New Rules Set to Reshape Printing Business License Approval: Key Changes to Know

On April 29, the Ministry of Justice of the People's Republic of China and the official website of the Chinese government's legislative information published the Provisions on the Qualification Requirements for Printing Industry Operators (Draft for Comment), and publicly solicited comments from society on the draft.

Lighter approval, stronger supervision

As is widely known, the Provisions on the Qualification Requirements for Printing Industry Operators are the regulatory basis on which printing operators apply for a printing business license, and they have a huge impact on the operations of printing and packaging enterprises.

Compared with previous provisions, the new rules (draft for comment) mainly reflect the approach of "lighter approval, stronger supervision".

1. Further relaxing approval conditions

Apart from the condition already abolished in recent years under the "streamlining administration, delegating power, improving regulation and optimizing services" reform - that packaging and decorative printed materials require 2 printing machines manufactured within the past ten years and not listed in the phase-out catalogue (with no requirements on the number of machines or their age) - the new rules (draft for comment) once again relax the conditions for applying to engage in publication printing:

The required number of machines is reduced from 2 to 1;

The scope is relaxed from only automatic folio offset printing equipment to automatic folio offset and flexographic printing equipment, or 1 production digital printing machine.

1. Further strengthening regulatory measures

For applications to engage in publication printing and packaging and decorative printing, the new rules (draft for comment) require sound business management and financial management systems covering print-job verification, registration, storage, delivery and destruction, as well as a quality assurance system (the old version already imposed such requirements for applications to engage in other printed materials and for special permits such as typesetting, plate-making and binding). At the same time, the new rules (draft for comment) require:

The batch quality of printed products produced by printing operators shall meet national or industry standards;

Annual reports shall be submitted through the annual report disclosure platform.

The new rules (draft for comment) also provide that where the above two requirements are violated or the Printing Regulations Training Certificate has not been obtained, the publication administration department of the local people's government at or above the county level shall order correction and, depending on the seriousness of the circumstances, give a warning and impose a fine of up to 30,000 yuan.

Full text of the new rules (draft for comment)

Article 1 These Provisions are formulated in accordance with the Regulations on the Administration of the Printing Industry and relevant laws and regulations, in order to regulate printing industry operators engaged in printing business activities, establish a fair competitive market environment, improve the quality and level of printing supply and promote the high-quality development of the printing industry.

Article 2 For the purposes of these Provisions, printing industry operators include entities engaged in printing business activities involving publications and packaging and decorative printed materials as well as special typesetting, plate-making and binding printing activities, and entities or individuals engaged in printing business activities involving other printed materials.

Article 3 An applicant to engage in publication printing business activities shall meet the following conditions:

(1) It has completed industrial and commercial registration, has legal person status, and its business scope includes printing business activities;

(2) It has a fixed production and business site suited to its business needs;

(3) It has funds sufficient to maintain normal production and operation;

(4) It has the necessary publication printing equipment, with at least 1 automatic folio offset or flexographic printing machine manufactured within the most recent 10 years (as of the date of application submission) and not listed in the Restricted and Phased-Out Categories of the Catalogue for Guiding Industry Restructuring, or 1 production digital printing machine;

(5) It has an organizational structure and personnel suited to its business needs;

(6) It has sound business management and financial management systems covering print-job verification, registration, storage, delivery and destruction, as well as a quality assurance system.

Article 4 In addition to meeting the conditions listed in Article 3 of these Provisions, a foreign-invested enterprise applying to engage in publication printing business activities shall also comply with the restrictive special administrative measures for access specified in the negative list for foreign investment access. In pilot free trade zones, wholly foreign-owned enterprises may apply to engage in publication printing business activities. Where preferential opening-up measures are implemented for investors from Hong Kong and Macao, investors from the Taiwan region or printing industry investment in other special economic zones, the relevant provisions shall apply.

Article 5 An applicant to engage in the printing of packaging and decorative printed materials shall meet the following conditions:

(1) It has completed industrial and commercial registration, has legal person status, and its business scope includes printing business activities;

(2) It has a fixed production and business site suited to its business needs;

(3) It has funds sufficient to maintain normal production and operation;

(4) It has the necessary packaging and decorative printing equipment;

(5) It has an organizational structure and personnel suited to its business needs;

(6) It has sound business management and financial management systems covering print-job verification, registration, storage, delivery and destruction, as well as a quality assurance system.

Article 6 An applicant to engage in printing business activities involving other printed materials shall meet the following conditions:

(1) It has completed industrial and commercial registration, and its business scope includes printing business activities;

(2) It has a fixed production and business site suited to its business needs;

(3) It has funds sufficient to maintain normal production and operation;

(4) It has production equipment suited to its business needs;

(5) It has an organizational structure and personnel suited to its business needs;

(6) It has sound business management and financial management systems covering print-job verification, registration, storage, delivery and destruction, as well as a quality assurance system.

Article 7 An applicant to engage in special typesetting, plate-making and binding business activities shall meet the following conditions:

(1) It has completed industrial and commercial registration, has legal person status, and its business scope includes printing business activities;

(2) It has a fixed production and business site suited to its business needs;

(3) It has funds sufficient to maintain normal production and operation;

(4) It has the necessary typesetting, plate-making and binding equipment, with at least 1 pre-press or post-press processing machine manufactured within the most recent 10 years (as of the date of application submission) and not listed in the Restricted and Phased-Out Categories of the Catalogue for Guiding Industry Restructuring;

(5) It has an organizational structure and personnel suited to its business needs;

(6) It has sound business management and financial management systems covering print-job verification, registration, storage, delivery and destruction, as well as a quality assurance system.

Article 8 A printing industry operator engaged in multiple types of printing business activities shall simultaneously meet the qualification conditions for the corresponding categories.

Article 9 The publication administration department shall make a decision to approve or not to approve an application within 20 working days from the date of receipt of the application. Where the application is approved, a printing business license shall be issued, and the types of printing business activities carried out by the printing enterprise shall be noted in the business scope. Where an application to engage in printing business activities is made with a production digital printing machine, the business scope shall be noted as "engaging in the printing of publications, packaging and decorative printed materials and other printed materials by digital printing". Where the application is not approved, the applicant shall be notified and the reasons shall be explained.

Article 10 The publication administration department must examine and approve applications to engage in printing business activities in accordance with these Provisions, and shall not approve applications that do not meet the conditions of these Provisions. Among them, applications to engage in publication printing business activities, or applications to engage in printing business activities with a production digital printing machine, shall be examined and approved by the publication administration department of the provincial people's government. Applications to engage in the printing of packaging and decorative printed materials, to engage in printing business activities involving other printed materials, and to engage in special typesetting, plate-making and binding business activities shall be examined and approved by the publication administration department of the people's government of a city divided into districts.

Article 11 In examining and approving an application to engage in printing business activities, the applicant shall, in addition to complying with these Provisions, also comply with the publication administration department's plans concerning the total number, structure and layout of printing enterprises and other conditions stipulated by laws and regulations.

Article 12 In engaging in printing business activities, a printing industry operator shall, in addition to complying with the above provisions, also meet the following conditions:

(1) The legal representative of the enterprise and the main persons in charge of production and operation must receive regulatory training as required by the publication administration department and obtain the Printing Regulations Training Certificate;

(2) The batch quality of printed products produced by printing operators shall meet national or industry standards;

(3) Annual reports shall be submitted on time through the annual report disclosure platform as required by the publication administration department.

Where the provisions of this Article are violated, the publication administration department of the local people's government at or above the county level shall order correction and, depending on the seriousness of the circumstances, give a warning and impose a fine of up to 30,000 yuan.

Article 13 Administrative approval matters related to printing that fall within the scope of the "separating licenses from certificates" reform shall be handled in accordance with the relevant provisions.

Article 14 The publication administration departments of provinces, autonomous regions and municipalities directly under the Central Government may, in accordance with these Provisions and in light of the actual situation of printing industry administration in their respective regions, formulate implementation rules.

Article 15 These Provisions shall come into force as of the date of promulgation. The Interim Provisions on the Qualification Requirements for Printing Industry Operators issued by the former General Administration of Press and Publication on November 9, 2001, and the Interim Provisions on the Establishment of Foreign-Invested Printing Enterprises issued by the former General Administration of Press and Publication and the former Ministry of Foreign Trade and Economic Cooperation on January 29, 2002, together with their series of supplementary provisions, shall be repealed simultaneously.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-377318.html