(No 341 Order of the State Council of the People's Republic of China.The Regulations on the Administration of Audiovisual Products, which were adopted at the 50th Executive Meeting of the State Council on December 12, 2001, are hereby promulgated, and shall come into force on February 1, 2002.)

                                  Premier: Zhu Rongji

December 25, 2001

Chapter I: General Provisions　

Article 1 The regulations are promulgated to strengthen the administration of audiovisual products, promote the healthy development and flourishing of audiovisual products, enrich the cultural life of the people, and promote the construction of socialist material and a spiritual civilization.

Article 2 The regulations shall apply to such activities as the publication, manufacturing, reproduction, importing, wholesale, retail, leasing, etc., of such audiovisual products as audio tapes, video tapes, gramophone recorders, compact discs, laser discs, etc., where content is recorded.

Audiovisual products used for radio and television broadcasts will also be subjected to the laws and administrative regulations on radio and television.

Article 3 People engaged in the publication, manufacture, reproduction, importing, wholesale, retail and leasing of audiovisual products will abide by the Constitution and relevant laws and regulations, adhere to the orientation of serving the people and serving socialism, and disseminate ideas, morals and scientific, technical and cultural knowledge beneficial to economic development and social progress.

The following content is prohibited from being recorded using audiovisual products:

(1)  Those that violate the basic principles as determined by the Constitution;

(2)  Those that endanger the unity of the nation, sovereignty or territorial integrity;

(3)  Those that divulge secrets of the State, endanger national security or damage the honor or benefits of the State;

(4)  Those that incite national hatred or discrimination, undermine the solidarity of nationalities, or infringe upon national customs and habits;

(5)  Those that propagate cults or superstition;

(6)  Those that disturb public order or destroy public stability;

(7)  Those that propagate obscenity, gambling, violence or instigate crime;

(8)  Those that insult, slander, or infringe on the lawful rights and interests of others;

(9)  Those that endanger public ethics or folk cultural traditions;

(10)Any other content prohibited by laws, regulations or provisions of the State.

Article 4 The administrative department for publication under the State Council will be responsible for supervising and administering the publication, manufacture and reproduction of audiovisual products nationwide; the administrative department for cultural affairs under the State Council will be responsible for supervising and administering the import, wholesale, retail and leasing of audiovisual products nationwide; other relevant administrative departments under the State Council will, in accordance with the division of official duties determined by the State Council, be responsible for supervising and administering the business activities of relevant audiovisual products.

The administrative department responsible for the administration of publication (hereinafter referred to as the administrative department for publication) under the local people's government at the county level or above, will be responsible for supervising and administering the publication, manufacture and reproduction of audiovisual products within its own jurisdiction; the administrative department for cultural affairs under the local people's government at the county level or above will be responsible for supervising and administering the import, wholesale, retail and leasing of audiovisual products within its own jurisdiction; other relevant administrative departments under the local people's government at the county level or above will, within the scope of their respective duties, be responsible for supervising and administering the business activities of relevant audiovisual products.

Article 5 The State will apply a license system in respect to the publication, manufacture, reproduction, import, wholesale, retail and leasing of audiovisual products. No unit or individual will, without permission, be engaged in the publication, manufacture, reproduction, import, wholesale, retail, leasing, etc., of audiovisual products.

The licenses or approval documents issued in accordance with the regulations will not be leased, lent, sold, or transferred in any other form.

Article 6 The administrative department for publication and the administrative department for cultural affairs under the State Council will be responsible for enacting the development programming for audiovisual products and will, in accordance with the division of duties determined by the State Council, respectively determine the total number, distribution and structure of audiovisual product publishing units and reproducing units, as well as the import units of finished audiovisual products nationwide.

Article 7 Neither will the departments for supervision and administration of business activities in respect to audiovisual products, nor their functionaries, directly, or in a disguised form, engage in business activities regarding audiovisual products, or participate in business activities of audiovisual product operating units.

Chapter II: Publication

Article 8 To establish an audiovisual product publishing unit, the applicant will meet the following conditions:

(1)  Have the name and articles of association of the audiovisual product publishing unit;

(2)  Have the controlling unit and competent organ cognized by the administrative department for publication under the State Council;

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

(4)  Adapt the organization according to the needs of its scope of business and have a professional staff in the publication of audiovisual products who meet the qualification requirements as prescribed by the State;

(5)  Adapt funds, equipment and work premises to the needs of its scope of business;

(6)  Other conditions provided by laws and administrative regulations.

The approval on establishing an audiovisual product publishing unit will not only be in accordance with the conditions enumerated in the preceding paragraph, but also conform to the programming on the total number, distribution and structure of the audiovisual product publishing units.

Article 9 The application for establishing an audiovisual product publishing unit will be examined and consented by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government where the applicant is located before it is submitted to the administrative department for publication under the State Council for examination and approval. The administrative department for publication under the State Council will, within 60 days of the receipt of the application, decide to approve or reject the application and notify the applicant. If the application is approved, a License for Publishing Audiovisual Products will be issued to the applicant, who will register and obtain the business license in accordance with the law in the administrative department for industry and commerce with the License for Publishing Audiovisual Products. If the application is not approved, the reason thereof shall be stated.

The application will clearly state the following:

(1)  The name and address of the audiovisual product publishing unit;

(2)  The name and address of the controlling unit and the competent organ of the audiovisual product publishing unit;

(3)  The name(s), address(es) and qualification certifying documents of the legal representative or principal responsible person(s) for audiovisual product publishing unit;

(4)  The sources and amount of funds of the audiovisual product publishing unit.

Article 10 Should an audiovisual product publishing unit intend to change its name, controlling unit, competent organ or scope of business, or to merge with another audiovisual product publishing unit, or establish a new audiovisual product publishing unit due to a merger or division, it will go through the formalities of examination and approval in accordance with Article 9 of the regulations. The unit will also go through the corresponding registration formalities in the administrative department for industry and commerce that handled the original registration.

Should an audiovisual product publishing unit intend to change its address, legal representative or principal person (s) responsible, or to terminate its publishing business activities, it will go through the modification registration or cancellation registration in the administrative department for industry and commerce that handled the original registration. The unit will also report to the administrative department for publication under the State Council.

Article 11 The annual publication plans of an audiovisual product publishing unit and key selected titles in respect to national security, social stability, etc., shall be examined and verified by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government at its locality before being submitted to the administrative department for publication under the State Council. The audiovisual products on the key selected titles will not be published until they are submitted before publication.

Article 12 An audiovisual product publishing unit will indicate such information as the name and address of the publishing unit, the publisher's code, time of publication, name of the copyright owner, etc., in a prominent position on the audiovisual product it has published and its packaging. Regarding the publication of imported audiovisual products, the unit will also indicate the approval import number.

The audiovisual product publishing unit will, within 30 days of product publication, submit a gratis sample to the National Library of China, Archives Library of Chinese Publications and administrative department for publication under the State Council.

Article 13 An audiovisual product publishing unit may not lease, lend, sell or transfer its name to any unit or individual in any other form, nor will it sell or transfer its publisher's code to any unit or individual in any other form.

Article 14 No unit or individual may engage in the audiovisual product publishing activities by such means as purchasing, hiring, borrowing or using the name of an audiovisual product publishing unit without authorization, or by purchasing or forging the publisher's code of the audiovisual product publishing unit.

No book publishing house, newspaper office, periodical office or electronic publication publishing house will publish audiovisual products that do not support the publications under its own imprint. However, each of them may, in accordance with the provisions of the administrative department for publication under the State Council, publish the audiovisual products that support the publications published under its own imprint, and may enjoy rights and will undertake obligations with reference to the audiovisual product publishing units.

Article 15 Audiovisual product publishing units may cooperate with organizations or individuals from the Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan region and foreign countries to manufacture audiovisual products. Specific measures will be decided by the administrative department for publication under the State Council.

Article 16 An audiovisual product publishing unit will apply a system of editor's responsibility that guarantees the contents of the audiovisual products conform to the regulations.

Article 17 An application for establishing a unit independently engaged in the audiovisual product manufacturing business (hereinafter referred to as an audiovisual product manufacturing unit) by a unit other than the audiovisual product publishing units shall be examined and approved by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government where the applicant is located. The administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government will, within 60 days of the receipt of the application, decide to approve or reject the application and notify the applicant. If the application is approved, a License for Manufacturing Audiovisual Products will be issued to the applicant, who will register and obtain the business license in accordance with the law in the administrative department for industry and commerce with the License for Manufacturing Audiovisual Products. If the application is not approved, the reason thereof will be stated. Establishing radio- or television-program producing or operating units will be in accordance with the relevant laws and administrative regulations.

The application shall clearly state the following:

(1)  The name and address of the audiovisual product manufacturing unit;

(2)  The name(s), address(es) and qualification certifying documents of the legal representative or principal responsible person(s) of the audiovisual product manufacturing unit;

(3)  The sources and amount of funds of the audiovisual product manufacturing unit.

Approval of the establishment of an audiovisual product manufacturing unit will not only be in accordance with the conditions enumerated in the preceding paragraph, but will also take the total number, distribution and structure of the audiovisual product manufacturing units into consideration.

Article 18 Should an audiovisual product manufacturing unit intend to change its name or scope of business, or to merge with another audiovisual product manufacturing unit, or to establish a new audiovisual product manufacturing unit due to a merger or division, it will go through the formalities of examination and approval in accordance with Article 17 of the regulations, and go through the corresponding registration formalities in the administrative department for industry and commerce that handled the original registration.

Should an audiovisual product manufacturing unit intend to change its address, legal representative or principal person(s) responsible, or to terminate its manufacturing business activities, it will go through the modification registration or cancellation registration at the administrative department for industry and commerce that handled the original registration, and report to the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government.

Article 19 An audiovisual product publishing unit will not entrust a unit that has not obtained the License for Manufacturing Audiovisual Products to manufacture audiovisual products.

Where an audiovisual product manufacturing unit is entrusted to manufacture audiovisual products, it will, in accordance with relevant State provisions, conclude an entrustment manufacturing contract with the entrusting publishing unit and verify the entrusting publishing unit's License for Publishing Audiovisual Products or the attestation on the publications published under its own imprint and the power of attorney for manufacturing audiovisual products, which is covered with the seal of the entrusting publishing unit.

No audiovisual product manufacturing unit will publish, reproduce, wholesale, retail or lease audiovisual products.

Chapter III: Reproduction

Article 20 To establish an audiovisual product reproducing unit, the applicant will meet the following conditions:

(1)  Have the name and articles of association of the audiovisual product reproducing unit;

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

(3)  Adapt the organization and staff to reflect the needs of the business scope;

(4)  Adapt funds, equipment and work premises to reflect the needs of the business scope;

(5)  Other conditions provided by laws and administrative regulations.

Approval of the establishment of an audiovisual product reproducing unit will not only be in accordance with the conditions enumerated in the preceding paragraph, but also conform to the programming on the total number, distribution and structure of the audiovisual product reproducing units.

Article 21 The application for establishing an audiovisual product reproducing unit will be examined and consented by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government where the applicant is located before it is submitted to the administrative department for publication under the State Council for examination and approval. The administrative department for publication under the State Council will, within 60 days of the receipt of the application, decide to approve or reject the application and notify the applicant. If the application is approved, a License for Reproducing Audiovisual Products will be issued to the applicant, who will register and obtain the business license in accordance with the law in the administrative department for industry and commerce with the License for Reproducing Audiovisual Products. If the application is not approved, the reason thereof will be stated.

The application will clearly state the following:

(1)  The name and address of the audiovisual product reproducing unit;

(2)  The name(s) and address(es) of the legal representative or principal persons(s) responsible for the audiovisual product reproducing unit;

(3)  The sources and amount of funds of the audiovisual product reproducing unit.

Article 22 Should an audiovisual product reproducing unit intend to modify its scope of business, or to merge with another audiovisual product reproducing unit, or establish a new audiovisual product reproducing unit due to a merger or division, it will go through the formalities of examination and approval in accordance with Article 21 of the regulations, and go through the corresponding registration formalities in the administrative department for industry and commerce.

Should an audiovisual product reproducing unit intend to change its name, address, legal representative or principal person(s) responsible, or terminate its reproducing business activities, it will go through the modification registration or cancellation registration in the administrative department for industry and commerce that handled the original registration, and report to the administrative department for publication under the State Council.

Article 23 Where an audiovisual product reproducing unit is entrusted to reproduce audiovisual products, it will, in accordance with the relevant provisions of the State, conclude an entrustment reproducing contract with the entrusting publishing unit and verify the entrusting publishing unit's License for Publishing Audiovisual Products, a copy of its business license, the power of attorney for reproducing audiovisual products, which is covered by seal of the entrusting publishing unit, and the written authorization by the copyright owner. Where the audiovisual products subject to entrusted reproduction are not for sale, the power of attorney for reproducing audiovisual products, which is checked and issued by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government and covered with the seal of the entrusting publishing unit, will be verified.

The audiovisual product reproducing unit will, within two years of the completion of the audiovisual products reproduction, preserve the entrustment contract, samples of the audiovisual products it has reproduced and copies of the relevant attestation documents to be ready for inspection.

Article 24 An audiovisual product reproducing unit may not accept the entrustment of an unit or individual who is not engaged in the publication of audiovisual products to reproduce profit-making audiovisual products, or reproduce audiovisual products on its own accord, or wholesale, retail or lease audiovisual products.

Article 25 An audiovisual product reproducing unit engaged in the reproduction of optical disks must, when reproducing them, use the plastic mould etched with the SID code, which is checked and issued by the administrative department for publication under the State Council.

Article 26 Where an audiovisual product reproducing unit is entrusted to reproduce overseas audiovisual products, it will submit the sample of the audiovisual products in advance to the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government for examination and consent, and go through the registration process in the administrative department for copyright in accordance with the law with the written authorization of the copyright owner. The reproduced audiovisual products will be transported outside of the territory.

Chapter IV: Import

Article 27 The import business of finished audiovisual products will be operated by the import units of finished audiovisual products designated by the administrative department for cultural affairs under the State Council; no unit or individual may operate the import business of finished audiovisual products without being designated.

Article 28 Whoever imports the audiovisual products used for publication or the finished audiovisual products used for wholesale, retail, lease, etc., shall report its contents to the administrative department for cultural affairs under the State Council for examination.

The administrative department for cultural affairs under the State Council will, within 30 days of the receipt of the application for examination of the content of the audiovisual products, decide to approve or reject the application and notify the applicant. If the application is approved, the approval document will be issued to the applicant. Should the application be rejected, the reason(s) thereof will be given.

Units that import audiovisual products used for publication, and import units of finished audiovisual products will go through the import formalities at customs with the approval documents by the administrative department for cultural affairs under the State Council.

Article 29 Whoever imports audiovisual products used for publication will register the copyright thereof with the administrative department for copyright under the State Council.

Article 30 Whoever intends to import audiovisual products for reference in research or teaching will entrust an import unit of finished audiovisual products to carry out the import in accordance with Article 28 of the regulations.

Whoever imports the audiovisual products used for exhibition or display will, after being approved by the administrative department for cultural affairs under the State Council, go through the formalities of temporary import at customs.

The audiovisual products imported in accordance with this article will not be used for profit-making reproduction, wholesale, retail, lease or projection.

Chapter V: Wholesale, Retail and Leasing

Article 31 To establish an audiovisual product wholesaling, retailing or leasing unit, the applicant will meet the following conditions:

(1)  Have the name and articles of association of the audiovisual product wholesaling, retailing or leasing unit;

(2)  Having a well-defined business scope;

(3)  Adapt an organization and staff to reflect the needs of the business scope;

(4)  Adapt the funds, equipment and work premises to reflect the needs of the business scope;

(5)  Other conditions provided by laws and administrative regulations.

Article 32 Applications for establishing nationwide chain operation units of audiovisual products will be examined and consented by the administrative department for cultural affairs under the people's government of the province, autonomous region or municipality directly under the Central Government where the applicant's headquarters is located before being submitted to the administrative department for cultural affairs under the State Council for examination and approval. Applications for establishing an audiovisual product wholesaling unit will be submitted to the administrative department for cultural affairs under the people's government of the province, autonomous region or municipality directly under the Central Government where the applicant is located for examination and approval. Applications for being engaged in the audiovisual product retailing or leasing business will be submitted to the administrative department for cultural affairs under the people's government at the county level for examination and approval. The administrative department for cultural affairs will, within 30 days of the receipt of the application, decide to approve or reject the application and notify the applicant. If the application is approved, a License for Operating Audiovisual Products will be issued to the applicant, who will register and obtain the business license in accordance with the law in the administrative department for industry and commerce with the License for Operating Audiovisual Products. If the application is not approved, the reason thereof will be given.

The License for Operating Audiovisual Products will indicate the variety of the audiovisual product business activities.

Article 33 Should an audiovisual product wholesaling, retailing or leasing unit intend to change its name or scope of business, or to merge another audiovisual product wholesaling, retailing or leasing unit, or establish a new audiovisual product wholesaling, retailing or leasing unit due to a merger or division, it will go through the formalities of examination and approval in accordance with Article 32 of the regulations, and go through the corresponding registration formalities in the administrative department for industry and commerce that handled the original registration.

Should an audiovisual product wholesaling, retailing or leasing unit intend to change its address, legal representative or principal person(s) responsible, or terminate its business activities -- or if an individual engaged in the audiovisual product retailing or leasing business intends to change his business scope, address or terminate its business activities -- it/he will go through the modification registration or cancellation registration in the administrative department for industry and commerce that handled the original registration, and will report to the administrative department for cultural affairs that granted the original approval.

Article 34 An audiovisual product publishing unit may, in accordance with the relevant provisions of the State, wholesale and retail the audiovisual products of its own publication. If it intends to be engaged in the wholesaling or retailing business of the audiovisual products not of its own publication, it shall go through the formalities of examination and approval in accordance with Article 32. of these Regulations, and shall go through the registration formalities in the administrative department for industry and commerce that handled the original registration.

Article 35 The State permits the establishment of Chinese-foreign cooperative enterprises engaged in the audiovisual product distributing business. The specific measures and procedures for implementation shall be stipulated by the administrative department for cultural affairs under the State Council jointly with the department in charge of foreign trade and economic cooperation under the State Council in accordance with the relevant provisions.

Article 36 No audiovisual product wholesaling unit or unit or individual engaged in the retailing or leasing business, etc. of audiovisual products may operate the audiovisual products published by any unit other than the audiovisual product publishing units or reproduced by any unit other than the audiovisual product reproducing units, nor shall it/he operate the audiovisual products which are imported without the approval of the administrative department for cultural affairs under the State Council or which infringe upon the copyrights of others.

Chapter VI: Penalty Provisions

Article 37 Where the administrative department for publication, the administrative department for cultural affairs, the administrative department for industry and commerce or any other relevant administrative department or any functionary thereof, by taking advantage of its/his office, accepts the properties or benefits from others, and approves an audiovisual product publishing, manufacturing, reproducing, importing, wholesaling, retailing or leasing unit which does not meet the legal conditions for establishment, or does not implement its/his supervision duties, or does not investigate the illegal acts it/he has found, thus causing serious consequences, the person in charge held responsible and other directly responsible persons shall be investigated for criminal liabilities in accordance with the provisions in the Criminal Law on the crimes of accepting bribes, of abusing power, of neglecting duty or other crimes; where the case is not serious enough for him to be imposed upon criminal punishments, he shall be imposed upon an administrative sanction of demotion or dismissal from his post.

Article 38 Where any functionary in a supervisory and administrative department for audiovisual product business activities is engaged in the audiovisual product business activities directly or in a disguised form, or participate in an audiovisual product operating unit's business activities directly or in a disguised form, he shall be imposed upon an administrative sanction of dismissal from his post or dismissal in accordance with the law.

Where the supervisory and administrative department for audiovisual product business activities has any of the acts enumerated in the preceding paragraph, the person in charge held responsible and other directly responsible persons shall be punished in accordance with the preceding paragraph.

Article 39 Whoever, without being approved and without authorization, establishes an audiovisual product publishing, manufacturing, reproducing, importing, wholesaling, retailing, leasing or projecting unit or is engaged, without authorization, in the publishing, manufacturing, reproducing business or importing, wholesaling, retailing or leasing business activities, shall be banned by the administrative department for publication and the administrative department for industry and commerce in accordance with their legal powers; and shall be investigated for criminal liabilities in accordance with the provisions in the Criminal Law on the crime of illegal business operation; if the case is not serious enough for it to be imposed upon criminal punishments, its audiovisual products under illegal operation, its illegal proceeds and special instruments and equipment used in the illegal activities shall be confiscated; if the amount of illegal operating fund is no less than 10,000 Yuan, it shall be imposed upon a fine of not less than 5 times but not more than 10 times the amount of illegal operating fund in addition; if the amount of illegal operating fund is less than 10,000 Yuan, it shall be imposed upon a fine of not more than 50,000 Yuan in addition.

Article 40 Whoever publishes the audiovisual products containing any content prohibited by Paragraph 2, Article 3 of these Regulations, or manufactures, reproduces, wholesales, retails, leases or projects the audiovisual products containing any content prohibited by Paragraph 2, Article 3 of these Regulations that he/it knows clearly or ought to know, shall be investigated for criminal liabilities in accordance with the relevant provisions in the Criminal Law; if the case is not serious enough for him/it to be imposed upon criminal punishments, the administrative department for publication, the administrative department for cultural affairs and the public security department shall, upon their respective powers, order him/it to cease the business for rectification, confiscate his/its audiovisual products under illegal operation and his/its illegal proceeds; if the amount of illegal operating fund is not less than 10,000 Yuan, he/it shall be also imposed upon a fine of not less than 5 times but not more than 10 times the amount of illegal operating fund in addition; if the amount of illegal operating fund is less than 10,000 Yuan, he/it may be imposed upon a fine of not more than 50,000 Yuan in addition; if the case is serious, his/its license shall be revoked in addition by the original organ that issued the license.

Article 41 Whoever smuggles audiovisual products shall be investigated for criminal liabilities in accordance with the provisions in the Criminal Law on the crime of smuggling; where the case is not serious enough for him/it to be imposed upon criminal punishments, he/it shall be imposed upon administrative punishments by the customs in accordance with the law.

Article 42 In case of any of the following circumstances, the party concerned shall be ordered to cease the illegal act, imposed upon a warning, confiscated of its audiovisual products under illegal operation and illegal proceeds by the administrative department for publication; if the amount of illegal operating fund is not less than 10,000 Yuan, it shall be imposed upon a fine of not less than 5 times but not more than 10 times the amount of illegal operating fund in addition; if the amount of illegal operating fund is less than 10,000 Yuan, it shall be imposed upon a fine of not less than 10,000 Yuan but not more than 50,000 Yuan in addition; if the case is serious, it shall, in addition, be ordered to cease its business for rectification or its license shall, in addition, be revoked by the original organ that issued the license:

(1)  An audiovisual product publishing unit leases, lends, sells or transfers in any other form its name to or sells or transfers in any other form its publisher's code to another unit or individual;

(2)  An audiovisual product publishing unit entrusts an unit which has not obtained the License for Manufacturing Audiovisual Products to manufacture audiovisual products, or entrusts an unit which has not obtained the License for Reproducing Audiovisual Products to reproduce audiovisual products;

(3)  An audiovisual product publishing unit publishes the audiovisual products which are imported without the approval of the administrative department for cultural affairs under the State Council;

(4)  An audiovisual product manufacturing unit or an audiovisual product reproducing unit does not verify the power of attorney or the relevant attestations of the audiovisual product publishing unit in accordance with these Regulations;

(5)  An audiovisual product reproducing unit reproduces other's audiovisual products without authorization, or accepts the entrustment of an unit or individual who is not engaged in the publication of audiovisual products to reproduce profit-making audiovisual products, or reproduces audiovisual products of its own accord.

Article 43 Where an audiovisual product publishing unit violates the relevant provisions of the State by cooperating with an organization or individual from Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan region or a foreign country to manufacture audiovisual products without being examined and consented to by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government, or where an audiovisual product reproducing unit violates the relevant provisions of the State by accepting the entrustment to reproduce overseas audiovisual products without fully transporting the reproduced overseas audiovisual products to the outside of the territory, it shall be ordered to make a correction, confiscated of its audiovisual products under illegal operation and its illegal proceeds by the administrative department for publication under the people's government of the province, autonomous region or municipality directly under the Central Government; if the amount of illegal operating fund is not less than 10,000 Yuan, it shall be imposed upon a fine of not less than 5 times but not more than 10 times the amount of illegal operating fund in addition; if the amount of illegal operating fund is less than 10,000 Yuan, it shall be imposed upon a fine of not less than 10,000 Yuan but not more than 50,000 Yuan in addition; if the case is serious, its license shall be revoked by the original organ that issued the license in addition.

Article 44 In case of any of the following circumstances, the party concerned shall be ordered by the administrative department for publication and the administrative department for cultural affairs to make a correction and be warned by them; if the case is serious, it shall, in addition, be ordered to make a rectification or its license shall, in addition, be revoked by the original organ that issued the license:

(1)  An audiovisual product publishing unit does not submit its annual publication plans and the key titles selected by it in respect of national security and social stability, etc. to the administrative department for publication under the State Council for record;

(2)  An audiovisual product publishing, manufacturing, reproducing, wholesaling, retailing or leasing unit does not go through the formalities of examination, approval and record in accordance with these Regulations when it intends to change its name, address, legal representative, principal responsible person(s) or scope of business, etc.;

(3)  An audiovisual product publishing unit does not indicate in a prominent position on the audiovisual product which it has published and its packaging the contents as provided for by these Regulations;

(4)  An audiovisual product publishing unit does not submit a sample in accordance with these Regulations;

(5)  An audiovisual product reproducing unit does not preserve the materials prepared for inspection in accordance with these Regulations;(6) an audiovisual product reproducing unit engaged in the reproduction of optical disks uses, when reproducing optical disks, the plastic mould not etched with the SID code checked and issued by the administrative department for publication under the State Council.

Article 45 In case of any of the following acts, the party concerned shall be ordered to cease its illegal acts, be imposed upon a warning, and be confiscated of its audiovisual products under illegal operation and its illegal proceeds by the administrative department for cultural affairs; if the amount of illegal operating fund is not less than 10,000 Yuan, it shall be imposed upon a fine of not less than 5 times but not more than 10 times the amount of illegal operating fund in addition; if the amount of illegal operating fund is less than 10,000 Yuan, it shall be imposed upon a fine of not less than 10,000 Yuan but not more than 50,000 Yuan in addition; if the case is serious, it shall, in addition, be ordered to cease its business for rectification, or its license shall, in addition, be revoked by the original organ that issued the license:

(1)  To wholesale, retail, lease or project the audiovisual products of an unit not engaged in the publication of audiovisual products or the audiovisual products reproduced by an unit not engaged in the reproduction of audiovisual products;

(2)  To wholesale, retail, lease or project the audiovisual products imported without the approval of the administrative department for cultural affairs under the State Council;

(3)  To wholesale, retail, lease or project the audiovisual products imported for reference in research or teaching or used for exhibition or display;

(4)  An audiovisual product publishing unit publishes the audiovisual products imported without the approval of the administrative department for cultural affairs under the State Council.

Article 46 Where an unit is imposed upon the administrative penalty of revocation of its license due to its violation of these Regulations, it shall go through the modification registration or cancellation registration in the administrative department for industry and commerce; if it has not gone through the said registration after the expiry, its business license shall be revoked by the administrative department for industry and commerce.

Article 47 Where an unit is imposed upon the administrative penalty of revocation of its license due to its violation of these Regulations, its legal representative or each of its principal responsible persons shall not, within 10 years as of the revocation of the license, hold the post of legal representative or principal responsible person of an audiovisual product publishing, manufacturing, reproducing, importing, wholesaling, retailing or leasing unit.

Where an individual engaged in the audiovisual product retailing, leasing or projecting business is imposed upon the administrative penalty of revocation of its license due to his violation of these Regulations, he shall not, within 10 years as of the revocation of the license, be engaged in the audiovisual product retailing, leasing or projecting business.

Article 48 With respect to the administrative penalty of fine imposed in accordance with these Regulations, the decision on the fine shall be separated from the collection of the fine in accordance with the relevant laws and administrative regulations; the collected fine must be totally turned over to the State treasury.

Chapter VII: Supplementary Provisions

Article 49 The establishment of profit-making audiovisual product projecting units shall not be approved as of the date when these Regulations come into force; those which have been established in accordance with the law may not renovate their present equipment, and shall be closed within 5 years; prior to their closure, they shall be supervised and administered by the administrative department for cultural affairs.

Article 50 The relevant organ shall not, when issuing licenses in accordance with these Regulations, collect any fees other than the cost that shall be collected on the basis of the legal standards.

Article 51 These Regulations shall come into force on February 1, 2002. The Regulations on the Administration of Audiovisual Products promulgated by the State Council on August 25, 1994 shall be simultaneously abolished.