Ministry of Culture and Ministry of Foreign Trade and Economic Cooperation, Administration of Sino-foreign Cooperative Joint Audio and Video Products Distribution Enterprises Measures

Promulgated: December 10 2001
Effective: January 10 2002
Interpreting authority: Ministry of Culture and Ministry of Foreign Trade and Economic Cooperation
Applicability: These Measures apply to Sino-foreign cooperative audio and video products distribution enterprises established in the PRC. These enterprises refer to enterprises established by foreign enterprises, organizations or individuals (including those in Hong Kong, Macao or Taiwan) in cooperation with Chinese enterprises or other economic organizations in China for wholesale, retail or rental audio and video products businesses. "Audio and video products" means pre-recorded cassette tapes, videotapes, phonograph records, audio compact discs and video compact discs (Articles 2 and 22).

Main contents: The Measures provide that a Sino-foreign cooperative joint audio and video products distribution enterprise shall be at least 51% owned by the Chinese partner, shall have an operation term of not more than 15 years and is not allowed to import audio and video products (Articles 8 and 20). The Measures for establishing such an enterprise are: the Chinese partner shall submit an application to the cultural administrative department of the province, autonomous region or municipality directly under the central government where the proposed enterprise is to be located, who after preliminary examination shall forward the application to the Ministry of Culture for approval; if the application is approved, the Chinese partner shall apply to the administrative department of foreign trade and economic cooperation of the province, autonomous region or municipality directly under the central government where the proposed enterprise is to be located, who shall then forward the application to the Ministry of Foreign Trade and Economic Cooperation for approval; if the application is approved, as documented in a Foreign Investment Enterprise Approval Certificate, the Chinese partner shall obtain, on behalf of the proposed joint venture, an Audio and Video Products Business Permit from the Ministry of Culture; and finally the required industry and commerce registration shall be completed (Article 11). The Audio and Video Products Business Permit is subject to bi-annual review by the Ministry of Culture (Article 16).
Related legislation: PRC, Sino-foreign Cooperative Joint Venture Law (Revised), Oct 31 2000, CLP 2000 No.10 p4 and Administration of Audio and Video Products Regulations, Aug 25 1994, CLP 1995 No. 2 p22