Regulations of Shanghai Municipality on The Administration of The Distribution of Publications
（Adopted at the 44th Session of the Standing Committee of the 11th Shanghai Municipal People's Congress on October 28, 2002）

Chapter I General Provisions

Article 1 These Regulations are formulated for the purposes of strengthening the administration of the distribution of publications, developing and prospering cultural undertakings, and promoting the socialist ideological and ethical construction, in accordance with the"Regulations on the Administration of Publications"by the State Council and in the light of this Municipality's actual circumstances.

Article 2 The distribution of publication mentioned in these Regulations refers to the acts of the general distribution, wholesale and retail business operation of newspapers, periodicals, books, electronic publications and audio-video products, and other publications.

Article 3 These Regulations shall apply to the distribution and distribution-related renting, subscription-soliciting, giving-as-compliment, sending-out, and exhibition of publications and the administration thereof in this Municipality's administrative area.Where there are provisions otherwise provided by administrative regulations on audio-video products, such provisions shall prevail.Where there are provisions provided by the postal law on postal enterprises'distribution of newspapers and periodicals, such provisions shall prevail.

Article 4 The Shanghai municipal administrative department of press and publication （hereinafter referred to as MPPA） shall be in charge of the supervisory and administrative work of this Municipality's distribution of publications, and shall be responsible for organizing the implementation of these Regulations.The district and county administrative departments in charge of the administration of publication shall be responsible for the supervisory and administrative work of publication distribution in their respective administrative areas and be under the leadership of the MPPA in professional work.The administrative departments of industry and commerce administration, public security, price control, education, postal service and customs shall, according to their respective duties, do well in supervision and administrative work related to publication distribution.

Article 5 The MPPA shall, according to the actual needs of development of the Municipality and the cultural demands of citizens, work out the development program for publication distribution and, upon approval by the Municipal People's Government, announce the program to the masses.The establishment of distribution units of publications and trading markets of publications shall conform to the requirements of total amount, structure and layout set forth by this Municipality's development program for publication distribution.

Chapter II Licensing of Conducting Publication Distribution

Article 6 This Municipality shall adopt the licensing system of publication distribution and renting. Those who are engaged in publication distribution or renting business shall obtain the"License of Publication Distribution"（hereinafter referred to as the License）.Units that are engaged in general distribution business of publications and chain operation business of nationwide publications shall go through licensing formalities according to the relevant State provisions.Chinese-foreign equitable joint ventures, Chinese-foreign contractual joint ventures and foreign-funded enterprises that are engaged in publication distribution business shall do as provided by the State.

Article 7 Units engaged in publication wholesale business or units and individual persons engaged in publication retail business or renting business shall meet the following conditions:（1） Having managerial personnel that meet the requirements of appropriate qualification;（2） Having fixed business operation sites and necessary business operation facilities; and（3） Having registered capital in compliance with the provisions of laws and regulations.

Article 8 The chain operation of publications includes both direct chain operation and allied chain operation. Units engaged in direct chain operation business shall meet the following conditions:（1） Having legal personality;（2） Having the number of outlets required by the industrial and commercial administrative department;（3） Having the administration system of chain operation as required; and（4） Having the registered capital provided by laws and regulations.The unit engaged in direct chain operation of publications for over one year may conduct allied chain operation business of publications.Those engaged in allied chain operation shall be the units or individual persons of publication distribution established with permission.

Article 9 The unit that sets up the trading market of publications shall have the qualifications for general distribution of publications and have obtained approval from the MPPA.The trading market of publications shall meet the following conditions:（1） Having managerial personnel that meet the requirements of appropriate qualifications;（2） Having the administration system of trading market required by the provisions;（3） Having the registered capital and operation sites in compliance with the provisions of laws and regulations.

Article 10 The unit applying for conducting wholesale, direct chain operation business of publications shall lodge an application to the MPPA.The unit and individual person applying for conducting retail and renting business of publications shall lodge an application to the district/county administrative department in charge of publication administration.

Article 11 The MPPA or the district/county administrative department in charge of publication distribution shall, within 20 days from the date of receiving the application materials for conducting distribution and renting business of publications, make a decision of approval or denial of the application. A permit shall be issued to the approved; and reasons shall be given in writing to the denied.The unit or individual person that has obtained the permit upon approval shall take out the business license from the industrial and commercial administrative department before being allowed to launch any business activity.

Article 12 The chain operation unit of publications that sets up another direct operation outlet in addition shall, within 20 days from the business opening date of the outlet, report to the MPPA for the record; those accepting allied outlets shall, within 20 days from the date of signing an alliance contract, report to the MPPA for the record.

Article 13 If the units or individual persons that distribute or rent publications alter the business scope and business form of publication distribution, they shall go through anew permission formalities according to the provisions of Article 6, Clause 2 and Article 10 of these Regulations. If altering other matters, they shall go through alteration formalities with the original approving authority, the MPPA or the district/county administrative department in charge of publication administration.When the units and individual persons that distribute and rent out publications, terminate the distributing and renting activities, they shall go through cancellation formalities with the original approving authority, the MPPA or the district/county administrative department in charge of publication administration, and surrender the permit.When the chain operation units of publications shut down their direct operation outlets or terminate the allied store contracts, they shall report to the MPPA for the record within 20 days from the date of shutting down their direct operation outlets or terminating allied store contracts.If the units and individual persons that distribute and rent out publications have the cases set forth in the preceding three clauses, they shall go through appropriate formalities with the industrial and commercial administrative department.

Article 14 The units and individual persons that distribute and rent out publications shall go through the annual permit inspection formalities with the original approving authority, the MPPA or the district/county administrative department in charge of publication administration.The MPPA or the district/county administrative department in charge of publication administration shall inspect over the following matters:（1） Conditions for conducting publication distribution and rent out business;（2） Any acts of illegal operation; and（3） Any other acts in violation of the provisions of these Regulations on license administration.Those who fail in the inspection or do not undergo before the deadline the inspection shall not continue to conduct the publication distribution business.

Chapter III Administration of Publication Distribution

Article 15 The units and individual persons that distribute and rent out publications shall do business in the checked and ratified operation sites, and place the permit and business license on the conspicuous position of the checked and ratified operation site.The permit and business license shall not be altered, transferred, leased out or lent.

Article 16 When the units and individual persons that distribute publications, launch distribution business through Internet, they shall report to the original approving authority, the MPPA or the district/county administrative department in charge of publication administration for the record with the permit, website name or the name of website they link to, e-mail address and other relevant materials before launching business.If the units and individual persons that distribute publications launch publication distribution business through Internet, they shall have the number of permit of publication distribution, the permit-issuing department, the number of report for the record, the name of publication in operation, the publishing unit and the standard book number, periodical number, as well as edition number, and the name of import unit for the imported publications, if any, marked on the conspicuous place of website or webpage.

Article 17 The publication trading market shall set up the market administration organization, which shall control over trading activities in the market according to relevant provisions set by the State and this Municipality.

Article 18 Publication wholesale units shall not wholesale publications to any unit or individual person that does not have a licence.Units and individual persons that distribute and rent out publications shall not purchase publications from any unit or individual person that does not have a licence.Publication trading markets shall not provide business sites of publication distribution for any unit or individual person that does not have a licence.

Article 19 Publication wholesale units shall, within three days from the date of purchase, submit the duplicate of purchase voucher to the MPPA for the record.Where any publication is distributed in this Municipality for the first time, the MPPA, if it requires a sample of the publication, shall notify the party concerned in writing. The party concerned shall, within the prescribed time period as notified in writing, provide the publication sample. The MPPA shall, within 10 days from the date of receiving the sample, complete the examination and return the sample to the party concerned, except for the publication sample with contents or cases banned in Article 22 of these Regulations.

Article 20 Publication distributing units, when holding publication exhibition activity in places other than their business sites, shall, before holding the exhibition, report to the district/county administrative department in charge of publication administration in the locality where the exhibition is held for the record.Where the publication distributors association holds publication exhibition activity, the provisions in the preceding clause shall be followed.

Article 21 The distribution units of middle and primary school textbooks shall be designated through bidding or other open and impartial forms by the MPPA and the educational administration together with the competent price control department. Any other units or individual persons shall not conduct the distribution business of middle and primary school textbooks.The distribution units of middle and primary school textbooks shall not sell tie-in or importunately middle and primary school teaching auxiliary materials.

Article 22 No publications or publication publicity materials with contents banned by laws, administrative regulations or other State-set provisions shall be distributed, rent, subscription -solicited, given as compliment, sent out or exhibited.No publications or publication publicity materials imported illegally, infringing upon other persons'copy rights, and having other cases that distribution is banned by laws and regulations shall be distributed, rent, subscription -solicited, given as compliment, sent out or exhibited.The MPPA shall be responsible for the appraisal of publications with contents or cases banned in the preceding two clauses, and its affiliated publication appraisal agency may undertake the specific appraisal work.

Article 23 The MPPA or the district/county administrative department in charge of publication administration, when, based on the obtained evidence of suspected offence or on tip-offs, making investigation over acts suspected of conducting illegal publication distribution, may examine articles related to illegal activities, and may seal up or distrain articles proved with evidence to be related to illegal activities. Administrative law enforcers shall produce law-enforcement certification when performing official duties.In respect to publications whose distribution is banned by notification of the MPPA or the district/county administrative department in charge of publication administration, the unit or individual person engaged in the distribution business of the publications shall promptly hand them in or wait for handling, with no concealment, sell off, shift or destruction of such publications being allowed.

Chapter IV Legal Liability

Article 24 Where the"Regulations on Administration of the Publication"have provided penalties on acts that violate the provisions of these Regulations, such acts shall be punished in accordance with the"Regulations on Administration of the Publication".The following acts in violation of the provisions of these Regulations shall be punished by the MPPA or the district/county administrative department in charge of publication administration according to the seriousness of the cases:（1） Those who, in violation of the provisions of Article 6, Clause 1 of these Regulations, conduct publication renting business without licence shall be ordered to stop their illegal acts, their illegal gains shall be confiscated, and they shall be penalized with a fine of less than 2,000 yuan.（2） Those who, in violation of the provisions of Article 9 Clause 1 of these Regulations, set up publication trading markets without authorization, shall be ordered to stop their illegal acts, their illegal gains shall be confiscated and they shall be penalized with a fine of between not less than twice and not more than ten times the illegal gains if the illegal gains is more than 10,000 yuan. If there are no illegal gains or if the illegal gains are less than 10,000 yuan, they shall be penalized with a fine of between not less than 5,000 yuan and not more than 20,000 yuan.（3） Those who, in violation of the provisions of Article 12, Article 16 Clause 1 of these Regulations, add a direct operation outlet, take in an allied store, or launch publication distribution business through Internet without reporting for the record as required shall be ordered to correct within a prescribed time period, and, if they fail to correct before the deadline, their illegal gains shall be confiscated, and they shall be penalized with a fine not less than 100 yuan and not more than 1,000 yuan.（4） Those who, in violation of the provisions of Article 13 Clause 1 of these Regulations, fail to go through the permit alteration formalities shall be ordered to correct within a prescribed time period, and be penalized with a fine of between not less than 100 yuan and not more than 500 yuan.（5） Those who, in violation of the provisions of Article 15 Clause 1 of these Regulations, do business in a place other than the checked and ratified operation site shall be ordered to correct, and shall be penalized with a fine of between not less than 500 yuan and not more than 5,000 yuan.（6） Those who, in violation of the provisions of Article 15 Clause 2 of these Regulations, alter, transfer, lease or lend the license shall be ordered to correct within a prescribed time period, their illegal gains shall be confiscated and they shall be penalized with a fine of between not less than 1,000 yuan and not more than 10,000 yuan. If the case is serious, the wrongdoer shall be cumulatively ordered to stop business for rectification, or have the licence revoked.（7） Any unit or individual person engaged in publication distribution and renting business, or publication trading markets that, in violation of the provisions of Article 18 of these Regulations, wholesale, or purchase publications from or provide publication operation sites for units or individual persons who do not have the licence, shall have the publications and illegal gains confiscated and shall be penalized with a fine of between not less than 500 yuan and not more than 5,000 yuan. If the case is serious, the wrongdoer shall be cumulatively ordered to stop business for rectification, or have the licence revoked.（8） Those who, in violation of the provisions of Article 19 of these Regulations, fail to submit duplicates of purchase vouchers for the record, or fail to provide samples of publications, shall be ordered to correct within a prescribed time period and, if they fail to correct before the deadline, they shall be penalized with a fine of 500 yuan for each kind of publications.（9） Those who, in violation of the provisions of Article 21 Clause 2 of these Regulations, sell tie-in or importunately middle and primary school teaching auxiliary materials, shall be ordered to stop their illegal acts, have their illegal gains confiscated, and be penalized with a fine of between not less than 1,000 yuan and not more than 5,000 yuan.（10） Those who, in violation of the provisions of Article 22 of these Regulations, rent out, solicit subscriptions for, give as a compliment, send out or exhibit publications or publication publicity materials with the banned contents or cases shall have the publications or publication publicity materials and illegal gains confiscated and be penalized with a fine of between not less than twice and not more than ten times the illegal gains which is more than 10,000 yuan, or be penalized with a fine of between not less than 5,000 yuan and not more than 20,000 yuan if there are no illegal gains, or if the illegal gains are less than 10,000 yuan. If the case is serious, the wrongdoer shall be cumulatively ordered to stop business for rectification or have the licence revoked.

Article 25 Where a person purchases publications, in violation of the provisions of these Regulation, from units or individual persons that do not have the licence or rents, solicits subscriptions for, gives as a compliment, sends out or exhibits publications or publication publicity materials with contents or cases set forth in Article 22 of these Regulations, and that person gives or identifies the source which proves true after verification, the administrative punishment set forth in these Regulations other than the confiscation of publications, publication publicity materials and illegal gains may be mitigated or exempted.

Article 26 Those who resist or impede the functionaries of administrative departments in performing their duties according to law, to an extent not serious enough for criminal punishment shall be dealt with by the public security department according to the"Regulations of the People's Republic of China on Public Security Administration and Imposition of Punishment". If the wrongful act constitutes a crime, the wrongdoer shall be prosecuted for criminal liability.

Article 27 The party concerned who is dissatisfied with the specific administrative act made by the MPPA or the district/county administrative department in charge of publication administration may, according to the"Law of the People's Republic of China on Administrative Reconsideration"or the"Administrative Litigation Law of the People's Republic of China", apply for administrative reconsideration or lodge an administrative lawsuit.The party concerned who does not apply for reconsideration of a specific administrative act before the deadline, nor lodges a lawsuit, nor performs the specific administrative act, the MPPA or the district/county administrative department in charge of publication administration that does the specific administrative act may apply to the people's court for enforcement.

Article 28 The persons-in-charge taking direct responsibility of the MPPA or the district/county administrative department in charge of publication administration, or other directly responsible persons who neglect their duties, abuse their powers, or engage in malpractice for selfish ends shall be given administrative sanctions by their work unit or higher competent authorities according to law. If the wrongful act constitutes a crime, the wrongdoer shall be prosecuted for criminal liability according to law.

Chapter V Supplementary Provisions

Article 29 The definitions of terms relevant to these Regulations are as follows:Newspapers mean the serial publications with permanent names, printing time, format and with one issue a week at least.Periodicals mean the serial publications with permanent names and columns, and serial number of volumes, issues or in order of year, season, month, ten-day or week, and bound into book form.Books mean publications of all kinds of books, pictorials, wall calendars, pictures, New Year pictures, and single-page calendars.Electronic publications mean mass media in which information such as pictures, wordings, sounds and images are stored in the form of digital code into magnet, optical or electric medium after editing and processing and read or used through computers or devices with similar functions so as to be utilized for expressing thought, disseminating knowledge and accumulating culture, and to be copied for distribution.

Article 30 These Regulations shall become effective on January 1, 2003. The"Regulations of Shanghai Municipality on the Administration of Markets of Books, Newspapers and Periodicals"shall be repealed at the same time