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China's tourism laws and regulations
Interim Measures on Compensation for Quality Guarantee of Travel Agencies

  Chapter I General Provisions
Article 1 These Interim Measures are formulated in accordance with the Regulations on the Administration of Travel Agencies and other relevant provisions in order to regulate the compensation work for quality guarantee deposits of travel agencies, safeguard the legitimate rights and interests of tourists and travel agencies, and improve the service quality of travel agencies.

Article 2 The travel bureaus shall establish tourism quality management offices (hereinafter referred to as "quality supervision offices") at different levels to be responsible for the hearing of compensation cases involving the application of quality deposits (hereinafter referred to as "deposits").

Article 3 The quality supervision offices at all levels shall follow the following principles when hearing the case of margin compensation:
1、 Handle cases impartially based on facts and laws and regulations to protect the legitimate rights and interests of both parties.
2、 The quality supervision offices at all levels shall conduct mediation first when handling cases. If mediation is invalid, the case shall be tried according to law.
3、 Quality supervision offices at all levels shall not be subject to illegal interference by any organization or individual in the process of handling cases.

Article 4 The following circumstances shall apply to the hearing of the case of margin compensation:
1、 The travel agency fails to meet the service quality standards agreed in the contract due to its own failure;
2、 The services of travel agencies fail to meet the national or industrial standards;
3、 The bankruptcy of a travel agency causes the loss of travel expenses paid in advance by tourists.

Article 5 The following circumstances shall not apply to the hearing of the case of margin compensation:
1、 The travel agency is unable to perform the contract due to force majeure;
2、 Tourists have personal and property accidents during their travel;
3、 Other economic disputes other than those specified in Article 4 of these Measures;

4、 Exceeding the prescribed time limit and time limit;

5、 The judicial organ has accepted it.

Chapter II Jurisdiction

Article 6 The tourism quality supervision offices at all levels shall first accept the case of compensation for the security deposit of the travel agency, and then transfer it to the quality supervision office with jurisdiction according to the object of complaint.

Article 7 The Quality Supervision Office of the National Tourism Administration shall have jurisdiction over the following cases of travel agencies' deposit compensation:
1、 International travel agencies established by central departments;
2、 International travel agencies engaged in outbound tourism business;
3、 Travel agency margin compensation cases that have a significant impact in the country.

Article 8 The quality supervision offices of local tourism bureaus at all levels shall have jurisdiction over the compensation cases of the travel agencies whose deposits are collected and managed by their own bureaus. The quality supervision office of the provincial tourism administration shall have jurisdiction over the cases of margin compensation that have a significant impact in the provincial (district, city) districts.

Article 9 If the quality supervision office finds that the case it has accepted is not under its jurisdiction, it shall transfer it to the quality supervision office with jurisdiction, and the transferred quality supervision office shall accept it. If the transferred quality supervision office believes that the transferred case does not belong to the essential jurisdiction according to the provisions, it shall report to the superior quality supervision office for designation of jurisdiction, and shall not transfer the case on its own.

Article 10 The superior quality supervision institution has the right to hear the case of margin compensation under the jurisdiction of the subordinate quality supervision institution, and may also refer the case of margin compensation under the jurisdiction of this institution to the subordinate quality supervision institution for trial. If a lower level quality supervision office deems it necessary for the case of margin compensation under its jurisdiction to be tried by a higher level quality supervision office, it may report it to the higher level quality supervision office for trial.

Chapter III Trial

Article 11 The margin compensation shall meet the following conditions:
1、 It falls within the scope of application of the margin compensation listed in the Measures;
2、 The requester is the two tourists whose legitimate rights and interests are directly infringed and their legal agents;
3、 There is a clear travel agency being complained of, specific requirements and factual basis.

Article 12 The claimant shall submit a written claim for compensation to the quality supervision office. The request for compensation shall specify the following items:
1、 Name of the travel agency and tour guide complained of;
2、 The name, gender, nationality, occupation, age of the requester and the name, address and telephone number of the team;
3、 The facts, reasons and evidence of the claim and basis.

Article 13 The Quality Supervision Institute shall timely make a decision to accept a claim for compensation if it is found after examination that it meets the conditions for acceptance in the relevant measures; If the conditions for acceptance of the Measures are not met, the claimant shall be notified of the reasons for rejection within 7 working days from the date of receiving the claim for compensation.

Article 14 After making a decision on acceptance, the Quality Supervision Institute shall promptly deliver the Notice of Acceptance of Tourism Complaints to the travel agency against which the complaint is made. The complained travel agency shall make a written reply within 30 days after receiving the notice. The written reply shall specify the investigation and verification process, factual evidence, responsibilities and handling opinions. The quality supervision office shall review the written reply of the travel agency against which the complaint is made.

Article 15 After receiving the Notice of Acceptance of Tourism Complaints from the Quality Supervision Institute, the travel agency against which the complaint is made may settle the dispute through consultation with the requester, but it must submit the relevant settlement information to the Quality Supervision Institute within the specified time.

Article 16 If the quality supervision office is able to mediate the compensation claim case, it shall, on the basis of ascertaining the facts and distinguishing the responsibilities, mediate within 30 days to promote mutual understanding and reach an agreement between the claimant and the complained travel agency.

Article 17 The quality supervision office may handle the cases that cannot be settled through mediation as follows:
1、 If the fault belongs to the petitioner himself, the right side shall decide to withdraw the case, notify the petitioner and explain the reason;
2、 If the fault belongs to the joint fault of the claimant and the sued travel agency, it may be decided that both parties shall bear corresponding responsibilities respectively. The way for both parties to assume their respective responsibilities can be determined by both parties through consultation, or can be determined by the Quality Supervision Institute;
3、 If the fault belongs to the complained travel agency, it may be decided that the complained travel agency shall bear the responsibility. The complaining travel agency may be ordered to compensate the claimant for the losses;
4、 If the fault belongs to other tourism service units, they may decide to transfer it to the relevant departments for handling.

Article 18 The quality supervision office shall notify the requester and the complained travel agency of the handling decision made by it with the Letter of Travel Agency Quality Guarantee Compensation Decision. The Letter of Decision on Compensation for Quality Guarantee of Travel Agency shall be approved and issued by the person in charge of the tourism bureau.

Article 19 If the parties are not satisfied with the decision on compensation, they may, within 15 days from the date of receiving the written decision, file a lawsuit with the quality supervision office at the next higher level.

Chapter IV Supplementary Provisions

Article 20 The time limit for applying to the Quality Supervision Institute for compensation with deposit is 90 days. The limitation period shall be calculated at the time when the claimant is injured. Requests exceeding the time limit may be accepted.

Article 21 The case of bond compensation received by the quality supervision department shall be concluded within 90 days from the date of acceptance. If there are special reasons, the hearing may be extended for 30 days with the approval of the higher quality supervision office.

Article 22 These Measures shall be interpreted by the National Tourism Administration.

Article 23 These Measures shall come into force as of the date of promulgation, and the Interim Measures for Quality Assurance Compensation of Travel Agencies issued by Order No. 4 of the National Tourism Administration on July 1, 1995 shall be repealed at the same time.