(December 8, 2003 the Ministry of culture, the Ministry of Commerce released 28th) first in order to expand cultural exchanges and economic cooperation, strengthen the management of Sino-foreign cooperative audio-video products distributors, according to the People's Republic of China Chinese-foreign contractual joint ventures, and relevant laws and regulations on the management of audio-visual products Ordinance, these measures are formulated.
    Article in the People's Republic of China set up Sino-foreign cooperative audio-video products distributors, these measures shall apply.
    This way, the term Sino-foreign cooperative audio-video products distributors, refers to the foreign enterprises and other economic organizations or individuals (hereinafter referred to as the foreign partner) in accordance with the principle of equality and mutual benefit, and approved by the relevant departments of the Chinese Government, in China and Chinese enterprises or other economic organizations (hereinafter referred to as the Chinese partner) partnership engaged in the business of wholesale, retail and lease of audio and video products enterprises.
    Audio and video products in these measures, refers to the recording of the content of the audio tapes, video tapes, records, compact discs and laser discs, and so on.
    Third Sino-foreign cooperative audio-distribution enterprises must abide by the relevant laws and regulations, communication conducive to economic development and social progress of the ideological, moral, scientific, technical and cultural knowledge.
    Fourth Sino-foreign cooperative audio-video products distributors of legitimate businesses and the protection of the legitimate interests of all parties subject to Chinese law.
    Article fifth provincial authorized by the Ministry of culture and Ministry of Commerce and the Ministry of culture, the Ministry of Commerce cultural, commercial departments in charge of Sino-foreign cooperative audio-video products distributors, approving, and monitoring management.
    Local people's Governments at or above the county level cultural authorities and competent commercial departments in accordance with their respective responsibilities, responsible for the administration of Sino-foreign cooperative audio-video products distributors in the daily supervision and control.
    Article sixth Sino-foreign cooperative audio-distribution enterprises establishment and development must conform to the audiovisual market development plan.
    Section seventh for Chinese cooperation in the establishment of Sino-foreign cooperative audio-distribution enterprises and held foreign collaborators should have audio and video products distributors with the ability; should be able to independently assume civil liability, and no record in the three years prior to the application.
    Eighth article foreign cooperation audio points pin enterprise should meet following conditions: (a) has independent of corporate qualification; (ii) has national about established audio points pin enterprise of conditions; (three) has and business scale phase adapted of funds; (four) China cooperation who in cooperation enterprise in the by has of interests shall not below 51%; (five) cooperation term not over 15 years.
    Nineth Chinese-foreign cooperative audio distribution applies to engage in the audio chain operations and management through information network of audio and video products, shall, in accordance with the relevant national video chain and operate audio and video products through information network of regulations and approval procedures. Article tenth of Chinese partners in State-owned assets as conditions for cooperation, should be on the level of State-owned assets management Department, and according to the relevant provisions of the management of State-owned assets assessment, assessed by the State-owned assets Administration Department of organizations to assess the State-owned assets as conditions for cooperation.
    Assessment should be based on the relevant provisions of the State-owned assets management of State-owned assets Administration Department. 11th the establishment of Sino-foreign cooperative audio-video products distributors engaged in wholesale business of audio-visual products in accordance with the following procedures shall be followed: (a) the Chinese partners to the location of the proposed establishment of Sino-foreign cooperative audio-video products distributors of provinces, autonomous regions and municipalities directly under the cultural authorities apply, provinces, autonomous regions and municipalities directly under the culture Department of the examination and approval of the Ministry of culture for approval.
    Ministry of culture within 30 business days to approve or not to approve the decision shall not be approved, state the reason in writing. (B) the Chinese party within six months from the date of approval of the Ministry of culture, to the location of the proposed establishment of Sino-foreign cooperative audio-video products distributors of provinces, autonomous regions and municipalities directly under the Commerce Department in charge of the establishment of Sino-foreign cooperative audio distribution enterprise applications, Commerce authorities of provinces, autonomous regions and municipalities the examination and approval of the Ministry of Commerce for approval. Commerce in 30 working days to make a decision to approve or not to approve.
    Upon approval, the foreign invested Enterprise approval certificate issued; were rejected, state the reason in writing.
    (C) the receipt issued by the Ministry of Commerce of China for foreign-invested Enterprise approval certificate within 30th of, the Ministry of culture approved file and the foreign invested Enterprise approval certificate issued by the Department of Commerce proposed establishment of Sino-foreign cooperative audio-video products distributors of audio-visual products apply to the Ministry of culture of the operating permit.
    (D) Chinese partners to receive the audio operating license issued by the Ministry of culture within 30th of, the audio and video products business and the foreign-invested Enterprise approval certificate, in accordance with the provisions of business administration, and go through the registration formalities according to law, receive the business license.
    12th Chinese partners when the project application to the Ministry of culture shall submit the following documents: (a) project applications; application shall set forth the proposed establishment of a Sino-foreign cooperative audio-distribution company name, address, business scope, the sources and amount of inputs.
    (Ii) cooperation parties common prepared or recognized of project proposal or feasibility research report; (three) cooperation parties of license or registered registration proved file, and funding letter proved file and the statutory representative people of effective proved file; (four) (if China cooperation who to state-owned assets as cooperation conditions) State-owned assets management sector on China cooperation who intends input of State-owned assets of assessment report confirmed file; (five) Ministry of culture requirements provides of other material.
    13th article China cooperation who to Commerce proposed established application Shi should submitted following file: (a) established applications; (ii) cooperation parties common prepared or recognized and by Ministry of culture approved of project proposal or feasibility research report; (three) Ministry of culture on the cooperation project of project approved file; (four) by cooperation parties authorized representative signed of intends established foreign cooperation audio points pin enterprise of contract, and articles; (Five) (if China cooperation who to state-owned assets as cooperation conditions) State-owned assets management sector on China cooperation who intends input of State-owned assets of assessment report confirmed file; (six) cooperation parties of license or registered registration proved file, and funding letter proved file and the statutory representative people of effective proved file; (seven) intends established cooperation business enterprise name advance approved notice; (eight) cooperation parties consultations determine of cooperation Enterprise Chairman, and Deputy Chairman, and Director or joint management Committee Director, and Deputy Director, and
    List of members of, and (IX) other materials required by the Ministry of Commerce.
    14th major Sino-foreign cooperative audio-wholesale business change, including change investors, adjust the proportion of investors ' rights, change investment or conditions for cooperation, change management, change the scope of business life and the establishment of a branch shall be in accordance with the provisions of the present article 11th go through examination and approval procedures. Other changes of Sino-foreign cooperative audio-video products distributors, in accordance with the relevant provisions of the foreign-funded enterprises, reported to the Ministry of Commerce approval or for the record.
    Chinese and foreign cooperative audio-distribution change of legal address, legal representative, Chief Executive, the expiration of termination of business activities, should also be reported to the Ministry of culture for the record in the 30th.
    15th to set up Sino-foreign cooperative audio-video products distributors to engage in audio and video products retail and rental operations in accordance with the following procedures shall be followed: (a) the Chinese partners to the location of the proposed establishment of Sino-foreign cooperative audio-video products distributors apply to the provincial Culture Department, provincial cultural authorities within 30 days to approved or not approved by decision approved, state the reason in writing. (B) Chinese partners since the approval of the provincial cultural Department within six months from the date of the project, to be seat of the establishment of Sino-foreign cooperative audio-distribution company provincial Commerce Department in charge of the establishment of Sino-foreign cooperative audio-application for distributors, provincial Commerce authorities, within the 30 working days to approve or not approve decisions.
    Upon approval, the foreign invested Enterprise approval certificate issued; were rejected, state the reason in writing.
    (C) Chinese partners since the receipt issued by the provincial-leveled Commerce departments of the foreign-invested Enterprise approval certificate within 30th of, approved by provincial cultural authorities files and issued by the provincial-leveled Commerce departments of the foreign-invested Enterprise approval certificate be established Sino-foreign cooperative audio-video products distributors of audio-visual products apply to the provincial Culture Department of the trade license.
    (D) Chinese partners since obtaining the provincial Culture Department of audio-video products from the date of business license issued by the 30th, the audio business and the foreign-invested Enterprise approval certificate, in accordance with the provisions of business administration, and go through the registration formalities according to law, receive the business license.
    16th Chinese cooperation presented to the provincial Culture Department project should submit the following documents with the application: (a) the project applications; application shall set forth the proposed establishment of a Sino-foreign cooperative audio-distribution company name, address, business scope, the sources and amount of inputs.
    (Ii) cooperation parties common prepared or recognized of project proposal or feasibility research report; (three) cooperation parties of license or registered registration proved file, and funding letter proved file and the statutory representative people of effective proved file; (four) (if China cooperation who to state-owned assets as cooperation conditions) State-owned assets management sector on China cooperation who intends input of State-owned assets of assessment report confirmed file; (five) provincial culture competent sector requirements provides of other material.
    17th article China cooperation who to provincial business competent sector proposed established application Shi should submitted following file: (a) established applications; (ii) cooperation parties common prepared or recognized and by provincial culture competent sector approved of project proposal or feasibility research report; (three) provincial culture competent sector on the cooperation project of project approved file; (four) by cooperation parties authorized representative signed of intends established foreign cooperation audio points pin enterprise of contract, and articles; (E) (if the Chinese partners in State-owned assets as conditions for cooperation) intends to put the State-owned assets management departments of China's State-owned assets assessment report confirm the file;

    (Six) cooperation parties of license or registered registration proved file, and funding letter proved file and the statutory representative people of effective proved file; (seven) intends established cooperation business enterprise name advance approved notice; (eight) cooperation parties consultations determine of cooperation Enterprise Chairman, and Deputy Chairman, and Director or joint management Committee Director, and Deputy Director, and members of candidates list; (nine) provincial business competent sector requirements provides of other material.
    Article 18th Sino-foreign cooperative audio-retail and rental businesses and significant changes, including change investors, adjust the proportion of investors ' rights, change investment or conditions for cooperation, change management, change the scope of business life and the establishment of a branch shall be in accordance with the provisions of the present article 15th go through examination and approval procedures. Other changes of Sino-foreign cooperative audio-video products distributors, in accordance with the relevant provisions of the foreign-funded enterprises, provincial Commerce authorities approval or for the record.
    Chinese and foreign cooperative audio-distribution change of legal address, legal representative, Chief Executive, the expiration of termination of business activities, should also be in the 30th Provincial culture departments.
    Article 19th Sino-foreign cooperative audio-distribution enterprises must be within the approved scope of business, engaged in audio-visual products and business activities.
    Article 20th Sino-foreign cooperative audio-distribution enterprises shall not operate the national content of the prohibition of the dissemination of audio and video products shall operate non-audiovisual publishing entities and non-audiovisual unit of replication copies of audio and video products shall not operate without the approval of the Ministry of culture of imported audio and video products shall not operate to infringe upon copyrights of audio and video products.
    Article 21st Sino-foreign cooperative audio-distribution enterprises shall not engage in imports of audio-visual products.
    22nd without the approval of any establishment of Sino-foreign cooperative audio distributors or other ways to use foreign audiovisual products distribution business, by the relevant departments of the State shall be punished according to law, and to hold those responsible accountable.
    23rd China Hong Kong S.A.R., and Macau S.A.R. and Taiwan investors in other Chinese provinces, autonomous regions and municipalities to set up audio and video products distributors, in accordance with the measures implemented.
    24th article this way by the Ministry of culture and Ministry of Commerce is responsible for the interpretation.

    25th article this approach and its annexes shall enter into force on January 1, 2004, on December 10, 2001 the Ministry of culture, the Ministry of foreign trade and economic cooperation issued by the management of Sino-foreign cooperative audio-video products distributors repealed simultaneously. Annex: to promote Hong Kong, and Macau and mainland established more close trade relationship, encourages Hong Kong service provides who and Macau service provides who in mainland established audio points pin enterprise, according to state approved of Mainland and Hong Kong on established more close trade relationship of arrangements and Mainland and Macau on established more close trade relationship of arrangements, now on foreign cooperation audio points pin enterprise management approach
    Hong Kong service providers and Macao service providers to set up audio and video products distributors, the following special provisions: first, with effect from January 1, 2004, allows Hong Kong service suppliers in joint ventures in the Mainland and Macao service providers set up audio and video products distributors.
    II, Hong Kong service providers and Macao service providers can own a majority stake in the joint venture, but not more than 70%.
    Third, Hong Kong service providers and Macao service providers can have no more than 70% of rights and interests in the joint venture. Four Hong Kong service providers and Macao service providers set up cooperative audio-distribution enterprises in the Mainland according to other provisions of the implementation of the administrative measures for Sino-foreign cooperative audio-video products distributors.
    Hong Kong service provider joint venture investment in the Mainland and Macao service providers of audio-video products distributors other provisions referring to the management of Sino-foreign cooperative audio-video products distributors perform.
    Five, the special provisions in the Hong Kong service supplier and Macao service providers should comply with the Mainland and Hong Kong closer economic partnership arrangement with the Mainland and Macao closer economic partnership arrangement on the "service provider" definition and requirements of the relevant provisions.
                                                                                                                  Six, the special provisions of the Ministry of culture, the Ministry of Commerce in accordance with their respective functions and is responsible for the interpretation.