Regulations on Administration of Audio-visual Products

(Adopted at the 50th Executive Meeting of the State Council
on December 12, 2001, promulgated by Decree No.341 of the State
Council of the People’s Republic of China on December 25, 2001, and
effective as of February 1, 2002)

Chapter I General Provisions

Article 1 These Regulations are formulated to
strengthen the administration of audio-visual products, promote the
healthy development and flourish of the audio-visual undertakings,
enrich the cultural life of the people and promote the construction
of socialist material civilization and spiritual civilization.

Article 2 These Regulations shall apply to the
administration of the publication, production, reproduction,
importation, wholesale, retail and rental of such recorded
audio-visual products as audio tapes, video tapes, gramophone
records, compact discs and laser discs.

Those audio-visual products for the purpose of radio and TV
broadcasting shall be applied to the laws and administrative
regulations on radio and TV broadcasting.

Article 3 Publication, production,
reproduction, importation, wholesale, retail and rental of the
audio-visual products shall conform to the Constitution and
relevant laws and regulations, adhere to the principle of serving
the people and socialism and disseminate the ideological, ethical,
scientific, technological and cultural knowledge that is beneficial
to economic development and social progress.

No audio-visual product shall contain the following
contents:

(1) those opposing the basic principles established in the
Constitution;

(2) those endangering the unification, sovereignty and
territorial integrity of the State;

(3) those divulging secrets of the State, harming national
security, or impairing the honor and interests of the State;

(4) those inciting the enmity, discrimination of nationalities,
jeopardizing the unity among the various ethnic groups, or
violating the Customs and habits of minority nationalities;

(5) those spreading cults or superstitions;

(6) those disturbing social order and destroying social
stability;

(7) those inciting pornography, gambling, violence or
instigating a crime;

(8) those insulting or libeling others, violating the lawful
rights and interests of others; or

(9) those endangering social moralities or fine national
cultural traditions;

(10) other contents which are prohibited by laws and
administrative regulations or by the State.

Article 4 The publication administration
department of the State Council shall be responsible for the
publication, production and reproduction of audio-visual products
nationwide; the culture administration department of the State
Council shall be responsible for the supervision and administration
of the importation, wholesale, retail and rental of audio-visual
products nationwide; the other relevant administrative departments
of the State Council shall, in accordance with division of duties
prescribed by the State Council, be responsible for the supervision
and administration of commercial activities of audio-visual
products.

A administrative departments in charge of publication of the
local people’s governments at or above the county level shall be
responsible for the supervision and administration of the
publication, production and reproduction of audio-visual products
within their administrative areas; the culture administration
department of the local governments at or above county level shall
be responsible for the supervision and administration of the
importation, wholesale, retail and rental of audio-visual products
within their administrative areas; the other relevant
administrative departments of the local governments at or above
county level shall, within their own duties, be responsible for the
supervision and administration of commercial activities of
audio-visual products.

Article 5 The State implements a license system
for the publication, production, reproduction, importation,
wholesale, retail, and rental of audio-visual products. Any entity
or individual, without a license, shall not be engaged in the
publication, production, reproduction, importation, wholesale,
retail or rental of audio-visual products.

Any license or approval documents issued according to these
Regulations shall not be assigned by means of rental, lending, sale
or any other means.

Article 6 The publication administration
departments and culture administration department of the State
Council are responsible for formulating a development program of
the audio-visual publishing undertakings and determining, in
accordance with the division of duties prescribed by the State
Council, the total number, distribution and structure nationwide of
the audio-visual publishing units, audio-visual reproduction units
and audio-visual end products importation units.

Article 7 The departments and their staff
members in charge of the supervision and administration of
commercial activities of audio-visual products shall not engage or
engage, in a disguised form, in the commercial activities in
audio-visual products nor participate or participate, in a
disguised form, in such activities of the units dealing in
audio-visual products.

Chapter II Publication

Article 8 For establishment, an audio-visual
publishing unit shall meet the following conditions:

(1) possess a name and the articles of association of the
audio-visual publishing unit;

(2) possess a sponsoring unit which is recognized by the
publication administration department of the State Council and its
competent agency at the higher level;

(3) possess a well-defined scope of business;

(4) possess an organizational structure which meets the needs of
its scope of business and audio-visual publication professionals
conforming to the qualification conditions stipulated by the
State;

(5) possess necessary funds, equipment and production premises;
and

(6) other requirements prescribed by the laws and administrative
regulations.

In addition to the conditions listed in the preceding paragraph,
the approval of the establishment of an audio-visual publishing
unit shall conform to the development program concerning the total
number, distribution and structure of the audio-visual publishing
units.

Article 9 An application for establishing an
audio-visual publishing unit shall be, after being examined and
consented to by the publication administrative department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government, submitted to
the publication administrative department of the State Council for
examination and approval. The latter shall, within 60 days from the
date of receipt of the application, make a decision on approving or
not approving the application, and make a notice to the applicant.
Where an application is approved, the License for Publishing
Audio-visual Products shall be issued, with which the applicant may
go through the formalities of registration at the administrative
department for industry and commerce, and obtain the business
license according to law; while the application is not approved,
the reason shall be given.

The application shall include the following items:

(1) the name and address of the audio-visual publishing
unit;

(2) the names and addresses of the sponsoring unit of the
audio-visual publishing unit and its competent agency at the higher
level;

(3) the name, address and qualification certifying document of
the legal representative or the major responsible person of the
audio-visual publishing unit; and

(4) the source and amount of fund of the audio-visual publishing
unit.

Article 10 Where an audio-visual publishing
unit intends to change its name, its sponsoring unit or the
competent agency at the higher level, or its business scope, , or
to merge other audio-visual publishing unit, or to establish a new
audio-visual publishing unit due to amalgamation or separation, it
shall go through the formalities of examination and approval in
accordance with the provisions of Articles 9, and go through the
relevant formalities of registration at the administrative
department for industry and commerce where the original
registration was gone through.

Where an audio-visual publishing unit intends to change address,
its legal representative or the major responsible person, or to
terminate its operations, it shall go through the formalities of
registration for change or revocation at the administrative
department for industry and commerce where the original
registration was gone through, and file for the record with the
publication administration department of the State Council at the
same time.

Article 11 The annual publication plan, and
important subjects involving national security and social stability
of an audio-visual publishing unit shall be examined by the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government and be filed for the record with the publication
administration department of the State Council. Any audio-visual
product with important subjects shall not be published without
filing for the record before its publication.

Article 12 An audio-visual publishing unit
shall indicate at prominent positions on the audio-visual products
and their packages such contents as the name and address of the
publishing unit, the publisher’s code, the date of publication and
the owner of copyright of the audio-visual products. In the case of
publishing an imported audio-visual product, the importation
approval document number shall also be indicated.

The audio-visual publishing unit shall, within 30 days from the
date of publication of audio-visual products, present sample copies
for free to the National Library of China, National Editions
Library and the publication administration department of the State
Council.

Article 13 An audio-visual publishing unit may
not rent out, lend or sell its name or to assign its name in any
other ways to any other unit or individual, nor to sell publisher’s
code to any other unit or individual or to assign in any other ways
its publisher’s code to any other unit or individual.

Article 14 No unit or individual may engage in
the publication of audio-visual products by the means of
.purchasing, renting, borrowing or using without authorization the
name of an audio-visual publishing unit, or by the means of
purchasing or forging a publisher’s code.

No books publishing unit, newspapers publishing unit,
periodicals publishing unit or electronic publishing unit may
publish audio-visual products which are not in support of the
publications under its own imprint. However, in accordance with the
provisions by the publication administration department of the
State Council, they may engage in publication of audio-visual
products in support of the publications under its own imprint, and
enjoy the rights and bear the obligations with reference to those
of an audio-visual publishing unit.

Article 15 An audio-visual publishing unit may
cooperate with an organization or individual from Hong Kong Special
Administrative Region, Macao Special Administrative Region, and the
region of Taiwan or from a foreign country to produce audio-visual
products. The specific measures shall be formulated by the
publication administration department of the State Council.

Article 16 An audio-visual publishing unit
shall adopt a system of editor’s responsibility to ensure that the
contents of its audio-visual products conform to the provisions of
these Regulations.

Article 17 Any application for establishing, by
a unit other than an audio-visual publishing unit, a unit to engage
separately in the production of audio-visual products(hereinafter
referred as to audio-visual production unit) shall be examined and
approved by the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government. The publication
administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government shall, within 60 days from the date of receipt
of the application, make a decision on approving or not approving
the application, and make a notice to the applicant. Where an
application is approved, the License for Producing Audio-visual
Products shall be issued, with which the applicant may go through
the formalities of registration at the administrative department
for industry and commerce, and obtain the business license
according to law; while the application is not approved, the reason
shall be given. The establishment of a unit to engage in production
of radio and TV programs shall be dealt with in accordance with the
provisions of the relevant laws and administrative regulations.

The application shall include the following items:

(1) the name and address of the audio-visual production
unit;

(2) the name, address and qualification certifying document of
the legal representative or the major responsible person of the
audio-visual publishing unit; and

(3) the source and amount of fund of the audio-visual production
unit.

Where the establishment of an audio-visual production unit is to
be examined for approval, in addition to the requirements listed in
the preceding paragraph, the total number, distribution and
structure of the audio-visual production unit shall also be
considered.

Article 18 Where an audio-visual production
unit intends to change its name or its business scope, or to merge
other audio-visual production unit, or to establish a new
audio-visual production unit due to amalgamation or separation, it
shall go through the formalities of examination and approval in
accordance with the provisions of Articles 17, and go through the
relevant formalities of registration at the administrative
department for industry and commerce where the original
registration was gone through.

Where an audio-visual production unit intends to change its
address, its legal representative or the major responsible person,
or to terminate its operations, it shall go through the formalities
of registration for change or revocation at the administrative
department for industry and commerce where the original
registration was gone through, and file the record with the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Governmental at the same time.

Article 19 Any audio-visual production unit
shall not commission a unit that has not obtained a License for
Production of Audio-visual Products to produce audio-visual
products.

When an audio-visual production unit accepts a commission to
produce audio-visual products, it shall, in accordance with the
relevant provisions by the State, enter into an agreement on
commissioned production with the commissioning publishing unit, and
verify the License for Production of Audio-visual Products of the
commissioning publishing unit, or the certificate of publications
under its own imprint and the commissioning deed for production of
audio-visual products sealed by the commissioning publishing
unit.

An audio-visual production unit shall not publish, reproduce,
wholesale, retail or rent out audio-visual products.

Chapter III Reproduction

Article 20 For establishment, an audio-visual
reproduction unit shall meet the following conditions:

(1) possess the name and the articles of association of the
audio-visual reproduction unit;

(2) possess a well-defined scope of business;

(3) possess an organizational structure and personnel which
meets to the needs of its scope of business;

(4) possess necessary funds, equipment and reproduction
premises; and

(5) other requirements prescribed by the laws and administrative
regulations.

Where the establishment of an audio-visual reproduction unit is
to be examined for approval, in addition to the requirements listed
in the preceding paragraph, the total number, distribution and
structure of the audio-visual reproduction units shall also be
considered.

Article 21 An application for establishing an
audio-visual reproduction unit shall be, after being examined or
consented to by the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government shall, submitted
to the publication administration department of the State Council
for examination and approval. The publication administration
department of the State Council shall, within 60 days from the date
of receipt of the application, make a decision on approving or not
approving the application, and make a notice to the applicant.
Where an application is approved, the License for Reproduction in
Audio-visual Products shall be issued, with which the applicant may
go through the formalities of registration at the administrative
department for industry and commerce, and obtain the business
license according to law; while the application is not approved,
the reason shall be given.

The application shall include the following items:

(1) the name and address of the audio-visual reproduction
unit;

(2) the name and address of the legal representative or the
major responsible person of the audio-visual reproduction unit;
and

(3) the source and amount of fund of the audio-visual
reproduction unit.

Article 22 Where an audio-visual reproduction
unit intends to change its business scope, or to merge other
audio-visual reproduction unit, or to establish a new audio-visual
reproduction unit due to amalgamation or separation, it shall go
through the formalities of examination and approval in accordance
with the provisions of Article 21, and go through the relevant
formalities of registration at the administrative department for
industry and commerce where the original registration was gone
through.

Where an audio-visual reproduction unit intends to change its
name, address, its legal representative or the major responsible
person, or to terminate its operations, it shall go through the
formalities of registration of change or revocation at the
administrative department for industry and commerce where the
original registration was gone through, and file the record with
the publication administration department of the State Council at
the same time.

Article 23 Where an audio-visual reproduction
unit accepts a commission to reproduce audio-visual products, it
shall, in accordance with the relevant provisions of the State,
enter into an agreement on commissioned reproduction with the
commissioning publishing unit, and verify the License for
Publishing Audio-visual Products and the copy of the business
license of the commissioning publishing unit, the commissioning
deed for reproduction of audio-visual products sealed by the
commissioning publishing unit and the letter of authorization of
the copyright owner. Where the commissioned audio-visual products
are products not for sale, it shall verify the commissioning deed
for reproduction of products issued by the publication
administration department of the people’s government of provinces,
autonomous region, and the municipality under the central
government and sealed by commissioning unit.

The audio-visual reproduction unit shall, within 2 years from
the date of completion of the reproduction of audio-visual
products, preserve the agreement on commissioned reproduction,
sample copies of its reproduced audio-visual products and copies of
the relevant certifying documents for purpose of examination and
verification.

Article 24 No audio-visual reproduction unit
may accept commission to reproduce commercial audio-visual products
from a unit or individual other than an audio-visual publishing
unit. The audio-visual reproduction unit may not reproduce
audio-visual products of its own accord, nor wholesale, retail or
rent out audio-visual products.

Article 25 An audio-visual reproduction unit
shall, when reproducing laser discs, use the plastic mould etched
with the source identification code of laser digital storage chip
approved and issued by the publication administration department of
the State Council.

Article 26 Where an audio-visual reproduction
unit accepts a commission to reproduce overseas audio-visual
products, it shall submit the sample copies of such audio-visual
product to the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government for examination
and approval, and shall submit the letter of authorization of the
copyright owner for registration at the administrative department
in charge of copyright affairs. The audio-visual products
reproduced shall all be transported overseas.

Chapter IV Importation

Article 27 The importation business of the
audio-visual end products shall be operated by the units engaged in
importation of audio-visual end products designated by the culture
administration department of the State Council. No unit or
individual may engage in importation of audio-visual end products
without designation.

Article 28 Any importation of audio-visual
products to be used for publication, and of audio-visual end
products to be used for wholesale, retail or rental, shall be
subject to the content examination by the culture administration
department of the State Council.

The culture administration department of the State Council
shall, within 30 days from the date of receipt of the application
for content examination of audio-visual products, make a decision
on approving or not approving the application, and make a notice to
the applicant. Where an application is approved, the approved
documents shall be issued, while the application is not approved,
the reason shall be given.

The unit importing audio-visual products to be used for
publication or the unit engaged in importation of audio-visual end
products shall, with the documents approved by the culture
administration department of the State Council, go through the
formalities of importation at the Customs.

Article 29 When audio-visual products are
imported for purpose of publishing, the relevant copyright matters
shall be registered with the copyright affairs administration
department of the State Council.

Article 30 Any importation of audio-visual
products for reference in research, teaching and studying shall be
handled and commissioned by the unit engaged in importation of
audio-visual end products in accordance with Article 28 of these
Regulations.

Any importation of audio-visual products for exhibition and
demonstration shall, after approved by the culture administration
department of the State Council, go through the formalities of
temporary importation at the Customs.

Any audio-visual products imported according to these
Regulations shall not be used for commercial reproduction,
wholesale, retail, rental or projection.

Chapter V Wholesale, Retail and Rental

Article 31 For establishment, a wholesale,
retail or rental unit of audio-visual products shall meet the
following conditions:

(1) possess the name and the articles of association of the
wholesale, retail or rental unit of audio-visual products ;

(2) possess a well-defined scope of business;

(3) possess an organizational structure and personnel which
meets to the needs of its scope of business;

(4) possess necessary funds and permanent premises; and

(5) other requirements prescribed by the laws and administrative
regulations.

Article 32 An application for establishing a
nationwide audio-visual products chain business shall be, after it
has been examined and consented by the culture administration
department of the people’s government of the province, autonomous
region or municipality directly under the Central Government where
the head office of the chain business is located, submitted to the
culture administration department of the State Council for
examination and approval. Any application for establishing a
wholesale unit of audio-visual products shall be submitted to the
culture administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government for examination and approval. Any application
for establishing a retail and rental unit of audio-visual products
shall be submitted to the culture administration department of the
people’s government at county level for examination and approval.
The culture administration departments shall, within 30 days from
the date of receipt of the application, make a decision on
approving or not approving the application, and make a notice to
the applicant. Where an application is approved, the License for
Business in Audio-visual Products shall be issued, with which the
applicant may go through the formalities of registration at the
administrative department for industry and commerce, and obtain the
business license according to law; while the application is not
approved, the reason shall be given.

The category of audio-visual business shall be indicated in the
License for Business in audio-visual Products.

Article 33 Where a wholesale, retail or rental
unit of audio-visual products intends to change its name, business
scope, or to merge other wholesale, retail or rental unit of
audio-visual products, or to establish a new wholesale, retail or
rental unit of audio-visual products due to amalgamation or
separation, it shall go through the formalities of examination and
approval in accordance with the provisions of Articles 32, and go
through the relevant formalities of registration at the
administrative department for industry and commerce where the
original registration was gone through.

Where wholesale, retail or rental unit of audio-visual products
intends to change address, its legal representative or the major
responsible person, or to terminate its operations, it shall go
through the formalities of registration for change or revocation at
the administrative department for industry and commerce where the
original registration was gone through, and at the same time file
for the record with the culture administration department where the
original approval was made.

Article 34 An audio-visual publishing unit may,
in accordance with the relevant provisions of the State, engage in
the wholesale or retail of audio-visual products that are published
by itself. If it intends to engage in the wholesale or retail of
audio-visual products that are not published by itself, it shall go
through the formalities of examination and approval in accordance
with the provisions of Article 32, and go through the relevant
formalities of registration at the administrative department for
industry and commerce where the original registration was gone
through.

Article 35 The State allows the establishment
of Chinese-foreign contractual joint venture to engage in the
distribution business of audio-visual products. The specific
measure and procedures shall be formulated, according to the
relevant provisions, by the culture administration department of
the State Council jointly with the competent foreign trade and
economic cooperation department of the State Council.

Article 36 Any wholesale unit of audio-visual
products, or any unit or individual engaged in the retail or rental
of audio-visual products may not be engaged in the business of
audio-visual products that are not published by an audio-visual
publishing unit or reproduced by an audio-visual reproduction unit,
nor be engaged in the business of audio-visual products that are
imported without approval by the culture administration department
of the State Council , nor be engaged in the business of
audio-visual products that infringe upon the copyrights of
others.

Chapter VI Penalty Provisions

Article 37 Where the publication administration
department, the culture administration department, the
administrative department for industry and commerce and other
administrative departments, as well as their staff members, take
advantages of their duties accepting from others properties or
other benefits to approve the establishment of a unit for
publication, production, reproduction, importation, wholesale,
retail or rental of audio-visual products which is not satisfied
with the legal conditions, or fail to perform their supervisory
duties or fail to investigate and deal with illegal activities
found, causing serious results, the responsible person in charge
and other directly responsible person shall be investigated for
criminal liability, in accordance with the provisions on crimes of
acceptance of bribes, abuse of power, neglect of duties or other
crimes in the Criminal Law; if it is not enough for criminal
punishment, administrative sanction of demotion or removal from
post shall be given.

Article 38 Where the staff members of the
departments in charge of the supervision and administration of
commercial activities of audio-visual products engage or engage, in
a disguised form, in the commercial activities of audio-visual
products, or participate or participate, in a disguised form, in
commercial activities of the units dealing in audio-visual
products, they shall be given the administrative sanction of
removal or discharge from post.

If the departments in charge of the supervision and
administration of commercial activities of audio-visual products
engage in the activities listed in the preceding paragraph, the
responsible person in charge and other directly responsible person
shall be punished according to the preceding paragraph.

Article 39 Without approval, any authorized
establishment of a unit of publication, production, reproduction,
importation, wholesale, retail, rental or projection of
audio-visual products, or any act to engage in the publication,
production, reproduction, importation, wholesale, retail, rental or
projection of audio-visual products, shall be banned by the
publication administration department and the administrative
department for industry and commerce according to their legal
duties, and criminal liability shall be investigated in accordance
with the relevant provision on illegal business operation in the
Criminal Law; if it is not enough for criminal punishment, the
audio-visual products for illegal business, illegal income, the
special devices, equipment mainly and specially used for illegal
business shall be confiscated; where the illegal business amount is
more than 10000 yuan, a fine of more than 5 times and less than 10
times of illegal business amount shall be imposed at the same time;
where the illegal business amount is less than 10000 yuan, a fine
of less than 50000 yuan shall be imposed concurrently.

Article 40 Where anyone who publishes the
audio-visual products containing the contents prohibited in
paragraph 2 of Article 3 of these Regulations, or produces,
reproduces, wholesales, retails, rents out or projects the
audio-visual products containing the contents which it has known or
should have known, prohibited in paragraph 2 of Article 3 of these
Regulations, criminal liability shall be investigated according to
the relevant provisions of the Criminal Law; if it is not enough
for criminal punishment, the publication administration, the
culture administration department or public security department
shall order to suspend business for rectification in accordance
with their duties and confiscate the audio-visual products for
illegal business and illegal income; if the illegal business amount
is more than 10000 yuan, a fine of more than 5 times and less than
10 times of illegal business amount shall be imposed concurrently;
if the illegal business amount is less than 10000 yuan, a fine of
less than 50000 yuan shall be imposed concurrently; if the case is
serious, the license shall be revoked by the original issuing
department.

Article 41 Where audio-visual product are
smuggled, criminal liability shall be investigated in accordance
with the crime on smuggling in the Criminal Law; if is not enough
for criminal punishment, administrative punishments shall be
imposed by the Customs.

Article 42 Where anyone who, in violation of
these Regulations, commits one of the following acts, the
publication administration department shall order to stop illegal
act, give a warning, or confiscate the audio-visual products for
illegal business and the illegal income; if the illegal business
amount is more than 10000 yuan, a fine of more than 5 times and
less than 10 times of illegal business amount shall be imposed
concurrently; if the illegal business amount is less than 10000
yuan, a fine of more than 10000 yuan and less than 50000 yuan shall
be imposed concurrently; if the case is serious, order to suspend
business for rectification or the original issuing department shall
revoke the license:

(1) where an audio-visual publishing unit rents out, lends,
sells or assigns in other form its own name, or sells or assigns in
any other form its publisher’s code to another unit or
individual;

(2) where an audio-visual publishing unit commissions a unit
without a License for Production in Audio-visual Products to
produces audio-visual products, or commissions a unit without a
License for Reproduction in Audio-visual Products to reproduces
audio-visual products;

(3) where an audio-visual publishing unit publishes the
audio-visual products for which the importation is not approved by
the culture administration department of the State Council;

(4) where an audio-visual production or reproduction unit fails
to verify, according to the provisions in these Regulations, the
commissioning deed and the relevant certifying documents of the
audio-visual publishing unit; or

(5) where an audio-visual reproduction unit reproduces
audio-visual products of others without authorization, or accepts a
commission from a unit other than an audio-visual publishing unit
or individual to reproduce commercial audio-visual products, or
reproduce the audio-visual products of its own accord.

Article 43 Where an audio-visual publishing
unit produces, in violation of the relevant provisions of the
State, audio-visual products in cooperation with organizations or
individuals from Hong Kong Special Administrative Region, Macau
Special Administrative Region, the region of Taiwan or foreign
countries, and an audio-visual reproduction unit accepts a
commission, in violation of the relevant provisions of the State,
to reproduce overseas audio-visual products, without examination
and consent of the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government, or failing to
transport fully the reproduced audio-visual products overseas, the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government shall order to make correction and confiscate
the audio-visual products for illegal business and illegal income;
if the illegal business amount is more than 10000 yuan, a fine of
more than 5 times and less than 10 times of illegal business amount
shall be imposed concurrently; if the illegal business amount is
less than 10000 Yuan, a fine of more than 10000 Yuan and less than
50000 Yuan shall be imposed concurrently; if the case is serious,
the original issuing department shall revoke the license.

Article 44 Where anyone who commits one of the
following acts, the publication administration department and the
culture administration department shall order to make correction;
if the case is serious, order to suspend business for rectification
or the original issuing department shall revoke the license:

(1) an audio-visual publishing unit fails to file its annual
publication plan, and important subjects involving national
security and social stability for the record with the publication
administration department of the State Council;

(2) a unit of publication, production, reproduction, wholesale ,
retail, rental of audio-visual products fails, when changing its
name, address, legal representative or major responsible person, or
its scope of business, to go through the formalities of examination
and approval or filing for the record in accordance with these
Regulations;

(3) an audio-visual publishing unit fails to indicate the
contents prescribed in these Regulations at prominent positions on
its audio-visual products published and packages;

(4) an audio-visual publishing unit fails to submit sample
copies according to these Regulations;

(5) an audio-visual reproduction unit fails to preserve the
materials for potential examination in accordance with these
Regulations; or

(6) an audio-visual reproduction unit, when reproducing laser
discs, uses the plastic mould which is not etched with the source
identification code of laser digital storage chip approved and
issued by the publication administration department of the State
Council.

Article 45 Where anyone who, in violation of
these Regulations, commits one of the following acts, the culture
administration department shall order to stop illegal act, give a
warning, or confiscate the audio-visual products for illegal
business and the illegal income; if the illegal business amount is
more than 10000 yuan, a fine of more than 5 times and less than 10
times of illegal business amount shall be imposed concurrently; if
the illegal business amount is less than 10000 Yuan, a fine of more
than 10000 yuan and less than 50000 yuan shall be imposed
concurrently; if the case is serious, order to suspend business for
rectification or the original issuing department shall revoke the
license:

(1) where audio-visual products published or reproduced by a
unit other than an audio-visual publishing or reproducing units are
sold at wholesale or retail, rented out or projected;

(2) where audio-visual products for which the importation is not
approved by the culture administration department of the State
Council;

(3) where audio-visual products used for reference in research,
teaching and studying only or for purpose of exhibition or
demonstration are sold at wholesale or retail, rented out or
projected; and

(4) where an audio-visual publishing unit publishes the
audio-visual products for which the importation is not approved by
the culture administration department of the State Council.

Article 46 Any unit received the administrative
punishment of license revoking, for violating these Regulations
shall go through the formalities of changing registration or
canceling registration; if it fails to go through such formalities
when the time limit expires, the business license shall be revoked
by the administrative department for industry and commerce.

Article 47 Where a unit received an
administrative punishment of license revoking, for violating these
Regulations, its legal representative or the major responsible
person shall not act, within 10 years from the date of revocation
of the license, as legal representative or the major responsible
person of a unit engaged in the publication, production,
reproduction, importation, wholesale, retail, rental of
audio-visual products.

Where an individual engaged in the retail, rental or projection
business received an administrative punishment of license revoking,
for violating these Regulations shall not engage, within 10 years
from the date of revocation of the license, in the retail, rental
or projection business.

Article 48 Where a fine as an administrative
punishment is imposed according to these Regulations, the
decision-making of the fine shall be separated from the collection
of the fine in accordance with the provision of the relevant laws
and administrative regulations. All the fines collected shall be
submitted to the State Treasury.

Chapter VII Supplementary Provisions

Article 49 As of the date of implementation of
these Regulations, no establishment of a commercial audio-visual
products projection unit may be examined and approved; those
established according to law shall not update the existing
equipment and shall be closed within 5 years; before closure, they
shall be supervised and administered by the culture administration
department.

Article 50 Where a license is issued according
to these Regulations, no other fees may be levied except the cost
to be collected at the legal standards.

Article 51 These Regulations shall be effective
as of February 1, 2002. The Regulations on Administration of
Audio-visual Products promulgated by the State Council on August
25, 1994 shall be repealed simultaneously.

(State Council)