Administrative Measures for the Use of Special Funds for Supported Industrial Development in Pingtan Comprehensive Pilot Zone (Tentative)

Chapter I General Provisions

Article 1 These Measures are formulated according to the Budget Law of the People’s Republic of China, the Interim Administrative Measures of Pingtan Comprehensive Experimental Zone for Approval of Fiscal Fund Spending and other relevant provisions with a view to regulating the management and use of special funds for supported industrial development in our zone, improving the efficiency of the use of funds, and contributing to the fostering and development of industries in our zone.

Article 2 For the purpose of these Measures, special funds for supported industrial development (hereinafter referred to as the “Special Funds”) refer to the funds that are specially used for supporting and making for the industrial development in our zone under the budget arrangement of the zone treasury.

Article 3 The Special Funds aim to actively explore effective ways to support the development of key industries in the experimental zone, support the improvement of the environment where enterprises develop business, increase the support for key links and key projects, spur the steady growth of industrial scale, promote the optimization and upgrading of the industrial mix, and improve economic quality and benefits.

Article 4 The management of Special Funds shall follow the principles of openness, transparency, focus, efficiency, scientific management, and intensified supervision.

Article 5 The financial bureau of the zone shall perform the following management duties: arrange the annual budget of the Special Funds; be responsible for the supervisory check of the Special Funds; strengthen the management of performance targets of the Special Funds, and monitor and evaluate the accomplishment of key performance targets when necessary, with the performance evaluation results as the important basis for improving budget management and preparing budgets of the following years.

Article 6 The economic development bureau of the zone shall perform the following management duties: propose an annual budget plan for the Special Funds of the industry; propose a task list and a plan for the use and allocation of the Special Funds of the industry; prepare the performance targets of the Special Funds, strengthen the monitoring of performance operations, and organize the performance evaluation of the Special Funds, and make public the budget performance targets and performance evaluation results as specified.

Chapter II Use of Funds

Article 7 The Special Funds fall into funds for supporting enterprise projects and funds for fostering governmental industry projects.

Article 8 Funds for supporting enterprise projects are used for:

(1) The supported enterprise projects shall meet the requirements of the Guide Catalogue of Pingtan Comprehensive Experimental Zone for Industrial Development;

(2) The supported enterprise projects shall fall under the five categories of industries, namely, culture, health and sports industry, logistics and trade industry, headquarters economy, emerging industry, and traditional industry transformation and upgrading;

1. Type of culture, health and sports: projects in such industries as cultural creative industry, health industry, medical industry, and sports industry;

2. Type of logistics and trade: projects in such industries as cross-border e-commerce platform, service trade (including service outsourcing), international trade, cold chain logistics, trade circulation, and commercial carriers;

3. Type of headquarters economy: projects in such industries as the construction of the financial industry infrastructure platform;

4. Type of emerging industry: projects in such industries as digital economy, clean energy, electronic information, new generation communication technology, artificial intelligence and driverless industry, game e-sports, and VR/AR technology;

5. Traditional industry: projects in such industries as construction, and cold chain deep processing of aquatic products;

(3) With respect to projects of the Special Funds to be implemented under the support of the treasury of our zone as required by the province, funds may, with approval of the Management Committee of the Zone, be disbursed from the Special Funds as per these Measures if there is no budget arrangement for such projects;

(4) Other key directions of the use of funds for supporting enterprise projects as determined by the management committee of the zone.

Article 9 Funds for fostering governmental industrial projects are used for:

(1) Projects concerning industrial propaganda, industrial project scheming, and due diligence investigation into industrial projects;

(2) Projects of cooperation with well-known international and domestic third-party consulting institutions and related industrial service procurement projects;

(3) Attraction of investments from Hong Kong, Macao and Taiwan, and industrial cooperation projects themed with the Lan Island and Taiwan;

(4) Other major industrial development strategies and plans of the Central and provincial governments, projects of industrial cooperation between Fujian and Northeast China and landing projects of military-civilian integration industries;

(5) Public platform construction projects of industrial service nature;

(6) Other key directions of the use of funds for fostering governmental industrial projects as determined by the management committee of the zone.

Chapter III Use, Approval and Management

Article 10 Enterprises, units and individuals that receive subsidies of the Special Funds are the first responsible persons for the use of the Special Funds, and shall be responsible for the authenticity of the project implementation declared.

Article 11 The competent departments of various industries shall be responsible for the use and management of the Special Funds, formulate specific implementation measures according to these Measures, reasonably determine subsidy standards and conditions, clarify procedures for application for, allocation of and appropriation of subsidy funds, strengthen and standardize fund management, and formulate and publish guidelines for the declaration of the Special Funds, organize enterprises, units and individuals to carry out fund declaration, review the application materials and entrust experts to review and demonstrate or entrust a social intermediary organization with professional qualifications to evaluate and demonstrate such materials. Where it is necessary for accounting firms for conduct special audits, the competent departments of the industries shall, as per the related provisions, determine and entrust the accounting firms with special audits by way of government procurement, which shall then produce audit reports.

Article 12 The competent departments of various industries shall come up with fund allocation plans based on the audit results, report them to the economic development bureau of the zone for review and deployment and then to the management committee of the zone which will publicize them for five working days during which they will be subjected to social supervision. If there is no objection to such plans, the financial bureau of the zone and the economic development bureau of the zone will jointly grant the funds. If there is any objection, they will confirm that there is not any objection any more before granting the funds.

Article 13 If completed projects need to be inspected, the competent departments of the industries shall be responsible for organizing the inspection. Where there are other provisions of the State, Fujian Province and the Experimental Zone, such provisions shall prevail.

Article 14 The use of the funds for fostering governmental industrial projects shall be subject to the provisions on the spending, use and management of the funds within the zone.

Article 15 The allocation of the Special Funds shall be subject to the relevant provisions on the centralized payment system of the fiscal treasury. When the total demand for the Special Funds exceeds the total amount of annual budget, it shall be scaled down based on the actual situation.

Chapter IV Supervisory Check and Performance Assessment

Article 16 Projects supported by the Special Funds shall be subjected to performance management. The competent departments of various industries supported by the Special Funds shall be responsible for performance assessment of the received Special Funds, and form performance assessment reports, which shall be submitted to the economic development bureau of the zone by March 31 of next year. Then, the economic development bureau of the zone will form a general performance assessment report and submit it to the financial bureau of the zone. The economic development zone and the financial bureau of the zone will not arrange or will less arrange Special Funds to those competent departments of the industries that fail to submit performance assessment reports.

Article 17 Experts and staff members participating in the review shall abide by the review discipline and review rules. If they violate the rules, they shall be dealt with according to the relevant laws, regulations and rules, and prohibited from participating in the declaration, review and performance assessment of the Special Fund within 3 years.

Article 18 If a person makes a fraudulent application or claim for, retains or misappropriates the fund, the relevant department and unit will be dealt with and the related responsible person will be held accountable subject to the related provisions in the Regulation on Penalties and Sanctions against Illegal Fiscal Acts of the State Council, while it is ordered that the fund shall be refunded to the original channel or taken back by the treasury.

Chapter V Supplementary Provisions

Article 19 These Measures shall take effect as of the date of promulgation and will last for one year tentatively.