RESTRICTED  
  
WT/TPR/S/281  
25 March 2013  
(13-1557)  Page:  1/85  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
MACAO, CHINA 
This report, prepared for the fourth Trade Policy Review of Macao, China, has been drawn up by 
the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought  clarification from Macao, China on its trade 
policies and practices.  Any technical questions arising from this report may be addressed to: Ms. Zheng Wang 
(tel.: 022 739 5288) and Mr. Xinyi Li (tel.: 022 739 5579). 
 Document WT/TPR/G/281 contains the policy statement submitted by Macao, China. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Re v i e w  B o d y  o n  M a c a o ,  C h i n a .  T h i s  r e p o r t  w a s  
drafted in English. WT/TPR/S/281 • Macao, China 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
Economic perf ormanc e ...................................................................................................... 6  
Trade and investme nt regime ............................................................................................. 7  
Trade policies and practices ................................................................................................ 7  
Outlook ....................................................................................................................... .... 8 
1   ECONOMIC ENVIRONMENT .......................................................................................... 9  
1.1   Major features  of the ec onomy .................................................................................... 9  
1.2   Recent econom ic developments .................................................................................. 10 
1.3   Developmen ts in trade .............................................................................................. 12 
1.3.1   Composit ion of trade .............................................................................................. 13 
1.3.2   Direction of trade ................................................................................................... 16 
1.4   Foreign dire ct invest ment .......................................................................................... 18 
1.5   Econom ic outl ook ..................................................................................................... 19 
2   TRADE POLICY REGIME: FR AMEWORK AND OB JECTIVES .......................................... 20  
2.1   General constitution al and legal framework .................................................................. 20 
2.2   Trade policy formulation and implementation ................................................................ 20 
2.3   Trade poli cy objectives .............................................................................................. 22 
2.4   Trade agreements  and arrang ements .......................................................................... 22 
2.4.1   Participat ion in the WTO ......................................................................................... 22 
2.4.2   Regional agreements .............................................................................................. 24 
2.4.3   Bilateral agreements .............................................................................................. 24 
2.4.3.1   Trade in goods .................................................................................................... 25 
2.4.3.2   Services ............................................................................................................  25 
2.4.3.3   Trade and investment facilitation ........................................................................... 27 
2.4.4   Cooperation in the region ........................................................................................ 28 
2.4.5   GSP treatment ...................................................................................................... 29 
2.5   Foreign inve stment regime ........................................................................................ 29 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 31  
3.1   Introduction ............................................................................................................. 31 
3.2   Measures direct ly affectin g imports ............................................................................. 32 
3.2.1   Customs procedures ............................................................................................... 32 
3.2.2   Customs valuatio n and rules of origin ....................................................................... 33 
3.2.2.1   Customs valuation ............................................................................................... 33 
3.2.2.2   Rule s of or igin .................................................................................................... 33 
3.2.3   Tariffs ............................................................................................................... ... 33 
3.2.4   Other duties and charges (ODCs) ............................................................................. 33 
3.2.5   Import prohibitions, restrictions an d licensing ............................................................ 34 
3.2.5.1   Import prohibitions ............................................................................................. 34 
3.2.5.2   Import licensing .................................................................................................. 34 WT/TPR/S/281 • Macao, China 
 
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  3.2.5.3   Other restrictions ................................................................................................ 35 
3.2.6   Continge ncy measures ........................................................................................... 35 
3.2.7   State trading ......................................................................................................... 36 
3.2.8   Standards and othe r technical requirements .............................................................. 36 
3.2.8.1   Standards and technical requirements .................................................................... 36 
3.2.8.2   Sanitary and ph ytosanitary re quirements ............................................................... 37 
3.2.9   Governme nt procurement ....................................................................................... 38 
3.3   Measures direct ly affectin g exports ............................................................................. 41 
3.3.1   Procedures and docume ntation ................................................................................ 41 
3.3.2   Export prohibitions, restrictions and licensing ............................................................. 42 
3.3.3   Export taxes,  charges and levies .............................................................................. 42 
3.3.4   Export support  and facili tation ................................................................................. 43 
3.4   Measures affectin g production and trade ...................................................................... 43 
3.4.1   Legal framew ork for bu sinesse s ............................................................................... 43 
3.4.2   Taxation an d tax incentives ..................................................................................... 44 
3.4.2.1   Overview ........................................................................................................... 44 
3.4.2.2   Taxation ............................................................................................................  46 
3.4.2.2.1   Direct tax ........................................................................................................ 46 
3.4.2.2.2   In direct tax ..................................................................................................... 46 
3.4.2.3   Tax incentives, exemptions, and forgone revenues ................................................... 47 
3.4.3   Non-tax incentives an d other forms of  assist ance ....................................................... 48 
3.4.3.1   Non-ta x incentives .............................................................................................. 48 
3.4.3.2   Support to small and me dium-sized enterp rises (SMEs) ............................................ 49 
3.4.3.3   Land allocation ................................................................................................... 50 
3.4.4   Competition policies and price controls ...................................................................... 51 
3.4.5   Intellectual property rights ...................................................................................... 52 
3.4.5.1   Overview ........................................................................................................... 52 
3.4.5.2   Indust rial property .............................................................................................. 53 
3.4.5.2.1   Patents ...........................................................................................................  53 
3.4.5.2.2   Trade marks .................................................................................................... 54 
3.4.5.2.3   Other indust rial property rights .......................................................................... 55 
3.4.5.3   Copyright and related rights ................................................................................. 55 
3.4.5.4   Enforcement ....................................................................................................... 56 
4   TRADE POLICIES BY SECTOR ..................................................................................... 58  
4.1   Energy .................................................................................................................. .. 58 
4.1.1   El ectricity ........................................................................................................... .. 58 
4.1.2   Na tural gas ...........................................................................................................  59 
4.2   Manuf acturi ng .......................................................................................................... 59 
4.3   Services ................................................................................................................ .. 60 
4.3.1   Features ............................................................................................................... 60 WT/TPR/S/281 • Macao, China 
 
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  4.3.2   Financial services ................................................................................................... 60 
4.3.2.1   Banking .............................................................................................................  61 
4.3.2.2   Insura nce .......................................................................................................... 63 
4.3.3   Telecommunications ............................................................................................... 64 
4.3.4   Transport .............................................................................................................  65 
4.3.4.1   Mariti me tran sport .............................................................................................. 66 
4.3.4.2   Land transport .................................................................................................... 67 
4.3.4.3   Air transport ....................................................................................................... 68 
4.3.5   Tourism ................................................................................................................ 70 
4.3.6   Gaming  ................................................................................................................  72 
REFERENCES .................................................................................................................. 7 6 
5   APPENDIX  TABLES .................................................................................................... 77  
 
CHARTS 
 
Chart 1.1 Correlation between economic performance and tourism .......................................... 14 
Chart 1.2 Product composition of merchand ise trade by HS se ction, 2007 and 2011  .................. 15 
Chart 1.3 Direction of merchandise trade, 2007 and 2011 ...................................................... 17 
Chart 4.1 Visitor arrivals, 2003-1 1 ..................................................................................... 70 
Chart 4.2 Concessionaires and sub-conce ssionaires .............................................................. 72 
 
TABLES 
 Table 1.1 Sector shares in production and employment, 2007-11 ............................................. 9
 
Table 1.2 Selected macroeco nomic indicato rs, 2007- 11 ......................................................... 10 
Table 1.3 Balance of paymen ts, Macao, Ch ina, 2007- 11 ........................................................ 13 
Table 1.4 Services trade, 2007-11 ...................................................................................... 14 
Table 1.5 Merchandise exports from Ma cao SAR to China und er CEPA, 2007-11  ........................ 18 
Table 1.6 Inbound FDI flows to Macao, Ch ina, 2007- 11 ......................................................... 19 
Table 2.1 Main trade and investment-related legislation issued/amended/revised since 
2007  ......................................................................................................................... ... 21 
Table 2.2 Selected notifications under the WTO Agreements, March 2007 to February 2013 ........ 23 
Table 2.3 Services sectors or subsectors covered under CEPA ................................................. 26 
Table 2.4 Exports under GSP treatmen t, 2007- 11 ................................................................. 29 
Table 2.5 BITs, DTTs and TIEAs ......................................................................................... 30 
Table 3.1 Import prohibitions in Macao, China ...................................................................... 34 
Table 3.2 Import lic ensing re gime, 2012 ............................................................................. 35 
Table 3.3 Accredited laboratories in Macao, China, December 2011 ......................................... 37 
Table 3.4 Active SPS measures  in Macao, China, 2012 .......................................................... 38 
Table 3.5 Government procurement,  2007-11  ...................................................................... 39 
Table 3.6 Local and foreign participation in government procurement centrally purchased 
by the Financial Serv ices Bureau , 2007-11  .......................................................................... 40 WT/TPR/S/281 • Macao, China 
 
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  Table 3.7 Export licensing  regime, Ja nuary 2012 .................................................................. 42 
Table 3.8 Government account, 2007-11 ............................................................................. 44 
Table 3.9 Main types of taxati on and related incentives ......................................................... 45 
Table 3.10 Selected products subject to consumption taxes, 2007-11 ...................................... 46 
Table 3.11 Consumption tax rebates on selected products, 2007-11 ........................................ 47 
Table 3.12 Estimated tax revenues forgone, 2007-11 ............................................................ 48 
Table 3.13 Interest rate subsidy scheme in Macao, China, 2007-11  ......................................... 49 
Table 3.14 Support to SMEs , Macao, Chin a, 2007- 11 ............................................................ 50 
Table 3.15 Membership of international intelle ctual property rights ' convention s, 2012 .............. 52 
Table 3.16 Patent administration  in Macao, Ch ina, 2007 -11 ................................................... 53 
Table 3.17 Trade mark applications, 2007-11 ....................................................................... 54 
Table 3.18 Violations of intellectual and industrial property rights, 2007-11 .............................. 56 
Table 4.1 Structure of the manufacturing industry, 2009-11 ................................................... 60 
Table 4.2 Financial institutio ns, 2007- 12 ............................................................................. 61 
Table 4.3 Financial highlights of the banking sector, 2007-11  ................................................. 62 
Table 4.4 Profitability of the banking sector, 2007-11 ............................................................ 62 
Table 4.5 Composition of  gross prem iums, 2007-11 .............................................................. 64 
Table 4.6 Telecommunication s market, 2006 and 20 11 ......................................................... 65 
Table 4.7 Visitor arrivals by mode of travel, and transport of goods,  2007-11  ........................... 66 
Table 4.8 Air transport in  Macao, Ch ina, 2006-11 ................................................................. 68 
Table 4.9 Economic impact of travel and tour ism, 2007- 11 .................................................... 70 
Table 4.10 Visitor arrivals, by source, 2007-11 ..................................................................... 71 
Table 4.11 Hotels and guest houses, 2007-September 2012 ................................................... 71 
Table 4.12 Fiscal and financial contributions by casino operators ............................................. 73 
Table 4.13 Gaming gross re venue ...................................................................................... 74 
 
APPENDIX TABLES 
 
Table A1.1 Merchandise trad e by HS sect ion, 2007- 11 .......................................................... 77 
Table A1.2 Merchandise impo rts, by orig in, 2007- 11 ............................................................. 78 
Table A1.3 Merchandise exports, by destination, 2007-11 ...................................................... 79 
 
Table A2.1 Main trade and inve stment related legislation ....................................................... 80 
 
Table A4.1 Macao SAR air servic es agreements, October 2012 ............................................... 85 
 WT/TPR/S/281 • Macao, China 
 
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  SUMMARY 
1. Macao, China remains an open economy, with zero-rated applied tariffs, and few restrictions 
on trade and investment. Its economy recorded stro ng growth during the review period (2007-12), 
with double-digit GDP growth rates for most of the years (except 2008 and 2009). Growth has 
been led by services exports, in particular tourism including gaming. Competition between gaming 
operators, since the opening of the sector in 2002, has stimulated a prospering tourism sector: tourism exports rose to US$38 billion in 2011, from US$7.5 billion in 2004 when the first 
foreign-invested gaming concessionary entered into operation, and from US$4.3 billion in 2002 
when the gaming sector was liberalized. The "Individual Traveller Scheme" under the Closer Economic Partnership Arrangement (CEPA) between  Macao Special Administrative Region (SAR) 
and China, which has been in place since 2004, has enabled an increasing number of tourists from 
China. 
Economic performance 2. Macao SAR is heavily dependent on trade. In 2011, trade (imports and exports of goods and 
services) was equivalent to about 160% of GDP. Macao SAR has maintained a current account 
surplus due to strong services exports, while merchandise trade deficits reflect a shrinking 
manufacturing sector. Merchandise exports dropped 65% during the review period. FDI has in 
general grown. Half of the FDI into Macao SAR was in the gaming sector, while retail and 
wholesale business was the second largest recipient. 
3. Macao SAR's economy became more services oriented during the review period. In 2011, 
services accounted for about 90% of GDP and employment; the gaming sector accounted for 45% 
of GDP and 20% of employment. Direct tax fr om gaming accounted for about 80% of total 
government revenue, which allowed the Government to maintain a fiscal surplus, and thus to continue to improve its infrastructure. Macao SAR has been transformed into the world's leading 
gaming destination. The Government is trying to maintain the sustainable development of the 
gaming industry and recently took several decisions to regulate the scope and pace of the industry's expansion. 
4. The fast growth of the economy and the dominance of the gaming sector has placed upward 
pressure on prices, in particular of land and labour. Macao SAR's currency, the pataca, is pegged to the Hong Kong dollar and hence indirectly to the U.S. dollar, so that during the review period, the pataca depreciated against the currencies of Macao SAR's major trading partners, including 
China. Thus, Macao SAR had to pay more for im ports. The composite CPI, a measurement for 
inflation, has been increasing. However, Macao SAR does not have autonomous monetary policies because of its exchange rate system. 
5. Soaring local factor prices harm the competitiveness of non-gaming sectors, including 
manufacturing. Although Macao SAR is a free port, where goods enter with zero tariffs and few border measures, the manufacturing sector continued to shrink mainly because of the relatively 
high production costs pushed up by the small size of the territory and the population, and a 
prospering tourism and gaming sector. The contribution from manufacturing to GDP dropped from 2.9% in 2007 to 0.7% in 2011, and its share of total employment fell from 7.1% to 3.9%. 
6. The Government's efforts to diversify the economy include facilitating the development of 
non-gaming services, such as conventions and exhibitions, cultural and creative industries, 
traditional Chinese medicines, and commercial and trade services (i.e., import and export services). Regional cooperation (such as with Guangdong Province of China) would be an 
important channel for Macao SAR to overcome its constraints and improve its competitiveness. 
7. The Government has adopted a number of measures to nurture an attractive business 
environment, for example, measures to lower business costs include maintaining a simple taxation 
structure and a low level of administrative fees, as well as opening the telecommunication market. 
It has also adopted measures to introduce competition in the public utility sector. To meet the increasing demand for electricity, most of which has to be imported, the Government is preparing for a "partial liberalization" of the electricity market. According to a renewed concession contract 
with the incumbent electricity supplier, signed in  2010, the Government may decide when to open 
the markets of upstream power generation and electricity importation to other investors. WT/TPR/S/281 • Macao, China 
 
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  Trade and investment regime 
8. Macao SAR's institutional and policy framework has remained largely unchanged since its 
Review in 2007. In accordance with the Basic Law, Macao SAR maintains the status of a free port, pursues the policy of free trade, and safeguards the free movement of goods, intangible assets, 
and capital. Promoting economic diversification and increasing regional cooperation remain the top 
priorities of the Government. The CEPA with China is felt to provide opportunities for Macao SAR's future development. 
9. The CEPA consists of three parts: trade in  goods, trade in services, and trade and 
investment facilitation. So far, the biggest effect of the CEPA on Macao SAR's economy was through the Individual Traveller Scheme: the relaxed visa restrictions on travel by Mainland Chinese have enabled strong growth in the number of tourists to Macao SAR. The 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. Textile and garment manufacturing has continued to shrink, since the Agreement on Textiles and Clothing 
(ATC) expired in 2005. Figures from the authorities indicate that preferential treatment under the 
CEPA has nurtured some "new" manufacturing indu stries, such as food and coffee processing. 
Macao SAR exports more services than merchandise and it is possible that the services sector, and 
the sale of services to the Pearl River Delta region of the neighbouring Guangdong province, rather 
than manufacturing, will make more effective us e of preferential access to the Chinese market 
under CEPA's services provisions. 
Trade policies and practices 
10. Macao SAR's trade and investment regime remains relatively open. All imports enter duty 
free. However, the scope of Macao SAR's tariff binding remains limited, with around 70% of its tariff lines unbound. During the review period , Macao SAR notified the WTO that additional 
pharmaceutical products were bound as a result of the expansion of product coverage in the 
Pharmaceutical Agreement. 
11. 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. Partially reflecting the economic diversification efforts to develop other non-gaming tourism 
sectors, the Government abolished its consumption taxes on beverages with alcoholic 
concentration below 30%. Hence, the importation of these products no longer requires an import licence. 
12. Macao SAR does not develop its own standards but adopts international or overseas 
standards, where appropriate. Imports of auto mobiles and radio-communication equipment are 
subject to licensing to ensure that mandatory technical requirements for these products are met. 
When applying for licences, testing results and cert ifications issued by the manufacturers or other 
authorities are accepted as a useful reference. 
13. Macao, China is not a signatory to or an observer of the WTO Agreement on Government 
Procurement (GPA). Foreign presence in governme nt procurement increased markedly during the 
period under review. In 2011, foreign supplies accounted for 27% of procurement contracts signed 
centrally by the Financial Service Bureau, up from 9% in 2007. This may still under-represent the share of foreign supplies in public procurement, as  foreign companies registered with the Financial 
Services Bureau are considered local companies (regardless of whether they are locally 
corporatized), and country of origin is not recorded. 
14. Macao SAR maintains a simple tax structure and low tax rates. In response to soaring global 
prices, consumption tax on fuel and lubricants were abolished in August 2008. New purchases of 
environment-friendly motor vehicles are exempt fr om motor vehicle taxes. The Government offers 
tax incentives including exemption/reduction of profit tax. Non-tax incentives such as interest subsidies and credit guarantees are also availabl e, mainly for small and medium-sized enterprises 
(SMEs).  WT/TPR/S/281 • Macao, China 
 
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  15. The Copyright and Related Rights Code was amended in 2012 to enhance copyright 
protection in a digital environment. Subject to approval by the Macao Economic Services, holders 
of invention patents granted by China's State In tellectual Property Office (SIPO) may request 
extension of their rights to Macao SAR. During the review period, the number of invention patent 
applications declined whereas the number of extensions increased steadily. Macao SAR maintained 
active IPR enforcement, in particular confiscation of infringing products such as compact discs, medicines, and cigarettes. 
16. There has not been overarching competition legislation in Macao SAR. The authorities 
consider that current provisions, which are scattered around various laws and sector-specific regulations and rules, have provided adequate protection given that the territory is small and most businesses are SMEs. In the last ten years, a se ries of measures were adopted to introduce 
competition to the gaming sector, the public utility sector, and the telecommunication sector. 
Outlook 17. As a small open economy, Macao SAR's future growth is strongly influenced by external 
demand in its trading partners. Given that international organizations including the IMF have 
lowered growth forecasts for the East Asian region, the Macao Monetary Authority (AMCM) estimates that the economy grew, in real terms, 9.0% in 2012, down from 21.9% in 2011. The 
AMCM also anticipates single-digit growth in 2013. Domestic demand, underpinned by both 
public- and private-funded construction of infrastructure and tourism-related facilities, is expected to be one of the driving forces of economic grow th. Services exports are expected to grow at a 
slower pace than in recent years. 
18. During the period under review, Macao SAR be gan infrastructure improvements through a 
number of public construction projects, such as the Light Rapid Transit pr oject, improvement of 
the Border Gate checkpoint, and the construction of the Hong Kong – Zhuhai - Macao Bridge. 
These improvements in infrastructure will allow better connection and thus better integration into 
the Pan-Pearl River-Delta region, which is believed to be crucial to Macao SAR's diversification efforts: by sourcing more land supplies and pooling all resources in the area such as financial 
intermediates, passenger hubs, and logistics fac ilities, to facilitate the development of tourism 
industries as well as manufacturing. 
 WT/TPR/S/281 • Macao, China 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Major features of the economy 1.1.  Macao Special Administrative Region (Macao SAR or the MSAR) of China is a small open 
economy. Macao SAR has a total land area of 30 km
2, consisting of Macao peninsula, and the 
islands of Taipa and Coloane.1 At the end of September 2012, the population in the MSAR was 
576,700, with an employed population of 344,000. 
1.2.  During the review period, the services-oriented economy of Macao SAR became even more 
dominated by tourism, particularly related to gaming. Its already small manufacturing sector 
continued to shrink, accounting for less than 1% of GDP in 2011 (Table 1.1). Agriculture remains negligible, with no official information on its share in GDP or employment. The services sector accounted for 94% of GDP, with the gaming sector alone contributing 45% of GDP (up from 30% 
in 2007). This reliance on a few sectors makes th e economy vulnerable to external shocks.  
Table 1.1 Sector shares in production and employment, 2007-11  
(%) 
 2007 2008 2009 2010 2011 
Production share in GDPa by sector  
Secondary sector 19.1 17.2 10.9 7.4 6.4 
Manufacturing 2.9 2.1 1.5 0.9 0.7 
Electricity, gas and water supply 1.2 1.2 1.3 1.1 0.8 
Construction 15.1 14.0 8.1 5.5 4.9 
Tertiary sector 80.9 82.8 89.1 92.6 93.6 
Wholesale, retail, repair, hotels and 
restaurants 10.3 12.3 14.0 15.0 15.6 
Transport, storage and communications 4.0 3.4 3.6 3.7 3.3 
Financial intermediation, real estate, renting 
and business activities 22.8 22.8 23.7 19.4 17.8 
Public administration s, other community, 
social and personal services (including 
gaming) 43.7 44.3 47.8 54.5 56.9 
Gaming 29.8  29.4 32.0 41.1 44.7 
Public administration s, other community, 
social and personal services (excluding 
gaming) 14.0 14.8 15.7 13.4 12.2 
Employment share by economic activity  
Manufacturing  7.1 7.7 5.3 4.8 3.9 
Construction 10.6 11.9 10.2 8.6 8.6 
Wholesale and retail trade 13.4 12.3 13.1 13.2 13.3 
Hotels, restaurants and similar activities 11.6 12.9 13.8 13.6 14.1 
Transport, storage and communications 5.8 4.9 5.2 5.8 4.9 
Financial intermediation, real estate, renting 
and business activities 9.6 9.7 10.5 11.1 11.0 
Public administration 8.0 6.1 6.3 6.8 7.0 
Social and personal services (excluding 
gaming) 11.8 13.6 15.2 15.7 15.1 
Gaming 21.4 20.6 19.8 20.0 21.4 
Others 0.6 0.4 0.7 0.5 0.7 
a GDP at current prices 
Source: Information provided by the authorities of Macao, China. 
1.3.  Macao SAR's currency, the Macao pataca (MOP), is pegged to the Hong Kong dollar at a rate 
of MOP 1.03/HK$1.00. The authorities are aware of th e pros and cons of the pegged exchange rate 
system, and indicated that pegging to the Hong Kong dollar will not change in the foreseeable 
future given the share of Hong Kong dollars in the MSAR's foreign reserves and monetary aggregates
2, and the fact that the Hong Kong dollar is the major settlement currency in the 
gaming sector. 
                                               
1 The two islands are linked by COTAI Reclamation Area. 
2 At the end of April 2012, Hong Kong dollars comprised 55.1% of the MSAR's monetary aggregates 
(broad money supply, M2). WT/TPR/S/281 • Macao, China 
 
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  1.4.  Macao SAR does not maintain autonomous monetary policies because of its exchange rate 
system. The Macao Monetary Authority (AMCM) note d that maintenance of monetary stability, by 
means of the pegged exchange rate, is the pr ime monetary policy objective for the MSAR.3 The 
AMCM's base rate (interest rate) is maintained at the level of the base rate of the Hong Kong 
Monetary Authority. 
1.2  Recent economic developments 1.5.  The economy of Macao SAR grew strongly  during the review period (from 2007 to 2012). 
GDP growth rates were double-digit except in 2008 and 2009 (Table 1.2). Single-digit growth in 
2008-09 reflected, inter alia , the impact of the global financial crisis through lower demand for 
tourism and gaming services, and the suspension of infrastructure construction projects of recreation facilities. The economy resumed its fast growth from 2010. During the review period, 
GDP per capita almost doubled, from US$34,662 in 2007 to US$67,093 in 2011. The real growth 
of the economy is attributed to services' export s and large-scale public investments; 31% of the 
GDP growth in 2011 was contributed by services' exports.
4 Private consumption has also grown in 
line with the economic performance. 
Table 1.2 Selected macroeconomic indicators, 2007-11 
 2007  2008  2009 2010 2011  
Real GDP (MOP billion, 2010 prices) 169.3 175.0 178.0 226.9 276.7 
Real GDP (US$ billion, 2010 prices) 21.1 21.8 22.3 28.4 34.5 
Current GDP (MOP billion) 145.1 166.3 170.2 226.9 295.5 
Current GDP (US$ billion) 18.1 20.7 21.3 28.4 36.9 
GDP per capita at current market price (US$) 34,662 38,391 39,775 52,818 67,093 
National accountsa (Percentage change, unless otherwise indicated) 
Real GDP (2010 prices) 14.3 3.4 1.7 27.5 21.9 
Consumption 11.0 4.6 5.1 6.6 9.5 
Private consumption expenditure 9.6 5.2 2.4 7.2 11.0 
Government consumption expenditure 15.1 2.9 13.2 4.9 5.5 
Gross fixed capital formation 24.0 -14.8 -32.3 -16.8 16.5 
Private sector 30.3 -14.2  -36.8 -22.4 7.3 
Government -27.2  -23.7  34.4 24.1 58.6 
Exports of goods and services 22.5 9.1 -1.5 44.4 29.0 
Imports of goods and services 29.1 2.2 -18.7 29.1 29.6  
XGS/GDP (%, at current market price) 93.5 97.0 94.1 105.9 111.06 
MGS/GDP (%, at current market price) 65.9 63.3 49.6 49.8 53.0 
Labour market      
Employed population (thousand) 293.0 317.1 311.9 314.8 327.6 
Unemployment rate (%) 3.2 3.0 3.5 2.8 2.6 
Prices and interest rates (%, unless otherwise indicated) 
Inflation (CPI, percentage change) 5.6 8.6 1.2 2.8 5.8 
Import price (import unit value, percentage change) 3.2 8.3 -0.6 4.0 8.1 
Lending rate 7.81 5.43 5.25 5.25 5.25 
Deposit rate 2.85 1.10 0.03 0.02 0.05 
Exchange rate      
MOP/US$ (annual average) 8.04 8.02 7.98 8.00 8.02 
Nominal effective exchange rate (percentage change) -4.32  -5.59  1.13 -0.77  -4.99  
 (% of current GDP, unle ss otherwise indicated) 
Fiscal policy       
Total revenue 37.0 37.4 41.1 39.0 41.6 
Tax revenue 24.2 27.0 27.4 31.3 34.4 
Tax revenue from gaming 22.0 26.0 26.9  30.3 33.7 
Total expenditure 16.1 18.3 20.8  16.9 15.4 
Overall balance 20.9 19.1 20.2  22.1 26.2 
Saving and investment      
Gross national saving 16.6 19.1 20.3 17.5 .. 
Gross domestic investment 14.6 14.5 15.4 15.3 .. 
Savings-investment gap 2.0 4.6 4.9 2.2 .. 
                                               
3 AMCM (2012b). 
4 DSEC online information, "Gross Domestic Products". Viewed at: http://www.dsec.gov .mo/Statistic. 
aspx?NodeGuid=b35edb8a-ed5c-4fab-b741-c91b75add059 . WT/TPR/S/281 • Macao, China 
 
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   2007  2008  2009 2010 2011  
External sector      
Current account balance  23.8 19.5 31.8 43.0 47.8 
Net merchandise trade  -26.0 -24.7 -20.7 -19.5 -21.2  
Merchandise exports 14.1 10.1 5.2 3.7 3.0 
Merchandise imports -40.1 -34.8 -25.8 -23.2 -24.2  
Services balance 53.8 58.3 65.1 75.3 79.9 
Capital account 1.8 1.9 2.8 0.1 -0.4  
Financial account 9.2 5.2 -23.1 -23.4 -28.2  
Direct investment 27.8 15.1 0.9 13.9 4.0  
Balance of payments 19.4 11.0 9.9 18.2 27.6 
Terms of trade -3.8 -2.8 -0.5 -0.8 0.7 
Merchandise exports (percentage change)b -0.6 -17.5 -47.7 -4.0 5.7 
Merchandise imports (percentage change)b 24.4 -0.3 -23.7 19.7 35.5  
Service exports (percentage change)b 35.8 25.0 6.0 52.5 38.6 
Service imports (percentage change)b 50.7 26.8 -13.0 48.8 40.7  
International reserves, excl. gold (US$ billion) 13.2 15.9 18.4 23.7 34.0  
in months of imports of goods and servicesc 14 15 21 20 21 
.. Not available. 
a Percentage changes based on national currency. 
b Percentage change based on U.S. dollar values. 
c Based on BOP imports. 
Source: Government of Macao Special Administrati ve Region Statistics and Census Survey online 
information; Monetary Authority of Macao, China; and the IFS. 
1.6.  The gaming sector continued its rapid expansion during the review period and has remained 
the major contributor to the Government fiscal surplus. From 2007 to 2011, gross gaming revenue (GGR) rose 217%
5, and the direct tax revenue from gaming increased by 221% (Table 3.8). 
Consequently, the share of direct tax revenue fr om gaming in total government revenue grew 
from 54.6% in 2007 to 76.5% in 2011. Owing to the rapid increase in this source of government 
revenue, Macao SAR has maintained fiscal surpluses since 2001: its fiscal surplus accounted for 26% of GDP in 2011, up from 21% in 2007 (Table 1.2). 
1.7.  The healthy fiscal position allows Macao SAR to improve its infrastructure in order to 
accommodate the fast-growing number of visitors and their rapidly increasing demand for, inter 
alia, recreation facilities, transport, and energy. A number of public infrastructure construction 
projects have begun recently, such as the Light Rapid Transit project, the improvement of the 
Border Gate checkpoint, construction of Hong Kong – Zhuhai – Macao Bridge, and public housing projects. Also, as a counter-crisis measure, public investment stepped in to fill the investment gap 
caused by the contraction of private investment in 2009-10. Gross fixed capital formation by the 
Government grew, in real terms, by 34%, 24%, and 59% in 2009, 2010, and 2011 (Table 1.2). In 
the first quarter of 2012, public  investment soared by 454%.
6 
1.8.  Investment in gaming, by both local and foreign operators, accounted for a large share of 
private investment in Macao SAR. More than half of FDI into Macao SAR was in gaming 
(Table 1.6). Amid the global financial crisis, private investment fell sharply: gross fixed capital formation by the private sector contracted, in real terms, by 37% in 2009. Private investment 
growth resumed from 2011 and private sector gr oss fixed capital formation grew 7%. It is 
expected to become an important growth pillar in the near future.
7 
1.9.  The fast growth of the economy has placed  upward pressure on price levels. The Composite 
CPI (a measurement for inflation) rose 5.8% in 2011; and in the first half of 2012, inflation of 
6.4% on a year-on-year basis was reported. 
1.10.  Given the small size of the economy, the mo st obvious effect of the booming gaming sector 
is on the local labour market, by raising labour  prices. The unemployment rate decreased during 
                                               
5 DSEC online information, "Gaming Sect or Survey", various issues. Viewed at: 
http://www.dsec.gov.mo/ Statistic.aspx?lang=en-US&NodeGuid=f5c8d76d-4db1-4ac1-8541-f578907583b2 .  
6 This amount reflects in vestments in the construction-related projects during this period (AMCM, 
2012b). 
7 AMCM (2012b). WT/TPR/S/281 • Macao, China 
 
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  the review period, and reached a record low level of 2.0% in the third quarter of 2012. 
Non-resident workers accounted for 29% of total employment in Macao SAR at the end of 2011. Reflecting this increasing demand for labour, wa ges have been rising: the overall median monthly 
employment earnings increased from MOP 8,000 in  2007 to MOP 11,700 in the third quarter of 
2012.  
1.11.   Reflecting land constraints, property rental prices have also been rising, by almost 5% 
year-on-year in the first half of 2012. Soaring local-factor prices harm the competitiveness of small 
and medium-sized enterprises in sectors outside ga ming; partly because of this, the manufacturing 
sector has continued to shrink. For example, afte r the expiry of the Agreement on Textiles and 
Clothing (ATC), the industrial output of the te xtile sector shrank to MOP 2,109 million in 2011, 
down from MOP 9,583 million in 2007.
8 
1.12.  The evolution of inflation is also related to international prices, as the MSAR imports most of 
its food and consumer goods. In 2011, the import price level (reported as "import unit value" by the authorities) doubled to 8% (Table 1.2). Food accounts for more than 20% of consumer goods 
imports, and takes the largest weight (32.78%) in calculating the Composite CPI; 47% of the 
Composite CPI growth in 2011 was attributed to inflation of food prices.
9 Given that Macao SAR 
pegs its currency to the Hong Kong dollar, which implies an indirect link to the U.S. dollar, price 
changes in US$ terms with trading partners would have a one-on-one passing-through effect on 
the local price. Therefore Macao SAR's nominal effective exchange rate generally depreciated during the period under review; a 5% year-on-year depreciation was reported in 2011. A similar effect was observed in the terms of trade of the MSAR.  
1.13.  In recent years, the MSAR Government has identified the Meetings, Incentives, 
Conventions, and Exhibitions (MICE) industry as one of the key driving forces to diversify the 
economy, making MICE part of the goal of building Macao into a world tourism and leisure centre 
(section 4.3.5). Macao SAR tries to attract MICE visitors as well as package-tour travellers who 
would stay longer and spend more on non-gaming activities.
10 The number of package-tour 
visitors continues to grow; the growth rate was 24.8% (year-on-year) in the first eight months of 
2012.  
1.14.  The non-gaming hospitality capacity and related facilities have expanded considerably since 
2006. Turnover of the non-gaming sectors in th e tourism industries, e.g. hotels and retail, 
reported substantial growth. The authorities note  that, in the first quarter of 2012, sales of 
"watches, clocks & jewellery", "goods in department stores" and "leather goods" grew by 43%, 
35%, and 24% respectively. Despite this, the share in GDP terms of wholesale, retail, repair, hotels and restaurants remains relatively small compared with the income generated from gaming 
(Table 1.1). 
1.15.  As diversification efforts are tightly constrained with land availability, land allocation is an 
instrument used by the Government to facilitate diversification. When business investors apply to 
the Government for land concessions, they must specify a minimum amount of investment, which 
must be recognized by the Government as benefi cial to the development of Macao SAR. The draft 
amendment to the Land Law proposes that implem entation of the diversification policies is 
regarded as in the "public interests", i.e. "beneficial to the development of Macao SAR". The 
authorities indicate that land concessions for gaming facilities have no longer been granted to 
applications filed after 2008. 
1.3  Developments in trade 
1.16.  Macao SAR is highly dependent on trade. In  2011, the share of trade (import and export of 
goods and services) in GDP was 163%. During the period under review, Macao SAR maintained a current account surplus due to strong services exports (Table 1.3). The services trade surplus has 
                                               
8 DSEC online information, "Industrial Survey". Viewed at: http: //www.dsec.gov.mo/Statistic.aspx?lang 
=en-US&NodeGuid=a520644a-b71a-41c8-9689-88a647063fa6  [25.10.12]. 
9 DSEC online information, "Consumer Price Index: 2011". Viewed at: http: //www.dsec.gov.mo/ 
getAttachment/d42f0a3a-623e-4286-a2b2-109c59ccd147/E_IPC_PUB_2011_Y.aspx?disposition=attachment  
[20.10.12]. 
10 Currently tourism exports are dominated by short-stay  or even same-day travellers, who are likely to 
spend less on non-gaming activities than package-tour or longer stay travellers. WT/TPR/S/281 • Macao, China 
 
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  been increasing, with faster growth in exports th an imports. There has been an increasing outflow 
of remittances by non-resident workers, which reflects Macao SAR's open position regarding mode 4 of services trade. The MSAR's overall bala nce of payments remained in surplus throughout 
the period under review; in 2011 international reserves covered 21 months of imports of goods 
and services. 
Table 1.3 Balance of payments, Macao, China, 2007-11  
(US$ million) 
 2007  2008  2009  2010 2011a 
Current account 4,306.0 4,036.1 6,787.8 12,189.5 17,604.5 
Goods -4,691.2 -5,116.9 -4,408.3 -5,538.8 -7,817.4 
Services 9,720.0 12,077.1 13,876.7 21,342.7 29,434.0 
Income -154.6 -2,107.9 -1,860.9 -2,875.2 -4,951.2 
Current transfers -568.3 -816.3 -819.7 -739.3 939.2 
Capital and financial account 3,790.7 1,464.0 -4,327.8 -6,626.2 -10,540.6 
Capital account 318.6 393.4 604.2 19.6 -143.9 
Financial accountb 3,472.1 1,070.5 -4,932.0 -6,645.8 -10,396.6 
Financial non-reserve assets (net 
change) 6,979.0 3,344.7 -2,817.3 -1,488.0 -218.3 
Direct investment 5,012.5 3,137.8 186.4 3,931.2 1,484.5 
Portfolio investment -1,251.2 -1,388.3 -1,675.3 -842.6 -1,879.3 
Financial derivativesc 48.0 -29.3 -15.2 -8.1 -43.7 
Other investment 3,169.6 1,624.5 -1,313.1 -4,568.6 220.2 
Reserve assetsd -3,506.9 -2,274.2 -2,114.7 -5,157.8 -10,178.3 
Errors and omissions -8,096.6 -5,500.0 -2,460.0 -5,563.3 -7,064.0 
Overall balance of payments 3,506.9 2,274.2 2,114.7 5,157.8 10,178.3 
a Figures are subject to later revisions. 
b "-" represents a decrease in external liabilities or an increase in external assets, indicating an 
outflow of funds. 
c According to the latest revision of the IMF, financ ial derivatives are presente d as an individual item 
of the financial account. 
d Excluding price and exchange rate ch anges as well as ot her adjustments. 
Source: Information provided by the authorities of Macao, China. 
1.3.1  Composition of trade 
1.17.  Services exports accounted for 97% of the MSAR's total exports of goods and services in 
2011. Tourism (recorded under Travel), including ga ming exports, accounts for almost the entire 
total (Table 1.4). Reflecting the effect of introducing competition into the gaming sector, as 
elaborated in the last TPR11, tourism sector exports have grown almost ten-fold: tourism exports 
rose to US$38,451 million in 2011, from US$7,479 million in 2004 when the first foreign-invested 
gaming concessionary was in operation, and from US$4,306.1 in 2002 when the gaming sector 
was liberalized. Some research has indicated a close positive correlation between tourist arrivals and GDP growth (Chart 1.1). Exports of non-gaming tourism services increased by 13% in the 
second quarter of 2012, of which accommodation and other non-gaming expenditure grew by 12% 
and 13% respectively.
12 Transportation is the second-largest services export sector, followed by 
financial services. 
1.18.  The largest services imports by Macao SAR  were "other business services", accounting for 
more than 60% of services imports during the revi ew period (Table 1.4). The authorities indicate 
that "other business services" contains mostly "auxiliary services related to the operations of casinos", which mainly reflected payments to gaming junkets for the sales of rolling chips abroad 
as the gaming sector fast expands. 
                                               
11 WTO (2007). 
12 One of the objectives of gaming liberalization in 2002 was to bring in healthy and constructive 
competition to the gaming industry and to encourage th e gaming concessionaires to include other amenities in 
their properties, such as more MICE, retail shops, food and beverage outlet s, entertainment, shows and hotels, 
etc. to attract more visitors to Macao. WT/TPR/S/281 • Macao, China 
 
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  Chart 1.1 Correlation between ec onomic performance and tourism 
02,0004,0006,0008,00010,00012,000
01,0002,0003,0004,0005,0006,0007,0008,000
Qtr.1
Qtr.2Qtr.3Qtr.4
Qtr.1
Qtr.2Qtr.3Qtr.4Qtr.1Qtr.2Qtr.3
Qtr.4
Qtr.1Qtr.2Qtr.3Qtr.4Qtr.1Qtr.2Qtr.3
Qtr.4
Qtr.1Qtr.2Qtr.3Qtr.4Qtr.1Qtr.2
Qtr.3
Qtr.4Qtr.1Qtr.22005 2006 2007 2008 2009 2010 2011 2012Visitors '000 US$ million
Gaming tax
revenueGross gaming
revenueGDPVisitors arrivals
 
Source:  GU, X and Tam, P.S. (2011), "Casino taxation in Macao: an economic perspective", Journal of 
Gambling Studies , Vol. 27. 
Table 1.4 Services trade, 2007-11  
(US$ million) 
 2007 2008 2009 2010 2011 
Exports 14,202 17,759 18,821 28,700 39,783 
Transportation 473 446 351 500 598 
Travel 13,405 16,947 18,142 27,805 38,451  
Other services 324 365 328 398 734 
Communications 89 98 73 93 81  
Insurance 23 20 18 31 37 
Financial 83 66 82 108 137  
Other business services 129 182 155 166 479a 
Imports 4,482 5,681 4,944 7,357 10,349 
Transportation 307 281 237 301 379 
Travel 695  828  915  1,154  1,376  
Other services 3,480 4,572 3,792 5,902 8,594  
Communications 57 65 63 54 45  
Construction 0 0 0 149 305 
Insurance 129 101 78 93 106  
Financial 26 26 33 47 41 
Computer and information 46 42 39 36 40  
Royalties and license fees 45 102 122 183 168 
Other business services 3,119 4,159 3,364 5,193 7,658  
Government, n.i.e. 58 77 94 147 231 
a The authorities indicate that merchanting services (e.g. business services for offshore activities) was 
first collected and compiled in the services export statistics in 2011. 
Source:  Information provided by the authorities of Macao, China. 
1.19.  During the period under review, merchand ise trade deficits widened as the manufacturing 
sector continued to shrink. Total merchandise exports decreased sharply, to US$869.3 million in 2011, about one third of the level in 2007 (US$2,5 42.4 million) due to the significant contraction 
in textile exports (Table A1.1). Soon after the expiry of the Agreement on Textiles and Clothing 
(ATC) in 2007, exports of textiles and garment pr oducts, which had a dominant share in MSAR's 
manufacturing (about 67% for both outputs and total merchandise exports in 2007), began to decline at double-digit rates. Consequently, the number of economic operators engaged in 
merchandise trade business decreased sharply; for certain products, less than three economic WT/TPR/S/281 • Macao, China 
 
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  operators remain in business. Data for such trad e is not disclosed to the public without consent 
from these traders, to protect their commercial confidentiality in accordance with relevant provisions.
13 The share of non-disclosed "confidential" statistics accounted for about 19% of total 
exports in 2011 (Chart 1.2). 
Chart 1.2 Product composition of merchandise trade by HS section, 2007 and 2011 
% 
2007 2011
(a)    Exports 
Total:   US$2,542.4 million Total:  US$869.3 million  
(b)    Imports 
Base metals & 
articles thereof
6.6  (XV)Precious stones
3.5  (XIV)Chemicals 
4.2  (VI)
Precious stones
13.2  (XIV)Machinery; electrical 
equipment
15.2  (XVI)
Base metals &
articles thereof
2.5  (XV)
Total:   US$5,365.1 million Total:   US$7,768.1 million Precision 
instruments
5.2  (XVIII)Confidential 
data
19.3
Confidential 
data
0.3Textiles & 
textiles articles
65.6  (XI)
Other
16.6
Other 
8.1Manufactured 
articles n.e.s.
6.3  (XX)Base metals &
articles thereof
2.9 (XV)
Other
12.7Live
animals
2.9 (I)
Transport 
equipment
5.3  (XVII)Prepared foodstuff, 
beverages & tobacco
10.9  (IV)
Other
11.5Confidential data
6.5
Chemicals 
5.6 (VI)Transport 
equipment
5.0  (XVII)Mineral products
12.1  (V)Confidential
data
0.7Textiles & 
textiles articles
19.1  (XI)
Base metals &
articles thereof
7.4 (XV)Machinery; 
electrical 
equipment
13.5  (XVI)
Live
animals
4.4 (I)Prepared foodstuff, 
beverages & tobacco
10.8  (IV)Prepared foodstuff, 
beverages & tobacco
7.9  (IV)
Mineral 
products
10.9  (V)
Textiles & 
textiles articles
4.9  (XI)Textiles & 
textiles articles
17.4  (XI)Machinery; electrical 
equipment
22.3  (XVI)
Machinery; electrical 
equipment
17.2  (XVI)Precision 
instruments
7.7  (XVIII)Precision instruments
3.4  (XVIII)Manufactured 
articles n.e.s.
4.1  (XX)Manufactured 
articles n.e.s.
6.3  (XX)
 
Note: Data in brackets refer to the HS Section number. 
Source: WTO calculations based on data prov ided by the authorities of Macao, China. 
                                               
13 Article 8, the Governor's Decision No. 242/GM/99. Viewed at: http://images.io.gov.mo/ 
bo/i/99/47/ds-242-99.pdf  [in Chinese and Portuguese]. WT/TPR/S/281 • Macao, China 
 
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  1.20.  Machinery and electronic equipment account ed for 15% of total exports in 2011; 16.6% of 
total exports in 2011 were categorized as "other". The authorities note that products categorized as "other" include: articles for casinos, electrical and electronic components and parts for electro-technical use, glass and glassware, travel good s, handbags and related products. Exports of 
processed foods, beverages and tobacco rose to 11% from a negligible share in 2007; this growth 
partly mirrored the development of processing trade in Macao SAR under the CEPA (section 1.3.2). Precision instruments accounted for 5.2% of total merchandise exports in 2011, which was 
partially attributed to the growth of re-exports.
14 Though the absolute value is small, non-textile 
products grew by 29.3% on a year-on-year basis in the first five months of 2012.15 
1.21.  Re-exports have become the dominant part of total merchandise exports since the first 
quarter of 2009, when they accounted for 53.7% of the total; in the first half of 2012, this share 
grew to 69.3%. The decline in merchandise export s stopped in the fourth quarter of 2011, for the 
first time during the review period, mainly because of a 23.0% growth of re-exports. The 
authorities indicate that the growth in re-exports  was attributed to a trend of switching transit 
trade to re-exports, as the latter has a simpler customs procedure. This also reflected closer 
economic ties with neighbouring economies, such as Hong Kong SAR: when Macao SAR was developing its retail trade in, inter alia , watches, clocks, and jewell ery, investment from Hong 
Kong SAR in these retail outlets increased co nsiderably, and export and re-export of these 
products have become much more frequent. 
1.22.  The rapid growth of merchandise imports by Macao SAR during the period under review 
reflected expanding demand as well as its declinin g manufacturing sector (Table A1.1). Imports of 
manufactures accounted for the largest share of merchandise imports (Chart 1.2). The authorities 
note that manufacturing imports include "capital goods", such as casino equipment, office machinery, buses, and personal electronic gadgets . During the review period, imports of luxury 
consumer goods, in particular jewellery, watches, and handbags, increased markedly at 
double-digit rates.
16 Imports of precious stones accounted for 13.2% of total merchandise imports 
in 2011 (up from 3.5% in 2007). The share of agricultural product imports (to total merchandise 
imports) also grew, from 10.8% in 2007 to 15.2% in  2011, partly reflecting the increase in income 
and prices of imported food. The authorities also indicate that the significant drop in the share of textiles and clothing in total imports (from 17.4% in 2007 to 4.9% in 2011) was due to the sharp contraction of textile manufacturing: less raw materials and semi-manufactured textiles and 
clothing goods were imported than  before the expiry of the ATC. 
1.3.2  Direction of trade 1.23.  China remained the MSAR's largest source of merchandise imports but its share decreased 
from 43% in 2007 to 31% in 2011 (Chart 1.3); th e value of total imports from China in 2011, 
compared with 2007, remained much the same. The decrease in proportion of imports from China 
mirrored the growth of imports from other countries and regions (Table A1.2). Imports from 
Europe expanded during the review period; th e share of EU27 increased from 15.7% in 2007 to 
24.9% in 2011 while the share of imports from Switzerland rose from 2.3% to 7.2%. This significant growth of imports from the EU and Switzerland reflected increasing local demand for high-end consumer goods such as watches, clocks, and jewellery. 
1.24.  Major markets for merchandise exports are Hong Kong SAR, China, the United States, and 
the EU (Chart 1.3, Table A1.3). With the rapid in crease in re-exports, Hong Kong SAR has become 
the top destination of the MSAR's merchandise exports; the share reached 44.6% in 2011, up from 
13.1% in 2007. The share of the United States as  an export destination for MSAR's merchandise 
goods dropped from 40.6% in 2007 to 8% in 2011, while the EU's share shrank from 18% to 5.5%. In addition to the disappearance of expo rt markets for textiles after 2008, the significant 
drop in the share of merchandise exports to the United States and the EU was attributed to the 
decreasing demand of the two economies as a result of the recent global financial crisis. 
                                               
14 AMCM (2013). 
15 AMCM (2011, 2012b). 
16 DSEC, Macao Economic Bulletin , various issues. WT/TPR/S/281 • Macao, China 
 
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  Chart 1.3 Direction of merchandise trade, 2007 and 2011 
% 
2007 2011
(a)    Exports 
Hong Kong, 
China
13.1
Total:   US$2,542.4 million Total:  US$869.3 million  
(b)    Imports 
Hong Kong, 
China
10.1
Japan
9.0
China
42.6Chinese Taipei
3.5EU27
15.7
China
30.7EU27
5.5
Japan
6.3EU27
24.9
Total:   US$5,365.1 million Total:   US$7,768.1 million Hong Kong, 
China
44.6Other
18.0a
Other Asia
6.3Other
1.8United States
40.6
EU27
18.2Other
Asia
8.2
Other 
Asia
6.3China
15.7
China
14.9
Other
2.2United States
5.6
Hong Kong, 
China
12.2United
States
8.0
Other Asia
5.2Other 
8.1a
Switzerland
7.2United States
6.0
Singapore  2.2
Singapore
3.1
Switzerland
2.3Chinese Taipei   2.1
 
a Also including confidential  data not being published. 
Source: WTO calculations based on data prov ided by the authorities of Macao, China. 
1.25.  Since 2004, Macao SAR has established closer ties with China through the signing of the 
Closer Economic Partnership Arrangement (CEPA) (Chapter 2.4.3). As Macao SAR is a small economy with few restrictions on imports and investments, CEPA's impact was expected to be 
seen more on the export side. CEPA offers market  opportunities for the MSAR's business as well as 
chances for foreign investors to invest and conduct business in the MSAR so that they may enter China's market under preferential conditions. 
1.26.  Merchandise exports to China under the CEPA, where "Macao Origin" goods may enter 
China's market with zero tariffs, have increase d markedly since 2009 (Table 1.5); total goods WT/TPR/S/281 • Macao, China 
 
- 18 - 
 
  exports under CEPA reached MOP 85.19 million in 2011, compared with MOP 38.81 million in 2009 
and MOP 27.87 million in 2007. The CEPA may also provide MSAR businesses with opportunities to 
develop new manufacturing, in particular processing  industries. It appears that this zero-tariff 
treatment of "Macao Origin" goods motivates fore ign enterprises to invest in the manufacturing 
sectors in Macao SAR.17 Coffee manufacturing, plastic articles, and copper articles are newly 
developed processing industries (Table 1.5). The CEPA may also help to reverse the continuous contraction of the textile sector, as exports of textile and clothing under the CEPA have increased 
significantly since 2010. The authorities indicate th at growing textile exports under the CEPA will 
foster the development of a high value-added textile and clothing sector. 
Table 1.5 Merchandise exports from Ma cao SAR to China under CEPA, 2007-11 
(MOP) 
  2007 2008  2009  2010 2011  
Coffee 26,364 48,096 372,862 366,180 1,483,073 
Food 0 0 21,790 47,700 460,636 
Inks 614,126 478,196 946,179 792,880 1,684,377 
Plastic articles 287,112 94,094 2,260,260 3,876,511 1,847,624 
Cement 0 0 495,936 3,707,568 425,412 
Textiles and 
clothing articles 5,870,448 1,608,134 1,408,122 8,027,837 19,674,618 
Footwear 13,882,417 0 0 0 0 
Copper articles 3,742,946 8,293,243 17,760,693 31,470,233 49,719,205 
Stamps 2,466,700 4,337,790 6,373,424 14,844,800 9,059,500 
Other products 977,105 942,956 9,170,352 1,844,328 836,714 
Total 27,867,218 15,802,509  38,809,618  64,978,037 85,191,159  
Source: Information provided by the authorities of Macao, China. 
1.27.  Macao SAR's major services export markets are within the region, including China, Hong 
Kong SAR, Chinese Taipei, and Japan. China and Hong Kong SAR together accounted for more 
than 80% of visitor arrivals (Table  4.7). Visitor arrivals from outside China, Hong Kong SAR, and 
Chinese Taipei grew 6.7% in the first quarter of 2012, while those from China grew by 14.9%, 
Hong Kong SAR dropped by 3.3%, and Chinese Taip ei dropped by 9.3% on a year-on-year basis.18 
Visitors from China have been facilitated by the Individual Traveller Scheme (ITS) under the CEPA, 
which has had the most profound effect on the MSAR's economy through its influence on services exports. By the end of 2011, 24% of total visito r arrivals to Macao SAR were under the ITS. The 
authorities note that most ITS visitors were same-day travellers coming from neighbouring 
Chinese provinces such as Guangdong and Fujian. 
1.4  Foreign direct investment 1.28.  During the period under review, Macao SAR maintained a positive inflow of FDI each year 
(Table 1.6 Inbound FDI flows to Macao, China, 2007-11). The stock of total FDI into the MSAR 
increased from US$9.1 billion in  2007 to US$14.9 billion in 2011. 
1.29.  Hong Kong SAR has traditionally been the major origin of FDI into Macao SAR, in particular 
into the gaming sector. In 2011, FDI into the gaming sector was a negative flow of 
US$580 million; the FDI flow from Hong Kong SAR was an outflow of US$1,157 million. The 
authorities indicate that this sudden reversal of  the FDI from Hong Kong SAR probably reflected 
the recent ownership change in one of the six gaming concessionaries/sub-concessionaries. 
1.30.  During the review period, more than half of the total FDI into the MSAR was in the gaming 
sector, demonstrating the MSAR's comparative advantage in this sector, and its high profit margin.
19 The second largest FDI recipient was wholesale and retail business, which may reflect 
the recent growth of non-gaming services as part of the Government's diversification efforts. 
                                               
17 Transcripts of the Opening Speech by Chinese Premie r Wen Jiabao on the third Ministerial Conference 
of the Forum for Cooperation and Development between China and Portuguese-speaking Countries. Viewed at: 
http://www.fmprc.gov.cn/chn/gxh/zlb/ldzyjh/t768895.htm  [in Chinese, 05.10.12]. 
18 DSEC online information, "Visitor Arrivals". Viewed at: http://www.dsec.gov .mo/getAttachment/ 
3598f7fe-44ae-4192-8d17-7622cb08f0a6/EMVFR2012Q1.aspx?disposition=attachment  [22.10.12]. 
19 Platinum Broking (2012). WT/TPR/S/281 • Macao, China 
 
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  Notably, there was a surge of FDI in the cultural and recreational sector in 2011, recorded at 
US$531 million (Table 1.6). 
Table 1.6 Inbound FDI flows to Macao, China, 2007-11 
(US$ million) 
Industry/Origin 2007  2008  2009  2010 2011  
Non-financial sector 1,951.9 1,849.1 712.5 2,562.4 447.2 
  Manufacturing -1.1 15.3 -27.7 26.1 -10.6 
  Construction 322.0 80.4 104.8 162.3 28.5 
  Wholesale & retail 414.7 51.0 204.9 381.2 400.5 
  Hotel & restaurants -129.0 -10.3 17.3 26.4 51.3 
  Transports, storage & communication 86.5 0.5 106.0 17.7 27.1 
  Gaming 1,248.3 1,708.8 327.0 1,947.8 -580.3 
  Cultural, recreational & other services 10.5 3.5 -19.8 0.9 530.7 
Financial sector 353.1 754.0 144.7 264.1 201.0 
  Banks and securities 319.8 685.6 118.2 191.6 233.6 
  Insurance 33.4 68.3 26.5 72.5 -32.6 
Total 2,305.0  2,603.1  857.3  2,826.5 648.2  
Hong Kong SAR 785.9 510.7 833.8 1,174.9 -1,157.4 
United States 335.7 716.0 -275.5 683.6 418.5 
Cayman Islands 678.0 305.3 52.1 673.9 198.3 
China 418.5 704.6 120.2 163.4 286.1 
British Virgin Islands -8.8 137.6 -14.1 -39.0 1,052.6 
Others 95.8 229.0 140.8 169.9 -149.8 
Source: Information provided by the authorities of Macao, China. 
1.31.  The United States, Hong Kong SAR, and Ch ina are traditionally main sources of FDI into 
Macao SAR. FDI from the United States and China dropped significantly in 2009 reflecting the 
impact of the global financial crisis; however, the flow from the United States has reverted back to almost pre-crisis level, indicating that investment projects on the gaming concessions has 
resumed. Among six casino concessionaires/ sub-concessionaries, two are U.S.-invested 
companies. 
1.5  Economic outlook 1.32.  As a small open economy, Macao SAR's future growth is strongly influenced by external 
demand in its trading partners. Given that international organizations including the IMF have 
lowered growth forecasts for the East Asian region, Macao SAR is expected to "deviate from the remarkably high growth experienced in preceding years".
20 The AMCM estimates that the economy 
grew, in real terms, by 9.0% in 2012, down from 21.9% in 2011. The AMCM also anticipates 
single-digit growth in 2013.21  
1.33.  According to the Macao Monetary Authority, domestic demand will become a driving force 
for economic growth. Strong domestic demand was underpinned by large-scale public 
infrastructure construction, and privately funded construction of tourism-related facilities. As a result, job creation and household income growth prospects are favourable. Due to strong local demand, inflation forecast is unlikely to  deviate from 6% in the near future.
22 
1.34.  Services exports, in particular tourism ex ports, are expected to remain a major contributor 
to MSAR's trade surplus. Subject to a slow-down in MSAR's major markets, services exports are 
estimated to grow more slowly. 
                                               
20 AMCM (2013). 
21 AMCM considers that MSAR's economy has a high base for comparison (when calculating growth rate) 
after the strong growth in  the last a few years. 
22 AMCM (2013). WT/TPR/S/281 • Macao, China 
 
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  2  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1  General constitutional and legal framework 2.1.  Macao, China became a Special Administrative Region of the People's Republic of China 
(Macao SAR or the MSAR) on 20 December 1999. Th e Basic Law, which has constitutional value, 
guarantees Macao SAR's autonomy, with independen t executive, legislative, and judicial powers. 
In accordance with the Basic Law, Macao SAR maintains an independent taxation system, and retains its status as a free port and a separate customs territory. The Macao pataca remains the 
legal currency. Since the previous Review in 2007, there has been no significant change to 
Macao SAR's Constitutional and legal framework.
1 
2.2.  The head of Government is the Chief Executive, who has policy-making and executive 
powers. The Chief Executive appoints the Exec utive Council of between 7 and 11 members to 
assist in policy-making. The Government, the ex ecutive body of Macao SAR, is responsible for 
formulating and implementing policies, conducting administrative affairs and external relations, as 
authorized by the Central People's Government of China under the Basic Law, drawing up and 
introducing budgets and final accounts, and drafting bills and laws. The Legislative Assembly is the legislative organ, responsible for general law-making. Laws passed by the Legislative Assembly 
take effect after they have been signed and promulgated by the Chief Executive. The courts of 
Macao SAR exercise judicial power independently. Court judges are appointed by the Chief Executive on the recommendation of an independent commission composed of one local judge, 
one lawyer and five members of the community. Ar ticle 87 of the Basic Law stipulates that judges 
are chosen based on their professional qualificat ions, and qualified judges of foreign nationality 
may also be appointed. 
2.2  Trade policy formulation and implementation 
2.3.  In accordance with the Basic Law and und er the "one country, two systems" principle, 
Macao SAR has a high degree of autonomy in setting trade policies. Under the Basic Law, Macao SAR maintains the status of a free port, pursues a policy of free trade, and safeguards the 
free movement of goods, intangible assets, and capital (Articles 110 and 111). 
2.4.  As a separate customs territory, Macao SAR may, on its own, maintain and develop relations 
and conclude and implement agreements with foreign states and regions in fields such as 
economic, trade, financial and monetary, shipping, communications, tourism, cultural, science and 
technology, and sports. Macao SAR has maintained, for example, a separate status under the name Macao, China in 10 organizati ons, notably the WTO and UNESCO.
2 
2.5.  Trade policies are formulated by the Secretary for Economy and Finance (SEF), who is 
appointed by the Chief Executive. The SEF is assi sted by a number of bodies and funds, including 
the Macao Economic Services, the Financial Services Bureau, the Statistics and Census Bureau, the Gaming Inspection and Coordination Bureau, the Industrial and Commercial Development Fund, 
the Macao Trade and Investment Promotion Instit ute, the Macao Monetary Authority, and the 
Consumer Council.  
2.6.  The Macao Economic Services (MES) continue s to be the main agency advising and assisting 
the SEF, in coordinating and implementing policies on trade and the economy. It is mandated, 
inter alia , to: cooperate in the planning of economic policies and assist in the development of 
economic activities; promote and maintain a balanced and non-discriminatory economic environment; administer foreign trade regulations; issue required licences; plan and coordinate 
Macao SAR's participation and activities in international and regional economic forums; assist in 
the drafting and implementation of policies governing intellectual property; implement the 
                                               
1 For details of the Constitutional and legal framework, please refer to WTO (2007). 
2 These 10 international organizations are: the Worl d Trade Organization (WTO), the United Nations 
Educational, Scientific and Cultural Organization (UNESC O), the International Maritime Organization (IMO), the 
World Meteorological Organization (WMO), the World Tourism Organization (UNW TO), the World Health 
Organization Regional Committee for the Western Pacific, the World Customs Organization (WCO), the Asia 
Pacific Telecommunity (APT), the Asia and Pacific Development Centre (APDC), and the United Nations 
Economic and Social Commission in Asia and the Pacifi c (ESCAP). Macao SAR remains a guest economy in the 
APEC, and it is not a member of the financ ial institutions such as the IMF or ADB. WT/TPR/S/281 • Macao, China 
 
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  consumption tax regulations; promote the developm ent of the convention an d exhibition industry; 
as well as manage foreign trade under quota for HCFCs in accordance with the Montreal Protocol.3 
2.7.  Representatives from the private sector, independent institutions, or bodies such as trade 
associations, and academic institutions, provide inputs into policy-making and carry out 
assessments of trade policies. The private sector  may express its views on trade policy to the 
Government through a range of communication channels, comprising the legislature; media interviews and editorials; bilateral meetings; and public consultations. In 2011, Macao SAR issued 
its Chief Executive's Decision on the Standard Guidelines on Public Policy Consultations, providing 
opportunities and timeframes for interested parties to comment on the proposed introduction or amendment of policies or legislation.
4 
2.8.  In descending order of importance, the Basic Law is followed by laws, decree-laws, 
administrative regulations, orders, and executive orders governing all fields, including trade. The 
Chief Executive may issue administrative regulations, executive orders, and decisions in accordance with laws or decree-laws. The main legislation on international trade remains 
Law No.7/2003, which provides the general principles of foreign trade and mechanisms for the 
import, export, and transit to/from Macao SAR . Since the previous Review, Macao SAR has 
issued/amended/revised certain legislation (Table 2.1). Table A2.1 is a consolidation of major 
trade and investment-related legislation. 
Table 2.1 Main trade and investment-related  legislation issued/amended/revised since 
2007 
Subject Date Legislation Content 
Foreign trade 10.08.2009 Law No. 16/2009 - 
Amendments to 
Commercial Code Commercial Code amendments 
03.01.2012 Chief Executive's Decision 
No. 452/2011 Competent public auth orities responsible 
for licensing, goods exempted from 
control, and goods subject to sanitary 
inspection. 
12.03.2012 Chief Executive's Decision 
No.45/2012 - 
Amendments to Chief 
Executive Decision 
No. 452/2011 The amount of tobacco products that an 
individual is allowed to bring to the MSAR 
was reduced 
Customs clearance 10.08.2009 Law No. 17/2009 Law prohibiting the illicit production, 
supply and consumption of narcotic drugs 
and psychotropic substances. 
23.11.2009 Chief Executive's Decision 
No. 441/2009 Stipulation on the use of ATA carnets for 
temporary import and export 
Import prohibitions 
and restrictions 09.11.2009 Chief Executive's Decision 
No. 425/2009 Import quotas for HCFCs substances 
Standards and 
technical 
requirements 30.01.2012 Administrative Regulation 
No. 1/2012 Gas emission standards of new imported 
vehicles 
06.12.2010 Chief Executive's Decision 
No. 356/2010 Approved the tables of parameters of gas 
pollutant emissions, which substituted 
Tables I and II of Annex II of 
Administrative Regulation No.1/2008 
11.02.2008 Administrative Regulation 
No. 1/2008 Gas pollutants emission limits for new 
imported motorcycles 
07.08.2007 Microbiological Guidelines 
for Ready-to-eat Food 
(SAL 015-2007) Microbiological guidelines for ready-to-eat 
food 
Sanitary and 
phytosanitary requirements 31.12.2007 Chief Executive's Decision 
No. 341/2007 Temporary importation suspension of 
bovine meat products 
Labelling 
requirements 11.01.2010 Chief Executive's Decision 
No. 556/2009 Regulation on food additives 
Intellectual property rights protection 10.04.2012 Law No. 5/2012 Amendments to the Decree-Law 
No.43/99/M regulating the protection of copyright and related rights 
                                               
3 MES online information. Viewed at: http://www.economia.gov.mo  [02/04/2012]. 
4 Chief Executive's Decision No. 224/2011 of 15 August 2011. WT/TPR/S/281 • Macao, China 
 
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  Subject Date Legislation Content 
Telecommunications 30.12.2011 Administrative Regulation 
No. 41/2011 Regulation on the installation and 
operation of the fixed public 
telecommunications network 
Air transportation 11.02.2011 Executive Order 
No.8/2011 Approved the Air Navigation Regulation 
Tourism 18.07.2011 Administrative Regulation 
No. 18/2011 Regulation on the organization and 
operation of Macau Government Tourist 
Office (MGTO) 
Foreign investment  10.08.2009 Law No. 16/2009 – 
Amendments to Commercial Code Regulating commercial activities and 
commercial contracts 
Source:  Information provided by the authorities of Macao, China. 
2.9.  In 2011, the Legal Reform Office merged with the International Law Office, and became the 
Legal Reform and International Law Affairs Bureau. The Bureau is responsible for providing legal 
assistance on international law issues, and mutual legal assistance of international and regional 
nature.  
2.10.  International law and applicable international treaties to which Macao SAR is a signatory 
integrate directly into the legal system of Macao SAR.5 In case of conflict between international 
and domestic laws, applicable international agreements take precedence. The application to 
Macao SAR of international agreements to which China is or becomes a party, is decided by the 
Central People's Government of China, in accordance with the circumstances and needs of Macao SAR, after seeking the views of the MSAR  Government (Article 138 of the Basic Law).  
2.3  Trade policy objectives 
2.11.  Macao SAR, a small economy, continues to pursue an open economic policy. It remains a 
free port that applies a zero tariff on all imports (Chapter 3.2). According to the authorities, Macao SAR does not implement any trade instruments that hinder trade or influence the flow of 
goods and services. Macao SAR only applies import/export prohibitions and licensing for health, 
safety, security, or environmental-protection reasons,  to comply with its international obligations.  
2.12.  The Government is trying to diversify its economy, and develop the city into a world tourism 
and leisure centre, as well as a regional commerce and trade services platform. The authorities 
state that promoting economic diversification and increasing regional cooperation are top priorities. The Government wishes to enhance th e steady development of the tourism and gaming 
industry while regulating the scale of gaming de velopment, and to boost the development of the 
convention and exhibitions industry, cultural and creative industries, traditional Chinese medicine 
industry, and commerce and trade services.  
2.4  Trade agreements and arrangements 
2.4.1  Participation in the WTO 
2.13.  Macao, China, an original Member of the WTO, views the WTO's basic principles as 
important elements for a stable trading environment. In its schedule of commitments on goods, 
Macao, China bound 27.9% of its tariff lines at zero (Chapter 3.2).
6 Thus, 72.1% of its tariff lines 
are unbound, although all the applied tariffs are zero. The authorities state that Macao, China is considering binding more tariff lines as a contribution to a successful conclusion of the Doha Round negotiations, provided that mutually satisfactory results can be achieved. Macao, China bound at 
zero all products covered by the Information Technology Agreement (ITA) in 1997. Under the 
Pharmaceutical Agreement, Macao SAR's tariffs on pharmaceutical products are also bound at 
                                               
5 Regarding the WTO Agreements, the Republic of Port ugal (on behalf of Macao), ratified the Marrakesh 
Agreement Establishing the World Trad e Organization and the Final Act Embodying the Results of the Uruguay 
Round of Multilateral Trade Negotiations through the Order of the President of the Republic of Portugal of 27 December 1994, and ratified the Fifth Protocol to th e General Agreement on Trade in Services through the 
Order of the President of the Republic of Portugal of 8 November 1999. The People's Republic of China notified 
the Secretary-General of the United Nations on 13 De cember 1999 that the above Agreements would continue 
to apply to the Macao Special Administrative Region from 20 December 1999. 
6 WTO online information. Viewed at: http://stat.wto.org/TariffProfiles/MO_e.htm  [03/04/12]. WT/TPR/S/281 • Macao, China 
 
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  zero. As a result of the expansion of the produc t coverage of the Agreement, Macao SAR informed 
the WTO that additional pharmaceutical products as contained in Annexes I-IV were bound at zero from October 2007 and January 2011, respectively.  
2.14.  Macao, China supports the multilateral trading system. The authorities state that advancing 
the WTO and strengthening its role in sustaining trade liberalization are key to driving international 
trade and economic development, particularly fo r the developing and least developed countries 
(LDCs). The authorities believe that a successful conclusion of the Doha Round lies with the 
political will and positive engagement from all Me mbers in demonstrating more flexibility to bridge 
differences, with due consideration to the needs and interests of developing Members and LDCs. The Government is to continue to create an enabling investment environment, by increasing transparency in trade policies with regard to th e principles of the multilateral trading system.
7 
2.15.  So far Macao, China has not participated in any dispute settlement proceeding at the WTO, 
as complainant, respondent, or third party. To da te, Macao, China has no outstanding notification 
in the WTO Central Registry of Notifications (Table 2.2). 
Table 2.2 Selected notifications und er the WTO Agreements, March 2007 to 
February 2013 
WTO Agreement Requirement/content WTO document and date 
Agreement on Agriculture 
Article 18.2 Domestic support  G/AG/N/MAC/30, 27/03/2012 
G/AG/N/MAC/28, 12/04/2011 
G/AG/N/MAC/26, 10/02/2010 
G/AG/N/MAC/25, 31/03/2009 
G/AG/N/MAC/23, 11/04/2008 
G/AG/N/MAC/21, 21/03/2007 
Article 10 and 18.2 Export subsidies G/AG/N/MAC/31, 28/03/2012 
G/AG/N/MAC/29, 12/04/2011 G/AG/N/MAC/27, 10/02/2010 G/AG/N/MAC/24, 31/03/2009 G/AG/N/MAC/22, 14/04/2008 G/AG/N/MAC/20, 21/03/2007 
GATS 
Article V: 7(a) Regional trade agreements S/C/N/265/Add.6, 17/09/2012 
S/C/N/265/Add.5, 09/03/2012 S/C/N/265/Add.4, 17/12/2010 
S/C/N/265/Add.3, 07/08/2009 
S/C/N/265/Add.2, 26/01/2009 S/C/N/265/Add.1, 21/12/2007 
GATT 1994 Article XXIV: 7(a) (Free-Trade Areas) 
Article XXIV: 7(a) (Free-Trade Areas) CEPA WT/REG163/N/1/Add.6, 17/09/2012 
WT/REG163/N/1/Add.5, 09/03/2012 WT/REG163/N/1/Add.4, 17/12/2010 WT/REG163/N/1/Add.3, 07/08/2009 WT/REG163/N/1/Add.2, 26/01/2009 WT/REG163/N/1/Add.1, 21/12/2007  
GATT 1994 Article XXVIII: 5 (Market Access) 
Article XXVIII: 5 Notification of Schedule LXXXIX  G/MA/275, 09/01/2012 
G/MA/230, 09/01/2009 
Agreement on Implementation of GATT Article VI (Anti-dumping) 
Article 16.4  Semi-annual reports on anti-dumping 
actions taken during the period  G/ADP/N/188/Add.1/Rev.1, 23/11/2010 
G/ADP/N/188/Add.1, 16/10/2009 G/ADP/N/180/Add.1/Rev.2, 23/11/2010 G/ADP/N/180/Add.1, 27/04/2009 G/ADP/N/173/Add.1/Rev.2, 23/11/2010 G/ADP/N/173/Add.1, 21/10/2008 G/ADP/N/166/Add.1/Rev.3, 23/11/2010 G/ADP/N/158/Add.1/Rev.4, 23/11/2010 G/ADP/N/158/Add.1, 11/10/2007 G/ADP/N/153/Add.1/Rev.3, 23/11/2010 
G/ADP/N/153/Add.1, 17/04/2007 
Article 16.5  Notifications on anti-dumping actions G/ADP/N/193/MAC, 09/02/2010 
                                               
7 MES online information. Viewed at: http://www.economia.gov.mo/web/DSE/public?_nfpb=true&_ 
pageLabel=Pg_EETR_IE TO_WTO&locale=en_US  [03/04/12]. WT/TPR/S/281 • Macao, China 
 
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  WTO Agreement Requirement/content WTO document and date 
Understanding on Interpretation of GATT Article XVII (State trading enterprises) 
Paragraph 1  State trading enterprises G/STR/N/14/MAC, 11/04/2012 
G/STR/N/13/MAC, 09/02/2010 
G/STR/N/12/MAC, 16/04/2008 
G/STR/N/11/MAC/Suppl.1, 21/03/2007 
Agreement on Import Licensing  
Articles 1.4 (a) and 
8.2 (b)  Notification of laws and regulations on 
import licensing  G/LIC/N/1/MAC/4, 20/06/2012 
G/LIC/N/1/MAC/3, 10/12/2007 
Article 7.3 Questionnaire on import licensing  G/LIC/N/3/MAC/15, 19/10/2012 
G/LIC/N/3/MAC/14, 07/10/2011 G/LIC/N/3/MAC/13/Rev.1, 02/12/2010 G/LIC/N/3/MAC/13, 15/09/2010 G/LIC/N/3/MAC/12, 06/10/2009 G/LIC/N/3/MAC/11, 14/10/2008 G/LIC/N/3/MAC/10, 28/09/2007 
Quantitative restrictions (G/L/59 and G/L/59/Rev.1)  
 Notifications of quantitative 
restrictions G/MA/QR/N/MAC/1, 8/11/2012 
G/MA/NTM/QR/1/Add.12, 03/05/2011 G/MA/NTM/QR/1/Add.11, 11/04/2008 
Agreement on Subsidies and Countervailing Measures 
Article 25.1 Notification of subsidies G/SCM/N/220/MAC, 05/10/2011 
G/SCM/N/186/MAC/Suppl.1, 04/06/2010 G/SCM/N/186/MAC, 05/05/2009 G/SCM/N/155/MAC/Add.1, 16/04/2008 G/SCM/N/155/MAC, 21/03/2007  
Article 25.11 Countervailing duty actions taken G/SCM/N/195/Add.1, 14/10/2009 
G/SCM/N/185/Add.1/Rev.2, 02/11/2010 
G/SCM/N/185/Add.1, 27/04/2009 
G/SCM/N/178/Add.1/Rev.1, 28/04/2009 
G/SCM/N/178/Add.1, 21/10/2008 
G/SCM/N/170/Add.1/Rev.2, 28/04/2009 
G/SCM/N/170/Add.1, 24/04/2008 
G/SCM/N/162/Add.1/Rev.3, 28/04/2009 
G/SCM/N/162/Add.1, 11/10/2007 
G/SCM/N/153/Add.1/Rev.3, 02/11/2010 
G/SCM/N/153/Add.1, 18/04/2007  
Article 25.11 and 
25.12 Notifications on countervailing actions G/SCM/N/202/MAC, 09/02/2010 
Agreement on the Application of Sanitary and Phytosanitary Measures 
Article 7 Annex B Emergency measures G/SPS/N/MAC/10, 03/10/2008  
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) 
Article 69 Contact points IP/N/3/Rev.10/Add.1, 16/06/2008  
Source: WTO Secretariat. 
2.4.2  Regional agreements 
2.16.  Macao SAR has been granted "guest economy" status in several APEC working groups. The 
guest economy status is extended every three years, and has been renewed until 2014. As a guest 
economy, Macao SAR may be invited by the Chai r to respond to questions and participate in 
discussions in meetings, but may not take part in the decision-making process. Macao SAR participates in four working groups: the Industrial Science and Technology Working Group; the 
Small and Medium Enterprises Working Grou p; the Tourism Working Group; and the 
Transportation Working Group.
8 
2.17.  Macao SAR does not participate in any plurilateral regional trade arrangements and, with 
the exception of Mainland China under the Closer Economic Partnership Arrangement (CEPA), all 
trading partners are treated on an MFN basis. 
2.4.3  Bilateral agreements 
2.18.  In October 2003, Mainland China and Macao SAR signed the Closer Economic Partnership 
Arrangement (CEPA). It is based on the following principles: "one country, two systems"; the rules 
of the WTO; the needs of both sides to adjust an d upgrade their industries and enterprises and to 
promote steady and sustained development; reciprocity and mutual benefits, complementarity 
                                               
8 MES online information. Viewed at: http://www.economia.gov.m o/web/DSE/public?_nfpb 
=true&_pageLabel=Pg_EETR_IETO_APEC&locale=en_US  [03/04/12]. WT/TPR/S/281 • Macao, China 
 
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  with each other's advantages and joint prosperity; and progressive actions, i.e. dealing with easier 
subjects before the more difficult ones.9 The CEPA provides for phased liberalization in bilateral 
trade in goods, services, and trade and investment  facilitation. Since 2003, nine supplements have 
been signed, the latest on 2 July 2012. 
2.4.3.1  Trade in goods 
2.19.  Macao SAR applies a zero tariff on imports. From 1 January 2006 China applies zero tariffs 
on imported goods of Macao SAR origin, provided th at the related rules of origin have been agreed 
and fulfilled. Rules of origin have been developed for 1,260 tariff lines including foodstuffs, 
chemicals, photographic products, textiles and clothing, metal products, machinery and electronic products, pharmaceutical products, plastic articl es, stamps, optical parts, and accessories. To 
benefit from zero tariffs, goods exported to China must fulfil the rules of origin stipulated under 
the CEPA and accompanied by a CEPA Specific Certificate of Origin (CO). To qualify for this 
certificate, goods must be wholly produced in Macao SAR, or have undergone substantial 
transformation. The criteria for determining subs tantial transformation may include manufacturing 
or processing operations, change in tariff heading, value-added content, other criteria or mixed 
criteria (Chapter 3.3.1).  
2.20.  The CEPA stipulates that neither party shall apply non-tariff measures that are inconsistent 
with WTO rules to goods imported from, and originating in, the partner's territory; China will not 
apply tariff-rate quotas on goods originating in Macao SAR; neither party may apply anti-dumping measures or countervailing measures on goods imported from, and originating in, the partner's territory; safeguard measures may be adopted, afte r giving written notice, to temporarily suspend 
concessions on imports of the product concerned from the other party's territory. So far, Macao 
SAR has not adopted any safeguard measures. 
2.21.  The CEPA provides opportunities for Macao SAR to develop some processing industries. As a 
free port, goods imported from other countries enter Macao SAR with zero tariffs. If these goods 
go through substantial manufacturing or processing  operations in Macao SAR, they may be claimed 
to have Macao origin and be exported to China's market duty free. Some processing industries 
have been developed in Macao SAR since the entry into force of the CEPA (Chapter 1.3.2). For 
example, the number of factories manufacturing  chemical products, and food products and 
beverages, increased by 30.8% and 18.3% respectively, from 2007 to 2011. The authorities indicate that some new industries have also emerged, including green lighting products, spring 
mattresses, electric motorcycles, and solar technology. 
2.22.  On the other hand, although certain products may enter China's market duty free, there are 
no exports of these items under the CEPA for va rious reasons. The dominance of the services 
sector in the economy, and in particular the prosperous tourism and gaming sector, has led to 
increased production costs, including for land an d labour (Chapter 4.3.6). This has squeezed the 
manufacturing sector: all of the MSAR's footwear factories have been closed down, and the export 
value of footwear to Mainland China has been ze ro since 2007. During the review period, the share 
of exports under the CEPA to total exports incr eased but remains low (1.22% in 2011, up from 
0.14% in 2007) (Chapter 1.3.2). More efforts to diversify the economy are needed to realize the opportunities brought by the CEPA, and to achi eve sustainable development of the economy. 
2.23.  Up to the end of May 2012, the MES received  2,114 applications for the CEPA certificate of 
origin, of which 2,083 were issued. Among them, 1,882 CEPA certificates of Macao origin have been used to export goods to China, while the rest were either cancelled or not used. A total of 
MOP 299.71 million goods were exported to Chin a under the CEPA, with MOP 23.98 million tariff 
savings.  
2.4.3.2  Services 
2.24.  In accordance with the CEPA, both partners must progressively reduce or eliminate existing 
restrictions on the others' services and service suppliers. The authorities state that Macao SAR, as one of the most open economies in the world, has insisted on maintaining minimal regulation in 
                                               
9 In accordance with CEPA, both parties agree not to apply: Articles 15 and 16 of the Protocol on the 
Accession of the People's Republic of China to the WT O and paragraph 242 of the Report of the Working Party 
on the Accession of China. WT/TPR/S/281 • Macao, China 
 
- 26 - 
 
  the services market to attract investors from  abroad. Under CEPA, Macao SAR agreed not to 
impose new restrictive measures on China's suppliers in the services areas covered; the authorities stated that the CEPA contains most of the services sectors in Macao SAR, and the coverage largely outweighs the substance of Macao SAR's commitments to GATS.  
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 (Table 2.3). After obtaining a Macao services supplier certificate, businesses from Macao SAR may 
enter China's market under preferential treatm ent. There are even fewer restrictions for 
conducting business in the Guangdong Province of China.
10 
Table 2.3 Services sectors and subsectors covered under CEPA 
Services Services 
1. Legal 25. Professionals qualification examinations 
2. Accounting 26. Trade mark agency 
3. Construction and real estate 
(1) Professional services  (2) Construction and related engineering services  (3) Real estate services  
27. Patent agency 
4. Medical and dental 28. Computer and the related services 
5. Advertising 29. Market research 
6. Management consulting 30. Services related to management consulting 
7. Convention and exhibition 31. Public ut ility (including gas, heating, and water 
supply and drainage networks)  
8. Telecommunications 32. Building-cleaning 
9. Audiovisual 33. Photographic 
10. Distribution 34. Printing 
11. Insurance 35. Translat ion and interpretation 
12. Banking 36. Environmental 
13. Securities and future s 37. Social services 
14. Tourism 
(1) Hotels (including apartment buildings) and 
restaurants  
(2) Travel agency and tour operator  38. Sporting 
15. Transport (road and maritime transport) 
(1) Maritime transport services  (2)  Road transport services  39. Services incidental to mining 
16. Freight forwarding agency 40. Related scientific and technical consulting 
17. Storage and warehousing 41. Re search and Development Services 
18. Logistics (including ro ad transport, storage and 
warehousing, loading and unloading, value adding 
processing, packaging, delivery and related 
information and consultancy services for ordinary road 
freight; freight transport agency services within the 
Mainland; and the manage ment and operation of 
logistics services through computer network)  42. Other business services (including speciality design 
services, and commercial factoring services in 
Shenzhen and Guangzhou) 
19. Information technology 43. Interdis ciplinary research and experimental 
development services 
20. Job referral agency 44. Services incidental to manufacturing 
21. Technical testing, analysis and product testing 45. Library, archive, museum and other cultural 
services 
22. Job intermediary 46. Individually owned storesa  
23. Cultural and recreational 47. Education 
24. Air transport (including airport operation services 
(excluding cargo handling), airport management 
training and consultation services, air transport 
ground services, sales and marketing services for air 
transport, computer reservation system (CRS) 
services as well as aircra ft repair and maintenance 
services)  48. Rail transport 
a An individually owned store is a store owned by a natural person legally entitled to operate it, and 
duly registered in accordance with Mainla nd China's relevant rules and regulations. 
Source: CEPA online information. Viewed at: http: //www.cepa.gov.mo/cepaweb/front/eng/itemI_1_3.htm  
[03/04/12]. 
                                               
10 "Existing Provisions on Trade in Services under CEPA that involve the Province of Guangdong". Viewed 
at: http://www.cepa.gov.mo/cepawe b/front/eng/pdf/CEPA_GDe.pdf  [11/09/2012]. WT/TPR/S/281 • Macao, China 
 
- 27 - 
 
  2.26.  As the economy is small and most enterprises in Macao SAR are SMEs, it remains difficult 
for Macao SAR's services suppliers to enter China's market, particularly in the financial services sector. So far, 429 Macao services supplier certificates have been issued, of which, 98 to freight-forwarding agencies, 62 to logistics serv ices providers, and 53 to transport services 
providers. No certificates have been issued fo r banking, insurance, securities, and futures; 
according to the authorities, this is mainly due to the relatively high minimum capital requirement , 
as well as the development strategy of individual financial institutions. 
2.27.  Under the CEPA, to qualify as Macao services suppliers (excluding legal services)
11, natural 
persons must be permanent residents of Macao SA R, while juridical persons must be organized 
under the Commercial Code, Commercial Registry Co de or other relevant laws of Macao SAR. So 
far, no foreign-invested businesses have applied for certificates as Macao services suppliers. 
Overseas companies, representative offices, or li aison offices, that are not registered and do not 
have a substantial business operation in Macao SAR, cannot be considered as Macao services suppliers. To be considered, foreign companies must have more than 50% of capital from 
Macao SAR, and any acquired or merged companies in Macao SAR must be engaged in a 
substantial business for a minimum of one year after such a merger or acquisition.  
2.28.  Macao services suppliers must comply with tax obligations, own or rent premises in Macao 
SAR for operation purposes, have more than 50% of employees being residents staying in Macao 
SAR without limit of stay and other persons permitted to reside in Macao SAR according to relevant regulations. In general, these services suppliers must have engaged in substantive business operations for at least three years. Exceptions include services suppliers providing 
construction and related engineering services, banking and other financial services, insurance and 
related services; these services suppliers must be  registered in Macao SAR and have engaged in 
substantive business operations for five years or more. Exceptions also include services suppliers 
providing real estate services, for which there is no requirement as to the years of substantive 
business operation. To provide maritime transport services, 50% or more of the ships owned by Macao services suppliers (in terms of tonnage) must be registered in Macao SAR. 
2.29.  Businesses interested in obtaining Macao services supplier certificates must submit an 
application form (in Chinese or in both Chinese and Portuguese), which must be attested in Chinese by a notary officer recogn ized by the authorities of either party. The declaration must be 
stamped by China Legal Services (Macao). The MES issues the certificate, with a validity of two 
years, non-transferrable, and non-renewable; acco rding to the authorities, circumstances change 
after two years of operation, so that at the end of the two-year period, interested businesses may 
reapply for a new certificate.  
2.4.3.3  Trade and investment facilitation 
2.30.  Both parties to the CEPA agreed to promote trade and investment facilitation through 
greater transparency, standards conformity, and enhanced information exchange. In particular, 
the parties undertook various initiatives to promote mutual cooperation in 10 areas: trade and 
investment promotion; customs clearance facilitation; commodities inspection, inspection and quarantine of animals and plants, food safety, sani tary quarantine, certification, accreditation and 
standardization management; electronic business; transparency in laws and regulations; 
cooperation of SMEs; industrial cooperation; protection of intellectual property rights; cooperation 
on brand promotion; and cooperation on education. 
2.31.  In accordance with the CEPA, a Joint Steering Committee was established between Mainland 
China and Macao SAR to supervise the implementati on of the CEPA, to resolve disputes that may 
arise, to interpret its provisions, and to draft additions or amendments. The Committee meets at least once a year, and may convene special meetings within 30 days, upon request by either 
party. 
                                               
11 The requirements for a Macao natural person to qualify to provide legal services in China vary, 
depending on the type of legal services. WT/TPR/S/281 • Macao, China 
 
- 28 - 
 
  2.4.4  Cooperation in the region 
2.32.  Under the umbrella of "one country, two systems", cooperation with Mainland China has 
various dimensions. Cooperation in the Pan-Pearl River Delta Region (PPRD) was officially launched with the signing of the PPRD Cooperation Framew ork Agreement in June 2004. The PPRD region, 
comprising nine provinces in Southern China (with more than 35% of China's total economic 
output), as well as Hong Kong SAR and Macao SAR, account for 20% of the area in China, and one third of its population. However, besides the framework agreement itself and six forums held 
with Macao SAR and other agreement members, it seems there are no detailed implementing 
measures for PPRD cooperation.  
2.33.  Among the nine provinces in the PPRD region, cooperation has been particularly close with 
Guangdong Province. Macao SAR borders Zhuhai, one of the first special economic zones in China 
and located in Guangdong Province. The Zhuhai-Macao Cross-Border Industrial Zone was the first 
joint programme with Guangdong Province, with the aim of enhancing the development of manufacturing, and serving as a hub of logisti cs, transit, and exhibitions. After becoming 
operational initially in October 2006, the Industrial Zone is being repositioned. As Macao SAR is 
developing into a regional tourism and leisure destination, the Zone is now targeting high-end logistics, transit trade, convention and exhibition  industry, and service outsourcing. The authorities 
note that the industrial zone plays an important role in achieving Macao SAR's economic 
diversification, and is also beneficial to the economy by attracting investment from Mainland China and Portuguese-speaking countries.   
2.34.  Macao SAR's development was mentioned in the Outline Plan on the Reform and 
Development of the Pearl River Delta issued by China's National Development & Reform 
Commission (NDRC) in December 2008. In accordance with the Outline Plan, the central Government of China supports cooperation within the region to, inter alia , advance the 
development level of the services industry, promote Macao SAR's tourism to become a world 
tourism and leisure centre, improve the transportation infrastructure, pursue convergence in urban planning including rail transit networks, information networks, energy base networks, and urban 
water supply. The authorities note that other supporting policies include simplifying administrative 
procedures, supporting innovation of the enterpri ses and employment services, ensuring stable 
provision of energy, and improving market conditions; however, it is too soon to evaluate the effectiveness of these policies. 
2.35.  As underlined in China's 12
th Five-Year Plan (promulgated in March 2011), Macao SAR aims 
to become a world tourism and leisure centre. To achieve this target, regional cooperation, in 
particular with Guangdong Province, is to be st rengthened and Guangdong is designated as the 
"early and pilot implementation point" for the new liberalization measures under the CEPA. In 
March 2011, the Framework Agreement on C ooperation between Guangdong and Macao was 
signed. Major areas of cooperation include: joint development of Hengqin Island; synergistic 
development of industries, infrastructure and co nvenient border crossing; and improvement of 
social and public services.  
2.36.  Hengqin Island, which is three times the size of Macao SAR, is currently under the 
administration of Zhuhai, Guangdong Pr ovince. In 2009, the lease of a 1.09km2 plot of land on the 
Island was granted to Macao SAR, for the new campus of the University of Macau, which is 
expected to be inaugurated in 2013. Macao SAR's laws will apply within the campus. Macao SAR is a u t h o r i z e d  t o  o p e r a t e ,  t o g e t h e r  w i t h  G u a n g d o n g  P r o v i n c e ,  o n  a n  i n d u s t r i a l  z o n e  o f  5 k m
2 on 
Hengqin. Hengqin Island will have a large collect ion of amusement parks, resorts, and convention 
and exhibition facilities, as well as a scientific and industrial park for traditional Chinese medicine, hence offering Macao SAR a good opportunity for economic diversification and regional 
cooperation. At the time of drafting this report, detailed policy measures for the Hengqin 
cooperation project have not been announced. 
2.37.  All banks in the MSAR are allowed to engage in offshore RMB business, i.e. they may carry 
out personal RMB business (since November 2004 ), RMB cross-border trade-settlement business 
(since December 2009), investment in China's interbank bond market (since August 2010), and 
investment in RMB bonds issued in Hong Kong  SAR (since January 2011). The offshore RMB 
business has experienced exponential growth; th e total volume of RMB cross-border trade WT/TPR/S/281 • Macao, China 
 
- 29 - 
 
  settlements in the MSAR grew ten-fold in 2011.12 The development of RMB business has led to an 
increase in RMB deposits. At the end of April 2012, RMB deposits in the MSAR increased by 85.8% over the previous year, and accounted for 14.4% of total private-sector deposits with the local banking system (up from 9.4% over a year previously).
13 
2.38.  Regional cooperation, including CEPA, is helping to strengthen Macao SAR's position as a 
services platform, and for its enterprises to capture business opportunities in China, Macao SAR, and overseas. Macao SAR is also intensifying its role as a trade and services platform between 
China and Portuguese-speaking countries, through ec onomic and cultural cooperation, based on its 
historical ties with these countries. 
2.4.5  GSP treatment 2.39.  Some of Macao SAR's exports continue to benefit from preferential treatment under GSP 
schemes in Canada, the EU, and Switzerland (Table 2.4). Exports under the GSP are shrinking 
fast, and Macao SAR's exports of toys, footwear, and electronic products have stopped, as some are no longer produced in Macao SAR. 
Table 2.4 Exports under GSP treatment, 2007-11 
(US$) 
 2007  2008  2009  2010 2011 
Footwear 7,412,275 1,377,473 0 0 0 
EU 7,412,275 1,377,473 0 0 0 
Saddlery and harnesses 0 28,994 77,327 53,452 67,174 
Canada 0 28,994 66,943 43,597 67,174 
EU 0 0 10,384 9,855 0 
Other products (i.e., organic 
chemicals and gas masks) 406,107 635,640 324,348 585,044 501,254 
Canada 0 0 12,211 0 0 
EU 269,431 342,765 219,129 270,195 322,673 
Switzerland 136,677 292,875 93,008 314,850 178,581 
Total 7,818,383  2,042,106  401,675  638,496 568,428 
Canada 0 28,994 79,155 43,597 67,174 
EU 7,681,706 1,720,237 229,512 280,050 322,673 
Switzerland 136,677 292,875 93,008 314,850 178,581 
Source: Macao Economic Services (MES). 
2.5  Foreign investment regime 2.40.  Macao SAR is a small open economy, and the Government aims to develop and diversify its 
economy through attracting foreign investment. The major legislation related to foreign investment in Macao SAR includes the Commercial Code, the Commercial Registration Code, and 
the Foreign Trade Law. 
2.41.  There are no restrictions or controls on foreign direct investment or the use of foreign 
capital in existing or newly established companies. There are no exchange restrictions on capital 
flows and no exchange controls. Macao SAR offers the same conditions to foreign and local 
investors with respect to the opening of a new business. Foreign firms and individuals are free to establish companies, branches, and representative  offices without discrimination or unduly heavy 
regulation. There are no restrictions on the ownership of such establishments, and company 
directors are not required to be citizens of Macao SAR. However, the board of directors of locally 
incorporated banks should have a minimum of thr ee members, at least two of which must reside 
in Macao SAR; the authorities state that the reason for this is to have directors accountable for the 
running of their business. 
2.42.  Macao SAR maintains a low and simple tax regime, and there are a number of tax 
incentives, which are the same for foreign and local investors (Chapter 3). In addition, the "One 
Stop Service", set up by the Macao Trade and Investment Promotion Institute (IPIM), provides 
                                               
12 S p e e c h  b y  M r  A n s e l m o  T e n g ,  C h a i r m a n  o f  A M C M .  V i e w e d  a t :  http://www.amcm.gov. 
mo/cms_upload/general/press_release/pressrelease_enAttachment20120702181351.pdf  [03.10.12]. 
13 AMCM (2012b), p.43. WT/TPR/S/281 • Macao, China 
 
- 30 - 
 
  assistance to investors to establish a business in Macao SAR. IPIM's Macao Business Service 
Centre (MBSC) also provides free office space for up to four months , and other facilities to reduce 
start-up costs for enterprises. 
2.43.  Macao SAR has signed bilateral investment treaties (BITs), double taxation avoidance 
treaties (DTTs), and Tax Information Exchange Agreements (TIEAs) with several countries 
(Table 2.5). 
Table 2.5 BITs, DTTs and TIEAs 
Country/Region Type Date signed 
Portugal BIT 17/05/2000 
Netherland BIT 22/05/2008 
Belgium DTT 19/06/2006 
Cape Verde DTT 15/11/2010 
China DTT 
Protocol (DTT) 
Protocol (second) (DTT) 27/12/2003 
15/07/2009 
26/04/2011 
Mozambique DTT 
Protocol (DTT) 15/06/2007 
15/06/2007 
Portugal DTT 28/09/1999 
Australia TIEA 12/07/2011 
Denmark TIEA 29/04/2011 
Faroe Islands TIEA 29/04/2011 
Finland TIEA 29/04/2011 
Greenland TIEA 29/04/2011 
Iceland TIEA 29/04/2011 
India TIEA 03/01/2012 
Norway TIEA 29/04/2011 
Sweden TIEA 29/04/2011 
Jamaica TIEA 05/10/2012 
Source: Information provided by the authorities of Macao, China. 
2.44.  FDI inflow into Macao SAR, concentrated in the gaming industry (Chapter 1.4), has had a 
remarkable effect on the economy. FDI outflow has been low, and has been concentrated in Hong Kong SAR, China, and the British Virgin Islands. In  recent years, the Government has introduced a 
series of policies and measures to foster the deve lopment of regional economic cooperation, and a 
number of investment projects have been initia ted by Macao SAR enterprises in neighbouring 
regions, especially in China. Thus, further regional cooperation may increase FDI outflows from Macao SAR. If foreign investors take advantage of the opportunities provided under the CEPA and 
other regional cooperation initiatives to enter China's market, FDI inflows into Macao SAR will also 
increase. 
 WT/TPR/S/281 • Macao, China 
 
- 31 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Introduction 3.1.  Macao SAR remains one of the most open economies in the world. During the review period, 
Macao SAR revised its consumption taxes, amende d its Copyright and Related Rights Code, and 
introduced competition in certain sectors.  
3.2.  Masao SAR maintains few trade and investment restrictions. All applied tariffs are zero, with 
28% of tariff lines bound at zero. Customs declarations are processed within 4 minutes, and 
customs clearance procedures are completed within 20 minutes, under normal circumstances. 
Non-tariff border measures are few, and import licensing has been maintained for reasons of health, safety, environment, and administration of consumption tax. As in the previous Review, Macao SAR has no instrument protecting domestic producers from entry of dumped or subsidized 
products, and there is no legislation on safeguards. Export licensing for textiles and garments is no 
longer compulsory as the textile export quota regime has been abolished. 
3.3.  Macao SAR does not establish its own standards but adopts prevailing international standards 
and technical requirements. Foreign testing results are accepted as a useful reference for licensing 
purposes. Currently two products, automobiles and telecommunications equipment, are subject to compulsory standards. Motor vehicles and engine s whose emission do not meet EURO IV level 
have been banned from import since 15 January 2012. 
3.4.  Though the MSAR is not a contracting party, nor an observer to the Government Procurement 
Agreement, foreign presence in government proc urement increased markedly during the period 
under review. For procurement contracts signed centrally by the Financial Service Bureau, foreign 
suppliers accounted for 27% in 2011, up from 9% in 2007. 
3.5.  Administrative fees charged at the bord er remain low. There are no fees for customs 
clearance, import or export licences (except import licences for CITES species). SPS inspection 
fees for agricultural and food products were suspended in 2008. Fees for intellectual property 
rights administration remained low an d unchanged during the review period. 
3.6.  Macao SAR maintains a simple tax structure and low tax rates. The largest contributor to tax 
revenue, by far, is direct tax on gaming, wh ich accounted for 77% of total revenues in 2011. 
Macao SAR also offers tax incentives, including profit tax exemption/reduction to investors. In 2011, the forgone profit tax from the gaming sector was estimated at MOP 2,768 million, up from MOP 1,423 million in 2010. New purchases of envi ronment-friendly motor vehicles are exempted 
from motor vehicle taxes. 
3.7.  Non-tax incentives are also provided, mainly in the form of interest subsidies. Upon approval, 
bank loan interest subsidies are offered to all locally registered enterprises; and the SME Aid 
Scheme and the SME Credit Guarantee Scheme are available for SMEs with more than 50% capital 
held by MSAR residents. Support reached its pe ak around 2009-10, reflecting the Government's 
assistance to mitigate the effects of the global financial crisis. Support levels have also been 
raised, to cushion the adverse impact from soaring operation costs, pushed up by fast growth in 
the local economy and the dominance of the gaming sector. 
3.8.  A draft amendment to the Land Law was proposed to the Legislative Assembly in December 
2012. The amendment is intended to enhance transp arency in land allocation, and optimize land 
utilization. Land concession applications for gaming facilities will not be processed if they were 
submitted after the end of 2008. 
3.9.  Macao SAR amended its Copyright and Rela ted Rights Code in 2012, aimed at enhancing 
copyright protection in the digital environment. During the review period, invention patent 
applications declined, whereas extensions of invention patent rights granted by China's State Intellectual Property Office (SIPO) have been increasing steadily. The MSAR actively enforced IPRs 
during the review period, in particular through confiscation of infringing products such as compact 
discs, medicines, and cigarettes. WT/TPR/S/281 • Macao, China 
 
- 32 - 
 
  3.10.  Macao SAR still does not have a comprehensive competition policy, and relevant provisions 
are scattered about in different legislation and sect or-specific regulations and rules. The authorities 
consider the level of protection is adequate, given the small size of the territory and that most businesses are SMEs. A series of measures were adopted to introduce competition to the gaming, 
public utility, and telecoms sectors.  
3.2  Measures directly affecting imports 3.2.1  Customs procedures 
3.11.  In accordance with the Basic Law, Macao SAR retains its status as a free port. International 
trade is mainly regulated under the Macao Foreign Trade Law (Law No. 7/2003), and Administrative Regulation on Foreign Trade Activities (Administrative Regulation No. 28/2003) (Table A2.1). Since the previous Review in 2007, there has been no significant change to customs 
procedures.
1 The Macao Customs Service is responsible for implementing border measures, and 
the Civic and Municipal Affairs Bureau of Macao (IACM) is involved in SPS inspection at the border on an advance booking basis.
2  
3.12.  The Foreign Trade Law stipulates that all natural or legal persons who have met their tax 
obligations are eligible to carry out foreign trade activities. Goods with a value exceeding MOP 5,000, and goods with a value below this th reshold but that are part of a complete item 
whose value exceeds MOP 5,000, may enter Macao SAR after submitting a completed import 
declaration form to Customs, for customs clearance. Some commodities that are subject to licensing require prior import authorization from other competent agencies (section 3.2.5). 
3.13.  Goods with a value below MOP 5,000 may enter without a declaration form. Effective 1 April 
2012, the amount of tobacco products an individual  is allowed to bring into the MSAR was reduced 
by at least 50%.
3 
3.14.  Macao SAR is not a contracting party to the International Convention on the Harmonized 
Commodity Description and Coding System (H S Convention), but China has extended the 
application of the HS Convention to the MSAR since 1 January 2007.4 Macao SAR applies Version 5 
of the Nomenclature for Macao External Trade5, which is consistent with HS2012. Reflecting the 
adoption of this new nomenclature, the Import Ta ble and Export Table (for products subject to 
import and export licensing), and SPS Table (for goods subject to SPS inspection) were revised with effect from 1 January 2012.
6 
3.15.  Customs uses an Electronic Data Interchange (EDI) system, which allows electronic 
transmission of both the application for and the approval of licences, and lodging declarations. 
TEDMEV7, the service provider wholly owned by th e Government, handles all the electronic 
submission services on the EDI. Since May 2011, the Macao Customs Service has implemented a 
paperless clearance system. When traders or operators apply for a licence or lodge a declaration, 
the system automatically assigns a cargo-cleara nce number, which they use directly with the 
relevant customs house for cargo clearance. This system provides services for export licensing, 
import/export declaration, and re-export declaration. The authorities indicate that this paperless 
clearance system will shortly cover import licensing and transit documents. 
                                               
1 The Macao Customs Service online information. Viewed at: http://www.customs.gov. 
mo/en/index1.htm . 
2 For goods subject to SPS inspection, importers must apply to the IACM 24 hours prior to the arrival of 
the goods for inspection slots. SPS inspectors are on ly present at the border for the pre-booked slots. 
3 Macao SAR Chief Executive's Decision No. 45/2012, 12 March 2012. This is part of the implementation 
of Law No. 5/2011 (the Regime for the Prevention and Control of Tobacco). 
4 WCO online information. Viewed at: http://www.wcoomd.org/files/1.%20Public%20files/PDF 
andDocuments/HarmonizedSystem/HS%20Overview/Situation_HS20120601EN.pdf  [27.06.2012] 
5 Macao SAR Chief Executive's Decision No. 68/2011, 21 November 2011. For consumption tax 
collection, Version 4 of the Nomenclature continues to be applied till a future revision of the Consumption Tax Regulation. 
6 These three tables are reviewed periodically, and promulgated as annex to the Chief Executive's 
Decision.  
7 Transferência Electrónica de Dados - MACAU EDI VAN S.A. For detailed information see 
http://www.tedmev.com/english/index.php  [26.10.12] WT/TPR/S/281 • Macao, China 
 
- 33 - 
 
  3.16.  Importers may submit documents to the Customs and relevant licensing authorities in 
person or through a customs broker. The authorities indicate that there is no restriction on the operation of customs brokers in the MSAR, but their use is not common because the procedures are simple. 
3.17.  The Customs implements the ATA Carnet at  the border. China has extended application of 
the Customs Convention on the ATA Carnet for the Temporary Admission of Goods to the MSAR since 6 July 2005. The Macao Chamber of Commerce became the designated ATA document issuer 
and the guarantor for the security of tempor arily imported goods on 24 November 2009.
8  World 
Trade Centre Macao has been appointed as issuing association, under the guarantee of Macao Chamber of Commerce.  
3.18.  Macao SAR does not require pre-shipment inspection. 
3.2.2  Customs valuation and rules of origin 
3.2.2.1  Customs valuation 3.19.  Given that all applied tariff rates in Macao SAR are zero, customs valuation is used mainly to 
facilitate consumption tax collection at the border. Article 21 of the Consumption Tax Regulations 
stipulates that import valuation is based on the c.i.f. value of goods. Under Article 24, if Macao Economic Services (MES) is sceptical about the va lue declared, the importer will be notified to 
amend it within ten days. If the MES is doubtful about the re-declared value, the rules of the WTO 
Customs Valuation Agreement are applied. The authorities note that the Custom Valuation Agreement is rarely used as disputes are usually settled through negotiation. 
3.20.  In case of disagreement on a customs valuation, the party concerned may make an 
administrative appeal to a higher administrative au thority. If the first appeal is rejected, the party 
concerned may make a second appeal  to the Administrative Court. 
3.2.2.2  Rules of origin 
3.21.  Macao SAR does not apply any preferential or  non-preferential rules of origin on imports, 
and no certificate of origin is required for imports of goods. 
3.2.3  Tariffs 
3.22.  All applied MFN tariffs in Macao SAR are zero rated. 
3.23.  Macao SAR has bound 27.9% of its tariff lines (HS 2002 nomenclature); all bound lines are 
at zero. During the review peri od, Macao SAR notified the WTO that additional pharmaceutical 
products contained in Annexes I-IV were bound as a result of the expansion of product coverage in 
the Pharmaceutical Agreement.
9 
3.24.   The binding coverage varies according to sector10: 99.9% of agricultural lines are bound 
(98.7% of lines for oilseeds, fats, and oils, and 100% of the other lines); 16.9% of non-
agricultural lines are bound, within which 54.5% of tariff lines for leather, footwear, (34.3% for 
electrical machinery (as the MSAR bound all products covered in the Information Technology Agreement (ITA)), 27.5% for other manufacturing products, 26.8% for chemicals, 18.5% for 
wood, paper, etc., 12.8% for minerals and metals, 9.4% for non-electrical machinery, 2.6% for 
textiles, and 0.9% for clothing. Other products remain unbound. 
3.2.4  Other duties and charges (ODCs) 3.25.  Importers who use paper declaration form s pay MOP 3.0 per copy. If they use the EDI 
system for customs declarations, there is no fee; however, users need to pay a one-off price for 
                                               
8 Macao SAR Chief Executive Decision No. 441/2009, 23 November 2009. 
9 WTO document, G/MA/TAR/RS/228, 3 March 2011. 
10 WTO online information, "Tariff profile of Macao, China". Viewed at: http://stat.wto.org/ 
ariffProfile/WSDBTariffPFVie w.aspx?Language=E&Country=MO  [20.07.2012]. WT/TPR/S/281 • Macao, China 
 
- 34 - 
 
  the software, and annual or monthly subscription fees for the e-Customs/e-Form services provided 
by TEDMEV.11 The authorities state that there is no customs clearance fee.  
3.26.  Importers do not pay fees to obtain import licences, except for licences to import 
endangered species of animals and plants, which cost 0.5% of the c.i.f. value.12 
3.27.  Imports of tobacco products and alcoholic beverages with alcohol concentration of more 
than 30% are subject to consumption taxes levied on  their c.i.f. value, regardless of the origin of 
imports. The consumption taxes are applied equally to imports and locally produced goods. A 
motor vehicle tax is also levied on new motor vehicles (section 3.4.2.2.2). 
3.2.5  Import prohibitions, restrictions and licensing 3.28.  The basic framework for import prohibitions, restrictions and licensing has remained largely 
unchanged since the previous Review of MSAR, apart from the changes in import licensing 
resulting from revisions in consumption tax regulations. 
3.2.5.1  Import prohibitions 3.29.  The authorities state that Macao SAR imposes import prohibitions for reasons of public 
security, environment protection, and compliance with international obligations (Table 3.1). In 
addition to import prohibitions on SPS grounds (section 3.2.8.2), (Table 3.4), four types of products have been added to the prohibition list since 2007. 
Table 3.1 Import prohibitions in Macao, China 
Banned products Effective date Legislation Rationale 
Brand new automo bile vehicles 
and engines whose emission do not meet the EURO IV level 15 January 2012
a Administrative 
Regulation No. 1/2012  Pollution control and 
environmental reasons 
Pharmaceutical materials 
containing Sibutramina 31 January 2011 Chief Executive 
Decision No. 21/2011 Protection of human life 
and health 
Flueless gas water heaters 1 January 2011 Chief Executive 
Decision No. 361/2010 Protection of human life 
and health 
Motorcycles equipped with two-
stroke engine 1 March 2008 Administrative 
Regulation 
No. 1/2008 Pollution control and 
environmental reasons 
BSE-related products 26 December 2007 Chief Executive 
Decision 
No. 341/2007 Protection of human life 
and health 
Used motor vehicles and engines 19 October 1998 Government Decision 
No. 219/98/M Pollution control and 
environmental reasons 
Ozone-depleting substances from non-Montreal Protocol parties 3 February 1996 Decree-Law 
No. 62/95/M Compliance with 
international obligations 
a Brand new automobile vehi cles with a gas emission below the EU RO IV standard that were ordered 
or imported prior to the effective date must be registered no later than August 2013. 
Source: Information provided by the authorities of Macao, China. 
3.2.5.2  Import licensing 
3.30.  Import licensing in Macao SAR is applied mainly for reasons of health, safety, environmental 
protection, public security, and administration of consumption tax collection (Table 3.2). Since its last Review, Macao SAR's Import Table, which lists all imports subject to import licensing, has been amended three times to reflect the new version of the nomenclature, and changes in 
consumption tax exemption criteria (section 3.4. 2.2.2). Since August 2008, fuel and lubricants, 
and beverages with an alcohol content of less than 30% (e.g. beer and grape wines) have been 
                                               
11 The e-Customs services relate to customs cleara nce documents and the e-Form services relate to 
other administrative documents, such as licences and SPS documents. The service subscription is paid to 
TEDMEV. 
12 WTO document G/LIC/N/3/MAC/14, 7 October 2011. WT/TPR/S/281 • Macao, China 
 
- 35 - 
 
  exempted from consumption tax; for this reason, importers of these products no longer need to 
obtain a licence. 
Table 3.2 Import licensing regime, 2012 
Goods Licensing authority Rationale 
Live animals; meat; animal 
products; fish, crustaceans, and molluscs; vegetables; live plants; mushroom spawn, and dairy products  IACM To protect public health, animal health, 
animal welfare, and prevent the introduction into and spread within the MSAR of destructive plant diseases and pests 
Pharmaceutical products and 
medicines; modified milk; 
essential oils; dyes and 
chemicals Health Bureau To safeguard public health; prevent 
diversion of narcotic drugs and 
psychotropic substances into illicit 
markets 
Beverages with alcohol content ≥ 30%; tobacco products MES To facilitate collection of consumption 
tax 
Motor vehicles MES; prior approval from 
Transport Bureau To facilitate collection of motor vehicle 
tax 
Optical discs manufacturing equipment and raw materials MES To enforce control over the flow of 
optical disc manufacturing equipment and raw materials so as to prevent copyright-infringi ng activities 
Narcotic drugs and 
psychotropic substances MES To control the illicit traffic of narcotic 
drugs and psychotropic substances as 
stipulated under the UN Convention 
against Illicit Traffic in Narcotic Drugs 
and Psychotropic Substances 
Telecom and radiocom 
apparatus Bureau of Telecommunications 
Regulation To ensure imported  products meet 
certain standards  
Ozone-depleting substances 
originating in contracting 
parties to the Montreal Protocol MES; advance comments from 
the Environmental Protection 
Bureau To comply with the obligations set out 
in the Montreal Protocol 
Specimens of endangered species of animals and plants MES; prior opinions from IACM 
for species of animals and plants listed in CITES; prior opinions from the Health Bureau for medicines comprising ingredients of species listed in CITES To ensure survival of endangered 
species of wild an imals and plants 
Arms and ammunitions;  parts 
and accessories thereof Macao Security Policy To control arms and ammunitions 
Source: WTO document G/LIC/N/3/MAC/15, 19 October 2012. 
3.31.  Import licences are granted, in general, wi thin three working days if "ordinary" criteria are 
met; if refused, the reasons for refusal must be given to the applicants who have the right to appeal. Licences for importation of endangered spec ies of animals and plants require at least three 
working days. For importation of motor vehicles, specimens listed in CITES, and ozone-depleting 
substances, prior comments/approval from relevant authorities must be sought before submitting applications to the MES for import licences. Import licences are valid for 30 days from issuance, 
and may not be extended. Import licences are not transferable among importers.
13 
3.2.5.3  Other restrictions 3.32.  The importation of hydrochlorofluorocarbons (HCFCs) has been subject to import quota 
since 1995; the quota is being progressively reduced on a five-yearly basis; its importation is to be 
prohibited in 2030. 
3.2.6  Contingency measures 3.33.  Macao SAR does not have an authority competent to initiate or conduct investigations on 
anti-dumping or countervailing measures. The authorities notified the WTO that MSAR has taken 
                                               
13 Regarding the importation of arms and ammunitions, application of import licences must be submitted 
one month in advance, and the licences granted are valid for 12 months. WT/TPR/S/281 • Macao, China 
 
- 36 - 
 
  no anti-dumping or countervailing actions so far, and does not anticipate taking any for the 
foreseeable future.14 
3.34.  Macao SAR does not have legislation or an institutional framework on safeguards, and no 
safeguard measure has been adopted. 
3.2.7  State trading 
3.35.  According to the authorities, Macao SAR do es not maintain any state-trading enterprises in 
accordance with the working definition containe d in Paragraph 1 of the Understanding on the 
Interpretation of Article XVII of the GATT.15 
3.2.8  Standards and other technical requirements 3.2.8.1  Standards and technical requirements 3.36.  Macao SAR has no official institution for standards, and has no comprehensive legislation in 
this area. The MSAR has not developed its own standards, adopting international or overseas 
standards, where appropriate. The MES is the enquiry point for the WTO.  
3.37.  Macao SAR has adopted international standards (compulsory) for radio-telecommunication 
equipment. The authorities note that technical standards applied to telecommunication equipment 
are based on parameters recommended by the ITU, and telecom equipment needs to comply with international standards to be used in Macao SAR. Radio communication equipment, such as 
conventional radio telephones and pagers must pass type-approval tests.
16 Approvals of 
equipment from other jurisdictions may be used as a reference. Type-approval certificates are issued by the Bureau of Telecommunications Re gulations (DSRT). At present, there are two 
technical standards for type-approval tests, whic h are mainly derived from ETSI standards.  
3.38.  In accordance with Administrative Regulations No. 1/2012 and No. 1/2008, Macao SAR 
applies overseas standards (compulsory) for automobile vehicles (including motor cycles). The standards for automobile vehicles are based on those implemented in the United States, the EU, 
Japan, and China.
17  
3.39.  Importation of telecommunication equipment and automobile vehicles is subject to 
licensing, to ensure the technical standards are me t. Test results and certificates issued by the 
manufacturers or other authorities are accepted as a useful reference for licensing purposes. 
Macao SAR does not apply compulsory standards for other products. 
3.40.  Macao SAR does not have an overall conformity assessment structure for standardization, 
accreditation or certification. The MSAR does not participate in international agreements or 
arrangements (including MRAs) in the area of standards, testing, and certification. The authorities 
note that the trend for local enterprises to adopt a voluntary management system of certifications, such as ISO 9001 and ISO 14001, continues to grow. The services sector, the 
engineering/construction sector, and public utilities are the top three sectors for enterprises using 
ISO management system certifications. The Maca o Productivity & Technology Transfer Centre 
(CPTTM) is the ISO correspondent member. 
3.41.  Macao SAR does not have a laboratory accreditation scheme, or a government-supported 
organization providing accreditation to laboratories or certification bodies. A laboratory in the MSAR that seeks accreditation, must call on accreditation bodies from abroad. The authorities state that choices of accreditation bodies are private decisions by individual laboratories, based on 
considerations including the background of the laboratory, the cost, the geographical proximity, 
the types of accreditation schemes offered, as we ll as whether the accreditation body from abroad 
is willing to provide service to a laboratory in  the MSAR. As of end-December 2011, there were 
eight foreign-accredited laboratories in the MSAR (Table 3.3). 
                                               
14 WTO documents G/ADP/N/193/MAC, and G/SCM/N/202/MAC, 9 February 2010. 
15 WTO document G/STR/N/14/MAC, 11 April 2012. 
16 Provisions in Decree-Law No. 48/86/M. Viewed at: http: //images.io.gov.mo/bo/i/86/44/dl-48-86-
cn.pdf 
17 Annex I and II to the Administrative Regulations No. 1/2012 and No. 1/2008. WT/TPR/S/281 • Macao, China 
 
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  Table 3.3 Accredited laboratories in Macao, China, December 2011 
Name Nature Accredited by Scope 
Macau Cement 
Manufacturing Co. Ltd. Company-owned HKAS 
(Hong Kong, China) Construction materials – cement 
(chemical analysis) 
LECM Civil Engineering 
Laboratory of Macau  Government-related IPAC (Portugal) Calibration of instruments for the 
measurement of mass, force,and 
length 
CNAS (China) Concrete testing, a ggregates, soil test 
and rock test, pile test, foundation 
monitoring, flat glass, steel bars, 
metallic materials, cement 
The Macao Water Supply 
Co. Ltd. - Analysis Division, Laboratory & Research Company-owned CNAS (China) Drin king water and source water 
Civic and Municipal Affairs 
Bureau - Laboratory Government lab CNAS (China) Food and water (microbiological and 
chemical test) 
Health Bureau – Public 
Health Laboratory Government lab CNAS (China) Clinic al specimen, food, vegetables, 
cosmetics, drugs, water and waste water, sediment 
Labour Affairs Bureau – 
Occupational Hygiene 
Laboratory Government lab CNAS (China) Workplace hygiene analysis (volatile 
organic compounds, noise, lux, indoor 
air quality, wet bulb globe 
temperature index) 
Macau Institute for Applied Research in Medicine and Health – Chinese Medicines and Food Safety Laboratory University-related  NATA (Australia) Biological and chemical testing 
University Hospital – Clinical 
Laboratory University-related  NATA (Australia) Chemical pathology  
Source: Information provided by the authorities of Macao, China.  
3.42.  The regulatory framework for marking, la belling, and packaging is largely unchanged since 
2007. Food labelling is regulated under the Decree Law 50/92/M, and its successive amendments, Decree Law 56/94/M, and Administrative Regulation 7/2004. On 12 January 2010, Macao SAR 
published a list of generic food additive names that are used for labelling.
18 All these laws, rules, 
and regulations aim to ensure consumers acquire proper information on products, including the nature, ingredients, expiry date, and conditions of storage and use, so as to protect the health of 
consumers and prevent any unfair or frau dulent competition in the market.  
3.43.  Technical Instructions No. 3/2005 and No. 4/2005 of the Macao Health Bureau regulate the 
packaging and labelling of medicines and traditional Chinese medicines. These rules remain unchanged since promulgation. All pharmaceutical products (including traditional Chinese 
medicines) that enter the MSAR must be approved  by the Health Bureau, and must be labelled in 
Chinese, Portuguese, or English.
19  
3.44.  The authorities note that there are no eco-la belling initiatives, or labelling requirements on 
GMOs. 
3.2.8.2  Sanitary and phytosanitary requirements 3.45.  Administrative Regulation No. 40/2004 regulates SPS-related matters in Macao SAR. The 
Civic and Municipal Affairs Bureau of Macao (IACM) is responsible for formulating and 
implementing SPS regulations and measures, an d is also the SPS enquiry point for the WTO.
20  
3.46.  Goods subject to SPS inspection are listed in an SPS table, which is reviewed periodically. 
The SPS table was most recently amended on 1 January 201221, mainly to reflect the adoption of a 
new HS nomenclature. 
                                               
18 Macao SAR Chief Executive Decision No. 556/2009, 11 January 2010. 
19 If the labels of pharmaceutical products are in another language, importers must label the products in 
a required language by stickers on outer packing and insertion of instruction inside the package. The 
translation must be authorized by the manufa cturer and approved by the Health Bureau. 
20 IACM online information. Viewed at: http://www.iacm.gov.mo/e/default/  [31.10.12]. WT/TPR/S/281 • Macao, China 
 
- 38 - 
 
  3.47.  Importers of goods listed in the SPS table must apply to the IACM for SPS inspection at 
least one working day prior to the arrival of goods at the border. Applications may be submitted in person or on the e-Form system of the IACM. The IACM checks SPS documentation, and the IACM laboratory or its subcontracted laboratories may conduct random laboratory samplings of imported 
goods at the border. Importers of species of animals and plants listed in the CITES must obtain 
import licences from the MES (Table 3.2) be fore booking SPS inspections with the IACM. 
3.48.  Importers of goods subject to SPS inspections must pay inspection fees.
22 In response to 
the global hike in food prices, fees for SPS inspections of vegetables, meat and poultry (including 
eggs), fish (including crustaceans and molluscs), and live animals for human consumption have been suspended since 1 January 2008.
23 The authorities state that the suspension of SPS 
inspection fees is subject to annual review. Currently, importers of plants (including seeds), and of 
live animals are required to pay an SPS inspection fee.24 
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. 
Table 3.4 Active SPS measures in Macao, China, 2012 
Products Effective date Reference 
BSE-related products 31 December 2007 Chief Executive Decision No. 341/2007 
Masked palm civet and related products 2 February 2004 Chief Executive Decision No. 8/2004 
Poultry products from avian-flu-affected 
Asian countries 29 January 2004 Chief Executive Decision No. 7/2004 
Source: Information provided by the authorities of Macao, China. 
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 Law 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. 
3.51.  Plant importers must produce valid phytosanitary certificates (Plant Quarantine Certificate) 
to the authorities. The authorities indicate that control measures for pests and diseases follow China's AQSIQ Catalogue of Quarantine of Imported Organism Contaminated with Pest and 
Disease. Under the CEPA, Macao SAR signed two cooperation agreements with China concerning 
SPS issues: the Cooperation Arrangement on Inspection, Quarantines, and Food Safety in 2004; and the Cooperation Arrangement on Inspections and Quarantines in 2010.  
3.2.9  Government procurement 
3.52.  Macao SAR is not a signatory to the WTO Government Procurement Agreement (GPA), nor 
an observer. The authorities indicate that procur ement procedures and disciplines are "virtually 
consistent with the international standards".
25 In 2011, total expenditure on government 
procurement accounted for 5.7% of GDP (Table 3.5). 
                                                                                                                                               
21 Annex II and Annex III of the Macao SAR Chief Executive Decision No. 452/2011, 3 January 2012. 
22 The SPS inspection fees are stipulated in Macao SAR Chief Executive Decision No. 268/2003, 
1 December 2003. 
23 Macao SAR Chief Executive Decision No. 106/2008, 5 May 2008. 
24 Fees are listed in Article 93 and 98 of the Table o f  R at e s ,  Ta r i f f s  an d P r i c e s  o f  I A CM .  Vi e w e d  a t :  
http://images.io.gov.mo/bo/i/2003/48/despce-268-2003.pdf  (in Chinese and Portuguese) [30.10.12]. 
25 Regarding public construction projects, Macao SAR has revised the rules related to periods and 
foreign bidders, eliminated the mandatory requirements on submitting documents and tender proposals written 
in Portuguese and preference for do mestic products, and modified the pr ovisions of publicity of tenders 
(Preamble of Decree-Law No. 74/99/M). WT/TPR/S/281 • Macao, China 
 
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  Table 3.5 Government procurement, 2007-11 
(MOP million) 
 2007  2008  2009  2010 2011  
GDP at current prices 1,451 166,265.1 170,171.1 226,940.5 295,535.3 
Total expenditure on 
government procurement 7,379.2 7,846.4 9,569 11,505.6 16,991 
Investment 3,757 3,291.2 4,143.8 5,386.4 9,352.2 
Investment and 
Development Plan (PIDDA) 3,446 2,972 3,816.8 4,978.4 8,943.2 
Other 311 319.1 327 408 409.1 
Total goods and services 3,622.2 4,555.2 5,425.1 6,119.1 7,338.8 
% of total government 
procurement to GDP 5.08 4.72 5.62 5.09 5.71  
Source: Information provided by the authorities of Macao, China. 
3.53.  The legislative and regulatory framework for government procurement remains largely 
unchanged since the previous Review of MSAR. Government procurement is regulated in 
accordance with the Decree-Law No. 122/84/M (legal system of expenditure on government procurement related to goods, services and pub lic works, amended by Decree-Law No. 30/89/M), 
No. 63/85/M (on the purchase procedures of goods and services), and No. 74/99/M (on the 
purchase procedures of public works). The auth orities indicate that all these laws are under 
review. Macao SAR's Commission Against Corruption ( CCAC) also issued the Guidelines on Public 
Procurement and Acquisition of Goods and Services  in December 2003. The Guidelines must be 
complied with in all public procurement, regardless of the method of procurement.  
3.54.  As stipulated in Decree-Law No. 122/84/M, public procurement of goods, services, and 
public works must be carried out through tender (open tender or selective tender) or direct 
negotiation (written consultation, verbal consultation or exempted consultation). The general 
system for tenders is similar to that in standard international procedures; it consists of tender offer, collection, opening, evaluation of bidders' qualifications, evaluation of proposals, awarding 
contract, contracting, execution and monitoring. Public tenders are usually compulsory for public 
works contracts exceeding MOP 2.5 million and purchases of goods and services exceeding MOP 750,000. There may be exceptions; for example, contracts may be awarded through direct negotiations where at least three bidders must be consulted and no open tender is required.
26 In 
addition, the Chief Executive may determine that contracts be awarded through selective tender 
when a contract exceeds MOP 15 million for pu blic works and MOP 7.5 million for goods and 
services, provided there is technical complexity, or  when there is not enough time to undertake an 
open tendering procedure. Data on the share of open tendering in public procurement contracts 
are not available. 
3.55.  As delegated by the Chief Executive of Macao SAR, Government Secretaries may award 
public procurement contracts below certain thresholds. Procurement contracts above the 
thresholds must be submitted to the Chief Execut ive for approval. The authorities indicate that, 
reflecting the economic development of Macao SAR, the Government increased the thresholds three-fold in May 2011
27: MOP 30 million for each tendering project (previously MOP 10 million); 
MOP 18 million for authorization of projects' expenditures (previously MOP 6 million); and 
MOP 9 million for contracts that are exempted from tendering (previously MOP 3 million). 
3.56.  The Financial Services Bureau centrally purchases, eight categories of common consumable 
goods28 through public tenders, for all non-autonomous government agencies of Macao SAR and a 
                                               
26 Exceptions apply when: one company has the exclusive supply rights; it is in the interests of Macao 
SAR, given the nature of the goods, services or public wo rks required, to award directly to a particular entity; 
the contract involves project studies,  technical consultancy or supervision of public works; there are security 
reasons; or in urgent and extr aordinary situations caused by force majeure . 
27 Executive Orders No. 120/2009, No. 121/2009, 122/2009, 123/2009 and 124/2009 amended 
respectively by Executive Orders No. 26/2011, 27/2011, 28/2011, 29/2011 and 30/2011. 
28 Vehicle parts and components; food; bottled drinking water; daily clea ning products; office stationary 
and photographic products; fuel; bu ilding maintenance materials; and environmentally friendly products. WT/TPR/S/281 • Macao, China 
 
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  number of financially autonomous entities.29 For those goods not in the eight categories, the 
procuring governmental entity must follow the corresponding procurement procedure based on the 
estimated value of the project. Regarding serv ices procurement, individual bodies of the 
Government may carry out their own procurement, pursuant to the needs of their functions and 
duties.  
3.57.  Procurement of foreign goods and services  (i.e. goods and services supplied from outside 
Macao SAR) exceeding MOP 500,000 requires approval  from the Chief Executive. In 2011, 27% of 
goods and services (excluding public works) centrally purchased by the Financial Services Bureau, 
in value terms, were supplied by foreign comp anies, up from 9% in 2007 (Table 3.6). These 
figures may under-represent the share of foreign suppliers in public procurement, as foreign 
companies registered with the Financial Services Bureau are considered as local companies 
(regardless of whether they are locally corporatized), and country of origin is not recorded. All 
government agencies without a notary officer are obliged to sign their contracts in the Notary Division within the Financial Services Bureau. For goods and services contracts below MOP 500,000 
or a contract duration less than half a year, and for public works/construction below MOP 
1,500,000 or a contract duration less than one year, agencies may draw up an agreement with the awarded supplier directly without passing through the Notary Division; these cases are not 
recorded and hence not reflected in the table. 
Table 3.6 Local and foreign participatio n in government procurement centrally 
purchased by the Financial Services Bureau, 2007-11 
 2007 2008 2009 2010 2011 
No. % No. % No. % No. % No. % 
Foreign 15 3 13  2 28 4 26 4 48 5  
Service provider 7 47 9 69 22 79 25 96 45 94 
Government work 2 13 0 0 0 0 0 0 0 0 
Buy and sella 0 0 0 0 0 0 0 0 0 0 
Public tenderb 0 0 0 0 0 0 0 0 0 0 
Acquisition 6 40 4 31 6 21 1 4 3 6 
Local 519 97 648  98 745 96 695 96 828 95  
Service provider 345 66 401 62 493 66 544 77 600 72 
Government work 63 12 58 9 116 16 52 9 98 12 
Buy and sella 1 0 0 0 1 0 0 0 3 0 
Public tenderb 56 11 103 16 72 10 73 10 79 10 
Acquisition 54 10 86 13 63 8 26 4 48 6 
Total 534 100 661  100 773 100 721 100 876 100  
Value distribution           
Foreign  8.8  3.7  10.9  6.8  26.6 
Local  91.2  96.3  89.1  93.2  73.4 
a The contract number shown in this item  is only for purchases of properties. 
b "Public tender" indicates only the eight categori es of common consumable goods centrally purchased 
by the Financial Services Bureau. 
Source: Information provided by the authorities of Macao, China. 
3.58.  Expenditure under the Investment and Development Plan (the PIDDA) is largely devoted to 
public sector construction. As infrastructure development is a major concern for the future 
development of the economy, more than half of government procurement was PIDDA-related in 2011 (Table 3.5). The authorities note that there is no restriction on foreign participation in 
construction procurement; similar to goods and services procurement, bidders that complete 
business and tax registrations with the competent authorities are considered as local bidders. The authorities also indicate that, among the co ntracts awarded for the LRT project in 2011, 
MOP 4.69 billion out of the total MOP 4.87 billio n were awarded to foreign bidders. The Land, 
Public Works and Transport Bureau (DSSOPT) is, in  general, responsible for the procurement of 
construction services; for very large projects (e.g. the new Hengqin Campus of University of Macao), the Office for the Development of Infrastructures takes over the responsibilities. 
                                               
29 There are three categories of agencies in the MSAR Government: non-autonomous agencies; agencies 
with administrative autonomy; and agen cies with administrative and financial autonomy. The Financial Services 
Bureau procures consumable goods fo r the first two categories. Agencies with administrative and financial 
autonomy may carry out their procurement independently or join the central procurement for consumable goods. WT/TPR/S/281 • Macao, China 
 
- 41 - 
 
  3.59.  In 2009, with a view to enhancing the efficiency and effectiveness of public works 
procurement, the DSSOPT established a centralized registry system 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.
30 Constructors also register and are then assigned to a 
group in accordance with an assessment conducted by the DSSOPT assessment committee.31 
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.  
3.60.  To promote transparency in public pr ocurement, announcements are published in the 
Official Gazette , in local newspapers in Chinese and Portuguese, and on relevant government 
websites of, inter alia , the Macao SAR Government portal ( www.gov.mo), the Printing Bureau, the 
Financial Services Bureau, and the DSSOPT. Tender documents on government websites are 
provided in Chinese, Portuguese, and/or English. The response period for bidders, whether local or 
overseas, after publication of a tender: varies from 15 to 180 days for goods and services; and 20 
to 90 days for public works. After contracts ar e awarded, tenders are posted on the Internet, 
allowing registered users of different governme ntal agencies access to information such as 
purchase price, brand name, supplier, and a picture of the product being supplied . 
3.3  Measures directly affecting exports 
3.3.1  Procedures and documentation 3.61.  All exports (except those requiring export lic ences) are subject only to export declarations 
to the Macao Customs Service for statistical purposes. Commodities with a total value of less than 
MOP 5,000 may be exempted. The export declaratio n may be submitted on the shipping day. At 
the border, the Customs Services is responsible for inspection and clearance; the IACM is also involved in quality supervision and quarantine inspection. 
3.62.   The MSAR's exports to China may benefit from certain facilitation measures under the 
CEPA. When local products are exported to China by container or truck, Macao Customs officers carry out clearance procedures (document verification and inspection) and seal the truck or 
container with an electronic pass lock. The inspection result is transmitted to China's Customs. 
These goods are then exempted from clearance and inspection by China's Customs.  
3.63.  Certificates of origin are used for expo rts under the GSP system (section 2.4.5) and the 
CEPA, as well as for exports to the United States and the European Union. Applications for 
certificates of origin must be submitted at le ast two days before shipping, and a fee for the 
certificate must be paid to the MES. Currently, the fee is MOP 70 per copy for Macao SAR origin, and MOP 200 per copy for foreign origin. The fees are used to fund organizations engaged in 
economic promotion activities or job skill training activities.
32 The authorities note that certificates 
of origin are not mandatory for shipments; exporters should apply for the certificates when the importing country so requires, regardless of the export licensing requirement. The MES issued 
10,602 certificates of origin in 2011, 37.9% of which were destined for the United States and 
29.7% for the European Union. 
3.64.  Since 1 July 2012, under the CEPA, 1,260 (Chinese) tariff lines of exports from Macao SAR 
may enter the mainland China market with zero rate tariffs, as long as certain rules of origin are 
fulfilled. The rules of origin under the CEPA ar e product specific. For example, 67.3% of these 
goods are subject to manufacturing or processing operations (e.g. textiles & clothing, jewellery, 
chemical & pharmaceutical products, pasta & bi scuits); 20.8% are subject to change in tariff 
headings (e.g. chemical products, some electronics, footwear, glass fibres, and beverages); 11.5% 
                                               
30 Public works are categorized by their nature and pr oject value into four types: building construction; 
geotechnical and mariti me hydraulic construction; urban infrastructur e construction; and air-conditioning, fire 
control, and electrical construction. Each type is furthe r categorized based on their construction value: Group A 
construction value exceeding MOP 2 million, Group B for MOP 0.5 million to MOP 2 million (inclusive), and Group C for less than MOP 0.5 million. 
31 The eligibility and grouping of each entry will be reviewed every year; their status changes in 
accordance with the result of this annual review. 
32 For information, see Article 6, Administrative Regulations on Certificates of Origins, Administration 
Regulations No. 29/2003, with effect on 22 September 2003. WT/TPR/S/281 • Macao, China 
 
- 42 - 
 
  are subject to manufacturing operations and value-added contents (e.g. clocks, watches, spectacle 
frames, and optical apparatus); and 0.4% are subject to manufacturing operations and changes in tariff headings (e.g. some pharmaceutical products, and some plastic articles). In accordance with 
the Supplementary II to the CEPA, the MES may submit a request-list of goods for zero tariffs to 
China twice a year.
33 After consultation on the rules of origin for the relevant goods, between 
China's Customs and the MES, the Chinese authorities grant zero tariffs by 1 July for goods on the list submitted by 1 March, and 1 January the following year for goods on the list submitted by 
1 September.  
3.3.2  Export prohibitions, restrictions and licensing 3.65.  Macao SAR does not ban on exports to any country, except to fulfil international obligations 
under UN resolutions. 
3.66.  No products are subject to export restrictio ns and controls, except those required for export 
licensing as specified in the Export Table. The Table was most recently revised on 1 January 2012, 
reflecting the adoption of new HS nomenclature.
34 Exporters of toxic chemicals, precursor 
substances, psychotropic substances; and of op tical discs, manufacturing equipment, and raw 
materials, among others, must apply for licences to the MES (Table 3.7). Textile and garment products exported to the United States, the Euro pean Union, Canada, Norway, and Turkey are also 
listed in the Export Table. However, the authorities note that applications for export licences for 
these products are at exporters' discretion for trade facilitation purposes rather than a prerequisite 
for export. The authorities also indicate that the Export Table will be updated accordingly. 
3.67.  For products subject to export licensing by the MES, exporters must obtain the licence 
before applying for a certificate of origin. To apply for a certificate of origin, exporters need to 
provide: export licence, completed document certifying the origin of the goods, and invoice. In general, export licences are granted at most three working days after application; two working 
days, at the most, are required for obtaining a certificate of origin after the issuance of an export 
licence. 
3.3.3  Export taxes, charges and levies 
3.68.  Macao SAR does not levy any export-related duties, taxes or charges. 
3.69.  Where goods subject to consumption taxes are exported (or re-exported) within six months 
from the import date, the importers are entitled to 95% rebate of the tax paid (section 3.4.2.2.2). 
Table 3.7 Export licensing  regime, January 2012 
Goods Licensing authority Rationales 
Toxic chemicals, precursor 
substances, and psychotropic substances Health Bureau/MES Control i llicit production, supply and 
consumption of narcotic drugs and psychotropic substances (the Health Bureau);  Control chemicals of 1988 UN Convention, (MES) 
Optical disc, manufacturing 
equipment and raw materials MES Control piracy of copyrighted materials 
Textile and garment products exported to the U.S., the EU, 
Canada, Norway, and Turkey MES At exporters discretion for trade facilitation 
purposes 
Specimen of endangered species of animals and plants  MES; prior opinions 
from IACM for species of animals and plants listed in CITES;  prior opinions from the Health Bureau for medicines comprising Ensure survival of endangered species of wild 
animals and plants 
                                               
33 From 1 January 2006, Macao manufacturers may submit lists of goods to the MES requesting zero 
tariffs. The MES verifies and certifies th ese requests, and submit a compiled li st of goods for zero tariffs to the 
Ministry of Commerce, China before 1 March and 1 September each year. 
34 Annex II, Macao SAR Chief Executive's Decision No. 452/2011, 28 December 2011. Viewed at: http: 
//images.io.gov.mo/bo/i/2012/01/despce-452-2011.pdf [in Chinese and Portuguese]. WT/TPR/S/281 • Macao, China 
 
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  Goods Licensing authority Rationales 
ingredients of species 
listed in CITES  
Ozone-depleting substances 
originating in contracting parties 
to the Montreal Protocol MES; advance 
comments from the 
Environmental 
Protection Bureau Comply with the obligations set out in the 
Montreal Protocol 
 
Arms and ammunitions; parts and accessories thereof Macao Security Police Control arms and ammunitions 
Source: Annex II, Macao SAR Chief Executive's Decision No. 452/2011, and information provided by the 
authorities of Macao, China. 
3.3.4  Export support and facilitation 
3.70.  The authorities note that Macao SAR does not provide export subsidies. It does not operate 
any export finance schemes (including concessional export credits), or any export insurance and 
guarantee schemes. 
3.71.  Macao SAR has not established special economic zones, export processing zones, or free 
trade zones. Business in the Macao Zone of the Zhuhai-Macao Cross-border Industrial Park is regulated the same way as in the Macao SAR territory. 
3.72.  The Macao Trade & Investment Promotion Institute (IPIM) is a non-profit organization 
mandated to promote trade and attract foreign investment.  It provides trade, economic, and statistical information on various markets, and helps exporters participate in international fairs. In 
addition, it operates an Export Diversification Incentive programme, which covers the costs for 
exporters to attend trade promotion events.
35 The IPIM organizes a number of exhibitions to 
promote Macao products, facilitate business-matching contacts, exchange information, and 
highlight Macao's role as an economic and trade platform between China and foreign countries, in 
particular Portuguese-speaking countries. Applicants are required to submit the certificate of origin or the respective trade mark registration issued by  MES to IPIM as a proof of "Made in Macao", or 
"Macao Brand" products, when applying for export  assistance provided by IPIM. In May 2011, the 
"Macao Ideas" initiative was launched to serve as a product display centre to promote Made in 
Macao, Macao Brand, and Macao Design products. 
3.4  Measures affecting production and trade 
3.4.1  Legal framework for businesses 
3.73.  The Commercial Code (Law No. 16/2009), and the Commercial Registration Code 
(Law No. 6/2012) comprise the main legislation establishing the legal framework for business in 
Macao SAR (Table A2.1). Both pieces of legislat ion were amended during the review period. The 
amendment of the Commercial Code entered into force on 9 October 2009, with the aim of enhancing the flexibility and transparency of co mmercial operations; and the amendment of the 
Commercial Registration Code entered into force on 22 July 2012, aiming to improve the security 
and accuracy of commercial registration data, and to establish an inter-agency data-sharing 
system. 
3.74.  There are no restrictions or controls on foreign direct investment, or the use of foreign 
capital in existing or newly established companies (section 2.5). Persons satisfying certain 
requirements
36 may register enterprises in the MSAR as individual entrepreneurs, commercial 
companies, or economic interest groupings.37 
                                               
35 IPIM online information. Viewed at: http://www.ipim.gov.mo/busi ness_macao_detail.php?tid 
=454&type_id=322  [02.07.2012]. 
36 Commercial Registrati on Code. Viewed at: http://images.io.gov.mo/bo/i/ 2012/17/lei-6-2012.pdf  [in 
Chinese and Portuguese, 06.11.12]. 
37 An economic interest grouping consists of two or  more companies without affecting their qualification 
of legal person, aiming at promoting and developing each  other's economic activities or simply improving the WT/TPR/S/281 • Macao, China 
 
- 44 - 
 
  3.75.  Businesses are registered with the Commercial and Movable Goods Registry under the Legal 
Affairs Bureau. Investors (local and foreign), except those investing in sectors requiring specific licenses, need only to complete company registration and file tax registration before operation.
38 
Investors in sectors requiring specific licences, for example, manufacturing, tourism and 
entertainment, civil construction, food and beverages, must acquire business licences from 
competent authorities before commencing operations. The Macao Trade & Investment Promotion Institute (IPIM) provides investors with "one-stop services", free of charge, to facilitate all related 
administrative procedures, including notarization, registrations, and licence applications. 
3.76.  IPIM also assists investors through the Investment Committee mechanism in following up 
necessary administrative procedures for implementing investment projects in the MSAR. The Investment Committee consists of representatives from 12 government departments, inter alia , 
IPIM, MES, IACM, DSSOPT, GMTO, Labour Affairs Bureau, Environmental Protection Bureau. The 
Committee serves as liaison for in vestment facilitation purpose. 
3.77.  According to the authorities, full national treatment is applied to enterprises irrespective of 
their ownership. The authorities also note that Macao SAR does not maintain any trade-related 
investment measures (including local-content requirements). 
3.4.2  Taxation and tax incentives 
3.4.2.1  Overview 
3.78.  In general, Macao SAR has a simple tax structure and low tax rates. The taxation structure 
relies heavily on direct taxes, in particular those derived from gaming, which account for more than two thirds of total revenues (Table 3.8). 
Table 3.8 Government account, 2007-11 
(MOP million) 
 2007  2008  2009  2010 2011a 
Total revenue 53,710  62,259  64,772  88,488 122,972  
of which: direct tax from gaming 29,341 39,564 41,870 65,004 94,112 
Other direct taxes 3,680 3,427 3,320 3,845 4,283 
Indirect taxes 2,059 1,883 1,491 2,202 3,342 
Property incomeb 7,253 2,764 3,539 2,092 3,662 
Total expenditure 23,346  30,443  33,477  38,394 45,593  
of which: capital expenditure 4,922 5,157 5,094 6,008 11,306 
Overall surplus 30,365  31,816  31,295  50,094 77,379  
a Figures for 2011 are provisional. 
b Property income includes a variety of government  revenue such as interest , dividends, rents, and 
premiums from land concessions. 
Source: Information provided by the authorities of Macao, China. 
3.79.  Since the previous Review, the rates of consumption tax have been revised twice, while 
other taxes have remained la rgely unchanged (Table 3.9). 
 
                                                                                                                                               
economic activities of their companies. The authoritie s note that there is currently no economic interest 
grouping registered in Macao SAR. 
38 Tax registration is handled by the Financial Service Bureau. WT/TPR/S/281 • Macao, China 
 
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  Table 3.9 Main types of taxation and related incentives 
Type of tax Main features of the tax Nature of incentives 
Direct taxes   
Profits tax Business revenue tax levied on the total revenue 
generated by industrial an d commercial businesses; 
revenue less than MOP 32,0 00 is exempted; for revenue 
in excess of MOP 300 000 there is a flat rate of 12%; for 
revenue below MOP 300,000 the rate ranges from 3% to 
12% May be reduced by 50% or 
exempted 
Salaries tax Levied at rates between 7% and 12% on working 
income: daily wage temporary workers, full-time employees or freelance workers must pay income tax if their annual income exceeds MOP 95,000. In the case of self-employed professionals, tax is based on declaration 
of income, then authorized by Commissioner for Salaries Tax Evaluation  
Business 
registration 
tax Levied on all individually and collectively operated 
industrial and commercial bu sinesses in the form of a 
business registration charge, involving a fixed annual tax 
that varies according to the nature of the business. The 
usual charge is MOP 300 and for commercial banks the 
tax is MOP 80,000 50% reduction fo r businesses 
located in the islands of Coloane 
and Taipa (except off-shore 
banking operations) 
Property tax A real estate tax is levied on the annual income from 
buildings in Macao, China. The rate is determined according to the rent at either 6% or 10% Property purchased and used for 
manufacturing is exempted from property tax; exemption is for 
five years on the Macao 
peninsula, and ten years on the two islands  
Gaming tax  The operators of all types of gaming activities, including 
casino gaming, horse racing, dog racing and lottery bets 
are liable to pay a certain percentage of their gross 
revenues in tax or pay tax according to other levy 
scales. 35% of gross casino gaming revenue must be 
paid in tax. Gaming tax is the major source of revenue 
for the SAR Government  
Indirect taxes   
Consumption 
tax Levied on alcoholic beverages ( ≥30% alcohol content), 
and tobacco  
Motor 
vehicle tax  Levied on the taxable value of new vehicles, it covers 
automobiles, motorcycles and scooters and imported vehicles for the private use of the importer or marketing agents. The rates vary between 10% and 30% for motorcycles and scooters and between 30% and 55% in the case of automobiles. Vehicles intended for use in 
Macao's public services, tourism 
sector, and public transport, 
cargo, etc. are exempted from the tax 
Tourism tax Levied at 5% on all services provided by hotels and 
similar establishments, health clubs, saunas, massage 
parlours, karaoke bars and holiday resorts Businesses such as guesthouses, 
hotels and restaurants are 
exempted  
Stamp duty The rate for transactions involving building units in the 
Macao peninsula and the two islands is 1 - 3%. A stamp duty of 5% is levied on gifts or personal chattels If certain conditions are met, all 
property transfers involving industrial use enjoy a reduction. In addition, charitable organizations and public administrative units are exempted 
Special 
stamp duty Any transfers of residential property ownership within 
two years since stamp duty liquidation date of the 
property are subject to the Special Stamp Duty The Special Stamp Duty is 
exempted for the spouse, parent 
or straight line relative and 
parent or 2nd degree of collateral 
relative 
Source: Information provided by the authorities of Macao, China. WT/TPR/S/281 • Macao, China 
 
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  3.4.2.2  Taxation 
3.4.2.2.1  Direct tax 3.80.  The rent received from granting a franchise is  considered a direct tax, and is by far the most 
important source of government revenue. In particular, operators of all types of gaming activities, 
including casino gaming, horse and dog racing, and lottery bets pay a certain percentage of their 
gross revenues in tax, or pay tax according to other levy scales. Most other direct taxes, notably those on profits and employment income, are levied at relatively low rates. This is important in 
making Macao SAR attractive to domestic and fore ign investors. The maximum profit tax is 12%. A 
12% flat rate of salary tax is applied to personal annual income above MOP 375,000. 
3.4.2.2.2  Indirect tax 3.81.  Indirect taxes include consumption tax, motor vehicle tax, tourism tax, and stamp duty. 
Consumption tax and motor vehicle tax are applied equally to domestically produced goods and 
imports. As few goods subject to these taxes are locally produced, imported products are the major sources of these taxes (Table 3.10). 
Table 3.10 Selected products subj ect to consumption taxes, 2007-11 
 2007 2008  2009  2010 2011  
Quantity of local production and imports ('000 kg) 
Beera      
local 52.7 32.5 .. .. .. 
import 16,603.9 16,488.4 13,901.5 13,994.1 14,468.1 
Rice winea      
local 16.7 4.4 .. .. .. 
import 1,467.6 1,443.8 1,351.9 1,310.1 1,439.7 
Tobacco      
local 1.1 1.0 0.8 0.8 0.8 
import 1,508.9 1,529.6 1,581.3 1,573.2 2,198.8 
Cigarettes (million pcs) 
local 74.9 86.2 90.9 9.5 46.4 
import 1,637.7 1,541.1 1,200.0 905.1 1,354.7 
Consumption taxes collection (MOP '000) 
Beer      
local 52.7 32.5 n.a. n.a. n.a. 
import 16,596.6 11,236.4 n.a. n.a. n.a. 
Rice wine      
local 1.7 0.4 n.a. n.a. n.a. 
import 2,078.8 1,426.2 n.a. n.a. n.a. 
Tobacco      
local 22.6 21.0 51.3 63.8 64.0 
import 8,571.5 7,114.8 26,260.7 20,064.7 50,227.6 
Cigarettes      
local 3,747 4,307.6 4,773.9 1,900.8 9,291.2 
import 77,017.1 72,284.3 102,361.6 132,778.0 229,972.5 
.. Not available. 
n.a. Not applicable. a Statistics on production quantities for beer and rice wine in 2007 and 2008 covered only local 
consumption quantities of local production. The local factories were obliged to report to the 
authorities the quantities of their products being locally consumed for taxation purpose. As the consumption tax on beer and rice wine was abolished/exempted from 2009, no statistics for production quantities are available. 
Source: Information provided by the authorities of Macao, China. 
3.82.  Since the previous Review of Macao SAR, there have been some changes to consumption 
taxes. Consumption taxes on fuel and lubricants, and on beverages with an alcohol content of less than 30% (for example red wines) were abolished on 26 August 2008.
39 The authorities indicate 
that this was to mitigate the effect of soaring oi l prices on the costs of business, transportation, 
                                               
39 Law No. 8/2008, entered into force on 15 August 2008. WT/TPR/S/281 • Macao, China 
 
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  fisheries, and other industries, and to provide assistance in boosting the development of the 
tourism and wine-trading industries. Wines, especial ly Portuguese wines, were once the key import 
into Macao SAR. However, as the tourism and recreation industry related to the gaming sector has increased substantially, the number of tourists has soared, thereby increasing demand. Imports of 
wines have been increasing and the market has become more international, not just confined to 
Portuguese wines.  
3.83.  During the review period, consumption tax on tobacco products has increased twice: 
MOP 4,442 per kg for cigars (up from MOP 280 in 2009, and MOP 70 before 2009); MOP 0.5 per 
unit for cigarettes (up from MOP 0.2 in 2009, and MOP 0.05 before 2009); and MOP 200 per kg for processed tobacco leaves (up from MOP 80 in 2009, and MOP 20 before 2009).
40 The increases in 
tax rates on tobacco and cigarettes partially reflect the Government's aim to control public 
smoking. The tax on beverages with an alcohol content of not less than 30% (except rice wine)41 
remains unchanged, i.e. 10% on the c.i.f. value plus MOP 20 per litre. Thus, consumption tax is currently applied only on beverages with alco hol content of 30% and above, and on tobacco 
products.  
3.84.  The revised Regulation on Motor Vehicle Tax (Law No. 1/2012) entered into force on 
8 March 2012, providing tax exemption on environmentally friendly motor vehicles. Transactions of 
second-hand motor vehicles are not subject to motor vehicle tax. Motor vehicle tax is progressive, 
based on the taxable value of new motor vehicles. The authorities maintain that the practice of a higher tax rate being levied on more expensive new cars reflects vertical equity, i.e. "ability to pay". 
3.85.  Importers of goods subject to consumption tax and motor vehicle tax are required to obtain 
licences from the MES. The taxes must be paid be fore customs clearance. In the event of imported 
goods being re-exported within six months of importation, or used as intermediate inputs in 
exports, 95% of the paid consumption tax may be refunded to the importers (Table 3.11). 
Table 3.11 Consumption tax rebates on selected products, 2007-11 
('000 MOP) 
 2007  2008  2009 2010 2011  
Beverages with alcohol content not less than 30% 
(rice wine excepted) 929 6,215 3,502 8,380 8,312 
Cigars, cheroots and cigarillos 29 137 504 770 886 
Cigarettes 685 1,762 4,723 10 4,491 
Other manufactured tobacco and tobacco 
substitutes; "homogenized" or "reconstituted" 
tobacco 878 3,250 8,937 12,384 27,861 
Source: Information provided by the authorities of Macao, China. 
3.86.  A Special Stamp Duty on transfers of residential properties was introduced on 
14 June 2011, aimed at curbing speculation in the real estate market.42 With a few exemptions 
(Article 9 of the Law), any transfers of residential property ownership within two years of stamp 
duty liquidation date on the property are subj ect to the Special Stamp Duty. The Special Stamp 
Duty is degressive: if the ownership transfer occu rs within one year of the stamp duty liquidation 
on the property, the Special Stamp Duty is levied at 20% of the taxable value of the property; if 
the transfer occurs after one year, the Special Stamp Duty rate decreases to 10%.43 
3.4.2.3  Tax incentives, exemptions, and forgone revenues 3.87.  During the period under review, tax incentive measures have remained largely unchanged. 
Macao SAR offers full or partial exemption from tax for projects that benefit the territory's 
development (Table 3.9). Tax incentives are applied equally to foreign and local enterprises. 
                                               
40 Law No. 11/2011, entered into force on 20 December 2011. 
41 Rice wines are exempt from consumption tax as they are used as an important ingredient in cooking. 
42 Law No. 6/2011, entered into force on 14 June 2011. 
43 Article 3 of the Law No. 6/2011. WT/TPR/S/281 • Macao, China 
 
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  Overall, in 2011, MOP 3,257 million of revenues were forgone as a result of incentives 
(Table 3.12). 
3.88.  Exemption/reduction of profit tax is the most obvious tax incentive instrument granted to 
business. Among the forgone revenues from profit ta x, some 90% were attributed to incentives for 
gaming operators. The authorities note that MOP 2,768 million were forgone from profit tax on 
gaming in 2011 (up from MOP 1,422.7 million  in 2010, and MOP 972.6 million in 2007). This 
increment reflects the prosperity of the gaming sector in Macao SAR. 
3.89.  Under Law No. 1/86/M (amended by Decree-Law No. 35/93/M), Macao SAR offers full or 
partial tax exemptions to enterprises that enga ge in activities related to the manufacturing 
industry, particularly those that promote the dome stic industry's growth and development, with a 
special focus on enhancing productive efficiency and technology level, expanding the product mix, 
as well as improving other production activities. The tax incentives granted to the manufacturing 
sectors are in the form of exemptions or reductio ns of business registration tax, property tax, 
profit tax, and stamp duties for transfer of fixe d assets. Similar incentives are granted to tourism 
utility infrastructure for the purpose of promoting the development of the tourism sector (Decree-
Law No. 81/89/M).  
Table 3.12 Estimated tax revenues forgone, 2007-11 
(MOP million) 
Tax 2007  2008  2009  2010 2011  
Business registration tax 46.1 50.2 49.7 50.5 51.6 
Profits tax 986.6 994.5 1,290.1 1,511.3 2,867.1 
Property tax 109.1 323.9 339.1 349.7 268.6 
Stamp duty for transfer of fixed assets 2.7 76.7 62.8 82.4 65.9 
Consumption taxa 34.8 20.3 1.2 3.2 3.6 
Total 1,179.2  1,465.5  1,742.9  1,997.2 3,256.7  
a Diplomatic missions and consulates are exempt from the payment of the consumption tax. 
Source: Information provided by the authorities of Macao, China. 
3.90.  Offshore companies are also granted tax incentives; their managers and high-level 
specialists who have been granted resident permits may be exempted from salary tax for the first three years of employment. A company may enjoy full exemption from all forms of taxes on profits 
derived from offshore activities.  
3.4.3  Non-tax incentives an d other forms of assistance 
3.4.3.1  Non-tax incentives 
3.91.  A number of non-tax incentives are available, mainly in the form of support for investment 
projects through interest rate subsidies.  
3.92.  Macao SAR offers interest rate subsidies to all locally registered enterprises (except financial 
institutions/financial service providers or enterp rises operating under government concessionaire 
or sub-concessionaire regime) if they finance th eir economic activities through bank loans. In 
accordance with Administrative Regulation No. 10/2011 (amended the Administrative Regulation No. 16/2009), the scope of interest subsidy has been expanded from previously three categories.
44 
Newly added categories are: purchase of computer software for business or production process; 
purchase of energy-efficient equipment or materi al, or purchase of energy-management system 
and its related monitoring or analysing equipment;  purchase and installation of heating/cooling 
system operating on renewable energy; acquisition of intellectual property rights; and capital for 
signing commercial concession contracts (e.g. franchising contract).  
                                               
44 Until 9 June 2009, enterprises could apply for interest subsidies for: purchase or construction of 
industrial or commercial premises; expansion/renovation/adaptation of in dustrial premises; and purchase of 
equipment, machinery and ne w dedicated loads-vehicles. WT/TPR/S/281 • Macao, China 
 
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  3.93.  Under this scheme, eligible enterprises may apply for up to 4% interest rate subsidization45: 
for example, if the loan interest rate is 7%, the borrowing enterprise will only pay the difference, 
i.e. 3%. The scheme aims to encourage enterprises to engage in investment that is beneficial to domestic economic development, so as to achieve objectives such as diversification and 
modernization of economic activities; protecting the environment; introducing technological 
innovation and transformation; and modernizing the premises in terms of operation, safety and/or 
health conditions. In 2011, a total of MOP 205 million subsidized loans were granted to 
71 projects; most projects supported enterprises' investment to purchase premises and machinery 
for operation (Table 3.13). 
Table 3.13 Interest rate subsidy scheme in Macao, China, 2007-11 
Year No. of 
approvals Usage of approved interest subsid ized loan (number of projects) Granted 
subsidized 
loan 
amount 
(MOP) Purchase 
of 
premises Construction/expansion/  
renovation/refurbishment 
of facilities Purchase of 
equipment, 
machinery, and 
dedicated 
load-vehicles Othersa 
2007 7 1 3  4 0 119,803,738  
2008 11 3 2 7 0 157,854,733  
2009 48 24 12  19 4 163,643,903  
2010 79 35 19 34 5 190,430,443  
2011 71 30 14  35 8 204,590,909  
a Including purchase of computer software for business or production process; purchase of energy-
efficient equipment or material; purchase of ener gy management system and its related monitoring 
or analysing equipment; pu rchase and installation of heating/c ooling system operating on renewable 
energy; acquisition of intellectual property rights as  well as capital for signing commercial concession 
contracts or franchising contracts. 
Source: Information provided by the authorities of Macao, China. 
3.94.  In order to facilitate sustainable deve lopment of the local fishery industry, the MSAR 
operates a Fisheries Development and Support Fund offering interest-free loans to fishermen and 
owners of fishing vessels. The applicant must be a resident of the MSAR. The loan must be used 
for, inter alia , maintenance and repair of fishing facilities (including ships, fishing gear, freezers, 
and navigation equipment); participation in research and training activities for fishery 
technologies; or relief of difficulties caused  by natural disasters, epidemics, or fishery 
moratoriums. A loan amounting to MOP 9,302,000 was approved in 2011.46 The share of fisheries 
in the economy is negligible. According to the authorities, the MSAR does not maintain any 
domestic support as defined in Article VI of the Agreement on Agriculture.47 
3.4.3.2  Support to small and me dium-sized enterprises (SMEs) 
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 amended 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. 
3.96.  The SME Aid Scheme offers interest-free financial aid to help SMEs finance: purchase of 
equipment for operation; renovation, refurbishment, and expansion projects; capital for signing commercial concession or franchising contracts; and acquisition of exclusive rights for use of technology and intellectual property. Support has b e e n  p r o v i d e d  t o  h e l p  S M E s  t h a t  a r e  d i r e c t l y  
affected by natural disasters, epidemic diseases , or dramatic changes in the business environment 
that prompt operating expenditure hikes or affect operating conditions. From 3 February 2009, financial aid is also provided for SMEs' advertising and promotional activities; capacity enhancing 
activities; and/or the need for working capital, for example to deal with unforeseen increases in 
operating costs caused by adverse situations (Table 3.14).  
                                               
45 Eligibility is stipulated in the regulation, and includes: the entity has a tax file and has no outstanding 
liability, including deferred tax payment; the entity must fulfil its responsibility in  the Social Security Fund. 
46 WTO document G/SCM/N/220/MAC, 5 October 2011. 
47 WTO document G/AG/N/MAC/30, 27 March 2012. WT/TPR/S/281 • Macao, China 
 
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  3.97.  Partly reflecting the rapidly changing economic situation, the Government raised the upper 
loan limit twice during the review period, to assist  SMEs to reduce their operating costs, increase 
their disposable capital, and enhance their competitiveness. The maximum amount of financial aid per enterprise increased to MOP 600,000 on 27 March 2012, up from MOP 500,000 in 2009 and 
MOP 300,000 in 2006; and the maximum repayment period was extended to eight years, from six 
years in 2006, in the amended Administrative Regulation No. 2/2009 and No. 11/2012 (effective 27 March 2012). 
Table 3.14 Support to SMEs, Macao, China, 2007-11 
(Number and MOP million) 
 2007  2008  2009 2010 2011  
SME Aid Scheme  
Number of approvals 442 1,984 1,397 446 419 
Total amount of granted aid assistance 99.0 391.9 373.8 132.9 131.2 
SME Credit Guarantee Scheme  
No. of approvals 3 5 64 80 53 
Total amount of credit guarantee 1.3 5.0 116.4 147.1 90.3 
SME Credit Guarantee Scheme Designated for Special Projects  
No. of approvals 1 2 11 5 2 
Total amount of credit guarantee 1.0 1.5 10.3 3.6 2.0 
Source:  Information provided by the authorities of Macao, China. 
3.98.  Upon approval, the SME Credit Guarantee Scheme provides each SME with a credit 
guarantee equal to 70% (previously 50%) of the loan approved by participating banks48;  the 
maximum guarantee offered was increased to MOP 3.5 million (previously MOP 1.5 million) on 23 June 2009.
49 The maximum repayment period is five years from the date of signing the loan 
contract. The amount of credit guarantee provid ed excludes interest and any other expenses 
related to repayment of the loan, therefore, th e amount of guarantee is based only upon the 
principal of the loan. The purpose of this scheme is to assist SMEs with acquiring credit from banks 
for projects such as business model reform and transformation, promotion and publicity of the 
enterprise's brand, and improvement of product quality.50 Credit guarantees have increased 
significantly since 2008 (Table 3.14), in terms of  both application approvals and the amounts 
involved. 
3.99.  The SME Credit Guarantee Scheme Designated for Special Projects, unchanged since 2003, 
guarantees credit of up to 100% to assist SMEs  with financing special projects. The scheme also 
assists SMEs to acquire capital from banks to resolve short-term financial difficulties arising from 
extraordinary or unpredictable events beyond human control (particularly natural disasters or 
epidemics).51 The maximum guarantee offered to each beneficiary is MOP 1 million. In 2009, the 
MSAR provided about MOP 10 million credit guarantees to SMEs under this scheme. 
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 sells 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 development. 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.  
                                               
48 Currently 14 banks participate in this Scheme. 
49 Administrative Regulation No. 19/2009 amended Administrative Regulation No. 19/2003, with effect 
on 23 June 2009. 
50 Article 16(1) of the Administrative Regulation No. 19/2003. 
51 Article 16(2) of the Administrative Regulation No. 19/2003. WT/TPR/S/281 • Macao, China 
 
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  3.102.  Land may be leased "provisionally" for 25 years to investors for industrial or commercial 
purposes. Though there are no specific restrict ions and requirements in the Land Law on the 
investment amount for land concession, the minimum amount of investment must be specified in the land applications and the investment should be considered by the Government as beneficial to 
the development of Macao SAR. There are two stages of  land lease. The allocation of land lease is 
"provisional" during the first stage. The land leas e will become "definitive" on the condition that 
lessees satisfy the predefined terms and conditions during the provisional stage (up to 25 years). 
The "definitive" lease is valid for ten years, and may be renewed every ten years, indefinitely. 
When the Government grants a concession land lease to a natural/legal person, each lot of land conceded to the person may not exceed 20,000m
2 with a total area not exceeding 100,000m2.52 
3.103.  The Government no longer allocates land for applications for gaming facilities filed later 
than end 2008. Regarding the land concessions during the review period, five land lots were 
granted to the gaming sector; two for urban redevelopment plans; and three for natural gas suppliers. 
3.104.  The draft revision of the Land Law is inte nded to enhance transparency in land allocation. 
It is proposed that land lease allocations must go through public tendering, including investments in public utilities.
53 If an investment project meets public interest (such as projects implementing 
industrial diversification policies), it may be exempted from public tendering; however, advance 
public hearings must be conducted for these exempted projects.54 Public tendering may also be 
exempted for projects ensuring continuous public services. 
3.105.  Once a land lease contract is signed, the investor must pay an initial lump-sum premium 
payment, the calculation of which was revised, in 2007 and 2011, reflecting the development of 
the local real estate market.55 For the initial premium, a cash payment must be made of not less 
than one third of the total premium. In addition, an annual rent payment is required.  
3.106.  Stamp duties are exempted for, inter alia,  transactions of land-lease allocation. Lease 
renewal is subject to an additional payment by the lessee for a "special duty" amounting to ten 
times the annual rent payment. 
3.4.4  Competition policies and price controls 
3.107.  The regulatory framework for competition policies remains unchanged since the last 
Review of Macao SAR in 2007. There is no comprehensive law on competition policies. Relevant provisions are scattered throughout the Commercia l Code, and other sector-specific regulations 
and rules (Chapter 4). The authorities state that the existing provisions are deemed adequate and 
appropriate given the scale and scope of the lo cal economy (i.e. the economy is dominated by 
SMEs). 
3.108.  The Government periodically reviews its competition policy. During the period under 
review, the Government introduced competition in some public utilities, including bus services and the electricity market, as well as fixed-line telephony services (Chapter 4). 
3.109.  The authorities indicate that no products are subject to price controls or administered 
prices. In order to protect public interest, prices of public utilities, inter alia , water, electricity, 
telephone, postal charges, and taxi fares, are regulated or monitored by the Secretary for Transportation and Public Works. Price adjustments must be approved by the respective industrial 
regulators. There is no differentiation between user  groups or industries. In 2008, when aggressive 
market competition in the gaming sector led to  "unreasonable" price level for junkets, the 
Government set a cap on junket commissions (section 4.3.6). 
                                               
52 The land size limit on lease may be waived for projects based on the public interest, including the 
implementation of industrial diversification policies. See Article 34 of the Land Law. 
53 The allocation for public utility projects is called "s pecific" allocation, with initial period of lease for 
15 years and maximum size of 10,000 square meters. The lease may be renewed every five years, indefinitely.  
54 See Article 48 of the Land Law revision proposal. Viewed at: http://www.dssopt.g ov.mo/uploads/ 
wizdownload/201012/180_hwu5n.pdf  [in Chinese]. 
55 MSAR Chief Executive Decision No. 267/2007 and No. 328/2011. WT/TPR/S/281 • Macao, China 
 
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  3.4.5  Intellectual property rights 
3.4.5.1  Overview 3.110.  The Intellectual Property Department of the Macao Economic Services (MES) is responsible 
for implementing IPR legislation, and the Macao Customs Service is in charge, within the territory, 
of enforcing legislation and implementing punitive measures regarding IPR violations, combating 
counterfeiting, and promoting compliance with IP rights and regulations. 
3.111.  Relevant legislation covering IPR issues includes the Industrial Property Code, and the 
Copyright and Related Rights Code. An amendm ent to the Copyright and Related Rights Code
56 
entered into force on 1 June 2012, with the aim of  strengthening copyright protection in a digital 
environment. 
3.112.  The MSAR is not a contracting party to th e Convention Establishing the World Intellectual 
Property Organization (WIPO). The membership of international treaties administered by WIPO 
was extended to the MSAR through arrangements between China and WIPO (Table 3.15).57 
Table 3.15 Membership of international intell ectual property rights conventions, 2012 
Convention Status Date of effect 
Berne Convention for the Protecti on of Literary and Artistic Works  In force 12 August 1999 
Universal Copyright Convention In force 23 October 1999 
Paris Convention for the Protection of Industrial Property In force  12 August 1999 
Nice Agreement Concerning the International Classification of 
Products and Services for the Purp ose of the Registration of Marks In force  23 September 
1999 
WIPO Copyright Treaty Not extended  
WIPO Performances and Phonograms Treaty Not extended  
Source: Information provided by the authorities of Macao, China. 
3.113.  Administrative fees for industrial proper ty rights including registration, issuance of 
certificates, transfer of rights, and annual fees, remain unchanged since 2005.58 These fees are 
relatively low; the authorities state that, in particular, the fee for registration of trade marks was 
reduced by more than 85% in 2005. For example, it costs MOP 1,000 to register a trade mark and 
MOP 2,000 for its renewal every seven years.  Organizations for collective management of copyright and related rights
59 may register with the MES for a registration fee of MOP 500 
(unchanged since 4 April 2000).60 
3.114.  In accordance with the Industrial Property Code, right holders of patents (including 
registered industrial designs) have the exclusive ri ght to import products covered by the patent or 
registered industrial design, i.e. parallel imports are prohibited with respect to patented 
products.61 However, parallel imports of trade ma rked goods and copyrighted works are not 
prohibited. 
                                               
56 Law No. 5/2012 modified the Decree-Law No, 43/99/M regulating the protection of copyright and 
related rights. 
57 China agreed to take over Portugal's parent posi tion of WIPO membership extended to Macao SAR in 
1999 when sovereignty was handed over. Before that, membership of a number of international treaties in the intellectual property field was extended to Macao, Chin a through a formal extension of Portugal's membership. 
58 For details see the Chief Executive's Decision No. 57/2005. Viewed at: http://images.io.gov. 
mo/bo/i/2005/11/despce-57-2005.pdf  (in Chinese and Portuguese) [05.08.2012]. 
59 Organizations for collective management of copyri ght and related rights are organizations acting in 
the interest and on behalf of the owner of the right. They must be legal persons with headquarters in Macao 
SAR, and must be appointed by copyrigh t owners to administer the right licen sing, collect royalties, enforce the 
rights, and represents copyrigh t owners before the court. 
60 MSAR Chief Executive Decision No. 43/2000, 3 April 2000. 
61 Article 104(1) and 177(2), the Industrial Property Code. WT/TPR/S/281 • Macao, China 
 
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  3.4.5.2  Industrial property 
3.115.  The Industrial Property Code, enacted by  Decree-Law No. 97/99/M, entered into force on 
6 June 2000. The Code covers all intellectual property rights dependent upon registration, i.e. trade marks; patents (including invention patents and utility patents); topography maps of 
semiconductor products; industrial designs and models; and names and logos (emblems) of 
business establishments. The authorities indicate that the Industrial Property Code is being 
reviewed and amended.  
3.4.5.2.1  Patents 
3.116.  There are two types of patents in the MSAR: invention patents, and utility model patents. 
Invention patents are protected for 20 years, utility models for a maximum of 10 years.
62 
Industrial designs are protected for 25 years, maximum.63 
3.117.  Applications submitted to the MSAR for invention patents are required to go through 
substantive examination by an examination entity appointed by the MSAR authorities. The appointed examiner produces reports on applications. These reports serve as essential references 
for the MES to decide whether to grant patents in the MSAR. China's State Intellectual Property 
Office (SIPO) is the only substantive examiner for invention patent applications in the MSAR.
64 
3.118.  Holders of invention patents granted by SIPO and protected in China may request 
extension of their rights to the MSAR. Upon approv al by the MES, extended patents have the same 
legal rights as those granted by the MSAR author ities. The extended rights are counted from the 
date the MES granted the patents. Similarly, patent applicants, when applying to SIPO, are allowed to extend their application to the MSAR. 
3.119.  Utility model patents are also required to go through substantive examinations, i.e. by 
SIPO. However, utility model patent applications must file directly to the Macao Economic Services; utility model patents granted by/applie d to SIPO and protected in China may not be 
extended to Macao SAR. 
3.120.  During the review period, the number of patent applications in the MSAR fell, while the 
number of requests for extension of patent rights from Mainland China increased steadily 
(Table 3.16). Foreign IPRs, for instance, from the United States and Japan, topped the list of 
applications/extension requests. The MES stated that, under normal circumstances, it takes a maximum of two months to complete formality examinations (e.g. documentation check) for patent applications, and to process extension requests.
65 
Table 3.16 Patent administrati on in Macao, China, 2007-11 
 2007  2008  2009  2010 2011  
Patent applications 305  234 132 74 72  
Domestic 6 3 4 7 6 
Foreign 299 231 128 67 66 
  Invention 292 211 124 62 56 
  Domestic 1 3 1 4 4 
  Foreign 291 208 123 58 52 
  Utility model 13  23 8 12 16  
  Domestic 5 0 3 3 2 
  Foreign 8 23 5 9 14 
Design 74 111 105 71 157 
 Domestic 4 17 6 1 7 
                                               
62 Utility models are protected initially for six year s, and protection may be renewed twice with each 
renewal lasting two years (Article 121, the Industrial Property Code). 
63 Industrial designs are protected initially for five years, renewable for the same length of protection to 
a maximum of 25 years (Article 176, the Industrial Property Code).  
64 According to the Cooperation Agreement between the MES and China's State Intellectual Property 
Office (SIPO), SIPO was appointed as the substant ive examination entity on 24 January 2003 for patent 
submitted to the MSAR authorities. This Agreement was valid for five years, and was renewed in 2008 for 
another five years.  
65 MES online information Viewed at: http://www.economia.gov.mo/web/DSE/public?_nfpb=true&_ 
pageLabel=Ln_IP_ PP&locale=en_US  [03.08.12]. WT/TPR/S/281 • Macao, China 
 
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   2007  2008  2009  2010 2011  
 Foreign 70 94 99 70 150 
      
Patent granted 63 46 116 160 51 
 Domestic 0 0 1 0 2 
 Foreign 63 46 115 160 49 
Invention 63  46 113 156 45  
 Domestic 0 0 0 0 2 
 Foreign 63 46 113 156 43 
Utility model 0 0 3 4 6 
 Domestic 0 0 1 0 0 
 Foreign 0 0 2 4 6 
Design 74  55 76 109 64  
 Domestic 3 2 15 0 2 
 Foreign 71 53 61 109 62 
      
Patent extensions (invention) 99  107 141 150 145  
 Domestic 0 0 2 0 1 
 Foreign 99 107 139 150 144 
Source: Data provided by the authorities of Macao, China. 
3.121.  Macao SAR notified the WTO in 2009 that it accepted the Protocol Amending the TRIPS 
Agreement on compulsory licensing under Paragraph 6 of the Doha Declaration.66 The authorities 
reaffirmed that a compulsory licence for pharmaceutical products may be granted only in situations of national emergency or other circumstances of extreme urgency.  The Protocol would 
enter into force for the MSAR upon the acceptance of the Protocol by two thirds of WTO Members. 
The authorities indicate that the relevant TRIPS provisions on compulsory licensing will be added to the amendment to the Industrial Property  Code after review of the legislation.  
3.122.  No compulsory licences have been granted in the MSAR.  
3.4.5.2.2  Trade marks 
3.123.  During the review period, the number of  trade mark applications increased steadily. 
Foreign applications accounted for the majority of trade mark applications (Table 3.17). The 
authorities state that registration of trade marks usually takes about six to eight months. 
Table 3.17 Trade mark applications, 2007-11 
 2007 2008 2009 2010 2011 
New trade mark applications 7,200 7,678 6,130 6,754 8,590 
 Domestic 654 716 670 762 1,246 
 Foreign 6,546 6,962 5,460 5,992 7,344 
Trade marks granted 5,056 7,979 6,371 7,042 6,870 
 Domestic 392 667 466 796 821 
 Foreign 4,664 7,312 5,905 6,246 6,049 
Source: Data provided by the authorities of Macao, China. 
3.124.  Trade marks used in the MSAR must be in Chinese, Portuguese, English, or a combination 
of these languages. This language requirement is not applied to export goods or to trade marks with applicants not domiciled, headquartered or established in the MSAR. Trade marks are 
protected for seven years, and may be renewed for seven-year intervals, indefinitely. 
3.125.  Trade mark applications may be denied if the use of the mark may cause ambiguity of, or 
acquire illegitimate interest from, well-known marks. The decision to deny an application does not depend on whether such a mark is used for si milar products/services. To protect well-known 
trade marks, any interested party may raise an objection to the relevant application for 
registration within two months of the publicat ion of the trade mark application. Trade mark 
registration may still be annulled if it was granted in breach of the provision related to well-known 
trade mark protection, provided that the application of such a well-known trade mark had already 
been filed in the MSAR before or simultaneously with the annulment. 
                                               
66 WTO document WT/LET/645, 19 June 2009. WT/TPR/S/281 • Macao, China 
 
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  3.126.  Trade mark right holders may lose their rights if they acknowledged and tolerated the use 
of similar marks by a third party for three consecutive years. However, bad-faith registrations are not subject to the three-year exhaustion period. Registered trade marks are to be revoked if the mark is not "seriously" used continuously for three years.
67 
3.4.5.2.3  Other industrial property rights 
3.127.  Names and logos (emblems) of establishments are protected for ten years, renewable 
indefinitely. Multiple registrations of names and logos are not allowed for the same establishment 
(i.e. one establishment may have only one name and logo). 
3.128.  An application for registration of geographical indication (GIs) should be accompanied by 
the name of the product that will use the GI and the regulated conditions for the use of the GI, as well as the limit of the respective region. The pr ovisions relevant to the registration process of 
names and logos (emblems) of establishment are applicable to GIs. According to current 
legislation, the protection period for registered GIs is unlimited and renewal is not required. GIs 
are also protected by legislation governing fals e indications of origin, for example, under the 
provisions relevant to unfair competition in the Commercial Code, regardless of registration or 
whether the GI is part of a registered trade mark . As at end 2011, there had been no application 
for GIs in the MSAR. 
3.129.  Topographies of semi-conductor products are protected for ten years after registration or 
the first day of commercial utilization if the registration day is later than the commercial utilization day. Registration is not renewable. If the topography has been commercially utilized in any place for two years or more, the topography may not be  registered; if the topography has not been 
utilized, the topography may not be registered af ter 15 years since it was first coded (Article 139). 
As at end 2011, there had been no application fo r protection of topographies of semi-conductor 
products. 
3.130.  Trade secrets and know-how are protected under the provisions on unfair competition of 
the Commercial Code (Decree-Law No. 40/99/M); the relevant provisions have remained unchanged since the Law entered into effect in 1999. 
3.131.  Penalties for industrial property rights viol ations have not changed since the last Review of 
Macao SAR. For violation and illegal use of designations of origin or geographical indications, the maximum criminal penalties are a prison sentence of up to two years or a financial penalty ranging from 60 to 120 days of fine. A day of fine is a un it whose value is determined on a case-by-case 
basis at the discretion of the court, between MOP 50 and MOP 10,000. For the unlawful acts of 
counterfeiting, imitation, and illegal use of a trade mark, the maximum criminal penalties are a prison sentence of up to three years or a financial penalty ranging from 90 to 180 days of fine. 
3.4.5.3  Copyright and related rights 
3.132.  The newly amended Copyright and Related Rights Code entered into force on 1 June 2012. 
The authorities note that this amendment enhanced the protection of copyrights and related 
rights, in particular in the digital environment, and increased the criminal penalties on violations. 
For example, additional rights are introduced incl uding the right of public transmission by wireless 
communication or wire-telecommunication. Criminal sanctions against unauthorized communication through public computer networks for business profit of copyrighted works to the 
public are also introduced.  
3.133.  The Copyright and Related Rights Code covers any originally creative works, inter alia , 
literary, graphics, computer programs, musi c, performance, audiovisual creations, 
radio-transmitted programmes, and architect designs (Article 2). The recognition of copyright is 
independent of registration, deposit or any other formality. Protection of copyrights and related 
rights in the MSAR is granted to works first published in the MSAR, or by MSAR residents, or by 
residents of Members of the WTO and of  the Universal Copyright Convention.  
                                               
67 A registered trade mark is considered to be seriousl y used when it is used by the right holder, his/her 
registered licensees, or by a third party under the su pervision of the right holder and for the purpose of 
maintaining the registration. WT/TPR/S/281 • Macao, China 
 
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  3.134.  Works are protected for the life of the author plus 50 years 68; works whose authors are 
entities or anonymous are protected for 50 year s after publication. Regarding the works also 
protected by other jurisdictions, protection in the MSAR will not be longer than the period covered 
by its original protection jurisdiction; for works published in different jurisdictions, the jurisdiction 
providing the shortest protection period is considered as the original protection jurisdiction. For 
protection of unpublished works, the regime where the author regularly resides is considered as the original protection jurisdiction. 
3.135.  Computer programs are protected as copyrighted works. Audiovisual creations are 
protected for 50 years from publication, and show performances are considered similar to audiovisual creations. Radio-transmitted programme s are protected for 20 years after the end of 
the calendar year in which the programme was first broadcast. Art works are protected for 
25 years from their completion (Article 148). 
3.136.  The amendment of the Law specified that violations through Internet dissemination of 
copyrighted works without permission from right holders, irrespective of dissemination for 
commercial or non-commercial purposes, may incur criminal penalties, i.e. up to three years 
imprisonment or a maximum financial penalty of 360 days of fines (Article 210, 213). 
3.4.5.4  Enforcement 
3.137.  Intellectual property rights in Macao SAR are enforced by administrative action and judicial 
measures. The Macao Customs Service enforces IPR protection measures at the border and domestically. In addition to inspection and cont rol of trade in compact discs and trade marked 
goods at the border checkpoints, the Customs is  responsible for monitoring the manufacturing 
process for goods produced in the MSAR, as well as other industrial activities, and activities in the 
MSAR's industrial and commercial sites. It may act on complaints, or on its own initiative. Penalties are imposed according to IPR legislation, includ ing the Copyright and Related Rights Code, Decree-
Law No. 51/99/M (Commercial and Industrial Activi ties Related to Computer Program, Video and 
Phonogram), and Decree-Law No. 97/99/M (Industrial Property Code).  
3.138.  The Customs randomly inspects local optical-disc manufacturing factories and retail 
outlets. Importers of machinery and materials to manufacture optical-discs must obtain licences 
issued by the MES (section 3.2.5.2). All retail establishments selling optical media products must obtain prior authorization from the MES; all optical media products manufactured in the MSAR must bear a source identification code. The authorities note that there is currently only one factory 
in the MSAR producing blank optical discs. 
3.139.  It appears that the MSAR made signific ant improvements to protection of copyright 
materials and other industrial intellectual property, such as patents and trade marks, during the 
period under review (Table 3.18). The authorities indicate that the Customs' next focus is on 
piracy activities on the Internet. 
Table 3.18 Violations of intellectual an d industrial property rights, 2007-11 
 2007  2008  2009  2010 2011  
Prosecution cases 41  22 19 18 28  
Confiscation of infringing products 22,214  26,719  13,081  11,097 233,212  
Compact discs (pieces)  4,229 23 10,451 422 3,773 
Textiles (pieces)  2,726 1,118 159 7 280 
Leather products (pieces)  214 30 27 307 284 
Watches (pieces)  4,546 0 12 0 0 
Othera 10,499 25,548 2,432 10,361 228,875 
a Other includes a wide range of confiscated products  that vary during the review period.  For example 
218,641 medicines and tablets were confiscated in 2011 (accounted for 96% of others), and 8,140 units of cigarettes were confiscated in 2010 (accounted for 79% of others). 
Source: Data provided by the authorities of Macao, China. 
                                               
68 Collaborated works are protected until 50 years af ter the death of last author (Article 22). WT/TPR/S/281 • Macao, China 
 
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  3.140.  Remedies for intellectual property infringement in the MSAR may be administrative or 
judicial. Administrative protection is to prevent or stop the infringing activities. In the case of an infringement, the right holder may seek protection from the Macao Customs Service and other empowered entities. The principal measure for remedy of intellectual property infringement is 
judicial protection. In the case of a criminal infringement of intellectual property, the Macao 
Customs Service is the investigating entity, and the Public Prosecutions Office is responsible for bringing the case to court. In the case of civil infringement, the right holder may sue for civil 
compensation. 
 WT/TPR/S/281 • Macao, China 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Energy 4.1.  Macao SAR imports most of the energy it needs, mainly from Mainland China. Local facilities, 
such as the local power plants in Coloane Island and Macao peninsula, generate some electricity. 
The Office for the Development of the Energy Sector (GDSE), under the supervision of the 
Secretary for Transport and Public Works, was es tablished on 1 January 2005 in accordance with 
Executive Order No. 11/2005. Its objective is to coordinate activities related to the energy sector, 
and thus help to secure and ensure a stable, environmentally friendly, and economical energy 
supply; incorporate energy supplies into region al development; and strengthen power grid 
interconnections with China through regional cooperation. The Government also continues to promote the use of renewable energy, energy  conservation and emission reduction. 
4.1.1  Electricity 
4.2.  With the increasing demand for electricity in Macao SAR due to its rapid economic 
development, the Government is preparing for a partial liberalization of the electricity market with 
a view to introducing competition and en suring a steady supply of electricity. 
4.3.  Currently the CEM (Companhia de Electricidade de Macau S.A.) is the single operator in the 
electricity market. The Government holds 8% of  its shares, while 84% are owned by two major 
shareholders: 42% by the Sino-French Group form ed by Suez Lyonnaise des Eaux Group and NWS 
Holdings, and another 42% by the Sino-Portuguese Group with EDP Asia as its major shareholder. China Power International Holding holds 6% of the shares, and local shareholders own the remaining 2%. 
4.4.  Until 2010, the CEM had the sole concession to generate, transmit, distribute, sell, import, 
and export electricity in Macao SAR. In November 2010, the Government renewed its concession contract with CEM. The new concession contract, effective 1 December 2010, is valid for 15 years, 
and will be reviewed every five years. The new contract only extends concessions to downstream 
transmission, distribution, and sales of electricit y. The Government can decide when to introduce 
competition and open the markets of upstream power generation and importation to investors.
1 
Renewable energy is included in the concession contract to promote energy saving. The authorities 
note that reflecting market development in Macao SAR, the investment return in the new 
concession contract is lowered from 12% to 9.5%, and the amount of compensation for a power failure rose from 3% to a maximum of 9%  of the received electricity tariff.  
4.5.  The CEM is also responsible for the constructi on of local power grids: while interconnection is 
planned by the Government, implementation an d construction are carried out by the CEM.  The first 
220kV interconnection between Macao SAR and Zhuhai power grids entered into service in July 
2008, and a second one (also 220kV) in June 2012.  
4.6.  The electricity tariff, comprising a basic tariff and fuel clause adjustment, is set by the Macao 
SAR Government after considering advice from the CEM. The authorities considered that the 
electricity tariff is on par with other Asian economies.  
4.7.  The CEM is still the sole importer of electricity; electricity imported from Mainland China 
accounts for about 73% of total electricity consumption in Macao SAR, while the rest is generated locally. The authorities note that there is no specific trade policy on energy; however, import 
prices must be approved by the Macao SAR Gove rnment. The authorities state that there is no 
subsidy or support provided to the CEM. 
4.8.  In 2010, the CEM generated 928 GWh electricity (a decrease of 31% over 2009), using heavy 
fuel oil, diesel oil, and natural gas; imported 2,786 GWh electricity from Mainland China (an 
increase of 25%); and purchased 94 GWh electricity from the Macao Central Incineration Centre. The CEM sold 3,610 GWh electricity in 2010 to local consumers, and 198 Gwh electricity was 
consumed by the power plant itself, or was lost during transmission.  
                                               
1 Government information Bureau (2011), p.75. WT/TPR/S/281 • Macao, China 
 
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  4.1.2  Natural gas 
4.9.  Power generated from natural gas was 63% higher in 2010 than in 2009. The GDSE has 
started consultations regarding analysis of and amendments to the technical regulations for the natural gas pipeline network and filling stations.
2 
4.10.  Three concessionary companies deal with natural gas in Macao SAR; Sinosky Energy 
(Holdings) Co. Ltd. is responsible for the import ation and transmission of natural gas; Nam Kwong 
Natural Gas Company is responsible for distributi on and sale; and CEM generates electricity using 
natural gas. These companies propose their ow n prices, which must be approved by the 
Government.  
4.2  Manufacturing 4.11.  As a free port, Macao SAR remains one of the most open economies in the world. However, 
mainly because of the relatively high production co sts pushed up by the small size of the territory 
and the population, and a prospering tourism and gaming sector (section 4.3), manufacturing continues to shrink, both in absolute and relative terms. Manufacturing's contribution to GDP 
dropped from 2.9% in 2007 to 0.7% in 2011, and it s share of total employment fell from 7.1% to 
3.9% (Table 1.1). Merchandise exports declined during the review period (Chapter 1). The textiles and clothing sector in particular has been shrink ing fast since the expiration of the Agreement on 
Textiles and Clothing in 2005 and the abolition of textile quotas. However, the CEPA and the Pearl-
River-Delta (PRD) cooperation programmes may provide opportunities for the MSAR manufacturers to relocate and expand their manufacturing bases (Chapter 2). 
4.12.  According to the annual industrial survey , there were 894 manufacturing establishments 
operating in Macao SAR in 2011; 88.8% had fewer than 30 workers, while only 2.8% had 100 or 
more workers. Despite a decrease in the nu mber of factories and persons employed, the 
production value of manufacturing increased by 9.5% in 2011 (Table 4.1). In the same year, the 
production value of food products and beverages rose by 18.6%, due mainly to the continuous rise 
in visitor arrivals. On the other hand, partly reflecting the sluggish demand from the European and U.S. markets, the production value of wearing a pparel, an export-oriented industry in Macao SAR, 
decreased by a further 18.1% from the previous year. The gross capital formation of the 
manufacturing sector reached its peak in 2010, mainly attributed to the investment surge caused by the expansion of publishing and printing factories. 
4.13.  The Government has been supporting the manufacturing sector as part of its efforts to 
diversify the economy. In 2011 the Government set up a product display centre – Macao Ideas – 
to promote "Made in Macao", "Macao Brand", an d "Macao Design" products. The Government has 
been organizing business and trade fairs, to he lp manufacturers seek business opportunities. As 
most manufacturers in Macao SAR are SMEs, suppor t (mainly financial) has been given to develop 
their own brands, improve their product quality, and facilitate their entry into Mainland China and overseas markets (section 3.4.3.2). 
4.14.  Considering that manufacturing has been increasingly relocated to areas with lower 
production costs (including labour and land), the CEPA may provide some room for further development of the manufacturing industry in Macao SAR. The CEPA may enable enterprises to extend their industrial chains and move into more advanced industries, and thus help boost 
industrial transformation and upgrade. During th e review period, although exports under the CEPA 
increased significantly, more efforts are needed to fully realize the opportunities under the CEPA (Chapter 2). 
 
                                               
2 Examples include: Technical Regulations on the Natural Gas Transmission Pipelines, Technical 
Regulations on the Natural Gas Transmission Pipelines an d the Distribution of Pressure Reduction Stations, and 
Technical Regulations for the Natural Gas Distribution Network. WT/TPR/S/281 • Macao, China 
 
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  Table 4.1 Structure of the ma nufacturing industry, 2009-11 
(Number and MOP million) 
 Year No. of 
factories Persons 
employed Value of 
production and 
other receipts Gross 
value 
added Gross fixed 
capital 
formation 
Total 2011 894 12,744 6,363 1,531 169 
2010 905 13,599 5,813 1,466 354 
2009 1,002 18,208 7,787 1,674 242 
Food products and 
beverages 2011 269 3,579 1,090 424 37 
2010 247 3,559 919 372 47 
2009 234 3,151 696 275 36 
Wearing apparel 2011 179 4,220 1,417 270 17 
2010 212 4,970 1,729 371 3 
2009 272 9,264 3,587 577 -7 
Publishing and 
printing 2011 143 1,344 487 187 33 
2010 143 1,470 468 180 245 
2009 126 1,377 626 197 23 
Other manufacturing 2011 286 3,158 2,591 549 67 
2010 289 3,204 2,379 521 40 
2009 338 3,166 1,831 470 56 
Source: Macao Statistics and Census Se rvice, Industrial Survey. Viewed at: http: //www.dsec. 
gov.mo/getAttachment/0a5d83bb-e668-40c0-842d-938f8679c584/E_IND_FR_2011_Y.aspx  
[05/11/12]. 
4.3  Services 
4.3.1  Features 
4.15.  Macao SAR's economy is dominated by services, relying heavily on gaming and tourism 
earnings. The services sector accounts for around 90% of GDP and total employment (Table 1.1). Gaming is the biggest subsector, accounting for about 40% of GDP and 20% of total employment. 
Macao SAR has been transformed into the world's leading gaming destination. The Government 
has been trying to diversify the economy through facilitating the development of non-gaming services, such as conventions and exhibitions, cultural and creative industries, traditional Chinese 
medicines, and commercial and trade services (i.e. import and export services). Major constraints 
facing the economy include the limited amount of land, shortage of labour supply, and small size of the local market. Local enterprises are mostly  small and medium sized. Regional cooperation 
(such as cooperation with Guangdong Province of China) would be an important channel for Macao 
SAR to overcome its constraints and improve its competitiveness. 
4.16.  Macao SAR grants most-favoured-nation (MFN) treatment to all WTO Members, without 
exception. It made no horizontal commitments in the Uruguay Round services negotiations. Its 
specific commitments under the GATS cover: busine ss services (rental leasing services related to 
other transport equipment); financial services (all insurance and insurance related services, reinsurance and retrocession, services auxiliary to insurance, and banking and other financial 
services); tourism and travel-related services (h otels and restaurants, excluding catering, and 
travel agencies and tour operator services).
3 
4.17.  In 2005 Macao SAR tabled a revised offer in 73 service subsectors4, representing a 
considerable expansion of the scope of potential liberalization compared to its Uruguay Round 
commitments. Since then, it has not made any other offers in services. The authorities state that 
this revised offer was submitted as a contribution to the success of services negotiations in the Doha Round, and covered the main services sectors in Macao SAR. The Government will continue 
to review further offers in services, in  accordance with its development level. 
4.3.2  Financial services 4.18.  The Monetary Authority of Macao SAR (AMCM) supervises Macao SAR's financial services 
sector, and is responsible for central bank functions. There is no capital market in Macao SAR. The 
AMCM considers that the financial services sector, which accounts for approximately 8% of the 
                                               
3 WTO document GATS/SC/50, 15 April 1994. 
4 WTO document TN/S/O/MAC/Rev.1, 28 July 2005. WT/TPR/S/281 • Macao, China 
 
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  MSAR's GDP, is one of the sectors for diversification.5 Further development of the financial services 
sector could be linked with the CEPA arrangement, as the supplementary agreement to the CEPA allows Macao SAR's financial institutions to deepen their cooperation and explore new business opportunities with Mainland China. The Government of China is supporting Macao SAR in widening 
the scope of RMB business and promoting the SAR's role as an RMB settlement platform in trade 
and other economic activities between China and Portuguese-speaking countries. 
4.3.2.1  Banking 
4.19.  Since the previous Review of Macao SAR, th ere have been no significant policy changes in 
the banking sector. The banking sector remains regulated under the Macao Financial System Act (FSA) (Decree-Law No. 32/93/M of 5 July 1993), while Decree-Law No. 58/99/M of 18 October 1999 regulates offshore activities including the esta blishment of offshore financial institutions. The 
FSA is currently under review, and the scope of this review includes: market entry criteria, scope 
of permitted business activities as well as thei r prudential limits, appointment of and related 
liabilities of the members of the Board of Dire ctors and Supervisory Board, requirements of 
external auditors, requirements for market exit , intervention and liquidation procedures, and 
punishment for illegal financial activities. 
4.20.  The banking sector is large and mainly foreign owned. Banking assets account for more 
than 200% of GDP.
6 In 2012, there were 29 banks: 26 commercial banks, 1 Postal Savings Bank, 
and 2 offshore banking units.7 Of these banks, 12 were locally incorporated (including the Postal 
Savings Bank, which is owned by the Macao SAR Government), and 17 were branches of banks incorporated outside Macao SAR (Table 4.2). In addition to the local capital, the banking sector 
comprises banks from: Mainland China, Chinese Ta ipei, Hong Kong SAR, Portugal, Singapore, the 
United Kingdom, and the United States. As of August 2012, the top three banks accounted for 
66.5% of total banking sector assets. 
Table 4.2 Financial institutions, 2007-12 
 2007 2008 2009 2010 2011 2012 
Banks       
Totala 28 28 27 29 28 29 
Local 12 12 12 12 12 12 
With head-office abroad 16 16 15 17 16 17 
Number of banking outletsb 160 166 171 177 184 187 
Number of staff 4,456 4,750 4,620 4,865 5,223 5,213 
a Including offshore banks and the Postal Savings Bank. 
b Including main offices, branches, an d sub-branch offices in Macao SAR. 
Source: Information provided by the AMCM. 
4.21.  In Macao SAR, banks engage mainly in traditional banking business, i.e. taking deposits, 
granting loans, and managing surplus liquidity. Real-estate-related credit continues to account for 
a significant share in banks' assets.8 On the other hand, banks' direct loan exposure to the gaming 
industry is small, as most of this is financed overseas.9 Because of the peg of the local currency to 
the Hong Kong SAR's dollar and indirectly to the U.S. dollar, and under a free capital account, short-term interest rates in Macao SAR are more or  less in line with interest rates in Hong Kong 
SAR and the United States (Chapter 1). 
4.22.  Total gross assets of the banking sector (onshore and offshore banking), totalled about 
MOP 657.4 billion at the end of 2011, up by 21.8% from the previous year (Table 4.3). Credit to 
customers accounted for 49% of total banking assets; credit granted to residents and non-
residents was MOP 167.7 billion and MOP 154.3 bil lion respectively. A significant portion of the 
asset expansion was supported by increases in customer deposits, which represented 63% of total 
                                               
5 AMCM (2012a). 
6 IMF (2011b). 
7 AMCM (2012b). 
8 AMCM (2012a). 
9 IMF (2011a). WT/TPR/S/281 • Macao, China 
 
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  sources of funds: including deposits from the priv ate sector (MOP 383.6 billion) and public sector 
(MOP 29.6 billion). 
Table 4.3 Financial highlights of the banking sector, 2007-11 
 Total assets Credit to 
customers Deposits from 
customers Interbank 
assets Interbank 
liabilities 
2007 327.7 108.6 268.2 134.2 29.4 
2008 359.5 150.6 275.0 136.7 57.6 
2009 427.0 186.6 306.8 167.2 86.0 
2010 539.8 245.7 340.0 223.9 157.0 
2011 657.4 322.0 414.0 240.0 193.4 
Source: AMCM (2012), Annual Report 2011 . Viewed at: http: //www.amcm.gov.mo/Annual_Reports/cReport. 
 htm  [17/08/2012]; and information provided by the authorities of Macao, China. 
4.23.  In 2011, profitability of the banking sector increased: gross interest income grew by 44.2% 
to MOP 12.8 billion, and net-interest income gr ew by 26.1% to MOP 6.6 billion. Non-interest 
income increased by 58.3% to MOP 6.2 billion. Howe ver, operating expenses also grew rapidly, by 
47.3% to MOP 7.7 billion; banking costs increased, due largely to market fluctuation on derivatives 
operations, which, at the same time contributed to the increase in non-interest income. Overall, operating profits of the banking sector surged by 29.6% in 2011 to MOP 5 billion (Table 4.4). 
Table 4.4 Profitability of the banking sector, 2007-11 
(MOP million) 
Operating results 2007 2008 2009 2010 2011 
Interest incomes 14,237 13,404 8,257 8,845 12,756 
Interest costs 9,941 8,332 4,075 3,604 6,150 
Net interest incomes 4,296 5,072 4,182 5,240 6,606 
Other income 3,760 4,955 5,205 3,888 6,153 
Operating costs 4,046 6,690 5,881 5,245 7,726 
Operating profits 4,010 3,337 3,507 3,884 5,033 
Cash flow 4,674 4,867 4,376 5,044 6,466 
Note:  Including the offshore sector and the Post al Savings Bank, excluding the non-bank credit 
institutions. Figures for 2011 are preliminary. 
Source: AMCM (2012), Annual Report 2011 . Viewed at: http://www.amcm.gov.mo/AnnualReports/ 
 cReport.htm  [17/08/2012]. 
4.24.  Benefiting from positive economic development and a prospering market environment, the 
NPL ratio remained low, at 0.3% at end-August 2012, down from 0.4% at end 2011. The 
consolidated capital adequacy ratio for the ten locally incorporated banks (excluding a locally incorporated offshore bank and government-o wned Postal Savings Bank) reached 13.9% at 
end-August 2012. All of these banks met the 8% minimum capital adequacy requirement set by 
the Basel Committee on Banking Supervision of the Bank for International Settlements, reflecting the solvency position of banks in Macao SAR. 
4.25.  Prior to October 2008, Macao SAR had no deposit insurance scheme. During the global 
financial crisis, following measures taken by ne ighbouring economies, the Government announced 
that it would provide full protection to customer deposits held with all banks authorized in the MSAR, until the end of 2010.
10 The protection measures were extended on 1 January 2011, 
although maximum protection was adjusted to MOP 500,000. A Deposit Protection Scheme Law 
(Law No. 9/2012), which entered into force on 7 October 2012, changed the temporary protection scheme to a permanent arrangement. Under this Law, the Government established a Deposit 
Protection Fund, through which compensation of up to MOP 500,000 is to be provided per 
depositor, per bank, in the case of bank failure. The Government injected MOP 150 million as start-up capital, and from January 2014, banks are required to contribute a yearly payment 
equivalent to 0.05% of the total deposit of all accounts with a balance over MOP 500,000. 
4.26.  Offshore financial businesses, including credit institutions, insurers and offshore trust 
management companies, are regulated and supervised by the Monetary Authority of Macao 
                                               
10 IMF (2011a). WT/TPR/S/281 • Macao, China 
 
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  (AMCM). Offshore financial institutions may only transact with non-residents in currencies other 
than the local currency, and are exempted from prof it tax and business registration tax. At the end 
of August 2012, there were two offshore bank s, both from Portugal. Their total assets, 
MOP 29.1 billion, accounted for 3.8% of consolidated assets of the banking sector in Macao SAR. 
4.27.  Non-bank financial institutions include 12 money changers. Development of the tourism 
industry has led to the growing demand for foreign currency exchange services; the six gaming operators are authorized to set up exchange counters in their self-owned properties. There are 
also two cash remittance companies, and two authorized financial intermediaries (both are 
branches of licensed corporations in the HKSAR) providing mainly stock brokerage services. 
4.28.  The legislative and regulatory framework on anti-money-laundering (AML) and combatting 
the financing of terrorism (CFT) remains unchanged since the previous Review.
11 In August 2011, 
the IMF found that the AML/CFT measures in Macao SAR were sound, but lacked the necessary 
level of detail to comply with certain IMF recommendations. In particular, the existing customer due diligence obligations need to be strengthened, and financial institutions should be required to 
verify the identity of persons on whose behalf a customer is acting.
12 In 2007, the most recently 
released mutual evaluation report by APG (the Asia/Pacific Group on Money Laundering) and OGBS (Offshore Group of Banking Supervisors) consid ered the AML/CFT measures adopted by Macao 
SAR were basically satisfactory. Some areas like confiscation/freezing measures, customer due 
diligence, mutual legal assistance, international cooperation, and non-profit organizations (NPO) required some enhancement.
13 
4.3.2.2  Insurance 
4.29.  There has been no significant policy chan ge to the insurance sector since the previous 
review.  The AMCM authorizes and monitors insurance companies.14 Main legislation includes the 
Macao Insurance Ordinance (Decree Law No. 27/97/M), and the Macao Insurance Agents and 
Brokers Ordinance (Decree Law No. 38/89/M as amended by Administrative Regulations No. 
27/2001). 
4.30.  The insurance market is small, in line with the territory and population. The sector has a 
high concentration: as at 30 June 2012, there were 11 life insurers and 12 non-life insurers. The 
biggest three major life insurers accounted for 66.6% of the market, while the biggest three major non-life insurers accounted for 68.1% of the market. There is significant foreign participation. Among the 23 insurers, eight are local companies, six are from Hong Kong SAR, four from 
Bermuda, two from Portugal, and one each from China, Australia, and Canada. Overseas insurers 
accounted for 86% of the life insurance market, whereas local insurers had 71% of the non-life insurance market.
15 Insurers are not allowed to conduct both life and non-life business. 
4.31.  In accordance with the Insurance Ordinance, insurance companies may be licensed as: a 
locally incorporated company, a branch with its head office overseas, or a representative office. While a locally incorporated company or a branch of a foreign insurance company may conduct 
insurance business in Macao SAR, a representative office of an overseas insurance company may 
not. For an insurer incorporated in Macao SAR, the required capital is MOP 30 million to conduct life insurance and MOP 15 million for non-life insura nce. The required funds for a foreign insurer to 
establish a branch in Macao SAR are MOP 7.5 million to conduct life insurance and MOP 5 million to 
conduct non-life insurance. In addition, the capital of the head office of such an insurer should not 
be less than the minimum capital required fo r a domestic life or non-life insurer. 
4.32.  The AMCM regulates the conditions and prem ium rates of compulsory classes of insurance, 
i.e. motor vehicle (third-party risks), employees' compensation, professional liability for travel 
agents, professional liability for lawyers, public liability related to the fixing of billboards, and 
                                               
11 For details of Macao SAR's AML and CFT regulatory framework, please see WTO (2007). 
12 IMF (2011a). 
13 APG and OGBS (2007). 
14 The AMCM also regulates pension funds in accord ance with the Legal Framework of Private Pension 
Funds (Decree-Law 6/99/M as amended by Law No. 10/2001). The MSAR has one pension fund management 
company, and seven life insurers which also manage pension funds. 
15 AMCM (2012c). WT/TPR/S/281 • Macao, China 
 
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  public liability for pleasure vessels. Regarding non-compulsory insurance, insurers are free to 
design their own insurance cover and set their own premium rates.  
4.33.  The insurance sector developed rapidly during the period under review. Despite a drop 
around 2008-09, gross premiums for both life an d non-life insurance increased, and total gross 
premium income reached MOP 4.4 billion (about US$554 million) in 2011, up 15% from 2010 
(Table 4.5). The insurance penetration rate, however, declined from 1.9% in 2009 to 1.7% in 2010 and 1.5% in 2011, as the GDP of the economy has been growing at an even faster rate. 
Table 4.5 Composition of  gross premiums, 2007-11 
  2007 2008  2009  2010 2011 
Life 2,253,975 2,547,740 2,331,637 2,685,108 3,137,415 
Non-life 972,873 897,687 931,529 1,087,010 1,214,893 
Total 3,226,848 3,445,427  3,263,166  3,772,118 4,352,308  
Source: AMCM, Presentation on the regulatory framework of  insurance in Macao SAR, 21 June 2012. 
4.3.3  Telecommunications 
4.34.  Mobile telecommunication and internet-related services were liberalized in 200116, and in 
2009 the Government reviewed the concessionary agreement with Companhia de Telecommunicações de Macau (CTM), a private company, and liberalized local and international 
leased circuit services and transit services. As of 1 January 2012, the fixed-line telecom service 
was liberalized. Hence the telecommunication sector in Macao SAR has been fully liberalized since 2012. As part of the liberalization process, the Government launched a public tendering for the 
licence to the install and operate the fixed public telecommunications network in early 2012. The 
tendering process had not been completed by the time this report was finalized. The entity that obtains the licence may provide bandwidth to local and overseas licensed operators; it is required to commence services within 18 months of obtaining the licence.  
4.35.  The telecommunication sector remains re gulated by the Bureau of Telecommunications 
Regulations (DSRT). Major legislation includes the Basic Telecommunications Law, which established the basis of telecommunication poli cies and the general regulatory framework in 
Macao SAR. Licensing arrangements, as well as the governance of the operation of telecom 
services are defined in Administrative Regulation No. 7/2002 for mobile telecom services, Administrative Regulation No. 24/2002 for internet services, and Administrative Regulation 
No. 41/2011 for fixed public telecom network (Table A2.1). 
4.36.  During the review period, the mobile telecommunication services sector continued to 
expand, while the fixed-line sector started to contract (Table 4.6). The mobile penetration rate grew to 241.6% in 2011. Currently, there are five  mobile operators including 1 MVNO (mobile 
virtual network operator), 8 internet service prov iders (ISPs), and 14 internet content providers 
(ICPs).
17 Despite liberalization, there remains only one fixed-line telecom services supplier, the 
CTM, as the issuance of the new fixed-line licenc e is still in progress. In 2009, the Government 
issued its fourth 3G mobile licence: China Unicom (Macau), Hutchison Telephone (Macau), CTM, 
and SmarTone Mobile Communications (Macau) are allowed to provide public networks for terrestrial 3G mobile telecommunications and roaming 3G mobile telecommunication services.
18 
4.37.  The authorities state that there are no explicit restrictions on foreign ownership in basic 
telecommunication services related subsectors. 
                                               
16 WTO (2007). 
17 The authorities note that the Herfindahl-Hirschman Index (HHI) for Macao SAR's mobile 
telecommunications market was 0.334 at August 2012.  The HHI index indicates the degree of market 
concentration: an HHI close to 1 indicates monopoly , and an HHI close to 0 means full competition.  
18 Government Information Bureau (2011), p.434. WT/TPR/S/281 • Macao, China 
 
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  Table 4.6 Telecommunication market, 2006 and 2011 
 31 Dec 2006  31 Dec 2011 Change (%)  
Mobile operators (including MVNO) 5 5 0 
Mobile phone subscribers 636,347 1,353,194 112.7 
Mobile penetration 124.0% 241.6% 94.8 
Mobile monthly subscription fee (basic 
package) MOP 98 MOP 98 0 
Fixed telephone lines 176,665 165,536  -6.3 
Annual international outgoing telephone traffic 216 million minutes 299 million minutes 38.4 
Internet service providers 8 8 0 
Internet content providers 10 14 40 
Internet subscribers 105,291 138,222  31.3 
Annual internet usage 122 million hours 527 million hours 332 
Internet household penetration 78.00% 76.83% -1.5 
Internet monthly subscription fee (basic 
package) MOP 88 (with 
60 free hours) MOP 68 (with 
70 free hours)  -22.7 
 (512K broadband) (1.5M broadband)  
International internet bandwidth (Mbps) 3443 19,251.20 
(18.8GB) 459 
Private leased circuits (international leased 
circuits) 8,941 13,947 56 
Annual telecom investmenta MOP 343 million MOP 597 million 72.5 
Total telecom services revenuea MOP 2,188 million MOP 5,391 million 146 
a 2011 audited accounts are not yet available from operators. 
Source: Information provided by the authorities of Macao, China. 
4.38.  Tariffs for fixed or mobile telecommunication services must be approved by the DSRT. 
Regarding internet services, the DSRT prevents in ternet service providers (ISPs) from changing 
their tariffs only when it is found to be anti-competitive in nature or is against the public interest in 
general. Interconnection charges are determined via commercial agreement. In accordance with the current regulations, network operators must provide interconnection if it is technically feasible, 
safety of network equipment is ensured, and corre sponding regulations are followed. In the event 
that a mutual agreement cannot be reached, th e Government, in order to ensure service is 
maintained, may step in and mandate interconnection terms and conditions that both parties must adhere to. 
4.39.  The DSRT is reviewing competition-related provisions, which are scattered throughout 
different regulations and laws, with a view to enhancing and consolidating these provisions to maintain and promote effective competition in a fully liberalized market. Article 8 of Basic 
Telecommunications Law stipulates that all forms of cross-subsidization or other practices that 
subvert competition or the user's freedom of choice are prohibited. 
4.40.  In Macao SAR, telecom access service operat ors are mandated to provide full coverage for 
their licensed services within a certain time frame from the commencement of operations. All 
operators basically cover the whole area of the territory. 
4.41.  Licensed operators currently pay a royalty totalling 5% of all revenue from licensed 
services, and are subject to a radio spectrum fee for spectrum usage. No specific tax incentives 
are provided to telecommunication operators. 
4.3.4  Transport 4.42.  Macao SAR's transport services have been developing quickly to cope with the increasing 
number of visitor arrivals. Land and sea transport remain the leading modes of transport: in 2011, 
54.6% of visitors arrived by road and 39.4% by se a. On the other hand, transport of goods has, in 
general, been declining (Table 4.7). WT/TPR/S/281 • Macao, China 
 
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  Table 4.7 Visitor arrivals by mode of travel, and transport of goods, 2007-11 
  2007 2008a 2009 2010 2011 
Total visitor arrivals 26,992,995 22,933,185 21,752,751 24, 965,411 28,002,279 
By sea 8,980,381 9,173,206 8,684,809 10,244,087 11,020,999  
(% of total) 33.3% 40.0% 39.9% 41.0% 39.4% 
By road 16,538,860 12,094,752 11,448,843 13,087,262 15,299,600 
(% of total) 61.3% 52.7% 52.6% 52.4% 54.6% 
By air 1,473,754 1,665,227 1,619,099 1,634,062 1,681,680  
(% of total) 5.5% 7.3% 7.4% 6.5% 6%  
Containerized cargo 
(tonne)      
Seaborne 329,288 328,196 180,413 178,380 182,959 
  Import 230,071 253,341 145,680 147,030 156,767 
  Export 54,880 53,937 22,682 19,498 21,526 
  Transit 44,337 20,918 12,051 11,852 4,667 
By road 75,835 104,312 51,694 45,718 35,093 
  Import 37,662 70,403 24,887 24,218 18,716 
  Export  10,439 10,286 13,727 4,805 5,843 
  Transit 27,734 23,623 13,080 16,695 10,534 
Air cargo (tonne) 180,936 100,768 52,464 52,166 39,524 
  Import 22,758 16,705 13,257 13,597 9,826 
  Export 69,625 41,548 28,729 32,361 24,950 
  Transit 88,553 42,515 10,478 6,208 4,748 
Seaborne container 
throughput (TEU) 138,685 126,335 88,548 91,318 101,989 
      
Commercial flights 49,441 46,036 37,177 34,654 35,404 
  Arrivals 24,742 23,009 18,581 17,327 17,703 
  Departures 24,699 23,027 18,596 17,327 17,701 
Cross-border 
automobile traffic 3,807,517 3,785,863 3,508,159 3,812,243 4,135,910 
  In 1,905,677 1,888,457 1,747,823 1,900,933 2,047,054 
  Out 1,901,840 1,897,406 1,760,336 1,911,310 2,088,856 
Ferry trips 105,105 105,289 131,595 147,200 146,060 
  Arrivals 52,359 52,298 65,493 74,122 73,075 
  Departures 52,746 52,991 66,102 73,078 72,985 
a From 2008 visitor arrivals exclude non-residents, (non-resident workers and students). 
Source: Macao Statistics  and Census Service. 
4.3.4.1  Maritime transport 
4.43.  Maritime transport is regulated under Decree-Law No. 109/99/M (regulation on maritime 
trade), Decree-Law No. 90/99/M (law on maritime activities), and Decree-Law No. 14/99/M 
(regulation on maritime pilotage). There have been no changes to these laws since the previous Review of Macao SAR. 
4.44.  Maritime transport remains by far, the dominant mode for international trade; it is still 
recovering from the global financial crisis (Table 4.7). In 2011, 101,989 TEUs (twenty-foot equivalent units) were shipped in and out of Maca o SAR by sea, an increase of 11.7% from 2010. 
Maritime transport of persons has been increasi ng rapidly. The Outer Harbour Ferry Terminal, 
Taipa Ferry Terminal, and Inner Harbour Ferry Terminal provide cross-border transportation 
services for passengers travelling between Macao SAR, Hong Kong SAR, and Mainland China. 
4.45.  Maritime passenger transport is regulated in accordance with Administrative Regulation 
No. 34/2009.
19 Currently, scheduled passenger ferries are operated by six shipping companies. 
Four of these (FEH Company Limited, Hong Kong  Macao Hydrofoil Company Limited, STCT Ferry 
Services (Macau) Limited, and Cotai Ferry Company Limited) operate passenger ferries between 
Macao SAR and Hong Kong SAR. Another two (Shun Tak China Travel Ship Management (Macau) 
Limited and Yuet Tung Shipping Company Limited, operate between Macao SAR and the cities in the Pearl River Delta (e.g. Zhuhai and Shenzhen) in  Guangdong Province of China. The authorities 
note that all passenger ferry operators are co mmercial enterprises, with no public funds. 
                                               
19 Administrative Regulation No. 34/2009 on Maritime Passenger Transport. Viewed at: http: //www. 
marine.gov.mo legis/index_c.html [07/11/12]. WT/TPR/S/281 • Macao, China 
 
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  Competition among passenger ferry operators is regulated under Articles 156-172 of the 
Commercial Code.  
4.46.  The Maritime Administration, a bureau under the Secretary for Transport and Public Works, 
regulates domestic and international maritime transport services, including harbour management, 
ship registration, crew management, state control of ports, approval of maritime engineering 
projects, and wharf operations. The authorities note that shipping tariffs on goods transport are set by carriers, and are not subject to Government regulation. However, shipping tariffs on 
passenger transport require approval from the Maritime Administration: Article 13 of the 
Administrative Regulation No. 34/2009 stipulates that 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 MSAR 
CPI index. 
4.47.  By law, all vessels engaged in economic ac tivities must be registered with the Maritime 
Administration (for the registration of ships and the monitoring of ship safety), and the 
Commercial and Movable Goods Registry (for the regi stration of the legal status of ships). Through 
registration, the Government verifies the vessel s' conformity with official requirements on 
technology, safety, and environmental protection . Where applicable, Macao SAR registered ships 
must comply with the regulations of internatio nal conventions. At the end of 2011, 302 vessels 
were registered, including 5 registered during the year. Most of the vessels that call at the port of Macao SAR are river-trade vessels flying either the national flag of Mainland China or the regional 
flag of Hong Kong SAR. For vessels to fly the fl ag of Macao SAR the owner must be a Macao SAR 
resident or legal person; the shipmaster and senior officer must be Macao SAR residents, and one business address must be set up in Macao SAR. 
4.48.  The Maritime Administration provides pilot services for vessels entering and leaving Macao 
SAR via the inner and outer channels, within be rthing areas, and in all waters under the 
Government's jurisdiction. Pilotage services operate on a 24-hour basis, and pilots must be Macao 
SAR residents. 
4.49.  Macao SAR joined the International Maritime Organization (IMO) as an associate member in 
1990. International treaties on maritime safety an d the prevention of pollution are enforced in 
Macao SAR. 
4.3.4.2  Land transport 
4 . 5 0 .   M o r e  t h a n  h a l f  o f  v i s i t o r s  a r r i v e  i n  M a c a o  S A R  b y  r o a d ,  a l t h o u g h  t h e  w e i g h t  o f  g o o d s  
transported by road only reaches 20% of goods transported by sea (Table 4.7). The Transport 
Bureau, set up in 2008, is responsible for studyi ng, planning, promoting, and implementing road 
transport policies; pursuing road improvements; regulating vehicles; and installing, maintaining, and improving transportation and pedestrian infrastructure. 
4.51.  Three land routes link Macao SAR and Mainland China: the Border Gate, the Lotus Bridge, 
and the Zhuhai-Macao Cross-border Industrial Zone . In 2011, more than 15 million visitors arrived 
in Macao SAR by land, of which 92.6% entered via the Border Gate, 7.4% via the Lotus Bridge, and 0.2% via the Zhuhai-Macao Cross-border Industrial Zone, which officially commenced 
operation in October 2006.  
4.52.  The land freight transport market is relatively competitive in Macao SAR. In 2010, 109 land 
transport operators were registered as establishments, and 670 operators under sole 
proprietorship (i.e., truck owners engaging in freight transport).
20 
4.53.  To encourage competition and improve the major means of mass public transport (bus 
services), the Government opened a public tender in 2010, when the concession contracts for the 
two bus operators (Transmac and STCM) expired. Fr om August 2011, bus services are provided by 
three operators: Transmac, STCM, and Reolian.  Supplementary public passenger transport 
services - taxi services – are provided by both small private operators holding taxi licences (as at 
                                               
20 The 109 land transport operators include passenger  and freight transport operators (DSEC, 2011).  WT/TPR/S/281 • Macao, China 
 
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  August 2012, 980 taxi licences had been issued through public tender), and Vang Iek Radio-Taxi 
Co. Ltd, which mainly provides on-call taxi services. 
4.54.  With a view to prioritizing public transp ortation the Government decided to develop a light 
rapid transit (LRT) system. The construction programme for phase 1 began in 2009; the LRT 
system is expected to be in service in 2015. 
4.3.4.3  Air transport 4.55.  Around 7% of visitors arrive in Macao SAR by air (Table 4.7). The aviation industry 
underwent significant changes during the review period. Before 2008, cross-strait flights between 
Chinese Taipei and Macao SAR accounted for 70% of the market. In 2008, cross-strait direct 
flights between Chinese Taipei and Mainland China was allowed, which lowered the demand for people to travel from Mainland China via Macao SAR to Chinese Taipei, and vice versa. Thus the 
transit market declined, causing overall passenger numbers and cargo volumes to slide. After 
2009, passengers from China became the biggest source for Macao SAR's aviation industry. In 
2011, 34% of passengers arriving in Macao SAR by air were from China, and 31% from Chinese 
Taipei. There are currently 20 airlines operating 33 regional and international routes in Macao SAR, 
more than half of these routes to China. In 201 1, when the passenger market seemed to stabilize, 
the cargo market continued to deteriorate (Table 4.8). 
Table 4.8 Air transport in Macao, China, 2006-11 
  2006 2007  2008  2009  2010 2011  
Number of movements 51,049 53,386 49,766 40,601 37,148 38,946 
Growth (%) 13% 5% -7% -18% -9% 5% 
Number of passengers 4,976,093 5,498,879 5,097,821 4,250,140 4,078,839 4,045,014 
Growth (%) 17% 11% -7% -17% -4% -1% 
Cargo (ton) 220,573 180,935 100,766 52,462 52,165 39,524 
Growth (%) -3% -18% -44% -48% -1% -24% 
Source:  The Airport Management Company, ADA. 
4.56.  The Civil Aviation Authority of Macau (AACM) remains the regulator responsible for 
implementing air transport policies, regulating all the relevant players in the sector, negotiating 
Air Services Agreements (ASAs), issuing licences, ensuring technical safety of the civil aviation 
infrastructure, and carrying out inspections of all civil aviation activities in Macao SAR's airspace. The main legislation on civil aviation includes Administrative Regulation No. 18/2008, which amended Administrative Regulation No. 10/2004 on th e basic principles of civil aviation activities, 
and Executive Order No. 8/2011, which approved and issued the Air Navigation Regulation 
(Table A2.1). 
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 operate both passenger and cargo flights 
from and to Macao for 25 years. However, this concession does not prevent non-local carriers flying from, to, and through Macao under rights ne gotiated in relevant ASAs. Air Macau is a joint 
venture with 51% of its shares owned by the CNAC (China National Aviation Corporation (Macau) 
Co. Ltd.), 21% by the Macao SAR Government, 14% by the STDM (Sociedade de Turismo e Diversões de Macau (Shun Tak Holdings)), 5% by the Evergreen Airways Service (Macau) Ltd, and 
9% by other investors. Air Macau flies to 19 de stinations throughout Asia, and carries about 35% 
of passengers and 45% of cargo tr ansported from and to Macao SAR. The authorities indicate that 
Air Macau itself decides whether to operate a particular route, based on market considerations. Civil servants and/or government-related cargoes are not obliged to fly Air Macau. 
4.58.  The Government advocates an open sky policy. As of March 2012, Macao SAR had signed or 
initialled 47 ASAs (Table A4.1); the authorities st ate that these ASAs have quite liberal clauses, 
demonstrating Macao SAR's willingness to exchange liberal traffic rights (such as fifth or other 
more liberal freedoms) in addition to the traditional third and fourth freedom air-traffic rights. With 
regard to cargo transportation, the seventh freed om was exchanged with Iceland, Singapore, and 
the United States.
21 Macao SAR allows ASA counterpart airlines majority owned by foreign capital 
                                               
21 WTO document WT/TPR/M/181/Add.1, 19 June 2007, p.56. WT/TPR/S/281 • Macao, China 
 
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  to operate to the MSAR as long as they use the counterpart's territory as principal place of 
business. 
4.59.  Challenges faced by the aviation sector in clude: capacity constraints, close proximity to 
bigger rivals in the region, and increasingly tight air space. Macao SAR has a very small domestic 
market, is a relatively new player in this industry, and does not have an obvious competitive edge 
over its main competitors, which are already well-established in the region. The Government considers that the development of its aviation in dustry may only be achieved through attracting 
more non-local airlines to operate from, to, and through Macao, making Macau International 
Airport an aviation gateway in the region, while retaining sufficient flexibility for the future development of the locally incorporated Air Macau. 
4.60.  Macao SAR has one international airport, the Macau International Airport, which started 
operating in 1995. Under a concession agreement, the Macau International Airport Company 
Limited (CAM) has the exclusive right to operate the airport until 2039. CAM was responsible for the airport construction, and is now responsible for its operation. CAM is a private company in 
which the Government has the majority 55.4% stake, the STDM (Sociedade do Turismo e 
Diversões de Macau) has a 33.03% share, and the remaining shares are owned by a number of mainland Chinese and local businesses and institutions. The authorities note that there is no 
subsidy from the Government to the airport. The Government acquires equipment for enhancing 
the safety and security systems of the airport, including security equipment (x-ray, CCTV, access 
control system) and communication equipment (AMHS, NETRIX, TES systems). 
4.61.  CAM may subcontract airport services to ot her companies through public tenders. Currently 
there are seven sub-concessions, for the provisio n of ground handling, catering, fuel supply, 
duty-free shops, general aviation handling services, airport restaurant, and security. All sub-concessions were granted after a process of public tender. In 2008, the Government decided not 
to extend the exclusive operational period for all the service providers with sub-concession 
contracts at the airport. Therefore, once the excl usive right contracts with these service suppliers 
expire, a new bidding process will start, which may bring more competition to the sector. 
4.62.  Under an existing sub-concession contract, ADA (Administration of Airports) manages the 
airport, including slots arrangement. Once an ai rport access application is approved by the AACM 
(the Civil Aviation Authority of Macau), slots are allocated on a first-come-first-served basis with priority given to scheduled flights. ADA is a Sino-Portuguese joint venture between China National 
Aviation Corporation (Macau) Company and Aeroportos de Portugal (ANA). Services provided by 
the ADA include airport and terminal building management, air traffic control, aeronautical information and communication services, airport and air navigation system maintenance, security 
and safety control, as well as the commercial and financial management of the airport. 
4.63.  The current sub-concessionary company for aircraft repair and maintenance services is only 
certified to service one type of aircraft, hence aircraft may be maintained and repaired by the 
airline companies themselves or outside Macao SAR at stations certified by the AACM. All services, 
equipment, and facilities must be provided, ma intained, and operated in full compliance with 
procedures and standards, approved or specified by the AACM, in accordance with the Annexes to the Convention on International Civil Aviation. 
4.64.  There has been increasing competition from airports in the nearby Pearl River Delta (PRD) 
region. The Macau International Airport's designed passenger capacity is 6 million annually, and designed cargo capacity is 165,000 tonnes annuall y. In 2011, the utilization rate was about 67% 
for passengers and 24% for cargo. The Government is considering possibilities to cooperate and 
coordinate with other airports in the region, and expanding the airport. The Government expects that better infrastructure (such as the inter-city high-speed LRT system and the Hong Kong-
Zhuhai-Macao bridge) connecting Macao SAR with adjacent areas in the Pearl River Delta, will 
bring greater market potential, and feed traffic to Macau International Airport, particularly from the west bank of the delta. Therefore in antici pation of future growth, the Government is now 
finalizing an airport master plan, which aims at transforming Macau International Airport into a 
multi-model transportation hub in the region. WT/TPR/S/281 • Macao, China 
 
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  4.3.5  Tourism 
4.65.  The Government aims to build Macao SAR into a world tourism and leisure centre. During 
the review period, the tourism sector grew, and total visitor expenditure increased steadily (Table 4.9). 
Table 4.9 Economic impact of travel and tourism, 2007-11 
(MOP million unless otherwise indicated) 
 2007  2008  2009  2010 2011  
Total visitor expenditure 
(in chained 2010 dollars)  125,527.5 143,444.6 149,755.3 221,494.3 288,582.8  
  Gaming expense 92,551.3 111,825.7 121,149.1 186,841.5 251,444.0  
  Accommodation 4,424.7 4,853.0 5,190.3 6,182.7 7,088.2  
  Other expense 28,551.5 26,765.9 23,415.9 28,470.1 30,050.6 
  Per-capita spending (MOP) 1,637 1,729 1,616 1,518 1,619  
Source: Statistics and Census Services, Financial Se rvices Bureau, Macau Gove rnment Tourist Office. 
4.66.  The sources of visitors have changed si nce 2003, 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). The number of Chinese tourists has increased significantly and 
reached a peak in 2007. In 2008, China tightened visa control for Mainland China's residents 
wishing to visit Macao SAR under the ITS.  Partly reflecting this visa policy, and partly reflecting the global financial crisis, the number of visitors dropped. Tourist arrivals (including tourists from 
China) rebounded after 2009 when the MGTO launched the Plan to Support Macau Tourism 
Industry. Between 2004 and the end of 2011, a tota l of 45 million Mainland China visitors visited 
Macao SAR under the ITS scheme, representing 46% of all visitors from China and 25% of total 
visitors to Macao SAR (Chart 4.1). 
Chart 4.1 Visitor arrivals, 2003-11 
05,000,00010,000,00015,000,00020,000,00025,000,00030,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011Total visitor arrivals
Total visitor arrivals
from Mainland China
Visitor arrivals underthe ITS
 
Note: Visitor arrivals from 2008 exclude non-residents, non-resident workers and students. 
Source:  Data provided by the authorities of Macao, China. 
4.67.  In 2011, the visitor arrivals increased further, to 28 million. Visitors from Mainland China 
and Hong Kong SAR accounted for more than half, and almost one third of the total, respectively (Table 4.10). WT/TPR/S/281 • Macao, China 
 
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  Table 4.10 Visitor arri vals, by source, 2007-11 
 2007 2008  2009  2010 2011  
Total visitor arrivals 26,992,995 22,933,185 21,752,751 24,965,411 28,002,279 
Growth rate (%) 22.7 n.a.a -5.2% 14.8% 12.2% 
Source      
Mainland China 14,866,391 11,613,171 10,989,533 13,229,058 16,162,747  
% of total 55.1% 50.6% 50.5% 53% 57.7% 
  ITS 7,165,211 6,584,657 4,809,878 5,486,173 6,588,722 
  % of total 26.5% 28.7% 22.1% 22% 23.5% 
Hong Kong, China 8,174,064 7,016,479 6,727,822 7,466,139 7,582,923  
% of total 30.3% 30.6% 30.9% 29.9% 27.1% 
Chinese Taipei 1,444,082 1,315,865 1,292,551 1,292,734 1,215,162 
% of total 5.4% 5.7% 5.9% 5.2% 4.3%  
Other 2,508,458 2,987,670 2,742,845 2,977,480 3,041,447  
% of total 9.3% 13.0% 12.6% 11.9% 10.9%  
n.a. Not applicable. 
a Visitor arrivals from 2008 exclude non-residents (such as workers and students). The number of 
total visitor arrivals in 2008 is not comparable with that of 2007. 
Source: Statistics and Census Service. 
4.68.  The Macau Government Tourist Office (MGTO) helps to formulate and implement tourism 
policies, protecting and enhancing the value of Macao SAR's tourism resources, and enriching and diversifying its tourism products. It carried out the Strategic MICE Market Stimulation Programme 
in 2010 and 2011. 
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 fee 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 2012, 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. 
4.70.  As of September 2012, Macao SAR has 69 star-rated hotels and 33 guest houses, providing 
a total 26,719 rooms (Table 4.11). The Law on the Prohibition of Illegal Provision of 
Accommodation, which entered into effect on 13 August 2010 was issued to regulate the guest-
house accommodation market with a view to im proving visitors' accommodation. In 2011, there 
were 30,771 hotel employees in Macao SAR (up from 27,516 in 2010), of whom 30,638 worked in 
star-rated hotels and 133 in guesthouses. The number of guests who occupied hotel rooms in 
2011 was about 8.6 million (up from more than 7 m illion in 2010). The average length of stay was 
1.53 nights in 2011 (1.54 nights in 2010, and 1.5 nights in 2009). 
Table 4.11 Hotels and guest houses, 2007-September 2012 
 2007 2008  2009  2010  2011 Sept 2012  
Number of hotels 54 57 61 62 65 69 
Number of guest houses 31 31 31 31 32 33 
Total 85 88  92 93 97 102  
Number of hotel rooms 16,496 18,082 19,740 20,412 22,606 26,080 
Number of guest house 
rooms 576 576 576 576 616 639 
Total 17,072 18,658  20,316  20,988  23,222 26,719  
Source  Information provided by the authorities of Macao, China. WT/TPR/S/281 • Macao, China 
 
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  4.3.6  Gaming 
4.71.  The tourism sector has benefitted from a prospering 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 number of measures to prevent 
excessive expansion of the gaming industry.  
4.72.  Gaming is legal in Macao SAR. Since 2002, the Government has opened the sector to new 
operators, and although the casino concessions were  restricted to three, each concessionaire may 
grant sub-concessions with approval from the Go vernment. The Government decided to limit the 
number of sub-concessions to only three. Curre ntly, there are three concessionaires and three 
sub-concessionaires, each of which has the right to operate casino gaming business as an independent legal person (Chart 4.2). Concessionaires or sub-concessionaires who wish to open 
new casinos, gaming tables or slot machines must apply to and obtain approval from the Gaming 
Inspection and Coordination Bureau (DICJ). 
Chart 4.2 Concessionaires and sub-concessionaires 
Wynn Resorts
(Macau) S.A.
06/2002MSAR Government
Melco PBL Logos
(Macau) S.A.
09/2006Galaxy Casino S.A.
Company
06/2002
Venetian
Macau S.A.
12/2002MGM Grand
Paradise S.A.
04/2005Sub-
concessionaireSJM (Sociedad de 
Jogos de Macau)
03/2002Concessionaire
 
Source : Macao Gaming Inspection and Coordination Bureau. 
4.73.  Key legislation on gaming includes Law No. 16/2001 on the Legal Framework for the 
Operations of Casino Games of Fortune, which st ipulates operational requirements, eligibility of 
major shareholders and management of the casinos, and gaming tax to be levied; Administrative 
Regulation No. 6/2002 on the rules and regulations for the junket promoters of casino games of 
fortune (later amended by the Administrative Regulation No. 27/2009); and Law No. 5/2004 on 
credit for games of fortune.22 Anti-money-laundering Legislation also applies, comprising Law No. 
2/2006 on Prevention and Deterrence on Money Laundering; Administrative Regulation No. 7/2006 on Preventative Measures on Money Laundering and Financing of Terrorism, and DICJ Instruction No. 2/2006 stipulating the legal obligations of th e gaming concessionaires and junket promoters 
on preventing money laundering and terrorist financing occurring in casinos. In 2012, the 
authorities issued Law No. 10/2012, increasing the minimum age to enter and to work in a casino (see below). 
4.74.  Competition-related provisions are contained in Gaming Law No. 16/2001. Article 21 
stipulated that the Government shall treat all gaming concessionaires and sub-concessionaires (concessionaires) in a non-discriminatory manner and shall ensure that they comply with the rules of competition. Concessionaires must conduct business under fair, healthy, and constructive 
competition and respect the principles inherent to a market economy. To avoid anti-competitive 
behaviour (e.g. collusion), arranged agreements and practices are prohibited, in whatever form, 
between gaming concessionaires or companies belonging to the respective groups that may in 
                                               
22 There are also the Administration Regulation No. 26/2001 (regulating the requirement of the 
companies that join the bidding of the gaming conces sions), and a number of Chief Executive Orders: No. 
26/2002 (temporary granting of the 3 concessions of games of fortune), No. 250/2001 (requirement of 
companies that can join the bidding of the gaming concession), No. 217/2001 (restricting the number of 
granted gaming concessions to 3), No. 216/2001 (setting-up of the first Gaming Concession Tender Committee), and No. 215/2001 (establishing the amount of the annual fixed premiums). WT/TPR/S/281 • Macao, China 
 
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  anyway restrict, impede or distort competition amongst the gaming concessionaires. Any improper 
operation, by one or more gaming concessionaires with a dominant position or substantial market share in the gaming industry that may in any way impede, restrict or distort competition is prohibited. Any violation of the provisions of the Article is considered an administrative infraction 
without precluding it from the underlying civil or criminal liability. 
4.75.  In accordance with Administrative Regulati on No. 34/2003, the DICJ provides assistance to 
the Chief Executive of the MSAR on the definition and application of economic policies on gaming 
activities. The DICJ has four departments:  
 the Inspection of Games of Fortune Department has inspectors stationed in casinos to 
monitor their daily operation, and to mediate in disputes between individuals and between gaming concessionaires and members of the public. Prior approval from the DICJ is required 
before any changes may be made to gaming operations, including the maximum bet 
amounts, the initial flow on gaming tables, the number of gaming tables, the operating hours, the use of new chips, and new slot machines; 
 the Inspection of Pari-Mutuel Department of the DICJ conducts inspections on pari-mutuel 
activities such as horse racing, dog racing, and sales of lottery tickets before, during and after the event;  
 the Audit Department of the DICJ audits the gross gaming revenue of each concessionaire, 
and the concessionaires must submit gaming reports and data to the DICJ on a daily basis. The Audit Department also conducts, inter alia , IT audit, anti-money-laundering and 
financing of terrorism audit, minimum internal  control requirement audit, compliance audit, 
and commission cap audit. The DICJ is also responsible for preventing, eliminating, and 
punishing illegal gaming; and 
 the Junket Licensing Team, headed directly by the Director and Deputy Director of the DICJ, 
is responsible for inspecting the qualifications of gaming promoters and issuing licences to 
them.  
4.76.  In accordance with Law No. 16/2001 and Concession Contract for Casino Operation, casino 
operators must pay gaming tax, make contribu tions to the Macao SAR Government, and make 
local investment (Table 4.12). 
Table 4.12 Fiscal and financial co ntributions by casino operators 
Type Details 
Gaming tax - Special gaming tax:  35% of gross revenue 
- Premium (fixed):  MOP 30 million per year - Premium (variable):  MOP 300,000 per table per year for VIP table   MOP 150,000 per table per year for regular table   MOP 1,000 per slot machine per year 
Contributions - Monthly payment, 1.6% of gross revenue, to  the Macao Foundation, used in cultural, 
social, economic, scientific, or educational development;  
- Monthly payment, 1.4% (SJM) or 2.4% of  gross revenue, used in infrastructure, 
tourism, and social security 
Local 
investment - SJM: MOP 4.7 billion, contract signed in March 2002, fulfilled 
- MGM: MOP 4 billion, contract signed in April 2005, fulfilled - Galaxy: MOP 4.4 billion, contract signed in June 2002, fulfilled - Venetian: MOP 4.4 billion, contract signed in December 2002, fulfilled - Wynn: MOP 4 billion, contract signed in June 2002, fulfilled - Melco PBL: MOP 4 billion, contract signed in September 2006, fulfilled 
Source: Macao Gaming Inspection and Coordination Bureau. 
4.77.  The gaming sector developed rapidly during the review period, and the gross revenue of the 
sector more than tripled between 2007 and 2011 (Table 4.13). The number of casinos increased 
from 28 in 2007 to 35 in 2012, and the number of gaming tables and slot machines also increased significantly. 
 WT/TPR/S/281 • Macao, China 
 
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  Table 4.13 Gaming gross revenue 
Type 2007 2008  2009  2010  2011 2012 Q1  
Gaming gross revenue 
(MOP billion)  84 109.8 120.4 189.6 269.1 74.6 
  Games of fortune 83 108.8 119.4 188.3 267.9 74.3 
Number of casinos 28 31 33 33 34 35 
Number of gaming 
tables 4,375 4,017 4,770 4,786 5,302 5,242 
Number of slot 
machines 13,267 11,856 14,363 14,058 16,056 16,102 
Source: Macao Gaming Inspection and Coordination Bureau. 
4.78.  Gaming plays a dominant role in the economy with gaming tax accounting for around 80% 
of current revenue. However, this dominance under scores a degree of risk for the economy. With a 
limited labour supply and a high demand for casino staff, various other industries in Macao SAR have been confronted with considerable upward pressure on labour and other operating costs, 
such as land. Local SMEs have to compete for resources, and as only Macao citizens may be 
employed by the concessionaires as staff working on the casino floor, many young people give up 
their opportunity of further education or entering other sectors, resulting in an insufficient supply 
of labour and human capital, and weakening Macao SAR's competitiveness. Partly to correct this 
problem, Law No. 10/2012 was passed in 2012 to increase the minimum age of those allowed to work or play in casinos from 18 to 21.  
4.79.  The Government is trying to maintain sustainable development of the gaming industry. After 
the industry had grown rapidly for several years, the Government reviewed conditions and made several decisions to regulate the scope and pace of the gaming industry's expansion. On 22 April 2008, the Chief Executive announced that the number of gaming concessions and sub-
concessions would not be increased in the foreseeable future. In February 2010, the Government 
restructured the Macao Gaming Committee, which is now chaired by the Chief Executive, and is 
responsible for formulating relevant policies for the development of the gaming industry, 
monitoring the industry's development and operat ion, and drawing up regulations and guidelines.
23 
In March 2010, the Government announced that the number of gaming tables would be limited to 5,500 up to 2013, and from 2013 to 2023, the number of tables would be restricted to an annual 
average increase of 3%. 
4.80.  As of the second quarter of 2012, about 70% of the gross gaming revenue is from VIP 
rooms. The VIP segment is highly sensitive to junket promoters, who promote casino games and 
provide players with services such as transporta tion, accommodation, catering, and entertainment, 
in return for commissions or other rewards from gaming concessionaires. Only an individual person 
or company granted a gaming promoter's licence by the DICJ is allowed to engage in gaming promotion activities. The Government began to accept applications for gaming promoter licences in 
June 2004, and by the beginning of 2012, a total of 219 licences had been issued, of which 184 to 
companies and 35 to individuals. Gaming promoters may select partners according to their business needs; however, the eligibility of their partners is subject to DICJ examination and 
approval. Gaming promoters must pay tax at a rate of 5% on commission from concessionaires 
and other remuneration they receive. All junket promoters must renew their licences annually with 
the DICJ. In the event of any violation of laws an d regulations, the junket promoters are subject to 
penalty or may have their licences suspended. 
4.81.  In 2008, the aggressive market competition resulted in "flared up prices" in junket 
commissions. Commission rates paid to junket operators to lure VIP baccarat patrons were bid up to 1.35% of chips' turnover, and consid ered "unreasonable" by local standards.
24 In response, the 
Government capped junket commissions at 1.25% of  chips' turnover from 2009, and each gaming 
concessionaire must submit a monthly report on  junket activities to the DICJ for auditing. 
4.82.  The heavily reliance on gaming means the economy is vulnerable to external shocks, such 
as supply competition (e.g. new casinos opening in Singapore and elsewhere), and demand 
                                               
23 Government Information Bureau (2011), p.265. 
24 Xinhua news  04 June 2008, "Macao Economic Chief: Junket Commissions, Gaming Table Number to 
be Kept at 'Reasonable' Level",'. Viewed at: http://english.peopledaily.com.cn/90001/90776/90882/6423770. 
html [14/09/2012]. WT/TPR/S/281 • Macao, China 
 
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  shocks. The tightening of visa control for China's residents wishing to visit Macao SAR in 2008 
resulted in a fall in tourist arrivals, a slowdown in gaming revenue growth, and a slowdown in the economy's growth. Knowing that diversifying the economy may help to increase its resistance to external shocks, the Macao SAR Government announc ed that the number of gaming tables to be 
granted in the future is to be based on the non-gaming facilities in the concessionaire's investment 
projects. Also, the Government will only focus on  processing land concession applications filed 
before 2008; concessionaires' land concession applications filed after 2009 will not be approved.  
4.83.  Given the dominance of the tourism industry, in particular the gaming sector, in the local 
economy, the Government has been making effo rts to diversify the economy. However, any 
diversification initiative is challenged by the limited size of the territory, the shortage of labour supply, and the small size of the domestic market. Regional cooperation measures, such as the 
CEPA, may provide opportunities for the further development of Macao SAR's economy by 
mitigating its development constraints (Chapter 2). WT/TPR/S/281 • Macao, China 
 
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  REFERENCES 
AMCM (2011), Monetary and Financial Stability Review , July 2011. 
AMCM (2012a), Monetary and Financial Stability Review,  January 2012. 
AMCM (2012b), Monetary and Financial Stability Review,  July 2012. 
AMCM (2012c), Report on the insurance activity of Macau of 2nd quarter 2012 . 
AMCM (2013), Monetary and Financial Stability Review , January 2013. 
APG and OGBS (2007), Mutual Evaluation Report on Macao, China , July. Viewed at: http: 
//www.apgml.org/documents/docs/ 17/Macao%20ME2% 20-%20FINAL.pdf  [08/01/13]. 
DSEC (2011), Transport, Storage and Communications Survey 2010 . Viewed at: 
http://www.dsec.gov.mo/Statistic.aspx?lan g=en-US&NodeGuid=b16dc237-dff1-40e7-9572-
826c28298660  [07/11/2012]. 
Government Information Bureau (2011), Macao, Yearbook 2011 . 
IMF (2011a), Financial Sector Stability Assessment , August. Viewed at: http: 
//www.imf.org/external/pub s/ft/scr/2011/cr11264.pdf  [22/08/2012]. 
IMF (2011b), Macao SAR of the People's Republic of Ch ina: Report on Observation of Standards 
and Codes (ROSC) - Basel Core Principles for Effective Banking Supervision , August. Viewed at: 
http: //www.imf.org/external/p ubs/ft/scr/2011/cr11265.pdf  [22/08/2012]. 
Platinum Broking (2012), Macau Gaming Sector Update , 27 February 2012. 
WTO (2007), Trade Policy Review - Macao, China, Geneva. 
 WT/TPR/S/281 • Macao, China 
 
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  5  APPENDIX TABLES 
Table A1.1 Merchandise trade by HS section, 2007-11 
(US$ million and %) 
Section Description 2007  2008  2009 2010 2011  
Exports Total (US$ million) 2,542.4  1,998.0   961.0   869.8   869.3  
  (% of total) 
I Live animals and products     0.1      0.2     0.4     0.4     0.4  
II Vegetable products     0.1      0.1     0.2     0.2     0.3  
III Animal or vegetable fats and oils  ..      0.0     0.0     0.0     0.0  
IV Prepared foodstuffs, beverages and 
tobacco     1.5      2.7     4.9     7.8     10.9  
V Mineral products     0.0      0.0     0.0     0.3     1.0  
VI Chemicals and products thereof     0.8      1.3     3.0     2.1     2.1  
VII Plastics and rubber and ar ticles thereof     0.7      0.7     1.0     1.2     1.2  
VIII Raw hides and skins; leather     0.2      0.5     1.5     1.4     1.9  
IX Wood and articles thereof      0.0      0.1     0.1     0.1     0.1  
X Pulp of wood; paper and paperboard     0.3      0.4     0.8     0.9     0.7  
XI Textiles and clothing    65.6     57.1     32.2     23.3     19.1  
XII Footwear, headgear, umbrellas      2.0      0.9     1.1     1.1     1.3  
XIII Articles of stone, ceramic; glass and 
glassware     0.9      1.1     1.5     2.3     2.5  
XIV Pearls, precious stones and metals     1.9      4.5     10.0     10.6     4.4  
XV Base metals and arti cles thereof     2.9      3.6     4.9     7.0     7.4  
XVI Machinery, electrical equipment    13.5     11.4     14.6     13.0     15.2  
XVII Transport equipment     0.4      0.6     1.6     1.2     0.7  
XVIII Precision and music instruments     0.7      1.4     5.1     6.3     5.2  
XIX Arms and ammunition  ..   ..   ..   ..   ..  
XX Manufactured articles n.e.s.     1.9      2.9     6.0     5.5     6.3  
XXI Works of art     0.0      0.1     0.1     0.0     0.0  
 Other (including confidential data)     6.5     10.5     10.9     15.3     19.3  
Imports Total (US$ million) 5,365.1  5,365.5  4,621.9 5,513.3 7,768.1  
  (% of total) 
I Live animals and products     2.9      3.5     5.0     5.0     4.4  
II Vegetable products     0.9      1.1     1.5     1.4     1.2  
III Animal or vegetable fa ts and oils     0.2      0.3     0.4     0.3     0.3  
IV Prepared foodstuffs, beverages and 
tobacco     7.9      8.1     10.5     10.9     10.8  
V Mineral products    12.1     13.8     13.1     12.2     10.9  
VI Chemicals and products thereof     4.2      5.0     6.6     6.5     5.6  
VII Plastics and rubber and ar ticles thereof     1.4      1.3     1.1     1.0     0.8  
VIII Raw hides and skins; leather     1.1      2.0     3.3     4.6     6.6  
IX Wood and articles thereof      0.3      0.3     0.3     0.2     0.2  
X Pulp of wood; paper and paperboard     1.1      1.0     1.1     1.0     0.8  
XI Textiles and clothing    17.4     12.9     6.8     5.7     4.9  
XII Footwear, headgear, umbrellas      1.2      1.2     1.4     1.7     2.0  
XIII Articles of stone, ceramic; glass and 
glassware     1.7      1.7     1.2     0.9     0.8  
XIV Pearls, precious stones and metals     3.5      5.2     7.5     9.8     13.2  
XV Base metals and arti cles thereof     6.6      6.3     3.0     2.4     2.5  
XVI Machinery, electrical equipment    22.3     19.6     17.5     17.6     17.2  
XVII Transport equipment     5.0      5.0     5.3     6.2     5.3  
XVIII Precision and music instruments     3.4      5.3     7.0     7.8     7.7  
XIX Arms and ammunition  ..   ..   ..   ..   ..  
XX Manufactured articles n.e.s.     6.3      5.5     5.9     4.2     4.1  
XXI Works of art     0.1      0.0     0.1     0.0     0.1  
 Other (including confidential data)     0.3      1.0     1.4     0.3     0.7  
.. Not available 
Note: Numbers have to be read carefully due to "con fidential data". For example exports under HS Section 
III are not exactly 0% but due to confidentiality th e exact figure cannot be calculated. Confidential 
data can be found under all HS sections an d are relatively important under exports. 
Source: WTO calculations, based on data prov ided by the authorities of Macao, China. WT/TPR/S/281 • Macao, China 
 
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  Table A1.2 Merchandise impo rts, by origin, 2007-11 
(US$ million and %) 
  2007  2008  2009 2010 2011  
Total imports (US$ million) 5,365.1  5,365.5  4,621.9 5,513.3 7,768.1  
 (% of total) 
 America 6.4 6.8 7.2 7.1 7.1 
  United States 5.6 5.5 6.0 5.9 6.0 
  Other America 0.7 1.3 1.2 1.2 1.1 
   Brazil 0.2 0.3 0.5 0.4 0.4 
 Europe 18.1 21.4 27.8 30.3 32.4 
  EU(27) 15.7 16.5 21.2 22.6 24.9 
   France 4.2 5.3 8.0 9.2 10.1 
   Italy 1.6 2.8 4.6 4.7 7.6 
   Germany 4.4 2.6 2.9 3.0 2.5 
   United Kingdom 1.8 1.9 2.1 1.9 1.6 
   Finland 1.0 1.4 1.3 1.4 0.8 
   The Netherlands 0.4 0.4 0.4 0.5 0.5 
   Ireland 0.2 0.1 0.3 0.4 0.4 
   Spain 0.3 0.6 0.4 0.5 0.3 
   Portugal 0.4 0.4 0.4 0.3 0.3 
  EFTA 2.3 4.8 6.5 7.6 7.3 
   Switzerland 2.3 4.7 6.4 7.6 7.2 
  Other Europe 0.1 0.1 0.1 0.1 0.2 
 Commonwealth of Independent States (CIS) 0.0 0.0 0.0 0.1 0.0 
 Africa 0.3 0.4 0.5 0.6 0.5 
   South Africa 0.3 0.3 0.5 0.5 0.4 
 Middle East 0.5 0.7 0.6 0.6 0.3 
 Asia 74.6 70.8 63.8 61.4 59.7 
  China 42.6 39.3 31.4 31.1 30.7 
  Japan 9.0 8.5 8.2 8.6 6.3 
  Six East Asian Traders 20.5 20.9 21.2 19.0 20.4 
   Hong Kong, China 10.1 10.1 10.9 10.5 12.2 
   Singapore 3.1 3.8 3.2 1.9 2.2 
   Chinese Taipei 3.5 3.3 3.0 2.4 2.1 
   Korea, Rep. of 1.5 1.2 1.6 1.5 1.6 
   Thailand 1.0 1.2 1.3 1.5 1.2 
   Malaysia 1.2 1.2 1.2 1.2 1.1 
  Other Asia 2.5 2.1 3.0 2.6 2.4 
   Australia 1.5 0.9 1.4 1.0 1.1 
   Indonesia 0.5 0.5 0.6 0.8 0.5 
Source:  WTO calculations based on data rece ived from the authorities of Macao, China. WT/TPR/S/281 • Macao, China 
 
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  Table A1.3 Merchandise export s, by destination, 2007-11 
(US$ million and %) 
  2007  2008  2009  2010 2011  
Total exports (US$ million) 2,542.4  1,998.0  961.0  869.8 869.3  
 (% of total) 
 America 42.3 42.0 19.2 13.5 9.8 
  United States 40.6 39.9 17.1 11.2 8.0 
  Other America 1.7 2.1 2.1 2.3 1.8 
   Mexico 0.7 1.1 1.1 1.4 0.9 
   Canada 0.8 0.8 0.6 0.5 0.5 
   Panama 0.2 0.1 0.3 0.3 0.3 
 Europe 18.5 10.2 8.4 6.0 5.6 
  EU(27) 18.2 9.9 8.2 5.9 5.5 
   Germany 6.4 4.0 3.9 2.0 1.8 
   France 3.0 1.3 1.1 1.0 1.3 
   The Netherlands 1.1 0.8 0.9 1.1 1.2 
   United Kingdom 4.0 2.0 1.3 0.9 0.7 
   Italy 1.2 0.6 0.2 0.2 0.2 
  EFTA 0.1 0.1 0.0 0.1 0.1 
   Switzerland 0.1 0.1 0.0 0.1 0.1 
  Other Europe 0.1 0.2 0.1 0.0 0.0 
 Commonwealth of Independent States (CIS) 0.0 0.0 0.0 0.0 0.0 
 Africa 0.1 0.1 0.1 0.2 0.2 
   South Africa 0.1 0.1 0.1 0.1 0.1 
 Middle East 0.1 0.3 0.2 0.1 0.1 
   United Arab Emirates 0.1 0.2 0.2 0.1 0.1 
 Asia 33.1 37.9 63.0 68.6 68.6 
  China 14.9 12.3 14.6 15.8 15.7 
  Japan 1.1 1.3 1.4 1.6 2.1 
  Six East Asian Traders 14.9 21.8 42.7 47.2 47.8 
   Hong Kong, China 13.1 19.7 39.3 43.1 44.6 
   Chinese Taipei 1.2 1.4 2.1 2.5 1.5 
   Singapore 0.2 0.3 0.6 1.0 0.9 
   Malaysia 0.2 0.2 0.6 0.3 0.6 
   Korea, Rep. of 0.1 0.1 0.1 0.1 0.1 
  Other Asia 2.2 2.5 4.4 4.1 3.0 
   Viet Nam 0.7 1.1 2.3 2.7 1.7 
   Australia 0.3 0.3 0.4 0.4 0.5 
   Cambodia 0.5 0.2 0.0 0.0 0.3 
   Philippines 0.5 0.8 1.3 0.7 0.3 
Othera 5.9 9.5 9.1 11.6 15.7 
a Based on the regulations of statistical confidenti ality, data of some products are not published. 
Source: WTO calculations based on data rece ived from the authorities of Macao, China. WT/TPR/S/281 • Macao, China 
 
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  Table A2.1 Main trade and in vestment related legislation 
Subject Date Legislation Content 
Foreign trade 10.08.2009 Law No. 16/2009 - 
Amendments to Commercial 
Code Commercial Code amendments 
26.12.2003 Chief Executive's Decision 
No. 28/2003 Mainland and Macao Closer Economic 
Partnership Arrangement: covers trade in 
goods, services, and trade and investment 
facilitation issues 
23.06.2003  Foreign Trade Law No. 7/2003 General principles of foreign trade and 
mechanisms for import, export, and 
transit to/from Macao, China 
22.09.2003 Administrative Regulation 
No. 28/2003 Regulations on foreign trade activities 
22.09.2003 Chief Executive's Decision 
No. 224/2003 Fees collected on issue of certificates of 
origin 
03.01.2012 Chief Executive's Decision 
No. 452/2011 Competent public auth orities responsible 
for licensing, goods exempted from 
control, and goods subject to sanitary 
inspection 
12.03.2012 Chief Executive's Decision 
No. 45/2012 - Amendments to 
Chief Executive Decision 
No. 452/2011 The amount of tobacco products that an 
individual is allowed to bring to the MSAR 
was reduced 
15.09.2003 Administrative Regulation 
No. 29/2003 - Regulation on 
Certificate of Origin Regulation on certificate of origin 
Customs 
clearance 06.08.2001 Law No. 11/2001 Customs Services Law 
29.01.1996 Decree-Law No. 7/96/M Regulations for transit activities, and 
system 
20.06.2005 Administrative Regulation No. 
8/2005 – Amendments to 
Decree-Law No. 7/96/M Amendments to the transit activities 
system 
22.09.2003 Chief Executive's Decisions 
No. 225/2003 Importation of goods not covered by the 
licensing system, customs clearance 
11.04.1994 Decree-Law No. 18/94/M Regulation on sales at duty-free shops 
21.12.1992 Decree-Law No. 79/92/M Temporary importation and storage of 
durable commodities for consumption tax 
purposes 
08.11.1999 Decree-Law No. 77/99/M Arms and ammunition regulation 
10.08.2009 Law No.17/2009 Law prohibiting the illicit production, 
supply, and consumption of narcotic drugs 
and psychotropic substances 
23.11.2009 Chief Executive's Decision 
No. 441/2009 Stipulation on the use of ATA carnets for 
temporary import and export 
Import 
prohibitions, 
restrictions, 
and licensing 04.12.1995 Decree-Law No. 62/95/M Measures to control and reduce the use of 
substances depleting the ozone layer 
02.05.2005 Chief Executive' s Decision 
No. 120/2005 Prohibition of imports and manufacture of 
medicines made from animals with Bovine 
Spongiform Encephalopathy (BSE) 
19.10.1998 Government Decision 
No. 219/98/M Import restriction on used motor vehicles 
and heavy passen ger vehicles. 
09.11.2009 Chief Executive's Decision 
No. 425/2009 Import quotas for HCFCs substances 
27.09.1999 Decree-Law No. 51/99/M Regulation on commercial and industrial 
activities related to computer programs, 
phonograms, and videograms 
09.12.2003 Chief Executive's Decision 
No. 272/2003 Prohibition of import, export, and transit 
of chemical materials and their precursors 
14.11.1994 Decree-Law No. 53/94/M Licensing requirements  for establishments 
engaged in prescribing and trade of 
traditional Chinese medicine WT/TPR/S/281 • Macao, China 
 
- 81 - 
 
  Subject Date Legislation Content 
Business 
licensing 10.07.1995 Decree-Law No. 30/95/M Regulations on pharmaceuticals 
advertisements 
19.09.1990 Decree-Law No. 58/90/M Regulations on the profession of 
pharmacists and related activities  
31.12.1990 Decree-Law No. 84/90/M Regulations on licensing requirements for 
providing private health care and nursing 
services 
19.09.1990 Decree-Law No. 59/90/M Registration of pharmaceutical products 
08.11.1999 Decree-Law No. 77/99/M Arms and ammunition regulation 
Standards and 
technical 
requirements 30.01.2012 Administrative Regulation 
No. 1/2012 Gas emission standards of new imported 
vehicles 
06.12.2010 Chief Executive's Decision 
No. 356/2010 Approved the tables of parameters of gas 
pollutant emissions which substituted 
Tables I and II of Annex II of 
Administrative Regulation No. 1/2008 
27.07.2005 Technical Instruction 
No. 3/2005 and No.4/2005 Rules on packaging of pharmaceutical 
products 
23.11.2000 Technical Instruction 
No. 2/2000 Documents requirement for the 
importation of pharmaceutical products 
07.08.2007 Microbiological Guidelines for 
Ready-to-eat Food (S AL 015-
2007) Microbiological guidelines for ready-to-eat 
food 
Sanitary and 
phytosanitary 
requirements 22.12.2004 Administrative Regulation 
No. 40/2004 General control measures of SPS 
inspection 
29.09.1986 Decree-Law No. 45/86/M Regulations in relation to CITES 
27.12.2004 Chief Executive's Decision 
No. 310/2004 Regulation on operations of wholesale 
markets 
29.01.2004 Chief Executive's Decision 
No. 7/2004 Temporary suspension of imports of 
poultry products (due to H5N1) from 
Korea, Viet Nam, Japan, Thailand, 
Cambodia, Laos, Indonesia, Chinese 
Taipei, etc.  
31.12.2007 Chief Executive's Decision 
No. 341/2007 Temporary suspension of imports of 
bovine meat products 
Labelling 
requirements 17.08.1992 Decree-Law No. 50/92/M Food labelling 
01.03.2004 Administrative Regulation 
No. 7/2004 - Amendments to 
Decree-Law No. 50/92/M Amendments to food labelling 
21.11.1994 Decree-Law No. 56/94/M – 
Amendments to Decree-Law 
No. 50/92/M Amendments to food labelling 
11.01.2010 Chief Executive's Decision 
No. 556/2009 Regulation on food additives 
Environmental 
requirements 04.12.1995 Decree-Law No. 62/95/M Measures to control and reduce the use of 
substances depleting the ozone layer 
23.01.2006 Executive Order No. 4/2006 Establishing limits on sulphur in gasoline 
14.11.1994 Decree-Law No. 54/94/M Prevention of certain noise pollution 
Government 
procurement 15.12.1984 Decree-Law No. 122/84/M of 15 
December 1984 – 
Establishment of Construction 
Fees Regulation of Assets 
Purchase and Services 
Acquisition Expenditures on construction projects and 
labour costs, models, and contracts of 
outsourcing activities, as well as 
monitoring of expenditures 
06.07.1985 Decree-Law No. 63/85/M Procedures for the public procurement of 
goods and services  
15.05.1989 Decree-Law No. 30/89/M Amendments to the Decree-Law 
No. 122/84/M WT/TPR/S/281 • Macao, China 
 
- 82 - 
 
  Subject Date Legislation Content 
 08.11.1999 Decree-Law No. 74/99/M of 
8 November 1999 – Approved 
Policy Regime of Public 
Construction Sub-contracting 
Agreements Legal procedures on public construction 
sub-contracting and legal structure of 
agreements and documents. Provides the 
proper rules for processing the call for 
tenders for a public construction project 
24.04.2006 Administrative Regulation 
No. 6/2006 Regulation on the System of Public 
Financial Administration 
10.08.2009 Administrative Regulation 
No. 28/2009 Amendments to Regulation on the System 
of Public Financial Administration 
Taxation and 
incentives 13.12.1999 Law No. 4/99/M - Consumption 
Tax Regulation  Consumption tax regulation 
25.08.2008 Law No. 8/2008 – Amendments 
to Law No. 4/99/M Alcohol products with alcoholic volume 
less than 30%; fuel and lubricants are 
exempted from consumption tax 
25.05.2009 Law No. 7/2009 – Amendments 
to Law No. 4/99/M and Law 
No.8/2008 Consumption tax on tobacco products 
increased on three occasions 
19.12.2011 Law No. 11/2011 – 
Amendments to Law 
No. 4/99/M, Law No. 8/2008 
and Law No. 7/2009 Consumption tax of tobacco products is 
increased by 150% 
06.02.2012 Law No. 1/2012 Amendment to 
Law No. 5/2002 Amendments to motor vehicle tax 
regulation 
07.03.2011 Law No. 1/2011 Amendments to property tax regulation 
03.05.2011 Law No. 4/2011 Amendments to stamp duty regulation 
13.06.2011 Law No. 6/2011 Special stamp duty on the transfer of 
immovable residential property 
27.04.2009 Law No. 4/2009 Amendments to the general table of stamp 
duty 
26.12.2001 Law No. 18/2001 Amendments to stamp duty regulation 
24.08.2009 Law No. 20/2009 Exchange of tax information 
26.03.2012 Administrative Regulation 
No. 11/2012 Amendments to the regulation on SME aid 
scheme 
22.06.2009 Administrative Regulation 
No. 19/2009 Amendments to the regulation on SME 
credit guarantee scheme designed for 
special projects 
12.07.1993 Decree-Law No. 35/93/M Amendments to the legislation on tax 
incentives within the area of industrial 
policies 
08.02.1986 Law No. 1/86/M Legislation on tax incentives within the 
area of industrial policies 
30.05.2011 Administrative Regulation 
No. 10/2011 Amendments to the regulation on interest 
subsidies to businesses 
08.06.2009 Administrative Regulation 
No. 16/2009 Regulation on interest subsidies to 
businesses 
Competition 
policy 03.11.2009 Administrative Regulation 
No. 34/2009  Tariff tables for ferry routes operated by 
holders of regular maritime passenger 
transport operating licence 
Intellectual 
property rights 
protection 13.12.1999 Decree-Law No. 97/99/M Industrial property code 
16.08.1999 Decree-Law No. 43/99/M Copyright and related rights code 
10.04.2012 Law No. 5/2012 Amendments to the Decree-Law 
No. 43/99/M regulating the protection of 
copyright and related rights WT/TPR/S/281 • Macao, China 
 
- 83 - 
 
  Subject Date Legislation Content 
Banking, 
insurance and 
securities 09.07.2012 Law No.9/2012 Deposit Protection Regime Law 
05.07.1993 Decree-Law No. 32/93/M Macao financial system law  
18.10.1999 Decree-Law No. 58/99/M Banking Offshore regime 
26.02.1983 Decree-Law No. 15/83/M Regulation on the business of finance 
companies 
30.06.1997 Decree-Law No. 27/97/M Macao insurance ordinance 
05.06.1989 Decree-Law No. 38/89/M Insurance agents & brokers ordinance 
15.09.1997 Decree-Law No. 38/97/M Regulations on money changers 
05.05.1997 Decree-Law No. 15/97/M Regulations on cash remittance companies 
22.11.1999 Decree-Law No. 83/99/M Regulations on investment funds and fund 
management companies 
Telecom 14.08.2001 Law No. 14/2001 Basic telecommunications law 
15.04.2002 Administrative Regulation 
No. 7/2002  Regulation on the operation of public 
telecommunications networks and the 
provision of public mobile 
telecommunications services 
04.11.2002 Administrative Regulation 
No. 24/2002 Regulation on the provision of internet 
services 
30.12.2011 Administrative Regulation 
No. 41/2011 Regulation on the installation and 
operation of the fixed public 
telecommunications network. 
Postal services 29.11.1999 Decree-Law No. 88/99/M General principles for the provision of 
postal services, set up and usage of postal 
infrastructure 
Air 
transportation 05.04.2004 Administrative Regulation 
No. 10/2004 Basic principles of civil aviation activities. 
14.07.2008 Administrative Regulation 
No. 18/2008  Amendments to Administrative Regulation 
No.10/2004 
11.02.2011 Executive Order No. 8/2011 Approved and issued the Air Navigation 
Regulation 
Maritime 
transportation 13.12.1999 Decree-Law No. 109/99/M Regulation on maritime trade 
29.11.1999 Decree-Law No. 90/99/M Law on maritime activities 
29.03.1999 Decree-Law No. 14/99/M Regulation on maritime pilotage 
Professional 
services 01.11.1999 Decree-Law No. 71/99/M The statute of registered auditors 
01.11.1999 Decree-Law No. 72/99/M The statute of registered accountants 
Tourism 18.07.2011 Administrative Regulation 
No. 18/2011 Regulation on the organization and 
operation of Macau Government Tourist 
Office (MGTO). 
30.12.2004 Administrative Regulation 
No. 42/2004 Regulation on travel agencies and tourist 
guides 
19.08.1996 Law No. 19/96/M Tourism tax law 
01.04.1996 Government Decision 
No. 83/96/M Regulation on hotel and similar industries 
11.12.1989 Decree-Law No. 81/89/M Legal framework for tourism industry 
26.10.1998 Decree-Law No. 47/98/M Licensing of specific economic activities 
28.07.2003 Law No. 10/2003  Amendment to Decree-Law No. 47/98/M WT/TPR/S/281 • Macao, China 
 
- 84 - 
 
  Subject Date Legislation Content 
Foreign 
investment 10.08.2009 Law No. 16/2009 – 
Amendments to Commercial 
Code Regulating Commercial activities and 
commercial contracts 
11.10.1999 Decree-Law No. 56/99/M - 
Commercial Regi stration Code Registration of companies and firms 
27.04.2000 Law No. 5/2000 Amendments to Decree-Law No.56/99/M 
and repeal certain provisions of 
Commercial Regi stration Code 
23.04/2012 Law No. 6/2012 Amendments to Commer cial Registration 
Code 
23.06.2003 Foreign Trade Law No. 7/2003 General principles of foreign trade and 
mechanisms for import, export, and 
transit to/from Macao, China 
Source: Information provided by the authorities of Macao, China. WT/TPR/S/281 • Macao, China 
 
- 85 - 
 
  Table A4.1 Macao SAR air services agreements, October 2012  
Countries Date of Signature 
Brazil 15/07/94 
Finland 09/09/94 
Austria 04/11/94 
Belgium 16/11/94 
Netherlands 16/11/94 
Luxembourg 14/12/94 
New Zealand 09/03/95 
Portugal 31/08/95 
Switzerland 05/09/95 
Singapore 27/10/95 
Malaysia 31/10/95 
Thailand 01/11/95 
United States of America 03/07/96 
Viet Nam 07/08/96 
Germany 05/09/96 
Democratic People's Republic of Korea 08/12/96 
Denmark 12/12/96 
Sweden 12/12/96 
Norway 12/12/96 
Republic of Korea 03/04/97 
Philippines 18/07/97 
India 11/02/98 
Nepal 19/02/98 
South Africa 04/04/98 
Brunei 24/05/98 
United Arab Emirates 06/12/98 
Russia 21/01/99 
Myanmar 12/03/99 
Australia 24/08/99 
Poland 22/10/99 
Pakistan 15/11/00 
Czech Republic 25/09/01 
Cambodia 12/12/01 
United Kingdom 19/01/04 
Iceland 13/07/04 
Maldives 16/01/06 
France 23/05/06 
Sri Lanka 08/06/06 
Mongolia 27/06/06 
Japan 10/02/10 
Oman Initialled on 15/09/98 
Indonesia Initialled on 10/05/01  
Israel Initialled on 15/09/05  
Greece Initialled on 17/02/06  
Slovak Republic Initialled on 03/03/06  
Laos Initialled on 23/11/10  
Cape Verde Initialled on 10/12/10  
Source: Information provided by the authorities of Macao, China. 
__________