By the Ministry of Culture and the General Administration of Customs of the People's Republic of China

(August 5, 1999)

In order to regulate the administration of the import of audio-video products, Order 17 of the Ministry of Culture and the Customs General Administration promulgated the Administrative Measures on Import of Audio-Video Products (hereinafter referred to as the Measures) on April 30, 1999. To address specific issues in implementing theMeasures, we now issue notice as follows:

1. After the structural reform of the State Council, the Ministry of Culture is specified to be responsible for the administration of audio-video products ofChina. The articles 2, 3, 4, 16, 19 of theMeasuresclarify the definition of audio-video products, scope of administration, functions and responsibilities, customs inspection and release voucher for audio-video products import. Digital publications, jointly-produced films and TV plays, various CDs for processing consigned by enterprises inland to those abroad, or the mother CDs for processing consigned by enterprises abroad to those inland are exceptions of these measures and shall be administered in accordance with relevant provisions.

2. Issue of the operation units of audio-video products import. Mother tapes or CDs (with significant distinction in from and specifications from the audio-video products played with family players) for the production and replication of audio-video products shall be imported by publishing units with import authorization verified by the Ministry of Culture; finished audio-video products directly for sale shall currently be imported by the China National Publication Import and Export (Group) Corporation (CNPIEC) (new units verified subject to notice); sample tapes and CDs (audio-video products on the market for family players) for examination shall be imported by audio-video units (including audio-video import and publishing units, copyright agencies, audio-video production units, etc.).

3. Issue of customs inspection and release vouchers for audio-video products import. Finished audio-video products and mother tapes (CDs) for commercial use shall be inspected and released by customs based on theCertificate for Publication of (Imported) Productssealed with the special stamp for the examination of audio-video products of the Ministry of Culture (sample stamp attached); the import of sample tapes (CDs) of audio-video products and a few audio-video products for non-commercial or private use shall be inspected and released by customs based on thePick-up Bill of Imported Sample Audio-Video Tapes (CDs)stamped and issued by the Ministry of Culture or audio-video products administrations of provinces, autonomous regions, municipalities directly under the Central Government. It is prohibited to use thePick-up Bill of Imported Sample Audio-Video Tapes (CDs)to pick up mother tapes, mother CDs or audio-video products for sales. When customs find illegal use of thePick-up Bill of Imported Sample Audio-Video Tapes (CDs)to pick up mother tapes, mother CDs or discrepancies between documents and goods, new import certificates are required, and the imported goods shall be detained temporarily. OneCertificate for Publication of (Imported) Productsand onePick-up Bill of Imported Sample Audio-Video Tapes (CDs)shall only be used for one lot, and should not be used repeatedly or modified in content. The import documents shall be used at specified port, and shall not be transferred; documents for the general company shall not be used for the import of audio-video products by subsidiary companies.

4. Administrations like the registration and filing, export cancellation after verification of material imported by enterprises importing material or accepting customers' material for processing for the production and export of Audio or Video CDs shall be executed in accordance with relevant provisions in theEmergent Notice on Enhancing Administration on the Replication of Audio and Video CDs(DOC NO 5 in 1994) jointly issued by the Publicity Department of the CPC Central Committee, the State Press and Publication Administration, the State Administration of Industry and Commerce, and the National Copyright Administration. According to the provision in Article 26 of theManagerial Ordinance on Audio-Video Products, audio-video replication units, when accepting mother tapes or stencils from abroad for replication, shall send the mother tapes or stencils to the administrations of audio-video products of the province, autonomous region or municipalities for content examination, take the authorization of the copyright owners to the administrations of copyright for registration, and resell all the replicated audio-video products abroad; domestic sales of these products are prohibited. Domestic sales of such products, if any, shall be disposed in accordance with thePunishment Measures on Illegal Domestic Sales of Processed Goods with Protective Tariff of the Customs of the People's Republic of China(Order 76 of the General Administration of Customs of the People's Republic of China).

5. The administration on the import of CDs consigned by inland audio-video commercial units to enterprises abroad shall follow the provisions in theNotice on Enhancing Administration of CD Processing Cosigned to Enterprises Abroad(DOC 560 in 1998) of the State Press and Publication Administration. The Customs shall conduct import procedures based on the approval documents of the State Press and Publication Administration.

6. The Customs shall consult relevant administrations for the import of programs for radio and TV broadcasting before additional notification.

7. As for imports accompanying with the mechanical equipment like CDs and diskettes for containing OS, equipment specifications and special software listed in Article 23 of theMeasures, the customs shall conduct inspection and release based on valid documents like contracts, invoices provided by the import units.

8. The provision on the Import Admissions for the nine commodity codes of 85244010、85244091、85244099、85243100、85249110、85249120、85249190、85243920、85249920 in Appendix I of theMeasuresis cancelled. The Customs shall no longer examine and verify theCertificate for Publication (Imported) ofAudio-Video Productsor thePick-up Bill of Imported Sample Audio-Video Tapes (CDs) for the above-mentioned nine commodity codes during the inspection and release.

This Notice shall come into effect as of the date of its promulgation.