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http://www.dongguantoday.com    4/6/2011 4:15:00 PM

Guide to the Application of HK-invested Enterprises for Transformation and Upgrading Guidance Project

Dongguan Bureau of Foreign Trade and Economic Cooperation (DBFTEC) set up the supportive platform of guiding the HK-invested enterprises in transformation and upgrading through cooperation with Hong Kong Productivity Council (HKPC) to serve the key HK-invested processing trade enterprises (PTEs) in basic assessment, in-depth assessment and guidance of transformation and upgrading so as to jointly aid them in local transformation and upgrading, impel them to develop new products, realize cleaner production by improving their production automation, saving energy and reducing emission and boost their market competitiveness and anti-risk capability.

1. Main Contents of Guidance Project

The guidance of transformation and upgrading specified in this project contains the following three aspects:
(1) Carrying out the basic assessment. The expert group is organized to the enterprises to investigate their status, product type, strategic direction and requirements for upgrading and transformation and provide them with the improvement suggestions to be implemented in a short time, so as to make them take rapid improvement actions;
(2) Carrying out the in-depth assessment. The expert group is organized to assess the enterprises in an all-round way in order to provide them with the suggestions of long-term, medium-term and short-tem improvement in the process of transformation and upgrading.
(3) Carrying out the special guidance. The expert group formulates the detailed improvement plan and assists them in taking relevant improvement actions through establishment of some “working groups” after jointly selecting some suggested improvement points with the corporate managements participating in guiding services in accordance with the content of basic assessment or in-depth assessment report and with as the selecting principle the enterprises’ resources, capability and strategic focus.

2. Funding Standard

Every PTE participating in the basic assessment shall receive the grant of 80% from Dongguan Finance Bureau (DFB) in accordance with the guiding fee standard of 50000 Yuan per enterprise; every PTE participating in the in-depth assessment shall receive the grant of 50% from DFB in accordance with the guiding fee standard of 100000 Yuan per enterprise; every PTE participating in the special guidance shall receive the grant of 50% from DFB in accordance with their actual paid expenses. The maximum grant for each enterprise amounts to 300000.00 Yuan.

3. Preconditions for Participating in the Guidance

The enterprises participating in the guidance should be geared to Dongguan’s industrial development, placed under the customs management above Category B, and meet one of the following conditions, i.e. the enterprise and its shareholders have no bad credit record (it must provide the written responsibility guarantee); the enterprise make the application by itself; and it has been identified as the foreign-invested enterprises (including CPE) by DBFTEC.

(1) Geared to Dongguan’s foreign-invested industry development;
(2) Identified as the hi-tech enterprise of national or provincial level;
(3) Winning the famous brands and trademarks above the provincial level;
(4) Identified as Dongguan’s reserve enterprise to be listed;
(5) Identified as the experimental enterprise of Dongguan for transformation and upgrading or the key enterprise of town (sub-district) for support;
(6) Identified as the experimental enterprise of Dongguan for “brand building” and the experimental enterprise of domestic sale;
(7) Recommended by the four top chambers of commerce in Hong Kong, DBTREC or town (sub-district) FECO after consenting

4. The application procedures and the applying-for-funding procedures

The enterprises that intend to participate in the guidance can declare their guidance demands to the local town (or sub-district) foreign economic cooperation office, Dongguan City Association of Enterprises with Foreign Investment (DGAEFI) or Productivity (Dongguan) Consulting Co., Ltd. Such institutions shall give the recommendation opinions and submit all materials to DBFTEC. DBFTEC shall screen and determine the above enterprises together with HKPC.

Following the enterprise’s application being examined and approved, DBFTEC shall, together with HKPC, deliver a letter of confirmation to the enterprise and make it public on the internet. HKPC shall provide the guiding service of transformation and upgrading to the enterprises of which application has been examined and approved.
The enterprises that have completed the guidance of transformation and upgrading can apply for the funding to DBFTEC.

The following materials are required when the enterprises apply for guidance:

(1) The Application Form for Guidance of Transformation and Upgrading showing the recommending opinions by the recommender units (those that apply for assessment and guidance must fill in this Application);
(2) The Application Form for Field Assessment of Transformation and Upgrading (those that apply for assessment must fill in this Application Form);
(3) The enterprises with foreign investment (EFIs) shall submit the written opinions, certificate of approval (including the front and the back) from the department of foreign investment administration as well as the copy of the business license; the CPEs shall submit the copies of the approved agreement and the business license.
The following materials are required when the enterprises apply for cost subsidy:
(1) The Application Form of Dongguan for Appropriation of Special Fund concerning Transformation and Upgrading of Processing Trade;
(2) The EFIs shall submit the written reply document and certificate of approval (including the front and the back) from the department of foreign investment administration as well as the copy of the business license; the CPEs shall submit the copies of the approved agreement and the business license;
(3) The copies of the vouchers of expense disbursement including invoice and bank remittance certificates (such as bank reconciliation statement or bank remittance documents must be stamped with the bank’s seal);
(4) The copy of the written report from the guiding institution after the guiding service ends.

5. Fund Appropriation

The enterprises can apply for the funding to DBFTEC at any time after the assessment or guidance is ended. DFB shall, in principle, appropriate the grant once every quarter.

Source:Dongguan Bureau of Foreign Trade and Economic Cooperation  Editor: Tan Jing
 
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