China Unveils National Printing and Reproduction Demonstration Enterprise Measures: 2012 Rules Aim at Industry Upgrade

Article 1: The Measures were introduced to carry out the State Council’s Cultural Industry Revitalization Plan, which calls for building printing and reproduction industry demonstration bases. They aim to assess printing and reproduction enterprises by category, set rules for establishing and managing National Printing and Reproduction Demonstration Enterprises, and let such enterprises guide and influence the shift in development model, industrial structure and industry quality. The ultimate goal is to help China become a world printing power.

Article 2: A National Printing and Reproduction Demonstration Enterprise is a leading printing or reproduction company or group that demonstrates nationwide best practice. It must be qualified, law-abiding, well managed, technologically advanced, strong in products and performance, innovative and energy-saving, talent-rich and honest in business.

Article 3: The purpose is to identify, designate, support and publicize model backbone enterprises or groups. This is expected to optimize the industrial structure, cultivate competitive firms, speed up independent innovation and technology progress, encourage energy conservation and emission reduction, promote green printing, and drive industry-wide transformation and upgrading.

Article 4: The General Administration of Press and Publication (GAPP) is responsible for the national plan covering total number, structure and layout, as well as review, recognition and management. Provincial-level press and publication authorities handle preliminary review, applications and day-to-day management.

Article 5: Starting in 2012 and by the end of the Twelfth Five-Year Plan period, China aims to establish about 100 National Printing Demonstration Enterprises and about 10 National Optical Disc Reproduction Demonstration Enterprises. Their guiding and radiating effects should become clear, backbone firms should gain competitiveness, industrial division of labor should be rational, regions should develop in coordination, and a relatively complete modern printing and reproduction system should take shape.

Article 6: To qualify, a National Printing and Reproduction Demonstration Enterprise must meet the following conditions:

(1) Lawful operation

It must model compliance with the Regulations on the Administration of Publication, the Regulations on the Administration of the Printing Industry, the Regulations on the Administration of Audio-Visual Products, the Measures for the Administration of Reproduction and other rules. It must have no piracy or illegal printing record and no administrative penalty from press and publication authorities in the past three years.

(2) Scale and efficiency

Main economic efficiency indicators and overall labor productivity must rank among the top in China’s same industry, with profits in the past three audited financial years. Printing enterprises need total assets above RMB 300 million (above RMB 100 million for those mainly in publication printing or digital printing) and annual sales above RMB 500 million (above RMB 200 million for those two categories), or total sales above RMB 1 billion over the past three years (above RMB 500 million for those two categories) with average annual growth above 20% during the period, plus annual tax payments above RMB 10 million. Read-only optical disc reproduction enterprises need annual output above 100 million discs, sales above RMB 120 million and annual tax payments above RMB 5 million. Recordable optical disc producers need annual output above 250 million discs, sales above RMB 280 million and annual tax payments above RMB 10 million.

(3) Technology and equipment

Key production equipment must be advanced in the industry. Printing enterprises must have multi-color high-speed, automatic or inline equipment, or strong capabilities in digital printing, flexographic printing, digital automatic control of printing equipment, digital asset management, computer-to-plate and digital workflows. Optical disc reproduction enterprises must have DVD, DVDR or high-definition optical disc production lines and supporting testing equipment.

(4) Innovation and R&D

R&D spending must reach a set share of sales revenue: no less than 1% for printing enterprises and no less than 4% for optical disc reproduction enterprises. Companies must have a provincial-level enterprise technology center or R&D institution, hold authorized rights in numbers ranking among the top in China’s same industry, and show substantive innovation and relatively mature results in new product expansion, industrial chain extension and business model exploration.

(5) Management system

Enterprises must have a standardized modern property rights system and sound management mechanisms; quality management system certification; production according to advanced domestic standards with product quality tested as compliant; a network-based enterprise management information system; and a complete work safety management system with clear responsibilities. No major work safety accident may have occurred in the past three years.

(6) Green and environmental protection

Enterprises must actively carry out green production, obtain environmental management system and related green certifications, implement cleaner production audits, use compliant raw and auxiliary materials, apply energy-saving, emission-reducing and cleaner production equipment, materials and processes, and meet national environmental standards for emissions, energy conservation and other indicators. Printing enterprises must meet the national green printing standard.

(7) Talent team

Enterprises must have strong management and technical R&D teams. In printing enterprises, at least 70% of staff must have a college degree or above or an intermediate or higher professional title (including intermediate skilled worker or above), and at least 20% must be technical personnel (including technician or above). In optical disc reproduction enterprises, at least 90% must have a college degree or above or an intermediate or higher title, and at least 20% must be technical personnel.

(8) Local support

The province, autonomous region or municipality directly under the Central Government where the enterprise is located must provide practical support policies and measures for establishing the national demonstration enterprise.

Article 7: To encourage printing enterprises to go global, those meeting the following conditions may be recognized as National Printing Demonstration Enterprises: overseas printing and processing business accounts for more than 30% of total main business volume, and annual overseas processing turnover reaches USD 20 million; return on total assets is higher than the bank loan interest rate for the same period; no arrears in taxes, wages or social insurance contributions; asset-liability ratio generally below 60%; and bank credit rating AA or above (including AA). Their product quality, product technology content and new product development capability should be high in the same industry, raw material utilization should be high, and main business should comply with national industrial, environmental and quality management policies and standards.

Article 8: Recognition follows voluntary application, preliminary review, final review and approval. Any printing or reproduction enterprise meeting Article 6 or Article 7 may apply to become a National Printing and Reproduction Demonstration Enterprise.

Article 9: An enterprise submits the Application Form for National Printing and Reproduction Demonstration Enterprise (see attached table) to the county or city press and publication authority. After verification, the form goes to the provincial-level authority for preliminary review. If approved, the provincial authority sends a written report and application materials to GAPP. The report must also state local support policies and measures.

Article 10: GAPP organizes an expert review panel to assess and finally review enterprises recommended by provincial-level press and publication authorities.

Enterprises that pass assessment and final review are publicly announced on GAPP’s portal (www.gapp.gov.cn) for 7 days.

After the public notice, GAPP recognizes them as National Printing and Reproduction Demonstration Enterprises, grants the title of National Printing Demonstration Enterprise or National Optical Disc Reproduction Demonstration Enterprise, issues a plaque and certificate, and announces them through the media.

Article 11: For recognized enterprises, GAPP recommends support and rewards from local people’s governments. They enjoy the following preferential support:

(1) Project funding

GAPP gives priority support in industrial development projects and development funds to recognized printing and reproduction enterprises.

(2) Industrial policy

For recognized Sino-foreign joint venture or cooperative publication printing enterprises, other printed matter printing enterprises or read-only optical disc reproduction enterprises, the foreign side may hold a controlling or leading position, but the Chinese side’s share or interest must not be less than 30%.

(3) Management measures

When recognized enterprises accept commissions to print or reproduce products from outside China, provincial-level press and publication authorities may, while ensuring cultural security and based on actual management needs, simplify approval procedures and improve efficiency.

(4) Selection and awards

In assessments such as the China Government Award for Publication (Printing and Reproduction Award), National Key Cultural Export Enterprise and National Cultural High-Tech Enterprise, recognized enterprises are prioritized under equal conditions.

(5) Imported equipment

A recognized optical disc reproduction enterprise may import cost-effective optical disc reproduction production equipment from outside China that has been in use for less than 3 years. However, total imported equipment of all types must not exceed 30% of the enterprise’s original total equipment, and imported equipment may only be used by the enterprise itself.

Article 12: GAPP and provincial-level press and publication authorities conduct follow-up management. Under the principle of target-based assessment, dynamic management and eligibility to enter or exit, an annual assessment mechanism is established and improved. Annual assessment combines written review and on-site evaluation. Procedures are as follows:

(1) A demonstration enterprise submits a previous-year summary to the provincial-level press and publication authority by the end of January each year.

(2) After reviewing the summary, the provincial-level authority submits the region’s development status, review opinions and related materials to GAPP by the end of February each year.

(3) GAPP organizes an expert panel to assess the enterprises and determine annual results. Those failing the assessment lose their title.

Article 13: GAPP circulates the annual assessment results, publicly announces them through media, and releases an annual development report on National Printing and Reproduction Demonstration Enterprises.

Article 14: GAPP directly revokes the title and announces it through media under any of the following:

(1) serious violation of relevant provisions in the Regulations on the Administration of Publication, the Regulations on the Administration of the Printing Industry and the Regulations on the Administration of Audio-Visual Products, where circumstances are serious;

(2) major production safety or quality accident causing serious consequences;

(3) other serious illegal or non-compliant acts.

Article 15: GAPP interprets these Measures.

Article 16: These Measures take effect on January 1, 2012.

Source note: This material is from China Packaging Network (pack.cn); original link: http://news.pack.cn/show-361990.html