Importing Genuine DVDs into China: Rules of the Game

What Products Are Covered?

Under the Procedures, the term "audio and video products" (AV products) includes audio tapes, video tapes, phonograph records, compact discs and video compact discs with recorded content. Specifically, the Procedures apply to any finished AV product imported from abroad and to AV products imported for the purposes of publication, dissemination by information network and other uses. Notably, they do not apply to certain AV products such as equipment instructions and special software that are imported or re-exported with machinery and equipment.

Content Restrictions

The Procedures contain an identical list of prohibited content to that appearing in many recent Chinese regulations governing publishing, advertising and other forms of media. Importers of audio-visual products should be mindful of China's content restrictions. For example, content that opposes the basic principles of the Chinese constitution and is seen as harming the unity or sovereignty of the state or its territorial integrity is prohibited. Readers should bear in mind that sometimes Customs officials have seized products that contain seemingly innocuous references to Taiwan or other sensitive issues.

Licensing

In order to control the import of such products, the Procedures provide for an import licensing system, which stipulates that the import of AV products must be carried out by units or enterprises that have been authorized by the MOC. Under the Procedures, no unit or individual may publish, duplicate, distribute by means of wholesale or retail, rent, screen for commercial purposes or disseminate through an information network any AV products that have not been approved for import by the MOC.

The importing enterprise must submit the product to the MOC for examination of the content. In addition, there is an onerous requirement to provide the programme samples and lyrics in both Chinese and the relevant foreign language. Other documents such as the draft of the import agreement must also be submitted to the MOC.

The Procedures give the MOC 30 days to consider the application and grant approval. Approval is for one-time import only. Consequently, should there be a need to import another shipment of the DVDs, the application process would have to be undertaken again.

No Exemption for Freebies?

Interestingly, MOC approval is also required for AV products that are intended to be given away free at corporate events or exhibitions. It is not altogether clear whether MOC approval is required if only small quantities of the same product are to be imported and distributed free of charge. According to one Customs official, an individual can bring up to 200 AV products into China without being in breach of the Procedures. The permissibility of this may depend more on the discretion of a Customs official than on the letter of the law.

No Tampering Allowed

If the AV product is imported for publishing purposes, documents such as the copyright trade agreement (in both Chinese and the foreign language concerned), the original copyright certificate, the copyright authorization certificate, and the registration and certification documents issued by the state copyright certification authorities must also be included.

Enterprises handling import formalities for the master tape or disc or finished AV product are required to present to Customs the import approval document issued by the MOC. The Procedures set out various requirements for audio and video publication units that produce imported AV products. For example, they must not alter programme titles or edit programme content without prior authorization. In addition, in order to identify duly approved products, the MOC import approval document's number must be printed in a prominent place on the AV product and its packaging. The Procedures also provide that the language and wording used on imported AV products must comply with relevant state standards.

Conclusion

Although the new Procedures are designed to strengthen the licensing system and to protect intellectual property owners, the approval system for the import of AV products does pose some practical challenges for importers. Only importers approved by the MOC can be used, content screening must be done by the MOC in Beijing, the review process can take up to one month, and each time an import takes place, the importer must obtain a separate approval. These administrative overheads will no doubt add to the purchase price of an authentic DVD in China.

By Nancy Leigh, Baker & McKenzie