China Drafts New Printing License Rules: Lighter Approval, Stronger Oversight for Packaging Printers

On April 29, 2021, China's Ministry of Justice and the official government legal information website released a notice from the National Press and Publication Administration seeking public comments on the Provisions on Qualification Conditions of Printing Business Operators (Draft for Comment). This regulation serves as the legal basis for printing operators applying for a printing business license. The draft signals a policy direction of 'lighter approval, stronger supervision.'

Approval conditions relaxed further

Under earlier 'streamlining administration, delegating power, improving regulation and upgrading services' reforms, the requirement that packaging and decorative printed matter operations have two printing devices produced within ten years and not listed for elimination was removed, and no unit or age requirements are imposed. The draft now goes further by easing the conditions for publication printing applications.

Specifically, the equipment threshold drops from two units to one, and the allowed equipment expands from only automatic folio offset presses to automatic folio offset and flexographic presses, or one production-type digital printing machine.

Supervision measures strengthened

The draft requires applicants for publication printing and packaging and decorative printing to maintain sound business and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction. (For other printed matter and specialized licenses for typesetting, plate-making and binding, the old rules already included such requirements.) It also requires that: (1) the batch quality of printed products meet national or industry standards; and (2) annual reports be filed through the annual report publicity platform. Violations of (1) or (2), or failure to obtain the Printing Regulations Training Certificate, may lead to correction orders, warnings and fines of up to RMB 30,000 by publication authorities at or above the county level, depending on the circumstances.

The draft is now open for public comment from April 29 to May 29, 2021. Stakeholders can submit feedback through three channels.

1. Visit the Ministry of Justice's Chinese government legal information website (www.moj.gov.cn, www.chinalaw.gov.cn) and use the 'Legislative Opinion Collection' section on the homepage main menu.
2. Mail: Printing and Distribution Bureau, Publicity Department of the CPC Central Committee, No. 40 Xuanwumenwai Street, Xicheng District, Beijing, Postal code 100052. Mark the envelope 'Opinions on the Provisions on Qualification Conditions of Printing Business Operators.'
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 These Provisions are formulated under the Regulations on the Administration of the Printing Industry and other relevant laws and regulations. They aim to regulate printing business activities, create a fair competitive market, raise the quality and level of printing supply, and promote high-quality development of the printing industry.

Article 2 For the purpose of these Provisions, printing business operators include entities engaged in publication printing, packaging and decorative printing, and specialized typesetting, plate-making and binding, as well as entities or individuals engaged in other printed matter printing.

Article 3 To apply for publication printing business activities, the following conditions must be met:

(1) Industrial and commercial registration has been completed; the applicant has legal person status; and its business scope covers printing business activities;

(2) The applicant has a fixed production and business site that suits its operational needs;

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

(4) The applicant has the necessary publication printing equipment: at least one automatic folio offset or flexographic printing device produced within the last 10 years (as of the application submission date) and not included in the 'Restricted and Eliminated Categories of the Guidance Catalogue for Industrial Structure Adjustment,' or one production-type digital printing device;

(5) The applicant has an organizational structure and personnel suited to its operational needs;

(6) The applicant has sound operational and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 4 A foreign-invested enterprise applying for publication printing business activities must meet Article 3 conditions and also comply with the restrictive special administrative measures 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.

Preferential opening measures for printing investment by investors from Hong Kong and Macao, the Taiwan region, or other special economic zones are implemented under relevant rules.

Article 5 To apply for packaging and decorative printed matter printing, the following conditions must be met:

(1) Industrial and commercial registration has been completed; the applicant has legal person status; and its business scope covers printing business activities;

(2) The applicant has a fixed production and business site that suits its operational needs;

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

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

(5) The applicant has an organizational structure and personnel suited to its operational needs;

(6) The applicant has sound operational and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 6 To apply for other printed matter printing, the following conditions must be met:

(1) Industrial and commercial registration has been completed, and the business scope covers printing business activities;

(2) The applicant has a fixed production and business site that suits its operational needs;

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

(4) The applicant has production equipment suited to its operational needs;

(5) The applicant has an organizational structure and personnel suited to its operational needs;

(6) The applicant has sound operational and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 7 To apply for specialized typesetting, plate-making and binding activities, the following conditions must be met:

(1) Industrial and commercial registration has been completed; the applicant has legal person status; and its business scope covers printing business activities;

(2) The applicant has a fixed production and business site that suits its operational needs;

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

(4) The applicant has the necessary typesetting, plate-making and binding equipment: at least one pre-press or post-press processing device produced within the last 10 years (as of the application submission date) and not included in the 'Restricted and Eliminated Categories of the Guidance Catalogue for Industrial Structure Adjustment';

(5) The applicant has an organizational structure and personnel suited to its operational needs;

(6) The applicant has sound operational and financial management systems and a quality assurance system covering printing verification, registration, custody, delivery and destruction.

Article 8 A printing business operator engaged in multiple types of printing activities must meet the qualification conditions for all relevant categories at the same time.

Article 9 The publication administration department must decide whether to approve an application within 20 working days of receipt. If approved, it issues a printing business license and states the types of printing activities in the business scope. For applications using a production-type digital printing machine, the business scope must note 'printing publications, packaging and decorative printed matter and other printed matter by digital printing.' If not approved, the applicant must be notified with reasons.

Article 10 Publication administration departments must review printing business applications under these Provisions and may not approve applications that fail to meet the conditions. Applications for publication printing, or applications using a production-type digital printing machine, are reviewed by provincial-level publication administration departments. Applications for packaging and decorative printed matter printing, other printed matter printing, and specialized typesetting, plate-making and binding are reviewed by publication administration departments of districted cities.

Article 11 In addition to these Provisions, approval of printing business applications must also comply with publication administration plans for the total number, structure and layout of printing enterprises, as well as other conditions set by laws and regulations.

Article 12 Printing business operators must, besides meeting the above rules, also satisfy the following:

(1) The legal representative and key production and business managers must receive regulatory training as required by publication administration departments and obtain the Printing Regulations Training Certificate;

(2) The batch quality of printed products must meet national or industry standards;

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

Violations of this Article are subject to correction orders, warnings and fines of up to RMB 30,000 by publication administration departments of local people's governments at or above the county level, depending on the circumstances.

Article 13 Administrative approval matters related to printing within the scope of the 'separation of permits and licenses' reform are handled under relevant rules.

Article 14 Provincial, autonomous region and municipality publication administration departments may formulate implementing rules based on these Provisions and local printing industry management realities.

Article 15 These Provisions take effect 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, along with their supplementary provisions, are repealed at the same time.

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