An Announcement of Printing and Releasing Management Measures (Trial) for Industrial Investment (Technological Transformation) Projects in Ningbo by Ningbo Municipal Economic and Information Technology Committee and Ningbo Municipal Finance Bureau

An Announcement of Printing and Releasing Management Measures (Trial) for Industrial Investment (Technological Transformation) Projects in Ningbo by Ningbo Municipal Economic and Information Technology Committee and Ningbo Municipal Finance Bureau

NBEIC Technological Transformation〔2017〕No. 134

【Policy Guidance】

The Management Measures (Trial) for Industrial Investment (Technological Transformation) Projects in Ningbo (hereinafter referred to as “Management Measures”) has been drafted by Ningbo Municipal Economic and Information Technology Committee and Ningbo Municipal Finance Bureau with the purpose of further implementing the spirit of Several Opinions on Promotion of the Development of Ningbo as It being a Pilot Demonstration City for the National Strategy of “Made in China 2025” by Ningbo Municipal People’s Government, making full use of fiscal fund to guide and encourage enterprises to invest more in technological transformation, expanding effective industrial investment and promoting the development of Ningbo as it being the pilot demonstration city for the implementation of the national strategy of “Made in China 2025”.

I. Policy Basis

1. Several Opinions on Promotion of the Development of Ningbo as It being a Pilot Demonstration City for the National Strategy of “Made in China 2025” by Ningbo Municipal People’s Government (Ningbo G [2017] No. 12)

2. An Announcement of Printing and Releasing the Implementation Scheme for the Promotion of the Development of Ningbo as it being a Pilot Demonstration City for the National Strategy of “Made in China 2025” by the General Office of Ningbo Municipal People’s Government (Ningbo G Office [2016] No. 152)

3. Three-year Planning for 15 Intelligent Manufacturing Projects in Ningbo

II. Drafting Process

The drafting began early this year and major work that had been done for the drafting are as follows:

1. Organized policy drafting. The first draft of the Management Measures has been fulfilled upon referring to years’ management measures for project subsidies, project assessment measures and relevant policies for the development of Ningbo as a pilot demonstration city for the implementation of the national strategy of “Made in China 2025” and the major objective and key tasks of the Three-year Planning for 15 Intelligent Manufacturing Projects in Ningbo.

2. Strengthened communication between departments. Many meetings were held, discussing improvement to the first draft with Ningbo Municipal Finance Bureau and came up with today’s report draft upon both parties’ consensus to the general scheme and detailed measures of the Management Measures.

3. Soliciting written opinions from economic and information technology bureaus and finance departments of all district, counties and cities in Ningbo and improving the Management Measures upon these written opinions, which would be finished before next Monday.

III. General Scheme

Management Measures (Trial) for Industrial Investment (Technological Transformation) Projects in Ningbo is composed of 15 terms in 5 chapters, namely general provisions, project management, project support, supervision management and achievement assessment, and supplementary provisions.

Chapter 1 is composed of objective and basis, basic principles and management departments, clarifying that the Management Measures is drafted by referring to the document of Several Opinions on Promotion of the Development of Ningbo as It being a Pilot Demonstration City for the National Strategy of “Made in China 2025” by Ningbo Municipal People’s Government, that support would be provided with the principle of “self innovation, industrial improvement, highlights focused and standard management”, and that economic and information technology bureaus and finance departments of all district, counties and cities in Ningbo are departments in charge of project assessment, completion checking, and assessment, grant and supervision of the subsidy.

Chapter 2 is composed of 6 terms, namely project conditions, municipal technical transformation project scope, project plan library construction and project tracking management, project construction requirements, project completion conditions and project adjustment, clarifying that projects suitable for the Management Measures shall meet requirements of their own industries, that 4 kinds of projects of the integrated circuit industry, intelligent equipment industrial technological transformation, digital workshop/ intelligent factory demonstration and automation (smart) sets of equipment would receive the most support, the development, adjustment and tracking management of the project base of technological transformation projects of more than 10 million RMB and industrial investment projects of over 50 million RMB in Ningbo, detailed requirements on project construction and completion and working procedure and requirements of project content, construction period, project type and investment adjustments.

Chapter 3 is composed of project investment subsidy, local financial contribution reward and support policy implementation procedures, clarifying subsidy ratio and maximum subsidy for key industrial investment projects and technological transformation projects of different industries and categories, financial contribution reward standards for completed projects and maximum grant, and working procedure of confirmation of municipal technological transformation projects, pre-grant of municipal fiscal subsidy, and subsidy for project investment.

Chapter 4 is composed of supervision management and achievement assessment, putting forth requirements on supervision of local economic and information technology bureaus, financial departments and project supporting subsidy and projects.

Chapter 5 makes clear the unit who is responsible for the explanation of the Management Measures and the date of implementation.

IV. Contact

Yang Qianhong, Industrial Investment and Technology Transformation Division, Ningbo Municipal Economic and Information Technology Committee

Tel.: + 86 574 8918 6405

【Body】

Economic and Development Bureaus and Financial Departments of all Administrative Committees, and Economic and Information Technology Bureaus and Financial Bureaus of all districts, counties and cities in Ningbo,

The Management Measures (Trial) for Industrial Investment (Technological Transformation) Projects in Ningbo is now printed and distributed to you for your reference and implementation.

Ningbo Municipal Economic and Information Technology Committee

Ningbo Municipal Finance Bureau

24 July 2017

Management Measures (Trial) for Industrial Investment (Technological Transformation) Projects in Ningbo　　

Chapter I. General Provisions

1/ This Management Measures is drafted with the purpose of accelerating the development of key industrial investment project and major technological transformation projects, nurturing new manufacturing modes, further improving investment structure and promoting the development of Ningbo as a pilot demonstration city for the national strategy of “Made in China 2025” in accordance with regulations of Several Opinions on Promotion of the Development of Ningbo as It being a Pilot Demonstration City for the National Strategy of “Made in China 2025” by Ningbo Municipal People’s Government (Ningbo G [2017] No. 12).

2/ Supporting Principles

a. Self-innovation. To encourage enterprises to focus on structural reform of the supply side, to develop their own advanced technology and equipment by learning and absorbing developed overseas experience, to improve self-innovation capability and to promote improvement of manufacturing technique, equipment and products.

b. Industrial Optimization. To develop the new “3511” industrial system, to develop 8 major sub-divided industries, to nurture a group of new 100-billion-level sub-divided industries and to enhance the overall industrial development in Ningbo.

c. Focus on Highlights. To focus on promotion of advanced manufacturing, to promote implementation of 8 major projects, to support leading and advantageous enterprises and projects, to encourage major projects to accelerate the development of market-oriented system and to strengthen the demonstrative and leading role.

d. Standard Management. To strengthen top design and working guidance, to set up systems and mechanisms, to perfect procedure for open management of projects, to accept social supervision and to strengthen effectiveness of the fiscal fund.

3/ Ningbo Municipal Economic and Information Technology Committee and Economic and Information Technology Bureaus of all districts, counties and cities in Ningbo are departments in charge of industrial investment and technological transformation projects (hereinafter referred to as “Projects”), and are responsible for assessment of Projects.

Ningbo Municipal Finance Bureau and finance bureaus of all districts, counties and cities in Ningbo, together with Ningbo Municipal Economic and Information Technology Committee and Economic and Information Technology Bureaus of all districts, counties and cities in Ningbo are responsible for assessment, grant and supervision of subsidies for Projects.

Chapter 2. Project Management

4/ Projects qualified of this Management Measures shall meet the following conditions:

a. Industrial Condition. Supporting the newly developed key industrial investment projects and technological transformation ones that are listed in the Implementation Scheme for the Development of Ningbo as a Pilot Demonstration City for the National Strategy of “Made in China 2025” for potential investment.

b. Enterprise Condition. The enterprise in charge of the development of the project is legally registered in Ningbo with independent legal person and sound financial management system, pays taxes in accordance with laws and regulations, accept supervision from subversion departments and auditing departments, and actively participate in activities on promotion of experience, onsite communication and filed visiting and learning that are organized by governmental departments.

c. Project Condition.

(a) newly developed key industrial investment projects with an investment of 100 million RMB or above in fixed assets (land cost excluded) and with an investment of 50 million RMB or above in equipment, introduced technologies and software;

(b) Technological transformation projects with an investment of 10 million RMB or above in fixed assets (land cost excluded) and with an investment of 7 million RMB or above in equipment, introduced technologies and software;

(c) Projects carried out in Year 2016 or after and to be finished in 2017 or after but latest before the end of Year 2020. And technological transformation projects are supposed to be finished within 2 years’ time.

(d) Projects shall be included in the Planning Project Library of the year of Ningbo Municipal Economic and Information Technology Committee.

5/ Great support shall be provided to qualified projects of the integrated circuit industry, smart equipment technological transformation, digital workshop/ smart factory demonstration and automated (intelligent) sets of equipment.

6/ Development of Planning Project Library and Tracking Management of Projects

a. Ningbo Municipal Economic and Information Technology Committee shall set up a library of projects on technological transformation with industrial enterprises and invested with over 10 million RMB and a library of industrial investment projects of 50 million RMB and above. Qualified projects would be selected and be provided with support.

b. To set up tracking management system for technological transformation projects of 10 million RMB and industrial investment projects of more than 50 million RMB and help enterprises work out solutions for the problems that enterprises have encountered.

7/ Requirements on starting construction of Projects. As for new industrial investment projects, project record (approval) documents, construction permits, construction contracts and scene photos are required; as for technological transformation projects, project record (approval) documents, signed major equipment purchase contract with already-paid 500 thousand RMB or above are required.

8/ Conditions for Completion of Projects

a. Actual project construction content, construction period and the purchase of equipment, technology and software, project types should be consistent with the project (approved) requirements and expert assessment results of feasibility study report of the project file;

b. The completion of the project investment plan, equipment installation and commissioning, plant built successfully and put into trial production stage, and the actual completion of equipment, technology and software investment accounted for 60% of the number of investment plan (inclusive) above, and provides the project completion report.

9/ Project Adjustment. When the projects under construction, application for adjustment shall be made in case any adjustments to the project and adjustments shall meet the following requirements:

a. Project construction content (civil engineering, the main production equipment, technology, software), construction period, project type, investment adjustment, project construction unit should be in the completion of the project a month before the proposed adjustment application, and fill out the "Ningbo industrial investment (technology) project adjustment application form", submitted by letter at all levels, the finance department for examination and approval, the project type adjustment need to organize experts to assess. Adjustment without approval shall not be approved. Less than one month after the application is made, the amount of equipment, technology and software investment beyond the adjusted new or construction period shall not be included in the allowance investment, but the amount of investment in the equipment, technology and software of the project will be included. Any investment adjustment shall not be less than the minimum fixed asset investment and equipment, technology and software investment specified by the project. Of which: technology and software investment, the actual equipment included in the municipal project plan than the planned investment fluctuate in 20% (inclusive) to 40% (inclusive), or the content of the project construction, project type adjustment, enterprises need to fill in the application form, the local economic and information technology bureaus and financial bureau after stamped, Ningbo Economic and Information Technology Committee agreed to give approval, and report to the Ningbo Municipal Finance Bureau for the record; for other projects of equipment, technology and software investment plan investment fluctuate in 20% (inclusive) to 40% (inclusive), enterprises need to fill in the application form, with the consent of the local economy and information and the audit of the financial sector to be recognized.

b. After the completion of the project actual equipment, technology and software investment according to the record (approved) file, or not more than 40%, less than 40% of the project in principle not recognized completion; more than 40% increase by 40% to give policy support.

c. During construction of the project, the application for approval of the project or the approved application for the adjustment of the project shall prevail. Change the construction period, the longest delay for 6 months, but the new investment projects, major industrial automation equipment (intelligent) pilot project to transform and digital smart factory workshop/ demonstration project, for the longest delay can be adjusted for 1 year, after examination and approval within the extended period, technology and equipment according to the original software investment subsidy standard project implementation. Of which: the municipal project construction period of adjustment, enterprises need to fill in the application form, the economic and information technology bureaus, the finance departments after the audit, submitted to the Ningbo Municipal Economic and Information Technology Committee agreed to give approval, and report to the Ningbo Municipal Finance Bureau for the record; other projects by the local adjustment, economic and information technology departments in conjunction with the finance departments after approval for approval.

Chapter III. Project Supporting　

10/ Project Investment Subsidy

a. Subsidy for new key industrial investment projects. New major industrial investment projects will be subsidized by 10% of their equipment, technologies and software. According to the integrated circuit industry and intelligent equipment industry projects, eight segments of the industry in other projects and other 3511 industrial projects were given the highest 50 million RMB, 30 million RMB, 20 million RMB subsidy. The subsidy funds shall be given subsidies of 30% and 70% respectively according to the two stages of starting, completion and commissioning of the project.

b. Subsidy for technological transformation projects.

(a) The integrated circuit industry, intelligent equipment, intelligent manufacturing industry in the digital smart factory workshop / demonstration project and automatic (intelligent) equipment modification pilot project as a municipal project, according to the equipment, technology and software to give the actual investment does not exceed 20%, the highest 30 million RMB subsidy; other projects, intelligent manufacturing industry segments eight (in network collaborative manufacturing, mass customization, remote maintenance service, intelligent manufacturing standard test) project, basic products of strong industrial base project (manufacturing manufacturing power construction conforms to the Industrial “Four Base” Development Directory (2016 Edition), issued by the National Strategic Advisory Committee, as well as by the demonstration of the application of "3511" industrial enterprises) project, according to the actual investment of equipment, technology and software to give no more than 10%, the highest 20 million RMB subsidy; other projects (including machine substitution project), according to its equipment, technology and software actual investment, give no more than 8%, the highest 10 million RMB subsidy. For one hundred billion leading enterprises, cultivating industry backbone enterprises, cultivating high growth enterprises and individual champion enterprise technology projects, giving priority to financial support, the two stages and according to the project construction, completed a total of 30%, respectively, to grant 70% subsidy.

(b) As for purchase or lease financing companies in our city intelligent equipment intelligent equipment key advantages of enterprises for technological transformation, the purchase and leasing costs for the actual investment to double, according to the project type, properties determine the proportion of subsidies.

c. In case already enjoying subsidies from subsidy planning of Ningbo G [2017] No. 12, such equipment, technology and software shall not enjoy subsidies repeatedly.

11/ Local financial contribution award. The technical transformation projects included in the plans to support the new industrial investment projects, the completion of the project, the year before the year as the base year, the project is completed and put into the year for two consecutive years compared to the base year, according to the new financial contribution to local enterprises (value-added tax and corporate income tax) part of the 60% municipal income, from the completion and operation of the the next year for two consecutive years to give businesses incentives, including technical renovation project two years cumulative reward maximum not more than 10 million RMB.

12/ Policy Implementation Process for Project Supporting

a. Project application

b. Confirmation of planning of municipal projects and other projects

c. Municipal pre-grant subsidies for projects

d. Project investment subsidy policy fulfillment

e. Local financial contribution reward in cash

Chapter IV. Supervision Management & Achievement Assessment

13/ Supervision Management

a. All economic and information technology bureaus and financial departments shall strengthen supervision, standardize working procedure, strictly supervise use of the fund and strengthen coordinative services.

b. The fund for project support must be earmarked, and no unit may withhold, misappropriate, misappropriate or defraud the subsidy funds in any form or for any reason. For those who violate these measures or resort to fraudulent practices to defraud financial aid funds, once verified, they shall cancel the subsidy qualifications and recover the subsidy funds they have allocated, and at the same time cancel their application for special fund support within three years. If the circumstances are serious, the relevant units and personnel shall be investigated for the responsibility in accordance with the Regulations on the Punishment of Financial Illegal Acts (State Council Order No. 427).

c. If the actual investment can not meet the requirements of the completion of the project, the supporting qualifications will be abolished. If the project construction content, investment amount, construction period and type of project need to be adjusted due to proper reasons, the application shall be made in advance, and the project shall be supported upon approval according to the adjusted items.

d. Encouraging projects to adopt autonomous and controllable equipment, techniques and software. Intelligent manufacturing engineering, strong industrial base project according to the three year plan task organization key projects to support, automatic (intelligent) equipment transformation pilot project and strong industrial base project declared clearly notice the specific requirements and evaluation criteria in the project.

14/ Achievement Assessment

Economic and Information Technology Bureaus of all districts, counties and cities in Ningbo are supposed to submit reports on the development of projects to Ningbo Municipal Economic and Information Technology Committee within 25 days when half a year passes and submit an evaluation report on the achievements made thanks to the subsidies to Ningbo Municipal Economic and Information Technology Committee and Ningbo Municipal Finance Bureau before end of each February.

Chapter V. Supplementary Provisions

15/ Ningbo Municipal Economic and Information Technology Committee and Ningbo Municipal Finance Bureau are responsible for the explanation of the Management Measures and are allowed to make revise in due course. This Management Measures takes effect since 25 July 2017.