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Article 1. The present Detailed Implementing Rules are formulated in accordance with the provisions of Article 21 of the Regulation on the Administration of Advertising (hereinafter referred to as the Regulation). Article 2. The administrative scope as prescribed in Article 2 of the Regulation shall include: (1) advertisements that are printed in newspapers, periodicals, books, directories, etc.; (2) advertisements that are broadcast on radio or television or in films, videos, slide shows, etc.; (3) advertisements made by way of road signs, neon lights, electronic display boards, display windows, lanterns, walls, etc. by using the buildings or space of streets, public squares, airports, railway stations, wharves, etc.,; (4) advertisements that are displayed or posted inside or outside such places as theatres, stadiums, cultural centers, exhibition halls, guest houses, restaurants, sightseeing and amusement centers, markets, etc.; (5) advertisements that are displayed, drawn or posted on vehicles, vessels, airplanes or other means of transport; (6) various types of advertising propaganda materials which are sent by mail; (7) advertising propaganda made by means of giving complimentary objects; and (8) advertising that use other media or means to publish, broadcast, display or post advertisements. Article 3. Any enterprise that applies for the approval to engage in advertising operations, in addition to meeting such conditions as enterprise registration etc., shall also be required to meet the following conditions: (1) Having established an institution responsible for the market survey and having the relevant specialized personnel thereof; (2) Having administrative personnel who are familiar with advertising administrative legislation and the personnel who are able to undertake the design, production and editing of advertisements; (3) Having full-time accounting personnel; and (4) Having the ability to manage the advertisements of foreign businessmen when applying contracting or to act as an agent in operating the advertising of foreign businessmen. Article 4. Broadcasting stations, TV stations, newspaper publishing entities, public institutions, and other institutions as prescribed by laws and administrative regulations shall meet the following conditions in their registration of permit for advertising operations: (1) Having the media or means to directly issue advertisements; (2) Having established a special organization for advertising operations; (3) Having the equipment and place for advertising operations; and (4) Having specialized advertising personnel and advertising examinants familiar with the advertising laws and regulations. Article 5. Where a Sino-foreign equity joint venture, a Sino-foreign co-operative enterprise or a foreign-funded enterprise applies for engaging in advertising operations, it shall be handled in accordance with the Provisions on the Administration of Foreign-funded Advertising Enterprises and with reference to the Regulation, these Detailed Implementing Rules and other relevant provisions. Article 6. Where an individual industrial and commercial household applies for engaging in advertising operations, in addition to meeting the conditions as prescribed in the Provisional Regulations on the Administration of Individual Industrial and Commercial Household Operations in Towns and Villages, the individual shall have advertising professional skills and good knowledge of the advertising administrative legislation. Article 7. In accordance with Article 6 of the Regulation, the advertising operator registration procedure shall be as follows: (1) An enterprise to engage in advertising business operations shall apply to the administration for industry and commerce with jurisdiction for enterprise registration and shall be issued with a business license; (2) Broadcasting stations, TV stations, newspaper publishing entities, public institutions and other institutions as prescribed by laws and administrative regulations, when applying for engaging in part-time advertising activities and being required to make registration of permits for advertising operations, shall apply to the administration for industry and commerce of the province, autonomous region, municipality directly under the Central Government and city under separate State planning or the authorized administrative body at or above the county-level and shall be issued with an Advertising Operation Permit; (3) An independent industrial and commercial household who is engaged in advertising operations shall apply to its local administration for industry and commerce and shall be issued with a business license after registration at the local administration for industry and commerce according to the law. Article 8. Any advertising client, who applies for cigarette advertising by means of such media as broadcasting, television and newspaper, shall be subject to the approval of the administration for industry and commerce of his province, autonomous region, municipality directly under the Central Government or the authorized municipal administrative body under provincial jurisdiction. Article 9. In accordance with Article 7 of the Regulation, any client who applies for the issuance of an advertisement shall present the corresponding certificates as follows: (1) An enterprise or an independent industrial and commercial household shall present its business license for inspection; (2) An administrative organ, social group or public institution shall present the certificate of its respective entity; (3) An individual shall present a certificate issued by its local township, village, subdistrict office or the entity where he works; and (4) A resident representative office of a foreign enterprise shall present for inspection its Registration Permit of Resident Representative Office of Foreign Enterprise in China. Article 10. In accordance with the provisions of item (1) of Article 11 of the Regulation, whoever applies for the issuance of an advertisement of commodities shall present for inspection a quality certificate verifying that the commodity complies with State standards, ministerial standards (specialized standards) or enterprise standards. Article 11. In accordance with item (7) of Article 11 of the Regulation, relevant certificates shall be represented where anyone applies for issuing any of the following types of advertisements: (1) Whoever advertises the publication of a newspaper or periodical shall present the registration certificate verified by the news publishing organ of his province, autonomous region or municipality directly under the Central Government; (2) Whoever advertises the publication of a book shall present a certificate of approval for the establishment of the publishing house issued by the relevant news publishing organs; and (3) Whoever advertises any of the various types of artistic and cultural performances shall present a certification document in accordance with relevant provisions. Article 12. In accordance with item (8) of Article 11 of the Regulation, relevant certificates shall be presented where anyone applies for using the print or broadcast medium to publicize advertisements of the following content: (1) Whoever advertises any of the various display and sales exhibitions, order placement meetings, trade fairs, etc., shall present a certificate of approval issued by the department in charge of the organizing unit; and (2) Whoever advertises by means of notices or announcements concerning individual persons shall present a certificate issued by the person's institution, township (village) people's government or subdistrict office. Article 13. Where a client applies for the publishing, broadcasting, displaying or posting of an advertisement, it shall present the original of the certificate as required or an effective photocopy. Article 14. Agency fees for undertaking advertising work shall be 15% of the advertising costs. Article 15. Where a domestic enterprise issues advertisements abroad, or if a foreign enterprise (organization) or a person of foreign nationality undertakes and issues advertisements within the Chinese territory, it shall entrust an enterprise agent who is registered in China and authorized to provide advertising services. The violator shall be imposed a fine of no more than three times the illegal earnings but no more than 30,000 yuan at the maximum, or a fine of no more than 10,000 yuan if no illegal proceeds were generated. Article 16. In accordance with Article 12 of the Regulation, when acting as an agent for or as the issuer of an advertisement, the agent or issuer shall be responsible for inspecting the content of the advertisement and relevant certificates and shall have the right to request the advertising client to provide any other necessary certificates and documents. An advertising agent or issuer shall not be permitted to act as an agent of or issue an advertisement if the certificate is found to be illegal or incomplete or if the content of the advertisement is found to be false. An advertising operator shall establish a system of keeping records for and reexamining the advertising businesses undertaken and service filing for advertisements. An advertising service file shall be kept for a minimum of one year. Article 17. Where an advertising client violates the provisions of Article 3 or item (5) of Article 8 of the Regulation by using an advertisement to mislead or cheat users or consumers, the client shall be ordered to issue an amended advertisement within a corresponding area. Depending on the seriousness of the case, a notice of criticism may be circulated and the client may be imposed a fine of no more than three times the illegal proceeds but no more than 30,000 yuan at the maximum, or a fine of no more than 10,000 yuan if no illegal proceeds were generated and shall be responsible for compensation if any damage results to users or consumers. Where an advertising operator assists a client to practice fraud, depending on the seriousness of the case, a notice of criticism may be circulated, the illegal proceeds, if any, may be confiscated and a fine of no more than three times the illegal earnings but no more than 30,000 yuan at the maximum, or a fine of no more than 10,000 yuan may be imposed if no illegal proceeds were generated. Under serious circumstances, the advertising operator may be ordered to suspend business operations for rectification and its business license or Advertising Operation Permit may be revoked. Joint and several liability shall be borne by the operator if damage results to users or consumers. The costs of issuing an amended advertisement shall be borne jointly by the advertising client and the advertising operator. Article 18. Where the provisions of Article 4 or item (6) of Article 8 of the Regulation are violated, a notice of criticism may be circulated, the illegal proceeds, if any, may be confiscated, and a fine up to 5, 000 yuan may be imposed or an order may be given to suspend business operations for rectification in light of the seriousness of the case in question. Article 19. Where an advertising operator violates the provisions of Article 6 of the Regulation by engaging in advertising activities without necessary permits, it shall be punished in accordance with the relevant provisions of the Measures for Investigating into, Punishing and Banning Permitless Business Operations. Where an advertising operator violates the provisions by exceeding its approved scope of operations, it shall be punished according to relevant provisions of the laws and regulations on the administration of enterprise registration. Article 20. Where an advertising client violates the provisions of Article 7 of the Regulation, depending on the seriousness of the case, a notice of criticism may be circulated and a fine of no more than 5,000 yuan may be imposed. Article 21. Where any provision of items (1), (2), (3) or (4) of Article 8 of the Regulation is violated, a notice of criticism shall be circulated regarding the advertising operator involved, the illegal proceeds, if any, generated by the operator shall be confiscated and a fine of no more than 10,000 yuan shall be imposed. As for the advertising client involved, a notice of criticism may be circulated and a fine of no more than 10,000 yuan may be imposed, depending on the seriousness of the case in question. Article 22. Where a news institution violates the provisions of Article 9 of the Regulations a notice of criticism may be circulated, the illegal proceeds, if any, may be confiscated and a fine of no more than 10,000 yuan may be imposed, depending on the seriousness of the case in question. Article 23. Where an advertising operator violates the provisions of Article 10 of the Regulation, a notice of criticism may be circulated, the illegal proceeds, if any, may be confiscated and a fine of no more than 10,000 yuan may be imposed, depending on the seriousness of the case in question. Article 24. Where an advertising client violates the provisions of Article 11 of the Regulation by forging, altering, stealing and using or illegally copying an advertising certificate, a notice of criticism shall be circulated and a fine of no more than 5,000 yuan shall be imposed. Any advertising business operator who violates the provisions of items (3) of Article 11 of the Regulation shall be fined up to 1,000 yuan. Where an advertising business operator provides a client with illegal or false certificates, a notice of criticism shall be circulated, a fine of no more than 5, 000 yuan shall be imposed and the operator shall bear joint and several liabilities. Article 25. Where an advertising business operator violates the provisions of Article 12 of the Regulation, a notice of criticism may be circulated, the illegal proceeds, if any, may be confiscated and a fine of no more than 3,000 yuan may be imposed, depending on the seriousness of the case in question. If false advertising results, the operator shall be responsible for issuing an amended advertisement. Whoever brings damage or losses to users or consumers shall bear joint and several liabilities. Article 26. If anyone violates the provisions of Article 13 of the Regulation by illegally displaying or posting advertisements, the illegal proceeds, if any, shall be confiscated, a fine of no more than 5,000 yuan shall be imposed and a time limit shall be specified for the dismantling and removal of the offending advertisements. In the event of failure to dismantle and remove such an advertisement within the specified time limit, the dismantling and removal of the advertisement shall be enforced, and the costs incurred therefrom shall be borne by the party who displayed or posted the advertisement. Article 27. Where the provisions of Articles 14 or 15 of the Regulation are violated, a notice of criticism may be circulated, an order may be issued to rectify the situation within a specified time limit, the illegal proceeds, if any, may be confiscated and a fine of no more than 5,000 yuan may be imposed, depending on the seriousness of the case in question. Article 28. The present Detailed Implementing Rules shall come into force as of January 1, 2005. |
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