State Administration for Industry and Commerce, Administration of Advertising Regulations Implementing Rules

Issued: November 30 2004
Effective: January 1 2005
Applicability: Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures and wholly foreign-owned enterprises applying to engage in advertising business should be handled in accordance with the Administration of Foreign-invested Advertising Enterprises Provisions; and with reference to the Administration of Advertising Regulations, these Implementing Rules and other related provisions (Article 5).

Main contents: The scope of administration specified in Article 2 of the Administration of Advertising Regulations includes: (1) the use of newspapers, periodicals, books, directories, etc., for the purpose of publishing advertisements; (2) the use of radio, television, film, video, slide shows, etc., for the purpose of showing advertisements; (3) the use of transport vehicles such as cars, vessels and aeroplanes, etc., for the purpose of placing, drawing and posting advertisements; and (4) the use of physical gifts for the purpose of advertising (Article 2). Apart from complying with conditions such as enterprise registration, enterprises applying to engage in advertising business should fulfil such conditions as: (1) having institutions and professionals who are responsible for conducting market surveys; (2) having management personnel who are familiar with advertising administration regulations, and staff who are responsible for the design, production and editing of advertisements; (3) having full-time finance and accounts personnel; and (4) having the ability to deal with advertising business for foreign investors in China, when applying to undertake or to act as agencies for foreign investors' advertisements in China (Article 3). The standard fee for an advertising agency is 15% of the advertising fee (Article 14). Domestic enterprises releasing advertisements outside China, foreign enterprises (organizations) and foreign nationals contracting and releasing advertisements in China, should appoint enterprises that are registered in China and are qualified to undertake advertising as agencies (Article 15).
Related legislation: State Council, Administration of Advertising Regulations, Oct 26 1987, CLP 1988 No.1 p33 and Administration of Foreign-invested Advertising Enterprises Provisions, Mar 2 2004, CLP 2004 No.4 p56