Regulations on Administration of Films

(Adopted on December 12，2001 at the 50th Executive Meeting of the State Council，Promulgated on December 25，2001 by the State Council of the People's Republic of China as Decree No.342 and effective as of February 1，2002)

Chapter Ⅰ　General Provisions

Article 1　These Regulations are formulated for the purposes of improving administration of the film industry，facilitating its development and flourishing，satisfying the needs of people's cultural life and promoting socialistmaterial，cultural and ethical progress.

Article 2　These Regulations shall apply to the activities conducted within the territory of the People's Republic of China with regard to the production，import，export，distribution and projection of feature films，documentary films，science and educational films，cartoons and puppet films，films on special subjects，etc.

Article 3　The production，import，export，distribution and projection of films shall be conducted in compliance with the Constitution，pertinent laws and regulations，and shall persist in the orientation of serving the people and socialism.

Article 4　The radio，film and television administration department of the State Council shall be in charge of the film industry nationwide.

The film administration departments of the local people's governments at or above the county level(hereinafter referred to as the film administration departments)shall，in accordance with the provisions of these Regulations，be responsible for film administration within their respective administrative areas.

Article 5　The State institutes a licensing system for the making，import，export，distribution and projection of films and for the showing to the public.No unit or individual may，in the absence of license，engage in the making，import，distribution or projection of films，nor import，export，distribute or project films that have not been licensed.

The licenses or documents of approval issued in accordance with these Regulationsmay not be rented，lent or sold or transferred in any other ways.

Article 6　National associations of the film industry shall，in accordance with their articles of association，exercise self-disciplinary administration under the guidance of the radio，film and television administration department of the State Council.

Article 7　The State rewards the units and individuals that have made outstanding contributions to the development of the film industry.

Chapter Ⅱ　Production of Films

Article 8　The establishment of a studio shallmeet the following requirements:

(1)having a name and articles of association for the studio to be established;

(2)having its sponsor and competent administration authority approved by the radio，film and television administration department of the State Council;

(3)having a defined scope of business;

(4)having the organizations and professionals that meet the needs of its scope of business;

(5)having the funds，premises and facilities that meet the needs of its scope of business;and

(6)other requirements provided for in laws and administrative regulations.

In addition to the requirements set forth in the preceding paragraph，the establishment of a studio to be examined and approved shall also comply with the planning worked out by the radio，film and television administration department of the State Council regarding the total number of studios，the geographical distribution and the structures.

Article 9　The application for establishing a studio shall，upon the examination and consent of the film administration department of the local people's government of a province，an autonomous region or amunicipality directly under the Central Government，be submitted to the radio，film and television administration departmentof the State Council for examination and approval.

The following particulars shall be stated clearly in the application:

(1)name，address，and nature of ownership of the studio to be established;

(2)name，address and nature of the studio's sponsor，and its competent administration authority;

(3)name and address of the studio's legal representative，and the documents certifying his qualifications;and

(4)source and amount of funds for the studio to be established.

Article 10　The radio，film and television administration department of the State Council shall，within 90 days from the date of receipt of the application for establishing a studio，decide whether or not to approve the application and inform the applicant of its decision.If the application is approved，the radio，film and television administration department of the State Council shall issue a Film-Making Permit to the applicant，and the applicant shall，by presenting the Permit，go through the registration formalities with the administrative department for industry and commerce of the State Council to obtain a business license according to law;if the application is not approved，it shall give the reasons therefor.

Article 11　A studio shall，with its entire legal person property，enjoy civil rights and assume civil liabilities according to law.

Article 12　Where a studio is tomake any changes or terminate its business，it shall make a report to the radio，film and television administration department of the State Council for approval，and shall go through the formalities for registering such changes or having the registration cancelled at the original administrative department for industry and commerce in accordance with law.

Article 13　A studiomay engage in the following activities:

(1)making films;

(2)producing，in accordance with the relevant provisions of the State，duplicates of the films it hasmade;

(3)distributing throughout the country，in accordance with the relevant provisions of the State，the filmsmade by it and allowed to be shown to the public，and their duplicates;and

(4)exporting，in accordance with the relevant provisions of the State，the filmsmade by it and allowed to be shown to the public，and their duplicates.

Article 14　Studios shall establish and improve a management system so as to guarantee the quality of the filmsmade by them.

Article 15　Studios shall，according to law，enjoy the copyright of the filmsmade by them.

Article 16　Where a unit other than a studio intends to engage in film-making business independently，it shallmake a report to the radio，film and television administration department of the State Council for approval，and shall，by presenting the document of approval，go through corresponding formalities for registration with the administrative department for industry and commerce.

The unit other than a studio shall，beforemaking a film upon approval，obtain in advance a just-for-once Film-Making Permit( for One Film)from the radio，film and television administration department of the State Council，and shall enjoy the rights and assume the obligations as a studio.Specific measures therefor are to be formulated by the radio，film and television administration department of the State Council.

Article 17　The State encourages enterprises，institutions and other public organizations，and individuals to participate in the making of films by providing funds or making investment.Specific measures therefore are to be formulated by the radio，film and television administration department of the State Council.

Article 18　A studio may，upon approval of the radio，film and television administration department of the State Council，make films in collaboration with film producers from abroad.No other units or individualsmaymake films in collaboration with film producers from abroad.

A studio and the unit holding a Film-Making Permit(for One Film)may，upon approval of the radio，film and television administration department of the State Council，go abroad to make films.

No organizations or individuals from abroad may independently make films within the territory of the People's Republic of China.

Article 19　Tomake a film in collaboration with a foreign producer，the Chinese side shall in advance apply to the radio，film and television administration department of the State Council for confirmation of the project.After consulting the departments concerned and finding，through examination，that the project conforms to the pertinent provisions，the said department shall issue to the applicant a justfor-once Film-Making Permit for Sino-Foreign Collaborators.After having procured the Permit，the applicant shall，in accordance with the provisions of the radio，film and television administration department of the State Council， sign a contract formaking a film with the foreign collaborator.

Article 20　Where it is necessary to import equipment，apparatus，cine-films or props formaking films in collaboration with foreign producers，the Chinese side shall，by presenting the document of approval issued by the radio，film and television administration department of the State Council，go through the formalities for their import or temporary import with the Customs.

Article 21　When making filmswithin the territory of the People's Republic of China in collaboration with Chinese producers or in other ways，film producers from abroad shall abide by the laws and regulations of the People's Republic of China and respect the customs and habits of the ethnic groups of Chinese nation.

Article 22　The development and final-period production of the negative and working print of a film shall be completed within the territory of the People's Republic of China.Where they really need to be completed abroad due to special technical requirements，a separate application to such an effect shall be submitted to the radio，film and television administration department of the State Council for approval and the work shall be done in compliance with the requirements specified in the document of approval.

Article 23　No film-developing unitmay develop or process the negative or working print of a film made by a unit that has not procured the Film-Making Permit or the Film-Making Permit(for One Film)，nor develop or process the copy of a film for which no Permit for Public Projection of Films has been procured.

If accepting commissions to develop or process the negative or working print or the copy of a film from abroad，the film-developing unit concerned shall in advance be subject to the approval of the radio，film and television administration department of the State Council and，by presenting the document of approval，go through the relevant import formalities with the Customs according to law.The developed or processed negative，working print or copy of the film shall all be shipped out of the Chinese territory.

Chapter Ⅲ　Film Censorship

Article 24　The State institutes a system of film censorship.

No film that has not passed censorship by the film censorship authority of the radio，film and television administration department of the State Council(hereinafter referred to as the film censorship authority)may be distributed，projected，imported or exported.

The import of a film on a special subject for the purpose of scientific research or for reference in teaching and the import of a reference film by the China Film Archive shall be dealtwith in accordance with the provisions of Article 32 of these Regulations.

Article 25　Films shall be prohibited from containing the following contents:

(1)being against the fundamental principles laid down in the Constitution;

(2)jeopardizing the unification，sovereignty and territorial integrity of the State;

(3)divulging State secrets，jeopardizing the security of the State，or impairing the prestige and interests of the State;

(4)inciting hatred and discrimination among ethnic groups，harming their unity，or violating their customs and habits;

(5)propagating cults and superstition;

(6)disrupting public order and undermining social stability;

(7)propagating obscenity，gambling or violence，or abetting to commit crimes;

(8)insulting or slandering others，or infringing upon the legitimate rights and interests of others;

(9)jeopardizing social ethics or fine national cultural traditions;and

(10)other contents banned by laws，administrative regulations and provisions of the State.

The technical quality of films shall conform to the standards of the State.

Article 26　A studio shall，in accordance with the provisions of Article 25 of these Regulations，be responsible for censoring the screenplay of a film before the shooting is started and the film itself before it leaves the studio.

After having censored the screenplay it plans to use for shooting a film in accordance with the provisions of the preceding paragraph，the studio shall submit the screenplay to the film censorship authority for the record; the said authority may censor the screenplay in question and shall，upon finding any contents as prohibited by the provisions of Article 25 of these Regulations，promptly notify the studio concerned that itmay not shoot the film.Specific measures therefor are to be formulated by the radio，film and television administration department of the State Council.

Article 27　A studio shall，upon completion of themaking of a film，submit the film to the film censorship authority for censorship.A film importer shall，after going through the formalities for the temporary import of a film，submit the film to the film censorship authority for censorship.

Rates of the film censorship fees shall be fixed by the competent pricing department of the State Council jointly with the radio，film and television administration department of the State Council.

Article 28　The film censorship authority shall，within 30 days from the date of receipt of a film for censorship，inform in writing the unit that sends the film for censorship of its decision on censorship.If the film passes the censorship，the radio，film and television administration department of the State Council shall issue a Permit for Public Projection of Films thereto.

A studio or film importer shall have the serial number of its Permit for Public Projection of Films printed in the first scene of the first reel of the film's copy.

If a film fails to pass the censorship and is submitted for re-censorship after some changes have been made thereto，the time limit for recensorship shall be calculated anew according to the provisions of the first paragraph of this Article.

Article 29　If a studio or film importer refuses to accept the decision on censorship of a film，itmay，within 30 days from the date of receipt of the decision，apply to the film recensorship authority of the radio，film and television administration department of the State Council for re-censorship; if the film passes the re-censorship，the radio，film and television administration department of the State Council shall issue a Permit for Public Projection of Films thereto.

Chapter Ⅳ　Import and Export of Films

Article 30　The film importbusiness shall be engaged in by film importers designated by the radio，film and television administration department of the State Council.No units or individualswithout such designation may engage in the film import business.

Article 31　Where a film is to be imported for public projection，it shall be submitted to the film censorship authority for censorship prior to its import.

For a film that is submitted to the film censorship authority for censorship，the designated film importer shall，by presenting the document of approval for temporary import issued by the radio，film and television administration department of the State Council，go through the formalities for its temporary importwith the Customs.For a temporarily imported film that has passed the censorship and forwhich the Permit for Public Projection of Film and document of approval for import have been issued，the film importer shall，by presenting the document of approval，go through the formalities for its importwith the Customs.

Article 32　Where a film on a special subject is to be imported for the purpose of scientific research or for reference in teaching，the importer shall make a report to the competent administration department of the State Council for examination and approval，and，by presenting the document of approval，go through the formalities for import with the Customs，and shall，with 30 days from the date of import of the film，report to the radio，film and television administration department of the State Council for the record.However，no feature filmsmay be imported in the name of scientific research or teaching.

To import referential films，the China Film Archive may directly go through the formalities for the import of the films with the Customs.It shall report the referential films it has imported to the radio，film and television administration department of the State Council quarterly for the record.

No units or individuals other than those specified in this Article may import films that have not undergone and passed the censorship by the radio，film and television administration department of the State Council.

Article 33　A film importer shall，after having obtained the licence for use from the copyright owner of a film，make use of the film within the licensed scope.No units or individualsmaymake use of any imported filmswithout obtaining such licenses.

Article 34　Where a studio intends to exporta film ithasmade，it shall，by presenting the Permit for Public Projection of Films，go through the formalities for export with the Customs.

To export a film made by Chinese and foreign collaborators，the Chinese side shall，by presenting the Permit for Public Projection of Films，go through the formalities for exportwith the Customs.To export sourcematerials of such a film，the Chinese side shall，by presenting the document of approval issued by the radio，film and television administration department of the State Council，go through the formalities for exportwith the Customs.

Where any films or source materials therefor made with the assistance of the Chinese side are to exit from the Chinese territory，the Chinese side shall，by presenting the document of approval issued by the radio，film and television administration department under the State Council，go through the formalities for exitwith the Customs.

Article 35　To hold an exhibition of Chinese and foreign films or an international film festival，or to send films for a film exhibition or film festival held out of Chinese territory，the matter shall be reported to the radio，film and television administration departmentof the State Council for approval.

Films sent to the film exhibition or film festival as described in the preceding paragraph shall be submitted to the radio，film and television administration department of the State Council for censorship and approval.After having obtained the approval for the film to be sent to the film exhibition or film festival held outside the Chinese territory，the participants shall，by presenting the document of approval issued by the radio，film and television administration department of the State Council，go through the formalities for temporary export with the Customs.After having obtained the approval for the film to be imported for an exhibition of Chinese and foreign films or an international film festival held within the Chinese territory，the host shall，by presenting the document of approval issued by the radio，film and television administration departmentof the State Council，go through the formalities for temporary import with the Customs.

Chapter Ⅴ　Distribution and Projection of Films

Article 36　The establishment of a film distribution or projection unit shallmeet the following requirements:

(1)having a name and articles of association of its own;

(2)having a defined scope of business;

(3)having the organization and professionals that meet the needs of its scope of business;

(4)having the funds，premises and facilities that meet the needs of its scope of business;and

(5)other requirements provided for in the pertinent laws and administrative regulations.

Article 37　For the purpose of establishing a film distribution unit，an application shall be submitted to the film administration department of the local people's government of a province，an autonomous region or amunicipality directly under the Central Government; for the purpose of establishing an inter-provincial，inter-autonomousregional or intermunicipal film distribution unit，an application shall be submitted to the radio，film and television administration department under the State Council.The film administration department of the local people's government concerned or the radio，film and television administration departmentunder the State Council shall，within 60 days from the date of receipt of the application，decide whether to approve the application or not and inform the applicant of its decision.Where the department concerned approves the application，a Permit for Film Distribution shall be issued，and the applicant shall，by presenting the Permit，register with the administrative department for industry and commerce and shall，according to law，procure a business license.Where the department concerned does not approve the application，it shall give the reasons therefor.

Article 38　For the purpose of establishing a film projection unit，an application shall be submitted to the film administration department of the local people's government of a county or of a city divided into districts.The said department shall，within 60 days from the date of receipt of the application，decidewhether to approve the application or not and inform the applicant of its decision.Where the said departmentapproves the application，a Permit for Film Projection shall be issued，and the applicant shall，by presenting the Permit，registerwith the local administrative department for industry and commerce and shall，according to law，procure a business license.Where the said department does not approve the application，it shall give the reasons therefor.

Article 39　Where a film distribution or projection unit intends to change its scope of business，tomerge with other film distribution or projection unit(s)，or to establish new film distribution or projection unit(s)because of a merger or separation，it shall，in accordance with the provisions of Article 37 or 38 of these Regulations，go through the formalities for examination and approval，and shall go through the formalities for registration with the administrative department for industry and commerce accordingly.

Where a film distribution or projection unit intends to change its name，address，legal representative or principal person(s)in charge，or to terminate its business of film distribution or projection，it shall go to the original administrative department for industry and commerce with which it was registered to have the changes registered or to have its registration cancelled，and shall report for the record to the original film administration department that conducted examination and granted approval.

Article 40　Any unit or individual applying for distribution or projection of 16mm films in rural areas may directly go through the formalities for registration with the local administrative department for industry and commerce and report for the record to the film administration department of the local people's government at the county level，before itmay engage in the distribution or projection of 16mm films in rural areas throughout the country.

Article 41　The State allows enterprises，institutions and other public organizations and individuals to invest in the construction and renovation of cinemas.

The State allows the construction and renovation of cinemas in the form of joint ventures or Chinese-foreign cooperation.Specificmeasures therefor are，in accordancewith the relevant provisions，to be formulated by the radio，film and television administration department of the State Council jointly with the culture administration department and the competent foreign economic relations and trade department of the State Council.

Article 42　Filmsmay be distributed and projected only after the Permit for Public Projection of Films has been legally procured from the radio，film and television administration department of the State Council.

As to a film for which the Permit for Public projection of Films has been procured，the radio，film and television administration department of the State Councilmay，under special circumstances，decide to suspend its distribution or projection or to allow its continued distribution or projection only after revisions have been made thereto.Where the copyright owner refuses to revise the film that，according to decision，may be distributed or projected only after revisions have been made thereto，the radio，film and television administration department of the State Council shallmake the decision to stop its distribution or projection.

Film distribution and projection units shall implement the decisionsmade by the radio，film and television administration department of the State Council stopping the distribution or projection of films.

Article 43　Where a film is used formaking audio-visual products，the provisions of the State on the administration of audio-visual products shall be abided by.

No units or individualsmay，bymaking use of referential films，engage in profit-making distribution or projection of such films or do so under disguise.

Article 44　Projection of films shall be done in compliance with the time ratio specified by the State between homemade films and imported films.

The time for a film projection unit to show homemade films shall account for not less than two-thirds of the total amount of time of projection in each year.

Article 45　Film projection units shallmaintain public order and general sanitation in cinemas to ensure the audience safety and provide a healthy environment.

Chapter Ⅵ　Safeguards for the Films Industry

Article 46　The State establishes and keeps improving a film administration system that is suited to the socialistmarket economy，so as to develop the films industry.

Article 47　The State safeguards free creation of films，pays attention to and trains specialists for the films industry，pays attention to and promotes theoretical research in cinematography，encourages creation of films and sees to it that the quality of films is improved.

Article 48　The State establishes a special fund for the development of the film industry and adopts other preferentialmeasures in support of its development.

The units handing in money to the special fund for the development of the film industry shall，in accordance with the relevant provisions of the State，fulfill their obligations in this regard.

Article 49　The special fund for the developmentof the film industry shall be used to support and finance the following projects:

(1)production of major films that are advocated and confirmed by the State，and solicitation of excellent screenplays;

(2)updating of technologies and equipment ofmajor film-making bases;

(3)updating of cinemas and facilities for film projection;

(4)development of the films industry in areas inhabited by ethnic groups，in outlying and poverty-stricken areas and in rural areas;and

(5)other projects that need to be financed.

Article 50　The State encourages and supports the production，distribution and projection of science and educational films，documentary films，cartoons and puppet films and films for children.

Article 51　The State adopts a preferential policy for distribution and projection of films in areas inhabited by ethnic groups，in outlying and povertystricken areas and in rural areas.

The State gives support to the units and individuals engaged in the distribution or projection of16mm films in rural areas.Specificmeasures therefor are to be formulated by the radio，film and television administration department under the State Council and the culture administration department of the State Council jointly with the finance departmentof the State Council.

Article 52　Construction planning mapped out by local people's governments at or above the county level for their respective administrative areas shall include plans for the construction of cinemas and facilities for film projection.

The renovation or demolition of cinemas or film projection facilities shall be reported to the film administration departments of local people's governments at or above the county level for examination and approval，and the said departments shall，in accordance with the relevant provisions of the State，decide whether to grant approval or not.

Article 53　With regard to acts interfering with，interrupting or disrupting the production，distribution or projection of films，the film administration departments of local people's governments at or above the county level and the other administration departments concerned shall take promptmeasures to stop such acts and investigate into and punish them in accordance with law.

Nomassmedium may propagate illegal films.

Chapter Ⅶ　Penalty Provisions

Article 54　Where the radio，film and television administration department of the State Council，the film administration departments of local people's governments at or above the county level or other departments concerned，or their staff members，accept money or property or other benefits from other persons by taking advantage of their positions，or grant approval to the establishment of film production，distribution or projection units that do not meet the statutory requirements for establishment，or fail to perform their duties of supervision，or fail to investigate into or punish the illegal acts they have discovered，if the consequences are serious，the persons in charge who are responsible therefor and the other personswho are directly responsible for the violations shall，in accordancewith the provisions of the criminal law on the crime of acceptance of bribes，the crime of power abuse，or the crime of negligence of duty，or，on any other crimes，be investigated for criminal liability.If the offence is not serious enough for criminal punishment，they shall be given administration sanctions of demotion or dismissal from office.

Article 55　Anyone who，in violation of the provisions of these Regulations，establishes a film production，distribution or projection unit without authorization，or engages in the production，import，distribution or projection of films without authorization，shall be banned from doing so by administrative department for industry and commerce，or shall，in accordance with the provisions of the criminal law on the crime of illegal business operation，be investigated for criminal liability.If the offence is not serious enough for criminal punishment，the films used for the illegal business operation，the illegal gains therefrom and the instruments and facilities specially used for the illegal business operation shall be confiscated.Where the illegal gains are not less than RMB50，000，the person shall be concurrently fined not less than five times but notmore than ten times the amount of the illegal gains;where there are no illegal gains or the illegal gains are less than RMB50，000，the person shall be concurrently fined not less than RMB200，000 but not more than RMB500，000.

Article 56　Anyone whomakes films that contain the contents prohibited by Article 25 of these Regulations，or develops or processes，imports，distributes or projects films which he clearly knows or should know that they contain the contents prohibited by Article 25 of these Regulations，shall，in accordance with the relevant provisions of the criminal law，be investigated for criminal liability.If the offence is not serious enough for criminal punishment，the film administration department shall order him to suspend his business for rectification，and shall have the films used for the illegal business operation and the illegal gains therefrom confiscated.If the illegal gains are not less than RMB50，000，the person shall be concurrently fined not less than five times but notmore than ten times the amount of the illegal gains;if there are no illegal gains or the illegal gains are less than RMB50，000，the person shall be concurrently fined not less than RMB200，000 but notmore than RMB500，000.If the circumstances are serious，his permit shall，in addition，be revoked by the original authority that issued it.

Article 57　Anyone who smuggles films shall，in accordancewith the provisions of the Criminal Law regarding the crime of smuggling，be investigated for criminal responsibility.If the offence is not serious enough for criminal punishment，the person shall be given an administrative penalty by the Customs according to law.

Article 58　If anyone exports，distributes or projects films for which no Permit for Public Projection of Films has been procured，the film administration department shall order him to stop the illegal acts，and shall have the films used for the illegal business operation and the illegal gains therefrom confiscated.If the illegal gains are not less than RMB50，000，the person shall be concurrently fined not less than ten times but notmore than fifteen times the amount of the illegal gains; if there are no illegal gains or the illegal gains are less than RMB50，000，the person shall be concurrently fined not less than RMB200，000 but notmore than RMB500，000.If the circumstances are serious，the person shall be ordered to suspend his business for rectification，or his permit shall be revoked by the original authority that issued it.

Article 59　Any unit or individual that commits one of the following acts shall be ordered by the film administration department to stop the illegal act，and the films used for the illegal business operation and the illegal gains therefrom shall be confiscated.If the illegal gains are not less than RMB50，000，it or he shall be concurrently fined not less than five times but notmore than ten times the amount of the illegal gains;if there are no illegal gains or the illegal gains are less than RMB50，000，it or he shall be concurrently fined not less than RMB100，000 but notmore than RMB300，000.If the circumstances are serious，it or he shall be ordered to suspend business for rectification，or its or his permit shall be revoked by the original authority that issued it:

(1)without approval，making films in collaboration with organizations or individuals from abroad，or，without authorization，going abroad tomake films;

(2)without authorization，having the negative or working print of a film developed abroad，or having the final-period production of a film completed abroad，or failing to have the negative or working print developed or the final-period production completed in compliance with the requirements stated in the document of approval;

(3)developing or processing the negative orworking print of a film made by a unit that has not procured the Film-Making Permit or Film-Making Permit(for One Film)，or developing or processing copies of a film forwhich no Permit for Public Projection of Films has been procured;

(4)withoutapproval，accepting a commission to develop or process the negative，working print or copies of a film sent from abroad，or failing to have the developed or processed negative or working print or copies of a film completely shipped out of the territory;

(5)engaging in profit-making distribution or projection activities or doing so under disguise bymaking use of referential films;or

(6)failing to project films in compliance with the specified time ratio，or refusing to implement the decision made by the radio，film and television administration department of the State Council to discontinue the distribution or projection of a film.

Article 60　Where an organization or individual from abroad independently engages in film-making in the territory of the People's Republic of China，the radio，film and television administration department under the State Council shall order itor him to stop the illegal act，confiscate the film(s)illegallymade and the instruments and equipment specially used for the illegal act，and concurrently impose a fine of not less than RMB300，000 but notmore than RMB500，000 upon the organization or individual concerned.

Article 61　Any unit that，without approval，holds an exhibition of Chinese and foreign films or an international film festival，or provides films for such an exhibition or festival held abroad，shall be ordered by the radio，film and television administration department of the State Council to discontinue the illegal act，and the films illegally provided and the illegal gains therefrom shall be confiscated; if the illegal gains are not less than RMB20，000，the unit shall be concurrently fined not less than five times but notmore than ten times the amount of the illegal gains; if there are no illegal gains or the illegal gains are less than RMB20，000，it shall be concurrently fined not less than RMB20，000 but notmore than RMB100，000.

Article 62　If any unit，without approval，renovates or demolishes a cinema or a projection facility，it shall be ordered by the film administration department of the local people's government at or above the county level to put the cinema or projection facilities back to the original state within a specified time limit and shall be given a warning，and the persons in charge who are responsible therefor and the other persons who are directly responsible for the violations shall be given disciplinary sanctions according to law.

Article 63　Any unit that violates the provisions of these Regulations and whose permit is therefore revoked as an administrative penalty shall，in accordancewith the relevant provisions of the State，have the changes registered or have its registration cancelled with the administrative department for industry and commerce;if it fails to do sowithin the time limit，the said department shall revoke its business license.

Article 64　Where a unit violates the provisions of these Regulations and its permit is therefore revoked as an administr ative penalty，its legal representative or its principal person in charge shall，within five years from the date of the revocation of the permit，not be allowed to serve as a legal representative or principal person in charge of a film production，import，export，distribution or projection unit.

Where an individual violates the provisions of these Regulations by，without approval，engaging in the production，importor distribution of films，or holding an exhibition of Chinese and foreign films or an international film festival，or providing films for film exhibition or festival held abroad，he shall not be allowed to engage in film-related business within five years.

Article 65　Any unit that fails to fulfill its obligations of handing in money to the special fund for the development of the film industry as required by the relevant provisions of the State shall be ordered by the film administration department of the people's government at or above the provincial level to hand inmoneywithin a specified time limit，alongwith a daily surcharge to the amount of0.0005 of the unpaid money，counting from the date when it fails to hand in themoney.

Article 66　With regard to the administrative penalty which involves the imposition of a fine according to the provisions of these Regulations，the unit thatmakes the decision on the fine shall，in accordance with the provisions of the pertinent laws and administrative regulations，be separated from the unit that collects the fine.The fine collected shall be turned over to the State Treasury in full.

Chapter Ⅷ Supplementary Provisions

Article 67　The State exercises an annual examination system for Film-Making Permit，Permit for Film Distribution and Permit for Film Projection.The measures therefor are to be formulated by the radio，film and television administration department of the State Council.

Article 68　These Regulations shall be effective as of February 1，2002.The Regulations on Administration of Films promulgated by the State Council on June 19，1996 shall be repealed simultaneously.