Procedures for Granting Subsidies for Investment Projects in Weak Areas of Shenzhen’s Industrial Chain (Provisional)
Chapter 1 General Provisions
Article 1 These Procedures are formulated for the purpose of optimizing Shenzhen’s industrial structure and intensifying efforts to attract investment in weak areas of the industrial chain in accordance with the Relevant Measures on Improving Enterprise Competitiveness (No.8 , Shenzhen Development and Reform Commission) and Rules on Implementation of Relevant Measures on Improving Enterprise Competitiveness (No.149 , Economy, Trade and Information Commission of Shenzhen Municipality).
Article 2 Subsidies for investment projects in weak areas of the industrial chain stipulated in the Measures (hereinafter referred to as the subsidies) are included under the budget of the municipal investment promotion department and are project funds under the public budget for subsidies for investment projects in weak areas of Shenzhen’s industrial chain in accordance with the Provisional Regulations on Management of Special Funds under Municipal Budget of Shenzhen (No. 68 , General Office of the People’s Government of Shenzhen Municipality, the Relevant Measures on Improving Enterprise Competitiveness (No.8 , Shenzhen Development and Reform Commission) and Rules on Implementation of Relevant Measures on Improving Enterprise Competitiveness (No. 149 , Economy, Trade and Information Commission of Shenzhen Municipality)
Article 3 The subsidies will be administered by the municipal investment attraction department and reviewed at the joint meeting for management of subsidies for investment projects in weak areas of Shenzhen’s industrial chain (hereinafter referred to as the joint meeting).
Article 4 Each district (new district) can set up additional subsidies under their district budget in accordance with their financial conditions.
Chapter 2 Subsidy Conditions and Standards
Article 5 An applicant shall be registered in the city in accordance with the law and have a legal person status.
Article 6 An investment project that is granted a subsidy should meet all of the following conditions:
1. Be located in the city after the date when the Relevant Measures on Improving Enterprise Competitiveness (No.8 , Shenzhen Development and Reform Commission) comes into effect on March 23, 2016;
2. Include the categories which will receive support for development set out in the Directory of the Industrial Structural Adjustment and Optimization and Industrial Orientation in Shenzhen City;
3. Investment amount of at least RMB200 million;
4. Identified as a weak area in Shenzhen’s industry chain through joint meetings.
Article7 The investment amount includes fixed-asset investment, R&D investment, intangible assets investment, working capital and other expenses that have been actually been paid out. When the investment amount is confirmed, an audit report for the investment project and other documents that can prove the authenticity of the investment amount must be provided and the data in these documents shall be consistent with the data filed with the city’s statistics department.
Article 8 A retroactive subsidy method is adopted, in which eligible investment projects will be given a one-time subsidy of RMB3 million.
Chapter 3 Application and Review
Article 9 An applicant shall submit relevant documents to the municipal investment promotion department within a specified time in accordance with the Guidelines for Applying for Subsidies for Investment Projects in Weak Areas of Shenzhen’s Industrial Chain.
Article10 The municipal investment promotion department will conduct an initial review of the submitted documents and will, when necessary, organize industry experts or third-party institutions to conduct on-site visits and recheck the documents.
Article 11 The municipal investment promotion department will propose a preliminary list of projects to receive subsidies, and will confirm if businesses on the list have violated any laws or rules regarding taxation, environmental protection and employment, and if the reported data are consistent with the data filed with the statistics department, and check their credit status at the municipal public credit center.
Article 12 The municipal investment promotion department will submit a preliminary list of proposed subsidies, which has passed a preliminary review, to the joint meeting for examination and approval. After the review, the list will be submitted to the municipal financial department to check if the businesses on the list have been found engaging in illegal financial activities, have outstanding debts or have bad credits.
Article 13 The subsidy list which passes verification will be published on the official website of the municipal investment promotion department for public comment. Any businesses or individuals can raise an objection with the municipal investment promotion department during the seven-day public comment period. Where an objection is raised against the application status and conditions, the municipal investment promotion department shall conduct an investigation, issue an investigation report and notify the party who raised the objection. If the grounds for the investigation are found to have been warranted, the municipal investment promotion department shall cancel the project’s eligibility to receive a subsidy. If during the public comment period no objections are raised or the objections are unfounded, the municipal investment promotion department shall work with the finance department to issue a subsidy plan and the municipal investment promotion department will allocate the subsidy.
Article 14 An applicant may not apply for a subsidy under any of the following circumstances:
1.An applicant is under investigation by an administrative government department for suspected illegal activities and within two years after receiving an administrative penalty;
2.Intellectual property disputes relating to the project submitted for consideration have yet to be resolved;
3.The project has already been granted a subsidy or subsidies from other special funds under the municipal budget. The municipal investment promotion department shall not accept an application in any of the above-mentioned circumstances and shall reject an application found to be involved in any of the above-mentioned circumstances after receiving and beginning to process it.
Chapter 4 Assignment of Responsibilities
Article 15 The joint meeting is responsible for identifying weak areas of the industry chain and determining the investment amount for projects and the list of projects to receive subsidies. Organized by the municipal investment promotion department, the joint meeting includes members such as municipal development and reform, trade, scientific and technological innovation, environment, transportation, health and family planning, culture, sports and tourism, and financial departments. The joint meeting office is set up at the municipal investment promotion department.
Article 16 Main responsibilities for members of the joint meeting are set out as follows: The municipal investment promotion department is responsible for daily management of subsidies and taking the lead in organizing the application process, preliminary review and final review and approval. The municipal development and reform department and municipal investment promotion department will work together with relevant industry sectors to confirm if a project is indeed in a weak area of the industry chain in accordance with the city’s industrial development.
Article 17 The municipal finance department is responsible for arranging funds under the annual budget and adjusting the budget in accordance with relevant regulations, and checking if there are any illegal financial activities, outstanding debts and bad credits.
Article 18 The investment promotion department of each district (new district) should assist eligible projects within their district to apply.
Chapter 5 Requirements and supervision
Article 19 A project applicant shall be held fully responsible for the authenticity, integrity, effectiveness and validity of submitted documents, cooperate with the municipal investment promotion department for supervision and inspection, and provide an investment project report and relevant financial statements as requested. Where violations of laws and rules such as fabrication, concealment and counterfeit occur, the joint meeting will annul its evaluation results, and the municipal investment promotion department will recover the subsidy in accordance with regulations. In the meantime, the applicant will be dealt with in accordance with the regulations under the Provisions for Penalizing Illegal Financial Behavior and penalized or punished within the scope of authority of the municipal finance, accounting and supervision departments; an applicant suspected of a crime will be handed over to judicial authorities. Applications from anyone who is found to have committed the above-mentioned violations of laws and regulations will not be accepted within three years of the violation and the misconduct of the project applicant will be recorded in Shenzhen’s public credit information management system.
Article 20 Third-party institutions who are found to have falsified or concealed facts, colluded with project applicants for the purpose of cheating, issued false reports during the process of project review, evaluation and examination will have its review, evaluation and examination status revoked, and relevant information will be handed over to related departments. These relevant departments shall mete out punishment to the businesses or individuals involved in accordance with the Accounting Law of the People’s Republic of China, Law of the People’s Republic of China on Certified Public Accountants, and Shenzhen Special Economic Zone Ordinance on Certified Public Accountants. Where losses are incurred to the special funds, they shall be held legally liable and those suspected of a crime shall be handed over to judicial authorities.
Article 21 Experts who participate in the review and evaluation process will have their expert status revoked if they are found to take advantage of the opportunity to seek personal gain or commit fraud, and will be held legally liable in accordance with the law, and handed over to judicial authorities if they are suspected of a crime.
Article 22 Where a department or individual responsible for management of subsidies is found to have violated procedures, failed to diligently fulfill their responsibilities, has abused their power, neglected their duty or engaged in fraudulent practices, they shall be investigated for administrative liability by the departments in charge of appointment and supervisory agencies; those suspected of a crime shall be handed over to judicial authorities.
Chapter 6 Supplementary Provisions
Article 23 The power of interpretation rests with the municipal investment promotion department.
Article 24 The Procedures shall go into effect as of the date of promulgation.