The following agreements have been signed by the two places after the signing of the main document of "Mainland/Hong Kong Closer Economic Partnership Arrangement" (CEPA) on 29 June 2003:

This Bureau has been constantly consulting the construction sector on issues related to implementation of CEPA. Meetings have been arranged with the Ministry of Housing and Urban-Rural Development (the then Ministry of Construction) to discuss issues raised by the construction sector.

Please click here to view CEPA results of each phase regarding the construction sector.

Generally speaking, CEPA commitments cover three aspects, i.e., mutual recognition of professional qualifications, registration of professionals, as well as contractors and consultants entering Mainland market.

Mutual Recognition of Professional Qualifications

• Competent authorities or professional bodies of both sides will commence exchanges on the mutual recognition of qualifications of registered electrical exploration & design engineers and registered public facility exploration & design engineers and will start technical exchanges on registered geotechnical exploration & design engineers and land surveying. (CEPA Supplement IV and the Ecotech Agreement)

• Both sides will establish a working group to study and take forward matters in connection with registration and practice for construction sector professionals after they have acquired professional qualifications through mutual recognition. (CEPA Supplement IV and the Ecotech Agreement)

• Competent authorities or professional bodies of both sides will carry on the mutual recognition of qualifications for professionals in disciplines which have mutual recognition agreements signed and well-tested conditions met. (CEPA Supplement V and the Ecotech Agreement)

• The two sides agree to take forward the work on mutual recognition of professional qualifications (supervision engineering) between Supervision Engineers of the Mainland and Building Engineers of Hong Kong and recognition of Hong Kong Architects for obtaining qualification of Supervision Engineers of the Mainland. (CEPA Supplement VI and the Ecotech Agreement)

• Competent authorities or professional bodies of both sides will take forward the technical exchanges of landscape architectural professionals between the two sides. (CEPA Supplement VI and the Ecotech Agreement)

• The two sides shall continue with the mutual recognition of professional qualifications between real estate appraisers in the Mainland and general practice surveyors in Hong Kong, and between cost engineers in the Mainland and quantity surveyors in Hong Kong. (CEPA Supplement IX and the Ecotech Agreement)

• Study the matters related to carrying on the mutual recognition of qualifications between Supervision Engineers of the Mainland and Building Surveyors of Hong Kong. (The Ecotech Agreement)

• To extend the scope of mutual recognition of qualifications; to renew the expired agreements for mutual recognition of professional qualifications, including agreements between structural engineers in Hong Kong and the Mainland, planners in Hong Kong and urban planners in the Mainland, building surveyors in Hong Kong and supervision engineers in the Mainland, and architects in Hong Kong and the Mainland. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• To arrange for mutual recognition of professional qualifications between architects, structural engineers and building surveyors of Hong Kong who possess the membership of professional institutions in Hong Kong, and architects, structural engineers, building surveyors of the Mainland who possess the membership of respective professional institutions in the Mainland. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• To allow professionals who obtained the qualification of General Practice Surveyors in Hong Kong to directly register for practice in Qianhai of Shenzhen, Hengqin of Zhuhai and Nansha of Guangzhou and enable them to provide real estate appraisal services without the need to obtain professional qualification in the Mainland through mutual recognition. (Agreement Concerning Amendment to the Agreement on Trade in Services)

Registration of Professionals

• Both sides will establish a working group to study and take forward matters in connection with registration and practice for construction sector professionals after they have acquired professional qualifications through mutual recognition. (CEPA Supplement IV and the Ecotech Agreement)

• Regarding elective courses of the continuing education which Mainland’s registered architects have to attend, Hong Kong service suppliers are allowed to complete elective courses in Hong Kong or to be taught by Mainland teachers in Hong Kong. The arrangement for conducting elective courses of the continuing education must be recognized by the Mainland authorities. (CEPA Supplement X)

• Regarding the elective courses of continuing education which class 1 registered structural engineers have to take, Hong Kong service suppliers are allowed to complete the courses in Hong Kong or to be taught by teachers sent from the Mainland. The arrangements for taking the elective courses of continuing education are subject to the approval of the Mainland authorities. (Agreement between the Mainland and Hong Kong on Achieving Basic Liberalization of Trade in Services in Guangdong)

• Regarding the elective courses of continuing education which supervision engineers have to take, Hong Kong service suppliers are allowed to complete all the courses in Shenzhen Municipality. (Agreement between the Mainland and Hong Kong on Achieving Basic Liberalization of Trade in Services in Guangdong)

• Hong Kong residents who meet the relevant requirements are allowed to take the following professional and technical personnel qualification examinations for: registered fire engineers, registered land surveying and design engineers, medical practitioners specialized in public health, veterinary practitioners. Corresponding qualification certificates will be issued to those who have passed the examinations. (Agreement between the Mainland and Hong Kong on Achieving Basic Liberalization of Trade in Services in Guangdong)

• Hong Kong professionals, who have obtained Mainland's construction professional qualifications through mutual recognition, are allowed to register and practise in the Mainland and enjoy the same treatment as Mainland professionals having the same professional qualifications. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's registered urban planner qualification, are allowed to register in the Mainland regardless of whether they are registered in Hong Kong. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's supervision engineer qualification, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's class 1 registered architect qualification by mutual recognition, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained through examination Mainland’s registered architect qualification, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. They are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications in the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained through examination Mainland’s registered architect qualification, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. They are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications in the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's class 1 registered structural engineer qualification by mutual recognition, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained through examination Mainland’s registered structural engineer, registered civil engineer (harbour and waterway), registered public facility engineer, registered chemical engineer or registered electrical engineer qualification, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. They are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications within the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Regarding the mandatory courses of continuing education for mutual recognition of professional qualifications, Hong Kong service suppliers are allowed to complete all the courses in Hong Kong. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• To allow professionals who obtained the qualification of General Practice Surveyors in Hong Kong to directly register for practice in Qianhai of Shenzhen, Hengqin of Zhuhai and Nansha of Guangzhou and enable them to provide real estate appraisal services without the need to obtain professional qualification in the Mainland through mutual recognition. (Agreement Concerning Amendment to the Agreement on Trade in Services)

Major Special Offers for Contractors & Consultants Entering Mainland Market

Contractors

• For construction enterprises set up in the Mainland by Hong Kong service suppliers, the construction contract performance of the enterprises both in the Mainland and outside the Mainland is taken into account in assessing the qualification of the construction enterprises in the Mainland. (CEPA Supplement I)

• There will be no restriction on the proportion of Hong Kong permanent residents being project managers approved by the qualification administration authorities for construction enterprises in the Mainland set up by Hong Kong service suppliers. (CEPA Supplement I)

• From the signing date of this agreement and before promulgation of the new "Standards for the Qualifications of Construction Enterprises", the recognition policy of the then-Ministry of Construction for Hong Kong Project Managers concerning the qualification assessment of Hong Kong-invested construction enterprises with Mainland will remain unchanged. The recognition of Hong Kong Project Managers will remain valid for the purpose of qualification administration of such enterprises employing them originally. (CEPA Supplement VI)

• After promulgation of the new "Standards for the Qualifications of Construction Enterprises", the originally recognized Hong Kong Project Managers will be allowed to continue to act as Project Managers of projects that they contracted or have commenced construction before promulgation of the standards, until completion. (CEPA Supplement VI)

• The residency requirement is waived for Hong Kong permanent residents employed as engineering technical staff and financial managerial staff. (CEPA Supplement I)

• To allow Hong Kong service suppliers to wholly acquire construction enterprises in the Mainland. (CEPA main document)

• Construction enterprises in the Mainland set up and invested by Hong Kong service suppliers are exempted from foreign investment restrictions when undertaking Chinese-foreign joint construction projects. (CEPA main document)

• Enterprises which have acquired construction qualification certificates are permitted in accordance with laws to bid for construction projects in all parts of the Mainland. (CEPA main document)

• For construction service enterprises, in the form of equity joint ventures or contractual joint ventures, set up in the Mainland by two or more Hong Kong service suppliers, the performance of all individual enterprises both in Hong Kong and in the Mainland is taken into account in assessing the qualification of the equity joint ventures or contractual joint ventures enterprises in the Mainland. (CEPA Supplement II)

• Contractual service providers (see Note) employed by Hong Kong service suppliers, in the mode of movement of natural persons, are allowed to provide construction and related engineering services in the Mainland. (CEPA Supplement X)

• Mainland has opened up 11 sub-sectors of construction and related engineering services in Mainland to participation by Hong Kong enterprises and professionals by way of a negative list. In respect of the mode of “commercial presence” (i.e. establishment of enterprise in Mainland by Hong Kong service suppliers), national treatment is offered except 6 measures set out as inconsistent with or inapplicable to the obligation of national treatment. (Please refer to the Appendix I for details) (Agreement on Trade in Services and Agreement Concerning Amendment to the Agreement on Trade in Services and Agreement Concerning Amendment to the Agreement on Trade in Services) 

• When Hong Kong service suppliers set up construction and engineering design enterprises in the Mainland, they are allowed to employ architects and structural engineers registered in Hong Kong (who have not yet obtained the relevant professional qualifications in the Mainland), who may be regarded as key professional and technical personnel, but not registered personnel, in assessing the enterprise qualifications (assessment of the qualifications for key professional and technical personnel is limited to their academic qualifications, years of practice in construction design, Hong Kong registration qualifications, performance and reputation in the construction design sector, etc. but not their titles) (Agreement Concerning Amendment to the Agreement on Trade in Services)

• When foreign wholly-owned or joint-venture urban-rural planning enterprises declare their enterprise qualifications, Hong Kong professionals in their employment, who have obtained Mainland's registered planner qualification through mutual recognition, can be regarded as essential registered personnel during the assessment. (Agreement Concerning Amendment to the Agreement on Trade in Services)

Consultants

• To allow Hong Kong service suppliers to provide, in the form of wholly-owned operations, architectural services, engineering services, integrated engineering services, urban planning, landscape architectural services, and construction engineering cost consulting services. (CEPA main document and Supplement III)

• For construction and engineering design enterprises and urban planning service enterprises set up in the Mainland by Hong Kong service suppliers, the performance of the enterprises both in Hong Kong and in the Mainland is taken into account in assessing the qualification of the enterprises in the Mainland. (CEPA Supplement II)

• To relax the requirements under Article 15 of the Ministry of Construction Decree No. 114 "Regulations on Administration of Foreign-Invested Construction and Engineering Design Enterprises" on the proportion of Hong Kong residents qualified as certified architects or certified engineers in China and the number of Hong Kong residents having the relevant design experience and allow Hong Kong enterprises to employ certified architects or certified engineers in China to fulfill the requirements on the application as a construction and engineering design enterprise by an equity or contractual joint venture construction and engineering design enterprise set up by a Hong Kong service supplier in the Mainland. (CEPA Supplement II)

• For urban planning service enterprises, in the form of equity joint ventures or contractual joint ventures, set up in the Mainland by two or more Hong Kong service suppliers, the performance of all individual enterprises both in Hong Kong and in the Mainland is taken into account in assessing the qualification of the equity joint ventures or contractual joint ventures enterprises in the Mainland. (CEPA Supplement II)

• To relax the requirement of the residential period in the Mainland for Hong Kong professional and technical staff by counting their period of residence in Hong Kong as their period of residence in the Mainland. (CEPA Supplement II)

• When the Hong Kong service suppliers set up construction and engineering design enterprises in the form of equity joint venture or contractual joint venture in the Mainland, there is no restriction on the proportion of the total capital contributed by the Mainland partners to the registered capital. (CEPA Supplement V)

• Hong Kong professionals, who have obtained Mainland's registered first class architect qualification or Mainland's registered first class structural engineer qualification, are allowed to act as partners to set up construction and engineering design offices in the Mainland in accordance with the relevant qualification requirements. For the enterprises, there is no restriction on the ratio of the number of the Hong Kong partners to the number of the Mainland partners, the ratio of the total capital contributed by the Hong Kong partners to that by the Mainland partners, and the residential period in the Mainland for the Hong Kong partners. (CEPA Supplement VII)

• The serving key technical personnel who are natural persons holding Hong Kong identity document in the construction and engineering design enterprises set up in the Mainland by Hong Kong service suppliers, are exempted from the requirement of residing in the Mainland for a cumulative period of no less than six months in a year. (CEPA Supplement X)

• Contractual service providers (see Note) employed by Hong Kong service suppliers, in the mode of movement of natural persons, are allowed to provide architectural, engineering and integrated engineering services in the Mainland. (CEPA Supplement X)

• Mainland has opened up 11 sub-sectors of construction and related engineering services in Mainland to participation by Hong Kong enterprises and professionals by way of a negative list. In respect of the mode of “commercial presence” (i.e. establishment of enterprise in Mainland by Hong Kong service suppliers), national treatment is offered except 6 measures set out as inconsistent with or inapplicable to the obligation of national treatment. (Please refer to the Appendix I for details) (Agreement on Trade in Services and Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's class 1 registered architect qualification through mutual recognition, are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications within the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's class 1 registered structural engineer qualification through mutual recognition, are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications within the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained Mainland's supervision engineer qualification, are recognised as registered practitioners for the purpose of declaration of supervision enterprise qualifications within the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained through examination Mainland's registered architect qualification, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. They are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications within the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• Hong Kong professionals, who have obtained through examination Mainland's registered structural engineer, registered civil engineer (harbour and waterway), registered public facility engineer, registered chemical engineer or registered electrical engineer qualification, are allowed to register and practise in the Mainland regardless of whether they are registered practitioners in Hong Kong. They are recognised as registered practitioners for the purpose of declaration of engineering design enterprise qualifications within the Mainland, in accordance with the relevant Mainland regulations. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• When Hong Kong service suppliers set up construction and engineering design enterprises in the Mainland, they are allowed to employ architects and structural engineers registered in Hong Kong (who have not yet obtained the relevant professional qualifications in the Mainland), who may be regarded as key professional and technical personnel, but not registered personnel, in assessing the enterprise qualifications (assessment of the qualifications for key professional and technical personnel is limited to their academic qualifications, years of practice in construction design, Hong Kong registration qualifications, performance and reputation in the construction design sector, etc. but not their titles) (Agreement Concerning Amendment to the Agreement on Trade in Services)

• When foreign wholly-owned or joint-venture urban-rural planning enterprises declare their enterprise qualifications, Hong Kong professionals in their employment, who have obtained Mainland's registered planner qualification through mutual recognition, can be regarded as essential registered personnel during the assessment. (Agreement Concerning Amendment to the Agreement on Trade in Services)

• To allow professionals who obtained the qualification of General Practice Surveyors in Hong Kong to directly register for practice in Qianhai of Shenzhen, Hengqin of Zhuhai and Nansha of Guangzhou and enable them to provide real estate appraisal services without the need to obtain professional qualification in the Mainland through mutual recognition. (Agreement Concerning Amendment to the Agreement on Trade in Services)

Note: The "contractual service provider" refers to a natural person who holds a Hong Kong Special Administrative Region identity document and enters the Mainland to provide temporary service for the performance of the service contract(s) secured in the Mainland by his/her employer. His/her employer should be a Hong Kong service supplier without commercial presence in the Mainland. The remuneration of a contractual service provider during his/her stay in the Mainland will be borne by the employer. The contractual service provider should possess academic qualification and technical (professional) qualification relevant to the services provided. During his/her stay in the Mainland, the contractual service provider cannot involve in any service activities irrelevant to the contract.
 

"The Mainland and Hong Kong Trade Co-operation Mechanism for Natural Sand"

The Hong Kong Special Administrative Region Government and the Ministry of Commerce signed the "Mainland and Hong Kong Trade Co-operation Mechanism for Natural Sand" under the CEPA in February 2007, so as to ensure a continuous supply of natural sand to Hong Kong to meet the needs of the local construction industry after the Mainland's export ban came into effect in March 2007.

In June 2012, this Bureau and the Ministry of Commerce signed the "Mainland and Hong Kong Trade Co-operation Mechanism for Natural Sand 2012" in order to strengthen the arrangement under the Co-operation Mechanism for the supply of natural sand for Hong Kong's major construction projects as well as to cater for the sustainable development of Hong Kong.

Looking Ahead

At present, many Hong Kong companies in the construction sector have successfully obtained the relevant enterprise qualification certificates and established enterprises to start up their businesses in the Mainland taking advantage of the concessions under CEPA and its related agreements. We will continue to make our best effort to engage the relevant Mainland authorities on further liberalisation of the Mainland market. We will also continue to strengthen the ties with the Mainland to explore business opportunities and promote co-operation between the construction and related engineering industries of the two places in future.