Provisional Regulations concerning Strengthening Management over Collective, Individual and Privately-Run Bookstores (Stalls)
Administration of Press and Publications, State Administration of Industry and Commerce
25 November 1989
In order to implement relevant State principles, policies and regulations, further strengthen management over collective, individual and privately-run bookstores (stalls), let the cultural market flourish and stimulate the construction of a Socialist spiritual civilization, the following provisions are made:
I, All localities’ administrative press and publications, culture, and industry and commerce management organs must strengthen management over collective, individual and privately-run bookstores (stalls), supervise collective, individual and privately-run bookstore (stall) managers in earnestly implementing State regulations concerning the distribution of books and periodicals, encourage and support them in distributing more good books, pay attention to social effect, and protect their lawful rights and interests.
II, All levels’ Xinhua bookstores and the distribution organs of book and periodical publishers must care for and foster the development of collective, individual and privately-run bookstores (stalls), give the necessary help and guidance for their book and periodical distribution business, satisfy their demands in matters of supply as much as possible, and guide them to distribute healthy and beneficial books and periodicals.
III, When opening a collective, individual or privately-run bookstore (stall), an application must be made with the county-level press and publications or cultural management organ, after examination, verification and agreement, registration must be applied for with the local administrative industry and commerce management organ, business may only commence after issuance of a business licence.
IV, Individual or privately-run bookstores (stalls) may, without exception, not engage in book or periodical (including wall calendars, pictorials, postcards) wholesale activities, and can only launch retail activities according to relevant regulations.
V, Collective bookstores engaging in second-level wholesale activities (referring to reselling books purchased from State-run bookstores, book and periodical publishers) must meet the following conditions:
(1) Having a controlling department that is able to bear economic responsibility.
(2) Having sufficient operating funds. Operating fund values must be suited to the business scale and distribution scope, and there generally should be 100.000 Yuan or more in self-owned operating funds.
(3) Having a certain number of specialist distribution personnel suited to launching wholesale activities. Specialist personnel must have a schooling record of senior middle school or technical middle school or higher, and have obtained basic-level or higher technological qualifications, or have worked in book and periodical distribution for three years or more. Other employees must also have cultural levels of lower middle school or higher.
(4) Having fixed business premises and the required facilities (including storerooms, warehousing facilities and transportation tools).
(5) Having healthy asset management systems.
VI, Collective bookstores meeting the above conditions, which engage in second-level wholesale activities must undergo examination and verification by the local press and publications or cultural management organ, report to the provincial-level press and publications bureau for approval, be issued with a book and periodical wholesale permit, and apply for registration on the basis of the permit with the local administrative industry and commerce management organ, business may only commence after obtaining the business licence. The examination and verification formalities for collective bookstores setting up branch stores or agency stations across regions are the same as for setting up a new bookstore.
VII, All localities’ administrative press and publications, culture, and industry and commerce management departments must strictly keep the gate in examining and approving collective bookstores’ engaging in wholesale activities, and must, under equal circumstances, give priority consideration to approving those collective bookstores that have many years of retail activity experience, have an upright management ideology, observe discipline and abide by the law, and have a good reputation to launch wholesale activities.
VIII, Collective, individual and privately-run bookstores (stalls) must abide by the following regulations:
(1) They may not trade in imported books and periodicals, Hong Kong, Macau or Taiwan books and periodicals and books and periodicals that are limited to “internal distribution. ”
(2) They may not trade in publications which the State has ordered to be banned and other illegal publications.
(3) They may not conduct rent-type stock production and agency publishing business (for example printing and distribution agency, cover production agency, advertising, illustration and compilation solicitation, etc.), they may also not “buy” book (periodical) numbers from book or periodical publishers under the name of “cooperative publishing”.
(4) They may not contract general book and periodical wholesale (general distribution) with book or periodical publishers.
(5) They may not, in any form, wholesale works by Party and State leaders, important documents, political theory books that Party and government have uniformly provided for study, primary and secondary school textbooks and technical school teaching materials, for which the Xinhua bookstores are sole agents, as well as other sorts of books and periodicals of which the State press and publications management organ has provided that collective, individual and privately-run bookstores (stalls) cannot trade in them.
(6) Collective bookstores engaging in wholesale activities must, every quarter, report a form of purchased, sold and stored books, newspapers and periodicals (including titles, quantities, value, discount, publishing work unit, wholesale work unit and other matters) to the local (provincial, district) press and publications or cultural management organ.
(7) The book and periodical wholesale permit and business licence must be hung at the same time in the business premises, they may not be directly or covertly lent, rented out, transferred, bought or sold in any form.
(8) Business must be civilized, book and periodical propaganda may not be conducted with unhealthy, seductive or fraudulent texts, images or advertising.
(9) It is not permitted to raise prices or force the tied sale of books and periodicals.
IX, All localities’ administrative press and publications, culture, and industry and commerce management departments should, on the basis of the conditions for business establishment and the trading requirements listed in these Regulations, conduct a one-time examination, verification and registration of collective bookstores that had been approved to engage in wholesale activities before the issuance of these Regulations again, and they may only continue to engage in book and periodical wholesale activities after approval by the provincial-level press and publications bureau; all those not meeting conditions may not continue to engage in book and periodical wholesale activities.
X, Where all distribution departments of book and periodical publishers and State-run bookstores, when launching wholesale activities for collective, individual and privately-run bookstores (stalls), violate these Regulations, and wholesale books and periodicals that should not be traded by collective, individual and privately-run bookstores (stalls) to collective, individual and privately-run bookstores (stalls), the administrative press and publications, culture, and industry and commerce management organs have the power to confiscate these books. The economic damage resulting from this is borne by the book or periodical publisher or State-run bookstore wholesaling these books and periodicals.
XI, All collective, individual and privately-run bookstores (stalls) shall abide by State laws and relevant regulations, persist in the orientation of serving the people and serving Socialism, consciously accept the management and inspection of administrative press and publications, culture, and industry and commerce management organs, have upright business ideologies, focus on social effect, observe discipline and abide by the law, and pay taxation on time.
XII, All localities’ administrative press and publications, culture, and industry and commerce management organs must forcefully commend and reward those collective, individual and privately-run bookstores (stalls) that do honest business, observe discipline and abide by the law, and stress professional ethics.
XIII, All those violating these Regulations will be subject to administrative punishment in consideration of the gravity of the circumstances:
(2) Those violating Article 4 of these Regulations, will have their business licence revoked by the administrative industry and commerce organ.
(2) Those violating Articles 3, 6 or 8 of these Regulations may respectively be subject to a warning, confiscation of books and periodicals, confiscation of illegal income, a fine, cessation of business for rectification, up to the cancellation of book and periodical wholesale certificates and cancellation of business licence, in view of the gravity of the circumstances, by the administrative press and publications, culture, or industry and commerce management organs on the basis of their scope of powers.
XIV, Of those violating Article 8 of these Regulations, where circumstances are grave and constitute a crime, the judicial organs prosecute criminal responsibility according to the law.
XV, These Regulations take effect on the date of promulgation.