Laws of the People's Republic of China

(Promulgated 9 January 1988 by the State Administration for Industry and Commerce)

   Article 1. These Detailed Implementing Rules are formulated in accordance with the provisions of Article 21 of the Regulations for the Control of Advertising (hereinafter referred to as the Regulations).

   Article 2. The administrative scope as prescribed by Article 2 of the Regulations shall include:

(1) advertisements printed in newspapers, periodicals, books, name registries, etc.;

(2) advertisements broadcast on radio or television or through films, videos, slide shows, etc.;

(3) advertisements on buildings in streets, public squares, airports, railway stations, wharves, etc., or on billboards in vacant spaces, or using neon lights, electronic display boards, display windows, lanterns, walls, etc.;

(4) advertisements displayed or posted inside or outside such places as theatres, stadiums, cultural centres, exhibition halls, guest houses, restaurants, sightseeing and amusement centres, markets, etc.;

(5) advertisements displayed, drawn or posted on vehicles, vessels, aeroplanes or other means of transport;

(6) publicity material on various types of products which is sent through the mail;

(7) advertising publicity gained through the presentation of samples of products;

(8) advertising using other forms of media or other means to publish, broadcast, display or post advertisements.

   Article 3. An enterprise applying for approval to engage in advertising operations, in addition to meeting enterprise registration requirements, etc., shall also be required to meet the following conditions;

(1) establish an organisation responsible for conduction market surveys and provide the relevant specialised personnel;

(2) provide administrative personnel familiar with advertising control legislation and personnel able to undertake the design, production and editing of advertisements;

(3) provide full-time accounting personnel;

(4) have the ability to provide the relevant services if applying to undertake contract work for or to act as agent for foreign businessmen who come to China to advertise.

   Article 4. A public institution applying to engage in advertising operations part-time shall meet the following conditions:

(1) have the means to directly issue advertisements and the technology and equipment required for the design and production of advertisements;

(2) provide administrative personnel and editorial personnel familiar with advertising control legislation;

(3) establish an independent accounting system, to be staffed by full-time or part-time accounting personnel.

   Article 5. If a Sino-foreign joint equity enterprise or a Sino-foreign co-operative enterprise applies to engage in advertising operations, the matter shall be handled in accordance with the Regulations, these Detailed Implementing Rules and other relevant regulations.

   Article 6. If an individual industrial or commercial household operation applies to engage in advertising operations, in addition to meeting the requirements prescribed in the Provisional Regulations governing the Administration of Individual Industrial and Commercial Household Operations in Towns and Villages, the individual shall also be required to be skilled in the specialised field of advertising, to be familiar with advertising control legislation and to qualify through an examination.

   Article 7. In accordance with be provisions of Article 6 of the Regulations, the examination, approval and registration of an advertising operator shall be conducted as follows:

(1) A national advertising enterprise or a Sino-foreign joint equity enterprise or Sino-foreign co-operative enterprise wanting to engage in advertising operations shall apply to the State Administration for Industry and Commerce and, subject to verification and approval of its application, shall be issued with a business licence of the People's Republic of China.

A regional advertising enterprise shall apply to its local municipal or county administration for industry and commerce and shall be issued with a corporate business licence by the said administration, subject to verification and approval of the application by the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality or an authorised municipal administrative body under provincial jurisdiction.

(2) A public institution wanting to engage part-time in advertising activities shall apply to its local municipal or county administration for industry and commerce and shall be issued with an advertising permit by the said administration, subject to verification and approval of the application by the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality or an authorised municipal administrative body under provincial jurisdiction.

A public institution engaged part-time in advertising activities, which wishes to undertake direct advertising work for foreign businessmen who come to China to advertise, shall apply to the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality and shall be issued with an advertising licence of the People's Republic of China by the said administration, subject to its inspection of the application and subsequent examination and approval of the application by the State Administration for Industry and Commerce.

(3) An independent industrial or commercial household operation wanting to engage in advertising activities shall apply to its local municipal or county administration for industry and commerce and shall be issued with a business licence by the said administration, subject to verification and approval of the application by the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality or an authorised municipal administrative body under provincial jurisdiction.

(4) A unit wanting to engage in advertising operations within a local area for a short period shall apply to the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality or an authorised municipal administrative body under provincial jurisdiction and shall be issued with a temporary advertising licence, subject to its examination and approval of the application. A unit wanting to engage in advertising operations nationally for a short period shall apply to the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality and shall be issued with a temporary advertising licence by the said administration, subject to approval of the application by the State Administration for Industry and Commerce.

   Article 8. A public institution engaging in part-time advertising activities may, subject to examination and approval, act as agent for other advertising operations which use similar mediums.

   Article 9. If an advertising client applies to use a medium other than radio, television or the print media to advertise cigarettes, prior approval must be obtained from the administration for industry and commerce of the relevant province, autonomous region, directly administered municipality or authorised municipal administrative body under provincial jurisdiction.

If an advertising client applies to advertise any of the high quality spirits which have received any of the various national, department or provincial level awards, prior approval must be obtained from the administration for industry and commerce of the relevant province, autonomous region, directly administered municipality or authorised municipal administrative body under provincial jurisdiction. When using the print or broadcast media to advertise alcoholic beverages of up to 39 per cent (including 39 per cent) alcohol, the specific amount must be clearly stated.

   Article 10. In accordance with the provisions of Article 7 of the Regulations, a client applying for the issue of an advertisement shall present the appropriate certificate as follows:

(1) An industrial or commercial enterprise or an independent industrial or commercial household operation shall present for inspection a copy of its corporate business licence or business licence respectively.

(2) An administrative organ, social group or public institution shall present the certificate of its respective unit.

(3) An individual shall present a certificate issued by his/her local township, village, subdistrict office or unit.

(4) A national enterprise, Sino-foreign joint equity enterprise, Sino-foreign co-operative enterprise or sole foreign investment enterprise shall present for inspection its business licence of People's Republic of China, issued by the State Administration for Industry and Commerce.

(5) A resident representative office of a foreign enterprise shall present for inspection its certificate of registration as the resident representative office in china of a foreign enterprise.

   Article 11. When applying to advertise a commodity, a quality certificate verifying that the commodity complies with State standards, department standards (specialised standards) or enterprise standards shall be presented for inspection in accordance with the provisions of item (1) of Article 11 of the Regulations.

   Article 12. When applying to advertise a commodity as an award winner, a certificate attesting to the granting of the award and issued by a competent administrative department at the level of province, autonomous region, directly administered municipality or above shall be presented in accordance with the provisions of item (2) of Article 11 of the Regulations.

   Article 13. In accordance with the provisions of item (7) of Article 11 of the Regulations, the relevant certificates shall be presented when applying to release any of the following types of advertisements:

(1) If advertising the publication of a newspaper or periodical, a registration certificate verified by the news publishing organ of the relevant provincial, autonomous region or directly administered municipality shall be presented.

(2) If advertising the publication of a book, a certificate issued by the relevant news publishing organ approving the establishment of the publishing house shall be presented.

(3) If advertising any of the various types of artistic and cultural performances, a certificate authorising the performance, issued by the department in charge of cultural affairs at local county level or above, shall be presented.

(4) If a university or college is advertising to recruit students, a certificate issued by the State Education Commission or the education administrative department of the relevant province, autonomous region or directly administered municipality, authorising the release of such advertisements through the press and broadcast media, shall be presented. In the case of polytechnic schools, a certificate issued by the local district (municipal) education administrative department, authorising the release of such advertisements through the print and broadcast media, shall be presented. If advertising to recruit foreigners to study in China, it shall be necessary to present a certificate issued by the State Education Commission authorising such advertising through the press and broadcast media.

(5) If advertising any of the various after-school supplementary educational classes, recruiting students for specialised technical training classes or advertising to recruit workers or to invite applications for employment positions, a certificate issued by an education administrative department or labour and personnel department at county level or above, authorising the release of such advertisements through the press and broadcast media, shall be presented.

(6) If advertising individual medical practices, a certificate approving the practitioner, issued by the relevant health administration department at county level or above, and a certificate verifying and approving the content of the advertisement shall be presented.

(7) If advertising pharmaceuticals or related products, a pharmaceutical advertising examination and approval list verified by a health administration department of the relevant local province, autonomous region or directly administered municipality shall be presented.

(8) If advertising veterinary medicines, a certificate of approval issued by an agriculture, animal husbandry and fisheries administrative organ of the relevant province, autonomous region or directly administered municipality shall be presented.

(9) If advertising agricultural chemicals, an agricultural chemical advertising examination and approval list, examined and approved by the Ministry of Agriculture, Animal Husbandry and Fisheries or the drug inspection or plant protection department of the agriculture, animal husbandry and fisheries office (bureau) of the relevant province, autonomous region or directly administered municipality, shall be presented.

   Article 14. In accordance with the provisions of item (8) of Article 11 of these Regulations, the relevant certificates shall be presented when applying to use the print or broadcast media to publicise advertisements of the following content:

(1) If advertising foodstuffs, a foodstuffs advertising examination and approval list approved by the foodstuffs hygiene supervisory body at the local regional (municipal) level or above shall be presented.

(2) If advertising any of the various display and sales exhibitions, order placement meetings, trade fairs, etc., a certificate of approval issued by the department in charge of the organising unit shall be presented.

(3) If advertising to encourage bank savings deposits, a certificate from a higher level authority of the People's Bank shall be presented.

(4) If advertising notices or statements concerning individuals, a certificate issued by the person's unit, township (village) people's government or subdistrict office shall be presented.

   Article 15. When a client requests an advertisement for publishing, broadcasting, displaying or posting, it shall present the original of the certificate required or a duplicate copy to which the original certificate issuing organ has fixed its signature or seal and which has been notarised by a public notary office.

   Article 16. In accordance with the provisions of Article 15 of the Regulations, agency fees for undertaking domestic advertising work shall be 10% of the advertising costs. Agency fees of 15% of the advertising costs shall be paid when undertaking advertising work for foreign businessmen who come to China to advertise.

   Article 17. If a foreign enterprise (organisation) or person of foreign nationality needs to hire a contractor to produce and release an advertisement, it shall commission an advertising operator authorised to provide advertising services to foreign businessmen to undertake the work.

   Article 18. In accordance with the provisions of Article 12 of the Regulations, when acting as an agent for or as the issuer of an advertisement, the agent or issuer shall be responsible for inspecting the content of the advertisement and relevant certificates and shall have the right to request the advertising client to provide any other necessary certificates and documents. An advertising agent or issuer shall not be permitted to continue to handle work for an advertisement if the certificate is found to be illegal or incomplete or if the content of the advertisement is found to be false.

An advertising operator shall establish a filing system to maintain records of advertising contract registrations, reviews and services rendered. An advertising service file shall be kept for a minimum of one year.

   Article 19. If an advertising client violates the provisions of Article 3 or item (5) of Article 8 of the Regulations by using an advertisement to mislead or cheat users and consumers, the client shall be ordered to issue an amended advertisement within a corresponding area and, depending on the seriousness of the case, shall be fined between two and five times the cost of the advertisement, as well as held responsible for compensation users and consumers for any resultant losses.

If an advertising operator assists a client to practise fraud, a notice of criticism may be circulated, any illegal earnings confiscated and a fine of between two and five times the cost of the advertisement may be imposed, depending on the seriousness of the case. If such offences continue, the advertising operator may be ordered to suspend business operations while the matter is rectified and may have its business licence or advertising permit revoked. Joint and several liability shall be borne by the operator for any resultant losses incurred by users and consumers.

The cost of issuing an amended advertisement shall be borne jointly by the advertising client and advertising operator.

   Article 20. If the provisions of Article 4 or item (6) of Article 8 of the Regulations are violated, a notice of criticism may be circulated, any illegal earnings may be confiscated, a fine of up 5, 000 yuan may be imposed or an order given to suspend operations while rectification is undertaken, depending on the seriousness of the case.

   Article 21. If an advertising operator violates the provisions of Article 6 of the Regulations by engaging in advertising activities without the necessary certification or by exceeding its approved scope of operations, its illegal activities shall be banned, any illegal earnings shall be confiscated and a fine of up to 5,000 yuan shall be imposed.

   Article 22. If an advertising client violates the provisions of Article 7 of the Regulations, a notice of criticism may be circulated and a fine of up to 5,000 yuan may be imposed, depending on the seriousness of th case.

   Article 23. If the provisions of items (1), (2), (3) or (4) of Article 8 of the Regulations are violated, a notice of criticism shall be circulated regarding the advertising operator involved, any illegal earnings by the operator confiscated and a fine of up to 10,000 yuan imposed. The advertising client may be sent a notice of criticism and fined up to twice the amount of the advertising costs, depending on the seriousness of the case.

   Article 24. If a news unit violates the provisions of Article 9 of the Regulations, a notice of criticism may be circulated, any illegal earnings confiscated and a fine of up to 10,000 yuan imposed, depending on the seriousness of th case.

   Article 25. If an advertising operator violates the provisions of Article 10 of the Regulations, a notice of criticism may be circulated, any illegal earnings confiscated and a fine of up to 10,000 Yuan imposed depending on the seriousness of the case.

   Article 26. If an advertising client violates the provisions of Article 11 of the Regulations by forging, altering, stealing and using or illegally copying a certificate, a notice of criticism shall be criticism shall be circulated and a fine of up to 5,000 yuan imposed.

An advertising operator which violates the provisions of items (1) or (2) of Article 11 of the Regulations shall be subject to a fine of up to 1,000 yuan.

If an advertising operator provides a client with illegal or false certificates, a notice of criticism shall be circulated, a fine of up to 5, 000 yuan imposed and the operator shall bear joint and several liability.

   Article 27. If an advertising operator violates the provisions of Article 12 of the Regulations, a notice of criticism may be circulated, any illegal earnings confiscated and a fine of up to 3,000 yuan imposed, depending on the seriousness of the case. If false advertising is the result, the operator shall be responsible for issuing an amended advertisement and shall bear joint and several liability for the losses incurred by users and consumers.

   Article 28. If the provisions of Article 13 of the Regulations are violated through the illegal display or posting of advertisements, any illegal earnings shall be confiscated, a fine of up to 5,000 yuan shall be imposed and a time limit shall be specified for the dismantling and removal of the offending advertisements. In the event of failure to dismantle and remove such an advertisement within the specified time limit, the dismantling and removal of the advertisement shall be enforced, with the costs being borne by the party which displayed or posted the advertisement.

   Article 29. If the provisions of Articles 14 or 15 of the Regulations are violated, an order may be issued to rectify the situation within a specified time limit, any illegal earnings confiscated and a fine of up to 5,000 yuan imposed, depending on the seriousness of the case.

   Article 30. If a foreign enterprise or the resident representative office of a foreign enterprise violates any of the provisions of the Regulations, the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality shall, with reference to the provisions of these Detailed Implementing Rules, suggest a means of dealing with the matter. Such a proposal shall be implemented subject to its approval by the State Administration for Industry and Commerce.

   Article 31. The State Administration for Industry and Commerce shall be responsible for interpreting these Detailed Implementing Rules.

   Article 32. These Detailed Implementing Rules shall take effect from the date of promulgation.