Interim Provisions of Tianjin Economic-Technological Development Area on Promoting the development of Advanced Manufacturing

Chapter I General Provisions

Article 1 ¡¾Objective ¡¿These provisions are formulated to promote the sustainable development of advanced manufacturing in Tianjin Economic-Technological Development Area (hereinafter called TEDA for short).

Article 2 ¡¾Spheres of Application¡¿These provisions are applicable to production-oriented enterprises which are registered in TEDA and have made actual contribution to the disposable revenue of TEDA, and whose qualifications are confirmed by the TEDA Administrative Commission (hereinafter called TAC for short).

Article 3  ¡¾Special Fund¡¿TEDA shall earmark a sum of money from its fiscal budget to found the TEDA Manufacturing Development Fund in support of the sustainable development of production-oriented enterprises. All the incentives (financial support, subsidies, bounties£¬rewards£¬etc) mentioned in these provisions shall be itemized in and drawn from the TEDA Manufacturing Development Fund.

Article 4 ¡¾Competent Authorities¡¿TEDA competent authority of economic development shall be in charge of the confirmation of the  production-oriented enterprises to which Article 6,7,8,9,10,11,12 or 13  apply.

TEDA competent authority of labor and personnel shall be in charge of the confirmation of the production-oriented enterprises to which Article 14 apply.

TEDA competent authority of finance shall be generally in charge of the examination, verification and fulfillment of all the incentives stated in these provisions.

Article 5¡¾Relevance to Other Levels of Incentives¡¿For those qualified enterprises, the relevant incentives of Tianjin and China shall take precedence over that of TEDA. The incentives offered by these provisions but uncovered by that of Tianjin and China shall be implemented as a supplement.

Chapter II Investment in Newly-established Production-oriented Enterprises

Article 6 ¡¾Support for Construction¡¿A newly-established production-oriented enterprise shall enjoy support for construction after  purchasing land for the purpose of production within TEDA, according to its investment scale, investment density, project quality and so on.

Article 7¡¾Rent Subsidy¡¿A newly-established production-oriented enterprise shall enjoy rent subsidy for the lease of standard factory buildings within TEDA, according to the category it falls into. Such an enterprise shall enjoy a full subsidy within one year since the date of the lease and a 50% subsidy in the following two years in accordance with the standard agreed on between the enterprise and the TEDA competent authority of economic development. The maximal subsidized area of leased standard factory buildings is 4,000 square meters.

An enterprise is encouraged to lease the second or above floors of standard factory buildings and may consequently enjoy a higher subsidy.

An enterprise may receive a lump-sum subsidy, calculated according to the above mentioned standards, for the purchase of standard factory buildings.

Article 8¡¾Support for operation¡¿A newly-established production-oriented enterprise shall enjoy support during the initial five years of its operation according to the category it falls into and its actual economic contribution.

Chapter III Investment Expansion

Article 9 ¡¾Support for Investment Expansion¡¿Based on its actual economic contribution, a domestic-funded production-oriented enterprise which manages to increase production capacity within TEDA through investment expansion or profit reinvestment shall receive support for not less than five years.

An overseas-funded production-oriented enterprise which manages to increase investment or reinvest their own profits shall enjoy incentives provided in the relevant regulations of Tianjin and China.

Article 10 ¡¾Bounty for Investment Expansion¡¿A production-oriented enterprise which manages to increase registered capital by one million US dollars or above within the initial three years after its registration shall be rewarded 1% of the capital increase. The maximum is five million RMB yuan.

Article 11¡¾Bounty for Business Expansion¡¿A production-oriented enterprise which manages to introduce new manufacturing categories (the code of which should be listed in GB/T4754-2002 and different from their previously registered ones) shall be rewarded 1% of the incremental business income for not less than three years. The maximum may reach 30 million RMB yuan accumulatively.

Chapter IV Sustainable Development

Article 12 ¡¾Reward for Business Synergy¡¿ A production-oriented enterprise which manages to introduce suppliers or business partners to register within TEDA shall be rewarded based on the actually-in-place registered capital of the introduced enterprises.

Article 13 ¡¾Loan Interest Subsidy¡¿A production-oriented and technological-intensive enterprise shall, upon the appraisal of the TAC, enjoy a subsidy of a maximum of 50% of the annual interest rate (calculated at the benchmark interest rate) of their loans for investment in fixed assets. However, the subsidy shall not exceed 50% of the recipient¡¯s contribution to the disposable revenue of TEDA of the same year. The maximal time limit for enjoying the interest subsidy shall be three years and the accumulative maximum shall be three million RMB yuan.

Article 14¡¾Bounty for Fiscal Contribution¡¿With an operational history of more than three years, a salary collective negotiation system, zero record of major environmental and safety accident within the current year, and an increase in fiscal contribution by one million RMB yuan or above annually to TEDA¡¯s disposable revenue (Various incentives granted by TEDA in the same year shall be deducted) a production-oriented enterprise shall be rewarded 20%, 30%, 40%, 50% and 60% of the annual incremental part of their contribution respectively for not less than five years since the promulgation of these provisions. A minimum of 30% of this bounty shall be used to improve the welfare of workers on the production line in forms such as lump-sum bonus and otherwise.

Article 15 ¡¾Introduction and Training of Quality Human Resources¡¿Quality human resources in enterprises or organizations to which these provisions apply shall, upon the confirmation of the TAC, enjoy corresponding incentives provided in the Provisions of  Tianjin Economic-Technological Development Area on Absorbing, Training and Rewarding Quality Human Resources.

Chapter V Administrative Procedures

Article 16 ¡¾Application Procedures¡¿To apply for the incentives provided in these provisions, a production-oriented enterprise shall:
1. Fill in an application form, which can be obtained from relevant competent authorities or downloaded at www.investteda.org;
2. Prepare all the documents required in the application form;
3. Submit the application form and other required documents to competent authorities;
4.The submitted materials shall be reported to the TAC after being examined by competent authorities and financial departments. Upon TAC¡¯s approval,  incentives shall be granted.

Article 17 ¡¾Review¡¿Competent authorities of the TAC shall review the incentive recipients in the first quarter of every year. For those fail to pass the review, incentives shall be suspended. Those fail to pass the review for two successive years shall be deprived of the incentives.

Chapter VI Supplementary Provisions

Article 18¡¾Power of Interpretation¡¿The TAC reserves the power to interpret these provisions.

Article 19 ¡¾Time of Enforcement¡¿These provisions shall go into effect on the date of promulgation. The Interim Provisions of Tianjin Economic-Technological Development Area on Encouraging the Investment and Development of Manufacturing shall be hereby nullified.

Translated by:
ZHANG Shanshan
Department of Translation and Interpretation of the Administrative Commission of TEDA

Revised by:
LIU Xiaojing
Department of Translation and Interpretation of the Administrative Commission of TEDA