Notice of the General Office of Shanghai Municipal People’s Government on Transmitting the Trial Procedures of Shanghai Municipality on Use and Management of Special Funds for Promoting Service Outsourcing Industry Development Formulated by the Municipal Commerce Commission, the Municipal Development and Reform Commission, and the Municipal Finance Bureau

(November 3, 2009)

                                                   SMPG GO G [2009] No. 49

Attention: all District and County People’s Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government:

The Trial Procedures of Shanghai Municipality on Use and Management of Special Funds for Promoting Service Outsourcing Industry Development formulated by the municipal commerce commission, the municipal development and reform commission, and the municipal finance bureau have been approved by the Municipal People’s Government. We hereby transmit them to you and request you to implement them conscientiously.

Trial Procedures of Shanghai Municipality on Use and Management of Special

Funds for Promoting Service Outsourcing Industry Development

Article 1 (Purposes and Basis)

With a view to normalizing the use and management of special funds for promoting service outsourcing industry development in this Municipality and improving the efficiency of fund use, these Procedures are formulated in accordance with the spirit in the Notice of Shanghai Municipal People’s Government on Printing and Distributing the Procedures of Shanghai Municipality on Use and Management of Guide Funds for Service Industry Development (SMPG G [2009] No. 24), the Notice of the General Office of Shanghai Municipal People’s Government on the Implementation Opinions on Promoting Service Outsourcing Industry Development in This Municipality (SMPG GO [2009] No. 16), as well as in the Notice on Doing Well the Fund Management for Supporting Development of Undertaking International Outsourcing Business in 2009 (FE (2009) No. 44) by the Ministry of Finance and the Ministry of Commerce. 

Article 2 (Sources of Funds)

The special funds for promoting service outsourcing industry development in this Municipality (hereinafter referred to as “special funds for service outsourcing”) shall be arranged in the municipal guide funds for service industry development, specially used as subsidy funds for the service outsourcing industry development citywide, and all districts/counties shall be encouraged to, in the light of the actual circumstances, arrange auxiliary funds to support service outsourcing industry development.       
　　Article 3 (Scope of Use)

Special funds for service outsourcing are mainly used in the key fields and links in the service outsourcing development of this Municipality, to promote the healthy and rapid development of the service outsourcing industry of this Municipality and give full support to offshore, high-end and headquarters-based service outsourcing development. They are specifically used in the following aspects:

1. Supporting service outsourcing talent training.

(1) Encouraging service outsourcing enterprises to carry out talent training.

For an enterprise in this Municipality that has received the State’s special fund support for service outsourcing talent training, based on the supported funds given by the State, and in accordance with the supported population of talent training approved by the State, for each employer with a college (including junior college) degree or above newly employed thereby to engage in service outsourcing work and with whom a Labor Contract for over 1 year is signed, a training support quota of not more than 500 yuan per new employee shall be given to this enterprise. In addition to that, a training support quota of not more than 500 yuan shall be given to an enterprise listed in the catalogue of the key service outsourcing enterprises in this Municipality. 

For an enterprise in this Municipality that has not received the State’s special fund support for service outsourcing talent training but complies with the provision under Item 1 of Article 4 of these Procedures, for each employer with a college (including junior college) degree or above newly employed thereby to engage in service outsourcing work and with whom a Labor Contract for over one year is signed, a training support quota of not more than 3,500 yuan per new employee shall be given to this enterprise.

Where the employed person terminates the contract ahead of the contract term and, within one year of the term provided in the original contract, signs a new Labor Contract with another service outsourcing enterprise or the original enterprise, the said enterprise shall not be given anew the quota of training support.  

 (2) Encouraging training organizations to engage in service outsourcing talent training.

 For a service outsourcing training enterprise in this Municipality that has received the State’s special fund support for service outsourcing talent training, based on the supported funds given by the State, and in accordance with the supported population of talent training approved by the State, for each talent with a college (including junior college) degree or above trained thereby to engage in service outsourcing work, who has passed the examination of service outsourcing professional knowledge and skill training and has signed a Labor Contract for over one year with a service outsourcing enterprise, a training support quota of not more than 100 yuan per trainee shall be given to this training organization.

For a service outsourcing training organization that has not received the State’s special fund support for service outsourcing talent training but complies with the provision under Item 2 of Article 4 of these Procedures, for each talent with a college (including junior college) degree or above trained thereby to engage in service outsourcing work, who has passed the examination of service outsourcing professional knowledge and skill training and has signed a Labor Contract for over one year with a service outsourcing enterprise, a training support quota of not more than  400 yuan per trainee shall be given to this training organization.
    2. Guiding service outsourcing enterprises to obtain international qualification certificates.

Give support to the Capability Maturity Model Integration (CMMI), Capability Maturity Model (CMM), People Capability Maturity Model (PCMM), Information Security Management (ISO27001/BS7799), IT Service Management（ISO20000), Service Provider Environment Security (SAS70), Quality Management Standard (ISO9001), Laboratory Management Standard (ISO17025/JISQ17025) certificates and such other relevant certificates obtained by service outsourcing enterprises in this Municipality that have not received the State’s special fund support for service outsourcing, and given support to the series maintenance and upgrading of these certificates. Each enterprise may apply for at most 3 certification items, each item shall be supported by not more than 30% of the fee actually arising in the certification item and the support ceiling therefor shall not be more than 300,000 yuan. 

3. Encouraging the development of offshore service outsourcing market.

When a service outsourcing enterprise in this Municipality attends an international service outsourcing exhibition or service outsourcing expo (which shall be authorized by the municipal competent service outsourcing administrative department), a subsidy of not more than 30% of the actual fee for exhibition attendance by the enterprise shall be given thereto. Each enterprise may apply for at most one item per year. The ceiling of subsidy for each item shall not be more than 100,000 yuan. 
    4. Encouraging the establishment of service outsourcing training and probation bases.

A service outsourcing enterprise which accepts more than 20 service outsourcing trainees and has signed trainees agreements for over two years with the relevant universities or colleges shall be given a subsidy of 1,500 yuan for each on-campus student (who has a junior college degree or above and whose period of probation lasts for over 3 months) accepted thereby. 
    5. Encouraging the development of headquarters-based service outsourcing enterprises in Shanghai.

A headquarters-based service outsourcing enterprise with a total asset of not less than one billion yuan, a registered capital of not less than 50 million yuan, and not less than 3 branch organizations inside and outside China shall be given not more than one million yuan as a lump sum support for its opening expenses.  

6. Pushing ahead with the building of public service platforms for service outsourcing.

Give support to the building of pubic service platforms for service outsourcing (including technology, information, training, research, intellectual property rights protection, statistics and such other public service platforms) in this Municipality according to the relevant provisions in the “Procedures of Shanghai Municipality on Use and Management of Guide Funds for Service Industry Development”.

7. No application shall be filed anew for the items that have been supported by other financial funds.

8. The municipal-level special funds for service outsourcing shall give support to the above-mentioned Item 1 to Item 4; the municipal-level special funds for service outsourcing and the district/county public finance shall each undertake 50% of the funds for Item 5.
　　Article 4 (Qualification for Application Subjects)

1. An enterprise applying for special funds for service outsourcing shall meet the following conditions:

(1) having registered within the administrative area of this Municipality, with the status of independent enterprise legal person and the business area in Shanghai;

(2) engaging in information technology service outsourcing, business procedure service outsourcing, knowledge procedure service outsourcing and such other relevant service outsourcing work;

(3) having logged in the “information management system for service outsourcing and software export (www.fwwb.gov.cn)”, registered enterprise information and reported daily statistics data therein;

(4) the population of employees with a junior college degree or above accounts for more than 70% of the population of the whole staff; and

(5) the annual income from service outsourcing business by a service outsourcing enterprise undertaking the business concerning the international finance center and shipping center construction of this Municipality shall not be less than RMB 8 million yuan; the annual income from offshore service outsourcing by other service outsourcing enterprises shall account for more than 70% of their total business income, and the annual income from offshore service outsourcing business shall not be less than USD 1.5 million.

2. A training organization applying for special funds for service outsourcing shall meet the following conditions:

(1) having the vocational qualification for service outsourcing talent training;

(2) having the area, facilities, professional teaching materials and faculty that meet conditions;

(3) having the experience in supplying planned training for enterprises undertaking service outsourcing;

(4) having a sound financial system and qualified financial management personnel; and

(5) the training program applied for thereby in principle is a non-profit training program.

Article 5 (Application, and Examination and Approval Procedures)

A unit applying for special funds for service outsourcing shall, within the prescribed time limit, file an application to the local district/county competent commerce administrative department. All district/county competent commerce administrative departments shall earnestly examine the application materials and submit them to the municipal commerce commission within the prescribed time limit.

The municipal commerce commission shall, jointly with the municipal development and reform commission, and the municipal finance bureau, organize experts in the relevant fields to form reviewing groups, which shall review the application materials and put forward their reviewing opinions.
　  Article 6 (Fund Appropriation)

The municipal finance bureau shall, according to the reviewing opinions and the relevant provisions on the State Treasury’s centralized payment, appropriate special funds for service outsourcing to the relevant units.

Article 7 (Materials to Be Filed for Application)

1. The following basic materials need to be submitted for applying for special funds support for service outsourcing:

(1) a catalogue of application materials for Shanghai special funds for service outsourcing;

(2) the original of the enterprise business license and a copy of the organization code certificate;

(3) the legal person’s letter of commitment by the enterprise on no behavior of law violation and no false behavior in the application process in import and export business management, financial management, taxation management, foreign exchange management or customs management in the recent two years;

(4) an itemization form of relevant fees and expenses;

(5) the deposit bank account number of the application unit; and

(6) for the enterprises and training organizations in this Municipality that have received the State’s special fund support for service outsourcing, no materials need to be provided anew.
　　2. The special materials needing to be submitted for applying for special fund supply for service outsourcing are respectively:

(1) An enterprise applying for support of service outsourcing talent employment needs to submit the following materials:

A. an application form for fund support of Shanghai service outsourcing talent training;

B. an itemization form of contract (execution) funds for service outsourcing in the last year;

C. a name list of the whole staff at the end of the last year (including serial numbers, names, degrees and posts);

D. copies of the financial audit report and of the profit and loss account in the last year;

E. an itemization form of income from offshore outsourcing in the last year;

F. copies of the foreign exchange earning voucher by the bank, or of a cancellation form after verification of foreign exchange, or of main contract registration certificate in the last year;

G. copies of the identity certificates and of degree certificates of the college (including junior college) students newly employed in the last year; and

H. copies of the Labor Contract for over 1 year signed between the employed personnel and the service outsourcing enterprise.
    (2) A training organization applying for support of service outsourcing talent training needs to submit the following materials:

A. an application form for fund support of Shanghai service outsourcing talent training;

B. a copy of vocational qualification certificate for service outsourcing talent training;

C. copies of the identity certificates and degree certificates of the employed personnel; and

D. copies of the Labor Contract for over 1 year signed between the employed personnel and the service outsourcing enterprise.
    (3) An enterprise applying for support of international qualification certification for service outsourcing needs to submit the following materials:

A. an application form for fund support of Shanghai service outsourcing trade qualification certification;

B. a copy of trade qualification certificate of service outsourcing enterprise;

C. a copy of payment voucher for trade qualification certificate of service outsourcing enterprise; and

D. copies of the contract and agreement signed between the service outsourcing enterprise and a trade certification evaluation and consultancy company.  

(4) A unit applying for support of developing offshore service outsourcing market needs to submit the following materials:

A. an application form for fund support of Shanghai developing offshore service outsourcing market; and

B. copies of vouchers of admission ticket, exhibition booth fee, exhibition installation fee, registration fee and such other fees for international service outsourcing exhibitions.   

(5) A unit applying for support of service outsourcing talent training and probation bases needs to submit the following materials:

A. an application form for fund support of Shanghai service outsourcing talent probations;

B. copies of cooperation agreements for over two years on accepting trainees signed with universities or colleges in this Municipality;

C. copies of trainees’ ID cards, student cards, or of tripartite employment agreements or school certificates and probation appraisals (including probation period, probation contents, etc.); and

D. the confirmation certificate of Shanghai service outsourcing talent training and probation base issued by the municipal commerce commission.   

(6) A unit applying for public service platform set-up support of service outsourcing needs to submit materials according to the requirements of the “Notice on Work Relevant to the Application for Guide Funds of This Municipality for Service Industry Development” (SDRC S [2009] No. 004).

(7) The following materials need to be submitted for applying for support of headquarters-based service outsourcing enterprises:

A. an application form for fund support of Shanghai headquarters-based service outsourcing enterprises; and

B. a copy of confirmation certificate of the headquarters-based service outsourcing enterprise.

(8) All district/county competent commerce administrative departments need to submit the following materials:

A. a catalogue of application materials for Shanghai service outsourcing examined and approved by districts/counties;

B. an itemization form for fund support application for Shanghai district/county service outsourcing enterprises’ talent employment (training), probation and international certification;

C. an itemization form for fund support of Shanghai district/county service outsourcing in developing offshore service outsourcing markets;

D. an itemization form for fund support of Shanghai district/county headquarters-based service outsourcing enterprises;

E. an itemization form of the deposit bank account number of the units applying for Shanghai district/county special fund support; and

F. enterprises’ application materials approved as qualified by districts/counties.

Article 8 (Supervision on Use)

All applicant units shall be responsible for the authenticity and legality of their application materials.

The municipal commerce commission shall, jointly with the municipal development and reform commission and the municipal finance bureau, according to the relevant provisions, conduct supervision and examination on the use and project implementation of special funds for service outsourcing. The special funds for service outsourcing must be used exclusively for their specified purposes, and the units using the funds shall strictly observe the State’s relevant laws, rules and regulations, and financial and accounting system, and shall be strictly prohibited from swindling, withholding or diverting such funds for other uses.

In case a unit violates these Procedures, the municipal commerce commission, the municipal development and reform commission, and the municipal finance bureau shall recall the funds in full, cancel its qualification for application in subsequent years, and handle it according to the Regulations on Penalties and Sanctions Against Illegal Fiscal Acts (SC D No.427); in a serious case or in violation of the State’s laws, the relevant personnel or unit shall be prosecuted for liability according to law.   

Article 9 (Supplementary Provisions)

The municipal commerce commission shall, jointly with the municipal development and reform commission, and the municipal finance bureau, be responsible for interpreting these Procedures.

These Procedures shall be put into trial implementation as of the date of printing and distributing.

                          Shanghai Municipal Commerce Commission

                          Shanghai Municipal Development and Reform Commission

                          Shanghai Municipal Finance Bureau

                          October 16, 2009