WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 28 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Since its previous Trade Policy Review, in 2001, Macao, China has undertaken steps to 
facilitate trade and strengthen the enforcement of in tellectual property rights. Its trade and investment 
regime remains among the most open in the world a nd, in general, it continues to rely on market 
forces to determine the allocation of resources.  The most important economic policy action during 
the review period has been the liberalization of  the gaming sector where the potential for growth 
seems considerable;  competition is strong and is expected to further intensify. 
2. There are few border restrictions.  Imports en ter the Region duty free although the scope of 
Macao, China's tariff bindings remains limited:  less  than 30% of its tariff lines have been bound.  
Bound tariff lines are bound at a zero rate, and the status of Macao, China as a free port under the Basic Law would appear to exclude increases in applied rates for unbound tariff lines.  Although consumption taxes on certain goods are levied on impor ts and domestic producti on alike, in practice, 
they fall mainly on imports since there is little or no domestic production of these goods.  Steps in 
trade facilitation have focused on the introduction of  electronic customs clearance and documentation 
procedures.  Non-tariff border measures are fe w and involve measures like import licensing and 
prohibitions, which are aimed at ensuring security as well as protecting public health and the environment. Correspondingly, there are virtuall y no government controls on exports other than 
export licensing and restrictions to implem ent UN sanctions;  arrangements under the WTO 
Agreement on Textiles and Clothing were eliminated at the end of 2004.  Macao, China has no legal 
instrument protecting domestic producers from the en try of dumped or subsidized products, nor is 
there any legislation on safeguards.  
3. Macao, China, which is not a pa rty to the GPA, has not made any significant changes to its 
legislation on government procurement since 2001, but it has taken steps to simplify procedures and 
enhance transparency in order to attract more bids.  
4. Macao, China's tax system is characterized by a low overall level of taxation and a 
pronounced reliance on direct taxes, in particul ar those derived from gaming, which account for 
two thirds of government revenue.  Most direct taxes, including those on profits and employment 
income, are levied at low rates, which contributes to making Macao, China attractive to domestic and 
foreign investors.  At the same time, the tax syst em is the main instrument used to assist production 
and trade, and various tax incentives are made available for projects that promote industrial 
diversification, create employment, foster technol ogical development, and encourage exports. The 
Government has also increased funds for small and medium-sized enterprises. 
5. During the review period, Macao, China has made a number of improvements to reinforce 
protection of intellectual property rights.  It has tightened controls over optical disc manufacturing and stepped up street-level IPR enforcement.  Also, Maca o, China's courts have implemented an expedited 
prosecution system that allows a suspect to be broug ht to trial expeditiously.  As a result, it appears 
that virtually all illicit optical disc manufactur ers in Macao, China have been shut down. 
6. Although Macao, China has no broad  competiti on policy as such, the 1999 Commercial Code 
lays down general rules to protect economic free dom and curb business practices that restrain 
competition.  At the sectoral level, the most important economic policy action during the review 
period to open up competition has been the libera lization of the gaming sector after the private 
monopoly officially ended in 2002.  In the teleco mmunications sector the mobile phone market has 
been liberalized.  However, other key services, su ch as basic telecommunications, electricity, water, Macao, China WT/TPR/S/181/Rev.1 
 Page 29 
 
 
and transport continue to be provided by private companies with exclusive rights under government 
concessions, due, according to the authorities,  to th e limited geographical size of the MSAR as well 
as its small domestic market.  
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures 
7. The Macao Foreign Trade Law No. 7/2003, en acted in June 2003, replaced Decree-Law 
No. 66/95/M and Government Decision No. 158/96/M of 1996 to become the legal basis for all foreign trade operations.  The authorities explain that the new law was implemented to streamline 
administrative procedures.  Since the previous am endment of the Foreign Trade Law in 1998, Macao, 
China experienced various changes:  the handove r to China, the establishment of the Customs 
Services, and the development of the logistic industr y.  In this regard, it was necessary to revise the 
law to accommodate development of both the fore ign and domestic trading environments.  Under the 
law, the following are considered to be foreign tr ade activities:  trading of goods whose value exceeds 
P 5,000;  trading of goods for which prior approval is required;  import and transit of goods for which 
SPS-related quarantine is required;  and export of goods for which a certificate of origin is needed.  
Pursuant to the provisions of the new legislation, a ll natural or legal persons that have met their tax 
obligations, particularly in relati on to business and consumption tax, are eligible to carry out foreign 
trade activities.  Forwarding activities bringing good s into and out of Macao, China continue to be 
governed by Decree-Law No. 7/96/M of January 1996. 
8. In accordance with the 2003 Foreign Trade Law, goods may enter Macao, China after 
submission of a completed import/export declaration form to the Macao Customs Services for 
customs clearance.  However, some commodities are subject to licensing, where prior authorization is 
required to import.  Commodities with a total va lue of less than P 5,000 may be exempted from 
submission of declaration forms as long as a commer cial invoice is available for customs valuation 
purposes;  commodities for personal consumption are al so exempted.  Normally, all products entering 
into Macao, China under either the declaration or licence system are subject to a compulsory 
document check, where a physical check is carri ed out randomly by Customs Officers at the 
checkpoints.  A full check may be made on commodities that are targets of susp icion, intelligence or 
selected by risk assessment. 
9. In order to facilitate customs clearance pro cedures and simplify foreign trade activities, 
Macao, China implemented an EDI (Electronic Data Interchange) system in 1999, which allows the 
electronic transmission of both the application a nd the approval of licences and declarations.  A 
joint-venture organization consisti ng of local private enterprises and the Government (the TEDMEV) 
was set up in early 2000 to implement effective EDI services to facilitate, inter alia,  international 
trade documentation.  The Government, together with the Industrial and Commercial Development 
Fund (FDIC), took complete ownership of the TE DMEV in 2004 to further expand electronic data 
exchange applications and enhance EDI services for almost all types of licences and declarations for 
foreign trade operations, thereby improving the effici ency of customs clearance procedures as well as 
the accuracy of trade data.  Acco rding to the authorities, in the near future, paperless customs 
clearance procedures will be more efficiently impl emented for trade facilitation purposes.  The Macao 
Customs Services has set up an information network to link up computer systems at checkpoints, so that trade data and other information can be shared  internally.  Besides EDI, performance targets have 
been established to ensure that, under normal ci rcumstances, customs clearance procedures are 
completed within 20 minutes at borders. WT/TPR/S/181/Rev.1 Trade Policy Review 
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10. Appeals against Customs' decisions on administrative matters are generally filed with the 
Administrative Court.  Since November 2001, ther e have been 42 administrative appeal cases:  
Customs won 23 cases, lost 12 cases, and the 7 rema ining cases are still under judicial review.  
According to the authorities, any concerned party may challenge Macao Customs' decisions in terms 
of an administrative penalty, by filing an appeal in  accordance with the administrative procedure.  The 
alleged offender must hire a lawyer to file an a ppeal with the Court of Appeal.  If the offender does 
not accept the decision of the Court the lawyer may appeal in the Court of Final Appeal. 
(ii) Customs valuation and rules of origin 
(a) Customs valuation 
11. Since Macao, China is a free port under its Basic Law, there are no customs duties or fees on 
incoming or outgoing goods.  Article 21 of the Consumption Tax Regulation stipulates that import 
valuation is based on the c.i.f. va lue of goods;  under Article 24, if Macao Economic Services (MES) 
is sceptical about the value declared, the importer wi ll be notified to amend it within ten days.  If MES 
is doubtful about the re-declared value, the rules of the WTO Customs Valuation Agreement would be 
applied.   
(b) Rules of origin  
12. As Macao, China  applies no import tariffs, it has no preferential or non-preferential rules of 
origin for imports.  Generally, no certificate of origin  is required for imports of goods.  In case of re-
exports, the initial origin conferred is maintained.  In  order to be eligible fo r duty-free tariff treatment 
under the CEPA, products from Macao, China should observe the agreed rules of origin requirements.
1 
(iii) Tariffs 
13. No tariffs are applied to imports entering Macao , China. Its history as a free port has shaped 
its policy on tariffs and, apparently, no change in this status is envisaged.  Macao, China implemented 
the HS 2002 nomenclature on 1 January 2002 and has bound 28.6% of its tariff lines at zero, 
including all agricultural products lis ted in Annex I to the Agreement on Agriculture and nearly 7% of 
manufactured goods.2  Bound and partially bound tariffs on manufactured goods include items in 
HS chapters:  26, 28, 29,  34, 35, 38, 39, 40, 42, 45, 48, 52, 62, 64, 68, 69, 70, 74, 76, 78, 79, 80, 84, 85, 90, 91.  HS chapters 05 and 33 are bound for agricultural products.  Macao, China bound at zero 
all products covered by the Inform ation Technology Agreement (ITA)
3 in 1997.  Under the 
Pharmaceutical Agreement, Macao, China's tariff s on pharmaceutical products are bound at zero.  
Although the binding or non-binding of tariff rates does not, in practice, affect the free flow of goods imports to the MSAR, Macao, China is considering binding many more tariff lines in the current 
round of trade negotiations, provided that mutua lly satisfactory results can be achieved.  
                                                     
 
1 In the CEPA, the Mainland has agr eed to eliminate tariffs on imports  from Macao, China that fulfil 
the rules of origin for 625 products classified under mainland tariff codes:  78.4% of these goods are subject to 
manufacturing or processing operations  (e.g. textiles and clothing, jewe llery, chemical and pharmaceutical 
products, pasta and biscuits);  11.1% to change in tariff heading (e.g. chemical products, some electronics, footwear, glass fibres and beverages);  9.1% to manuf acturing operations and value-added content (e.g. clocks, 
watches, spectacle frames, and optical apparatus);  and 1. 4% are subject to manufactur ing operations and change 
in tariff heading (e.g. some pharmaceu tical products and some plastic ar ticles).  MES online information.  
Viewed at:  http:/www.economia.gov.mo/page/cepa_c.htm   
2 Secretariat calculation based on the 2005 tariff schedule of 6,220 lines.  For WTO non-agricultural 
goods:  9.9% are fully bound;  6.5% partially bound;  and 83.6% unbound.  
3 WTO document G/MA/TAR/RS/27. Macao, China WT/TPR/S/181/Rev.1 
 Page 31 
 
 
(iv) Other charges on imports 
14. Imports of tobacco products, alcoholic drinks , and fuels and lubricants are subject to 
consumption taxes levied on their c.i.f. value.  The Macao Economic Services is responsible for 
assessing and collecting the tax.  Since 17 June 2002,  a motor vehicle tax has been levied by the 
Finance Services Bureau under Law No. 5/2002 (Table  III.1).  These taxes are applied to domestically 
manufactured goods as well as imports, but as there is little, if any, local production, they primarily 
affect imports.  The preferential rates of cons umption tax once applied to Portugal have been 
eliminated since Law No. 4/99/M entered into force in 1999.  No preferential rates are applied to 
imported products of any origin. 
Table III.1 
Consumption taxes, 2006 
(P and per cent) 
Products Specific rate 
(P/unit) Ad valorem  rate
(c.i.f. value) 
(%) 
Wine and other alcoholic beveragesa   
Beer 1.00/litre  
Wine made from grapes  15 
Alcoholic beverages with alcoholic strength ≤ 30% by volume (excluding rice wine) 10.00/litre 10 
Rice wine  10 
Alcoholic beverages with alcoholic strength ≥ 30% by volume (excluding rice wine) 20.00/litre 10 
Tobaccoa   
Cigars, cheroots and cigarillos 70.00/kg.  
Cigarettes 0.05/cigarette  
Other manufactured tobacco and manufactured  tobacco substitutes;  "homogenized" or 
"reconstituted" tobacco 20.00/kg.  
Fuels and lubricanta   
Motor spirit, unleaded (unl eaded petrol) 1.00/litre  
Motor spirit, leaded (l eaded petrol) 1.50/litre  
Gas oils and fuel oils 0.085/litre  
Lubricating oils 0.40/litre  
Motor vehicles, motorcyclesb  Rates (sales value)
(%) 
Motor cars and other motor vehicles (automobiles)   
up to P100,000  30 
P 100,001 to P 200,000  35 
P 200,001 to P 300,000  45 
exceeding P 300,000  55 
Motorcycles    
up to P 15,000  10 
P 15,001 to P 25,000  20 
exceeding P 25,000  30 
a In accordance with Law No. 4/99/M of 13 December 1999. 
b In accordance with Law No. 5/2002 of 17 June 2002.  
Source: Information provided by the Macao, China authorities.  
15. There have been no changes to administrative fee levied on the importation of animals and 
plants listed in Annexes to the Convention on In ternational Trade in Endangered Species, which 
remains at 0.5% of the c.i.f. value of imports, according to Decree-Law No. 45/86/M.  According to WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 32 
 
 
the authorities, these administrative fees  have always been charged on an ad valorem  basis since the 
enactment of Decree-Law No. 45/86/M. 
(v) Import licensing, prohibitions, and other restrictions 
(a) Import licensing  
16. Traders intending to import products regulated  by Foreign Trade Law No. 7/2003 and other 
specific laws must obtain permission in advance (prior authorization) to import.4  The import licence 
demonstrates that approval has been given and ensures smooth clearance at customs.  With the 
exception of a few categories of products, the im port licence is, in general, obtained within 
three working days.  Different government bodies ar e responsible for issuing import authorizations 
under different decree-laws or laws (Table III.2).  
Table III.2 
Responsibility of government bodies for import authorizations, 2001 and 2005 
Imports 2001 2005 
Product types Governing legislation in 2005 
Import regime Authority Import regime Authority
Live animals and plants Chief Executive's Decision No . 225/2003 Prior authorization A Prior authorization A 
Medicine & pharmaceuticals Chief Executive's Decision No . 225/2003 Prior authorization B  Prior authorization B 
Textiles Not applicable Prior aut horization C Import declaration F 
Beverages and tobacco Chief Executive's Decision No. 225/2003 Prior authorization C  Prior authorization C 
Gasoline Chief Executive's Decision No. 225/2003 Pr ior authorization C Prior authorization C 
Vehicles Chief Executive's Decision No. 225/2003 
Government Decision No. 219/98/M Prior authorization 
Specific law C 
C Prior authorization 
Specific law C 
C 
Optical discs, related equipment & raw materials Chief Executive's Decision No. 225/2003 Prior authorizationC Prior authorization C 
Telecommunication & radio- 
communication apparatuses Chief Executive's Decision No. 225/2003 Prior authorizationD Prior authorization D 
Arms and ammunition Chief Executive's Decision No. 225/2003 Prior authorization E Prior authorization E 
Explosive materials Chief Executive's Decision No. 225/2003 Prior authorization E Prior authorization E 
CITES species Decree-Law No. 45/86/M Specific law A, B, C Specific law A, B, C 
Ozone-depleting substances Decree-Law No. 62/95/M Specific law C Specific law C 
Toxic chemicals & 
precursory substances Chief Executive's Decision No. 272/2003 Not applicable 
(List 1) 
Prior authorization 
(List 2 & 3) n.a. 
 
C Prior authorization C 
 
C 
n.a. Not applicable. 
Note: A Macao Civic and Municipal Affairs Bureau (Former Provisiona l Municipality of Macao in 2000). 
 B Macao Health Bureau.  C Macao Economic Services. 
 D Bureau of Telecommunications Regulation (former Te lecommunications and Informa tion Technology Development  
Office of Macao). 
 E Macao Public Security Police Force. 
 F Macao Customs Service. 
Source:  Information provided by the Macao, China authorities. 
                                                      
4 Import licences are only required for the products specified in Table B of the Chief Executive's 
Decision No. 225/2003 or as provided by Decree-Law  No. 45/86/M, Decree-Law No. 62/95/M, Government 
Decision No. 219/98/M, Decree-Law No. 51/99/M, Chie f Executive's Decision No. 272/2003, and Macao 
Economic Services Notices in the Official Gazette . Macao, China WT/TPR/S/181/Rev.1 
 Page 33 
 
 
17. Macao, China's import licensing regime has not changed substantially since its previous 
Review in 2001.  It is in place mainly for health, safety, environmental, and security reasons (Table III.3).  The list of items subject to licensing in 2001 remains, by and large, unchanged with the 
exception of articles of textile and clothing.  Import licences are granted if the normal criteria are met;  
if a licence is refused, the reasons must be given to the applicant, who has the right to appeal. 
Table III.3 
Import licensing regime, 2005  
Goods Purpose Responsible authority Processing time and fee Validity 
Live animals;  meat;  
animal products;  fish, 
crustaceans, and molluscs;  vegetables;  
live plants;  mushroom 
spawn and edible plants;  ice cream;  and prepared 
animal fodder To protect public and 
animal health, animal 
welfare;  prevent the introduction into and 
spread within the 
MSAR of destructive plant diseases and pests IACM Application at least 
three working days before 
the importation;  could also be accepted and processed 
the day before arrival;  in 
exceptional cases licences granted immediately, upon 
request 
No fee 30 days from 
the day of issue;
non-transferable;  
no penalty for 
non-utilization 
Pharmaceutical products 
and medicinesa;  modified 
milk;  essential oils;  dyes 
and chemicals To safeguard public 
health;  prevent diversion of 
narcotic drugs and 
psychotropic substances into illicit 
markets;  and control 
chemicals into illicit manufacture of such 
products Health Bureau  Application should be in 
advance of importation;   
Licence issued within three 
working days;  in 
exceptional cases,  licences can be granted 
immediately, upon request. 
Fee:  P 3,000 for medicines and pharmaceutical 
products;  annual renewal:  
P 400. Additional fee of P 10,000 
for  narcotic drugs and 
psychotropic substances;  annual renewal:  P 1,500. 30 days from 
the day of issue; cannot be 
extended under 
normal circumstances; 
non-
transferable; no penalty for 
non-utilization 
Beverages;  tobacco;  and 
gasoline To administer 
consumption tax Macao Economic Services Application three working 
days prior to importation;  in exceptional cases, licences granted 
immediately, upon request 
No fee 30 days from 
the day of issue;cannot be extended; 
non-
transferable; no penalty for 
non-utilization 
Vehicles To administer motor 
vehicle tax Licences issued by Macao 
Economic Services;  prior 
registration at and approval by 
the IACM is required Application no less than 
three working days prior to 
importation 
No fee 30 days from 
the day of issue;
cannot be 
extended; non-
transferable; 
no penalty for the non-
utilization 
Optical discs  
manufacturing equipment 
and raw materials To control the flow of 
optical disc  
manufacturing 
equipment  and raw materials so as to 
prevent copyright-
infringing activities Macao Economic Services Application three working 
days before importation;  
in exceptional cases,  
licences granted immediately, upon request 
No fee   30 days from 
the day of issue;
cannot be 
extended;  non-
transferable; 
no penalty for non-utilization 
Ozone-depleting substances originating in contracting parties to the 
Montreal Protocol 1987
b To enable Macao, 
China to comply with obligations set out in the Montreal Protocol  Environment Council and 
Macao Economic Services Application to Environment Council for  comment;  
application forwarded to 
Macao Economic Services for approval and issue of licences At least six working days 
No fee 30 days from 
the day of issue;cannot be extended; 
non-
transferable;   no penalty for 
non-utilization 
   Table III.3 (cont'd) WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 34 
 
 
Goods Purpose Responsible authority Processing time and fee Validity 
Telecom and radiocom 
apparatus To ensure certain 
standards are met by 
imported products Bureau of 
Telecommunications 
Regulation Applications advance of 
importation:  processing 
normally within 
three working days; in exceptional cases, 
licences granted 
immediately, upon request No fee 30 days from 
the date of 
issue; 
cannot be extended under 
normal 
circumstances; non-
transferable; 
no penalty for non-utilization 
Endangered species of animals and plants To ensure su rvival of 
endangered species of 
animals and plants Application to:  IACM for 
animals and plants listed in 
CITES;  Health Bureau for 
medicines claiming to contain tiger or rhino ingredients;  
application forwarded to 
Macao Economic Services for approval and issue of licences At least five working days 
0.5% of c.i.f. price in 
patacas 30 days from 
the day of issue; 
cannot be 
extended; non-
transferable; 
no penalty for non-utilization  
Arms and ammunition and explosives To control importation Macao Public Security Police 
Force Applications one month in 
advance;  appeals directed to Security Police within 30 days if application 
rejected 
No fee 12 months; 
cannot be extended; non-
transferable; 
no penalty for non-utilization 
a Importers of pharmaceutical products and me dicine must obtain a licence from the Hea lth Bureau before applying for an import 
licence. 
b Subject to quantitative restrictions.  Import limits are monito red by the Environment Council.  However, allocation of quotas  to 
individual importers no longer exists. 
Source:  WTO document G/LIC/N/3/MAC/8, 16 November 2005.  
(b) Import prohibitions 
18. In order to protect the environment and to en sure compliance with international obligations, 
imports of ozone-depleting substances originating in , or coming from,  non-parties to the Montreal 
Protocol are prohibited under Decree-Law No. 62/95/M.  The import of used motor vehicles and heavy passenger vehicles is prohibited with the ob jective of reducing cong estion, noise, and air 
pollution under Government Decision No. 219/98/M.   According to the authorities, an import 
prohibition is used rather than a system of cong estion charges because such a system would not be 
appropriate considering the size of the Region and the number of vehicles in circulation.  
19. Imports of animals and plants of enda ngered species covered by the Convention on 
International Trade in Endangered Species of W ild Fauna and Flora (CITES) are conditionally 
prohibited under Decree-Law No. 45/86/M, i.e. they ar e allowed to enter only if specified criteria are 
met in order to fulfil the obligations under the Convention.
5 
20. With reference to the Chief Executive's Decisi on No. 120/2005, changes have been made to 
regulations regarding Bovine Spongiform En cephalopathy (BSE).  Imports of pharmaceutical 
products from countries with BSE is prohibited excep t:  (a) in emergency situations, in which the 
product is beneficial to public health, and (b) when  medication can reduce the infectious risk of BSE 
and comply with the recommendations of WHO guide lines for minimizing the risk of transmission of 
BSE.6 
                                                      
5 In addition, under Chief Executive's Decision No. 2 72/2003, imports of certain toxic chemicals and 
their precursory substances regulated under the Chemical Weapons Conventio n are regulated by means of prior 
authorization. 
6 WTO document G/SPS/N/MAC/4/Rev.1, 31 August 2005. Macao, China WT/TPR/S/181/Rev.1 
 Page 35 
 
 
(c) Other restrictions 
21. Macao, China does not impose any quantitative restrictions, except those justified by 
international arrangements (e.g. CITES species, CFC pr oducts under the Montreal Protocol, and arms 
and ammunition).  Macao, China has been implementi ng the Montreal Protocol since the enactment of 
Decree-Law No. 62/95/M, which applies a quantitativ e quota on the import of HCFCs:  the quota is 
administered by a licensing system.  The quota is reduced progressively on a five-yearly basis (except 
during 2004-2010:  imports will be prohibited in 2030.   Imports of ozone-deple ting substances that do 
not exceed levels agreed under the Protocol are s ubject to quantitative restrictions:  these quotas are 
administered through a licensing system.7  Imports of arms and ammunition are subject to import 
licence control.  The licences are issued on a case-by- case basis.  No quota is fixed.  The licensing 
system is intended to control the quantity of impor ts;  licences are awarded only to those licensed to 
hold arms.8  Imports of arms and ammunition to be u sed exclusively by the MSAR police force are 
exempt from this restriction. 
22. The authorities state that Macao, China has never imposed trade sanctions against any 
country.9 
(vi) Anti-dumping, countervailing, and safeguard measures 
23. Macao, China has no laws or regulations govern ing anti-dumping, countervailing actions or 
safeguard measures.  It has no legal instrument s intended to protect local producers from unfair 
trading practices by foreign suppliers in the form of  dumping or subsidized exports.  There have been 
no changes in this regard since 2001.  
24. The authorities state that no exports from Macao,  China are subject to anti-dumping or other 
trade remedy actions by other trading partners.  
(vii) State trading, countertrade, and cartels 
25. According to the authorities, Macao, China does not maintain any state-trading enterprises as 
defined in Article XVII of the GATT.10  It has no legal provisions covering countertrade and does not 
engage in countertrade activities. There are no import or export cartels in Macao, China.  
(viii) Standards and other technical requirements  
(a) Standards, technical regulati ons, testing, and certification 
26. There have been no significant policy or institutio nal changes with respect to standards during 
the review period.  In general, Macao, China has applied international standards with respect to 
certain types of telecommunication equipment and civil engineering activities.  Macao, China has no 
official institution for standards and there is no comprehensive legislation in this area.  Macao 
Economic Services operates as the WTO enquiry. 
27. Macao, China does not have an integrated re gime for standardization, accreditation or 
certification in different sectors.  However, the authorities note the continuing trend of developing a 
voluntary management system of certification by lo cal enterprises and organizations.  According to 
                                                      
7 WTO document G/LIC/N/3/MAC/8, 16 November 2005. 
8 Import licences are required for defence guns ( calibre 22 to 32) and for competition guns. 
9 Except under Chief Executive's Decision No. 90/2005 (Table II.1). 
10 Notification G/STR/N11/MAC, 13 March 2006.  WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 36 
 
 
data from the Macao Productivity & Technology Transfer Center11, by the end of 2005, 90 ISO 9000 
certificates issued, up from just seven in 1996 and 17 ISO 14000 from three in 1999.  According to 
the authorities, analysis of the ISO 9000 and 140 00 certificates revealed that such certification was 
sought not only by export-oriented manufacturing enterprises, but increasingly by firms from the construction and service sectors.  They state that greater market competition has put increased 
pressure on local enterprises to continuously enha nce the quality of their products and services. 
28. Macao, China does not have a laboratory accreditation scheme, nor a government-supported 
organization providing accreditation to laboratories or  certification bodies.  As in the case of ISO 
9000/14000 certification, a number of local laborator ies have taken the initiative to seek multilaterally 
recognized accreditation from the China National Accreditation Board for Laboratories (CNAL) as 
well as other overseas accreditation bodies:  the Port uguese Institute of Accreditation (IPAC) and the 
Hong Kong Accreditation Service (HKAS).  As of December 2005, there were five accredited 
laboratories (Table III.4).  
Table III.4 
Accredited laboratories, December 2005 
Name Nature Accredited by Scope 
Macao Cement Manufacturing Co. Ltd  Company-ow ned HKAS (Hong Kong)  C onstruction materials – 
cement (chemical analysis)  
LECM - Macao Civil Engineering Laboratory-Calibration Laboratory Government-related IPAC (Portugal)  Calibration of instruments for 
the measurement of mass, 
force, and length  
Macao University of Science & Technology 
Foundation - Racing Laboratory University-related HKAS (Hong Kong)  Chemical testing of equine, 
canine, and human body fluids 
The Macao Water Supply Co. Ltd. - Analysis Division, Laboratory & Research  Company-owned CNAL (China) Drinking water and source 
water 
Civic and Municipal Affairs Bureau Government-rela ted CNAL (China) Water analysis (microbiology 
and chemistry) 
Source: Information provided by the Macao, China authorities. 
29. The accreditation scheme for Macao , China's governmental laboratories is mainly based on 
relevant ISO standards.  There are three laborator ies under the Health Bureau:  the Blood Transfusion 
Centre (CTS), the Public Health Laboratory ( LSP), and the Clinical Pathology Laboratory in 
Macao, China's public hospital (Centro Hospitalar Conde de S. Januário).  
30. The Blood Transfusion Centre is dedicated to establishing a quality assurance system so as to 
ensure the sufficiency and safety of blood supply in  Macao in line with the policy of "Quality service, 
Safe blood".  The Centre was accredited under ISO9001:2000 in July 2003. 
31. The Public Health Laboratory obtain ed its accreditation under ISO 17025 from China 
National Accreditation Board for Laboratories (CNA L) in March 2006.  Accredited items include 
hygiene tests, involving food, cosmetics, water, dr ugs, infectious disease pathogenic detection, as well 
as three calibration tests. 
32. The Clinical Pathology Laboratory in the public  hospital has also started the initial phase of 
the accreditation plan.  Its objective is to facilitate and improve the service and quality of patient care. 
                                                      
11 CPTTM is the  ISO Correspondent Member for Macao, China. Macao, China WT/TPR/S/181/Rev.1 
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33. Macao, China has adopted international sta ndards for telecommunications equipment and 
civil engineering.  An import licence application fo r telecommunications equipment may be refused if 
the equipment does not comply with the technical standards applicable in Macao, China, which are 
mostly in line with ITU standards.  The Macao Ci vil Engineering Laboratory (LECM) has prepared a 
set of codes and standards that are now part of the legal framework that governs civil engineering 
activities in Macao, following a detailed analysis of  the corresponding codes and standards used in 
China;  Europe;  Hong Kong, China;  and the United States. 
34. As Macao, China has not developed its own standards, it has not developed standard 
equivalence or mutual recognition schemes and hence does not participated in international 
agreements and arrangements on standards, testi ng, and certification.  Instead, Macao, China's 
approach is to align standards used in MSAR w ith international standards or overseas standards, 
where appropriate.  Since 2001, Macao, China h as made one notification to the Committee on 
Technical Barriers to Trade regarding petrol and fuels12, which reduces the maximum permitted 
sulphur content in diesel oil from 0.05% to 0.005%. 
(b) Sanitary and phytosanitary requirements  
35. The Civic and Municipal Affairs Bureau of Macao (IACM), established on 1 January 2002 
under Law No. 17/2001, is responsible for the form ulation and implementation of policies on sanitary 
and phytosanitary regulations.  It was formed with  a view to centralizing the administration of the 
Provisional Municipal Council of Macao and the Pr ovisional Municipal Council of the Islands, and 
streamlining depart mental operations. 
36. Foreign trade activities in Macao, China are regul ated by Law No. 7/2003 in connection with  
Chief Executive's Decision No. 225/2003.  In prin ciple, sanitary and phytosanitary controls are 
regulated by Administrative Regulation No . 40/2004, while other significant SPS measures 
promulgated since 2001 include:  Chief Executive's Decision No. 211/2001, which temporarily suspended imports from Japan of bovine, sheep, an d goats' meat and their derivatives from animals 
that suffered from, or were suspected to suffer from, Transmissible Spongiform Encephalopathy or 
TSE;  Chief Executive's Decision No. 7/2004, which temporarily suspended imports of poultry 
products from Korea, Viet Nam, Japan, Thailand, Cambodia, Laos, Indonesia, Chinese Taipei, etc.;  
and Chief Executive's Decision No. 8/2004, which te mporarily bans imports of masked palm civet 
and related products. 
37. In regard to the list of plants and animals subject to import prohibition or restrictions, 
Macao, China follows the guidance of the Conven tion on International Trade in Endangered Species 
of Wild Fauna and Flora, and therefore, re levant regulations are in accordance with the 
recommendations and rules set by CITES.  Nevertheless, in case of emergency such as the outbreak of avian influenza, Macao, China may temporarily prohibit imports of a particular species from a particular origin. 
38. Macao, China's current legislation, or legisla tive proposals, in the area of food standards 
cover, in general, the applicable international re quirements, including regulations for control of live 
animals in accordance with the Inte rnational Animal Health Code, concerning the import, transit, and 
export of mammals and birds.  Species subject to im port prohibition or restrictions are in accordance 
with CITES and must comply with Decree-Law No. 45/86/M.   
                                                     
 
12 WTO document G/TBT/N/MAC/1, 9 March 2006. WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 38 
 
 
(c) Labelling 
39. The labelling requirements for foodstuffs (pre -packed or not) are set out in Decree-Law 
No. 50/92/M, which has been amended by Decree-Law No. 56/94/M and Administrative 
Regulation 7/2004, with the aim of protecting the h ealth of consumers and preventing any unfair or 
fraudulent competition when the produc t goes through commercial channels. 
40. Labelling and packaging for pharmaceutical products are governed by Decree-Law 
No. 59/90/M of September 1990 whereby all pharmac eutical products consumed in Macao, China are 
required to be authorized by the Health Bureau.  Technical Instruction No. 3/2005, which entered into 
effect in July 2005, lays down stringent rules to  be followed in the packaging of pharmaceutical 
products entering the domestic market.13  
41. According to the authorities, there are no initiatives involving eco-labelling either at the 
government or the private level.  
(ix) Trade-related investment measures 
42. Macao, China does not maintain any trade-relate d investment measures inconsistent with the 
WTO Agreement on Trade-Related Investment Measures. 
(x) Government procurement 
(a) Scope  
43. According to the authorities, total expenditure  on government procurement amounted to 7.8% 
of GDP in 2005 (Table III.5). Expenditure under th e Investment and Development Plan is largely 
devoted to public sector construction. 
44. According to the authorities, public procuremen t by the Finance Services Bureau of Macao, 
China currently covers the public tender of eight  common consumable goods for the departments of 
the Macao, China Government and a number of administrative and financially autonomous entities.14  
The categories are:  photographic products, food , bottled drinking water, daily cleaning products, 
office stationery, fuels and lubricants, construction materials and transportation materials.  Individual 
agencies can follow the legal procurement proced ures to purchase goods and services that are not 
included in these eight types of tenders.  In general,  the Lands, Public Works and Transport Bureau is 
                                                      
 13 The external packaging of all pha rmaceutical products entering into  Macao is required to clearly 
indicate the following information:  name of the pharmaceutical product;  formulation; name and content of 
active ingredient(s);  name and address of the manufact urer or the product licence holder in Macao/place of 
origin/place of provision;  batch number;  expiry date;  special storage conditions and precautions (if 
applicable);  registration number from the place of origin /place of provision (if app licable).  The information 
should be printed on the external packaging and the internal packaging of the products prior to their arrival in 
Macao.  The registration number from the place of origin or  the place of provision can be indicated on a sticker 
attached to the packaging.  All product information listed should be labelled in Chinese, Portuguese or English.  
If not, the importer and wholesaler are responsible for translating the labels and package inserts into one of the above languages after the packaging is approved by the Department of Pharmaceutical  Affairs.  Pharmaceutical 
products that do not comply with the above regulations, are liable to be confiscated. 
 
14 There are three categories of agencies:  non-auto nomous agencies;  agencies with administrative 
autonomy;  and agencies with administrative and financia l autonomy.  The first two categories are required to 
procure consumable goods through contracts arranged by the Finance Services Bureau.  Agencies with 
administrative and financial autonomy may carry out their own procurement independently but may also choose to participate in the eight categories of public tenders mentioned above. Macao, China WT/TPR/S/181/Rev.1 
 Page 39 
 
 
responsible for the procurement of construction services;  for very large projects, however, 
responsibility is with the Office for the Developmen t of Infrastructures.  The current procedures are 
based on the stipulations and requirements of Decr ee-Law No. 63/85/M, which has not been revised 
since its entry into force in 1985. 
Table III.5 
Government procurement, 2001-05 
(P '000) 
Description   2001 2002 2003 2004 2005a 
(1) GDP at current prices 49,704,405 54,818,745 63,566,339 82,899,311 92,590,984 
(2)=(3)+(4) Total expenditure on government 
procurement 2,745,191 3,230,602 4,497,909 5,658,887 7,231,514 
(3) Investment and Development Plan 
(PIDDA) 989,804 1,344,531 2,357,179 3,386,110 4,331,432 
(4)=(5)+(6) Total goods and services 1,755,387 1,886,071 2,140,730 2,272,777 2,900,082 
(5) Central administration 539,318 543,612 572,586 663,657 778,366 
(6) Autonomous agencies 1,216,069 1,342,459 1,568,144 1,609,120 2,121,716 
(7)=(2)/(1) Percentage of total expenditure on 
government procurement to GDP 5.52 5.89 7.08 6.83 7.81 
(8)=(4)/(1) Percentage of total goods and 
services to GDP 3.53 3.44 3.37 2.74 3.13 
(9) No. of types of centrally procured 
consumable goods 2,323 2,297 2.103 1.764 1,729 
a Provisional figures. 
Note: In general, "total goods and services" refers to consum able goods (durable a nd non-durable) and acquisition of services.  The 
"number of types of centrally procured consumable goods" refers  to the items listed in the public tender of eight categories of  
common consumable goods, which are arranged by the Finance Services Bureau annually.  
Source: Information provided by the Macao, China authorities. 
45. In 2005, 1% of procurement contracts were signe d with foreign companies (Table III.6).  The 
authorities point out that any foreign companies re gistered in the Finance Services Bureau are 
considered to be local companies.  Country of orig in is not recorded.  The central administration (non-
autonomous agencies and agencies with administrati ve autonomy) and agencies with administrative 
and financial autonomy but without a Notary Officer are obliged to sign their contracts in the Notary Division within the Finance Services Bureau.  If the contract value is under P 750,000, or the duration 
of contract is less than half a year, the agency can draw up an agreement with the awarded supplier 
directly without passing through the Notary Divisi on so those cases are not recorded and hence not 
reflected in the table. 
Table III.6 
Local and foreign procurement contracts, 2001-05a 
(Number and per cent) 
 2001 2002 2003 2004 2005 
 No. % No. % No. % No. % No. % 
Foreign 24 8 20 6 13 3 2 0 5 1 
Service provider 20 83 16 80 12 92 1 50 4 80 
Government work 2 8 2 10 1 8 0 0 1 20 
Buy and sell 1 4 0 0 0 0 0 0 0 0 
Public tender 1 4 2 10 0 0 0 0 0 0 
Acquisition 0 0 0 0 0 0 1 50 0 0 
Table III.6 (cont'd)  WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 40 
 
 
 2001 2002 2003 2004 2005 
 No. % No. % No. % No. % No. % 
Local 263 92 303 94 397 97 424 100 576 99 
Service provider 160 61 164 54 260 65 260 61 419 73 
Government work 76 29 40 13 44 11 57 13 79 14 
Buy and sell 17 6 2 1 0 0 0 0 8 1 
Public tender 10 4 78 26 71 18 74 17 61 11 
Acquisition 0 0 19 6 22 6 33 8 9 2 
Total 287 100 323 100 410 100 426 100 581 100 
a Contracts signed at the Finance Services Bureau. 
Source: Information provided by the Macao, China authorities.  
(b) Procedures 
46. The relevant procedures for the purchase of goo ds and services are laid down in Decree-Law 
No. 63/85M and the procedures for public works are in Decree-Law No. 74/99/M.  Public tenders are 
usually compulsory for public works contract s exceeds P 2.5 million and purchases of goods and 
services exceed P 750,000.  Exceptions apply when:  one company has the exclusive supply rights;  it 
is in the interests of the Macao, SAR, given the nature of the goods, works or services required, to 
award directly to a particular entity;  the contract  involves project studies, technical consultancy or 
supervision of public works;  or there are secu rity reasons.  In these instances contracts can be 
awarded through a direct contract, where no public te nder is required, but at least three bidders must 
be consulted.  The Chief Executive might determ ine that contracts should be awarded through 
pre-qualified tender when a contract exceeds P 15 million for public works and P 7.5 million for 
goods and services, provided that it is technically co mplex, or when there is not enough time to 
undertake a tendering procedure.  Open tendering acc ounts for only 10% of public sector construction 
contracts (Table III.7). 
Table III.7 
Type of tendering in public sector construction projects, 2003-06 
(Per cent) 
 2003 2004 2005 2006 
Open tendering 5.3 3.4 6.3 10.0 
Invited tendering 58.8 46.9 51.1 41.0 
Direct consultation 35.9 49.7 42.6 49.0 
Note: Total amounts are not available;  informa tion are for DSSOPT construction project only. 
Source:  DSSOPT (Land, Public Works and Transport Bureau). 
47. Macao, China does not participate in the WTO Plurilateral Agreement on Government 
Procurement (GPA) although the authorities state that  procurement policies are being revised with a 
view to achieving more consistenc y with international practices.15  Bearing in mind the plurilateral 
nature of the GPA, Macao, China has underlined its  flexibility and openness to continue exchanges of 
views with Members in this regard.  The main fo cus of the authorities is to promote transparency 
throughout the procurement process.  This includes ad equate time for response from interested parties 
when tenders are posted, access to relevant tende r information on the Internet, multilingual website 
                                                      
15 In order to align with GPA requirements, all the tender documentation, including the instruction 
booklet, the tenders for the eight categories of goods (t housands of items and descriptions) will have to be 
translated into English.   Macao, China WT/TPR/S/181/Rev.1 
 Page 41 
 
 
for tender document access (Chinese, Portuguese, and English) and aggregation of tender information 
on the www.gov.mo website.  Moreover, results of the tenders are posted onto the Internet;  the 
information published includes the purchase price, brand name, supplier, and a picture of the good being supplied.  
48. Decree-Law No. 63/85/M of 1985, which governs the procedures for public tender 
procurement has not been revised by the Legislative Assembly of the law.  However, there have been 
a number of changes in the dissemination of inform ation since 2001.  The general system for tenders 
is similar to that in standard international procedur es;  it consists of tender offer, collection, opening, 
evaluation of documents, adjudica tion, and monitoring.  Within these general procedures, specific 
items may become outdated and require amendments. 
49. Work-groups such as "e-Macao" and the "e-procu rement coordination work group" have been 
set up to revise the procedures and provide recommendati ons for legislative amendments in the future.  
An e-procurement coordination work gro up, working under "e-Government" collects 
recommendations on laws and regula tions regarding government proc urement from various agencies 
that play an important part in purchasing;  and is  working to rationalize and simplify the procurement 
procedures through technology and suggestions from di fferent agencies.  The group has completed the 
discussion on the major procurement laws;  the aut horities state that a report will be submitted with 
recommendations for legislative amendments. 
50. In addition to public announcements in th e local Chinese and Portuguese newspapers, 
postings on the Finance Services Bureau’s website  and the Macao, China's Government portal have 
been added to increase awareness of public tenders.  Moreover, an English version of the website and 
public announcements is operational.   New advertising venues are being explored to attract more bids 
in order to increase the quality of suppliers and im prove the transparency of  the tender procedures.  
For example, advertisements on LED boards aroun d Macao, China are being planned to promote 
public tenders. 
51. Downloads of tender documents have been av ailable since 2002.  This provides access to 
overseas and local firms interested in bidding.  It is  the first step in using the Internet to improve 
services relevant to public tenders and sets the stag e for further electronic developments in public 
tendering.  In addition, awarded contract items ar e displayed online in the form of a searchable 
catalogue, to enhance transparency and the flow of information between current suppliers and users.  
This catalogue provides a broad idea of the types of goods the government consumes and, for the 
quality of the goods supplied.   
(3) M
EASURES AFFECTING EXPORTS  
(i) Procedures and documentation 
52. Except for products specified in the Export Table of the Chief Executive's Decision 
No. 225/2003 (such as textiles, arms and ammunition) , and those under international agreements and 
obligations (such as CITES and the Montreal Protoc ol), which require export licences, all exports 
from Macao, China are subject only to export declara tions which are used for statistical purposes.  
However, commodities with a total value of less th an P 5,000 may be exempted from the need to 
submit a declaration form.  In general, at most th ree working days are required for obtaining an export 
licence. 
(ii) Export taxes, charges, and levies 
53. Macao, China does not levy any export-related duties,  taxes or charges.  WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 42 
 
 
54. According to Administrative Regulation No. 29/2003 (and the supplement introduced by the 
Chief Executive's Decision No. 224/2003 of Septembe r 2003) the fee for a certificate of origin is:  
P 70 (US$8.75) for a product from the MSAR, and P 200 (US$25.00) for a foreign product.  Except for products exported under CEPA, certificates of origin  for exports are optional, and may be obtained 
from the Macao Economic Services.
16  
(iii) Export cartels and other arrangements 
55. According to the authorities Macao, China has no export cartels and it does not participate in 
shipping conferences. 
(iv) Export prohibitions, restrictions, and licensing 
56. No products are subject to export restricti ons and controls except those mentioned in 
Table III.8.  Macao, China has never imposed bans on exports to any country.17  
57. Under the WTO Agreement on Textiles and Clot hing, certain textiles and garment products 
exported from Macao, China to certain overseas markets were limited by quota restrictions until the 
system was abolished on 1 January 2005.  Macao China's exports of textiles and clothing are no 
longer subject to quota controls.  Some products are subject to regulation;  export licences are 
regulated by the Foreign Trade Law No. 7/2003 (Table III.8). 
Table III.8 
Regulated exports and governing legislation, 2001 and 2005 
2001  2005  Exports of product types Governing legislation in 2005  
Export regime Authority  Export regime  Authority  
Textiles & clothing Chief Executive's Decision 
No.225/2003 Prior 
authorization C Prior 
authorization C 
Optical discs, the related equipment 
& raw materials Chief Executive's Decision 
No.225/2003 Prior 
authorization C Prior 
authorization C 
Arms & ammunition Chief Executive's Decision 
No.225/2003 Prior 
authorization E Prior 
authorization E 
Explosive materials Chief Executive's Decision 
No.225/2003 Prior 
authorization E Prior 
authorization E 
CITES species Decree-Law No. 45/86/M Specific law C Specific law C 
Ozone depleting substances Decree-Law No. 62/95/M Specific law C Specific law C 
Toxic chemicals & precursory 
substances Chief Executive's Decision 
No.272/2003 Not applicable n.a. Specific law  C 
n.a. Not applicable. 
Note: C  =  Macao Economic Services. 
 E  =  Macao Public Security Police Force. 
In general, at most three working days are required for obtaining an export licence. 
Source:  Information provided by the Macao, China authorities.  
                                                      
 16 They are used to prove to a third party that exports have been, to a sufficient degree, assembled and 
processed in Macao and are thus cla ssified as products originating in Macao.  In 2005, the Macao Economic 
Services issued 160,947 certificates of  origin;  the primary destinations were the United States (59%) and the 
European Union (31%).  
17 Except under Chief Executive's Decision No. 90/2005 (Table II.1). Macao, China WT/TPR/S/181/Rev.1 
 Page 43 
 
 
(v) Export support 
58. The authorities state that Macao, China does not  provide subsidies or tax concessions to 
exporters.  However, to promote Macao, China's eco nomic development, the Government offers tax 
incentives, inter alia,  for projects that promote exports to new markets.  Companies registered with 
the Macao Economic Services may apply for a full subsidy for rental of exhibition venues and 
expenses for installation, furnishi ng, and operation of booths during e xhibitions;  and a partial subsidy 
(50% or 60%)  for production of printed materials, audio-vi sual equipment, products for exhibitions, 
transportation costs for trade missions, etc.  Accord ing to the authorities, assistance of this kind is 
commonly provided by the export promotion services of  governments and is not regarded as an export 
subsidy in terms of the WTO Agreement on Subsidies.  
(vi) Export finance, insurance, and guarantees 
59. Macao, China does not have any export fi nance schemes (including concessional export 
credits) or export insurance and guarantee schemes.  It is still the case that export financing can be 
provided only by banks authorized to operate in the Region.  
(vii) Export promotion and marketing assistance 
60. The Macao Trade and Investment Promotion In stitute (IPIM) is a non-profit organization 
mandated to promote trade and attract foreign invest ment.  It assists exporters through the provision 
of trade, economic, and statistical information on various markets and helps enterprises participate in 
international fairs.  IPIM participates in  various textile and garments exhibitions, inter alia,  in 
Mainland China, the Unites States, and Europe.  Or ganized by IPIM, the Macao  International Trade & 
Investment Fair (MIF) is the largest interna tional exhibition in Macao, China promoting Macao 
products, facilitating business-matching contacts and exchange of information among exhibitors, and 
highlighting Macao, China as a regional services platform. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE   
(i) Taxation system and tax incentives 
61. The taxation structure of Macao, China relies heav ily on direct taxes, in particular those 
derived from gaming, which account for over two thir ds of total revenue (Table III.9).  "Property 
income" includes a variety of forms of revenue earne d by the Government such as interest, dividends, 
rents, and premiums from land concessions (principal  source of property income).  In addition, 
revenue in this category includes a share of annua l operating surplus of the Monetary Authority of 
Macao (AMCM), and distribution from the retu rns of the Land Fund (managed by AMCM). 
62. The Government has traditionally kept the tax rate low;  the maximum profits tax is 12%, 
recently reduced from 15%.  Personal income in excess of  P 280,000 is subject to a 12% flat rate.  In 
general, Macao has a simple tax structure and low tax rates:  fourteen taxes are levied and divided into 
the two general classifications of direct and indirect taxes (Table III.10).  The rent received from granting franchises is considered a direct tax and is by far the most important source of revenue.  In 
particular, operators of all types of gaming activ ities, 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 tho se on profits and employment income, are levied at 
relatively low rates;  this is important in ma king Macao, China attractive for domestic and foreign 
investors.  At the same time, as part of its industrial policy,  various incentives (including exemptions) 
reduce the burden of a number of taxes. WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 44 
 
 
Table III.9 
Government account, 2001-06 
(P million) 
  2001 2002 2003 2004 2005 2006a 
Total revenueb 15,641.6 15,226.9 18,370.6 23,863.5 28,200.8 27,163.4 
of which Direct tax from gaming 6,292.9 7,639.4 10,178.4 14,740.0 16,561.9 19.788.9 
 Other direct taxes 1,254.5 1,236.8 1,164.4 1,384.4 1,507.2 1,926.5 
 Indirect taxes 840.8 926.0 987.6 1,297.3 1,494.9 1,402.6 
 Property income 839.0 454.6 872.1 731.0 1,677.8 2,171.1 
Total expenditureb 15,220.8 13,486.9 15,713.0 17,703.0 21,184.3 17,277.0 
of which Capital expenditure 1,119.0 1,555.7 2,720.4 3,916.9 4,540.2 4,753.4 
Overall surplus/deficit 420.8 1,740.0 2,657.7 6,160.5 7,016.6 9,886.4 
a Provisional figures, excluding autonomous agencies. 
b Including autonomous agencies. 
Source:  Finance Services Bureau, Research and Financial Planning Department;  Macao Statistics and Census 
Service, (2003), Yearbook of Statistics . 
Table III.10 
Main types of taxation and related incentives 
Type of tax Main features of the tax Nature of incentivesa 
Direct taxes   
Profits tax Business revenue tax levied on the total revenue generated by industrial 
and commercial businesses; revenue  less than P 32,000 is exempted;  
for revenue in excess of P 300 000 there is a flat rate of 12%;  for 
revenue below P 300,000 the rate ranges from 3% to 12%  May be reduced by 50% 
Salaries tax Levied at rates between 7%  and 12% on working income:  daily wage 
temporary workers, full-time employ ees or freelance workers must pay 
income tax if their annual income exceeds P 95,000.  For white-collar 
professionals, income is calculated on the basis of actual or estimated 
profits;  for income in excess of P 280,000 there is a flat rate of 12%  
Business  
registration tax Business tax is levied on all indi vidually and collectively operated 
industrial and commercial businesses 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 P 300 and for commercial banks the tax is P 80,000 Waived for candidates who have 
received preliminary approval;  
50% reduction for 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 determin ed according to the rent at either 
10% or 16% Property purchased and used for 
manufacturing is exempt from all 
property tax;  rented property used for manufacturing is partially 
exempt;  exemption is for five years 
on the Macao peninsula, and ten years on the two islands  
Gaming tax  The operators of all type s of gaming activities, including casino 
gaming, horse racing, dog racing and lottery bets are liable to pay a 
certain percentage of their gross re venues in tax or pay tax according to 
other levy scales.  35% of gross cas ino 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 beverage s, fizzy soft drinks, flavoured mineral 
waters, tobacco, fuel and lubricants.  For details of tax rates, see 
Table III.1 Fuel supplied to industrial units is 
free from tax 
Motor vehicle tax  Levied on the actual sale pr ice 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 (see Table III.1) Vehicles intended for use in Macao's 
public services, tourism sector, and 
public transport, cargo, etc. are exempt from the tax 
Table III.10 (cont'd) Macao, China WT/TPR/S/181/Rev.1 
 Page 45 
 
 
Type of tax Main features of the tax Nature of incentivesa 
Tourism tax Levied at 5% on all serv ices provided by hotels and similar 
establishments, health clubs, saunas,  massage parlours, karaoke bars 
and holiday resorts Businesses such as guesthouses, 
hotels and restaurants are exempt  
Stamp duty Property transfer tax and inhe ritance tax were replaced by stamp duty 
on 1 August 2001.  The rate for tran sactions involving building units in 
the Macao peninsula and the two islands is 3%.  A stamp duty of 5% is 
levied on gifts  or personal chattels Reduced by 50% to 100% for all 
property transfers involving 
industrial use.  This includes trade, 
administration, off-shore companies, long-term leases and non-profit 
organizations.  Charitable donations 
related to property transfers valued at less than P 50,000 also enjoy 
reduced stamp duty.  
a To promote Macao, China's long-term economic development, th e Government offers tax incentiv es (including exemptions) for 
projects that benefit the MSAR development. In order to qua lify for these exemptions, invest ment projects outlined in the 
application  must satisfy one of the following criteria:  (i) pr omote economic diversification;  (ii) contribute to the promoti on of 
exports to new markets;  (iii) promote a higher added value w ithin their own production chain;  (iv) contribute to technologica l 
modernization;  and (v) create employment opportunities. 
Source: Information provided by the Macao, China authorities.  
63. In order to promote Macao, China's long-term development, the Government offers full or 
partial exemptions from tax for projects that be nefit the Region's development.  Tax holidays or 
reduction are prevalent in the cases of corporate income tax, property tax, stamp duty and consumption tax.  Offshore companies are granted tax incentives and their managers and specialists 
who are not Macao, China residents are exempted from paying professional tax for the first three 
years of employment.  An institution may enjoy fu ll exemption from all forms of taxes for profits 
derived from offshore activities.  According to th e authorities, enterprises granted tax incentives in 
2004 were mainly engaged in garm ent and textile production and the manufacture of audio and video 
products.  These enterprises enjoyed a 50% reduction in  both corporate income tax and stamp duty.  
Overall in 2005, P 67.6 million of revenue were fo rgone as a result of incentives (Table III.11), less 
than half of the corresponding figure for 2001.  Ther e are no studies to evaluate  the cost-effectiveness 
of the incentives in relation to tax revenues foregon e:  judging from international experience, such 
incentives are seldom cost-effective;  this  is especially true of tax holidays. 
Table III.11 
Estimated tax revenues forgone as a result of incentives/exemptions, 2001-05 
(Pataca) 
Tax 2001 2002 2003 2004 2005 
Business registration tax 282,032 229,531 490,904 1,109,484 1,362,532 
Profits tax 101,189,044 11,864,696 35,690,656 21,193,456 12,695,423 
Property tax 17,738,405 17,281,387 12,428,212 11,872,169 9,282,696 
SISA (conveyance tax) 3,486,396 .. 10,000,000 .. .. 
Stamp duty for transfer of fixed 
assets 813,423 27,134,702 10,289,516 3,673,283 7,235,930 
Consumption tax 34,321,149 35,602,218 42,152,757 5,960,494 37,032,492 
Motor vehicle taxa 1,172,355 14,336,922 .. .. .. 
TOTAL 159,002,804 106,449,456 111,052,045 43,808,886 67,609,073 
.. Not available. 
a The 2002 figure covers only 1 January to 16 July.  According to the Motor Vehicle Tax Regulation Law Nº 5/2002, tax is based 
on fiscal price:  since 17 July 2002 the amount of tax exemption has not been provided because vehicles exempted from the tax 
are not subject to fiscal price assessment. 
Note: Stamp Duty is embedded in individual tax value. 
Source: Information provided by the Macao, China authorities. WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 46 
 
 
(ii) Non-tax incentives and other forms of assistance 
(a) Non-tax incentives 
64. The Government continues to provide a numbe r of incentives, other than tax measures, 
mainly in the form of support for investment projects and interest rate subsidies.   
65. Under Decree-Law No. 49/85/M, investment in Macao, China is encouraged through 
repayable or non-repayable subsidies for the followi ng activities:  manufacturing of new products that 
involve high economic risk;  research and developmen t projects that further Macao, China's industrial 
development;  and the installation of anti-polluti on equipment and its operation.  According to the 
authorities, from 2001 to 2005, 32 applications for subsidies in line with the Decree-Law No. 23/98/M 
were approved (Table III.12).  According to the au thorities, the estimated value of the subsidies for 
2001-05 was P 30.2 million.  
Table III.12 
Subsidies granted, 2001-05 
Sector/activity 2001 2002 2003 2004 2005 Total 
Garments and textiles 3 2 1 3 3 12 
Fisheries .. .. 8 3 1 12 
Othersa 2 4 1 .. 1 8 
Total 5 6 10 6 5 32 
.. Not available. 
a Includes medicine, printing, processing and preserving of cereal s and beans, manufacture of electronic valves and tubes, and 
other electronic components. 
Note: The above-mentioned cases of subsidies can also be classifi ed by objectives/aims as follow:  purchase of new equipment:  27;  
 purchase of industrial premises:  4;  and c onstruction of industrial buildings/plants:  1. 
Source: Information provided by the Macao, China authorities.  
66. Under Decree-Law No. 23/98/M, investors may benefit from government-funded interest rate 
subsidies ranging from 4% to 6%18, on private bank pataca loans for buying or leasing new equipment 
or the construction or leas ing of industrial buildings.19  The entitlement period ranges from one to 
four years.  The interest rebate, administered by  the Macao Economic Services, concerns any loan 
acquired through a bank in Macao, China by a specified  industry for the purpose of:  investing in the 
promotion of business diversification and modern ization;  technological innovation;  business 
restructuring;  improvement of the environment;  and the betterment of hea lth and safety conditions 
through the construction and renovation of factory premis es.  The specified industries are:  fisheries;  
manufacturing;  wholesaling and agency businesses ex cept for motor vehicles and heavy motorcycles;  
cargo storage;  warehousing;  forwarding agencies and logistics-related businesses;  communications 
and providers of services to enterprises.  Interest re bates in 2004 were granted mainly to enterprises 
engaged in manufacturing and fisheries activities, a nd the loans were used primarily to purchase or 
rent new facilities.  From 2001 to 2005, 30 loans at subsidized interest rate s were approved by the 
authorities.   
                                                      
18 The interest rate subsidies offered are 4% to 5% for the construction, installation or lease of 
industrial facilities;  6% for investments made to improve working conditions or safety standards;  4% for the 
purchase or lease of new cargo vehi cles, and 5% to 6% for the purchase and renovation of new facilities.  
Macao Yearbook 2005 , p. 203. 
19 The subsidy takes the form of a reduction in the bank's commercial rate.  For example, a commercial 
rate of 10% might be reduced to 6%, the 4% reduction being funded by the Government.  From 2001 to 2005, 
the estimated value of the subsidies was P 30.2 million for total bank loans of more than P 600 million.  Macao, China WT/TPR/S/181/Rev.1 
 Page 47 
 
 
(b) Allocation of industrial land 
67. Around 95% of the land in Macao, China is owned by the Government  and can be leased for a 
period generally not exceeding 25 years to investor s with a significant investment in Macao SAR.  
Given the scarcity of land, the terms and conditio ns of the leases are a potentially important policy 
instrument.  Leases for industrial and commercia l land are granted on a case-by-case basis, which 
appears to be rather opaque.  Macao, China no longer  sells land to residents or to foreign investors 
due to the scarcity of unused land.  Entities need ing land for any purpose are required to submit an 
application, along with plans and proposals, to the Gove rnment;  if the project is deemed beneficial to 
the growth of Macao, China, the application will be accepted and might lead to the negotiation of a 
leasing contract.  The authorities state that in order to re-use previously sold land, negotiations will be 
held with property owners to donate free their lot to the Government, which will then gradually lease 
the donated lot to them, or lease another lot to them on terms to be mutually agreed. 
68. Overall, the land leasing policy remains uncha nged since 2001 (Box III.1).  The terms of a 
lease are generally decided in accordance with the La nd Law in force and other related laws.  A lease 
may be renewed for successive periods of ten years.  Free donation to the Government of sold land is 
not necessarily the first step for land re-use.  Proprie tors of sold land can retain ownership of their 
land, but if they intend to redevelop this land join tly with other land, then the procedure of the free 
donation to, and subsequent lease by, the Government mu st be followed.  This is in order to unify 
gradually the land regime in the development of new projects.  
Box III.1:  Land lease policy and procedures in Macao SAR 
The granting of land in Macao SAR is mainly in coordination with the "semi-long-term" development of 
the economy.  High priority will be given to projects that promote the t ourism industry, secondary industry, 
conference industry, and logistic industry, so as to respond to market demand, strengthen the development 
of the dominant industry, and to give impetus to the diversified development of Macao and develop 
conditions for further social and economic development. 
Land supply in Macao is limited;  after the handover and the opening  of the gaming industry, land was 
granted prudentially to casino operators, as a first pr iority.  According to the authorities, under normal 
conditions, the land lease procedure is:  application for land development from applicant is sent by the 
Land, Public Works and Transport Bureau to different  authorities (e.g. Macau Go vernment Tourist Office, 
Infrastructure Development Office, Gaming Inspection and Coordination Bureau, Civil Aviation Authority, Urban Planning Department, etc.) for technical advi ce.  The land premium pa yment is then calculated 
according to Land Law and related supplementary la ws (Administrative Regulation N°16/2004 – Method 
for Determination of Land Premium), and contract conditi ons are drafted.  The draft land lease contract is 
sent for approval to the Director of Land, Public Wo rks and Transport Bureau, th e Secretariat for Transport 
and Public Works, and the Chief Executive;  the draft contract is then sent to the applicant.  Following 
agreement by the applicant, the application will be sent to the Land Committee for analysis and opinions;  the proposal is sent to the Secretariat for final ap proval from the Chief Executiv e.  The procedure will be 
finalized after the contact is published in the Gazette . 
According to the Land Law and related supplementary la ws, the land lease period is 25 years.  After the 
usage of the land is confirmed, the lease period can be extended by ten years successively.  In addition to 
the initial lump-sum premium payment, annual rent payment is also required.  Furthermore, the lessee may 
also be subject to special commitmen ts, such as land reclamation, infrast ructure development, and external 
landscape renovation. 
Source:   Land, Public Works and Tran sport Bureau, December 2006. WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 48 
 
 
69. In 2002, the Concordia Industrial Park Co . was renamed as Macau Industrial Parks 
Development Co. Ltd. This company manages the Concordia Industrial Park in Coloane and the 
Macao-Zhuhai Transborder Industrial Park, whic h was set up in 2005, with a land area of 
48, 216 square meters, to encourage and offer mo re facilities to entrepreneurs investing in the 
development and diversifica tion of industrial projects. 
(c) Assistance for new technology and development  
70. Macao, China's Government has issued a number of laws since 1994 to promote technology 
and training.  Decree-Law No. 21/95/M of 1995 est ablished the Macau Productivity and Technology 
Transfer Center (CPTTM) as a non-profit joint vent ure between the Government and the private 
sector.  Its mission is to foster the continuous upgrad ing of local human resources, and  support local 
enterprises in effectively utilizing new conceptual thinking, information, and resources to increase the 
added-value of their products/services and th ereby promote higher productivity as well as 
competitiveness of the local economy.  The services provided by CPTTM are open to Macao, China's 
business community, regardless of sector/industry, including, inter alia:  professional/vocational 
training and examination (in the areas of quality ma nagement and business development;  information 
technology and systems;  apparel technology a nd industry development;  language and presentation 
skills);  dissemination of information, e.g. throug h publications, research studies, etc.;  awareness 
campaigns, e.g. seminars, workshops, etc.;  a dvisory services; technology demonstration, and 
exchange activities, e.g. exhibitions, delegations.  
71. Law No. 9/2000 of July 2000 defines the science and technology policy framework of 
Macao, China's Government, addressing aspects such as promoting science and technology 
development, supporting science and technology R&D institutes, cultivating science and technology 
professionals, setting up a science and technology development fund, setting up incentives for R&D 
activities, encouraging international cooperation in  science and technology, and reinforcing science 
and technology  in education.  
72. Administrative Regulation No. 16/2001 of 27 August 2001 sets up and defines the mission 
and organization of the Science and Technology Coun cil.  The Council is an advisory body providing 
consultative support to the Government in de fining policies for technology development and 
modernization.  
73. Administrative Regulation No. 14/2004 of 10 May 2004 establishes and defines the 
framework for the operation of the Science and Technology Development Fund.  Its management 
bodies consist of a Board of Trustees, the Executive Bo ard, and the Fiscal Board.  The objective of the 
Fund is to support the Government's technological po licies by providing financial assistance for the 
development of related education, research, and proj ects.  Specifically, the fund supports projects to:  
disseminate and enhance tec hnological knowledge;  enhance productivity and competitiveness of 
business enterprises;  foster industrial developmen t and innovation;  develop a culture/environment 
conducive to technological innovation and development;  and foster the transfer of technology, which 
is a priority for social and economic development.  
74. Services provided by CPTTM are usually charged on a cost basis.  Funding will be sought 
from the Macao SAR Government for projects that fo ster the application of technologies appropriate 
for the development needs of local enterprises and industry. 
75. At the time of the previous Review, Macao, China had no specific policy or programmes to 
support small and medium-sized enterprises (SMEs).  Given that SMEs play an important role in the  economy, supporting them has become one of the G overnment's long-term policies.  Following the Macao, China WT/TPR/S/181/Rev.1 
 Page 49 
 
 
unfavourable economic situation caused by the out break of SARS in May 2003, the Government 
introduced three financial schemes to assist SMEs:  
- SME Aid Scheme20:  provides interest-free financial aid to help SMEs purchase 
equipment needed for their operation;  renova tion, decoration and expansion projects;  
capital for signing commercial concession contracts or franchising contracts;  
acquisition of exclusive rights for use of  technology and intellectual property.  The 
maximum amount of aid per enterprise is P 100,000.21 
- SME Credit Guarantee Scheme22:  provides each SME with a credit guarantee equal to 
50% of the loan approved by the participa ting banks;  the maximum guarantee offered 
is P 1.5 million.  The maximum repayment period of the loan is five years from the 
date of the signing of the loan contract. 
- SME Credit Guarantee Scheme Designated for Special Projects :  provides a credit 
guarantee of up to 100% of the amount needed  for SMEs to finance special projects;  
to assist SMEs to acquire from banks th e capital needed to resolve short-term 
financial difficulties arising from payment of  employees' salaries, rental expenses 
etc., due to extraordinary or  unpredictable events.  The maximum guarantee offered 
per beneficiary is P 1 million. 
(iii) Intellectual property rights protection 
(a) Overview 
76. Although Macao, China is not a State, membership of a number of international treaties in the 
intellectual property field was extended to Macao, China, first through a formal extension of 
Portugal's membership.  This position was essentially  maintained after Macao, China's change of 
status to an SAR of the People's Republic of Chin a in 1999, as China agreed to take over Portugal's 
parent position in this regard.23  Notably, Macao, China is a part y to the Convention Establishing the 
World Intellectual Property Organization (WIPO). 
77. Important changes to Macao, China's intellect ual property regime were introduced in 1999.24  
Copyright was not adequately protected by clear ly defined terms until the Copyright and Related 
Rights Law (Decree-Law No. 43/99/M) entered into effect  in October 1999.  This law, together with 
the Industrial Property Law  (Decree-Law No. 97/99/M), also passed in 1999, covers the bulk of 
                                                      
 20 This scheme is under Administrative Regulation No. 9/2003 of 12 May 2003. 
21 For SMEs directly affected by ex traordinary events such as natural disasters, epidemics, or dramatic 
changes in the business environment that prompt operating expenditure hikes or affect operating conditions of 
an enterprise, the maximum aid per enterprise rises to P 200,000.  The maximum period for loan repayment is 
six years. 
 22 The SME Credit Scheme and SME Credit Scheme  Designated for Special  Projects are under 
Administrative Regulation No. 19/2003 of 14 July 2003.  
23 Macao, China's membership of in ternational conventions  and treaties on IPR includes:  the TRIPS 
Agreement, as Macao, China is an or iginal Member of the WTO;  the Be rn Convention for the Protection of 
Literary and Artistic Works, extended to Macao with ef fect from 12 August 1999;  the Universal Copyright 
Convention, from 23 October 1999;  the Paris Convention for the Protection of Industrial Property, from 
12 August 1999;  and the Nice Agreement on the International Classification of Products and Services, from 23 September 1999.  In addition, the Macao Economic Services and the Chinese St ate Intellectual Property 
Office (SIPO) signed the Cooperati on Agreement on Intellectual Property in 2003, agreeing to extend the 
applicability of patent approvals by SIPO and patent  applications made to SIPO to Macao, China.  
24 WTO (2001). WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 50 
 
 
intellectual property protection.  The Macao Gove rnment enacted Decree-Law No. 51/99/M in 1999 
to give administrative power to the law enforcemen t agency to control the manufacture and trade of 
optical discs effectively.  Shops wishing to sell optical discs must be authorized in advance and 
provide source identification documents when they are inspected by customs officers.  This legislation 
has been effective in controlling optical disc manuf acturing plants and retail shops and an important 
means for Customs to oversee and combat optical disc piracy.  
78. Macao, China's intellectual property legislation was notified to the WTO and reviewed by the 
Council for TRIPS in 2000.  The WTO contact point for intellectual property issues is Macao Economic Services.  A protocol of coope ration on intellectual property was signed on 
24 January 2003 between the State Intellectua l Property Office of PRC and Macao Economic 
Services.  It was enacted by  Chief Executive's Decision No. 59/2004 on 22 March 2004.  The State 
Intellectual Property Office (SIPO) of the PRC is d esignated to be the examination entity for patent 
applications submitted in Macao, China. 
79. The Intellectual Property Department (IPD) of  Macao Economic Services is responsible for 
managing and enforcing laws relating to the protec tion of intellectual property rights.  Its main 
responsibilities include:  assisting in making IPR po licies;  promoting cooperation with foreign 
entities;  implementing legislation on industrial pr operty;  and publishing actions, decisions and other 
information regarding industrial property, and rele vant supervision.  The Macao Customs Service is 
also responsible for enforcing legislation and implementing punitive measures regarding intellectual 
property rights;  combating counterfeiting, and prom oting compliance with intellectual property rights 
and regulations.  
80. Since its last Trade Policy Review, in 2001,  Macao, China has adopted several essential  
improvements to its regulatory regime including:  al l retail establishments dealing with optical media 
products must request authorization in advance;   all optical media products manufactured in 
Macao, China must bear a source identification code;  a decree mandating government use of 
authorized software has been adopted;  and  the enforcement regime has been improved.  Macao's 
courts have implemented a special expedited prosecuti on system that allows a suspect to be brought to 
trial expeditiously. 
81. At the time of its previous Review, mainly as a result of optical me dia piracy, Macao, China 
was on the USTR "Watch List" of countries that fail  to provide adequate and effective protection of 
American intellectual property rights, as specified  under the Special 301 provisions of the amended 
1974 Trade Act.  However, it was removed from th e list in 2002, as a result of its progress in 
strengthening IPR laws, tightening controls over op tical disc manufacturing, and stepping up street-
level IPR enforcement.  Controls were effected th rough the enactment of some important legislation, 
such as Decree-Law No. 43/99/M an d Decree-Law No. 51/99/M in 1999.  The Macao Economic 
Services and Macao Customs Service, have made stre nuous efforts to combat optical disc piracy.  The 
number of optical discs manufacturing factories ha s fallen from 30 in 1997 to 2 (one producing blank 
DVDRs and CDRs, the other producin g blank CDR stampers).  The number of optical discs seized 
declined substantially from more than 1,700,000 in 1998 to 300 in the first half of 2006.  Since 
November 2001, Macao Customs has submitted 53 cases re lated to optical disc piracy to the Public 
Prosecution Office;  11 of these were tried in th e Primary Court through an expedited prosecution 
procedure. 
(b) Copyright and related rights  
82. In 1999, Macao, China modernized its outdate d copyright and neighbouring rights laws in 
order to provide better  protection for works of lite rature, drama, music, art, movies and television Macao, China WT/TPR/S/181/Rev.1 
 Page 51 
 
 
broadcasting, as well as original productions, in orde r to meet international standards embodied in the 
WTO TRIPS Agreement and the Berne Convention. 
83. The Macao Customs Service has been r esponsible for combating and preventing 
infringements of IPR since its establishment in November 2001.25  Customs officers at checkpoints 
are responsible for overseeing and controlling trad e in compact discs and trade-marked goods.  They 
exercise strict inspections of these shipments.  The IPR Department of Customs also carries out 
random inspections at local retail shops, acting on complaints or intelligence.  The Macao Customs 
Service is empowered to seize infringing goods a nd detain suspects for investigation.  In 2003, 
28 cases were prosecuted, resulting in the closure of three optical disc production lines and the seizure 
of 145,387 optical discs and 479 moulds;  15 of th ese cases were successfully pr osecuted, 2 were lost 
and 11 are awaiting judgment (Table III.13). 
Table III.13 
Violations of intellectual and industrial property rights, 2001-05 
 2001 2002 2003 2004 2005 
Prosecution cases 2 51 39 35 24 
Confiscation of infringing products      
Machinery for producing compact discs (production line)  0 3 3 0 0 
Machinery for producing compact disc moulds (sets)  0 23 21 0 0 
Compact disc moulds (pieces)  0 232 479 0 0 
Compact discs (pieces)  60,165 86,718 145,387 15,522 19,650 
Material for manufacture CD /VCD (ABS copolymers or 
polycarbonates, kg)  0 10 475 0 100 
Textiles (pieces)  3,898 36,144 3,255 1,163 3,723 
Leather products (pieces)  159 1,794 1,128 1,559 315 
Watches (pieces)  0 475 621 1,010 3 
Source:  Information provided by the Macao, China authorities. 
84. For violation of patent rights;  topography of semiconductors;  designs or models;  sale, 
circulation or concealment of counterfeited pr oducts or goods;  violation and illegal use of 
designations of origin or geographical indicati ons, the maximum criminal penalties are a prison 
sentence of up to two years or a fine ranging from 60 to 120 days.26  For the unlawful act 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 fine ranging from 90 to 180 days. 
(c) Industrial property 
85. Protection of industrial property rights in Macao , China is enforced by means of the Industrial 
Property Code enacted by Decree-Law No. 97/99/M, which entered into force on 6 June 2000.  The 
Code covers all intellectual prope rty rights dependent upon registration, i.e. trade marks, patents 
(including invention patents a nd utility patents);  topography ma ps of semiconductor products;  
                                                      
 25 According to Macao Law, Macao Customs Service is  competent to take actions at the border and 
inside the city area, to seize commodities suspected of infringing intellectual property rights as well as to 
prosecute these cases.  For cases involving only viol ation of administrative regulations, the Macao Customs 
Service has the authority to confiscate infringing goods and impose administrative penalties on offenders.  For criminal cases, the case is passed to the Public Prosecut or for action.  Sentences will be decided by judicial 
organs.  Infringing goods will be destroyed and appropriate penalties imposed on the violators. 
26 A day of fine is a unit whose value is determined  on a case-by-case basis at the discretion of the 
court, between P 50 to P 10,000. WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 52 
 
 
industrial designs and new industria l products;  names and logos of businesses.  Any trade mark that 
fulfils the requirements of the Code may be register ed, but registration is not compulsory.  Trade mark 
registration is geographical in the sense that trad e mark regulations in Macao, China protect only 
trade marks issued in Macao, China (separate applications need to be made in other countries and 
regions for protection there).  In 2005, the IP de partment of Macao Economic Services received 
4,651 applications for trade mark registrations and by the end of 2005 it had received a cumulative 
total of 35,902 applications.  The department receiv ed 83 applications for industrial designs in 2005, 
with a cumulative total of 280.  For invention and ut ility patents, respectively, 120 and 7 applications 
were filed, and cumulative totals were 258 and 16.  In addition, ther e were 41 applications for the 
extension of validity of invention patents from th e State Intellectual Property Office in 2005 and the 
department had received a cumulative total of 44 applications by the end of 2005. 
(d) Compulsory licensing and parallel imports 
86. The provisions for compulsory licensing of intellectual property rights are contained in 
Articles 109 to 116 of the Industrial Property Code.  Currently, there are no compulsory licence granted in Macao, China.  There is no parallel impor t policy with respect to intellectual property.   
(e) Trade secrets 
87. Trade secrets are protected under the provisions of the chapter on unfair competition of the 
Commercial Code.  The Code was approved by Decr ee-Law No. 40/99/M in 1999 and entered into 
force that year.  Trade secrets are defined in  Article 166 as being any technical or commercial 
information that fulfils the following requirements:  it must have a practical use;  it must provide an 
economic benefit to the holder;  it must not be public knowledge;  the holder must take appropriate 
security measures to guarantee its respective confidentiality.  
(iv) Competition policy  
88. While Macao, China does not have a comprehensive law on competition policy, it recognizes 
the importance of a functioning fair and competitive market. The Government also follows closely competition policies formulated by other WTO Me mbers and maintains a flexible and open position 
with regard to competition policy.  The Commerc ial Code of Macao 1999 establishes some general 
disciplines in the context of competition amongst traders in order, inter alia , to safeguard fair 
competition as well as the freedom of economic initiatives. 
89. At the time of the previous Review it was consid ered that there was a lack of  competition in 
services markets in general.  Gaming services had been under private monopoly since 1961 and most 
public services, including telecommunications, utiliti es and transport, were provided by private 
companies with exclusive rights under governme nt concessions.  There have been various 
developments since then. 
Gaming 
90. Competition is keen in the gaming industry since the monopoly was ended in 2002.  After a 
tender process the Government granted three con cessions and subsequently three sub-concessions.
27  
                                                      
27 The three gaming concessionaires are (1) SJM (Soc iedade de Jogos de Macau, S.A.), which has a 
sub-concession with MGM Grand Paradise, S.A.; (2) Galaxy Casino, S.A., which has a sub-concession with 
Venetian Macau, S.A., and (3) Wynn Resorts (Macau), S.A., which has a sub-concession with PBL Diversões 
(Macau), S.A. Melco and PBL (Publis hing and Broadcasting Limited) ar e joint-venture partners in PBL 
Diversões (Macau), S.A.  Macao, China WT/TPR/S/181/Rev.1 
 Page 53 
 
 
As the concessionaires and sub-concessionaires comple te and open more casinos, increasingly intense 
competition is expected in the next few years.  The Government carries out strict and thorough 
inspection and monitoring of the concession compani es.  Any expansion of the concessionaires or the 
sub-concessionaires’ operations is s ubject to its prior approval.  
Telecommunications 
91. Mobile telephony has grown rapidly since the ending of the monopoly held by CTM 
(Companhia de Telecomunicações de Macau) in Augus t 2001, when the Government authorized the 
entry of two Hong Kong-based telecoms companies.  In October 2002, one mobile virtual network 
operator (MVNO) licence was also granted to one of the local paging companies;  3G mobile services 
will be available in 2007.  Public telecommunicati on services continue to be provided by CTM under 
a concessionary agreement that will end in 2011.   
Land transport 
92. Macao, China has two franchised public bus comp anies with partially overlapping routes.  
Competition in terms of fare prices does not exis t as the two companies charge uniform prices 
approved by the Government.  Nevertheless, the two companies are deemed to be competing in terms 
of their service, the quality of their buses, and their routes.   
Maritime transport 
93. There are four companies operating passenger ferries between Macao, China;  Hong Kong, 
China;  and Mainland China.  There is no exclusiv e right granted to any company operating maritime 
passenger transport. 
Air transport 
94. Currently, there are three incorporated airlines operating in Macao, China.  Only Air Macau, 
has been granted the concession by the Macao Government to operate both passenger and cargo 
flights to and from Macao, China.  East Asia Airlines solely provides helicopter passenger services 
between Macao, China, Hong Kong, China, and Shen zhen, China.  Jet Asia provides executive jet 
charter services for flights not exceeding 20 passenge rs.  However, during the first nine months of 
2006, Air Macau has granted sub-concessions to two other airline companies to operate air services 
between Macao SAR and other destinations that are not currently flown by Air Macau, and a third sub-concession is in the negotiation stage.  T hus, there could be three more airlines operating in 
the Special Administrative Region in the future, raising the total number of operators to five. 
Distribution 
95. Apparently there are no limitations to competition in the distribution subsector. 
Public utilities 
96. Most of Macao, China's public utilities, in particular water and electricity supply, are 
provided by private companies with exclus ive rights under government concessions.   
Construction 
97. Competition for public projects in the construction sector, with the exception of land leasing, 
is generally created when tenders are announced pu blicly and interested entities may, in accordance WT/TPR/S/181/Rev.1 Trade Policy Review 
Page 54 
 
 
with the requirements, submit bids for consider ation.  When a tender is deemed unnecessary or 
inappropriate, the Government may, at its discreti on and for the benefit of Macao, China, offer the 
project to the most experienced entity, or the en tity whose experience and/or conditions are deemed 
satisfactory.28  
Broadcasting 
98. There is one terrestrial TV broadcasting comp any, Teledifusão de Macao, S.A.R.L. (TDM), 
and two radio broadcasting comp anies, TDM and Rádio Vila Verde in Macao.  Two companies 
(Macao Cable TV and Macao Lotus Broadcasting TV ) provide satellite TV broadcasting service via 
the system and infrastructure operated by Telesat -Comunicações por Satélite, Limitada.  The setting 
up of broadcasting stations in Macao, China is encouraged, as long as the market can sustain the 
expansion.29 
99. No products are subject to price controls or admi nistered prices.  However, in order to protect 
the public interest, prices of most public utilities, su ch as water, electricity, telephone, postal charges, 
bus fares, taxi fares, etc., are administered or monitored by the respective regulatory bodies through 
means of administrative approval on fares and charge  adjustments.  There is no differentiation among 
different user groups or industries.  The Secretary for Transportation and Public Works is responsible 
for water, electricity, telephone, and postal charge s, as well as for bus fares, while the Civic and 
Municipal Affairs Bureau is responsible for taxi fares.   
100. The Government of Macao, China does not inte rvene in the market to maintain minimum 
national reserve stocks of certain commodities on strategic or security grounds. 
(v) Corporate governance 
101. The Financial System Act (FSA) and other guide lines issued by the Monetary Authority of 
Macao (AMCM) constitute the regulatory framework for prudential supervisi on of credit institutions 
to closely monitor and evaluate the quality and eff ectiveness of credit institutions' internal control.  A 
number of supervisory measures aim to strengthe n corporate governance in the financial sector, 
covering, inter alia :  the roles of boards of directors and senior management;  effective management 
of conflict of interest;  requirement that credit inst itutions be audited by external auditors that are 
approved in advance by the AMCM;  disclosure of  financial and management information to the 
public;  and the role of supervisors in promo ting and assessing sound corporate governance practices.  
                                                      
 28 The exemption of tender is legal when conditio ns are in line with D ecree-Law No. 122/84/M, 
amended by Decree-Law No. 30/89/M.  
29 In order to promote the activities of satellite TV broadcasting services, modifications were made to 
Decree Law No. 3/98/M in 2004 through the publication of Administrative Regulation No. 6/2004, by which the 
royalty charge for the provision of satellite broadcasting services was reduced from 3.0 % to 1.5%, effective from 1 January 2003.