Chapter I General Provisions
Article 1 In accordance with the work arrangements of Guangdong Province on boosting integrated development of domestic and foreign trade, and the Notice of Dongguan Municipal People’s Government on issuing the Implementation Opinions on Accelerating New Industrialization and Building a High-Quality International Manufacturing City Empowered by Sci-Tech Innovation (Dong Fu [2024] No. 1), these Implementing Rules have been formulated, in light of the reality of Dongguan’s commercial work, for the purpose of raising both trade quality and volume in Dongguan and achieving high-quality development.
Article 2 The funds referred to in these Implementing Rules will be used mainly to support enterprises in capturing orders through exhibitions at home and abroad, encouraging exhibition invitation and organization in Dongguan, speeding up the “going global” process to explore emerging markets, guiding the local manufacturing sector to develop digital trade through application of e-commerce, improving services throughout the domestic and foreign trade process, enhancing the capacity of ensuring delivery channels for domestic and foreign trade orders, and strengthening services for foreign-funded enterprises.
Article 3 The funds referred to in these Implementing Rules shall be applied in an open, fair, scientific, law-based and performance-driven manner, and shall highlight key areas of support and standard management.
Article 4 The Municipal Bureau of Commerce is responsible for preparing and submitting the funding budget, proposing performance targets and the plan for use of funds, organizing fund implementation and management, and carrying out self-evaluation of fund performance, fund inspection and supervision, and disclosing relevant information.
Article 5 The Municipal Finance Bureau is responsible for developing a budget management plan for the special funds, organizing budget preparation and implementation, reviewing performance targets, approving the funding budget, and organizing the implementation of financial supervision and inspection as well as the evaluation of key performance targets.
Chapter II Eligibility and Funding Standards
Article 6 Support enterprises in capturing orders through exhibitions at home and abroad
(I) Overseas exhibitions
1.Eligibility
Chambers of commerce, associations and other units that are legally incorporated in Dongguan and have the ability organize and mobilize enterprises, as well as enterprises that are legally incorporated in Dongguan and participate in designated overseas exhibitions.
2. Funding Standards
(1) Support enterprises in developing overseas market through brand booths. If a Dongguan enterprise participates in any “Guangdong Trade Worldwide” offline exhibition approved by the Department of Commerce of Guangdong Province by setting up a special booth (18 square meters or more), the enterprise will be granted a subsidy equivalent to 50% of the actual costs incurred, up to a maximum of RMB 1,500 per square meter and RMB 100,000 per exhibition.
(2) Support chambers of commerce and associations in organizing enterprises to participate in overseas exhibitions. If a chamber of commerce or association organizes no less than 15 Dongguan enterprises to participate in any “Guangdong Trade Worldwide” offline exhibition approved by the Department of Commerce of Guangdong Province or any offline exhibition approved by the Buruea of Commerce of Dongguan City, it will be awarded RMB 2,000 for each enterprise organized, up to a maximum of RMB 200,000 per exhibition. The organizer will also be granted 50% of the round-trip logistics costs for the exhibits, up to a maximum of RMB 100,000, if it pays relevant costs centrally.
(II) Domestic exhibitions
New product releases
1. Eligibility
Chambers of commerce, associations and other units that are legally incorporated in Dongguan and have the ability to organize and mobilize enterprises.
2. Funding Standards
The Municipal Bureau of Commerce intends to support local chambers of commerce and associations in launching new product releases at exhibitions listed in the “Guangdong Trade Nationwide” Dongguan Activity Catalogue. Each chamber of commerce or association will be granted the actual amount of venue rental and venue decoration fee incurred (overall decoration fee of the product release venue), up to a maximum of RMB 150,000 per new product lease.
New domestic exhibition & sales centers
1. Eligibility
Dongguan industry associations (chambers of commerce), import and export agents, trade groups, enterprises and organizations that set up a “Made-in-Dongguan” brand exhibition and sales platform in China (outside Guangdong Province) upon filing with the Municipal Bureau of Commerce, and meet the following requirements.
(1) The domestic exhibition and sales center has gone through the industrial and commercial registration procedures as an exhibition and sales platform;
(2) The domestic exhibition and sales center has entered into a service contract with no less than 50 enterprises of independent legal personality that have completed industrial, commercial and tax registrations in Dongguan, and displays the products of no less than 50 local enterprises;
(3) The domestic exhibition and sales center has an actual display area of 1,000 square meter or more.
2. Funding Standards
(1) Rental subsidy will be granted at 50% of the actual venue rental of the exhibition hall in the first year, up to a maximum of RMB 35 per month per square meter and RMB 500,000 per year (available from the month of approval).
(2) Decoration subsidy will be granted at 50% of the actual overall decoration fee of the exhibition hall, up to a maximum of RMB 1,000 per square meter and RMB 500,000 in total. (The period of decoration can be applied retroactively to the year before the approval at the earliest).
Article 7 Supporting exhibition invitation and organization in Dongguan City
1. Eligibility
Enterprises that are legally incorporated in Dongguan and organize and hold conventions and exhibitions in the city; or chambers of commerce (associations) and social organizations that provide services to the conference and exhibition industry.
2. Funding Standards
(1) Key Exhibitions. For each exhibition held in a purpose-built exhibition hall in Dongguan upon filing with the Municipal Bureau of Commerce with a display area of 10,000 square meters (inclusive) and a duration of 3 or more days, the organizer will be granted subsidy at RMB 3 per square meter per day based on the actual venue rental incurred, up to a maximum of 5 days and RMB 1 million per exhibition.
(2) New and Imported Exhibitions. For each new or imported professional exhibition held in a purpose-built exhibition hall in Dongguan upon filing with the Municipal Bureau of Commerce with a display area of 10,000 square meters (inclusive) and a duration of 3 or more days, the organizer will be granted RMB 200,000 as subsidy. For those certified by the UFI or sponsored by a national industry association, the subsidy will be increased to RMB 300,000. An additional subsidy of RMB 100,000 will be granted for each additional RMB 5,000 square meter of display area, up to a maximum of RMB 3 million per exhibition.
(3) Featured Exhibitions in Towns, Subdistricts and Industrial Parks. For each exhibition held in places other than a purpose-built exhibition hall in Dongguan upon filing with the Municipal Bureau of Commerce with a display area of 20,000 square meters (inclusive) and a duration of 3 or more days, the organizer will be granted 50% of the actual costs invested (including publicity expenses), up to a maximum of RMB 300,000 per exhibition.
Article 8 Speeding up the “going global” process to explore emerging markets
1. Eligibility
Enterprises that are legally registered in Dongguan and participate in overseas trade and exchanges in 2024, such as the China Processing Trade Products Fair (CPTPF) roadshows and promotion.
2. Funding Standards
Each participating enterprise will be granted airfare and accommodation subsidies for no more than 2 employees, up to 80% of the actual expenses incurred and a maximum of RMB 50,000 per event.
Article 9 Guiding the local manufacturing sector to develop digital trade through the application of e-commerce
(I) Cross-border e-commerce business by manufacturing enterprises
1. Eligibility
Manufacturing enterprises incorporated in Dongguan that actively promote the Dongguan Cross-border E-commerce Digital Trade Demonstration Project, provided that the enterprise or its parent earns no less than RMB 100 million of consolidated operating income in the previous year and has its own brands.
2. Funding Standards
If a manufacturing enterprise purchases or uses the products or services of the operation and service providers of Dongguan Cross-border E-commerce Digital Trade Demonstration Project, such as cross-border e-commerce consulting and diagnosis, construction and operation of independents, compliance operation, digital marketing, cross-border payment, cross-border logistics, supply chain management, training of cross-border e-commerce talents, the enterprise will be granted a subsidy equivalent to 50% of the actual expenses invested, up to a maximum of RMB 2 million per enterprise.
(II) Cultivation of Dongguan cross-border e-commerce service enterprises
1. Eligibility
Service enterprises incorporated in Dongguan that actively promote Dongguan Cross-border E-commerce Digital Trade Demonstration Project, provided that the enterprise or its parent provides cross-border e-commerce industry services to no less than 20 enterprises (including Dongguan enterprises).
2. Funding Standards
If a service enterprise purchases or uses the cross-border e-commerce products or services of the operation and service operators of Dongguan Cross-border E-commerce Digital Trade Demonstration Project, the enterprise will be granted a subsidy equivalent to 50% of the actual expenses invested, up to a maximum of RMB 500,000 per enterprise.
(III) Holding of cross-border e-commerce activities
1. Eligibility
Cross-border e-commerce industry organizations, enterprises and industrial parks that hold an activity related to Dongguan Cross-Border E-commerce Trade Demonstration Project, and the number of participants in the activity exceed 100.
2. Funding Standards
For each industry event organized upon filing with the Municipal Bureau of Commerce to promote Dongguan Cross-Border E-commerce Trade Demonstration Project, the organizer will be granted a subsidy equivalent to 50% of the actual costs incurred, up to a maximum of RMB 500,000 per event.
Article 10 Improving services throughout the domestic and foreign trade process
(I) Purchase of domestic trade credit insurances
1. Eligibility
Foreign trade enterprises of independent legal personality that have gone through industrial, commercial and tax registration procedures in Dongguan, and taken out domestic trade credit insurances with an insurance company (provided that, during the period of support, the actual export volume of the enterprise is included in calculating Dongguan’s foreign trade statistics). Relevant insurance policy shall be issued by an insurance institution (including a branch or central subbranch) registered in Dongguan, or by the provincial branch of an insurance company having an office (including business department) in the city.
2. Funding Standards
An enterprise that takes out domestic trade credit insurance will be granted up to 30% of the actual premiums paid as subsidy, up to a maximum of RMB 500,000 per year.
(II) Purchase of export credit insurances
1. Eligibility
Enterprises registered in Dongguan that take out short-term export credit insurance with companies registered to engage in the business and pay the corresponding premiums.
2. Funding Standards
Each Dongguan enterprise that purchases short-term export credit insurance (except for “inclusive platforms” and similar projects) will be granted 30% of the actual premiums paid as subsidy, up to a maximum of RMB 500,000 per year.
(III) Comprehensive foreign trade service projects
1. Eligibility
Comprehensive foreign trade service enterprises registered in Dongguan and filed with the tax and other relevant departments.
2. Funding Standards
(1) Enterprises included in the List of Key Comprehensive Foreign Trade Service Enterprises for Cultivation in Guangdong province will be granted a one-time reward of RMB 80,000, RMB 60,000 and RMB 30,000 for digital platform enterprises, model enterprises and growth enterprises respectively.
(2) Subject to a compliance with the requirements of tax and other relevant departments, as from January 1, 2024 (inclusive), an enterprise that entrusts a third party to build a comprehensive foreign trade service system will be granted a one-time subsidy equivalent to 50% of the actual costs incurred in building the system, up to a maximum of RMB 150,000; an enterprise that use the comprehensive foreign trade service system of a third party will be granted a one-time subsidy equivalent to 50% of the actual costs of use, up to a maximum of RMB 30,000.
Article 11 Enhancing the capacity of ensuring delivery channels for domestic and foreign trade orders
1. Eligibility
Container port operators included in the calculation of container throughout in Dongguan City (consolidated reporting can be made by port operators owned by the same controller)
2. Funding Standards
(1) If a port operator opens (or adds) no less than 6 international shipping routes in the year, and such shipping routes record no less than 60 voyages and an year-on-year voyage increase of over 10%, the operator will be granted a subsidy based on the following standards: RMB 100,000 per voyage for near-sea shipping lines, RMB 150,000 per voyage for ocean-going shipping lines, RMB 80,000 per voyage for added shipping lines, and RMB 600,000 per voyage for shipping lines dedicated to cold-chain products. The maximum amount of subsidy for each enterprise shall not exceed RMB 15 million.
(2) If a port operator opens (or adds) no less than 8 international shipping routes in the year, and such shipping routes record no less than 80 voyages and an year-on-year voyage increase of over 15%, the operator will be granted a subsidy based on the following standards: RMB 100,000 per voyage for near-sea shipping lines, RMB 150,000 per voyage for ocean-going shipping lines, RMB 80,000 per voyage for added shipping lines, and RMB 600,000 per voyage for shipping lines dedicated to cold-chain products. The maximum amount of subsidy for each enterprise shall not exceed RMB 20 million.
Article 12 Strengthening services for foreign-funded enterprises
1. Eligibility
New foreign-funded enterprises or capital increase projects in Dongguan (except for real estate projects, banking and pseudo-banking projects) that meet the prescribed requirements. The classification of industries shall be based on the Standard Classification of National Economic Industries of the People’s Republic of China.
2. Funding Standards
(1) For multinational headquarters or regional headquarters established in Dongguan with actual annual foreign capital (as included in the calculation of foreign capital in the year, and excluding loans of the foreign shareholders. The same rule applies below) of over USD 10 million (inclusive), capital increase projects of over USD 30 million (inclusive), and new projects of over USD 50 million (inclusive), the Municipal Finance Bureau will provide subsidies based on the type of industry the enterprise is in. In case of manufacturing enterprises, the subsidy shall be 1.5% of the actual amount of foreign capital in the year, up to a maximum of RMB 100 million; in case of non-manufacturing enterprises, the subsidy shall be 1% of the actual amount of foreign capital in the year, up to a maximum of RMB 100 million.
(2) For capital increase projects in Dongguan with annual actual foreign investment between USD 10 million (inclusive) and USD 30 million, and new projects in Dongguan with annual actual foreign investment between USD 30 million (inclusive) and USD 50 million, the Municipal Finance Bureau will provide a reward equivalent to 1% of the actual foreign investment in the year, up to a maximum of RMB 10 million.
(3) Where an overseas investor expands its production and operation using the profits distributed by a resident enterprise in China, it will be granted a subsidy according to the above standards if the prescribed requirements are met.
Chapter III Project Application and Approval
Article 13 The Municipal Bureau of Commerce publishes the guidelines for application of special funds, organizes the applications, and modifies the guidelines each year as needed. The applicants apply in accordance with relevant provisions of the guidelines.
Article 14 The Municipal Bureau of Commerce takes charge to review the project applications submitted by the applicants, organize the review, and develop a project support plan. The approved projects are then publicized to the society via relevant websites for a period of 5 natural days. If a project and its applicant receive no objection, the Municipal Bureau of Commerce will request funds from the Municipal Finance Bureau and allocate the same; If a project or its applicant receives any objection during the publicity period, the Municipal Bureau of Commerce will organize an investigation of the objection, and issue a conclusion report accordingly.
Chapter IV Fund Distribution and Execution
Article 15 The special funds of the Municipal Bureau of Commerce can be applied for other purposes, including supportive polices where the municipal finance is required by the higher department to share in the budget, funding items where the municipal finance is required or encouraged by the higher department to provide matching subsidies, as well as other items decided by the Municipal Party Committee and Municipal Government. Relevant support shall be reported on a “case by case” basis to the Municipal Government and implemented upon approval. The special funds shall be subject to management based on total budget; where the funds requested in a year exceed the total annual budget amount, funding will be pro-rated based on the budget balance. Con the budget size and number of applications for key projects, the Municipal Bureau of Commerce shall determine in a reasonable manner the number of projects and applicants to be supported as well as the amount of the final subsidies or awards without exceeding the funding limits, to ensure that the special funds are used effectively. Here “reasonable manner” mainly include:
(I) applying the special funds within the annual budget to the applicants on a “first come, first served” basis, until the budget runs out.
(II) reducing the proportion and amount of funding within the maximum amount of subsidy available to the applicants based on the budget size and number of project applications
(III) providing funding to the best projects in a competitive way.
Chapter V Allocation of Funds and Accounting
Article 16 Support to the enterprises shall take the form of fund incentives.
Article 17 Eligible units shall apply to the Municipal Bureau of Commerce for support or incentives. Repeated application for the same project is not allowed. The municipal finance will not provide the same support or incentives to a project more than once.
Article 18 The Municipal Finance Bureau shall, based on the approved special fund support plan, appropriates funds to the Municipal Bureau of Commerce in accordance with the procedure for allocation of budget fund. The Municipal Bureau of Commerce then allocate the funds to the applicants.
Article 19 A unit shall, after receiving the funds, account for the same in line with the existing accounting system.
Chapter VI Supervision, Inspection and Legal Liability
Article 20 The Municipal Bureau of Commerce shall supervise and inspect the implementation of projects that use the special funds.
Article 21 All units are strictly prohibited from withholding or misappropriating special funds. Those that fraudulently obtain, withhold or misappropriate special funds, or use special funds in violation of relevant rules may, in light of the circumstances, be given any of the following measures: revocation of projects, recovery of funds, and disqualification from application for five years. Moreover, the violators will be punished according to the Regulations on Punishment of Financial Offences; where a crime is constituted, the violation will be transferred to the competent juridical authorities in accordance with the law and relevant responsible persons will be investigated for their legal liabilities.
Article 22 Where the administrative departments in charge or their staff abuse authority, neglect duties or play favoritism for personal gains during the supervision and management of special funds, relevant units and individuals shall have the right to report the violation which, if verified, shall be subject to administrative sanction or investigation of legal liability (if a crime is constituted) in accordance with the law.
Article 23 An applicant for subsidies or awards shall meet the following requirements:
(I) The applicant must be an enterprise or organization registered in Dongguan that has independent legal personality and operate honestly in accordance with the law, or any other organization meeting the eligibility requirements contained in these measures and the corresponding application guidelines.
(II) The legal representative of the unit using the special funds shall be responsible for implementing the project and ensuring the legality and authenticity of the application materials and the use of the funds. If an applicant is found, during review, to have practiced fraud, it will be placed on the list of dishonest enterprises and disqualified from applying for funding in five years. The applicant shall also be investigated for the legal liabilities if the fraud constitutes a crime.
(III) The applicant shall put in place a sound financial system and subject itself to inspection and supervision by relevant departments.
(IV) The applicant shall strictly manage its project expenses. For projects receiving support, each expense in excess of RMB 10,000 shall be paid through the bank account of the unit. Expenses deducted against the purchase price or paid through trade discount, and projects applying for less than RMB 1,000 will not be supported.
(V) No special funds will be allocated to applicants that:
1. provide false materials during the application;
2. are disqualified from applying for support due to violation of the provisions on special fund management;
3. are placed by the competent departments on the list of enterprises with seriously unlawful and dishonest acts;
4. are in any other circumstance that disqualifies the applicants from support under the Notice of Dongguan Finance Bureau on Issuing the Provisions on the Scope of Projects Unsupported by Special Funds of Dongguan City for Promoting EconomicDevelopment (Dong Cai Gui [2023] No. 2).
5. is a public institution receiving full financial appropriation.
Chapter VII Supplementary Provisions
Article 24 Where the subsidy under these Implementing Rules and other preferential policies of Dongguan City overlaps, the applicant shall apply for the higher of the two.
Article 25 The Municipal Bureau of Commerce and the Municipal Finance Bureau shall jointly interpret and implement the guidelines for these Implementing Rules. These Implementing Rules shall come into force on March 18, 2024 and remain valid until December 31, 2026. The specific content of the application shall be subject to the application guidelines for the corresponding year. During the implementation, regular reviews and performance evaluations will be performed to timely adjust related polices based on the result of implementation, policies of the higher authorities, and significant changes in situation. The implementation of these rules shall be assessed by a third party entrusted in accordance with the law.
Note: This normative document has been issued upon compliance review by the justice bureau. The document number is DGSSWJ-2024-019.
