New Printing License Approval Rules Coming, With Broad Impact on Packaging Printing

On April 29, the Ministry of Justice of the People's Republic of China and the official website of Chinese government legal information published the notice "National Press and Publication Administration Solicit Public Opinions on the <Provisions on Qualification Conditions of Printing Business Operators (Draft for Comment)>". These provisions are the legal basis for printing operators applying for a printing business license. Specifically, the new rules (draft for comment) reflect the approach of "lighter approval, heavier supervision".

Further relaxation of approval conditions

. In addition to the conditions already abolished in previous years' "delegating power, improving regulation and optimizing services" reform - namely that packaging and decorative printed matter required 2 printing devices produced within the last ten years and not included in the list of eliminated items (with no requirement on the number of units or years) - the new rules (draft for comment) once again relax the conditions for applying to engage in publication printing.

(1) The number of required devices is reduced from 2 to 1; (2) the scope is relaxed from only automatic folio offset printing devices to automatic folio offset and flexographic printing devices, or 1 production-type digital printing device.

Further strengthening of supervision measures

. The new rules (draft for comment) require that those applying to engage in publication printing and packaging and decorative printing have sound business management and financial management systems and quality assurance systems covering printing verification, registration, custody, delivery and destruction (for applications to engage in other printed matter and specialized licensing for typesetting, plate-making and binding, the old version already had such requirements); at the same time, the new rules (draft for comment) require that: (1) the batch quality of printed products produced by printing operators shall meet national or industry standards; (2) annual reports shall be submitted through the annual report publicity platform. The new rules (draft for comment) also propose that those who violate the above requirements (1) and (2), or who have not obtained the "Printing Regulations Training Certificate", shall be ordered to make corrections by the publication administration department of the local people's government at or above the county level, and shall be given a warning and a fine of no more than 30,000 yuan depending on the severity of the circumstances.

At present, the new rules are in the public consultation period (April 29 - May 29, 2021). Anyone with opinions can submit them through the following three channels.

1. Log in to the Chinese government legal information website of the Ministry of Justice of the People's Republic of China (URLs: www.moj.gov.cn, www.chinalaw.gov.cn) and submit opinions under the "Legislative Opinion Collection" column in the main menu of the homepage.
2. Mailing address: Printing and Distribution Bureau of the Publicity Department of the CPC Central Committee, No. 40 Xuanwumenwai Street, Xicheng District, Beijing, Postal code: 100052, and mark "Opinions on the Provisions on Qualification Conditions of Printing Business Operators" on the envelope.
3. Email: ysfzc@sina.com.

National Press and Publication Administration

April 29, 2021

The full text of the draft for comment is as follows -

Provisions on Qualification Conditions of Printing Business Operators (Draft for Comment)

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

Article 2 Printing business operators referred to in these Provisions include units engaged in the printing business activities of publications and packaging and decorative printed matter as well as specialized typesetting, plate-making and binding, and units or individuals engaged in the printing business activities of other printed matter.

Article 3 To apply to engage in publication printing business activities, the following conditions shall be met:

(1) Having completed industrial and commercial registration, having legal person status, and having a business scope that includes engaging in printing business activities;

(2) Having a fixed production and business site suited to the needs of the business;

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

(4) Having the necessary publication printing equipment, with more than 1 automatic folio offset or flexographic printing device produced within the most recent 10 years (as of the date of submission of the application) and not included in the "Restricted and Eliminated Categories of the Guidance Catalogue for Industrial Structure Adjustment", or 1 production-type digital printing device;

(5) Having an organizational structure and personnel suited to the needs of the business;

(6) Having sound business management and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 4 Where a foreign-invested enterprise applies to engage in publication printing business activities, in addition to meeting the conditions listed in Article 3 of these Provisions, it shall also comply with the restrictive special administrative measures for access stipulated 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 printing industry investment by investors from Hong Kong and Macao, investors from the Taiwan region, or other special economic zones, such measures shall be implemented in accordance with relevant provisions.

Article 5 To apply to engage in the printing business activities of packaging and decorative printed matter, the following conditions shall be met:

(1) Having completed industrial and commercial registration, having legal person status, and having a business scope that includes engaging in printing business activities;

(2) Having a fixed production and business site suited to the needs of the business;

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

(4) Having the necessary packaging and decorative printing equipment;

(5) Having an organizational structure and personnel suited to the needs of the business;

(6) Having sound business management and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 6 To apply to engage in the printing business activities of other printed matter, the following conditions shall be met:

(1) Having completed industrial and commercial registration, and having a business scope that includes engaging in printing business activities;

(2) Having a fixed production and business site suited to the needs of the business;

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

(4) Having production equipment suited to the needs of the business;

(5) Having an organizational structure and personnel suited to the needs of the business;

(6) Having sound business management and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 7 To apply to engage in specialized typesetting, plate-making and binding business activities, the following conditions shall be met:

(1) Having completed industrial and commercial registration, having legal person status, and having a business scope that includes engaging in printing business activities;

(2) Having a fixed production and business site suited to the needs of the business;

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

(4) Having the necessary typesetting, plate-making and binding equipment, with more than 1 pre-press or post-press processing device produced within the most recent 10 years (as of the date of submission of the application) and not included in the "Restricted and Eliminated Categories of the Guidance Catalogue for Industrial Structure Adjustment";

(5) Having an organizational structure and personnel suited to the needs of the business;

(6) Having sound business management and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 8 Where a printing business operator engages in multiple types of printing business activities, it shall simultaneously meet the qualification conditions of the corresponding categories.

Article 9 The publication administration department shall, within 20 working days from the date of receipt of the application, make a decision to approve or not to approve. Where the application is approved, a printing business license shall be issued, and the types of printing business activities engaged in 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-type digital printing machine, the business scope shall note "engaging in the printing of publications, packaging and decorative printed matter and other printed matter 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 those 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-type 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 business activities of packaging and decorative printed matter, to engage in the printing business activities of other printed matter, and to engage in specialized 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 The examination and approval of applications to engage in printing business activities shall, in addition to complying with these Provisions, also comply with the publication administration department's plans for the total number, structure and layout of printing enterprises and other conditions stipulated by laws and regulations.

Article 12 Where a printing business operator engages in printing business activities, in addition to complying with the above provisions, it shall 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 the printing operator shall meet national or industry standards;

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

Those who violate the provisions of this Article shall be ordered to make corrections by the publication administration department of the local people's government at or above the county level, and shall be given a warning and a fine of no more than 30,000 yuan depending on the severity of the circumstances.

Article 13 Administrative approval matters related to printing that fall within the scope of the "separation of permits and licenses" reform shall be implemented in accordance with 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 management in their respective regions, formulate implementing rules.

Article 15 These Provisions shall come into force on the date of promulgation. The "Interim Provisions on Qualification Conditions of Printing Business 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 abolished at the same time.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-377395.html