Laws of the People's Republic of China

The State Administration for Industry and Commerce

Reply of the State Administration for Industry and Commerce on Issues Concerning the Registration Administration of Advertising Agencies

GongShangGuanZi[2001] No.343

November 17, 2001

Liaoning Administration for Industry and Commerce:

We have studied your Request for Instructions on the Registration Administration of Advertising Agencies (LiaoGongShang [2001] No. 26) and now reply as follows:

1.

In compliance with Article 26 of Advertising Law of the People's Republic of China (hereinafter referred to as Advertising Law) and Article 6 of the Regulations on Advertising Administration (hereinafter referred to as the Regulations) of the State Council, any organization that needs to engage in the advertising business should begin its operation only after obtaining the business or advertising license and registering with competent administrations for industry and commerce. Non-profit organizations with advertising and promulgation operations should apply to competent administrations for industry and commerce for the Advertising License.

2.

Titles of the subjects of advertising activities: advertising operators and promulgators in the Advertising Law, namely advertising operators in the Regulations.

3.

In case there is no corresponding legal liability clause of a certain misconduct in the Advertising Law but the Regulations contains the corresponding penalty clause, the regulatory provisions and related penalty clauses of the Regulations may be applicable. Therefore, advertising operations either without a license or beyond the prescribed scope of business should be punished in accordance with Article 21 of the Implementing Rules of the Regulations on Advertising Administration.