Chapter I General Provisions

Article 1 In order to strengthen and regulate the management of Beijing's Special Fund for the Development of Foreign Trade and Economic Relations, improve the policies for the promotion of foreign trade and economic relations, build a new open economic system, foster new competitive advantages in international economic cooperation, and increase the efficiency of fund use, these Implementation Rules are formulated in light of Beijing's particular conditions and in accordance with the Measures of the Ministry of Finance and the Ministry of Commerce for the Administration of Special Funds for the Development of Foreign Trade and Economic Relations (Cai Qi [2014] No. 36), the Circular of the Ministry of Finance and the Ministry of Commerce on the Application of the Special Fund for the Development of Foreign Trade and Economic Relations for 2015 (Cai Hang）[2015] No. 216), and the Circular of the General Office of the Ministry of Commerce on Utilizing the Special Fund for the Development of Foreign Trade and Economic Relations for 2015 to Accomplish Tasks Related to International Service Outsourcing and Technical Export (Shang Ban Fu Mao Han[2015] No. 612).

Article 2 Beijing's Special Fund for the Development of Foreign Trade and Economic Relations (hereinafter referred to as the "Special Fund to foreign trade") refers to the special fund allocated by the Central Finance and the People's Government of Beijing Municipality to support the development of foreign trade and economic relations in Beijing. The sources of the fund include: special fund for the development of foreign trade and economic relations allocated from Beijing municipal budget and the special fund for the development of foreign trade and economic relations allocated to our city from the central budget.

Article 3 The use and management of the Special Fund shall conform to our municipal economic development plans and the industrial and regional development policies of the municipal government, follow the principle of "giving priority to key areas; based on scientific demonstration; being fair and just, regulated and effective", and meet the following requirements:

(i) implementing the State's opening-up and macroeconomic policies, playing a positive role in stabilizing and opening up the international market, and promoting the balanced development of foreign trade;

(ii) fulfilling China's obligations under international trade and investment treaties and playing a positive role in developing a mechanism for mutually beneficial and win-win international economic cooperation;

(iii) ensuring coordination between trade policies and industrial policies, facilitating the transformation of the foreign trade development mode, and promoting the transformation and upgrading of open economy; and

(iv) playing the role of main market players, expanding the expansion of foreign investment cooperation, and facilitating the orderly flow and optimal allocation of domestic and international resources.

Article 4 The Special Fund shall be jointly managed by Beijing Municipal Finance Bureau and Beijing Municipal Commission of Commerce. Beijing Municipal Finance Bureau and Beijing Municipal Commission of Commerce shall perform the following management duties, respectively:

(i) Beijing Municipal Finance Bureau works with Beijing Municipal Commission of Commerce to develop the management policy for the Special Fund; Beijing Municipal Commission of Commerce works with Beijing Municipal Finance Bureau to develop specific business management policies.

(ii) According to the needs of foreign trade and economic development in the city, Beijing Municipal Commission of Commerce establishes a database of key projects, suggests key areas to be supported by the Special Fund and puts forward annual budget proposals; Beijing Municipal Finance Bureau reviews the proposed key areas and prepares the annual budget for the Special Fund.

(iii) Beijing Municipal Commission of Commerce works with Beijing Municipal Finance Bureau to organize project application and review, put forward fund support plans, evaluate and supervise project implementation, and establish an information management system to provide technical means for project database construction, project application, information feedback, supervision and management, and performance assessment; Beijing Municipal Finance Bureau reviews the fund support plans and funds allocation and works with Beijing Municipal Commerce Commission to supervise and inspect the use of funds and conduct performance assessment thereof.

Chapter II Scope of Fund Support

Article 5 The Special Fund will be used for the following purposes:

(i) Supporting the coordinated development and structural adjustment of foreign trade and economic relations.

1. Providing support for enterprises with an import-export volume less than USD 65 million and enterprises with independent brands and independent intellectual property rights (hereinafter, "double-independent" enterprises) to enhance their international operation capability. The scope of support covers: informatization construction such as enterprise training and foreign-trade software cloud services; surveys, publicity, promotion and exhibitions in the international market; overseas patent application, trademark registration and qualification certification; overseas bidding and negotiations. Priority will be given to business expansion to emerging markets such as Latin America, Africa, the Middle East, Eastern Europe, Southeast Asia and Central Asia, and to the business development of "double-independent" enterprises in the international market.

2. Supporting the transformation, upgrading and structural optimization of foreign trade. Support will be given to promote the innovation, R&D and design, branding, and standard setting for foreign-trade products, facilitate the establishment of international marketing and service networks, develop foreign-trade information survey service systems, improve comprehensive supporting service functions and trade facilitation, boost foreign-trade innovation and development, enhance product quality, and foster new competitive advantages.

(ii) Encouraging imports of advanced equipment and technologies, key spare parts and components, and resource products in short supply domestically. Enterprises will be supported to import products (excluding used products) listed in the Catalogue of Technologies and Products Encouraged for Import issued by the National Development and Reform Commission, the Ministry of Finance and the Ministry of Commerce in the current year through general trade and cross-border trade, or import technologies listed in the Catalogue from non-related enterprises.

(iii) Encouraging enterprises to undertake international service outsourcing business and export technologies. This includes specifically:

1. Undertaking international service outsourcing business. This refers to such business activities that enterprises in Beijing sign service outsourcing contracts with their overseas customers, provide international (offshore) outsourcing services to them, and obtain revenues from overseas (see the Annex for the scope of such business). Key support will be provided for enterprises to build demonstration-city public service platforms for service outsourcing; for enterprises undertaking international service outsourcing business to  complete the certification for international access, institute training systems, develop the international market, strengthen branding, improve the level of R&D and innovation, and establish international (offshore) outsourcing centers and R&D centers; and for training institutions (including colleges and universities) to train international service outsourcing professionals.

2. Exporting technologies. This refers to the transfer of patent rights, transfer of patent application rights, patent licensing, and transfer of proprietary technologies or licenses by enterprises in Beijing to overseas entities through trade, investment or economic and technological cooperation, and technical services provided thereby under contracts on the transfer of technologies or licenses. Technologies listed in the Catalogue of Technologies Prohibited or Restricted from Export (Decree [2008] No.12 of the Ministry of Commerce and the Ministry of Science and Technology) are not included in the scope of support. Priority will be given to the export of internationally competitive and mature industrial technologies as well as technical services.

3. Encouraging and supporting the rapid development of service trade in Beijing. Support will be provided for service trade enterprises, chambers of commerce, business associations and relevant training institutions in Beijing to actively carry out activities related to service trade. The scope of support covers international service outsourcing business, including overseas business presence projects, housing renting, self-built housing or housing purchase subsidy projects by key service outsourcing enterprises, offshore business incentive projects, talent training projects supported by the State, and overall promotion projects for the service outsourcing industry; technological trade and cultural trade; development of statistical systems for service trade; construction of public service platforms for service outsourcing, technological trade and cultural trade; service-trade research and training.

(iv) Providing guidance for orderly progress in overseas investment and cooperation.

1. Supporting key overseas investment and cooperation projects. Support will be given to mutually beneficial and win-win overseas investment and cooperation in line with the State's key plans in advantageous industries including railway, electric power, communications, engineering machinery, aerospace and aviation, steel, deep processing of non-ferrous metals, building materials and chemical production lines, automobiles, ships and marine engineering, and in other sectors such as agriculture and forestry as parts of the State's key planning. This includes specifically:

(1) Overseas investment refers to the act of an enterprise founding or acquiring an overseas non-financial enterprise or acquiring the ownership or the right to control and manage an existing overseas non-financial enterprise.

The priority of support will be given to investment and cooperation projects in line with the key planning of the State and Beijing and to overseas investment projects funded in RMB.

(2) International contracting projects refer to overseas construction projects undertaken by enterprises, including consulting, surveying, design, supervision, building, procurement, construction, installation, commissioning, operation and management.

The priority of support will be given to engineering projects with high added value, great influence, as well as brand and technical-standard advantages, carried out in infrastructure, fundamental industries, and areas conducive to improving the local livelihood.

2. Supporting the improvement of public services for international labor cooperation. International labor service cooperation refers to the business activities of enterprises organizing labor service personnel to go to other countries or regions and work for overseas enterprises or institutions. In accordance with the Regulations on the Administration of Foreign Labor Cooperation and the Letter of the Ministry of Commerce, Ministry of Foreign Affairs, Ministry of Public Security, and State Administration for Industry and Commerce on the Printing and Distribution of the Measures for the Development and Trial Operation of Service Platforms for Foreign Labor Cooperation (Shang He Han [2010] No. 484), relevant work shall be done to support the development of public service platforms for international labor cooperation, enhance service functions such as information consultation, competence training, protection for rights and interests, and regulatory guidance, and expand the scope of service.

3. Supporting the construction of overseas economic and trade cooperation zones. Support will be provided for the construction of overseas economic and trade cooperation zones that meet the requirements of the Notice of the Ministry of Commerce and the Ministry of Finance on Printing and Distributing the Administrative Measures for the Certification and Annual Assessment of Overseas Economic and Trade Cooperation Zones (Shang He Fa [2015] No. 296) and have passed the certification and annual assessment by the Ministry of Commerce and the Ministry of Finance.

4. Carrying out training for enterprises to "going global" and platform development. Support will be provided for the organization of targeted training for enterprises to "going global", the development of information service platforms and risk prevention and control platforms, and the enhancement of enterprises' capabilities to "go global" and operate internationally.

5. Subsidizing the promotional work carried out by local enterprises (organizations) in Beijing, as entrusted by the competent authorities, for the purpose of promoting Beijing's overseas investment and cooperation.

6. Other projects included in the State's key investment and cooperation plans.

(v) Supporting and promoting the development of the commercial convention and exhibition industry.

(vi) Providing support for enterprises to participate in domestic and overseas exhibitions, exchanges and promotions, establish industrial damage early-warning mechanism, and take out credit insurance; encouraging enterprises to "go global", and promoting industry consulting and training and the development of public service platforms for foreign trade information service to serve the development of foreign trade enterprises.

(vii) Improving the environment for the development of foreign trade and economic relations and the key areas of development thereof supported by the State and Beijing.

Chapter III Methods and Standards for Fund Use

Article 6 The Special Fund to foreign trade shall be used mainly in the form of financial subsidies, discounted interest on loans and other methods determined or approved by the ministries and commissions of the Central Government and Beijing Municipal People's Government.

Article 7 Funds allocated by the Central Government by the project method shall be reviewed and distributed by the following procedures:

Beijing Municipal Commission of Commerce and Beijing Municipal Finance Bureau collect the application materials submitted by enterprises and entities affiliate thereto to and submit them to the Ministry of Commerce and the Ministry of Finance after preliminary review in accordance with the annual working requirements. After the application materials are evaluated and reviewed by the Ministry of Commerce and the Ministry of Finance, the latter will appropriate the funds to the Beijing Municipal Finance Bureau. After receiving the funds (or fund allocation documents) from the Ministry of Finance, the Beijing Municipal Finance Bureau shall promptly appropriate the funds to Beijing Municipal Commission of Commerce, which will then promptly appropriate the funds to relevant enterprises and entities.

Article 8 The funds allocated by the Central Government by the factor method and the Special Fund arranged by the municipal budget shall be used by the following methods and standards.

See Annex 1 for the specific methods and standards for the use of fund for the purpose of providing support for enterprises with an import-export volume less than USD 65 million and enterprises with independent brands and independent intellectual property rights to enhance their international operation capability, as specified in Item 1, Paragraph (i) of Article 5 hereof;

See Annex 2 for the specific methods and standards for the use of fund allocated by the Central Government by the factor method to support the construction of model-city public service platforms for service outsourcing, as specified in Item 1, Paragraph (iii) of Article 5 hereof;

See Annex 3 for the specific methods and standards for the use of fund allocated by the Central Government by the factor method to support enterprises in undertaking international service outsourcing projects, as specified in Item 1, Paragraph (iii) of Article 5 hereof;

See Annex 4 for the specific methods and standards for the use of fund allocated by the Central Government by the factor method to support technological export projects, as specified in Item 2, Paragraph (iii) of Article 5 hereof.

See Annex 5 for the specific methods and standards for the use of fund intended to encourage and support the rapid development of service trade in Beijing, as specified in Item 3, Paragraph (iii) of Article 5 hereof.

See Annex 6 for the specific methods and standards for the use of fund intended to guide the orderly development of overseas investment and cooperation projects, as specified Paragraph (iv) of Article 5 hereof;

Please refer to the annual notice for the methods and standards for the use of fund intended for cross-border e-commerce projects, as specified in Item 2, Paragraph (i) of Article 5 hereof.

Chapter IV Application Review and Appropriation

Article 9 Beijing Municipal Finance Bureau and Beijing Municipal Commission of Commerce shall, in accordance with these Implementation Rules and in light of the priorities in the annual work related to foreign trade and economic relations, the project database and budget arrangements, formulate and issue the annual application documents on the Special Fund to define the priorities, purposes and specific requirements of annual fund support. In addition, without changing the specified scope of use of the Special Fund, the balance of the Special Fund will be used for the annual key projects to be supported.

Article 10 A project that has received the relevant special fund from the government may not apply for the special fund again.

Article 11 Procedure for Project Application and Review:

All fund projects under the Special Fund shall be applied through the "Special Fund Management System of the Ministry of Commerce".

In principle, the applications shall be managed by the local authorities, and shall be submitted to Beijing Municipal Commission of Commerce after preliminary review by the commissions of commerce at district or county level. If the purposes of the funds are otherwise specified, the specified purposes shall prevail.

Public projects and annual key projects determined by Beijing Municipal People's Government shall be reviewed directly by Beijing Municipal Commission of Commerce.

Projects reviewed and approved by Beijing Municipal Commission of Commerce shall be submitted to an agency entrusted according to regulations for project review or capital review in line with the "four-unified" principle of the commercial system.

Article 12 Fund Appropriation

For projects that have been reviewed and approved, Beijing Municipal Finance Bureau shall go through the procedures for fund appropriation according to the relevant provisions of the state treasury management system.

Article 13 After receiving the special fund, the project unit shall conduct fund accounting in accordance with the relevant regulations of the State.

Article 14 Beijing Municipal Finance Bureau and Beijing Municipal Commission of Commerce may, according to the fund management requirements, allocate relevant administrative expenditure from the Special Fund for project evaluation, supervision and inspection. The proportion of extraction shall not exceed 2% of the total amount of the municipal foreign trade funds, and shall be strictly controlled.

Chapter V Supervision, Inspection and Performance Management

Article 15 The budgets for various fund projects under the Special Fund shall come with clear performance targets and assessment indicators, and the amount of fund budget for the next year shall be determined according to the attainment in terms of the annual performance targets.

Article 16 The projects under the Special Fund shall be managed in accordance with the relevant provisions of Beijing's project management system for commercial development funds. Beijing Municipal Finance Bureau and Beijing Municipal Commerce Commission are responsible for supervising and inspecting the use of special funds and the implementation of projects. Inspections can be conducted in such forms as on-site check for acceptance and project evaluation by an entrusted agency. Each fund user shall accept the supervision and inspection by financial and commercial authorities at the same and higher levels as well as audits by the audit authorities at the same and higher levels.

Article 17 No entity may intercept or misappropriate the special funds in any form. Entities that provide false invoices, false certificates, false qualification documents or other false materials, once verified through investigation, shall be dealt with in accordance with the Regulation on Penalties and Sanctions against Illegal Fiscal Acts (State Council Decree No. 427).

Chapter VI Supplementary Provisions

Article 18 These Implementation Rules shall be interpreted by Beijing Municipal Finance Bureau and Beijing Municipal Commission of Commerce according to their respective duties.

Article 19 These Implementation Rules shall become effective as of the date of issuance. The Opinions of Beijing Municipal Commission of Commerce and Beijing Municipal Finance Bureau on the Implementation of the Measures of the People's Government of Beijing Municipality for Helping Enterprises Cope with the International Financial Crisis (Jing Shang Wu Ji Cai Zi [2009] No. 10) and the Circular of Beijing Municipal Finance Bureau and Beijing Municipal Commission of Commerce on Printing and Distributing the Implementation Rules for the Management of Beijing's Special Fund for the Development of Foreign Trade and Economic Relations (Jing Cai Qi [2014] No. 2494) shall be concurrently repealed.

Annexes: 

1. International Market Development by Small- and Medium-sized Enterprises and "Double-Independent" Enterprises

2. Public Service Platform for Service Outsourcing

3. Undertaking International Service Outsourcing Projects

4. Technological Export Projects

5. Municipal Support for Service Outsourcing

6. Overseas Investment and Cooperation