(Promulgated by the Propaganda Department of the CPC Central committee, Press and Publications Administration, State Planning Commission, Ministry of Foreign Trade and Economic Cooperation, Customs General Administration, State Administration for Industry and Commerce and National Copyright Agency on June 12, 1996)

1. The CD reproduction referred to in this circular shall mean the engagement in the master-copy carving and reproduction of CD-DA, CD-V, V-CD, CD-ROM, CD-I, CD-G, Photo-CD, CD-R, CD-MO, DVD and LD.

The CD production equipment referred to in this circular shall mean equipment producing the above-mentioned CDs, including precision plastic injectors, high-pressure plastic injectors, and other equipment of the same tariff line.

2. CD production is a restricted industry. Projects in this industry shall be examined and approved according to relevant stipulations of the State Council. To set up a CD manufacturer, it shall be necessary to go through the examination and approval procedures of the Press and Publications Administration for the establishment of audio-visual reproduction units, obtain the Operational Permit for AV Products Reproduction and get registered with the administrative authorities for industry and commerce; only after so doing can it start production. In the case of a foreign-invested project, before getting registered with the administrative authorities, it shall also be imperative to go through formalities of examination and approval with the Ministry of Foreign Trade and Economic Cooperation and obtain the Approval Certificate for a Foreign-Invested Enterprise. At present no more examination approval shall be conducted over any newly-established CD manufacturer.

3. In the case of the CD manufacturers established under the approval of various localities and departments without due authorization, if the equipment is yet to be imported, such importation shall be stopped immediately; if equipment is already imported, they shall not start production; and if production has already been started, they shall immediately stop production and operating activities. Relevant authorities shall immediately approve certificates for such manufacturers and revoke their business licenses. In the case of unauthorized examination and approval, the responsibilities of relevant competent authorities and their executive officials shall be investigated. Regarding the production equipment that has been approved to be imported without due authorization, if it has arrived at ports, all customs houses shall embargo and detain them without any exception; if it has been imported, local administrative authorities for industry and commerce shall seal them up without any exception and wait for the solutions jointly recommended by the Press and Publications Administration and competent authorities.

4. When the existing CD manufacturers apply for updating their CD production equipment, should they fall into the category of projects that benefit emulating the world's science and technology development levels, improving the CD production mix and updating and upgrading technology, the AV administrative departments at the provincial level shall examine them before submitting them to the Press and Publications Administration for examination and approval on a strict basis.

5. When importing such CD production equipment as production lines for CD master-copy carving and reproduction, the customs houses shall, without any exception, inspect and release them upon presentation of the approval documentation from the Press and Publications Administration and the permits from competent authorities; without approval from the Press and Publications Administration, no unit shall import CD production equipment. Upon discovery of importation of CD production lines in other names, the customs houses shall mete out punishment according to law.

6. Upon receipt of this circular, AV administrative authorities in each province, autonomous region and municipality directly administered by the Central Government shall work in concert with competent to authorities conduct a serious sorting out over the situation of CD manufacturers within their respective jurisdictions and, upon discovery of cases of unauthorized approval of equipment importation and illegal production, crack down on them strictly based on law. The Propaganda Departments of the CPC Committees in each province, autonomous region and municipality directly administered by the Central Government shall provide good coordination. The AV administrative authorities in each province, autonomous region and municipality directly administered by the Central Government shall, in a written from and before the end of July 1996, report to the Press and Publications Administration with a copy to the Propaganda Department of the CPC Central Committee regarding the sorting out and crackdowns.

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