTO Government 
Procurement Agreement (GPA). The report also in dicates that the authorities are envisaging a 
review of the government procurement legislation. 
EU Question No.4 : 
Does Macao consider becoming a signatory to the WTO’s Plurilateral Agreement on Government Procurement? 
 
Answer 
 As in the case of its other trade and trade-related policies, the MSAR Government maintains a 
transparent, open and non-discriminatory procurem ent regime aimed primarily at ensuring value 
for money.  Although Macao, China is not a signatory to the GPA, its procurement procedures and disciplines are broadly in line with international standards concerning tender offer, tender 
collection, tender opening and evaluation of tender  documents, awarding contract and monitoring.  
Moreover, in the pursuit of continuous improvements in its public procurement regime, Macao continues to conduct regular reviews in order to improve related laws and regulations, as well as 
to follow the public procurement developments at the international level, including at the WTO. 
The Government does not feel that the MSAR ha s a comparative advantage regarding the export 
of goods and services related to government  procurement by most other WTO Members.  
 
EU Question No.5 
Could Macao provide more information on the timing of the review and type of changes envisaged?  
 
Answer 
 
The laws and regulations on government proc urement of the MSAR aim to provide clear 
procedures to be followed by all government agencies involved in procurement activities.  These 
laws and regulations are in the review process. Meanwhile, the MSAR Government is collecting information from different sources and agencies involved in government procurement for this review process. 
 
3.4.4. Competition policy Page 51 para 3.107 and 3.108 para 4.31 pa ge 12 of the government report 
The report indicates that there is still no overall competition law in Macao but that provisions are 
scattered through various instruments such as the commercial code and other sector specific regulations and rules. In addition, it is said that competition was introduced into fixed 
telecommunications, bus services and the electricity market. 
 EU Question N°6:  In light of the above, the EU would like to know how the authorities are equipped to fight cartels or 
bid rigging or unfair cross subsidization across sectors in the absence of an overarching 
competition law.   
Answer 
 
As mentioned in both the Secretariat and Government Reports, the laws and regulations governing 
competition are embedded in the Commercial Code of Macao and relevant sector-specific 
regulations.  The sector-specific regulators have established sanctions against anti-competitive conduct, such as price fixing, bid rigging, or unfair cross- subsidization in their own sectors and are responsible for the enforcement of their regulati ons on competition.  The regulations include 
principles and sanctions, whether laid down in the form of fines, or other administrative actions, 
such as revocation of specific rights granted.  Also, in accordance with the Commercial Code, complainants can file civil lawsuits against the al leged perpetrators of anti-competitive acts in 
order to obtain compensation. In tandem with the above, the Macao SAR Government continuously 
pays attention to the evolution of the economy, the dynamics of development of individual sector, as well as society’s views in this respect.  
EU Question No.7: 
Following Hong Kong SAR's recent adoption of a ge nerally applicable competition bill, also covering 
cartels, is Macao considering doing likewise? WT/TPR/M/281/Add.1 
 
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Answer 
 
Competition provisions are found in the Commercial Code and other sector-specific regulations and 
rules, which the MSAR Government believes are appropriate, given the openness and very small 
size of the local economy.  These sector-specific regulations, particularly those on oligopoly 
industries, including gaming and telecommunication, contain provisions on prohibiting agreements 
and practises that have the effect of restricting competition.   
3.4.5.2 Industrial property 
Page 53  and WTO/TPR/G/281 pages 10-11  indicate that the authorities of Macao have 
initiated in 2012 a review of the Industrial Pr operty Code. In this regard, amendments are 
intended to cover compulsory licensing for pharmaceutical products to comply with the relevant 
TRIPS provisions.  
 EU Question No.8:  
Could the authorities provide further information and in particular clarify whether the revision 
could lead to covering more topics than pharmaceutical products and if so, which ones? -What is the timeline envisaged for the completeness of the revision? -Would a broad consultation be 
organised during the process of revision? 
Answer 
 
In our existing Industrial Prop erty Code and its drafting amendment, all sections including 
compulsory licensing generally cover a wide range of subject matter, and are not restricted to 
certain topics. The relevant articles of compulsory licensing specific to pharmaceutical products in the amendment are intended to implement Paragr aph 6 of the Doha Declaration on the TRIPS 
Agreement and public health. 
 Since we strive for quality and precision in th is revision and the legislative process remains 
unpredictable, the estimated timeline for completion of this revision is difficult to determine. 
However, once the draft is finished, it will be opened for consultation. 
 4.3.4.2 Land transport services 
Page 68, Para 5.54  and page 14, para 5.15 in the Government report  
With MTR, the Hong Kong rail undertaking is quite a powerful railway and urban transport operator, operating rail franchises in th e UK and Sweden (metro of Stockholm). 
 
EU question No.9: Does the Government of Macao intend to run the light rapid transit system (LRT) as a concession 
like its public bus services? If so, does it intend to organise a public tender for the rail services or 
does it intend to entrust it to a public-owned entity?  Answer 
 Studies related to the LRT operations are currently in progress. Public announcements will be made once the studies are completed.  WT/TPR/M/281/Add.1 
 
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Fourth TPR of Macao, China 
(13 and 15 May 2013) 
 
QUESTIONS FROM INDIA 
 
Part I :  QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 53 (Para 3.118) 
Patent Applicants to the SIPO can seek extension of the patents to the territory to MSAR. 
 
Question 1  
Macao, China is requested to clarify whether Patent Applicants in MSAR can seek extension of 
the patents to Mainland China especially since SIPO is the only substantive examiner for 
invention patent applications in the MSAR (Paragraph 3.117)? 
 Answer 
 Invention patents granted by China's State Intellectual Property Office (SIPO) or the applications of invention patent can be extended to the MSAR in accordance with the cooperation agreement 
between the Macao Economic Services and the SIPO. This is a one-way procedure. If owners of 
inventions seek patent protection in both China and the MSAR, they can apply for invention patents in China first and then request an extension in the MSAR. The procedure of extension is simple and no further substantive examination is required. 
 
Page 48 (Para 3.92) 
 
Macao SAR provides interest rate subsidies to all locally registered enterprises for purchases of 
specific equipments, energy efficient equipm ent or material, energy management system, 
heating/cooling system operating on renewable energy etc. 
 
Question 2   
Could Macao, China please clarify the criteria used for grant of the interest rate subsidies to the 
different eligible categories and the list of top 10 beneficiaries of these subsidies in the last three 
financial years? 
 Answer 
 Macao SAR provides interest rate subsidies to all enterprises with eligible investment projects/categories, provided they have established business operation/offices in Macao SAR 
with proper business registration.  The interest rate subsidies are granted to any enterprise that 
fulfils the requirements stipulated under the regulation. For instance, the entity must have a tax file, should not have any outstanding liability to the Government, including deferred taxes, and must fulfil its responsibility to the Social Security Fund. 
 
In the previous three financial years, the top 10 beneficiaries included wholesale business; building and public construction industry; public service; social welfare and personal services; 
real estate related services; retail business; transportation and storage services; restaurants 
and hotels; textile, garment and leather manufacturing; paper printing and publication as well as food, beverage and tobacco manufacturing. 
 
 WT/TPR/M/281/Add.1 
 
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WORLD TRADE ORGANIZATION 
Trade Policy Review of Macao, China 
May 13 and 15, 2013  
QUESTIONS FROM THE GOVERNMENT OF CANADA 
Government Report (WT/TPR/G/281)  
 
Part 2 Main Institutional Developments : 2.3 Reform of Public Administration and 
Institutionalization of Transparency: paragraph 2.6, page 4: 
 
As a result of public consultation in 2011, Macao in dicates that a revision of its Land Law has been 
submitted to its Legislative Assembly. Macao also notes that one of the objectives of revising the Land Law is to further enhance the transparency of land allocation. 
 
1. Can Macao detail the proposed revisions made to the Land Law in relation to transparency?  
For instance, does the revised Land Law include improvements to its provisions on 
electronic publication of tendering; the publication of contract award winners; the 
publication of statistics on the management of the land, such as the land reserve and the 
land sold; and the creation of arbitration procedures in case suppliers wish to challenge procurement decisions? 
 
Answer 
 
The revised Land Law includes improvements to e nhance the transparency of land allocation.  In 
particular, Article 2 highlights the Principle of Pub lic Right to Know, stipulating that the authority 
should let the public understand, by appropriate me ans, the land lease and occupation process, in 
order to improve the transparency of administrati ve procedures. Article 113.3 states that in the 
case of exemption from public tendering, the main content of the land lease application, especially 
the name of the applicant, the applied land area, location, use, and the amount of premium, shall 
be made known to the public, by appropriate means, during the process of deliberations.  WT/TPR/M/281/Add.1 
 
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Trade Policy Review of MACAO, CHINA 
May 13th and 15th, 2013 
Written Questions from Japan 
 Report by the Secretariat (WT/TPR/S/281) 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.4 Measures affecting production and trade 
3.4.5 Intellectual property rights  
3.4.5.2 Industrial property  
3.4.5.2.1 Patents  
(Question1: Page 53, Paragraphs 3.117-3.119) 
In Macao, “Holders of invention patents granted by the SIPO and protected in China may request 
for extension of their rights to the MSAR”. In this context, is it possible to have a patent granted in 
Macao based on the application (hereinafter, “PCT/DO” in China”) which has been transited to the 
national phase in China from the PCT international application phase in which China was designated?  In other words, please inform us  whether the aforementioned “invention patents 
granted by the SIPO” include PCT/DO in China. 
 
If it is not possible at present, is it planned to make it possible in the future? If it is unlikely to 
make it possible for the time being, please explain the reason. In Hong Kong, which has a policy of "two systems in one country" which is similar to Macao, we understand that it is possible to obtain 
a right of invention patent or utility model patent based on the application which has been 
transited to the national phase in China from the PCT international application in which China was designated. 
 
Answer 
 After PCT international applications entering the Chinese national phase (with Notification of 
International Application Entering the Chinese National Phase ), applicants may request an 
extension of their applications of invention patent to the MSAR. Similarly, for invention patents originated from PCT international applications and granted by the China’s State Intellectual 
Property, right holders may extend their rights to the MSAR within 3 months counted from the 
date of announcement of the granting of the patent in China. 
 
3.4.5.2.2 Trade marks 
(Question2: Page 54, Paragraph 3.124) 
Macao has an original trademark system which is different from that of China. China has filing procedures on the basis of the Madrid Protocol. However, Macao does not approve of such procedures. Is it planned to make it possible to ad opt the procedures of the Madrid Protocol in the 
future? 
 Answer 
 The Madrid Agreement and Protocol both envisage the procedures to be followed at the national 
level. Taking into accounts the particle system now operating in the MSAR, we need more 
consideration on adopting the procedures of the Madrid Protocol. WT/TPR/M/281/Add.1 
 
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TRADE POLICY REVIEW OF MACAO – 13 AND 15 MAY 2013 
 
QUESTIONS FROM AUSTRALIA 
 WT/TPR/S/281 
 
3 TRADE POLICIES AND PRACTICES BY MEASURES 3.4 MEASURES AFFECTING PRODUCTION AND TRADE 
3.4.5 Intellectual property rights 
3.4.5.4 Enforcement  Page 56, Paragraph 3.139 
 
We understand from Table 3.18 that the Confiscation  of Infringing Product increased almost by a 
multiple of 20 in 2011 compared to earlier years (e.g. 2010). This increase was particularly 
pronounced for medicines and tablets. What conclusion does Macao draw from this result? 
 Answer 
 No cases related to infringement of intellectual property rights of medicine were found in 2007, 2009 and 2010.  However, there were a few cases in 2008, 2011 and 2012, and the numbers of tablets confiscated were 26210, 21864 (plus 622 bottles) and 6406 respectively.  The medicines 
seized from several pharmacies in the local market were generic drugs, not counterfeit or fake 
drugs.  The patent for these medicines has been granted a renewal in Macao SAR. In short, no particular trend can be detected from these seizures; they involve just a few occasional cases 
unrelated to each other. 
 4 TRADE POLICIES BY SECTOR 
4.3 SERVICES 
4.3.3 Telecommunications  Page 64, Paragraphs 4.34-4.36 
 
Australia notes the progressive liberalisation of Macao SAR’s telecommunication sector.  Can Macao SAR provide an update on the tender process for the issuance of a new fixed-line licence?   
 
Answer 
 
The tendering process for the issuance of a fixed public telecommunications network licence is still 
in progress and is expected to be completed by the first half of 2013.  WT/TPR/G/281 
 
2 MAIN INSTITUTIO NAL DEVELOPMENTS 
2.3 REFORM OF PUBLIC ADMINISTRATI ON AND INSTITUTIONALIZATION OF 
TRANSPARENCY 
 Page 4, Paragraphs 2.4-2.5 
 
Australia welcomes efforts by Macao SAR to improve transparency of its trade and trade-related policies and regulations, increasing public accountability and integrity as well as improving investor confidence.  Could Macao SAR provide some furthe r details on how the Government Spokesperson 
system and the Standard Guidelines for Public Policy Consultations have impacted the 
development of trade and trade-related policies and regulations?  
Answer 
 
In 2010, the Macao Government established the Go vernment Spokesperson system, which is part 
of its effort to increase transparency and pr omote interaction between the government and the 
public.  The Office of the Government Spokespe rson is mainly responsible for drafting the 
government’s information policy, facilitating quick responses to emergencies, promoting the WT/TPR/M/281/Add.1 
 
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government’s relations with the media and the public, and most importantly, ensuring a co-ordinated and coherent system for releasing Government news in a timely manner. 
 
In addition, the Standard Guidelines on Public Policy Consultations, which were introduced in 2011, aims to enhance coordination of all consultations, solicit views from professional sectors and the 
general public as well as improve the formulation or  revision of policies and measures so that they 
meet the actual needs of the society.  
Implementation of the Government Spokesperson system and the Standard Guidelines on Public 
Policy Consultations demonstrates the Government’s determination to promote transparency and evidence-based policy-making. These initiatives are crucial in ensuring an open trade regime, as 
both local and foreign investors should have easy access to information on regulations, 
procedures, and other measures that affect their interests.  In addition, these measures can also 
improve public accountability and promote an attractive environment for investment.  WT/TPR/M/281/Add.1 
 
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MACAO TRADE POLICY REVIEW 
 
WRITTEN QUESTIONS FROM MALAYSIA 
 
SECRETARIAT REPORT 
Page 50 
3.4.3.3 Land Allocation 
 
3.100. The scarcity of land in Macao SAR indicates that land allocation can be an important 
policy instrument. In accordance with the Basic Law, which stipulates that land is State 
property, Macao SAR no longer sell land. Around 95% of the land in Macao SAR is owned by the Government. The Government is responsible for land management, and its lease or grant to 
individuals or legal entities for use or deve lopment. The Land, Public Works and Transport 
Bureau (DSSOPT) is the competent authority for land allocation.  
3.101. The revision of the Land Law completed its second phase of public consultation on 31 
January 2011, and the draft revision was tabled to the Legislative Assembly in December 2012. 
The revision is expected to improve provisions in the existing law, enhance transparency in land allocation, and optimize land utilization as well as future urban planning. 
 
Question 
 
Q1: Many WTO countries are concerned with the balance between trade growth and 
the ecosystem. Under the revision of Land Law, does Macao SAR consider 
implementing any biodiversity and carbon stock related? 
 
Answer 
The Revision of the Land Law has introduced a new requirement for the applicant of land lease, namely the submission of the environmental impact assessment report, in order to seek a 
balance between economic development and environmental protection. 
 Q 2 :   M a l a y s i a  w o u l d  l i k e  t o  k n o w  f u r t her whether Macao SAR has introduced or 
planning to introduce any law relating to biodiversity. 
 Answer 
 The Convention on Biological Diversity, is applicable to the Macao, China.   According to the “Environmental Protection Planni ng of Macao (2010-2020)” , the  regulation 
for managing the nature reserve will be considered in the proposal of the standard and 
legislation research projects.  
GOVERNMENT REPORT  
5.3 Trade in Services 
 (d) Cultural and creative industries 
 
5.14. The MSAR Government sees great potential in capitalising on the cultural heritage from both East and West, especially with the inclusion of “The Historic Monuments of Macao” on 
UNESCO’s World Heritage List. Furthermore, the Cultural Affairs Bureau established the 
Department for the Promotion of Cultural and Creative industries in 2010, to facilitate the 
growth of emerging cultural and creative industries in Macao, China. Its work includes: 
promoting and exhibiting cultural and creative products; conducting studies and formulating a 
policy framework for its development; as well as collecting information on local businesses with a cultural and creative orientation.  
Question 
 
Could Macao SAR provide some of the examples  of “creative products”? Is there any 
specific policy framework for the development of the creative industry? WT/TPR/M/281/Add.1 
 
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Answer 
“Creative Products” are considered to be all obje cts that have been created with an economical, 
promotional and artistic value by artists in Macao SAR. They include: a)  souvenir and Macao promotional products; and b) products that derive from the eight areas to which Macao SAR 
has given special relevance on the Cultural and Creative Industries (CCI), including  music CD 
packaging and concerts; film and video prod uctions in Macao SAR and abroad (fiction, 
animations, documentaries, music videos); comic books and animation production and 
releases; publishing rights; outfits, fashion acce ssories and jewelry; industrial design products 
and merchandising.  
The Cultural Affairs Bureau advocated the blue print for the development of the cultural and 
creative industry and the short, medium and long-term objectives in August 2010. The 
blueprint identifies eight directions for development in design, publication, film-making, fashion, 
music, comics and animation and so on, with the priority in visual arts and design. The five-
year short-term objectives include the implem entation of supporting policies and measures, 
assistance to SMEs, and fostering the development of local cultural and creative industry. The 
10-year medium-term objectives include the establishment of hardware facilities through 
medium to long-term planning for the development of the Hengqin new district as well as the 
reclamation of the new land area, in order to consolidate and expand the foundation of the 
cultural and creative SMEs, and provide a business environment through administration and a 
legal system. Long-term objectives aim to enhance basic cultural and creative education and 
ensure that students receive cultural, artistic and creativity education since childhood, so as to 
consolidate a foundation for sustainable development and enhance our competitiveness. 
 WT/TPR/M/281/Add.1 
 
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QUESTIONS FROM TURKEY 
 
REPORT BY THE SECRETARIAT 
 4 TRADE POLICIES BY SECTOR 
 
4.3 Services, Para 4.57  
“Macao SAR’s aviation industry began in 1995, when a concession for public air transport was 
granted to Air Macau, giving it the exclusive right to… for 25 years.”  -What is the scope of “public air transport”? 
 
Answer 
 “Public air transport” encompasses passengers, cargo, mail, and parcels from and to Macao SAR. 
 
-Exactly when this concession has been given?   Answer 
 The concession was granted by the Government to Air Macau in 1995.  
-Is there general information about the “exclusive rights”? 
Answer 
 
The “exclusive rights” mean that Air Macau has been given the priority to utilize the air traffic 
rights negotiated by the MSAR government under all the Air Services Agreements.  
 
4.3 Services, Para 4.66  
“…when the CEPA allowed residents from Mainland China to apply for a pass to visit Macao SAR on 
an individual basis under the facilitated Individual Traveller Scheme (ITS).  How loosening of visa requirements with China were integrated to the CEPA? Could the 
government of Macao explain this? 
 Answer 
 The Closer Economic Partnership Arrangement pr omotes economic and social exchanges between 
the Mainland and Macao SAR.  Facilitation measures are thus formulated to galvanize the flows of 
goods, information, capital and people.  Under CEPA, the Individual Traveller Scheme (ITS) was 
launched, allowing residents of 49 Mainland cities to visit Macao in an individual capacity.  Qualified Mainland residents can thus apply for ITS visas travelling to Macao.  In addition, under the Industrial Cooperation in Trade and Investment  Facilitation of CEPA, new measures have been 
rolled out to facilitate Mainland businesses taking part in the conventions and exhibitions held in 
Macao SAR.  
4.3 Services, Para 4.69 
 It is understood that the “renewal fee suspension” here means “new licenses are not given any 
more”. If this definition is true, could the government of Macao explain why it is given up to 
provide new licenses? In this framework it may be a breach of GATS commitments for Macao. 
 Answer 
 In face of the 2009 worldwide financial crisis, the Macao SAR Government initiated a measure to help the tourism industry.  The measure exempted all hotels, pensions, restaurants, bars, 
nightclubs, saunas, massage parlours, health clubs, karaokes lounges, travel agencies, tour 
guides, ground transfer agents and tour guide trainees licensed by the Macao Government Tourism Office from a once and for all annual license renewal fee.  This was the only financial assistance to 
the industry. It has nothing to do with the approval of new licenses. WT/TPR/M/281/Add.1 
 
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4.3 Services Could the government of Macao explain why there are no GATS commitments on maritime and 
land transport despite the high level of competitiveness. 
 Answer 
 In tabling our GATS commitments, the Government had reviewed the overall market situation in each service sector, i.e., the scale of the market, the degree of openness, the laws and 
regulations, the benefits from liberalization, and the relative attractiveness of the service sector 
itself.  Maritime transportation of persons is highly competitive in Macao SAR, with six shipping companies operating passenger transport between the Macao SAR, the Hong Kong SAR, and Mainland China.  Taking into account the demand  for maritime passenger transport, the capacity 
of the Macao SAR’s water routes and maritime safety, the MSAR Government considered that 
GATS commitment on maritime transport sector mi ght not be the best option for the development 
of this sector. 
 
As for land transport, the MSAR Government had opened a tender for all existing bus routes in 
2009, which successfully attracted one more compan y to the originally two-operator market.  
Together with the upcoming Macao Light Rapid Transi t, which is expected to be in service by 2015, 
the fundamental strategy of the Government on public transport has been completed and the room for further expansion is limited.   
4.3 Services 
If it is a leading industry compared to the rest of the world, could the government of Macao explain why there is no GATS commitment on gaming? 
 
Answer 
 
In accordance with Article XIX (2) of the GATS, it is noted that the process of liberalization shall 
take place with due respect for national policy obje ctives and the level of development of individual 
Members, both overall and in individual sectors. Taking into account that the gaming sector in 
Macao SAR is still at its early stage of development and remains the cornerstone of the MSAR 
economy, the Government does not intend to ma ke GATS commitments on gaming for the time 
being. At present, the gaming sector in Macao SAR is operated by 3 concessionaries and 3 sub-
concessionaries, some of them owned by foreign in terests. Given the very small size of the local 
economy, its openness to inward FDI, and thus  foreign commercial presence, has ensured intense 
competition in the sector. In this regard, the M SAR Government will continue to evaluate and 
assess the development of the sector. Any future GATS commitment on gaming will depend on the 
development of both the sector and the economy as a whole. WT/TPR/M/281/Add.1 
 
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FOURTH TRADE POLICY REVIEW OF MACAO, CHINA 
WRITTEN QUESTIONS FROM BRAZIL 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
Macao, China’s economy is increasingly reliant on the services sector, of which gaming and 
associated services account for its virtual entirety. Although the independent customs territory’s 
economy has boasted impressive growth figures over the last few years, inflation control and 
economic diversification, both of which are aimed at addressing effects of the boom in the tourism sector, have become urgent matters to ensure the stability of the economy and lessen 
vulnerability to external shocks. 
 Questions: 
 
1. Could Macao expand on the plans to diversify away from the gaming sector, not only in 
tourism-related services, but also in sectors unrelated to tourism and in manufacturing? 
Answer 
 
As with many small economies around the world in an early stage of economic development, growth is likely to be initially led by one or a few industries, and Macao, China is no exception. 
 
In conjunction with broader and deeper regional cooperation and its connection with Portuguese-speaking countries, the Macao SAR Government has been implementing measures to diversify the economic structure by developing the territory into a high-quality “World Tourism and Leisure Centre” destination as well as a trade and commerce platform for China and Portuguese-
speaking countries.  
 Broadening and deepening regional cooperation and integration help Macao to develop different 
sectors, including manufacturing, logistics and se rvice outsourcing, by utilizing the comparative 
advantages of both Mainland China and Macao SAR. The joint project between Guangdong and 
Macao, China in the Guangdong-Macao Co-operation Industrial Park in Hengqin is another 
initiative to promote development in manufacturing as well as education and professional 
training, and other emerging industries. The Closer Economic Partnership Arrangement (CEPA) between the Mainland and Macao SAR also cr eates opportunities for the development of 
manufacturing and service sectors. 
 
All these policies have been supporting the growth of the overall economy, and thereby 
contributing to an increasingly balanced and diversified economy. 
 
2. In the face of the current situation in manufacturing, whose share in total GDP and 
employment has dropped to negligible levels, how does Macao, China intend to revive the 
sector despite factor of production constraints such as high cost of labor and low availability 
of land? 
Answer 
 
Over the years, the SAR Government has been taking steps to enhance the business 
environment, with a view to establishing more  favourable conditions for all enterprises.  
Concerning the development of manufacturing, regional cooperation measures enable products 
of Macao origin to enter the vast market of the Mainland duty-free.  The Government has 
undertaken initiatives to promote Macao products by helping exporters to participate in trade promotion events, including local and international fairs.  Moreover, the "Macao Ideas" product 
display centre helps to promote products "Made in Macao", "Macao Brand", and "Designed in 
Macao" as well as products from Portuguese-speaking countries.   While providing an impetus to upgrade traditional industries, the Government has been 
formulating policies to facilitate the development of new industries.  Regional integration allows 
Macao SAR to break through the constraints on market size and resources and to provide opportunities for the development of traditional Chinese medicine, cultural and creative 
industries, education and professional training, and other emerging industries.  
 In recognition of the constraints faced by manufacturing industries, the Government will 
continue to support the sustainable development of this sector by launching various initiatives. WT/TPR/M/281/Add.1 
 
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3. Do plans to diversify the economy entail bo lstering domestic demand and, therefore, 
diminishing dependence on export-led growth? What would the targeted sectors be? 
Answer 
 
As a very small open economy, Macao SAR will co ntinue to be heavily dependent on exports for 
its growth. To sustain economic growth and thus prosperity, however, Macao SAR has been 
striving to diversify its economy.  Major policies for economic diversification include: deepening regional cooperation; improving essential public infrastructure so as to allow better connections 
and integration into the Pearl River Delta region; facilitating exports; reviving the manufacturing 
sector by promoting new industries; supporting small and medium-sized enterprises; developing Macao into a high-quality “World Tourism and Leisure Centre” destination; and enhancing the Macao SAR’s role as a trade and commerce platform between China and Portuguese-speaking 
countries. These diversification measures will help Macao to overcome constraints on its market 
size and production factors, and therefore nurtu re potentially fast growing manufacturing and 
services sectors, including traditional Chinese medicine, cultural and creative industry, tourism 
and related services, such as hotels, retailing, etc., Meeting, Incentives, Conventions and 
Exhibitions (MICE), and financial services, etc.   
4. What role is to be assigned to foreign trade and regional cooperation and integration in 
those diversification efforts? 
Answer 
 
Macao SAR is a free port with no tariffs levied on imports and no policies or measures hindering 
trade in goods, services or foreign investment. Deepening regional cooperation and integration, by providing greater opportunities for diversification, complements and adds new impetus to the 
Macao SAR’s foreign trade in both goods and services. 
 Better market access under regional cooperation has rejuvenated the manufacturing sector. 
Macao manufacturers are encouraged to develop new products and can also explore new 
markets in the Mainland and Portuguese-speaking countries. Also, new emerging sectors, such as traditional Chinese medicine, are to be incuba ted under the umbrella of regional cooperation. 
 
Furthermore, with its unique European historical and cultural background, Macao is developing 
into a “World Tourism and Leisure Centre” destination as well as a trade and commerce platform for China and Portuguese-speaking countries. Deeper regional integration continues to bolster 
the Macao SAR’s tourism sector and also feed through to other related sectors, such as hotels, 
wholesaling and retailing, and Meeting, Incentives , Conventions and Exhibitions (MICE) etc. Also, 
the widening scope of RMB business and the Macao SAR’s increasing role as a RMB settlement 
platform is galvanizing trade and economic activities among the Macao SAR, China and 
Portuguese-speaking countries. 
 
5. As the local currency, the pataca, is pegged to the Hong Kong dollar and an open capital 
account regime is in effect, what are the tools and measures under consideration to tame 
rising inflation in a sustainable manner? 
Answer 
 
Macao, China’s economy is growing at near-full employment. In the face of limited resources, 
supply-side measures, including importation of labo ur and improved labour productivity owing to 
strong public investment in training and education have extended Macao’s production frontier; 
thus helping to tame inflation in the long term.   While increasing aggregate demand is the primary cause of local inflation, rising global food 
prices have contributed to price pressure. In order to stabilize soaring food prices, the MSAR 
Government set up a cross-departmental Working Group on Food Prices in June 2012 to monitor 
food prices throughout the supply chain from import ing to wholesaling and retailing, as well as to 
investigate whether there has been any illegal activities, price manipulation or unreasonable 
selling practices. Also, the Government, together with food importers, is actively seeking new 
sources of supply in other regions to alleviate the pressure on food prices due to hefty domestic 
demand. 
  WT/TPR/M/281/Add.1 
 
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As the MSAR Government is very concerned about the impact of inflation on people’s living standards, various measures have been taken to  support disadvantaged groups and relieve the 
pressure on residents. These measures include establishing a two-tier social security system, 
adjusting the minimum subsistence index, increasing financial assistance to the elderly and disadvantaged families, reducing pers onal income tax, and so forth. 
 WT/TPR/M/281/Add.1 
 
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TRADE POLICY REVIEW OF MACAO, CHINA 
WRITTEN QUESTION FROM THAILAND 
 
QUESTION REGARDING THE SECRETARIAT REPORT 
 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
 
Page 38 (paragraph 3.49) 
 “The authorities maintain that all SPS measures and decisions are in line with international standards, agreements or recommendations from relevant international organizations. Currently, three "temporary" SPS measures are in place (Table 3.4), all of which were notified to the WTO” 
 
Question :  Thailand would like to seek a clarification on the Chief Executive’s Decision No. No. 
7/2004, Temporary suspension of imports of poultry products due to H5N1.  Does Macao, China 
h a v e  a n y  p l a n  t o  r e v o k e  t h i s  D e c i s i o n  i n  t h e  n e a r  f u t u r e  s i n c e  c u r r e n t l y  t h e  E u r o p e a n  U n i o n  
already lifted its ban on Thai poultry product?  Could Macao, China provide Thailand with some details on the progress of its work towards lifting this ban? 
 
Answer 
 The review of the Chief Executive’s Decision No. 7/ 2004 is still in progress. As this Decision also 
involves other countries apart from Thailand, it is necessary for the Macao SAR authority to collect 
relevant information from these countries in its review process.   WT/TPR/M/281/Add.1 
 
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ADDITIONAL QUESTIONS FROM CANADA 
 
1. On March 27, 2013, Macao’s Legislative Assembly passed a new Food Safety Law to protect 
local public health and food safety, that includ es the establishment of food surveillance and 
management regime that will be overseen by a ne w Center for Food Safety . Canada welcomes this 
development and will be pleased to cooperate with the Center.  
 Can the Government of Macao please provide information on the specific types of food safety 
standards that will be developed under the new Food Safety Law, and upon which international 
standards they will be based? Can the Governme nt of Macao describe the internal and foreign 
consultation processes it intends to follow on the introduction of new food safety and related measures? 
 
Answer: 
 
Once the Food Safety Law has come into effect , food safety standards will be established 
gradually.  According to Article 7 of the Food Safety Law, food safety standards will be proposed for pathogens, pesticides residues, veterinary drugs, heavy metals, radioactive materials or 
contaminants and food additives.  
 2. In light of Macao's answer to Canada's question about the revised Land Law, can the Government of Macao be more specific and list what will be the "appropriate means" referred to in 
its answer to communicate all the information about the land lease and occupation process? 
 Answer: 
 Due to the ever-changing communications technology, during the drafting of the revision of the Land Law, we considered it inappropriate to list the specific means to inform the public about the 
cases of land lease exempted from public hearin g, since  'new means' would then require an 
amendment of the law before it could be used. WT/TPR/M/281/Add.1 
 
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ADDITIONAL WRITTEN QUESTION FROM THAILAND 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 3. TRADE POLICIES AND PRACTICES BY MEASURE 
 Page 38 (paragraph 3.50) 
 
“To address growing public concerns about food safety, a new draft Food Safety Law has 
completed its public consultation and been sent to the Legislative Assembly.  The Food Safety Centre is to be established once the Food Safety La w is enacted.  According to the authorities, this 
Centre is to be responsible for supervision and management of food safety, risk assessment, and 
implementation of "appropriate" control measures in  response to food safety incidents, with the 
aim of achieving better coordination among different competent agencies.”  
Question 1:  Does the new draft Food Safety La w, to be enacted in the Legislative Assembly, 
contain measures which affect processes and procedures in importing food into Macao, China, 
particularly agricultural and fishery products? 
 
Answer: 
 The subject of Law No. 5/2013 (Food Safety Law) is to protect public health and safety by 
regulating the supervision and management of food safety, food safety risk prevention, controls 
and countermeasures, as well as food safety incidents. The law is applicable to food production and business operations, as well as the use of food additives and food-related products in 
commercial foodstuffs.  The law does not apply to medicine that contains proprietary Chinese 
medicines and other Chinese herbal medicines specif ically for sale in Chinese pharmacy that are 
regulated by other legislation.  
 
The Food Safety Law assigns the Civic and Municipal Affairs Bureau of Macao (IACM) for food safety and obliges public or private entities to cooperate with the IACM.  The law also includes criminal and administrative penalties.  
 
The IACM remains responsible for SPS measures. It will also be responsible for import measures necessary to enforce any future food safety re gulations developed by the Food Safety Center 
which is part of the IACM. 
 Page 49 (paragraph 3.95) 
 “Given that SMEs play an important role in the economy, supporting SMEs has become one of the Government's long-term policies. The SME assistance schemes, including the SME Aid Scheme, and the SME Credit Guarantee Scheme, were amen ded in 2009 and 2012, to expand the scope of 
support. These schemes are open to SMEs with more than 50% of capital held by MSAR residents, 
at least 1 to 3 years of operations in Macao SAR, number of employees not exceeding 100, no outstanding liability vis-à-vis the Government, and having fulfilled their responsibility in the Social 
Security Fund.” 
 Question 2:  Thailand would like to learn whether the SMEs assistance schemes would affect the 
opportunities of foreign-owned companies of the same industry in Macao, China to access the 
Mainland’s market and the Pan Pearl River Delta (PPRD) region under the Closer Economic Partnership Arrangement (CEPA).  
 
Answer: 
 
One of the means to promote economic diversificat ion and stability in Macao, China is to enhance 
the sustainable development of SMEs.  To this en d, the Government provides assistance schemes 
to qualified SMEs that lack access to finance to sustain their business.  Due to the scale and the scope of business of SMEs, their business is mostly  local.  In this regard, the Schemes aim to 
support the continuous operation of SMEs rather than promote exports. 
 Regarding trade in goods under CEPA, goods of Macao origin, whether produced by local or 
foreign-owned companies, can enter the Mainland market duty-free so long as the stipulated rules WT/TPR/M/281/Add.1 
 
- 34 - 
 
of origin are fulfilled.  On services, local an d foreign-owned companies can qualify as Macao 
services suppliers and thus enjoy the preferential treatments to enter the Mainland market once 
the relevant requirements are met. 
 4. TRADE POLICIES BY SECTOR 
Page 71 (paragraph 4.69) 
 “Fees to renew licences of establishments such as hotels, restaurants, and travel agents, and work 
permits for tour guides and ground transfer agents, were suspended in 2009. In accordance with 
Administrative Regulation No. 12/2010, renewal f ee suspension applied to establishments, tour 
guides, and ground transfer agents licensed by the Macau Government Tourist Office on or before end-December 2009. At the end of September 20 12, there were 165 travel agencies with valid 
licences in Macao SAR (157 in 2011), and 1,645 people held tourist guide licences issued by the 
MGTO (1,518 in 2011). To reach the goal of Macao SAR becoming a world tourism and leisure centre, the Government is considering developing  a comprehensive tourism development plan, and 
is studying the advantages of integrating the worl d heritage resources with cultural and creative 
industries.”  
Question 3:  Thailand understands that the renewal fee suspension under Administrative 
Regulation No. 12/2010 applied to those licensed by the Macao Government Tourist Office on or 
before end-December 2009.  Does it mean that those seeking a renewal of such licenses now and in the future will be waived such renewal fees?  
 
Answer : 
 
In face of the 2009 worldwide financial crisis, the Macao SAR Government initiated a measure to 
help the tourism industry.  The measure exempted all hotels, pensions, restaurants, bars, nightclubs, saunas, massage parlours, health clubs, karaokes lounges, travel agencies, tour 
guides, ground transfer agents and tour guide trainees licensed by the Macao Government Tourism 
Office from a ONCE and for all  license renewal fe e.  According to the Administrative Regulation 
No. 12/2010, the license renewal fee was only waiv ed once, that means, those seeking a renewal 
of such licenses now need to pay renewal fees. 
 
 WT/TPR/M/281/Add.1 
 
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ANSWERS TO FOLLOW UP QUESTIONS FROM THE UNITED STATES 
 
Page 55, Paragraph 3.132:  The Secretariat Report indicates that the most recent revision to the 
copyright law became effective on June 1, 2012.  Article 38 of the current law, Decree-Law No. 
43/99/M, amended by Law No. 5/2012, provides fo r the republication of works where a rights 
holder does not wish to publish an out of print work.  Article 57(3) of the law provides for first publication or disclosure of a copyrighted work und er authority of the author, or where the author 
does not give permission, is aware of the act and do es not object.  Article 59(3) of the current law, 
Decree-Law No. 43/99/M, amended by Law No. 5/ 2012, provides for the posthumous publication 
twenty-five years after the death of  the author even if the successors object to the publication.  
Please explain how Macao, China, views these three articles in light of Berne Article 9 and TRIPS 
Article 13.  
 Answer 
 1. Article 57(3), of Decree-Law No. 43/99/M Article 9(1) of the Berne Convention prescribes that authors of literary and artistic works shall have the exclusive right of authorizing the repr oduction of these works in any manner or form, 
notwithstanding the limitations and exceptions in paragraph 2. The Convention does not elaborate 
on how such authorization must be given, namely whether it may be tacitly given.  
Article 57(3), of Decree-Law No. 43/99/M deems that the right holder who does not oppose the 
publication or divulgation of his work, despite being aware of it, gives his tacit authorization, in accordance with the principle qui tacet consentire videtur .  
 
2. Articles 38 and 59(3) of Decree-Law No. 43/99/M Article 9(2) of the Berne Convention and Articl e 13 of TRIPS allow members to adopt limitations 
and exceptions to exclusive rights in special cases,  provided they do not conflict with the normal 
exploitation of the work and do not unreasonably prejudice the legitimate interests of the right 
holder.  
The cases in articles 38 and 59(3) of Decree-Law No. 43/99/M are special situations which do not 
conflict with the normal exploitation of the work. Indeed, both provisions concern works that are not being exploited at all by the right holder, even  if that exploitation might be in the public 
interest (TRIPS articles 7 and 8). Non-exploitation of a work cannot be said to be a form of 
“normal exploitation” . On the other hand, the legitimate interests of the right owner are taken into 
account in two instances.  
In first instance, his reasons for not exploiting the work, or for opposing its exploitation, are 
necessarily evaluated by the courts in the case of article 38 and may also be evaluated by the 
courts in the case of article 59(3). Both articles emphasize moral reasons over mere financial ones 
since the latter can hardly justify the opposition to the exploitation of the work by a third party. In 
the second instance, the right holder must be remunerated for the exploitation of the work. Based on a systematic construction of the statute, we understand that such remuneration is also due in 
the case of article 59(3), although not mentioned explicitly therein. We take into account that the 
provision does not allow for an expropriation of th e right. Note that neither article 38 nor article 
59(3), are applicable whenever the right holder is th e first owner, i.e. in principle, the intellectual 
creator. 
 
U.S. Follow up Question: 
 
Answer 1 discusses Article 57(3) of Macao’s Copyright Law, Decree-Law No. 43/99/M, which 
provides for the first publication or disclosure of a copyrighted work where the author does not 
give permission but is aware of the act and does not object.   The answer posits that the Berne 
Convention can be interpreted to permit “tacit authorization” to publish or disclose a work. 
 
‐ When a work is published or disclosed with the “tacit authorization” of the author (the 
author is aware of the act but does not object) under Article 57(3), which party receives 
remuneration?  The party that publishes or discloses the work, the author, or both?  What 
mechanism exists to enable an author to object  before a work is published or disclosed?   
 
 
 WT/TPR/M/281/Add.1 
 
- 36 - 
 
Answer 
 
Publication or disclosure of the work under art. 57(3) of Decree-Law No. 43/99/M does not impair 
the right of the author to be remunerated for the use of the work, in accordance with the principles in article 7(2)(a) and (b), and article 55(1) and (2 ). Thus, publication or disclosure under article 
57(3) is not tantamount to free use ( fair use ). 
 There is no special mechanism to enable the author to object before a work is published or 
disclosed. However, once he becomes aware of the relevant facts (before or after publication or 
disclosure), he can express his objection by any means.  We stress that the relevance of article 57(3) has been greatly reduced as a result of the criminal 
provision in article 210 as amended by Law 5/2012. 
 Answer 2 notes that “we understand that . . . remune ration is also due in the case of article 59(3), 
although not mentioned explicitly therein.” 
 
‐ What is the legal basis for such a statement?  Have there been judicial decisions that have 
affirmed this principle?   
 Answer 
 
By definition, only free use ( fair use ) dispenses with the remuneration of the right holder. All other 
uses give rise to a right to remuneration. The fact that the law enables a certain use to be made irrespective of the right holder’s authorization (as is the case with article 59(3)) does not mean 
that the use at stake is a form of free use ( fair use ).  
There is no case law on this issue.  WT/TPR/M/281/Add.1 
 
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ANSWERS TO FOLLOW UP QUESTIONS FROM JAPAN 
 
Report by the Secretariat (WT/TPR/S/281) 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.4 Measures affecting production and trade 
3.4.5 Intellectual property rights  
3.4.5.2 Industrial property  3.4.5.2.1 Patents  
(Question: Page 53, Paragraphs 3.117-3.119) 
We understood the MSAR has a similar system to the system of Hong Kong, because the PCT Applicant’s Guide, National Phase, National Ch apter, CN, WIPO* shows “Patent protection for 
HKSAR can only be obtained on the basis of an international application in which China has been 
designated and which has validly entered the nation al phase before the State Intellectual Property 
Office of the People’s Republic of China.” (See "PCT Applicant’s Guide – National Phase – National 
Chapter – CN", 16, Page 8) 
 However, the PCT Applicant’s Guide, International Phase, Annex A,WIPO** includes “Applies also 
to Hong Kong, China.” and “Not applicable to Macau, China.” as a footnote of the People's Republic 
of China in PCT Contracting States. Moreover, wh ile the PCT Applicant’s Guide, National Phase, 
National Chapter, CN* contains a lot of information on patent rights acquisition in Hong Kong via the PCT, there is no information on the same pr ocedure regarding the MSAR. Therefore, applicants 
are likely to misunderstand that they cannot obtain the patent rights in Macau via the PCT. 
 
If “[a]fter PCT international applications entering the Chinese national phase (with Notification of 
International Application Entering the Chinese National Phase), applicants may request an 
extension of their applications of invention patent to the MSAR”, does the MSAR have a future plan 
to request WIPO to describe the procedure, similar to Hong Kong for the PCT, in Macau in the PCT Applicant’s Guide for user-friendliness? If not, please explain the reason. 
 
*http://www.wipo.int/pct/guide/en/gdvol2/annexes/cn.pdf  
**http://www.wipo.int/pct/guide/e n/gdvol1/annexes/annexa/ax_a.pdf  
 
Answer 
 
At present, the PCT system is not applicable to the MSAR. However, once PCT international 
applications enter the Chinese national phase (with Notification of International Application 
Entering the Chinese National Phase ), applicants may request an extension of their applications of 
invention patent to the MSAR. Once a PCT international application has entered the national phase 
before the China's State Intellectual Property Office (SIPO), it shall be deemed as an application 
for patent filed with the SIPO.   
The current extension system of invention patent of the MSAR is based on the cooperation 
agreement between the Macao Economic Services and the SIPO. This agreement is valid for 5 
years and has been renewed twice since it was signed in 2003. According to this cooperation 
agreement, applications of invention patents filed with SIPO can be extended to the MSAR. This 
system applies to applications directly filed with the SIPO. Moreover, since any PCT international application that entered the national phase before  the SIPO shall be regarded as an application 
filed with the SIPO, their applicants are also eligible to use this system to extend the applications 
of invention patent to the MSAR. 
 While the extension system of the MSAR is different  from the PCT system, it provides a simple and 
economical way for PCT applicants to obtain protection for their inventions in the MSAR. Until now, 
applicants from more than 30 countries have used this extension system for their inventions originated from PCT international applications. 
 
__________