World Exposition Shanghai China 2010
Special Regulation No. 9
Concerning Commercial Activities by Official Participants
June 2007
Bureau of Shanghai World Expo Coordination
CHAPTER I: GENERAL PROVISIONS
Article 1 Purpose
Article 2 Applicability
1. The commercial activities in the context of this Special Regulation refer to the operation of restaurants and sales of goods by official participants in their respective sections.
2. The restaurants operated by official participants shall mainly serve the food with their national flavors or specialties and shall fall into three categories: high-class restaurants, cafeteria-style restaurants and fast-food (take-out) services.
3. The goods sold by official participants shall mainly be pictures, postcards, books, stamps, audio-video products, gifts and handicraft articles representative of the relevant countries or international organizations.
Article 3 Compliance with Laws and Regulations
1. All official participants shall comply with the relevant laws, regulations and rules of China, the General Regulations and the Special Regulations of Expo 2010, and the additional instructions and directives issued by the Organizer (hereinafter jointly referred to as "Laws and Regulations").
2. Additional instructions and directives are issued by the Organizer to provide more information on related subjects and further specify the rights and obligations of official participants and the Organizer.
3. The Organizer has the power to direct official participants to cease their commercial activities if the said activities violate the Laws and Regulations. Official participants shall follow the directives of the Organizer and bear the responsibility and losses arising therefrom.
4. Official participants shall ensure that persons and entities involved in commercial activities observe the Laws and Regulations and the provisions of the Participation Contract in the Expo Site.
CHAPTER II: AUTHORIZATION OF COMMERCIAL ACTIVITIES
Article 4 Responsibilities of Commissioner General of Section
1. Pursuant to Paragraph 2 of Article 19 of the General Regulations, the Commissioner General of Section shall have full responsibility for commercial and other activities in each national section. Regardless of the forms in which an official participant assigns its commercial activities to a third party, the Commissioner General of Section of the official participant shall have direct responsibility for the act of the said third party.
2. Pursuant to Article 7 of this Special Regulation and the Participation Contract, official participants shall pay to the Organizer royalties arising from their commercial activities. The Commissioner General of Section or his/her designated representative shall collect and deliver the royalties to the Organizer.
3. Official participants shall pay taxes on their commercial activities pursuant to the Laws and Regulations.
Article 5 Approval for Commercial Activities
1. Official participants shall submit in advance to the Organizer for approval proposals on the type of restaurants to be operated, the type, price and the price labeling of the food and goods to be sold, and the location, area, size, style, capacity and management methods of the commercial establishments. Such proposals shall also be submitted to the relevant Chinese authorities for final examination and approval.
2. Official participants need to obtain from the Organizer prior approval before installing automatic vending machines for their commercial activities.
3. Any change to the above items shall be subject to the consent of the Organizer.
Article 6 Areas for Commercial Activities
1. Pursuant to Paragraph 3 of Article 19 of the General Regulations, the space to be used by an official participant for commercial activities and accessible to the public shall not exceed 20% of the total covered exhibition space assigned to the official participant.
2. Official participants shall conduct commercial activities only within the area approved by the Organizer. Without the approval of the Organizer, official participants shall not transfer the area for commercial activities or conduct commercial activities elsewhere.
Article 7 Royalties
1. Official Participants shall pay to the Organizer royalties arising from their commercial activities in accordance with the Participation Contract. Royalties shall be collected on a monthly basis and the way of delivery shall be stipulated separately by the Organizer.
2. Royalties shall be calculated as a proportion of the after-tax revenues from commercial activities as follows:
(1) Restaurants
High-class restaurants 3%;
Cafeteria-style restaurants 6%;
Fast-food (take-out) services 8%.
(2) Boutiques 10%.
Article 8 Handling of Sales Income
1. Each official participant shall keep a record of daily sales income and report it to the Organizer in a way specified by the Organizer. The official participant shall open an account at a bank designated by the Organizer and deposit the daily sales income in that account within the time limit set by the Organizer. The Organizer may require the official participant to provide a detailed report about its sales income and account statements in a specified time, and audit, when necessary, the financial situation of the commercial activities.
2. Official participants shall use the cash register system designated by the Organizer to handle the sales income from their commercial activities.
Article 9 Confirmation and Examination of Commercial Operation
1. The Organizer may carry out on-site inspections of the commercial facilities of official participants to see if the facilities are legitimately operated in compliance with the Laws and Regulations. In such cases, the Organizer's representative or each inspector shall carry relevant credentials and present them upon request by the participant or other party concerned..
2. The Organizer may, based on the result of on-site inspections, direct the official participant concerned to take necessary remedial measures or measures of improvement. The official participant shall follow the directives of the Organizer.
Article 10 Sale of Exhibits after the Closing of Expo 2010
1. After the closing of Expo 2010, official participants may sell the exhibits or materials used during the Exposition. No royalties shall be paid to the Organizer on such sales.
2. If the above-mentioned items are sold by an official participant, they shall not enjoy the benefit of temporary admission, and shall be subject to the completion of import procedures, submission of the import license, and payment of applicable taxes in accordance with the Laws and Regulations.
Article 11 Publicity
1. Official participants may carry out publicity activities such as putting up and distributing posters, advertisements and notices within their sections. With the approval of the Organizer, official participants may place publicity materials outside their own sections. All the publicity materials shall bear the names and symbols of the official participants and indicate their exhibition items, and shall be subject to the examination of the Organizer. The publicity activities of official participants shall be conducted in compliance with the Laws and Regulations.
2. All the advertisements of official participants shall be in conformity with the requirements set forth by the Organizer. If a light-box advertisement needs to be installed, the official participant shall submit the design plan with detailed description of the specifications and location of the installation to the Organizer for approval.
3. To ensure the security, order and harmony of the Exposition, the Organizer may direct official participants to alter or remove their advertisements. The official participants concerned shall follow the directives of the Organizer.
4. Without the consent of the Organizer and the relevant General Commissioners of National Sections, official participants shall not use in their advertisements the names of other countries, regions, cities, or any other similar names.
5. Official participants shall not create blare or use loudspeakers outside their sections to attract visitors and promote their items.
Article 12 Special Events
1. Official participants shall submit to the Organizer for approval six months prior to the opening of Expo 2010 the plans if they wish to hold special events at the Expo Site. The plans should list the time, venue and the themes of the events as well as other related information. The Organizer may change or supplement the items related to the special events.
2. The Organizer shall not charge any administrative fees for such special events, but shall be entitled to make audio-video recordings of these events for non-commercial purposes.
Article 13 Performances Related to Commercial Activities
With the approval of the Organizer, official participants may organize music, dance and other performances within the area of its commercial activities, but shall not charge any fees for such performances.
Article 14 Distribution of Samples and Foodstuff
1. The free samples and foodstuff that official participants may distribute to visitors within their own sections shall be of their national origin and flavors. Official participants may use the machinery, devices or equipment exhibited in the Exposition to produce such samples and foodstuff to be distributed free of charge.
2. The official participant who intends to distribute free samples and foodstuff shall submit to the Organizer for approval an application, including a list of items to be distributed, their quantity, time and place. All the free samples and foodstuff to be distributed shall be clearly indicated to visitors by the official parcipant.
3. In case the official participant violates the Laws and Regulations in the course of distributing free samples and foodstuff or the distribution is detrimental to the security, order and harmony of the Exposition, the Organizer may revoke its approval and direct that such activities be stopped.
Article 15 Restaurant for Staff
With the approval of the Organizer, each official participant may set up a restaurant for the exclusive use of its own staff. In this case, the official participant shall not pay any royalties or assume any other financial obligations.
CHAPTER III: OPERATION OF COMMERCIAL ACTIVITIES
Article 16 Business Hours
1. The business hours of commercial activities shall be determined by the Organizer in light of the type and location of commercial activities of official participants and the daily opening hours of Expo 2010.
2. The opening hours of a boutique of an official participant shall be the same as those of its pavilion. The opening hours of a restaurant of an official participant shall be decided between the official participant concerned and the Organizer through consultation.
3. Under urgent circumstances such as force majeure, the Organizer may ask official participants to change the business hours of their commercial activities to ensure the successful running of Expo 2010.
Article 17 Price of Goods for Sale
Official participants shall indicate clearly to visitors the prices of goods for sale in their sections of commercial activities.
Article 18 Currency to be Used
Commercial activities in the Expo Site shall be settled in Renminbi (RMB).
Article 19 Notification
Official participants shall notify the Organizer of the names of persons in charge of commercial activities, the names and contact information of the relevant salespeople, and provide other information required by the Organizer. Official participants shall notify the Organizer of any change in the above information in a timely manner.
Article 20 Management of Salespeople
1. The salespeople shall participate in training conducted by the Organizer and wear identity badges when on duty.
2. In case of breach of Laws and Regulations or disruption of order of the Exposition by the salespeople, the Organizer may direct the official participants concerned to have the said salespeople out of the Expo Site or stop them from engaging in commercial activities. The official participants shall follow the directives of the Organizer.
Article 21 Transport of Goods
Official participants shall comply with the requirements set forth by the Organizer when transporting goods, materials, equipment and other items related to commercial activities.
Article 22 Prohibition of Sale of Goods in Breach of Intellectual Property Rights
1. Official participants shall not infringe upon intellectual property rights when conducting commercial activities.
2. The Organizer shall assume no responsibility in case of breach of intellectual property rights by official participants.
Article 23 Use of Expo Symbols
Without the approval of the Organizer, official participants shall not use in their commercial activities the emblem, mascots or other symbols of Expo 2010 for which the Organizer holds intellectual property rights.
Article 24 Construction of Area for Commercial Activities
Official participants shall abide by Special Regulations No. 4 and No. 5 in designing and construction of the areas for their commercial activities and the installation of equipment thereupon. They shall bear the related expenses incurred.
Article 25 Sanitation
Official participants shall comply with Special Regulation No. 10 when conducting commercial activities.
Article 26 Environmental Protection
Official participants shall take all necessary measures to protect the environment of the Expo Site against any damage or pollution when conducting commercial activities.
Article 27 Liability for Infringement
Official participants shall be held liable for any damage caused to consumers by their commercial activities as provided for in the Laws and Regulations.