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MEASURES FOR THE ADMINISTRATION OF ARTWORK BUSINESS
 
(Order of the Ministry of Culture of the People's Republic of China (No. 29) , July 1, 2004: The Measures for the Administration of Artwork Business, which were adopted at the executive meeting of the Ministry of Culture on June 2, 2004, are hereby promulgated and shall be implemented as of July 1, 2004)
     
     
SUBJECT : ARTWORK BUSINESS
ISSUING DEPARTMENT : MINISTRY OF CULTURE OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 07/01/2004
IMPLEMENT DATE : 07/01/2004
LENGTH : 1,632 words
TEXT :
Article 1. The present Measures are formulated for the purposes of strengthening the management of the artwork businesses activities, protecting the legitimate rights and interests of the creators, business operators and consumers and promoting the sound development of artwork market.


Article 2. The term "artworks" mentioned in the present Measures refers to works of painting, calligraphy and seal cutting, sculpture and carving, artistic photography, installation art, industrial art and the limited replicas of the aforesaid works.

The term "artwork business activities" mentioned in the present Measures refers to the activities such as purchase, sale, lease, mounting, brokerage, assessment and consultancy of artworks, and commercial artwork exhibitions and competitions.


Article 3. The Ministry of Culture shall be responsible for the supervision and management of the artwork business activities of the whole country, formulating the development plan on artwork market and examining and approving the business activities of import and export of artworks.

The culture administrative departments of the people's government at the county level or above shall be responsible for the routine supervision and management of artwork business activities within their respective administrative areas.


Article 4 .Any one who intends to establish an entity for undertaking artwork business activities shall meet the following conditions:

(1) Having a business entity name;

(2) Having a fixed business place;

(3) Having funds adequate to its business scale;

(4) Having corresponding professionals of artwork business; and

(5) Other conditions prescribed in the laws or regulations.

An applicant who meets the above-mentioned conditions shall apply to the administrative department for industry and commerce at the county level or above where its domicile is located for a business license. It shall, within 15 days from the day when it obtains the business license, go through the record-keeping formalities in the culture administrative department at the county level or above where its domicile is located.


Article 5. Any one intends to establish an entity for undertaking business activities of import and export of artworks shall meet the following conditions:

(1) Having a business entity name;

(2) Having the corresponding organizational structure;

(3) Having a fixed business site;

(4) Having not less than 3 million yuan of registered capital;

(5) Having corresponding professionals of artwork business;

(6) Having a sound foreign exchange financial and accounting system;

(7) Having the capacity to bear civil liabilities; and

(8) Other conditions prescribed in the laws or regulations.

An applicant who meets the above mentioned conditions shall go through the formalities in accordance with the relevant provisions of the state on the import and export qualifications, and shall, within 15 days after it obtains the business license, go through the record-keeping formalities in the culture administrative department at the county level or above where its domicile is located.


Article 6. An enterprise or any other business entity that intends to undertake artwork business shall meet the relevant provisions of the present Measures, and shall, within 15 days after it has modified its registration, go through the formalities in the culture administrative department at the county level or above where its domicile is located.


Article 7. Any one who intends to undertake business activities of import and export of artworks shall file an application with the Ministry of Culture and submit the following materials to it:

(1) The qualification certification of the import and export entity;

(2) The places of source and destinations of the imported or exported artworks;

(3) List, pictures and introduction of imported or exported artworks; and

(4) Other materials required by the examination and approval department.


Article 8. The Ministry of Culture shall, within 15 working days from the day when it accepts an application, make a decision of approval or disapproval. If it approves, it shall issue to the applicant the approval documents. If it disapproves, it shall give an explanation. The entity making the application shall go through the entry/exit formalities upon the strength of the approval documents of the Ministry of Culture.


Article 9. A foreign-related commercial artwork exhibition shall be sponsored by the business entity with import and export qualification. The sponsoring entity shall, not later than 30 days before the exhibition is held, file and application with the provincial culture administrative department and submit the following materials to it:

(1) The qualification certification of the sponsoring entity;

(2) A plan on the activities of the exhibition;

(3) The contracts or agreements concluded between the sponsoring entity and other relevant entities;

(4) Budget of funds and certification of fund sources;

(5) An agreement on use of place;

(6) List, pictures and introduction of the overseas artworks to be exhibited; and

(7) Other materials required by the examination and approval department.


Article 10. The provincial culture administrative department shall put forward the preliminary examination opinion within 15 working days from the day it accepts an application. If it approves the application, it shall report it to the Ministry of Culture for examination and approval. If it disapproves, it shall give an explanation. The Ministry of Culture shall make a decision of approval or disapproval within 15 working days from the day when it receives the preliminary examination opinion of the provincial culture administrative department. If it disapproves, it shall give an explanation to the applicant. The entity making the application shall go through the entry/exit formalities upon the strength of the approval documents of the Ministry of Culture.


Article 11. The Ministry of Culture shall protect contemporary topnotch artworks. The protection rules shall be separately formulated.


Article 12. No one may undertake business of artworks that have any of the following contents:

(1) Opposing the basic principles determined in the Constitution;

(2) Endangering the unity of the nation, sovereignty or territorial integrity;

(3) Divulging secrets of the state, endangering national security or impairing the honor or benefits of the state;

(4) Inciting nationality hatred or discrimination, undermining the solidarity of the nationalities, or infringing upon nationality customs and habits;

(5) Propagating or spreading evil cults or superstitions;

(6) Disturbing the public order or destroying the public stability;

(7) Propagating obscenity, gambling, violence or instigating crimes;

(8) Insulting or slandering others, or infringing upon the lawful rights and interests of others;

(9) Endangering public ethics or the fine folk cultural traditions; or

(10) Other contents prohibited by the laws, administrative regulations and provisions of the state.


Article 13. An artwork business entity shall abide by the following provisions:

(1) Complying with the relevant laws and regulations of the state, accepting the guidance, supervision and inspection of the culture administrative departments;

(2) Having a sound business management system;

(3) Having proof of the legitimate source of the artwork

(4) Operating artworks by giving clear price markings; and

(5) Paying taxes in pursuance of the law.


Article 14. No artwork business entity may undertake business of artworks usurping the name of others.

A professional who undertakes brokerage of artworks may not simultaneously work for two or more intermediary artwork service entities.


Article 15. A culture administrative department at the county level or above shall establish credit archives for the artwork business entities. It shall record the information about the enterprises' service commitments, business operations and complaints of consumers, and shall regularly publicize the said information to the general public.


Article 16. Any one who, without approval, carries out business activities of artwork import and export or holds a foreign-related commercial artwork exhibition by violating Article 7 or Article 9 of the present Measures, shall be ordered to get right by the culture administrative department at the county level or above, and shall be fined 5,000 yuan up to 30,000 yuan.


Article 17. As for any one who violates Article 12 of the present Measures, the culture administrative department at the county level or above shall confiscate the illegal gains from artworks, impose upon it a fine of 5,000 yuan up to 30,000 yuan. If the circumstance is serious, it shall propose to the department for industry and commerce to revoke its business license.


Article 18. Any one, who commits any of the following acts by violating the present Measures, shall be ordered to get right, shall be given a warning in light of the seriousness of the circumstance or shall be fined 2,000 yuan up to 10,000 yuan by the culture administrative department at the county level or above:

(1) Failing to go through the record-keeping formalities required by the present Measures;

(2) Failing to establish a sound business management system;

(3) Failing to show the legal sources of its artworks;

(4) Failing to attach clear price markings to the artworks operated by it; or

(5) Simultaneously working for two or more intermediary artwork service entities that undertake brokerage of artworks.


Article 19. Where an artwork business entity infringes upon the copyright of a copyright holder, it shall be punished by the copyright administrative department in accordance with the Copyright Law of the People's Republic of China. If any crime is constituted, it shall be subject to criminal liabilities.


Article 20. When a culture administrative department makes a decision of punishment under the present Measures, it shall issue an administrative punishment decision. If the party concerned refuses to accept the administrative punishment decision, it may, in accordance with the law, apply for administrative reconsideration or bring a lawsuit in the people's court. If the party concerned neither applies for reconsideration within the statutory time limit, nor brings a lawsuit in the people's court while refusing to fulfill the punishment decision, the organ that makes the punishment decision shall apply to the people's court for mandatory enforcement.


Article 21. The power to interpret the present Measures shall remain with the Ministry of Culture.


Article 22. The present Measures shall be implemented as of July 1, 2004. The Measures for the Administration of Artwork Business promulgated on November 25, 1994 shall be abolished simultaneously.
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