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Analysis of China's Government Subsidy Policies During the COVID-19(Part.1)2020-06-10 10:36:46

At the beginning of 2020, the state and all enterprises have experienced a severe test. The COVID-19 is threatening and under the circumstances of the enterprise's failure, the central government and local governments have introduced many subsidized policies to help enterprises tide over the difficulties.

 

The following is the policies review.

 

n  COVID-19 policies issued by Shanghai Business Council to support the stable development of foreign trade enterprises.

Supporting type

Stipulation

Concrete content

Material support

1. Optimize the purchasing machine for import of key prevention and control materials

1. Efforts should be made to ensure the rapid customs clearance of imported drugs, disinfection articles, protective articles, treatment equipment and other prevention and control materials, and improve the relevant green customs clearance mechanism. Establish a list of import units and import materials list of epidemic prevention and control materials, and exempt the import of materials directly used for epidemic prevention and control organized by the health authorities; import enterprises can apply for refund of tax exemption before September 30, 2020.

Responsible departments and units: Municipal Commission of Commerce, Municipal health and Health Commission, Municipal Drug Administration, Municipal Grain and material reserve bureau, Municipal Finance Bureau, Municipal emergency Bureau and Shanghai Customs

Policy support

2. Support enterprises to properly arrange the resumption of operation

2. Strengthen the labor support for enterprises to resume production and actively help enterprises to coordinate and solve the demand for epidemic prevention materials. Support port, truck transportation and other foreign trade service industries to give priority to resuming work, and ensure the security of key enterprises' supply chain. In case of production and operation difficulties caused by the epidemic situation, the enterprise can stabilize its work position by means of adjusting salary, taking turns of work, shortening working hours and so on. Support enterprises to organize employees to return to Shanghai by means of inter provincial car charter.

Responsible departments: Municipal Economic Information Commission, Municipal Commerce Commission, Municipal health and Health Commission, Municipal human resources and Social Security Bureau, and Municipal Transportation Commission


3. Optimize customs clearance Supervision Service

3. Set up a "green channel" for customs clearance of raw materials, spare parts, machinery and equipment, etc., which are urgently needed to be imported for the resumption of work and production. For the delayed delivery, return and replacement of goods caused by the epidemic situation, timely handle the formalities and provide relevant convenience; the customs declaration form revision and cancellation caused by the epidemic situation will not record the customs declaration error. When an enterprise carries out the business of distributing and centralized reporting, centralized domestic sales, deep processing and carrying forward, bonded display transaction and other businesses, the declaration time limit can be extended by one month on the original basis. During the period of epidemic prevention and control in this Municipality, if the processing trade enterprises (including enterprises in the areas under special supervision of the customs) need to delay the resumption of work due to the need of epidemic prevention, the processing of processing trade manual (account) books exceeding the validity period (verification cycle) can be postponed, and relevant materials can be supplemented and submitted afterwards. If the declaration business under the manual (account) book of processing trade, such as deep processing carry forward and domestic sales tax collection, exceeds the prescribed time limit, the relevant procedures may be postponed.

Responsible unit: Shanghai Customs


4. Further play the role of credit insurance

4. Improve the cooperation mechanism between the government, SINOSURE and business associations, and further increase the underwriting strength of SINOSURE Shanghai Branch, so as to ensure the full coverage of orders with demand and potential enterprises. We will carry out the import prepayment insurance business for epidemic prevention and control materials, relax the underwriting conditions, exempt the credit service charges for overseas suppliers, and provide the directory and bill of lading reports of overseas suppliers free of charge. Priority should be given to the settlement of insurance claims of enterprises affected by the epidemic situation. On the premise of no doubt about the authenticity of trade, the trade background and the amount of creditor's rights should be mainly verified, and the compensation conditions should be appropriately relaxed, and the loss assessment and compensation procedures should be started first. We will further strengthen policies based resource allocation support for key enterprises, and promote export credit insurance services before shipment, so as to protect enterprises from the risk of canceling contracts due to the buyer's epidemic situation.

Responsible unit: SINOSURE Shanghai Branch


5. Support enterprises to adjust overseas exhibition plan

5. During the period of COVID-19 prevention and control in this city, the enterprises that can't go abroad to participate in the exhibition and have incurred booth expenses can continue to enjoy the relevant supporting policies of the city for overseas exhibition. Help enterprises unable to go abroad to participate in the exhibition due to the COVID-19 situation, coordinate domestic and foreign exhibition organizations, and properly handle the paid fees and other related issues.

Responsible departments and units: Municipal Commission of Commerce, Municipal Bureau of Finance and CCPIT


6. Support enterprises to develop international market

6. Support enterprises to actively use cross-border e-commerce platform, increase international market development and expand global procurement scale. Give full play to the role of public service platform of international marketing system of enterprises and extend the trade supply chain. Enterprises are encouraged to give full play to the role of online Canton Fair, guide enterprises to adjust trade promotion activities in time, and maintain and expand customers and sales channels in the international market.

Responsible departments and units:  Municipal Commission of Commerce, Municipal Bureau of Finance and CCPIT