Laws of the People's Republic of China

the Ministry of Culture

Order of the Ministry of Culture of the People's Republic of China

No. 34

The Detailed Rules for the Implementation of the Regulation on the Administration of Commercial Performance, adopted at the executive meeting of the Ministry of Culture upon deliberation on August 25, 2005, are hereby promulgated and shall go into effect as of September 1, 2005.

Minister of the Ministry of Culture Sun Jiazheng

August 30, 2005

Detailed Rules for the Implementation of the Regulation on the Administration of Commercial Performance

Chapter I General Provisions

Article 1

The present Detailed Rules for the Implementation are formulated in accordance with the Regulation on the Administration of Commercial Performance (hereinafter referred to as the Regulation).

Article 2

For the purpose of this Regulation, "performance" includes live artistic performance activities such as music, drama, dance, acrobatics, magic, circus, quyi, puppet, shadow play, recitation, fork art and any other form.

Article 3

For the purpose of this Regulation, "commercial performances" refers to the performance activities as held for profit-making purpose by the following ways:

(1)

Selling tickets or booking a whole theater;

(2)

Paying or remunerating the performance entities or individuals;

(3)

Using the performance as a medium for advertising publicity or sales promotion of products;

(4)

Being sponsored or donated; and

(5)

Organizing performance in any other profit-making form.

Article 4

The state shall protect the lawful rights and interests of all parties such as commercial performance entities, performers and audience, and shall prohibit any unfair competition in commercial performance.

Chapter II Operational Subjects of Commercial Performance

Article 5

The term " artistic performance group" refers to the business entity that satisfies the requirements as prescribed in paragraph 1 of Article 6 of the Regulation and undertakes various kinds of live artistic performance.

Article 6

The term "performance brokerage institutions" refers to the business entity that satisfies the requirements as prescribed in paragraph 2 of Article 6 of the Regulation and undertakes business operations of performances and performance brokerage as well.

Article 7

The term "business entity of performance place" refers to the business entity that satisfies the requirements as mentioned in Article 8 of the Regulation and provides professional performance place and relevant services for commercial performances activities.

Article 8

The term "self-employed performer" refers to a performer who satisfies the requirements as prescribed in Article 10 of the Regulation and engages in performance and who has obtained the business license from the administrative department for industry and commerce and has gone through the archival-filing formalities with the cultural administration.

The term "self-employed performance broker" refers to a broker who satisfies the requirements as prescribed in Article 10 of the Regulation and engages in such activities as intermediary and agency for commercial performance and who has obtained the business license from the administrative department of industry and commerce and has gone through the archival-filing formalities with the cultural administration.

Article 9

Anyone who applies for establishing an artistic performance group shall submit the following documents to the cultural administration:

(1)

An application;

(2)

The Notice on the Advance Approval for the Name of an Artistic Performance Group, domicile thereof and the type of art as engaged in;

(3)

The identity certification of the legal representative or the person-in-charge;

(4)

The certification of performers' ability of art performance; and

(5)

The purchase of performance facilities and equipment, or the relevant fund certification.

The term "certification of performers' ability of art performance" as mentioned in item (4) of the preceding paragraph may be any of the following documents:

(1)

The graduation certification of the major of art performance as issued by an art school above the medium level (including art major in a comprehensive college or university);

(2)

The certificate of professional title;

(3)

The written certification issued by an art academy;

(4)

The valid certificate or the documentary evidence issued by the performance association; or

(5)

Any other valid certificate.

Article 10

Anyone who applies for establishing a performance brokerage institution shall submit the following documents to the cultural administration:

(1)

An Application;

(2)

The Notice on the Advance Approval for the Name of a Performance Brokerage Institution and the domicile thereof;

(3)

The identity certificate of the legal representative or the person-in-charge;

(4)

The qualification certificate of performance brokers; and

(5)

The certificate as to funds.

The measures for the qualification accreditation of performance brokers as mentioned in item (4) of the preceding paragraph shall be formulated by the national performance association.

Article 11

A business entity of performance place, self-employed performer or individual performance broker that has obtained its/his business license according to law shall go through the archival-filing formalities with the local cultural administration at the county level, which shall issue a certification of archival filing. The specimen of the certification of archival filing shall be designed by the Ministry of Culture and shall be printed by the cultural administration at the provincial level according to the design requirements of the Ministry of Culture.

Article 12

Anyone who applies for establishing a Chinese-foreign joint venture or Chinese-foreign contractual performance brokerage institution shall submit the following documents as well as the documents as prescribed in Article 10 of the present Detailed Rules for the Implementation:

(1)

The feasibility study report, contract and articles of association;

(2)

The credit certification and documents of registration of all parties to the joint venture or contractual performance brokerage institution;

(3)

The relevant documents on the asset appraisal which shall, in accordance with the provisions of the relevant laws and regulations, be carried out for any state-owned asset in the form of investment or cooperative requirements as provided by the Chinese party to the joint venture or contractual brokerage institution;

(4)

The name list of the candidates of the chairman, deputy chairman and directors of the board of directors, or of the director, deputy director, members of the joint management committee, which is determined by all parties to the joint venture or contractual brokerage institution through consultation, and the identity certification thereof; and

(5)

Other document as required to be submitted according to law.

The chairman of the board of directors or the director of the joint management committee of a joint venture or contractual brokerage institution of performance shall be assumed by Chinese representatives, which shall constitute a majority number of the board of directors or the joint management committee.

Article 13

Anyone who applies for establishing a Chinese-foreign joint venture or Chinese-foreign contractual business entity of performance places shall submit the following documents:

(1)

An Application;

(2)

The Notice of the Advance Approval for the Name of a Business Entity of Performance Place and the domicile thereof;

(3)

A feasibility study report, contract and constitution;

(4)

The credit certification and registration documents of all parties to the joint venture or contractual performance brokerage institution;

(5)

The relevant documents on the asset appraisal which shall, in accordance with the provisions of the relevant laws and regulations, be carried out for any state-owned asset in the form of investment or cooperative requirements as provided by the Chinese party to the joint venture or contractual brokerage institution;

(6)

The name list of the candidates of the chairman, deputy chairman and directors of the board of directors, or of the director, deputy director and other members of the joint management committee, which is determined by all parties to the joint venture or contractual brokerage institution through consultation, and the identity certification thereof;

(7)

The certification of the land use right or the leasing certification;

(8)

Other document as required to be submitted according to law.

The chairman of the board of directors or the director of the joint management committee of a joint venture or contractual business entity of performance places shall be assumed by Chinese representative, which shall constitute a majority number of the board of directors or the joint management committee.

Article 14

A performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region may, upon approval, establish branches in the mainland, but its branches in the mainland may not enjoy the status of enterprise legal-person.

A branch as established in the mainland by a performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region may engage in the intermediary or agent activities of commercial performance in accordance with the law, but may not undertake any other business activities concerning performance. A performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region shall bear the civil liabilities for the business operations of its branches.

Any performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region that establishes a branch in the mainland shall designate the person-in-charge of the said branch in the mainland and appropriate the relevant funds to the branch for the relevant business operations.

Article 15

A performance brokerage institution of Hong Kong Special Administrative Region or Macao Special Administrative Region that applies for the establishment of a branch in the mainland shall submit the following documents:

(1)

An application;

(2)

The name and domicile of the branch;

(3)

The certification of legal business of the performance brokerage institution in Hong Kong and Macao;

(4)

The articles of associations of the performance brokerage institution as well as its branch;

(5)

The appointment letter of the person-in-charge of the branch and the identity certification thereof;

(6)

The qualification certification of the practitioners in performance brokerage;

(7)

The fund certification of the performance brokerage institution and the certification on the amount and term of the fund as appropriated to its branch for business operations; and

(8)

Other document as required to be submitted according to law.

The qualification accreditation of performance brokers as mentioned in item (6) of the preceding paragraph shall be implemented in accordance with paragraph 2 of Article 10 of the present Detailed Rules for the Implementation.

Article 16

An investor of the Hong Kong Special Administrative Region or Macao Special Administrative Region who applies for the establishment of a sole-capital business entity of performance place in the mainland shall submit the following documents:

(1)

An application;

(2)

The Notice on the Advance Approval of the Name of a Business Entity of Performance Place and the domicile thereof;

(3)

A feasibility study report and the articles of association;

(4)

The qualification and the identity certification of the investor and legal representative;

(5)

The source, amount and term of contributed capital and the certification thereof;

(6)

The certification of land use right or leasing certification; and

(7)

Other document as required to be submitted according to law.

Article 17

An investor of Hong Kong Special Administrative Region or Macao Special Administrative Region who applies for the establishment of a joint-venture or contractual performance brokerage institution or business entity of performance place in the mainland shall handle it by referring to paragraph 1 of Article 12 and paragraph 1 of Article 13 of the present Detailed Rules for the Implementation.

A Taiwan investor who applies for the establishment of a joint-venture or contractual performance brokerage institution or business entity of performance places in the mainland shall handle it by referring to Articles 12 and 13 of the present Detailed Rules for the Implementation.

Article 18

Anyone that has established a joint-venture, contractual or sole-capital business entity of performance or a branch under the provisions of Articles 12 and 13 of the Regulation shall, after obtaining the commercial performance license as issued by the Ministry of Culture, file an application with the Ministry of Commerce through the local administrative department of commerce at the provincial level upon the strength of the said license, go through the relevant formalities, and shall register with the administrative department of industry and commerce and obtain a business license.

Chapter III Performance Administration

Article 19

Anyone that files an application for holding commercial performance shall, 3 days before the performance, submit the application materials to the cultural administration in charge of the examination and approval thereof.

Anyone that applies for holding a foreign-related commercial performance or a commercial performance relating to Hong Kong or Macao shall, 20 days before the performance, submit the application materials to the cultural administration in charge of the examination and approval thereof.

Article 20

Anyone who files an application for holding a commercial performance shall, upon the strength of the commercial performance license or the business license thereof, submit the documents as prescribed by Article 17 of the Regulation to the cultural administration.

Anyone that files an application for a commercial performance using temporarily-built stage or stand shall submit the documents that conform to the provisions of items (2) and (3) of Article 21 of the Regulation. For any performance as approved, the sponsor shall, 1 day before the performance submit the documents as prescribed in item (1) of Article 21 of the Regulation to the cultural administration in charge of the examination and approval thereof. In the case of failure to conform to the prescribed requirements, the performance may not be held.

An application for any commercial performance with the participation of minors shall conform to the provisions of the state.

Article 21

As for the application for sponsoring any foreign-related commercial performance or any commercial performance relating to Hong Kong or Macao, the following documents shall be submitted as well:

(1)

A Plan of Fund Appropriation and the relevant fund certification thereof;

(2)

Photocopies of the valid identity certification of performers; and

(3)

A written statement of observing the provisions of the Regulation within the recent 2 years.

The term "fund certification" as mentioned in item (1) of the preceding paragraph refers to the deposit certification of the basic deposit account of the current month that is issued by the opening bank of the applicant entity, or the certification that such financial institutions as a bank approve a loan, or the certification of any other entity's approval for loans, investment, guaranty and support as well as the deposit certification of the basic deposit account of the current month as issued by the opening bank of the said entity.

The cultural administration shall carry out the examination and approval of the foreign-related commercial performance or commercial performance relating to Hong Kong or Macao and may, if necessary, organize experts to carry out demonstration according to law.

Article 22

Anyone who files an application for holding any foreign-related commercial performance in any non-singing-or-dancing entertainment place shall file an application with the Ministry of Culture through the local cultural administration at the provincial level, which shall issue the examination opinion and report it to the Ministry of Culture for examination and approval within 5 days.

For any across-province performance, the examination opinion of the relevant cultural administration at the provincial level where the performance is held shall be provided.

In the case of any different provision of the state, it shall prevail.

Article 23

When applying for holding commercial performances, the business entity of commercial performance shall fulfill the following obligations:

(1)

Going through the formalities of application for the performance;

(2)

Arranging the performance program;

(3)

Determining the ticket price and taking charge of the settlement of the payment and expenditure of the performance;

(4)

Paying or withholding relevant taxes and fees according to law;

(5)

Accepting voluntarily the supervision and administration of the cultural administration in the place where the performance is held; and

(6)

Fulfilling any other obligation as required by law.

Article 24

As for any foreign-related commercial performance or any commercial performance relating to Hong Kong or Macao, the sponsor shall be responsible for going through the formalities for entry and exit of all the artistic performance groups and individuals from foreign countries, or of those from Hong Kong, Macao and Taiwan. As for a tour performance, it shall be reliable for the communications and program arrangements of the whole journey as well.

Article 25

The professional performers of an artistic performance group and the teachers and students of a professional art academy may participate in the commercial performance as held by any artistic performance group, performance brokerage institution or business entity of performance place, but may not unlawfully hold any commercial performance by themselves.

Article 26

Where a professional performer of an artistic performance group or a teacher or student of a professional art academy is invited to participate in any commercial performance, or participates in any commercial performance that is not held by his/her entity, the agreement of the entity where he/she works shall be secured and a contract shall be concluded thereon.

Article 27

Where a professional artistic performer from a foreign country or Hong Kong or Macao who is invited by a professional art academy to engage in teaching and study requires to participate temporarily in any commercial performance, a performance brokerage institution shall be entrusted as an agent to handle it, which shall, in accordance with the prescribed procedures, report it to the Ministry of Culture or the cultural administration at the provincial level for examination and approval.

Article 28

No performer may cheat the audience in a commercial performance by such means as lip-synching or fraudulent performance.

The term "lip-synching or fraudulent performance" as mentioned in the preceding paragraph refers to the undue conduct that a performer makes use of his song or music that has been recorded beforehand instead of giving his/ her live performance of the song or music in a performance.

Article 29

In the event of holding any charity performance, the relevant formalities for examination and approval shall be gone through in accordance with the Regulation and the present Detailed Rules for the Implementation.

Any performer or performance staff member that participates in a charity performance may not claim any remuneration from the performance. The performance entity or self-employed performer shall, after the necessary costs and expenditures being deducted, donate the income as generated from the performance to the public welfare undertakings and may not make any profit therefrom.

The income as generated from a charity performance includes the ticket income, the donated funds and materials, the income from advertisement and any other income from the activities relating to the performance.

The necessary costs and expenditures include the expenses for food, accommodation and transportation and those as needed for the performance, such as the stage lighting and acoustic equipment, costumes and props, stage art and performance place, and publicity, etc.

The performance entity or self-employed performers shall, within10 days after the conclusion of the charity performance, report the settlement of revenues and expenditures of the performance to the examination and approval organ for archival filing.

Any other charity performance as held in the form as prescribed in Article 3 of the present Detailed Rules for the Implementation shall be carried out by referring to the provisions of the present Article.

Article 30

An investment entity of commercial performance may enjoy the name-crowning right according to law and may enjoy the right of distributing the income as generated from a performance in accordance with the stipulation of the contract.

Article 31

In a commercial performance, the relevant sponsor shall comply with the requirements of stage design and give priority to domestic performance facilities.

Article 32

In case a business entity of singing and dancing entertainment place, stadium, hotel, restaurant, dining place or any other non-performance place requests to hold any commercial performance in its place, it shall entrust a performance brokerage institution as an agent to handle it and shall report it to the cultural administration in accordance with the prescribed procedures.

Article 33

The ticket of the commercial performance may not be sold till approval is obtained.

Article 34

The cultural administration shall, in accordance with the relevant provisions, grant subsidies and supports to the performances that are up to national standards and embody national characteristics.

The relevant departments of the people's government above the county level may, in accordance with the relevant provisions of the Regulation and the financial management system, encourage and support the performance that reflects ethnic features and national level.

Article 35

The cultural administrations at all levels shall publicize the matters concerning the examination and approval of commercial performance to the society.

Article 36

The cultural administrations shall, in light of the requirements of the administration of performance, establish a system of reporting performance information, a responsibility system of going on a tour of inspection on the performance market, the system of publicizing the basic information on performance business entities so as to strengthen the administration and supervision of the performance market.

Article 37

The performance association is a self-discipline organization constituted by performance entities and performance practitioners. The members of the performance association shall, pursuant to the articles of associations of the performance association, enjoy the rights and perform the obligations as stipulated in the articles of associations.

The cultural administrations at all levels shall strengthen the guidance for and supervision over the performance association.

Article 38

The performance association shall, according to the stipulations of the articles of associations, perform the following duties:

(1)

Guiding, supervising the business activities of its members and safeguarding their legitimate rights and interests;

(2)

Formulating the self-discipline standards and promoting self-discipline and fair competition;

(3)

Organizing its members to carry out business exchanges and training;

(4)

Mediating any dispute between its members over performance; and

(5)

Performing other duties as required.

Article 39

The national performance association shall organize and implement the qualification accreditation of performance brokers and shall entrust other organization as accredited by the performance association or the cultural administration at the provincial level to carry out trainings and the relevant work.

Chapter IV Administration of Commercial Performance License

Article 40

The commercial performance license of an artistic performance group or a performance brokerage institution shall include 1 original and 2 duplicates. The original of the commercial performance license shall be hung at an eye-catching place of its main office.

The commercial performance license as designed by the Ministry of Culture, shall be printed and produced by the provincial cultural administrations according to the requirements of the Ministry of Culture, and shall be filled in, printed and stamped with an official seal by the license-issuing authority. The duplicates of the commercial performance license shall give a clear indication of the name and contact method of the person-in-charge and the handlers of the license-issuing authority.

Article 41

An artistic performance group or a performance brokerage institution that has obtained the commercial performance license shall, within 90 days, put the duplicate of its business license as issued by the administrative department for industry and commerce with the culture administration that has issued the commercial performance license on record.

Article 42

When the cultural administration revokes the commercial performance license of a commercial artistic performance group or performance brokerage institution, it shall notify the administrative department for industry and commerce to alter the business scope or revoke the business license.

No entity or individual may withhold or detain the commercial performance license of a commercial artistic performance group or performance brokerage institution, except that the cultural administration suspend or revoke it in accordance with the law.

Article 43

The revocation or writing-off of the commercial performance license of a commercial artistic performance group shall be put on record with the cultural administration at the provincial level. The revocation or writing-off of the commercial performance license of a performance brokerage institution, it shall be put on record with the Ministry of Culture.

Article 44

The cultural administrations at all levels shall establish an archival system for registering the license issued to commercial artistic performance groups and performance brokerage institutions, and a registration system of performance places, self-employed performers and self-employed performance brokers.

Article 45

When giving an administrative punishment to an artistic performance group or a performance brokerage institution, the cultural administration shall record the punishment decision on the duplicate of the commercial performance license and affix the seal of the organ that has given the punishment and, at the same time, notify the license-issuing authority of the punishment decision.

Chapter V Penalty Provisions

Article 46

Anyone that violates the provisions of Article 20 of the present Detailed Rules for the Implementation by failing to submit, 1 day before the date of the performance, the certification of passing the inspection and acceptance of performance places according to law as prescribed in Article 21 of the Regulation to the cultural administration in charge of the examination and approval of performance and directly holding any commercial performance by using any temporarily-built stage or stand, shall be punished by the cultural administration at the county level in accordance with the provisions of Article 44 of the Regulation.

Article 47

Any entity that violates the provisions of Articles 23 and 24 of the present Detailed Rules for the Implementation by failing to perform its obligations in the business activity of a performance and reselling or transferring the operational right of the performance, shall be punished in accordance with the provisions of Article 45 of the Regulation.

Article 48

Any professional performer of an artistic-cultural performance group or any teacher or student of a professional art college or university that violates the provisions of Article 25 of the present Detailed Rules for the Implementation by unlawfully holding any commercial performance shall be punished by the cultural administration at the county level in accordance with the provisions of Article 43 of the Regulation.

Article 49

Any entity that violates the provisions of Article 26 of the present Detailed Rules for the Implementation by inviting any professional performer of an artistic-cultural performance group or any teacher or student of a professional art college or university to participate in any commercial performance without soliciting the consent of the relevant entity shall be given a warning by the cultural administration at the county level, and shall be imposed a fine of not less than 10, 000 Yuan but not more than 30, 000 Yuan as well.

Article 50

Where a professional artistic performer from a foreign country or from Hong Kong or Macao that has been invited by a art academy to engage in teaching or research violates the provisions of Article 27 of the present Detailed Rules for the Implementation by unlawfully engaging in any commercial performance, the cultural administration at the county level shall give it a punishment in accordance with the provisions of Article 43 of the Regulation.

Article 51

Anyone who cheats the audience by such means as fraudulent musical performance shall be punished in accordance with the provisions of Article 47 of the Regulation.

Article 52

Where an entity that violates the provisions of Article 29 of the present Detailed Rules for the Implementation by failing to go through the formalities for examination and approval according to the relevant regulations to unlawfully hold any charity performance or any other public welfare performance without permission, it shall be punished in accordance with the provisions of Article 43 of the Regulation.

Article 53

Where a business entity of non-performance places that violates the provisions of Article 32 of the present Detailed Rules for the Implementation by unlawfully holding any performance without official approval, it shall be punished in accordance with the provisions of Article 43 of the Regulation.

Article 54

Any entity that violates the provisions of Article 33 of the present Detailed Rules for the Implementation by unlawfully selling any ticket of performance without any approval shall be ordered to cease its irregularity by the cultural administration at the county level, and shall be imposed a fine of not less than 10, 000 Yuan but not more than 30, 000 Yuan as well.

Article 55

Any entity that conceals its record of violating the Regulation within the recent 2 years and submits any fraudulent written statement when applying for any foreign-related commercial performance or any commercial performance relating to Hong Kong or Macao shall be imposed a fine of 30, 000 Yuan by the cultural administration in charge of the examination and approval.

Chapter VI. Supplementary Provisions

Article 56

The power to interpret the present Detailed Rules for the Implementation shall be vested in the Ministry of Culture.

Article 57

The present Detailed Rules for the Implementation shall go into effect as of September 1, 2005. The Detailed Rules for Implementing the Regulation on the Administration of Commercial Performance promulgated on July 1, 2004 shall be simultaneously repealed.