Laws of the People's Republic of China

Circular of Ministry of Commerce and Ministry of Finance on Doing Well the Work of Application for Project of Trade Promotion Funds for Agricultural, Light Industry and Textile Products in 2006

Shang Mao Han [2006] No.78

The authorities of Commerce and the public finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, cities specially designated in the state plan and Xinjiang Production and Construction Corporations, relevant export industrial organizations and enterprises directly under Central Authorities:

In order to promote the industrial upgrading and structural adjustment of agricultural, light industry and textile industry, improve the quality of export products of these industries, and strengthen the international competitiveness, according to the provisions of the Interim Measures for the Administration of Trade Promotion Funds for Agricultural, Light Industry and Textile Products (Shang Gui Fa [2005]No.507, hereinafter referred to as the Measures ), issues in respect of the application for project of trade promotion funds for agricultural, light industrial and textile industrial products in 2006 are hereby notified as follows:

I.

The important scope of activities supported by the funds in 2006

1.

Monetary support for the service-offering of industrial platform of public technique

Industrial platform of public technique is an organization invested by industrial organizations, enterprises or other social organizations solely or jointly and serving export enterprises of the industry. The platform, through providing public techniques and equipments required by research and development, design, quality control and products test mainly for export market, offers service for the formulation, exchange, extension, consultation and training of new technology, design, material, art and standard, or self-examination and pre-examination of export products.

2.

Monetary support for the establishment of the traceable quality system for export agricultural products

Traceable quality system for export agricultural products is a system for tracing export products, established by export enterprises based on the relevant standards and the requirements of GAP, HACCP or organic products, etc. The traceable systems set up by enterprises shall make records of pesticide, veterinary medicine, seedling, breeding livestock and poultry, breeding and circulation, and make sure that the products can be traced back to processing or producing links by means of such electronic information as electronic labels or bar codes.

Projects which have been applied and supported by special funds such as "going global", etc, of central finance for textile enterprises, can not be applied again or enjoy the funds of the same content.

II.

Standards of fund support

All the projects shall be supported partially. Projects in the middle and the west can be subsidized no more than 70% of the actual investment, and projects in other places can be subsidized no more than 50%. Industrial platforms of public technique can be subsidized no more than 2 million, and the establishment of the traceable quality system for export agricultural products can be subsidized no more than 1 million.

Projects finished during the period from January 1, 2004 to December 31, 2006 can be applied.

III.

Materials required for the application for projects

1.

The applicant for the project shall file the following materials:

(1)

A written application for project of trade promotion funds for agricultural, light industry and textile products in 2006, which shall include the basic information of enterprise. When applying for subsidy for industrial platform for public technique, the application shall include the following: the scope of objects of the service, the available service items and products, expected situation of service after the implementation of the project, attainable objective and effect, and whether or not the applicant has applied and enjoyed the subsidy of central finance of the same kind. When applying for subsidy for the establishment of traceable quality system for exported agricultural products, the applicant shall offer the information of production, processing and export from 2003 to 2005, the basic information about the establishment of traceable quality system for export agricultural products (management manner, base construction, registration, authentication, labs, influence on export) and the plan and objective for the next step.

(2)

Authenticated or approval documents acquired by the applicant.

(3)

The copy of the duplicate of business license of the applicant.

(4)

The copy of the Registration Form for International Trade of the applicant.

(5)

The financial statements of 2004 and 2005 audited by accounting agents.

(6)

The receipt of actual payment of the project funds. And

(7)

Other materials required.

2.

Authorities of commerce and finance at the provincial level (hereinafter referred to as local authorities) and unites directly under the central authorities (hereinafter referred to enterprises directly under central authorities and national organizations of export industry, and the same hereafter) shall file the following materials:

(1)

Written application for trade promotion funds for agricultural, light industry and textile products in 2006, including the situation of preliminary examination, fundamental introduction of the applicants and the projects, and the opinions of preliminary examination, as well as the expected attainable object and effect after the project is finished when applying for subsidy for industrial platform of public technique.

(2)

When applying for the project of industrial platform of public technique, an agreement, signed by the applicant and provincial authority of commerce (or its authorized department, the same hereafter), that the project will offer favorable service for enterprises, shall be submitted. The agreement shall contain specific information offered by the applicant to enterprises, the clause that the service objects will be regularly reported to the authority of commerce, the clauses as to the content and charges of the service, and the liabilities of the applicant for breach of the agreement etc. The unit directly under central authorities shall file the aforesaid agreement concluded with the authority of commerce at the provincial level (authorized by Ministry of Commerce) where the unit is located.

(3)

The collected form of applications for projects, in the sequence of priority, for trade promotion for agricultural, light industry and textile products.

(4)

The materials offered by the applicants (submit only to the Foreign Trade Development Bureau of Ministry of Commerce).

Local authorities and units directly under central authorities shall prepare the materials in triplicate, and submit them respectively to the Department of Foreign Trade of Ministry of Commerce and the State Equity & Corporate Finance Department of Ministry of Finance as well as one duplicate to the Foreign Trade Development Bureau of Ministry of Commerce. The deadline for submission is October 31, 2006.

All the materials shall be printed in A4 papers and bound at the left side. Both the printed materials and the electronic text (in the form of disk) shall be submitted. The application submitted after the deadline will not be accepted, and the materials failing to satisfy the requirements will not be examined or assessed.

The expenses computed in foreign currency shall be converted to RMB at the exchange rate publicized by People's Bank of China on the day when the receipt of expenses is made.

IV.

Examination and Appropriation

Ministry of Commerce as well as Ministry of Finance examine the project according to the provisions of the Measures and this circular, and fix the projects supported. Then Ministry of Finance appropriates funds to provincial authorities of finance.

The funds for projects will be appropriated when the projects are finished and accepted after examination. The following rules shall be complied with:

1.

The projects finished by local units, after examination and acceptance of provincial authorities of commerce, shall be reported to the authorities of finance at the same level for examination and appropriation of funds.

2.

The projects finished by units directly under central authorities, after examination and acceptance of the Foreign Trade Development Bureau and reexamination of Ministry of Commerce, shall be reported to Ministry of Finance for examination and appropriation of funds.

The deadline for the work of examination and acceptance shall be February 15, 2007. The projects failing to do so will not get the appropriation, and the funds left will be carried over to next year.

The specific provisions for examination and acceptance will be notified separately.

The local authorities shall strengthen coordination and cooperation, actively do well the work of organization and preliminary examination of project application, and actually strengthen the supervision and inspection of the use and the effect of the funds under the provisions of the Measures. The authorities also shall summarize and analyze the use of the funds, and report the results to Ministry of Commerce and Ministry of Finance.

Ministry of Commerce

Ministry of Finance

August 23, 2006