China Publishes Full Digital Printing Management Measures: Licensing, Chain Operations and Compliance Deadlines

Executive summary

China has issued the full text of the long-awaited Measures for the Administration of Digital Printing. The policy is widely seen as a timely regulatory step for the digital printing market.

Measures for the Administration of Digital Printing

Article 1: These Measures are made under the Regulations on Publication Administration, the Printing Industry Administration Regulations and other relevant laws to regulate digital printing business and support its healthy growth.

Article 2: The Measures cover business activities that use production-type digital printing machines to print publications, packaging and decorative printed materials, and other printed items (digital printing business).

A production-type digital printing machine is defined as digital printing equipment with relatively high speed, stable print quality and the ability to run industrialized, continuous and batch production.

Such machines must be supported by digital workflows; high-speed digital multifunction devices are not classified as production-type digital printing machines.

Article 3: The General Administration of Press and Publication oversees digital printing nationwide. Local press and publication authorities at or above county level handle supervision within their areas.

These local authorities are expected to guide and supervise digital printing enterprises in their jurisdictions and to strengthen training on relevant laws and regulations for digital printing operators.

Article 4: The State supports and encourages digital printing enterprises to adopt new technologies, develop new business models and offer new services.

Digital printing enterprises must set up quality assurance systems, and printed products must meet national and industry standards.

Chapter II Establishment of Enterprises

Article 5: Digital printing business is subject to a licensing regime. Without a license, no entity or individual may carry out digital printing business.

Article 6: A digital printing enterprise must meet the following conditions:

(1) it has a company name and articles of association;

(2) it has a defined business scope;

(3) it has a fixed production and operation site suited to the business scope, with a building area of at least 50 square metres;

(4) it has funds to maintain normal operations, with registered capital of at least RMB 1 million;

(5) it has at least one production-type digital printing machine;

(6) it has an organisational structure and staff suited to the business scope;

(7) it meets other conditions set by relevant laws and administrative regulations.

In addition to the above, approval for a digital printing enterprise must align with national planning for the total number, structure and distribution of printing enterprises.

Article 7: An applicant should file with the provincial press and publication authority where it is located and submit the following documents:

(1) an application stating the applicant's name and address, the legal representative or principal person in charge, their name and address, funding source and amount, capital structure, and the main matters applied for;

(2) the enterprise name pre-approval notice and articles of association;

(3) a capital credit certificate issued by a statutory capital verification body;

(4) a feasibility study report;

(5) proof of the business site and necessary production conditions;

(6) identity and resume proof of the legal representative or principal person in charge.

Article 8: The provincial press and publication authority must decide whether to approve within 20 days of accepting the application and notify the applicant. If approved, it issues a Printing Business License, with the business scope marked as printing publications, packaging and decorative printed materials and other printed items by digital printing. If rejected, reasons must be given.

Within 20 days of issuing the Printing Business License, the provincial authority must file the approval document and copies of the license (original and duplicate) with the General Administration of Press and Publication.

Article 9: Digital printing business may be operated through chain stores.

A digital printing chain operates under the unified management of its chain headquarters and follows standardised management.

In addition to Article 6, a digital printing chain must meet management requirements for direct-operation chains, franchised chains and similar models. It must consist of at least five chain outlets, and the chain headquarters must have registered capital of at least RMB 5 million.

Article 10: To establish a digital printing chain, the headquarters must submit the Article 7 application materials, a list of sites for the headquarters and outlets, and an operating plan to the provincial press and publication authority where it is located. After the headquarters is licensed, each outlet files with its local provincial authority using a copy of the headquarters' Printing Business License and the headquarters' application materials, obtains the original and duplicate Printing Business License, and has its business scope marked as printing publications, packaging and decorative printed materials and other printed items through digital printing chain operations.

Article 11: A foreign-invested digital printing enterprise must comply with these Measures and also meet the foreign and Chinese investment ratio and rights requirements in the Interim Provisions on the Establishment of Foreign-Invested Printing Enterprises and its supplementary rules.

Article 12: Existing enterprises already engaged in printing publications, packaging and decorative printed materials or other printed items may conduct digital printing within their originally approved business scope without going through digital printing approval procedures.

If such enterprises go beyond their originally approved scope for digital printing, they must follow Articles 6 to 8 and complete digital printing approval procedures with the provincial press and publication authority where they are located.

Chapter III Business Operations Management

Article 13: Digital printing enterprises must strictly observe national laws and regulations and accept routine supervision by local press and publication authorities.

The legal representative or principal person in charge must regularly attend business training organised by press and publication authorities and obtain a Printing Regulations Training Certificate issued by the provincial press and publication authority.

Article 14: Digital printing enterprises must establish and improve systems for print commissioning, print verification, print registration, printed product storage, printed product delivery, and destruction of defective print activity products.

Article 15: A digital printing enterprise must display its Printing Business License in a prominent place at its business site.

Those conducting printing business via the internet must publicly display the Printing Business License in a prominent place on the website homepage.

Article 16: When commissioned to print publications, a digital printing enterprise must verify the printing commission letter and other statutory documents under the Printing Industry Administration Regulations.

Article 17: When commissioned to print packaging and decorative printed materials and other printed items, a digital printing enterprise must complete the relevant procedures under the Printing Industry Administration Regulations.

Article 18: Where a digital printing chain has a standardised, unified business management system and accepts publication printing commissions under the unified organisation of the chain headquarters, the headquarters or the outlet accepting the commission verifies and keeps the relevant printing commission letter and publication sample for inspection; other outlets are exempt from related procedures.

Chapter IV Legal Liability

Article 19: Unapproved digital printing business activities will be banned by public security and industry and commerce authorities within their statutory powers.

Article 20: Digital printing enterprises that violate relevant rules face administrative penalties under the Printing Industry Administration Regulations; in serious cases, the original licensing authority revokes the license; if a crime is constituted, criminal liability is pursued according to law.

Article 21: The headquarters of a digital printing chain must strengthen management of the daily operations of its outlets.

If an outlet receives an administrative penalty of a fine or more from a press and publication authority, the penalty authority must file the result with the provincial press and publication authority where the chain headquarters is located. If an outlet receives two or more such penalties within one year, the headquarters must remove the outlet or end the chain relationship, and the original licensing authority must revoke the outlet's Printing Business License under the serious circumstances provisions of the Printing Industry Administration Regulations.

If one-third or more of outlets receive an administrative penalty of a fine or more within one year, the provincial press and publication authority must order the headquarters to rectify. If rectification fails, the original licensing authority must revoke the Printing Business Licenses of the headquarters and all outlets under the serious circumstances provisions of the Printing Industry Administration Regulations.

Article 22: Enterprises already engaged in digital printing before these Measures take effect must complete relevant procedures with the provincial press and publication authority within 180 days from the effective date.

Article 23: These Measures take effect on 1 February 2011.

Source: China Packaging Network (pack.cn), original link: http://news.pack.cn/show-362135.html