Interim Management Measures of Sanya City for the Special Funds for Cross-border E-commerce

Print Sanya municipal bureau of justice Updated: 2023-06-21

Chapter I General Provisions

Article 1 These Measures are formulated, in accordance with documents including the Official Reply of the State Council on Approving the Establishment of Cross-border E-commerce Comprehensive Pilot Zones in 46 Cities and Areas Including Xiong'an New Area (G.H. (2020) No 47) and the Notice of the General Office of the People's Government of Hainan Province on Issuing the Implementation Plan for China (Sanya) Cross-border E-commerce Comprehensive Pilot Zone (Q.F.B.H. (2020) No 207) and based on the actual conditions of Sanya city, for the purpose of accelerating the development of the China (Sanya) Cross-border E-commerce Comprehensive Pilot Zone, cultivating new business formats of cross-border e-commerce, forming new momentum for foreign trade development, standardizing the management of the special funds for cross-border e-commerce and improving the use efficiency of fiscal funds.

Article 2 For the purpose of these measures, the special funds for cross-border e-commerce refer to the special funds arranged by the annual fiscal budgets of the city, which are used to promote the development of the city's cross-border e-commerce industry.

Article 3 Recipients of the special funds under these measures refer to market entities with independent legal person qualification legally registered and paying tax in the city (including cross-border e-commerce enterprises, cross-border e-commerce platforms, cross-border e-commerce third-party service providers and cross-border e-commerce industry base operators). The specific requirements are as follows:

(1) A recipient of the special funds shall be registered and conduct business on the online comprehensive service platform of the China (Sanya) Cross-border E-commerce Comprehensive Pilot Zone and shall be included in the cross-border e-commerce statistical monitoring system of the comprehensive pilot zone and submit data as required.

(2) It shall substantively operate in the city (substantive operations refer to the fact that the actual management body of the enterprise is located in the city and exercises substantive comprehensive management and control over the enterprise's production, operations, personnel, accounting and finance).

(3) It shall not be listed by "Credit China" as a defaulter or a party to any case of major tax offenses. Its legal representative shall have no dishonest conduct, not be restricted from high-level consumption and not fall under any other related circumstance.

(4) Multiple enterprises that have the same ultimate de facto controller (a same shareholder holds at least 50 percent shares in each of such enterprises) shall be deemed as one enterprise.

Article 4 Quantitative business indicators such as import/export trade value and cargo quantity under these Measures must be electronically declared to the comprehensive pilot zone Platform as required.

Article 5 The city attaches importance to the introduction of enterprises with superior resources in the industry chain that may be of great significance to the development of the city's cross-border e-commerce industry. Before offering policy support to such enterprises, the city may, in accordance with the approach of "case-oriented discussion", report to the people's government of Sanya city for approval.

Article 6 The special funds shall be managed jointly by the Sanya municipal commerce bureau and the Sanya municipal finance bureau.

The Sanya municipal commerce bureau is in charge of taking the lead in organizing the declaration and review of the special funds, drawing up allocation plans for the special funds and performing performance assessments of the special funds.

The Sanya municipal finance bureau is in charge of the budget management and fund appropriation of the special funds, as well as the supervision, inspection and performance assessment of the fund use together with the Sanya municipal commerce bureau.

Chapter II Application Scope and Standards

Article 7 Cultivating business entities of cross-border e-commerce

(1) Supporting micro-, small- and medium-sized cross-border e-commerce enterprises

A cross-border e-commerce enterprise that completes the business volume of 3,000 orders per year is entitled to a one-time financial reward of 30,000 yuan ($4,186) based on its cross-border e-commerce import and export performances. The same enterprise may only apply once.

(2) Guiding the standardized development and size expansion of cross-border e-commerce enterprises

Cross-border e-commerce enterprises with import trade value of 10 million yuan per year will be rewarded with 1 percent of the trade value. For the portion shipped from the city to other domestic cities outside the island where the import trade value reaches 300 million yuan, the enterprises will be rewarded with 3 percent of the trade value. If the export trade value of a cross-border e-commerce enterprise amounts to 20 million yuan per year, the reward will be 0.1 yuan for each $1. The same data may only be declared once. Enterprises that have implemented the policy of enterprise income tax collection on a deemed basis will no longer enjoy such rewards.

(3) Encouraging enterprises to build e-commerce trading platforms

If a cross-border e-commerce trading platform built by an enterprise has been in operation for at least one year and the annual transaction value included in statistics exceeds10 million yuan, a one-time subsidy of up to 50,000 yuan may be granted.

Article 8 Supporting the establishment of offline industry bases for cross-border e-commerce

(1) Overall support

For cross-border e-commerce industry bases identified by the industrial park management bodies in the comprehensive pilot zone upon assessment (the indoor operating area is at least 3,000 square meters, and the occupancy rates of substantively operating enterprises and cross-border e-commerce enterprises reach 80 percent and 50 percent, respectively), corresponding financial subsidies will be provided based on the actual turnover of the cross-border e-commerce enterprises in the bases throughout the year. Specifically, 100,000 yuan will be granted if the turnover of all cross-border e-commerce enterprises in a base amounts to 200 yuan million or above (no more than 500 million yuan), 200,000 yuan if the turnover amounts to 500 million yuan or above (no more than 1 billion yuan), and 300,000 yuan if the turnover amounts to 1 billion yuan or above.

(2) Incubation and gathering of micro-, small- and medium-sized cross-border e-commerce enterprises in the bases

Logistics, warehousing, payment, finance, customs brokerage, training, agency operations, digital marketing and other service providers are supported in their settlement in the industry bases of the industrial parks in the comprehensive pilot zone. Enterprises that meet relevant conditions, such as headquarters, Internet, national high-tech enterprises or the new infrastructure policy, may enjoy the support policies of municipal, district and free-trade-port key park management bodies in the city. The financial support shall be provided in accordance with the principle of "high-level rewards/subsidies over lower ones to ensure no repeated enjoyment".

As identified by the industrial park management bodies in the comprehensive pilot zone, if a cross-border e-commerce industry base that has been in operation for one year cultivates each year six micro-, small- and medium-sized enterprises with annual import and export value of at least $500,000, it will be rewarded with 30,000 yuan, and if such number of enterprises cultivated reaches eight, the industry base will be rewarded with 50,000 yuan.

Article 9 Encouraging the development of cross-border e-commerce logistics and warehousing

(1) Encouraging logistics enterprises and logistics platforms to settle

Logistics enterprises and logistics platforms are supported in their settlement in the comprehensive pilot zone platform. Logistics enterprises that meet the requirements of the comprehensive pilot zone platform for the entry of intelligent logistics projects and provide services/products are entitled to financial support. For cross-border e-commerce logistics enterprises that have served at least five cross-border e-commerce enterprises within the first six months of settling in the comprehensive pilot zone platform with a logistics service amount totaling no less than 500,000 yuan, each of them will be granted a subsidy of 30,000 yuan if they declare the data on the comprehensive pilot zone platform as required.

Cross-border e-commerce logistics enterprises that provide logistics services through the Comprehensive Pilot Zone Platform and whose total annual service amount is no less than 500,000 yuan are encouraged to reduce their logistics charges for related businesses of cross-border e-commerce enterprises in the city. Comprehensively considering their fee reductions, financial subsidies not exceeding 8 percent of the actual logistics order prices of the e-commerce enterprises may be provided, and each logistics enterprise may receive a maximum subsidy of 500,000 yuan each year.

Logistics orders must be generated through the intelligent logistics module of the comprehensive pilot zone platform or the order back office must be connected with the intelligent logistics platform. Logistics enterprises shall provide supporting materials such as online orders and offline bills.

(2) Encouraging regulated bonded places to expand their business scales

For a regulated bonded place in the city that openly provides public service resources, no fewer than two public service warehouses for cross-border e-commerce shall be established. If the total volume of shipments in each annual cycle reaches 360,000 express packages and services within the zone are offered to no fewer than ten cross-border e-commerce enterprises in the city and two logistics enterprises, owners of the regulated bonded place will be subsidized to reduce or remit the warehouse rents payable by cross-border e-commerce warehousing enterprises, provided, however, that the annual maximum subsidy amount shall be 1 million yuan.

(3) Encouraging the development of public warehousing services for cross-border e-commerce

A cross-border e-commerce warehousing enterprise that meets the following specific conditions will be granted a subsidy of 3 yuan for each piece:

1. The enterprise has operated continuously for at least one quarter and maintained normal inbound/outbound operations.

2. The cross-border e-commerce warehouse operating area reaches 1,500 square meters.

3. The warehousing management system has been connected with the comprehensive pilot zone platform as required, providing no fewer than five cross-border e-commerce enterprises in the city with dropshipping services.

4. The average monthly shipment volume reaches 10,000 express packages.

(4) Supporting the development of public overseas warehouses

For public overseas warehouses established for enterprises in the city that are assessed as municipal-level public overseas warehouses of the city, the overseas warehouse construction (operation) enterprises will be subsidized at 30 percent of the construction costs (site leasing, equipment procurement and system development), up to a maximum of 500,000 yuan. Enterprises that build or purchase public overseas warehouse operation sites may enjoy subsidies with reference to this policy. Municipal-level public overseas warehouse assessment standards will be defined and promulgated separately.

(5) Supporting enterprises in reducing the import logistics costs of cross-border e-commerce goods

Against customs clearance documents declared at local customs-regulated places in the city, cross-border e-commerce enterprises will be granted logistics expense subsidies for goods imported through bonded online shopping (BBC "1210" model) in the Comprehensive Pilot Zone: The maximum subsidy amount for container transportation (sea, land or rail) is 2,500 yuan per container for 40-foot containers and 1,500 yuan per container for 20-foot containers. The amount of a single subsidy shall not exceed the actual logistics expenses and the annual maximum subsidy for a single enterprise is 500,000 yuan.

(6) Promoting air cargo transportation for cross-border e-commerce

The development of air cargo transportation for cross-border e-commerce is encouraged. Cross-border e-commerce goods that are included in the statistics of the comprehensive pilot zone platform and whose import/export is declared from a local airport in the city will be subsidized based on the air cargo volume. Export subsidy standards: For a single journey that is within two hours (inclusive), between two hours (exclusive) and four hours (inclusive), between four hours (exclusive) and seven hours (inclusive), between seven hours (exclusive) and ten hours (inclusive) or more than ten hours (exclusive), the subsidy is 0.6 yuan per kilogram, 0.8 yuan per kg, 1 yuan per kg, 1.2 yuan per kg and 1.4 yuan per kg, respectively. Import subsidy standards: 50 percent of the export subsidy standards will be granted. Goods that have not been released by the customs with the cross-border e-commerce import list declaration uncompleted will not be included in the scope of import subsidies.

Relevant data needs to be included in the statistics of the comprehensive pilot zone platform. The subsidy recipients are registered air freight logistics (including freight forwarding) enterprises in the city. Data of the same transportation section may only be declared once. If the goods have been rewarded in accordance with the fiscal subsidy measures of Hainan province for the development of air cargo transportation, they will be subsidized at 50 percent of the above-mentioned export and import subsidy standards.

Article 10 Supporting the live stream economy development of cross-border e-commerce

Transaction data realized through cross-border e-commerce live streaming must be proactively declared with relevant supporting materials provided. The amount of returned goods is not included in the statistical scope of rewards/subsidies. Upon declaration, the enterprises may enjoy the rewards/subsidies in accordance with the standards only after verification of transaction authenticity. Enterprises that have already been granted subsidies for import trade value will be entitled to 50 percent of the reward standards for cross-border e-commerce live streaming.

(1) Live commerce for cross-border e-commerce

Cross-border e-commerce enterprises whose annual sales of self-owned goods exceed 50 million yuan for the first time with the help of live streaming will be rewarded with 0.4 percent of the sales. The annual maximum reward for a single enterprise is 1 million yuan. For live streaming personnel employed by locally registered enterprises, if they have more than 500,000 followers on mainstream live streaming platforms and generate cross-border e-commerce product sales of at least 10 million yuan through live streaming with the products shipped from the city, rewards equivalent to 0.3 percent of the annual sales created by live commerce will be provided, and a single anchor may receive no more than 500,000 yuan each year.

(2) Live streaming bases for cross-border e-commerce

Enterprises in the city are encouraged to build cross-border e-commerce live streaming bases that integrate anchor incubation, live commerce and e-commerce operations through site reconstruction. For a live streaming base, if the live streaming area reaches 1,000 square meters, the number of signatories reaches 40, the number of operation service team members reaches ten and the actual annual sales created by live commerce reach at least 100 million yuan, the enterprise that operates the base will be granted a comprehensive operation subsidy of no more than 500,000 yuan.

(3) Live streaming platforms for cross-border e-commerce

Live streaming platforms are encouraged to take full advantage of the channel and intensify the cross-border product marketing of locally registered enterprises through live streaming. If the annual transaction value created by live commerce reaches 100 million yuan or 300 million yuan, the live streaming platforms will be rewarded with 500,000 yuan or 1 million yuan, respectively.

Article 11 Supporting overseas digital marketing and brand building of cross-border e-commerce

The establishment of a service system including independent website development and running, social media marketing, overseas brand promotion and digital marketing training is supported.

(1) Cross-border e-commerce export enterprises with sales of at least $10 million in the previous year are encouraged to strengthen the overseas registration and international certification of cross-border e-commerce. Cross-border e-commerce enterprises that have their own trademarks registered in the countries of destination for cross-border export are entitled to one-time financial subsidies of no more than 70 percent of the overseas trademark registration fees of the year, provided that the trademark registration and product certification are completed on the current year. A single enterprise may receive no more than 100,000 yuan. For cross-border e-commerce enterprises that have passed international certification in the countries of destination for cross-border export, one-time financial subsidies of no more than 70 percent of the international certification fees of the year will be granted, and the maximum amount receivable by a single enterprise is 100,000 yuan.

(2) Local cross-border e-commerce enterprises are encouraged to conduct on-site promotion through cross-border e-commerce platforms. Financial subsidies equivalent to 25 percent of the on-site promotion costs will be granted to those with their own brands, with a maximum of 100,000 yuan for a single enterprise.

(3) Local enterprises are encouraged to carry out overseas promotion through off-site marketing, such as cooperation with overseas social media, search engines and other digital platforms to promote their own brands. Subsidies equivalent to 50 percent of the off-site marketing expenses will be granted, with a maximum of 200,000 yuan for a single enterprise.

In the overseas trademark registration, international certification and brand promotion mentioned above, the enterprises need to provide supporting materials such as contracts and domestic invoices during declaration. A single cross-border e-commerce enterprise may receive a maximum subsidy of 400,000 yuan each year.

Article 12 Strengthening the cultivation of professionals

For training and activities that aim to improve the management and operation capabilities of cross-border e-commerce enterprises, after filing with the management body of the comprehensive pilot zone and application through the comprehensive pilot zone platform, if there are no fewer than 20 participants in a single training session, a subsidy of no more than 10,000 yuan will be granted each time.

Chapter III Application Materials and Review and Approval Procedures

Article 13 To apply for the special funds, the following application materials shall be provided:

(1) A photocopy of the duplicate of the enterprise's business license.

(2) The enterprise's financial audit report of the previous year audited by an accounting firm.

(3) Project application form.

(4) Project fund application report.

(5) Letter of integrity commitment.

(6) Documentary evidence of cross-border e-commerce enterprise qualifications.

(7) Data proof required for reward/subsidy determination in accordance with relevant standards.

(8) Supplementary materials required by the notice of application.

Article 14 Review and approval procedures

(1) The Sanya municipal commerce bureau is in charge of reviewing and organizing appraisal of project support applications submitted by applying entities. When needed, it is also in charge of entrusting intermediary agencies that meet the conditions for government purchase of services to conduct special audits and organizing expert evaluation.

(2) Projects approved to be supported will be announced to the public through the website and the announcement period will be seven working days. Afterwards, the Sanya municipal commerce bureau will apply to the Sanya municipal finance bureau for funding and appropriate the same to applying entities and projects to which there is no objection.

(3) In the event of any objection to a project or an applying entity during the announcement period, the objector shall give feedback to the Sanya municipal commerce bureau and provide relevant supporting materials, and the Sanya municipal commerce bureau shall take the lead in the verification and handling.

Chapter IV Supervision and Management

Article 15 Supervision on the use of the Special Funds for cross-border e-commerce

(1) The special funds for cross-border e-commerce shall be earmarked for its specified purpose only. Recipients of the Special Funds shall keep accounts in accordance with the provisions of relevant financial and accounting policies of China, use the funds in strict accordance with the specified purposes, and consciously accept the supervision and inspection of finance, commerce, audit and other authorities.

(2) Once any false reporting, fraudulent collection, withholding, misappropriation or occupation of the special funds in violation of financial and economic discipline is ascertained, relevant enterprises that have received corresponding rewards/subsidies will need to return the funds proactively and make corrections in accordance with the order requirements. Meanwhile, in accordance with the Regulations on Penalties and Sanctions Against Financial Violations (Order No 427 of the State Council), the competent financial authorities, audit organs and supervisory bodies shall handle the cases, introduce penalties and impose sanctions in accordance with the law.

Chapter V Supplementary Provisions

Article 16 For the above-mentioned rewards, application will be organized in the coming year. Rewards and subsidies of the previous annual cycle will be paid based on the performances and business volumes of the enterprises. Relevant application procedures and requirements will be announced in the form of an application notice on the comprehensive pilot zone platform. Enterprises must submit application materials in accordance with the requirements in the application notice. The overdue submission of application materials after the application deadlines will be deemed as an automatic waiver of the rewards and subsidies.

Article 17 An enterprise that moves out of the city within five years after receiving any reward/subsidy under these measures shall return such reward/subsidy previously enjoyed.

Article 18 The actual ratios and amounts of rewards and subsidies are controlled by the annual fund budgets. For a single reward/subsidy, if the total reward/subsidy amount of all applying enterprises exceeds the total reward/subsidy amount of the city, the reward/subsidy will be allocated proportionally based on the number of eligible applying enterprises during the application period, provided, however, that such a single reward/subsidy receivable by a single enterprise shall not exceed 30 percent of the total reward/subsidy amount of the city. Within the control of annual fund budgets, reallocation may be made among all single rewards/subsidies in light of the reality. Those that cannot be reallocated will be prioritized in the next annual cycle.

Article 19 These measures shall be implemented in accordance with the principle of "preferably greater and higher rewards/subsidies to ensure no repetition". The industrial park management bodies in the comprehensive pilot zone shall, based on their own actual conditions and key tasks, introduce measures with regional characteristics to support cross-border e-commerce.

Article 20 The specific application issues of these measures shall be interpreted by the Sanya municipal commerce bureau.

Article 21 These measures shall come into force as of Oct 1, 2021 and remain valid until Sept 30, 2022.

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