To all units concerned,
For the purpose of carrying out the Notification of the People’s Government of Shenzhen Municipality on Circulation of Certain Measures for Facilitation of the Development of Parallel-import Automobiles in Shenzhen Municipality (file reference: Shenzhen Governmental Notification  No.473), and further clarifying the application processes and standards of related supporting projects, the Operating Procedures of the Commerce Bureau of Shenzhen Municipality for Funding the Parallel-import Automobiles Supporting Program by Special Funds, as formulated by the Commerce Bureau of Shenzhen Municipality, are hereby issued to you for your conscientious implementation.
Commerce Bureau of Shenzhen Municipality
April 16, 2019
The Operating Procedures of the Commerce Bureau of Shenzhen Municipality for Funding the Parallel-import Automobiles Supporting Program by Special Funds
Chapter I General Rules
Article I These Procedures have been formulated in accordance with the Budget Law of the People’s Republic of China , the Measures for Control of Financial Funds at City Level for Designated Purposes of Shenzhen Municipality (file reference: Shenzhen Governmental Rule  No.12), the Notification of the People’s Government of Shenzhen Municipality on Circulation of Certain Measures for Facilitation of the Development of Parallel-import Automobiles in Shenzhen Municipality (file reference: Shenzhen Governmental Notification  No.473) and also in the light of factual situation in the sector of parallel-import automobiles in Shenzhen for the sake of not only ameliorating and regulating the administration of the Parallel-import Automobiles Supporting Program (hereinafter referred to as the “Parallel-import Automobiles Supporting Program” or “PASP”), which is entitled to funds specific for industrial development purposes as allocated by the Commerce Bureau of Shenzhen Municipality, but also enhancing the performance in utilization of the said funds.
Article II The funds specific for the PASP under these Procedures refer to the special funds allocated for promoting the development of parallel-import cars within municipal financial budgets.
Article III Utilization and administration of PASP funds are guided by the principles of openness and fairness, legal compliance, priority emphasis, performance management and scientific distribution.
Article IV In terms of performance, the PASP funds are aimed: to build a comprehensive auto industrial cluster with the characteristic of parallel import cars and to facilitate import channel expansion and consumer retention.
Chapter II Facilitation Directions and Methods
Article V PASP funds are mainly disbursed in the following directions:
(I) Import Cars. PASP funds are used to encourage enterprises in Shenzhen to amplify parallel importing of cars.
(II) Operating Costs. PASP funds are disbursed to compensate enterprises' transfer costs incurred at the ports and operating service costs arising from customs clearance.
(III) Rent. PASP funds are disbursed to pay rent for special supervision areas where cars are stored.
(IV) China Compulsory Certification PASP funds are used to encourage enterprises to apply for China Compulsory Certification in importing finished cars.
(V) L/C Costs PASP funds are used to navigate enterprises to lower financing costs by leverage financial services.
(VI) Roll-on/roll-off Transportation. PASP funds are used to stimulate enterprises to expand roll-on/roll-off shipping routes for imported cars.
Article VI. PASP funds are disbursed pursuant to the following standards:
(I) Import Cars. Enterprises that are registered in Shenzhen and import cars by means of parallel import shall be entitled to CNY 3,500/car.
(II) Operating Costs. In the case that the parallel-import cars are cleared at Dachan Bay Port and transferred to qualified special supervision areas for bonded warehousing, enterprises will be entitled to CNY 250/car to cover logistics costs; enterprises that import vehicles by means of customs clearance from Dachan Bay Port will be granted CNY1, 000/car to cover operating service costs incurred thereby.
(III) Rent. For cars that are cleared at Shenzhen ports and stored at qualified special supervision areas, rental allowance is CNY 100/car on a standard basis and no more than CNY 300/car.
(IV) China Compulsory Certification Parallel import car pilot enterprises that independently applied for and obtained China Compulsory Certification will be granted CNY 500,000/vehicle model.
(V) L/C Costs Enterprises that import cars by means of parallel import will be granted at a ratio of 20% respectively for L/C interest and commission charges.
(VI) Roll-on/roll-off Transportation. If an importer transports more than 500 imported cars by roll-on/roll-off ships from Shenzhen port for the first time, it will be given CNY 1.5 million at one stroke; if this importer transports more than 300 imported cars in the same way for the second time, it will be given CNY 750,000 at one stroke; if this importer transports more than 300 imported cars in the same way for the third time, it will be given CNY 300,000 at one stroke. Only for the first three times each year can qualified importers enjoy subsidies.
Article VII Subject to post-event unpaid funding rule, PASP funds shall be disbursed to qualified projects as appropriate, and annual project plan or application guideline shall prevail.
Chapter III Project Application
Article VIII In accordance with these Procedures, PASP funds application guideline (or notification) shall be disclosed on portal website by the Commerce Bureau of Shenzhen Municipality to specify support direction, scope, application criteria and support standards. Qualified units (referred to as applicants hereinafter) may submit application as per regulations and application guideline (or notification).
Article IX Applicants shall meet the following basic criteria:
(I) Legally registered in Shenzhen City (incl. Shenshan Special Cooperation Zone) with independent legal personality;
(II) Have parallel-import vehicles cleared at Shenzhen ports;
(III) Not listed in the List of Business Credit Defaulters Subject to Joint Punishment by competent administrative department and have a good credit record in social credit system of Shenzhen;
(IV) Implement project within prescribed time;
(V) Ensure import-related data consistent with those submitted to customs.
Article X Applicants shall submit the following basic materials:
(I) A project proposal, which clarifies construction and implementation, relevant business data filling, and expected effect or performance goal;
(II) A letter of commitment, which acknowledges and undertakes the authenticity, accuracy and integrity of content, legal operation, performance of safety production responsibilities, and non-repeated application;
(III) Certificates for Uniform Social Credit Code (business license, tax registration certificate, organization code certificate) and other materials that evidence merchants' qualification;
(IV) Other materials to be submitted as per rules.
Article XI The application materials must be true, accurate and integral, and the applicants shall not falsify, arbitrage or defraud special financial funds.
Chapter IV Project Review
Article XII If the applicant meets the application criteria and the application materials submitted are complete, the Commerce Bureau of Shenzhen Municipality shall accept the application; if the applicant meets the application criteria but the materials submitted are not complete, the Commerce Bureau of Shenzhen Municipality shall inform the applicant at one stroke to make up them within a given time limit; if the applicant doesn't meet the application criteria, the Commerce Bureau of Shenzhen Municipality may not accept the application.
Article XIII The Commerce Bureau of Shenzhen Municipality shall review application project according to the following procedures:
(I) The Commerce Bureau of Shenzhen Municipality shall confirm whether the application materials submitted are standard and complete at the time of reviewing;
(II) The Commerce Bureau of Shenzhen Municipality may conduct field inspection or special audit if necessary;
(III) The Commerce Bureau of Shenzhen Municipality shall come up with preliminary review opinions and may solicit opinions from relevant departments if necessary;
(IV) The Commerce Bureau of Shenzhen Municipality shall propose a funding program, and disclose it to the public as per rules except for confidential and secret information. Disclosure term may not be less than seven (7) working days;
(V) Provided that there is no objection upon expiration of disclosure, the Commerce Bureau of Shenzhen Municipality shall issue the funding program and copy to Finance Bureau of Shenzhen Municipality;
(VI) In the event that there is any objection during disclosure, the Commerce Bureau of Shenzhen Municipality shall confirm and handle it as per rules;
(VII) The Commerce Bureau of Shenzhen Municipality shall go through the procedures for centralized payment by treasury pursuant to issued documents.
Article XIV The Commerce Bureau of Shenzhen Municipality shall commission relevant units to be responsible for review and management of the project.
Chapter V Supervision, Inspection and Performance Evaluation
Article XV The Commerce Bureau of Shenzhen Municipality shall conduct performance evaluation as per rules.
Article XVI In the case that a third party is entrusted by the Commerce Bureau of Shenzhen Municipality, both parties shall sign a service agreement which specifies entrusted matters, time requirements, rights & obligations of both parties, and confidentiality requirements beforehand, and conduct supervision on performance of the agreement.
Article XVII The Commerce Bureau of Shenzhen Municipality shall conduct regular inspection and irregular spot inspection on the project reviewed by the entrusted unit to see its implementation and work quality, alongside comprehensive administration and supervision.
Article XVIII Applicants who have obtained funds shall substantially strengthen use management of the special funds, consciously accept supervision and inspection of the Finance Bureau of Shenzhen Municipality, the Audit Bureau of Shenzhen Municipality, and the Market Supervision and Regulation Bureau of Shenzhen Municipality, strictly implement financial regulations and accounting standards, and conduct performance self-evaluation as required.
Article XIX Pursuant to the principles of "Those who review shall be responsible" and "Those who use shall be responsible", the Commerce Bureau of Shenzhen Municipality shall hand over law and regulation violators in the process of fund declaration, audit, disbursement, use management, project acceptance, supervision and performance evaluation to relevant authorities for strict investigation, implement "Dual roles in the same position" and "Responsibility track-down", and strictly hold relevant persons in charge accountable. Those who are suspected of committing a crime shall be transferred to the judiciary authority for criminal responsibility.
Article XX The Commerce Bureau of Shenzhen Municipality shall conduct supervision on applicants, specialized institutions, evaluation institutions, third-party agencies, organizing units and persons in charge concerning project application and management activities, record their credits as per rules, and report to competent department for handling. Those who are suspected of committing a crime shall be transferred to the judiciary authority for criminal responsibility.
Chapter VI Supplementary Rules
Article XXI The Commerce Bureau of Shenzhen Municipality holds the right for interpretation of these Procedures which came into effect from April 16, 2019 and remains in force for the next 3 years.
(Note: The text above is a translation of the Chinese version for reference only. In case of any discrepancy between the two versions, the original published Chinese version shall prevail.)