2015/12/24

Rules for Administration of Special Growth Funds for Xiamen Convention & Exhibition Industry

Article 1              To further facilitate the development of the convention and exhibition industry in Xiamen, regulate and enhance the administration of special funds for convention & exhibition industry development, and improve the fund use efficiency, these rules are hereby made in line with the Notice of General Office of Xiamen Municipal People’s Government on Printing and Distributing Several Opinions on Promoting the Accelerated Development of Convention and Exhibition Industry (Xia Fu Ban [2014] No.89).

Article 2              For the purpose of these rules, “special growth funds for convention & exhibition industry” (hereinafter referred to as “Special Convention & Exhibition Funds”) are funds budgeted by Xiamen Municipal Bureau of Finance every year and specially used to support the development of the convention and exhibition industry of Xiamen.

Article 3              Special Convention & Exhibition Funds are primarily used to reward convention and exhibition projects (excluding various trade fairs, presentations and achievement exhibitions) and cover fees and expenses related to important events, promotions, project initiations, and fundamental work of the convention and exhibition industry, as well as other expenditures approved by the municipal government.

Article 4              Special Convention & Exhibition Funds will be administrated by the principles of “being open and transparent, highlighting key points, using special funds for exclusive purpose, implementing scientific administration, emphasizing practical effects, and enhancing supervision”.

Article 5              Xiamen Municipal Bureau of Commerce is responsible to prepare annual budgets and final statements for the use of Special Convention & Exhibition Funds, accept and preliminarily review applications for Special Convention & Exhibition Funds, make arrangement plans for important convention & exhibition events, promotion, and fundamental work expenditures, organize to review applied projects, and, together with Xiamen Municipal Bureau of Finance and Xiamen Municipal Convention & Exhibition Office, supervise and review the use of Special Convention & Exhibition Funds.

Article 6              Xiamen Municipal Bureau of Finance is responsible to administrate the budgets and final statements of Special Convention & Exhibition Funds, participate to examine applied convention & exhibition projects, re-examine the convention & exhibition projects passed the first examination by Xiamen Municipal Bureau of Commerce, complete procedures of funds allocation, and, together with Xiamen Municipal Bureau of Commerce and Xiamen Municipal Convention & Exhibition Office, supervise and review the use of Special Convention & Exhibition Funds.

Article 7              Xiamen Municipal Convention & Exhibition Office shall participate in the examination of applied convention & exhibition projects and in the review of supporting funds, and, together with Xiamen Municipal Bureau of Finance and Xiamen Municipal Bureau of Commerce, supervise and review the use of Special Convention & Exhibition Funds.

Article 8              An applicant shall be an enterprise, association or public institution in China with independent legal personality. To be specific, reward applications for self-held exhibitions shall be made by project organizers, those for introduced exhibitions and conventions be made by project sponsors, organizers and soliciting or introducing entities, and those for introduction of convention & exhibition institutions be made by Xiamen branch of such large convention & exhibition institutions.

Article 9              Rewards for convention and exhibition projects shall be processed as follows:

(i)                Project Application

The applicant shall submit application materials to Xiamen Municipal Bureau of Commerce in a single time at least 5 working days prior to the first day of the underlying project. Xiamen Municipal Bureau of Commerce will issue Acknowledge of Acceptance to eligible applications, and transfer the application materials to Xiamen Convention and Exhibition Association (“XMCEA”) entrusted by it for work handover.

For each project, application shall be made by only one entity. If more than one eligible entity submits application for the same project, they must negotiate to select one of them as the applicant and provide proof for such election. If a project contains both convention and exhibition, rewards shall be applied for either convention or exhibition.

For a project application, application materials required to be submitted include:

1.      Application report;

2.      Special convention & exhibition funds application form;

3.      The applicant’s business license and organizational code certificate;

4.      Original and photocopy of agreement between sponsors and organizers, or original and photocopy of solicitation materials;

5.      Project materials:

(1)   Exhibition project: original and photocopy of the exhibition space rental contract, actual exhibition booth arrangement plan, and list of exhibitors (including exhibitor’s name, booth No., and number of booths), In addition, projects applying for self-held exhibition rewards for the first time should also submit letter of acknowledgement issued by XMCEA; projects applying for incremental rewards for self-held exhibition should also submit materials to certify the largest exhibition size in record; projects applying for Taiwan-related rewards should also submit a list of Taiwan exhibitors (including exhibitor’s name, booth No., and number of booths);

(2)   Convention project: original and photocopy of convention space lease contract and hotel accommodation contract;

6.      Other relevant materials.

Materials listed above shall be stamped with the common seal of the applicant and original documents will be reviewed and then returned. Failure to submit an application with specified period shall be considered as a waiver.

(ii)              Examination and Evaluation

The applicant shall, at least 3 working days prior to the first day of the project, submit an application to XMCEA entrusted by Xiamen Municipal Bureau of Commerce by presenting the Acknowledgement of Acceptance issued by Xiamen Municipal Bureau of Commerce.

XMCEA is entrusted by Xiamen Municipal Bureau of Commerce to conduct onsite examination and evaluation for every applying projects. Xiamen Municipal Bureau of Commerce, Xiamen Municipal Bureau of Finance and Xiamen Municipal Convention & Exhibition Office shall form an examination panel to examine projects as it is necessary. For examining exhibitions, examination officers and representatives of the applicant shall check the number of exhibition booths onsite and sign on the exhibition booth arrangement plan.

(iii)            Project Conclusion

Within 15 working days after the project ends, the applicant shall submit the following project conclusion materials to XMCEA:

1.      For rewards to exhibition projects, exhibition summary report, exhibition manuals, original and photocopies of invoices for exhibition space lease, and other relevant materials; for Taiwan-related rewards, original and photocopies of Taiwan booth contract and invoices, list of Taiwan exhibitors, and other relevant materials;

2.      For commercial or academic convention projects, convention summary report, original and photocopies of invoices for convention space lease, list of participants, accommodation proof issued by hotels, and two or more photos of the convention space;

3.      For international convention projects, convention summary report, original and photocopies of invoices for convention space lease, list of foreign participants (including nationality, employer, telephone, and email) and proof materials (photocopy of passport or application form, or photocopy of participant ID, or directory of participants), and two or more photos of the convention space;

4.      For super convention projects, convention summary report, original and photocopies of invoices for convention space lease, list of participants from outside of Xiamen, and two or more photos of the convention space.

Materials listed above shall be stamped with the common seal of the applicant and original documents will be reviewed and then returned. Failure to submit all of the materials aforesaid with specified period shall be considered as a waiver and no rewards will be granted.

(iv)             Review and Payment

Depending on the results of review and evaluation and the project summary materials, XMCEA shall make recommendations for reward. If these recommendations are jointly approved by Xiamen Municipal Bureau of Commerce, Xiamen Municipal Bureau of Finance, and Xiamen Municipal Convention & Exhibition Office, payments will be made by Xiamen Municipal Bureau of Finance according to treasury administration requirements.

Article 10            Rewards for the introduction of large convention and exhibition institutions shall be handled as follows:

A large convention and exhibition institution means an advisory firm of the convention industry of Xiamen or a large domestic or foreign convention and exhibition enterprise with a registered capital of RMB 5 million yuan or more. Rewards shall be applied for by the independent corporate branch set up in Xiamen by such large convention and exhibition institution that engages in convention and exhibition business and has a registered capital of RMB 1.5 million yuan or more.

(i)                Project Application

The applicant may submit an application to Xiamen Municipal Bureau of Commerce prior to every June 30^th in three consecutive years since the year after its revenue generated from convention and exhibition business(specifically, various exhibition convention affair, public relation, communication, and consultation businesses engaging in the planning and organization of conventions, exhibitions and events, exhibition design and setup, event organization and services) reaches or exceeds RMB 2 million yuan in any financial year.

Application materials that the applicant should submit include:

1.      Application report;

2.      Application Form of Special Convention and Exhibition Funds ;

3.      Business license and relevant proofs describing the applicant’s convention & exhibition business and registered capital;

4.      Proof materials demonstrating that the applicant is a branch of the large convention & exhibition institution, including business license and investment certification of such large convention & exhibition institution;

5.      Audit report that can reflect its revenue generated from the convention & exhibition business in previous year;

6.      Original and photocopy of property purchase contract, invoice, payment receipt and ownership certificate, if the applicant buys office for its own use; or original and photocopy of property lease contract and invoice, if the applicant leases office.

7.      Two or more photos of the office.

(ii)              Examination

Xiamen Municipal Bureau of Commerce, Xiamen Municipal Bureau of Finance and Xiamen Municipal Convention & Exhibition Office shall form an examination panel to examine the applications. For applications meeting requirements, payments will be made by Xiamen Municipal Bureau of Finance according to treasury administration requirements.

Article 11            Subsidies for international convention & exhibition organization certification will be handled as follows:

International convention & exhibition organization certification means the accession or certification of any convention & exhibition institution or project located in Xiamen into or by international or regional convention & exhibition organizations, such as Union of International Fairs (UFI), International Congress and Convention Association (ICCA), and Asian Federation of Exhibition & Convention Associations.

The applicant shall submit an application to Xiamen Municipal Bureau of Commerce within one year after such accession or certification. Application materials that the applicant should submit include:

1.      Application report;

2.      Original and photocopy of payment receipts and invoices for accession or certification expenses;

3.      Original and photocopy of accession or certification materials;

Where any foreign currency is used, it shall be converted into Renminbi at the intermediate rate announced by the People’s Bank of China on the date of payment.

Xiamen Municipal Bureau of Commerce shall examine the applications. For applications meeting requirements, payments will be made by Xiamen Municipal Bureau of Finance according to treasury administration requirements.

Article 12            Other projects shall be handled as follows:

(i)                The applicant may apply to Xiamen Municipal Bureau of Commerce for expenses of important convention & exhibition events and expenses of convention & exhibition project applications. In consideration of the project budgets and annual budgets of special funds, Xiamen Municipal Bureau of Commerce, Xiamen Municipal Bureau of Finance and Xiamen Municipal Convention & Exhibition Office will make recommendations and submit the same to Xiamen Municipal People’s Government for approval. If the recommendations are approved, the applicant may organize and implement corresponding events or projects and expenses arising will be reviewed and paid by Xiamen Municipal Bureau of Finance;

(ii)              Xiamen Municipal Bureau of Commerce and Xiamen Municipal Convention &Exhibition Office shall make the promotion budget of convention and exhibition at the beginning of a year, which may be implemented if it is negotiated with and determined by Xiamen Municipal Bureau of Finance. Expenses arising will be reviewed and then paid by Xiamen Municipal Bureau of Finance;

(iii)            Xiamen Municipal Bureau of Commerce shall make fundamental work budgets of convention and exhibition at the beginning of a year, which may be implemented if it is negotiated with and determined by Xiamen Municipal Bureau of Finance. Expenses arising will be reviewed and then paid by Xiamen Municipal Bureau of Finance.

Article 13            Applicants shall provide relevant true and accurate materials. Supporting funds shall be accounted and administrated according to relevant financial and accounting rules and be subject to the supervision and examination of financial and auditing authorities.

Article 14            Special convention and exhibition funds are incorporated into the sector budget made by Xiamen Municipal Bureau of Commerce. Xiamen Municipal Bureau of Commerce, Xiamen Municipal Bureau of Finance, and Xiamen Municipal Convention &Exhibition Office will regularly or irregularly supervise and check the use of special funds. If an applicant has any of the following circumstances, Xiamen Municipal Bureau of Commerce, together with Xiamen Municipal Bureau of Finance and Xiamen Municipal Convention &Exhibition Office, will take measures, such as suspending the granting of rewards and recovering the granted special convention and exhibition funds, at their discretion, and handle the applicant according to relevant regulations; where the applicant is suspected of having committed any crime, it will be handed over to the appropriate judicial organ:

(i)                If any safety accident or mass incident arises and causes material negative influence or any grave consequence (including strike, disturbance or other major accidents) due to any organizer, rewards will be ceased;

(ii)              If any applicant gets special convention and exhibition funds deceptively by misrepresenting or applying in the name of others, it will be added to the blacklist of convention and exhibition rewards and may not receive any reward from special convention and exhibition funds in the next three years, and any special convention and exhibition funds already granted will also be recovered.

(iii)            Other circumstances violating financial laws and regulations.

Article 15            Projects obtaining any other municipal-level treasury funds in Xiamen may not repeatedly apply for special convention and exhibition funds.

Article 16            These rules will be interpreted by Xiamen Municipal Bureau of Commerce together with Xiamen Municipal Bureau of Finance and Xiamen Municipal Convention &Exhibition Office.

Article 17            These rules will be effective since the date of release and expire on December 31, 2016. The Notice of Xiamen Municipal Bureau of Finance, Xiamen Municipal Bureau of Commerce, and Xiamen Municipal Convention & Exhibition Office on Printing and Distributing Rules for Administration of Special Growth Funds for Xiamen Convention and Exhibition Industry (Xia Cai Wai [2011] No.20) will be abolished at the same time.