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Examination and approval on application for setup of units for audiovisual product wholesale business
(06/01/2005)

Application formalities: (I) An "Application form" unified made by Administration on Culture, Radio, Film and Television of Shanghai (including name, address and applied items, etc. of the applicant unit);
(II)Constitution of the applicant enterprise;
(III) Information and identity documents on legal representative and major person in charge;
(IV) Notice on prior approval on enterprise name or business license and copies of business license of the enterprise;
(V) Certifications on assessment of capital issued by accountant firm;
(VI) Documents on certificate of ownership or on housing lease contract of the business ground and certificate of ownership of the renter;
Transaction procedures:
(I) To accept the application:
Personnel at the Center of application accepting is to examine application materials from applicants, producing written document on accepting the application or not on the spot, submitting the materials to office of Administration of Culture, Radio, Film and Television of Shanghai within 24 hours, who is to send the materials to the Market Department to do verifications work.

(II) Examination and approval work:
1. Personnel handling the case at Market Department is to finish preliminary examination on the application materials within 5 working days, producing an opinion on whether to approve or not(if materials are not complete or not conform legal form, Market department is to notify Center of application accepting within 3 working days from the day when they receive the materials. During applicants supplement their application materials, examination and approval procedures are paused);
2. Deputy director in charge of the work is to do reviewing work within 2 working days after getting opinions from preliminary examination, then producing opinion from reviewing work;
3.Director is to produce an opinion from the examination and approval within 3 working days after getting opinion from the reviewing work from deputy director;
4. Leader of the Administration in charge of the job is to make a decision on whether to approve the application or not within 5 working days after getting opinion from director;
5. Office of the Administration is to send the decision to Market Department, and personnel at the Department handling the case is to notify the Center of application accepting about decision from examination and approval work within 1 working day: those being approved are to be issued a "Permit on Audiovisual Product Operation" by the center and those not approved are to be issued letter of notification by Market Department and sent the letter by Center of application accepting.

(III) To issue the Permit:
The Center of application accepting is to issue the "Permit on Audiovisual Product Operation" to applicants within 5 working days after getting notification from Market Department.
ĦĦĦĦReviewing work:
(I)Operation qualifications of the owner of "Permit on Audiovisual Product Operation" are to be reviewed between January 1st and February 28th of every even number year.
(II)Administration on Culture, Radio, Film and Television of Shanghai is to issue notice on reviewing work at 1 month in advance, publicizing requirements on the reviewing work;
(III) By following the notified requirements on reviewing work, Permit holders submit report on reviewing, relevant materials and unified review form to the Center of application accepting;
(IV) The reviewing procedures are done by following examination and approval procedures;
(V) Administration on Culture, Radio, Film and Television of Shanghai is to finish the reviewing work within 10 working days from the day when they receive materials for review.

The transaction is based on: (I) "Regulations on Administration of Audiovisual Products" (Decree 341 from the State Council issued on December 25th, 2001);
(II)"Regulations on Administration of Audiovisual Products of Shanghai" (passed on 36th meeting of 10th Shanghai People's Congress on May 28th, 1997);
(III) "Methods of Administration on Wholesale, Retail and Rent of Audiovisual Products" (Decree22 from Ministry of Culture issued on March 28th, 2002)

Applicant qualifications: (I) Having name and constitution of units for audiovisual product wholesale business;
(II)Having fixed business scope;
(V) For those with a fixed business ground, its fixed business ground should cover an area of no less than 100m2;
(VI) Having a registered capital of no less than 1million RMB;
(VII) Having an institutional framework fit for its business scope and more than 5 full time staff;
(VI) Meeting planning on total number and structure of audiovisual product operation units of Shanghai.