Qianhai promotes high-quality development of trade and logistics industry

The Qianhai Authority has recently issued a regulation to promote the high-quality development of trade, logistics, shipping services and commerce.

The new regulation came into effect June 25 and will remain in force for a period of three years.

The rule is applicable to legal entities, non-legal person organizations, and their branches, as well as natural persons who are actively conducting business within the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. These entities must not be included in the serious dishonesty entity list at the time of declaration, and are involved in activities such as trade logistics and shipping services, unless stated otherwise in the regulation.

A corporate legal person that has successfully completed the AEO (Authorized Economic Operator) advanced certification and is currently within the valid timeframe will be granted a one-time assistance of 200,000 yuan (US$27,526.4). A corporate legal person that has been granted the RCEP “Approved Exporter”status and is within the valid period will receive an additional support of 50,000 yuan.

A financial assistance of 200,000 yuan will be granted to institutions participating in new bonded activities, including research and development, testing and repair, and exhibitions and sales of bonded goods outside of bonded areas, within the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, depending on the yearly scale of bonded activities.

Support will be offered to corporate legal entities renting warehouses and office properties within the customs special supervision area of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. The support will amount to 5% and 10% of the rental price, respectively, based on the lower of the market assessed price and the actual price. Each firm is eligible to receive a maximum of 3 million yuan per year.

Corporate legal persons are advised to enhance and convert their warehouse facilities in the bonded area into smart systems. If individual projects start operations on or after Jan. 1, 2023, and have not previously received similar support from municipal fiscal policies, a one-time support equivalent to 10% of the total actual investment (excluding daily use and maintenance costs) that is no less than 1 million yuan will be granted, with a maximum cap of 3 million yuan. In the case of a corporate entity seeking support for multiple projects concurrently, the annual cumulative support amount is limited to 6 million yuan.

Cruise line corporate legal persons that establish new cruise routes at the Shekou Cruise Homeport and operate a minimum of 12 trips per year are eligible for a one-time financial supportbased on the type of route. Each corporate legal person can receive a maximum of 3 million yuan annually. Routes that have Shekou Prince Bay Cruise Homeport as the departure port will receive 1.5 million yuan in support each, while routes that include Shekou Cruise Homeport as a port of call will receive 1 million yuan in support each.

In the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, institutions or natural persons, who pay personal income tax and buy a new yacht valued at 2 million to 6 million yuan, and then register the yacht in Shenzhen for the long term, will be eligible for support equal to 5% of the yacht's purchase price. The total support given to any one person or organization cannot exceed 1 million yuan per year, and each yacht is only eligible for support once.

Institutions hosting yacht trade shows with a minimum of 20 yacht brands in the previous year will be granted a single support of 200,000 yuan after giving advance notice. Each institution is eligible to receive up to 400,000 yuan in annual support.

The regulation also focuses on promoting the retail industry, the consolidation of high-quality resources, support for cost reduction and efficiency enhancement for merchants, the encouragement of high-quality dining establishments, and the backing of the automotive retail sector's development and the improvement of consumption quality within the Qianhai cooperation zone.

Retail businesses operating within the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone that achieve annual sales of goods totaling at least 200 million yuan and year-on-year growth rates of 10%, 15%, or 20% will be eligible for support equivalent to 0.1%, 0.15%, or 0.2% of their annual sales, respectively. Each individual firm can receive a maximum of 3 million yuan per year.

Retail and catering companies with their headquarters located in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone that increase the number of their directly operated branches (each with yearly sales of at least 2 million yuan) in the Qianhai cooperation zone and other areas across the country will be granted a one-time assistance of 50,000 yuan and 30,000 yuan per branch, respectively. Depending on the total number of branches expanded, each company headquarters is eligible to receive a maximum of 200,000 yuan annually for expansion support.

International and domestic renowned companies are incentivized to establish their inaugural store in Asia, Chinese mainland, South China, or Shenzhen within the Qianhai cooperation zone, with a one-time financial backing of 1 million yuan, 800,000 yuan, 500,000 yuan, and 200,000 yuan, respectively. Business entities engaged in commercial activities within the Qianhai cooperation zone that successfully attract these companies will be entitled to a 10% reward of the corresponding financial support, capped at a maximum of 500,000 yuan per year per organization.

Commercial firms that establish new commercial premises with a floor area of no less than 10,000 square meters in the Guiwan, Qianwan, Mawan, and the exhibition areas of the Qianhai cooperation zone are eligible to receive a single operational subsidy of 40 yuan per square meter, capped at a maximum of 5 million yuan per firm.

Merchants who are opening new shops in the Guiwan, Qianwan, Mawan, and the exhibition areas of the Qianhai cooperation zone with a commercial space of at least 100 square meters will receive support. The support will not exceed 50% of the actual rent paid and a maximum of 500,000 yuan per merchant.

In addition, restaurant establishments that are recognized with prestigious awards like Michelin stars or Black Pearls for the first time will be eligible for up to 500,000 yuan in financial assistance. Automotive retail businesses with annual sales exceeding 300 million yuan and achieving year-on-year growth will be entitled to receive up to 2 million yuan in rental subsidies. Additionally, financial aid of up to 1 million yuan in venue subsidies will be offered to support automotive launches or the introduction of new products.