Notice on Issuing the Measures for the Administration of the “Products Inspected by Macao,” “Products Supervised by Macao,” and “Designed by Macao” Signs (Interim)

This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.

Notice on Issuing the Measures for the Administration of the “Products Inspected by Macao,” “Products Supervised by Macao,” and “Designed by Macao” Signs (Interim)

To all working institutions of the Executive Committee of the Cooperation Zone and all relevant units:

The Measures for the Administration of the “Products Inspected by Macao,” “Products Supervised by Macao,” and “Designed by Macao” Signs (Interim) has been approved upon deliberation at the session of the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and are hereby issued to you for your careful implementation. Should any issues arise during implementation, please promptly report them to the Commercial Services Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.

This Notice is hereby issued for your compliance.

Commercial Services Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

October 20, 2023

Normative Document No. 4/2023 of the Commercial Services Bureau

Measures for the Administration of the “Products Inspected by Macao,” “Products Supervised by Macao,” and “Designed by Macao” Signs (Interim)

Article 1.

Purpose of the Measures

In order to promote the moderate diversification of Macao’s economy and to implement the Master Plan for the Construction of Guangdong-Macao In-Depth Cooperation Zone in Hengqin, these Measures are formulated in accordance with the Regulations on Promoting the Development of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, which provide that Traditional Chinese Medicine (TCM) products, food, and health food produced in the Cooperation Zone and approved and registered in Macao may use the signs ‘Products Inspected by Macao,’ ‘Products Supervised by Macao,’ and ‘Designed by Macao’,” and in light of the actual circumstances of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”).

Article 2.

Scope of Application

These Measures apply to the application, use, and administration of the signs “Products Inspected by Macao,” “Products Supervised by Macao,” and “Designed by Macao” (hereinafter collectively referred to as the “signs”) within the Cooperation Zone.

The signs as referred to in these Measures apply to TCM products, food, and health food that have been approved and registered in Macao and are produced in the Cooperation Zone (hereinafter collectively referred to as the “products”).

Article 3.

Definitions

For the purposes of these Measures, the following definitions apply:

1. “Products Inspected by Macao” refers to TCM products, food, and health food approved and registered in Macao that are produced in the Cooperation Zone by the entity using the sign;

2. “Products Supervised by Macao” refers to TCM products, food, and health food approved and registered in Macao that are produced in the Cooperation Zone by a legally qualified manufacturing enterprise entrusted by the entity using the sign;

3. “Designed by Macao” refers to TCM products, food, and health food approved and registered in Macao that are produced in the Cooperation Zone and have been granted a valid Macao patent, right for design, or utility model right;

4. “TCM Products” refers to products made from Chinese medicinal materials, TCM decoction pieces, or TCM extracts, which are processed into specific dosage forms according to prescribed formulas and pharmaceutical processes under the guidance of TCM theory, for the purpose of disease prevention and treatment;

5. “Food” refers to various finished products and raw materials intended for human consumption or drinking, as well as items traditionally recognized as both food and Chinese medicinal materials, but excluding items intended for therapeutic purposes. For the purposes of these Measures, “food” does not include health food;

6. “Health Food” refers to food products that claim to have and actually possess specific health functions or that are intended to supplement vitamins and minerals. Such food is suitable for specific populations, helps regulate body functions, is not intended for the treatment of diseases, and does not pose any acute, subacute, or chronic hazard to human health;

7. “Value-Added by Processing Reaching 30% or More” refers to situations where the value added after manufacturing and processing by the applicant entity and its entrusted enterprise(s) in the Cooperation Zone reaches or exceeds 30%. The value-added shall be calculated according to the following formula:

“Domestic price of goods” refers to the transaction price when goods are sold to the rest of the Chinese mainland (outside the Cooperation Zone);

“Price of imported materials” refers to the transaction price of raw materials of the same goods imported by the enterprise from outside the Chinese mainland, including transportation costs, related expenses, and insurance premiums incurred before unloading at the domestic entry point;

“Price of domestically purchased materials outside the Cooperation Zone” refers to the transaction price of raw materials of the same goods purchased by the enterprise from areas outside the Cooperation Zone within the Chinese mainland, including transportation costs, related expenses, and insurance premiums incurred in transporting the materials to the Cooperation Zone;

If, during the implementation of these Measures, the relevant authorities adopt a different calculation formula for tariff exemption on domestically sold goods processed in the Cooperation Zone, such formula shall prevail; and

8. “Macao residents” refers to both permanent and non-permanent residents of Macao.

Article 4.

Entrusted Management Institution and Responsibilities

The Commercial Services Bureau of the Cooperation Zone entrusts the Macao Quality Brand Promotion Center in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Macao Quality Brand Promotion Center”) with the specific tasks of operating and managing the signs, as well as supervising the use of the signs.

The main responsibilities of the Macao Quality Brand Promotion Center are as follows:

1. Responsible for the design, copyright registration, trademark registration, and management of the signs, and legally enjoys the copyright and trademark-related rights associated with the signs;

2. Responsible for formulating guidelines for the application and use of the signs, as well as relevant procedural documents;

3. Responsible for forming an expert review panel for the signs and supervising the panel’s review activities; and

4. Responsible for the entire process management, including application acceptance, qualification review, organization of expert reviews, filing and issuance of certificates, post-certification supervision, development of publicity platforms, brand rights protection, brand promotion activities, and other related matters.

Article 5.

Qualification Review Requirements for Entities Using the Signs

The Macao Quality Brand Promotion Center shall review the qualifications of entities applying to use the signs based on the following six criteria:

1. Entities applying to use the sign “Products Inspected by Macao” shall be enterprises legally established in the Cooperation Zone with independent legal entity status. Entities applying to use the signs “Products Supervised by Macao” or “Designed by Macao” may be enterprises legally established either in the Cooperation Zone or in Macao with independent legal entity status;

2. Enterprises in the Cooperation Zone applying to use the signs shall have Macao residents or enterprises legally established in Macao with independent legal entity status among their investors, and the combined shareholding ratio of such investors shall be at least 25%;

3. Enterprise’s business scope shall include TCM products, food, or health food;

4. At the time of application, enterprises shall not be included in the List of Enterprises with Abnormal Operations, the List of Parties with Serious Illegal and Dishonest Acts, or the List of Seriously Dishonest Entities Subject to Joint Punishment;

5. Within the past two years, enterprises shall not have been subject to administrative penalties such as license suspension, qualification downgrading, license revocation, restrictions on production or business operations, orders to suspend production or business activities, orders for closure, or restrictions on employment; and

6. Enterprises shall not have committed any other serious violations of laws or regulations.

Article 6.

Product Review Requirements for Using the Signs

The Macao Quality Brand Promotion Center shall review the products applying to use the signs based on the following five criteria:

1. Products applying to use the sign “Products Inspected by Macao” shall be processed and manufactured independently by the applicant entity in the Cooperation Zone, with the value-added by processing reaching 30% or more;

2. Products applying to use the sign “Products Supervised by Macao” shall be processed and manufactured in the Cooperation Zone by legally qualified manufacturing enterprises entrusted by the applicant entity, with the value-added by processing reaching 30% or more;

3. Products applying to use the sign “Designed by Macao” shall be processed and manufactured in the Cooperation Zone with the value-added by processing reaching 30% or more. The applicant entity shall also have obtained a valid Macao patent, right for design, or utility model for the corresponding product;

4. Products shall be approved and registered by the government of the Macao Special Administrative Region, with corresponding certificates provided, including but not limited to:

(1) For TCM products: A certificate of registration of proprietary Chinese medicine or related supporting documents issued by the Pharmaceutical Supervision and Administration Bureau of Macao;

(2) For food and health food: Import customs declaration sheets, import licenses, or industrial licenses approved by the Macao Customs and other relevant Macao government authorities; and

5. Product quality and safety shall comply with the standards and requirements of both Macao and the intended sales destinations. For products produced by enterprises in the Cooperation Zone entrusted by Macao enterprises and sold in the Chinese mainland, the sales entity shall comply with applicable laws and regulations of the Chinese mainland.

The Macao Quality Brand Promotion Center shall require the applicant entity to submit a self-declaration regarding its primary responsibility for the product’s full life-cycle, quality control, compliance with quality standards, proper use of the sign, authenticity of materials, and other related matters.

Article 7.

Acceptance, Review, Publication, and Announcement

The Macao Quality Brand Promotion Center shall be responsible for accepting applications and reviewing the qualifications and submitted materials of the applicants.

The Macao Quality Brand Promotion Center shall organize an expert review panel for the signs to conduct conformity reviews, and the review conclusions shall serve as the basis for issuing authorization certificates for the use of the signs.

Upon passing the expert review, the Macao Quality Brand Promotion Center shall publish the review results on its official website for a public notice period of five working days.

The Macao Quality Brand Promotion Center shall establish a dedicated section on its website to publicly disclose information about entities authorized to use the signs and their approved products.

Article 8.

Requirements for Using the Signs

The Macao Quality Brand Promotion Center shall sign an agreement for the use of the signs with each approved entity, specifying the permitted methods of use, applicable products, usage period, and liabilities for breach of contract. The Macao Quality Brand Promotion Center shall also conduct regular or unscheduled inspections to monitor the compliance of the entities using the signs.

Entities using the signs shall comply with the agreement and use the signs properly. The entities shall not alter the design or shape of the signs. It is prohibited to forge or illegally use the signs, to lease, lend, or transfer authorization certificates for the signs, or to use the signs for false advertising, deception, or misleading the public.

Article 9.

Certificate Modification and Renewal

The Macao Quality Brand Promotion Center shall take necessary measures to ensure the timely updating of information relating to entities using the signs. If any details recorded on the authorization certificate change, the entity using the signs shall apply for the relevant modification within ten working days.

The validity period of the authorization certificate for the signs shall be two years. The Macao Quality Brand Promotion Center shall specify the requirements for the modification and renewal of the authorization certificate and publish them on its website.

The Macao Quality Brand Promotion Center shall review the application materials submitted for the modification or renewal of authorization. Where the entity using the signs declares that its qualifications for sign usage, the production conditions of its products, and applicable standards have not changed, the Macao Quality Brand Promotion Center may waive the expert review process. Where the qualifications of the entity using the signs or its products have changed, or where changes to the production conditions or applicable standards may affect product quality and safety, the Macao Quality Brand Promotion Center shall organize an expert review panel to evaluate the modification or renewal application.

Article 10.

Suspension and Termination of the Right to Use the Signs

The Macao Quality Brand Promotion Center shall suspend or terminate the right to use the signs of an entity under any of the following circumstances, in accordance with the agreement:

1. Where the business license, independent legal entity status, or relevant administrative licenses (including production permits and product registration or filing certificates) of the entity using the signs or its entrusted manufacturing enterprise becomes invalid, the right to use the signs shall be suspended and may only be resumed upon revalidation;

2. Where the entity using the signs fails to apply for modification in a timely manner, its right to use the signs shall be suspended. If no application is submitted within ten working days after the suspension, the right to use the signs shall be terminated;

3. Where the business license, independent legal entity status, or relevant administrative licenses (including production permits and product registration or filing certificates) of the entity using the signs are canceled, revoked, or withdrawn, its right to use the signs shall be terminated;

4. Where the business license, independent legal entity status, or relevant administrative licenses (including production permits and product registration or filing certificates) of the entrusted manufacturing enterprise are canceled, revoked, or withdrawn, the right to use the signs for the corresponding products shall be suspended. If the entity using the signs re-entrusts a qualified manufacturing enterprise and passes the review within six months, the entity may continue to use the signs; otherwise, its right to use the signs shall be terminated;

5. Where the entity using the signs voluntarily applies to discontinue the use of the authorized signs during the validity period, the right to use the signs may be terminated after the Macao Quality Brand Promotion Center evaluates and confirms that there will be no adverse impact on consumers or society;

6. Where the entity using the signs fails to comply with the agreement for sign usage or to fully fulfill its self-declaration commitments—including but not limited to improper promotion of the authorization certificate or signs during brand promotion or product sales activities—its right to use the signs shall be suspended. Usage may only be resumed after rectification. If the entity fails to comply with the agreement or fulfill its commitments even after rectification, its right to use the signs shall be terminated;

7. Where the products authorized to use the signs have quality issues that seriously infringe upon consumer rights and interests, the right to use the signs shall be terminated; and

8. Where the entity using the signs commits other serious violations of laws or regulations, its right to use the signs shall be terminated.

Article 11.

Supervision and Administration

The Commercial Services Bureau of the Cooperation Zone will supervise the operation and management of the signs of the Macao Quality Brand Promotion Center.

The Commercial Services Bureau of the Cooperation Zone may collaborate with relevant government departments and professional institutions in Guangdong and Macao to provide guidance, evaluation, and supervision over the issuance procedures, fairness, effectiveness of use, rights protection, brand building, and value realization of the signs.

The Macao Quality Brand Promotion Center shall supervise the entire review process conducted by the expert review panel for the signs to ensure the independence and impartiality of the review.

The Macao Quality Brand Promotion Center shall consistently supervise the compliance of entities using the signs and shall manage matters related to the modification and renewal of authorization certificates.

The Macao Quality Brand Promotion Center shall conduct supervision, inspection, and quality sampling of both the entities using the signs and the products bearing the signs.

The Macao Quality Brand Promotion Center shall cooperate with the Commercial Services Bureau of the Cooperation Zone to strengthen communication and information-sharing with relevant regulatory departments in Guangdong and Macao, and shall promptly disclose information on supervision, inspection, and product sampling inspections.

Any entity or individual discovering violations of laws, regulations, or work discipline during the acceptance or review of sign usage applications will have the right to report such violations to the Commercial Services Bureau of the Cooperation Zone.

Article 12.

Legal Protection

Where any person uses, forges, or illegally uses the signs without authorization, infringes upon the lawful rights and interests of the signs, or continues to use the signs after suspension or termination of authorization, the Macao Quality Brand Promotion Center shall pursue the relevant legal liabilities in accordance with the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China, the Anti-Unfair Competition Law of the People’s Republic of China, the Advertising Law of the People’s Republic of China, and other relevant laws and regulations.

Article 13.

Fund Support

The Macao Quality Brand Promotion Center, entrusted by the Commercial Services Bureau of the Cooperation Zone, shall carry out operations and management related to the signs, including application acceptance, expert review, supervision and inspection, product sampling inspection, enterprise cultivation, and brand promotion. The relevant expenses will be included in the budget of the Commercial Services Bureau of the Cooperation Zone and will be allocated to the Macao Quality Brand Promotion Center in accordance with the prescribed procedures.

Article 14.

Interpretative Authority and Organization of Implementation

The Commercial Services Bureau of the Cooperation Zone reserves the right to interpret these Measures.

The Macao Quality Brand Promotion Center will formulate the operation guidelines and organize the implementation of these Measures.

Article 15.

Supplementary Provisions

During the implementation of these Measures, where a product applying for the use of the signs cannot be produced within the Cooperation Zone, it may, upon evaluation by the Macao Quality Brand Promotion Center and approval by the Commercial Services Bureau of the Cooperation Zone, be produced in Zhuhai and still be subject to these Measures by reference.

Article 16.

Effective Date and Validity Period

These Measures shall come into effect on October 30, 2023, and shall remain valid for a period of three years.