WORLD TRADE  
ORGANIZATION  WT/REG162/1/Add.1 
21 January 2005 
 
 (05-0268) 
Committee on Regional Trade Agreements Original:   English 
  
 
CLOSER ECONOMIC PARTNERSHIP ARRANGEMENT 
BETWEEN CHINA AND HONG KONG, CHINA 
 
Addendum
 
 
 
 The following communication, dated 19 January 2 005, is being circulated at the request of the 
Delegations of China and Hong Kong, China. 
 
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SUPPLEMENT TO THE MAINLAND AND HONG KONG CLOSER ECONOMIC 
PARTNERSHIP ARRANGEMENT* 
  
 To further enhance the level of economic a nd trade exchanges and cooperation between the 
Mainland
1 and the Hong Kong Special Administrative Region (hereinafter referred to as “Hong 
Kong”), and pursuant to the requirements of  the Mainland and Hong Kong Closer Economic 
Partnership Arrangement (hereinafter referred to as “CEPA”) signed on 29 J une 2003 and its Annexes 
signed on 29 September 2003, the two sides agreed to sign this Supplement to further liberalize trade 
in goods and trade in services in the Mainland for Hong Kong. 
  
I. TRADE IN GOODS 
1. From 1 January 2005, the Mainland shall apply zero tariff to imported goods of Hong Kong 
origin as set out in Annex 1 of this Supplement. A nnex 1 of this Supplement is a supplement to Table 
1 of Annex 1 of “CEPA”- “List of Hong Kong Orig in Products for Implementation of Zero Import 
Tariff by the Mainland” . 
2. The rules of origin for imported goods of Ho ng Kong origin listed in Annex 1 of this 
Supplement, which were drawn up pursuant to Annex 2 of “CEPA” – “Rules of Origin for Trade in 
Goods”, are set out in Annex 2 of this Supplement . Annex 2 of this Supplement is a supplement to 
Table 1 of Annex 2 of “CEPA”- “Schedule on Rules of Origin of Hong Kong Goods Subject to Tariff 
Preference for Trade in Goods”. 
 
                                                     
 
* The Annexes of the Supplement have been submitted to the Secretariat for consultation by interested 
Members (office 1174). They  are also available at http://www.tid.gov.hk/english/cepa/cepa2.html  and 
http://english.mofcom.gov.cn/static/ hongkong/topic/cepa/ hongkong.html/1 . 
1 In "CEPA", the "Mainland" refers to the entire customs territory of China. WT/REG162/1/Add.1 
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 II. TRADE IN SERVICES 
1. From 1 January 2005, the Mainland shall furt her relax the market access conditions for 
services and service suppliers of Hong Kong in the areas of legal, accounting, medical, audiovisual, 
construction, distribution,  banking, securities, transport, freight  forwarding agency, on the basis of 
Annex 4 of “CEPA” - “Specific Commitments on Liberalization of Trade in Services”, and shall 
expand the geographical and business scope of indivi dually owned stores established in the Mainland 
by Hong Kong permanent residents with Chinese citi zenship. The specific contents are detailed in 
Annex 3 of this Supplement. 
2. From 1 January 2005, the Mainland shall liberali ze and relax the market access conditions for 
services and service suppliers of Hong Kong in the ar eas of patent agency, trademark agency, airport 
services, cultural entertainment, information tec hnology, job referral agency, job intermediary, and 
professional qualification examinations. The specific  contents are detailed in Annex 3 of this 
Supplement.   
3. Commitments in the area of construction and part of the commitments in the area of 
distribution, as set out in Annex 3 to this Suppl ement, have already been implemented from 28 
August 2004. The specifics are set out in the specific commitments of construction and related 
engineering services, and distribution services in Annex 3 of this Supplement.  The commitment with respect to Mainland branches of Hong Kong banks co nducting insurance agents business, as set out in 
Annex 3 of this Supplement, shall be implemented from 1 November 2004. 
4. Annex 3 of this Supplement is a supplement and amendment to Table 1 of Annex 4 of 
“CEPA” – “The Mainland’s Specific Commitments on Liberalization of Trade in Services for Hong 
Kong”. In the event of conflict between the provisi ons of the two instruments, the provisions of 
Annex 3 of this Supplement shall prevail. 
5. “Service suppliers” as referred to in Annex 3 of this Supplement should meet the relevant 
requirements of Annex 5 of “CEPA” – “Definition of  “Service Supplier” and Related Requirements”. 
2. Supplements and Amendments to Annexes to “CEPA” 
1. Article 5(3)2. of Annex 1 of “CEPA” – “Arrange ments for Implementation of Zero Tariff on 
Trade in Goods” is amended as follows: For goods proposed to be produced, the Mainland shall, in accordance with the consen sus reached between the two sides, add the list of goods concerned to 
Table 1 of Annex 1 of “CEPA” and the rules of orig in of the goods concerned to Table 1 of Annex 2 
of “CEPA”.  After the applicant has put the proposed goods into production, the Hong Kong Trade and Industry Department shall c onduct verification jointly with the Hong Kong Customs and Excise 
Department and inform the Ministry of Commerce.  The Mainland shall, after confirmation by both 
sides, release the relevant imports on zero tari ff basis in line with “CEPA” upon presentation of the 
certificates of origin issued by the Hong Kong issuing authorities. 
2. The following is added to Article 3.1.2(2) of  Annex 5 of “CEPA” – “Definition of “Service 
Supplier” and Related Requireme nts”: A Hong Kong service supplier providing air transport ground 
services should have obtained the relevant licence in  the provision of the relevant air transport ground 
services in Hong Kong, and have engaged in subs tantive business operations for 5 years or more. 
3. Annexes 
 The Annexes to this Supplement form an integral part of this Supplement. 
  WT/REG162/1/Add.1 
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 4. Coming into Effect 
 This Supplement shall come into effect on the day of signature by the representatives of the 
two sides.   Signed in duplicate in Hong Kong, this 27th day of October, 2004 in the Chinese language. 
 
  Vice Minister of Commerce  Financial Secretary   People's Republic of China Hong Kong Special Administrative 
  Region of the People’s Republic of China 
 
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