Laws of the People's Republic of China

the State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce of the People's Republic of China

No. 16

The Measures for the Administration of Advertising Business Licenses, which were deliberated and adopted at the executive meeting of the State Administration for Industry and Commerce of the People's Republic of China, are promulgated hereby, and shall go into effect as of January 1st, 2005.

Director General of the State Administration for Industry and Commerce Wang Zhongfu

November 30, 2004

Measures for the Administration of Advertising Business Licenses

Article 1

With a view to strengthening supervision over and administration of advertising business activities and regulating the registration on the examination and approval of advertising operations, the present Measures are formulated in accordance with the Advertising Law of the People's Republic of China, Administrative License Law of the People's Republic of China, and the Regulation on the Management of Advertising.

Article 2

The following entities that undertake advertising business may not carry out the corresponding advertising operations until after having applied to the advertising supervision and administration organ in accordance with the present Measures and received an Advertising Business License:

1.

Radio stations, television stations, as well as publishers of newspapers, magazines and periodicals;

2.

Public institutions; and

3.

Entities that are subject to examination and approval of registration for advertising operations as prescribed by laws and administrative regulations.

Article 3

The advertising supervision and administration organ as mentioned in the present Measures shall refer to the administrative department of industry and commerce at or above the county level.

The advertising operator as mentioned in the present Measures shall refer to the various entities as listed in Article 2 , which apply for undertaking advertising business according to the present Measures and have obtained an Advertising Business License.

Article 4

The Advertising Business License is the legal certificate of an advertising operator for its undertaking of advertising operations.

The Advertising Business License shall have an original copy and a duplicate, which shall be legally of equal effect.

The Advertising Business License specifies the certificate number, name of the advertising operator or institution, site for business operation, legal representative or person-in-charge, advertising business scope , license issuing authority, issuing date, and other items.

Article 5

In an Advertising Business License, the advertising business scope shall be checked and ratified according to the following terms:

1.

Radio station: designing and producing radio advertisements, and publishing advertisements home and abroad by making use of self-owned radio station.

2.

TV station: Designing and producing television advertisements, and publishing advertisements home and abroad by making use of self-owned TV station.

3.

Newspaper office: Designing and producing printed advertisements, and publishing advertisements home and abroad by making use of self-owned "ˇÁˇÁNewspaper".

4.

Periodical or magazine office: Designing and producing printed advertisement, and publishing advertisements by making use of self-owned magazine. And

5.

Other entities concurrently managing advertising operations: Publishing ˇÁˇÁ advertisements by making use self-owned media or place, designing or producing ˇÁˇÁadvertisements.

Article 6

The State Administration for Industry and Commerce shall take charge of the work for the supervision over and administration of Advertising Business Licenses.

The advertising supervision and administration organs at all levels shall be responsible for the issuing, modifying, revoking of Advertising Business Licenses within their jurisdictions and for the routine supervision and administration work.

Article 7

The following conditions shall be met when applying for an Advertising Business License:

1.

Having the media or means for publishing advertisements directly;

2.

Establishing specialized agencies dealing in advertising ;

3.

Having equipments and business place for advertising operation; and

4.

Having advertising professionals and advertising censor who knows well the advertising laws and regulations.

Article 8

The following procedures shall be followed when applying for an Advertising Business License:

The applicant shall submit the application documents as prescribed in Article 9 to the advertising supervision and administration organ with jurisdiction at or above the county level where it is located.

The advertising supervision and administration organ shall make a decision on whether to grant approval or not within 20 days from the date of acceptance. If it grants the approval, it shall issue an Advertising Business License; if it does not grant the approval, it shall give an explanation in writing.

Article 9

The following application documents shall be submitted to the advertising supervision and administration organ when applying for the Advertising Business Licenses:

1.

Application Form for the Registration of Advertising Operations;

2.

Certificate of Advertising Media. Radio stations, television stations, newspapers and periodicals and other media, which may not be managed until after having obtained the approval as prescribed by laws and regulations, shall submit the relevant documents of approval;

3.

Checklist of advertising equipments and certificate document concerning the business place;

4.

The certificate documents concerning the person-in-charge of the advertising operators and advertising censors; and

5.

Legal person registration certificate of the entity.

Article 10

An advertising operator shall carry out business activities within the advertising business scope as approved by the advertising supervision and administration organ, and shall not alter the advertising business scopewithout applying for alteration and getting approval from the advertising supervision and administration organ.

In case there is any alteration in the name of an entity, legal representative or person-in-charge or business place, the advertising operator shall apply for alteration of the Advertising Business License within one month from the day when such alteration is made.

Article 11

An advertising operator shall submit the following application documents when applying for alteration of the Advertising Business License:

1.

Application Form for Alteration Registration of Advertising Operation;

2.

The original and duplicate of the former Advertising Business Licenses; and

3.

The certificate documents relating to the alteration of advertising business scope, name of the entity, legal representative or person-in-charge, business place and other matters.

Article 12

The advertising supervision and administration organ shall make a decision on whether to approve the alteration or not within 10 days from the date when it accepts the application for the alteration of the Advertising Business License. If it grants approval after examination, it shall issue a new Advertising Business Licenses; if it does not grant approval, it shall give an explanation in writing.

Article 13

In case any advertising operator no longer meet the conditions as prescribed in Article 7 of the present Measures due to the change of conditions or ceases undertaking advertising operations, it shall timely go through formalities of writing off the Advertising Business License with the advertising supervision and administration organ.

Article 14

An advertising operator shall submit the following application documents when writing off the Advertising Business License:

1.

Application Form for Write-off Registration of Advertising Operation;

2.

The original and duplicate of the Advertising Business License; and

3.

The certificate documents relating to the writing-off of the Advertising Business Licenses.

Article 15

In case any advertising operator, who has obtained the Advertising Business Licenses, no longer meets the conditions as prescribed in Article 7 of the present Measures due to the change of conditions and fails to through the formalities of writing off the Advertising Business License in accordance with the provisions of the present Measures, the license issuing authority shall revoke the Advertising Business License.

Article 16

In case any advertising operator violates the provisions of the Advertising Law and its advertising business is terminated by the advertising supervision and administration organ in accordance with the provisions of Articles 37, 39, and 41 of the Advertising Law, and the license issuing authority shall revoke the Advertising Business License.

Article 17

An advertising operator shall place the original of the Advertising Business License at an eye-catching place of its business place.

No entity or individual may forge, alter, lease, lend, buy in and sell at a profit or transfer the Advertising Business License by any other means.

Article 18

In case the Advertising Business License of any advertising operator is damaged or lost, its cancellation shall be announced on newspapers or periodicals and make it up at the advertising supervision and administration organ in time.

Article 19

The advertising supervision and administration organ shall strengthen routine supervision and inspection and check periodically the advertising operation qualification of any advertising operator that has obtained the Advertising Business License within its own jurisdiction. The specific time for checking the advertising operation qualification and the contents to be checked shall be determined by advertising supervision and administration organs at or above the provincial level.

An advertising operator shall accept the routine supervision of the advertising supervision and administration organ over its operation conditions and take part in the inspection on the advertising operation qualification as required.

Article 20

Anyone who violates the provisions of the present Measures shall be given a punishment by the advertising supervision and administration organ according to the following provisions:

1.

If it undertakes advertising operations without an Advertising Business License, it shall be punished according to the relevant provisions of the Measures of the State Council for Investigation into and Punishing and Banning Operations without Business Licenses.

2.

If it obtains an Advertising Business License by means of submitting false documents or other fraudulent means, it shall be given a warning, and be imposed upon a fine of no less than RMB 5000 Yuan but no more than 10,000 Yuan. If the case is serious, its Advertising Business License shall be revoked. If the Advertising Business License is revoked by the advertising supervision and administration organ in accordance with the provisions of this paragraph, it shall not apply for a Business License within one year.

3.

If there is any alteration on any registration matter in the Advertising Business License without permission, and it fails to go through alteration formalities in accordance with the provisions of the present Measures, it shall be ordered to correct and be fined up to RMB 10,000 Yuan.

4.

If an advertising operator fails to place the original of the Advertising Business License at an eye-catching place of its business place, it shall be ordered to correct within a prescribed time limit; if it fails to correct exceeding the time limit, it shall be fined up to RMB 3000 Yuan.

5.

If it forges, alters, leases, lends, buys in and sells at a profit or transfers by other means its Advertising Business License, it shall be fined RMB 3000 Yuan up to 10,000 Yuan. Or

6.

If an advertising operator fails to take part in the inspection on the advertising operation qualification as required, fails to submit the inspection materials for advertising operation qualification, refuses to accept the routine supervision and administration of the advertising supervision and administration organ without reasonable ground, or disguises actual conditions or submit false materials in the inspection, it shall be ordered to correct and be fined up to RMB 10,000 Yuan.

Article 21

In case any staff member of any advertising supervision and administration organ neglects his duty, misuses his authority, and engage in malpractices for selfish ends during the process of administering Advertising Business Licenses, he shall be given an administrative punishment. If a crime is committed, he shall be prosecuted for the criminal responsibility in accordance with law.

Article 22

The formats of the original and duplicate of the Advertising Business License, and the formats of the Application Form for the Registration of Advertising Operation, the Application Form for Alteration Registration of Advertising Operation, and the Application Form for Write-off Registration of Advertising Operation shall be uniformly made by the State Administration for Industry and Commerce.

Article 23

The advertising business scope of any applicant, advertising business items or business categories checked and ratified by advertising supervision and administration organs at all levels in accordance with the provisions of Article 5 shall fit in with the conditions it satisfies.

In case there are special provisions prescribed by the state restricting the advertising business scope, business items, and business categories of any advertising operator, these provisions shall be abided by.

Article 24

Apart from applying to the specific provisions of the present Measures, the general provisions of the Administrative License Law on the procedures for the implementation of relevant administrative license shall also be followed for the implementation procedures for advertising operation licensing.

Article 25

The present Measures shall go into effect as of January 1st, 2005.