Regulation on Travel Agencies (2017 Amendment)

Regulation on Travel Agencies (2017 Amendment) Regulation on Travel Agencies (Issued by the Order No. 550 of the State Council of the People's Republic of China on February 20, 2009; amended for the first time according to the Decision of the State Council on Amending Certain Administrative Regulations on February 6, 2016; and amended for the second time in accordance with the Decision of the State Council to Amend and Repeal Certain Administrative Regulations) Chapter I General Provisions Article 1 This Regulation is formulated for purposes of strengthening the administration of travel agencies, protecting the legitimate rights and interests of tourists and travel agencies, maintaining the order of the tourism market, and promoting the healthy development of the tourism industry. Article 2 This Regulation shall apply to the establishment and business activities of travel agencies within the People's Republic of China. The term “travel agencies” as mentioned in this Regulation shall refer to enterprise legal persons that engage in such activities as soliciting, organizing and receiving tourists, provide tourists with relevant tourism services, and conduct domestic tourism business, inbound tourism business, or outbound tourism business. Article 3 The tourism administrative department of the State Council shall be responsible for the supervision and management of all travel agencies throughout the country. The tourism administrative departments of the local people's governments at and above the county level shall be responsible for the supervision and management of travel agencies in their administrative regions according to their functions. The relevant departments of industry and commerce, price, commerce, and foreign exchange, etc. of the people's governments at and above the county level shall, according to the division of functions, supervise and manage travel agencies according to law. Article 4 Travel agencies shall observe the principle of voluntariness, equality, fairness, and honesty, enhance the service quality and protect the legitimate rights and interests of tourists. Article 5 An industry organization of travel agencies shall provide services for travel agencies according to the articles of association, play the role of coordination and self-discipline, guide travel agencies to compete legitimately and fairly as well as operate honestly. Chapter II Establishment of Travel Agencies Article 6 To apply for operating domestic tourism business and inbound tourism business, a travel agency shall obtain the legal person status as an enterprise, and its registered capital shall not be less than 300,000 yuan. Article 7 To apply for operating domestic tourism business and inbound tourism business, a travel agency shall file the application with the tourism administrative department of the province, autonomous region, or municipality directly under the Central Government where it is located or, as authorized by it, the tourism administrative department at the level of a districted city, and submit relevant documents proving that it satisfies the requirements of Article 6 of this Regulation. The tourism administrative department accepting the application shall make a decision to grant the application or not within 20 working days of accepting the application. If the application is granted, a travel agency business permit shall be issued to the applicant; or if the application is not granted, the applicant shall be notified in writing of the decision with an explanation of the reasons for the decision. Article 8 A travel agency, which has obtained the business permit for two years or more, and is not subject to any punishment more serious than fine by the administrative body due to the infringement upon the legitimate rights and interests of tourists, may apply for operating the outbound tourism business. Article 9 To apply for operating the outbound tourism business, an applicant shall file an application with the tourism administrative department of the State Council or with the commissioned tourism administrative department of the province, autonomous region or municipality directly under the Central Government. The tourism administrative department accepting the application shall make a decision on approval or disapproval within 20 workdays from the acceptance of the application. In the case of approval, it shall replace the business permit for travel agencies with a new one for the applicant, in the case of disapproval, it shall notify the applicant in written form and give reasons. Article 10 Where a travel agency plans to establish a branch, it shall handle the registration of establishment at the administrative department for industry and commerce at the place where the branch is located, and shall file the registration for archival purpose with the tourism administrative department at the place where the branch is located within three workdays from the date of registration of establishment. The establishment of a branch of a travel agency shall not be subject to geographical restriction. The business scope of the branch shall not exceed that of the travel agency establishing it. Article 11 To establish a service outlet for the purpose of soliciting tourists and providing tourism consultation (hereinafter referred to as the service outlet of a travel agency), the travel agency shall handle the formalities for registration of establishment at the administrative department for industry and commerce according to law, and file the registration for archival purpose with the tourism administrative department at the place where it is located. The service outlet of a travel agency shall be subject to the uniform management of the travel agency and shall not be engaged in the activities other than soliciting tourists and consultation. Article 12 Where a travel agency alters its name, business place, legal representative or other registration matters or terminates its business operation, it shall handle the corresponding registration of modification or cancellation at the administrative department for industry and commerce, and file the registration for archival purpose with the original tourism administrative department that issued the permit within ten workdays from completing the handling of registration, and have its business permit for travel agencies replaced or returned. Article 13 A travel agency shall, within three workdays from the day when it obtains the business permit for travel agencies, open a special account for quality assurance fund in the bank designated by the tourism administrative department of the State Council, deposit quality assurance fund, or provide the tourism administrative department making the approval with bank guarantee which it obtains according to law and the secured amount of which is not less than the amount of the corresponding quality assurance fund. A travel agency operating the domestic tourism business and inbound tourism business shall deposit the quality assurance fund of 200,000 yuan; a travel agency operating the outbound tourism business shall increase the deposit of quality assurance fund by 1,200,000 yuan. The interests of the quality assurance fund shall belong to the travel agency. Article 14 A travel agency shall increase its amount of quality assurance fund by 50,000 yuan in its special account for each branch it establishes to operate the domestic tourism business and inbound tourism business; shall increase its amount of quality assurance fund by 300,000 yuan in its special account for each branch it establishes to operate the outbound tourism business. Article 15 Where a travel agency falls under any of the following circumstances, the tourism administrative department may use the quality assurance fund of the travel agency: (1) The travel agency breaches the tourism contract and infringes upon the legitimate rights and interests of tourists, which is verified as true by the tourism administrative department; or (2) The travel agency causes the lost of tourism fees prepaid by tourists due to dissolution, bankruptcy or any other reason. Article 16 Where it is determined by the judgment, ruling or any other effective legal document of the people's court that a travel agency damaged the legitimate rights and interests of tourists but the travel agency refuses to make or is incapable of making the compensation, the people's court may transfer the money for the compensation from the account of quality assurance fund of the travel agency. Article 17 Where a travel agency has not been subject to the punishment more serious than fine by the administrative body due to any infringement upon the legitimate rights and interests of tourists within three years from the day when it pays or makes up the quality assurance fund, the tourism administrative department shall reduce the amount of quality assurance fund deposited by the travel agency by 50%, and make an announcement to the public. The travel agency may reduce its quality assurance fund upon the strength of the certificates issued by the tourism administrative department of the province, autonomous regions, or municipality directly under the Central Government. Article 18 Where a travel agency has been subject to punishment more serious than fine by the administrative body due to any infringement upon the legitimate rights and interests of tourists after the tourism administrative department has used the quality assurance fund to compensate for the loss suffered by tourists or reduced the quality assurance fund according to law, it shall make up the quality assurance fund within five workdays from the day when it receives the notice on making up the quality assurance fund from the tourism administrative department. Article 19 Where a travel agency does not engage in tourism business any more, it shall take back the quality assurance fund from the bank upon the strength of the certificates issued by the tourism administrative department. Article 20 The specific measures for the management of the deposit and use of the quality assurance fund shall be separately formulated by the tourism administrative department of the State Council and the public finance department of the State Council jointly with the relevant departments. Chapter III Foreign-invested Travel Agencies Article 21 The provisions of this Chapter shall apply to foreign-invested travel agencies; if it is not provided for in this Chapter, other provisions of this Regulation shall apply. The term “foreign-invested travel agencies” as mentioned in the preceding paragraph shall include Sino-foreign equity joint, Sino-foreign cooperative and solely foreign-funded travel agencie......