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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II MOVIE PRODUCTION CHAPTER III MOVIE DISTRIBUTION AND PROJECTION CHAPTER IV MOVIE IMPORT AND EXPORT CHAPTER V SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. These Provisions are formulated in accordance with the "Law of the People's Republic of China on Chinese-foreign Equity Joint Ventures", "Law of the People's Republic of China on Chinese-foreign Cooperative Joint Ventures" and the "Regulations on the Administration of Movies" in order to bring non-government sectors into full play to accelerate the development of movie industry, cultivate market subjects, regulate market access, reinforce the overall strength and competitiveness of the movie industry, promote the flourishing of socialist movie industry, and satisfy the people's demands in their spiritual and cultural lives. Article 2. These Provisions shall apply to the administration of qualification access for companies, enterprises and other economic organizations inside China to operate movie production, distribution, projection, import and export, and for overseas companies, enterprises and other economic organizations to participate in the operation of movie production and projection. Article 3. The state applies a permit system to the operation qualifications for movie production, distribution, projection, import and export. Article 4. The State Administration of Radio, Film and Television (hereinafter referred to SARFT) shall be the national administrative department for operation qualification access in the industry of movie production, distribution, projection, import and export. CHAPTER II MOVIE PRODUCTION Article 5. The state permits companies, enterprises and other economic organizations inside China (excluding foreign-funded enterprises) to establish movie production companies. A company, enterprise or other economic organization inside China that applies to establish a movie production company shall file an application to SARFT. (1) Where two or more companies, enterprises or other economic organizations inside China (excluding foreign-funded enterprises) which have obtained the "Permit for Movie Production" intend to jointly establish a movie production company, the conditions and procedures for application are as follows: 1. The registered capital of the movie production company shall be no less than RMB 1 million Yuan; and 2. An application letter, the contract, the articles of association, and a photocopy of the business license of each party issued by the administration for industry and commerce, and the notice on pre-ratification of the company's name, shall be submitted. (2) A company, enterprise or other economic organization inside China (excluding foreign-funded enterprise) that has not obtained the "Permit for Movie Production" must, when shooting the film for the first time, establish a movie and television culture company, which shall apply for the "Permit for Film Production (for Single Film)". The conditions and procedures for obtaining the "Permit for Film Production (for Single Film)" are as follows: 1. All various movie and television culture entities registered in the administration for industry and commerce at the prefecture (city) level or above are qualified for obtaining the "Permit for Film Production (for Single Film)"; 2. An application letter, a photocopy of the business license issued by the administration for industry and commerce, a proof on the sources of funds for producing the film, the screenplay of the film to be produced (outline of the story) shall be submitted in triplicate; 3. SARFT shall, within 20 working days, examine the production qualification under application and the film screenplay (outline of the story). If they are examined to be qualified, a "Permit for Film Production (for Single Film)" shall be issued. The applicant shall bring the approval document issued by SARFT to go through the relevant procedures in the local administration for industry and commerce. If, however, SARFT does not grant the approval, it shall reply in writing to explain the reason thereof; 4. An entity that has obtained the "Permit for Film Production (for Single Film)" shall have the right to produce a film for only once. The producer may produce the film either independently or jointly with other production entities (including movie and television culture entities); and 5. The "Permit for Film Production (for Single Film)" shall be subject to a system of filing one application for each film concerned. (3) The conditions and procedures for a company, enterprise or other economic organization inside China (excluding foreign-funded enterprises), which has obtained the "Permit for Film Production (for Single Film)", to apply to independently or jointly establish a movie production company are as follows: 1. It has invested in shooting two or more films in the form of "Permit for Film Production (for Single Film)"; 2. Its registered capital shall be no less than RMB 1 million Yuan; 3. The application letter, its business license issued by the administration for industry and commerce (for joint establishment of a movie production company, the contract, articles of association, a photocopy of each party's business license issued by the administration for industry and commerce shall be provided in addition), and the notice on pre-ratification of the company's name shall be submitted; and 4. The "Permit for Film Production (for Single Film)" and the "Permit for Public Projection of Films", by which it has invested in producing the two films, and other relevant documents shall be submitted. (4) To an applicant meeting the requirements in Items (1) and (3), SARFT shall issue the "Permit for Movie Production" within 20 working days. The applicant shall bring the approval document issued by SARFT to go through the relevant procedures in the local administration for industry and commerce, and shall report to SARFT for archival purposes. If, however, SARFT does not grant the approval, it shall reply in writing to explain the reason thereof. Article 6. A company, enterprise or other economic organization inside China (hereinafter referred to the Chinese party) is permitted to establish a movie production company (hereinafter referred to joint venture company) with an overseas company, enterprise or other economic organization (hereinafter referred to the foreign party) in the form of equity joint venture or cooperative joint venture. To apply for establishing a joint venture company, the Chinese party shall file an application to SARFT. The conditions and procedures for application are as follows: (1) The Chinese party has obtained the "Permit for Movie Production" or two "Permits for Film Production (for Single Film)"; (2) The registered capital of the joint venture company shall be no less than RMB 5 million Yuan; (3) The proportion of foreign capital among the registered capital shall not exceed 49%; (4) If an applicant meets the requirements in Items (1) through (3), the Chinese party shall submit to SARFT the application letter concerning the project, the feasibility study report, the contract, the articles of association, the registration certificate (or identity certificate) of each party to the joint venture, the credit standing proof, and the notice on pre-ratification of the company name, etc. SARFT shall verify such documents in accordance with the law. If the applicant is verified to be qualified, SARFT shall issue the ratification document and the "Permit for Movie Production"; (5) If an applicant meets the requirements in Items (1) through (4), the Chinese party shall submit the ratification document issued by SARFT and the documents listed in Item (4) of this Article to the Ministry of Commerce for approval. The Ministry of Commerce shall lawfully make a decision on whether to approve the application or not. If the application is approved, the "Approval Certificate for the Foreign-funded Enterprise" shall be issued to the applicant. If, however, it is not approved, the Ministry of Commerce shall reply in writing to state the reason thereof; and (6) The applicant shall bring the approval documents of SARFT and the Ministry of Commerce to go through the relevant procedures in the local administration for industry and commerce. Article 7. The movie production companies that have obtained the "Permit for Movie Production" in accordance with Article 5 and Article 6 of these Provisions shall enjoy rights and assume obligations equal to those of state-owned movie production entities in accordance with the "Regulations on the Administration of Movies". Article 8. A company, enterprise or other economic organization inside China (excluding foreign-funded enterprise) is permitted to establish a movie technology company, to reform basic facilities and technical equipment for movie production and projection. The conditions and procedures for application are as follows: (1) Its registered capital shall be no less than RMB 5 million Yuan; (2) The application letter, its business license issued by the administration for industry and commerce (for joint establishment of a movie technology company, the contract, articles of association, a photocopy of each party's business license shall be provided in addition), and the notice on pre-ratification of the company's name shall be submitted; and (3) If an applicant meets the requirements in Items (1) and (2), it shall bring the approval document issued by SARFT to go through the relevant procedures at the local administration for industry and commerce, and submit it to SARFT for archival purposes. If, however, SARFT does not grant the approval, it shall reply in writing to state the reason thereof. Article 9. A company, enterprise or other economic organization inside China (hereinafter referred to the Chinese party) is permitted to establish a movie technology company with an overseas company, enterprise or other economic organization (hereinafter referred to the foreign party) in the form of equity joint venture or cooperative joint venture, and to reform basic facilities and technical equipment for movie production and projection. The conditions and procedures for application are as follows: (1) The company's registered capital shall be no less than RMB 5 million Yuan; (2) The proportion of foreign capital among the registered capital shall not exceed 49%, and the shares may be controlled by foreign capital in the provinces and cities approved by the state; (3) If an applicant meets the requirements in Items (1) and (2), the Chinese party shall submit to SARFT the application letter concerning the project, the feasibility study report, the contract, the articles of association, the registration certificate (or identity certificate) of each party to the joint venture, the credit standing proof, the notice on pre-ratification of the company's name, etc. SARFT shall verify such documents in accordance with the law. If the applicant is verified to be qualified, SARFT shall issue the ratification document; (4) If an applicant meets the requirements in Items (1) through (3), the Chinese party shall submit the ratification document issued by SARFT and the documents listed in Item (3) of this Article to the Ministry of Commerce for approval. The Ministry of Commerce shall make a decision on whether to approve the application or not in accordance with the law. If the application is approved, the "Approval Certificate for the Foreign-funded Enterprise" shall be issued to the applicant. If, however, it is not approved, the Ministry of Commerce shall reply in writing to state the reason thereof; and (5) The applicant shall bring the approval documents of SARFT and the Ministry of Commerce to go through the relevant procedures in the local administration for industry and commerce. CHAPTER III MOVIE DISTRIBUTION AND PROJECTION Article 10. The companies, enterprises and other economic organizations inside China (excluding foreign-funded enterprises) are encouraged to establish companies exclusively operating the distribution of domestically produced films. The conditions and procedures for application are as follows: (1) The registered capital shall be no less than RMB 500,000 Yuan; (2) The applicant has been entrusted by a movie production entity to have represented the distribution of two movies or has been entrusted by a TV play production entity to have distributed two TV plays; (3) An application letter, a photocopy of the business license issued by the administration for industry and commerce, the notice on pre-ratification of the company's name, the proof on being entrusted to represent the distribution of movies and TV plays, and other relevant documents shall be submitted; and (4) If the applicant meets the requirements in Items (1) through (3) and applies to SARFT for establishing a company exclusively operating the distribution of domestically produced films, SARFT shall, within 20 working days, issue the "Operation Permit for Movie Distribution" which permits the distribution of domestically produced films throughout the country. If the applicant applies to the local movie administration department at the provincial level for establishing a company exclusively operating the distribution of domestically produced films, the said local movie administration department shall, within 20 working days, issue the "Operation Permit for Movie Distribution" of the province (autonomous region, or municipality directly under the Central Government) which permits exclusive operation of domestically produced films in this province (autonomous region, or municipality directly under the Central Government). The applicant shall bring the approval document issued by the movie administration department to go through the relevant procedures in the local administration for industry and commerce. If, however, the approval is not granted, a written reply stating the reason thereof shall be issued to the applicant. Article 11. SARFT shall, in accordance with the relevant provisions on annual assessment of distribution and projection of domestically produced films, make annual assessment on the companies having obtained the "Operation Permit for Movie Distribution". Article 12. The film cinema circuit companies are permitted to be integrated in either a close or a loose type. They are encouraged to be re-integrated on a trans-provincial film cinema circuit basis and in compliance with the principle of administration on by one. It is not permitted to entirely merge film cinema circuits by administration areas. Integration of film cinema circuits shall be submitted to SARFT for approval. The companies, enterprises and other economic organizations inside China (excluding foreign-funded enterprises) are encouraged to invest in the existing film cinema circuit companies or invest in establishing film cinema circuit companies independently: (1) In the event of investment in an existing film cinema circuit company in the form of participation with shares, the share participant must, within three years, invest no less than RMB 30 million Yuan in building up or rebuilding cinemas in this film cinema circuit. In the event of investment in an existing film cinema circuit company in a share-control form, the share controller must, within three years, invest no less than RMB 40 million Yuan in building up or rebuilding cinemas in the film cinema circuit. In the event of independent establishment of a film cinema circuit company within the province or one nationwide, the establisher must, within three years, invest no less than RMB 50 million Yuan in building up or rebuilding cinemas in the film cinema circuit; (2) The establishment of a film cinema circuit company within a province (autonomous region, or municipality directly under the Central Government) shall be approved by the movie administration department under the people's government of the province, autonomous region, or municipality directly under the Central Government within 20 working days, and be reported to SARFT for archival purposes. The establishment of a trans-provincial film cinema circuit company shall be approved by SARFT within 20 working days. The applicant shall bring the approval document issued by the movie administration department to go through the relevant procedures in the local administration for industry and commerce. If, however, SARFT (or the said administration department) does not grant the approval, it shall reply in writing to state the reason thereof. Article 13. The companies, enterprises and other economic organizations inside China (excluding foreign-funded enterprises) are encouraged to establish movie distribution and projection cinema circuits for juveniles and children: (1) Any applicant who has concluded film supply agreements with no less than 20 high schools, elementary schools, juveniles' palaces, children's activities centers, cinemas, theaters, auditoriums, etc. within the province (autonomous region, or municipality directly under the Central Government) may apply to the local movie administration department at the provincial level to establish a movie distribution and projection cinema circuit for juveniles and children within the province, autonomous region, or municipality directly under the Central Government; (2) Any applicant who has concluded film supply agreements with no less than 30 high schools, elementary schools, juveniles' palaces, children's activities centers, cinemas, theaters, auditoriums, etc. in different provinces, autonomous regions, or municipalities directly under the Central Government may apply to SARFT to establish a movie distribution and projection cinema circuit for juveniles and children which covers the said different provinces, autonomous regions, or municipalities directly under the Central Government; (3) The establishment of a film cinema circuit company within the province, autonomous region, or municipality directly under the Central Government shall be approved by the movie administration department under the local people's government of the province, autonomous region, or municipality directly under the Central Government within 20 working days, and be reported to SARFT for archival purposes. The establishment of a trans-provincial film cinema circuit company shall be approved by SARFT within 20 working days. The applicant shall bring the approval document issued by the movie administration department to go through the relevant procedures in the local administration for industry and commerce. If, however, SARFT (or the involved movie administration department) does not grant the approval, it shall reply in writing to state the reason thereof. Article 14. The companies, enterprises, other economic organizations and individuals inside China are encouraged to, in accordance with the "Regulations on the Administration of Movies", operate movie distribution and projection business in various forms in rural areas throughout the country, as well as movie projection business in urban communities and schools. Article 15. The companies, enterprises, other economic organizations and individuals inside China are encouraged to investing in building up and rebuilding cinemas. Whoever intends to operate movie projection business must apply to the local movie administration department at the county level or above for approval, and go through the relevant procedures in the local administration for industry and commerce. The foreign-funded cinemas shall be administered in accordance with the "Interim Provisions on the Administration of Foreign-funded Cinemas". CHAPTER IV MOVIE IMPORT AND EXPORT Article 16. The import of movies shall be exclusively operated by movie import enterprises approved by SARFT. The distribution of imported movies nationwide shall be carried out by the distribution companies which are approved by SARFT and which have right to distribute imported movies nationwide. Article 17. The film production entities are encouraged to export in various channels domestically produced films for which the "Permit for Public Projection of Films" has been obtained. CHAPTER V SUPPLEMENTARY PROVISIONS Article 18. The "Permits for Movie Production" and "Operation Permits for Movie Distribution" issued by SARFT shall be subject to a system of inspection every other year. The local movie administration departments shall, pursuant to their administrative power, apply an annual inspection system to the issued "Operation Permits for Movie Distribution" and "Operation Permits for Movie Projection". Article 19. Those matters not covered by these Provisions shall be handled in accordance with the relevant provisions in the "Regulations on the Administration of Movies". Article 20. The interpretation of these Provisions shall remain with SARFT and the Ministry of Commerce. Article 21. These Provisions shall come into force on November 10, 2004. The "Interim Provisions on the Access of Operation Qualifications for Movie Production, Distribution and Projection" promulgated by SARFT (No. 20 of SARFT), and the "Detailed Rules for the Implementation of the Qualification Certifying System for Obtaining the Permit for Film Production (for Single Film) (for Trial Implementation)" (No. 1483 [2001] of SARFT) shall be repealed simultaneously. |
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