Interpretation of the Measures for the Administration of National Printing and Reproduction Demonstration Enterprises

[ppzhan abstract]

] The General Administration of Press and Publication of the People's Republic of China issued on December 7, 2011 the "National

Reproduction Demonstration Enterprise Administration Measures" (hereinafter referred to as the "Measures"), which clarifies the purpose and planning goals of national printing and reproduction demonstration enterprises, specifies from eight aspects the conditions that applicant enterprises must meet, defines from five aspects the preferential support policies for demonstration enterprises, and establishes an annual assessment mechanism for demonstration enterprises.

On December 7, 2011, the General Administration of Press and Publication of the People's Republic of China issued the "Measures for the Administration of National Printing and Reproduction Demonstration Enterprises", clarifying the definition, purpose, conditions, application procedures, preferential support and assessment mechanism, among other things, of national printing and reproduction demonstration enterprises. On December 7, 2011, the General Administration of Press and Publication of the People's Republic of China issued the "Measures for the Administration of National Printing and Reproduction Demonstration Enterprises" (hereinafter referred to as the "Measures"), clarifying the definition, purpose, conditions, application procedures, preferential support and assessment mechanism, among other things, of national printing and reproduction demonstration enterprises.

The "Measures" are of great significance for implementing the requirement put forward in the "Cultural Industry Revitalization Plan" to build a number of printing and reproduction industry demonstration bases, for carrying out comprehensive assessments of printing and reproduction enterprises by category, for standardizing the establishment and management of national printing and reproduction demonstration enterprises, and for giving full play to the guiding and radiating role of such enterprises in transforming the development mode, adjusting the industrial structure and upgrading the quality of the industry, so as to build China into a world printing power.

Defines the Purpose and Planning Goals of Demonstration Enterprises

The "Measures" set strict provisions on the definition of national printing and reproduction demonstration enterprises, pointing out that such enterprises refer to backbone printing and reproduction enterprises or enterprise groups that are properly qualified, law-abiding, well managed, technologically advanced, outstanding in products and performance, innovative and energy-saving, talent-agglomerating and honest in operation, and that play a demonstrative role nationwide.

The "Measures" also define the purpose of establishing national printing and reproduction demonstration enterprises: through the recognition, accreditation, support and promotion of backbone printing and reproduction enterprises or enterprise groups with a demonstrative role, to further optimize the industrial structure, cultivate advantageous enterprises, accelerate independent innovation and technological progress, encourage energy conservation and emission reduction, advocate green printing, and guide the entire industry toward transformation and upgrading.

In addition, the "Measures" also set the planning goals for national printing and reproduction demonstration enterprises. That is, starting from 2012 and by the end of the "Twelfth Five-Year Plan" period, about 100 "National Printing Demonstration Enterprises" will be established across the country. The guiding role and radiating effect of national printing and reproduction demonstration enterprises will become clearly evident, the competitiveness of backbone printing and reproduction enterprises will be markedly enhanced, industrial division of labor will be reasonable, regions will develop in a coordinated manner, and a relatively complete modern printing and reproduction industry system will take shape.

Eight Aspects Defining the Conditions Applicant Enterprises Must Meet

The "Measures" specify, from eight aspects — lawful operation, scale and efficiency, technical equipment, innovation and R&D, management systems, green environmental protection, talent teams and local support — the conditions that applicant enterprises must meet in order to apply to become national printing and reproduction demonstration enterprises.

In terms of lawful operation, it is stipulated that applicant enterprises must exemplary comply with relevant industry laws and regulations, have no adverse records such as piracy or illegal printing, and have not been given administrative penalties by the competent administrative department of press and publication within the past three years.

In terms of scale and efficiency, it is stipulated that the main economic efficiency indicators and overall labor productivity of applicant enterprises must rank among the top in the same industry domestically, and that the enterprise must have been profitable in the past three fiscal audit years. Among these, printing enterprises must have total assets of more than RMB 300 million (more than RMB 100 million for enterprises mainly engaged in publication printing or digital printing), annual sales revenue of more than RMB 500 million (more than RMB 200 million for enterprises mainly engaged in publication printing or digital printing), or total sales revenue of more than RMB 1 billion over the past three years (more than RMB 500 million for enterprises mainly engaged in publication printing or digital printing) with an average annual growth rate of more than 20% during that period, and annual taxes paid of more than RMB 10 million.

In terms of technical equipment, it is stipulated that the enterprise must possess advanced technical equipment such as multi-color, high-speed, automatic and inline systems, or have strong capabilities in digital printing, flexographic printing, digital automatic control of printing equipment, digital asset management, digital direct plate-making, digital workflows and other areas.

In terms of innovation and R&D, it is stipulated that applicant enterprises must invest no less than 1% of sales revenue in R&D, and must have established a national- or provincial-level enterprise technology center or R&D institution; the enterprise must hold authorized [patents], and the number held must rank among the top in the same industry domestically. The enterprise must have achieved substantive innovation and relatively mature innovation results in new product development, extension of the industrial chain, exploration of business models and other areas.

In terms of management systems, applicant enterprises are required to establish standardized modern property rights systems and sound management mechanisms; to have passed quality management system certification and to organize production in accordance with advanced domestic standards, with product quality tested as meeting the relevant standards; to have established a web-based enterprise management information system; and to have a sound work safety management system with well-established accountability, with no major work safety accidents in the past three years.

In terms of green and environmental protection, applicant enterprises are required to actively carry out green production and to have passed environmental management system and related green certifications; to implement cleaner production audits; to use raw and auxiliary materials that meet standards and to apply energy-saving, emission-reducing and cleaner-production equipment, materials and processes; and to meet national environmental protection standards in terms of emissions, energy conservation and other indicators. The Measures also point out that printing enterprises are able to meet the requirements of the national green printing standards.

In terms of talent, applicant enterprises are required to have a strong management and technology R&D team. For printing enterprises, the proportion of personnel with a college degree or above, or with a mid-level or above professional title (including mid-level skilled worker and above), shall be no less than 70%, and the proportion of technical personnel (including technician and above) shall be no less than 20%.

In terms of local support, the Measures provide that the province, autonomous region or municipality directly under the Central Government where the applicant enterprise is located has given practical and feasible support policies and measures for the establishment of national printing and replication demonstration enterprises.

In addition, to encourage printing enterprises to "go global", the Measures provide that enterprises meeting conditions such as the following may also be recognized as national printing demonstration enterprises: the overseas printing and processing business undertaken in a year accounts for more than 30% of the enterprise's total main business volume, and the annual turnover of overseas processing business reaches USD 20 million; the enterprise's return on total assets should be higher than the bank loan interest rate for the same period; the enterprise should not be in arrears with taxes, wages or social insurance contributions, its debt-to-asset ratio should generally be below 60%, and its bank credit rating should be AA or above (including AA). Enterprises in the same industry whose product quality, technological content of products and new product development capability are at the leading level, whose comprehensive utilization rate of raw materials is high, and whose main business complies with national industrial policies, environmental protection policies and quality management standard systems may also be recognized as national printing demonstration enterprises.

Five Aspects Specify Preferential Support Policies for Demonstration Enterprises

The Measures specify, from five aspects—project funding, industrial policy, management measures, selection and awards, and imported equipment—the conditions that demonstration enterprises must meet. Printing enterprises are involved in the first four of these.

In terms of project funding, the General Administration of Press and Publication is required to give priority support in the form of industrial development projects and development funds to printing and replication enterprises recognized as national printing and replication demonstration enterprises.

In terms of industrial policy, for Sino-foreign joint venture and Sino-foreign cooperative publication printing enterprises and printing enterprises for other printed matter, the foreign party may hold a controlling or dominant position, but the proportion or rights and interests of the Chinese party shall not be less than 30%.

In terms of management measures, when demonstration enterprises accept commissions to print or replicate printing and replication products from overseas, the press and publication administrative departments of provinces, autonomous regions and municipalities directly under the Central Government may, on the basis of ensuring cultural security and in light of actual management needs, appropriately simplify approval procedures and improve approval efficiency.

In terms of selection and awards, in the evaluation of the China Publishing Government Award (Printing and Replication Award), national key cultural export enterprises, national cultural high-tech enterprises and the like, under equal conditions, priority shall be given to printing and replication enterprises recognized as national printing and replication demonstration enterprises.

Establish an Annual Assessment Mechanism for Demonstration Enterprises

The Measures provide that, for demonstration enterprises, an annual assessment mechanism for national printing and replication demonstration enterprises shall be established and improved in accordance with the principles of "target-based assessment, dynamic management, and entry and exit as appropriate." The General Administration of Press and Publication organizes an expert review panel to assess national printing and replication demonstration enterprises and determine the annual assessment results. Those that fail the assessment shall have their title of national printing and replication demonstration enterprise revoked. In addition, enterprises that seriously violate relevant laws and regulations in serious circumstances; that cause major production safety and quality accidents with serious consequences; or that commit other serious violations of laws and regulations shall have their title of national printing and replication demonstration enterprise directly revoked.

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362112.html