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REGULATIONS ON ADMINISTRATION OF FILMS

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1996-06-19 Effective Date  1996-07-01  

Regulations on Administration of Films



Chapter I  General Provisions
Chapter II  Production of Films
Chapter III  Examination of Films
Chapter IV  Import and Export of Films
Chapter V  The Distribution and Projection of Films
Chapter VI  The Guarantee for Film Undertakings
Chapter VII  Penalty Provisions
Chapter VIII  Supplementary Provisions

(Adopted at the 45th Executive Meeting of the State Council on May 29,

1996, promulgated by Decree No.200 of the State Council of the People's
Republic of China on June 19, 1996)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purposes of
strengthening the administration of the film industry, developing and
promoting film undertakings, satisfying the needs of the people for cultural
life and promoting the construction of socialist material and spiritual
civilization.

    Article 2  These Regulations shall apply to activities of the production,
import, export, distribution and projection, etc., of feature films,
documentary films, science and educational films, films of special subjects,
cartoons and puppet films, etc., within the territory of the People's
Republic of China.

    Article 3  Activities concerning films such as film production, import,
export, distribution and projection, etc., must persevere in the direction of
serving the people and socialism.

    Article 4  The administrative department of radio, film and television
of the State Council shall take charge of the nationwide work of films.

    Administrative department for films of people's governments at and above
the county level shall, in accordance with these Regulations, be responsible
for the administration of films within their respective regions.

    Article 5  National social organizations in film industry shall, in
accordance with their constitutions and under the guidance of the
administrative department of radio, film and television of the State Council,
exercise self-discipline in the management.

    Article 6  The state shall give rewards to organizations and individuals
having made remarkable contributions to the development of film undertakings.
Chapter II  Production of Films

    Article 7  Films shall be produced by film studios.

    Article 8  The establishment of a film studio must be in conformity with
the plan on the total number, distribution and structure of film studios
formulated by the administrative department of radio, film and television of
the State Council, and satisfies the following requirements:

    (1) Have the aim and constitution of the film studio;

    (2) Have definite scope of business;

    (3) Have the funds suitable to its business;

    (4) Have place and equipment according with stipulations for film
production; and

    (5) Have an organizational structure and professional personnel suitable
to the demands of the business.

    Article 9  For applying for the establishment of a film studio, the
administrative department in charge of the applicant unit shall submit an
application to the administrative department for films of the local people's
government of the province, autonomous region and municipality directly under
the central government for examination and permission, and the latter, if
giving permission, shall submit the application to the administrative
department of radio, film and television of the State Council for examination
and approval.

    The application shall include the following items:

    (1) The name, address and economic nature of the film studio to be
established;

    (2) The name, address and nature of the administrative department in
charge of, and the sponsor of, the film studio to be established;

    (3) The name, address and credentials of the legal representative of the
film studio to be established; and

    (4) The source and amount of the funds of the film studio to be
established.

    Article 10  The administrative department of radio, film and television
of the State Council shall, within 180 days after receiving the application
for establishing a film studio, make a decision on whether or not to approve
it, notify the applicant in writing of the decision, and give reasons if the
application has not been approved. Where the application is approved, the
administrative department of radio, film and television of the State Council
shall issue a License for Film Production to the applicant and, by producing
the license, the applicant shall register with the administrative department
for industry and commerce of the State Council and draw a Business License
therefrom.

    Article 11  A film studio shall, to the extent of all its assets, enjoy
civil rights and assume civil obligations in accordance with the law.

    Article 12  The state shall carry out annual inspection on licenses
for film production, the measures for which shall be formulated by the
administrative department of radio, film and television of the State Council.

    Article 13  Changes and termination of a film studio shall be subject to
to the approval of the administrative department of radio, film and
television of the State Council, and shall go through the registration for
changes or formalities for cancellation.

    Article 14  Film studios may engage in the following activities:

    (1) Produce films;

    (2) Make reproductions of films produced by themselves;

    (3) In accordance with relevant provisions of the state, distribute films
and their reproductions produced by themselves and allowed to be projected
publicly; and

    (4) In accordance with relevant provisions of the state, export films and
their reproductions produced by themselves and allowed to be projected
publicly.

    Article 15  Film studios shall establish and improve the management
system and guarantee the quality of the films.

    Article 16  Film studios shall enjoy copyrights over the films produced
by themselves. Except as otherwise stipulated by laws or regulations, any
unit or individual shall get authorization from the copyright owner before
exploiting a film product by means of reproduction, distribution, projection,
broadcast, publication, dubbing, adaptation or the like.

    Anyone who exploits a film product under the provisions of the preceding
paragraph shall conclude a contract with the copyright owner and pay
remuneration in accordance with the stipulations of the contract.

    Article 17  The state encourages official organs, enterprises,
institutions and other social organizations and citizens to participate in
film production by investing or giving financial aid, the measures for which
shall be formulated by the administrative department of radio, film and
television of the State Council.

    Article 18  Film studios may, either inside or outside China, produce
films in cooperation with external film producers.

    Article 19  For Sino-foreign joint production of a film, the Chinese side
shall submit an application in advance to the administrative department of
radio, film and television of the State Council, and the latter shall, after
getting opinions from relevant departments and considering it in conformity
with relevant provisions after examination, issue a Permit for Sino-Foreign
Joint Production of Films only for the present application. After obtaining
the permit, the applicant shall, in accordance with relevant provisions,
conclude a contract for the joint production.

    Article 20  When there is a need to import equipment, materials, film or
props for the Sino-foreign joint production of a film, the producer shall go
through the import or temporary import formalities with the customs by
producing the approval document issued by the administrative department of
radio, film and television of the State Council.

    Article 21  When producing films in cooperation with Chinese film studios
or in other forms in the territory of the people's republic of China,
external film producers shall observe laws and regulations of the People's
Republic of China and respect the customs and habits of various Chinese
nationalities.

    Article 22  The development and later production of negatives and sample
copies of a film produced either by a domestic film studio or a Sino-foreign
joint effort shall be done in the territory of the People's Republic of
China. When it needs to be completed outside China due to some special
technological demands, a specific application shall be submitted to the
administrative department of radio, film and television of the State Council
for approval.
Chapter III  Examination of Films

    Article 23  The state shall adopt a film examination system.

    Films that have not examined and approved by the film examination
organ of the administrative department of radio, film and television of the
State Council may not be distributed, projected, imported or exported.

    Article 24  Films are forbidden to have the following contents:

    (1) Those endangering the unity, sovereignty and territorial integrity of
the state;

    (2) Those harming the security, honor and interests of the state;

    (3) Those inciting national splitism and disrupting the unity of
nationalities;

    (4) Those divulging state secrets;

    (5) Those publicizing obscenity or superstitions or playing up violence;

    (6) Those libeling or insulting other people; or

    (7) Other contents prohibited by the state.

    Films shall be up to the national standards in terms of technological
quality.

    Article 25  Film studios shall, in accordance with the provisions of
Article 24, conduct examination on scenarios before they are put into
production and on films before they are dispatched from the studios.

    Film studios shall submit the scenarios which they plan to put into
production to the film examination organ for filing, the measures of which
shall be formulated by the administrative department of radio, film and
television of the State Council.

    Article 26  Film studios shall, after the completion of a film
production, submit the film to the film examination organ for examination and
pay the examination fee in accordance with relevant provisions of the state.
Units engaging in film import shall, after going through the formalities for
the temporary import of a film, submit the film to the film examination organ
for examination and pay the examination fee.

    The schedule of fees for film examination shall be fixed by the financial
department and price department of the State Council together with the
administrative department of radio, film, and television of the State
Council.

    Article 27  The film examination organ shall, within 30 days after
receiving the film submitted for examination, notify the submitting unit in
writing of the decision on the examination and, if the film has passed the
examination, issue a Permit for Film Projection for this film. Film studios
and units engaging in film import shall put the number of their Permit for
Film Projection on the title of the first copy of the film.

    Article 28  If refusing to accept the decision of the film examination,
the film studio or the unit engaging in film import may, within 30 days
after receiving the decision, apply re-examination to the film re-examination
organ of the administrative department of radio, film and television of the
State Council; the latter shall issue a Permit for Film Projection for the
film if it passes the re-examination.
Chapter IV  Import and Export of Films

    Article 29  Import of films shall be managed by units approved by the
administrative department of radio, film and television of the State Council
for engaging in film import; without approval, no other units or individuals
may engage in film import.

    Article 30  For importing films for examination, the unit engaging in
film import shall go through the formalities for temporary import with the
customs by producing the approval document issued by the administrative
department of radio, film and television of the State Council.

    Films imported for public projection shall be examined by the film
examination organ; those having passed the examination shall be issued a
Permit for Film Projection and documents approving the import. Only by
producing the documents approving the import may the unit engaging in film
import go through the formalities for import with the customs.

    Article 31  Units engaging in film import shall exploit film products
with the license and within the scope of the license of the copyright owner
of the film; without the license, no unit or individual may exploit imported
film products.

    Article 32  The ownership of copyright to a dubbed film shall be
stipulated by the dubbing party and entrusting party in the film-dubbing
contract; in case of failure to have such stipulations in the contract, the
copyright to the dubbed film shall be owned by the dubbing party.

    Article 33  For exporting a film produced by themselves, a film studio
may go through the formalities for film export with the customs by producing
the Permit for Film Projection.

    Article 34  For exporting a film produced by a Sino-foreign joint effort,
the Chinese side may go through the formalities for film export with the
customs by producing the Permit for Film Projection.

    Article 35  For importing films of special subjects as reference
materials for scientific research or education, the importing unit shall
submit an application to the relevant administrative department of the State
Council for approval and, with an approval document, they may go through the
formalities for import with the customs and shall, within 30 days after the
import, report to the administrative department of radio, film and television
of the State Council for filing.

    China Film Library may directly go through the formalities with the
customs for importing reference films, and report to the administrative
department of radio, film and television of the State Council for filing by
the quarter. No other units or individuals may import feature films or other
films prohibited by the state in the name of scientific research or
education.

    Article 36  For holding a Sino-foreign film exhibition or international
film festival or participating in foreign-related film exchange activities
such as film exhibition or film festival held abroad, an application shall be
submitted to the administrative department of radio, film and television of
the State Council for approval, and the films to be involved in the exchanges
shall be submitted to the administrative department of radio, film and
television of the State Council for examination; only with the approval can
the formalities for temporary import or export of films be handled with the
customs.
Chapter V  The Distribution and Projection of Films

    Article 37  Film distribution and projection units to be established
must satisfy the requirements specified by the administrative department of
radio, film and television of the State Council.

    Article 38  For establishing a film distribution unit, an application
shall be submitted to the administrative department for films of the local
people's government of province, autonomous region or municipality directly
under the central government, which shall, if considering it in conformity
with stipulations after examination, issue a Business License for Film
Distribution; the applicant shall register with the local administrative
department for industry and commerce by producing the license.

    Article 39  For establishing a film distribution unit involving more than
one province, autonomous region or municipality directly under the central
government, an application shall be submitted to the administrative
department of radio, film and television of the State Council, which shall,
if considering it in conformity with stipulations after examination, issue a
Business License for Film Distribution; the applicant shall register with the
local administrative department for industry and commerce by producing the
license.

    Article 40  For establishing a film projection unit, an application shall
be submitted to the administrative department for films of the local people's
government at or above the county level, which shall, if considering it in
conformity with stipulations after examination, issue a Business License for
Film Projection; the applicant shall register with the local administrative
department for industry and commerce by producing the license.

    Article 41  In case of changes or termination of a film distribution or
projection unit, approval from the original approving department must be
obtained, and the registration for changes or cancellation shall be conducted
in accordance with the law.

    Article 42  The state shall adopt an annual inspection system to the
Business License for Film Distribution and the Business License for Film
Projection. Measures for the annual inspection shall be formulated by the
administrative department of radio, film and television of the State Council.

    Article 43  For distributing or projecting a film, one must hold a Permit
for Film Projection issued by administrative department of radio, film and
television of the State Council.

    Article 44  For producing audio-visual products by exploiting films, the
license from the copyright owner of the film must be obtained, and the
procedures for publication, reproduction, distribution and projection shall
be completed in accordance with the provisions of the State Council
concerning the administration of audio-visual products.

    No unit or individual may use reference films for profit-seeking
activities or disguised profit-seeking activities.

    Article 45  The ratio of time spent on the projection of domestic films
and that spent on the projection of the imported films shall be consistent
with stipulations.

    The time spent every year by a film projection unit on the projection of
domestic films may not be less than two thirds of the total time spent
annually by the same projection unit on film projection.

    Article 46  Film projection units shall maintain the public order and
general sanitation of the cinemas and guarantee the safety and health of the
audiences.

    Article 47  In some special cases, the administrative department of
radio, film and television of the State Council may make a decision of
deletion or suspension of projection on films already having the Permit for
Film Projection; all film distribution and projection units shall carry out
such decisions.
Chapter VI  The Guarantee for Film Undertakings

    Article 48  The state shall establish and improve a film administration
system compatible with the socialist market economy in order to develop the
film undertakings.

    Article 49  The state shall guarantee the freedom in film creation, value
and foster talented persons for film undertakings, attach importance to and
strengthen the theoretical research in films, promote film creation and
improve the quality of films.

    Article 50  The state shall set up a special foundation for the
development of film undertakings and adopt other favorable measures to
support the development of film undertakings.

    Article 51  The special foundation for the development of the film
undertakings shall support or give aid to the following projects:

    (1) The production of major films and collection of highly rated
scenarios advocated and confirmed by the state;

    (2) Technological or equipment transformation of key film production
bases;

    (3) Transformation of film projection equipment;

    (4) The development of film undertakings in minority nationality regions
or remote border and poverty-stricken areas; and

    (5) Other projects needing support.

    Article 52  The state encourages and support the production, distribution
and projection of science and educational films, children's films, cartoons
and puppet film, etc.

    Article 53  The state shall give favored treatment to the film
distribution and projection in economically undeveloped areas and rural
regions.

    Article 54  Local people's governments at various levels shall
incorporate the plan for the building of film projection facilities into
their local construction planning.

    Rebuilding of film projection facilities shall be submitted to the
administrative department for films of the local people's government at or
above the county level for approval. The facilities rebuilt may not be
smaller than the original in size, nor the use of film projection facilities
for other purposes shall be allowed.

    Article 55  People's governments at and above the county level and their
relevant administrative departments shall take timely actions to stop acts of
disturbing, obstructing or sabotaging film production, distribution or
projection, investigate and deal with the illegal activities in accordance
with the law.
Chapter VII  Penalty Provisions

    Article 56  Units of film production, import, distribution and
projection established without approval shall be banned by the administrative
department for films of the local people's government at or above the county
level with the illegal articles and earnings confiscated and a fine from five
to ten times the illegal earnings.

    Article 57  In cases of violations of these Regulations by importing,
distributing or projecting a film without a Permit for Film Projection, the
administrative department for films of the local people's government at or
above the county level shall order a stop to the illegal activities,
confiscate the illegal articles and earnings and impose a fine from ten to
fifteen times the illegal earnings; if the circumstances are serious, a
suspension for rectification shall be ordered or the license revoked by the
organ issued the license; when a crime is constituted, the criminal
responsibility shall be investigated in accordance with the law.

    Article 58  In cases of violations of these Regulations by committing any
of the following acts, the administrative department for films of the local
people's government at or above the county level shall order a stop to the
illegal activities, confiscate the illegal articles and earnings and impose
a fine from five to ten times the illegal earnings; if the circumstances are
serious, a suspension for rectification shall be ordered or the license
revoked by the organ issued the license; when a crime is constituted, the
criminal responsibility shall be investigated in accordance with the law:

    (1) Produce films in cooperation with external organizations or persons
without approval;

    (2) Import films without examination and approval;

    (3) Use reference films for profit-seeking activities or disguised
profit-seeking activities;

    (4) Fail to observe the decision of the administrative department of
radio, film and television of the State Council of the deletion or suspension
of projection on a film; or

    (5) Illegally reproduce films.

    Article 59  In cases of violations of these Regulations by making
development or later production of the negatives or sample copies of a film
outside China without approval, the administrative department of radio, film
and television of the State Council shall order a stop to the illegal
activities and set a time limit for correction; if the circumstances are
serious, the Permit for Film Production shall be revoked.

    Article 60  Sino-foreign film exhibitions and international film
festivals held without approval and the participation in external film
exhibitions or film festivals without approval shall be banned by the
administrative department of radio, film and television of the State Council
with the illegal earnings confiscated and a fine from five to ten times the
illegal earnings.

    Article 61  Personnel of the administrative department of radio, film and
television of the State Council and the administrative department for films
of local people's governments at and above the county level and other
relevant administrative personnel who, in conducting the administration of
films, abuse their powers, neglect their duties or play favoritism and commit
irregularities shall be investigated for criminal responsibility if a crime
is constituted, or given a disciplinary sanction if the circumstances are not
serious enough to constitute a crime.
Chapter VIII  Supplementary Provisions

    Article 62  Units of film production, import, distribution and projection
established before the implementation of these Regulations according to the
state's provisions other than these Regulations shall, within six months of
the effective date of these Regulations, go through relevant formalities anew
in accordance with the provisions of these Regulations.

    Article 63  Measures for the production and broadcast of telefilms shall
be formulated by the administrative department of radio, film and television
of the State Council in accordance with the principles confirmed in these
Regulations.

    Article 64  These Regulations shall go into effect on July 1, 1996.



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