State Council Secretariat Notice on Transferring the Ministry of Finance and other Departments’ “Some Policies Concerning Encouraging and Supporting Cultural Product and Service Export”
GBF No. 88
All provincial, autonomous region and municipal People’s Governments, all State Council ministries and commissions, all directly subordinate organs:
The Ministry of Finance, the Ministry of Commerce, the Ministry of Culture, the People’s Bank, the General Administration of Customs, the General Administration of Taxation, the State Administration of Radio, Film and Television and the General Administration of Press and Publications “Some Policies Concerning Encouraging and Supporting Cultural Product and Service Export” has been agreed with by the State Council, is hereby issued to you, please earnestly implement it.
State Council Secretariat
5 November 2006
Some Policies Concerning Encouraging and Supporting Cultural Product and Service Export
Ministry of Finance, Ministry of Commerce, Ministry of Culture, People’s Bank, General Administration of Customs, General Administration of Taxation, State Administration of Radio, Film and Television and General Administration of Press and Publications
In order to further implement the Central Committee Secretariat and State Council Secretariat “Notice Concerning Further Strengthening and Improving Cultural Product and Service Export” (GBF No. 20), encourage and support cultural enterprises to participate in international competition, promote our country’s cultural products and services to enter into world markets in larger numbers, the following policies are formulated:
I, Encouraging and supporting cultural enterprises in all sorts of ownership systems to launch, participate and engage in cultural product and service export. Cultural enterprises in all sorts of ownership systems may all engage in cultural product and service export business permitted by State laws and regulations, and enjoy equal treatment. To simplify examination and approval procedures for going abroad because of official business, a one-time examination and approval method is implemented, which is effective for a full year, for salespersons and performers of cultural enterprises engaging in cultural product and service exports. The Ministry of Culture, together with controlling departments such as propaganda, culture, foreign propaganda, foreign affairs, etc., will formulate a “Cultural Products and Services Export Guidance Catalogue“, perfect cultural product and service export statistics, strengthen leadership over cultural enterprise marching out work, and provide corresponding preferential policies to programmes and enterprises listed in the guidance catalogue. Customs must provide convenient clearance to cultural product and service export.
II, According to the principle of ” driving exports with imports, linking up import and export”, strengthening macro-level regulation of cultural product import and export, progressively transforming the situation of the relatively large foreign cultural trade deficit. Cultural work units engaging in international copyright trade of books, periodicals, electronic and audiovisual products, films and television dramas must vigorously expand export business, enlarge the proportion of export business in their total business, and must reduce copyright import quantities and import standards in view of the grave imbalance of the proportion of import and export.
III, Supporting publishing group companies and publishers having a certain copyright export scale to establish specialized publication enterprises aimed at foreign book markets, with approval, it is permitted to allocate corresponding publishing resources. Publishing enterprises’ copyright export overseas, may be given corresponding support and rewards by relevant departments on the basis of the real copyright export quantity.
IV, Encouraging cultural enterprises to establish publishers, radio and television networks, publications’ retail organs, etc, through methods such as new establishment, purchasing, cooperation, etc., commercial controlling departments provide convenience in aspects such as stimulating, supporting, guaranteeing, servicing and approving overseas investment, etc. Supporting radio and television to land abroad, encouraging cultural enterprises to purchase media broadcast time slots abroad, and set up radio and television channels and frequencies, encouraging cultural enterprises meeting conditions to launch foreign service cooperation, cultural controlling departments provide support in aspects such as endowment appraisal, information consulting, market research, etc.
V, Supporting technological innovation of cultural product and service export. Encouraging cultural enterprises to strengthen research and development input concerning cultural product and service export, expanding support to public-type technology research and development relating to export, vigorously launching key technology and core technology having indigenous intellectual property rights. Strengthening intellectual property rights protection of cultural product and service. Supporting cultural enterprises to import advanced technology and equipment to be used for cultural product and service innovation, strengthening digestion, assimilation and re-innovation work. It is permitted to exempt importing of foreign advanced technology, key equipment and supplementary or spare parts that cannot be produced domestically from import tariffs and value-added taxes in the import segment according to relevant State Council regulations.
VI, Central and provincial-level special propaganda and cultural development funds, and special cultural marching out funds, must expand support to cultural product and service export, reward enterprises having outstanding achievements in exploiting international cultural markets, subsidize film and audiovisual product translation, dubbing and subtitle production, focus export book translation, and may provide certain subsidies for international travel fees, renting booths to participate in foreign exhibitions, to personnel and props participating in foreign commercial cultural performances. Expense subsidies may be given to cultural work units participating in foreign cultural festivals according to the circumstances. Using Central foreign trade development funds to support cultural product and service export. Utilizing small and mid-size enterprise international market expansion funds to support cultural enterprises in market expansion activities such as participating in exhibitions abroad, propaganda and marketing, training and deliberation, and foreign bidding, etc. According to the present foreign aid management regulations, arranging special budgets in foreign aid funds to promote cultural product and service export. Applications for the abovementioned relevant funds may be put forward to the financial and commercial controlling departments.
VII, Controlling departments such as commerce, culture, foreign propaganda, foreign trade, etc., must strengthen overall planning and coordination, expand work strength of cultural product and service international market expansion, expand the international influence of Chinese cultural product and service through organizing comprehensive Chinese cultural product and service export exhibitions and trade negotiation activities abroad, or participating in comprehensive international service trade exhibitions, establishing a desirable international image. Relevant policy departments’ websites must establish web pages corresponding to cultural product and service export, at regular times publish a list of names of cultural enterprises and enterprise legal persons having export endowments, and introduce our country’s cultural product and service export information. Supporting cultural enterprises to vigorously respond to intellectual property lawsuits overseas, timely providing overseas consulting in aspects of laws, intellectual property rights, etc.
VIII, Researching the formulating of cultural product and service export tax rebate policies. Not levying business tax over foreign income obtained by enterprises providing cultural services abroad, exempting foreign income obtained by enterprises providing translation services and conducting copyright transfer abroad from business tax, deducting income tax already paid abroad according to existing regulations. Exempting foreign income obtained by concentrated broadcast enterprises engaging in radio, film and television programmes landing abroad from business tax.
IX, Policy-type banks such as the China Export-Import Bank China Development Bank must bring cultural product and service export into their business scope. Export programmes and enterprises listed in the “Cultural Products and Services Export Guidance Catalogue“, where they need to borrow money from banks, may put forward borrowing applications, and banks must support these vigorously according to regulations.
X, Fully utilizing export credit insurance to expand cultural product and service export. Encouraging insurance organs engaging in export credit insurance business to vigorously develop corresponding insurance products.
XI, Encouraging and supporting cultural enterprises to register with and establish cultural product and service import and export chambers of commerce on a voluntary basis, researching relevant national cultural market and policy environments, fully giving rein to the function of chambers of commerce in safeguarding members’ rights and interests and market order. Promoting the establishment of nationwide cultural product and service export alliances, under the leadership of the commerce and culture controlling departments, integrating enterprise forces, expanding foreign propaganda, strengthening sector self-discipline, and assisting enterprises in expanding foreign cultural markets.
XII, Perfecting cultural product and service export award and honour mechanisms. It is necessary to grant corresponding honours and awards to cultural enterprises with a relatively large export scope or relatively quick export business growth, to foreign cultural organs and enterprises that vigorously import our country’s copyright, and to domestic media, intermediary organs and friendly personalities that make contributions to our country’s cultural products to be pushed towards overseas markets.