Detailed Rules for Implementing Measures of Guangzhou Huangpu District and Guangzhou Development District for the Promotion of High-Quality Development of the Beauty and Cosmetics Industry

HP0320220005

Document  of 

Guangzhou Huangpu District Administration for Market Regulation

Policy Research Office of Guangzhou Development district

Guangzhou Huangpu District Bureau of Science and Technology

Guangzhou Huangpu District Industry and Information Technology Bureau

Guangzhou Huangpu District Commerce Bureau

Intellectual Property Administration of Guangzhou Development District

Guangzhou Huangpu District Branch of China Council for the Promotion of International Trade

Sui Pu Shi Jian Gui Zi [2022] No 1

Notice from Guangzhou Huangpu District Administration for Market Regulation, Policy Research Office of Guangzhou Development district, Guangzhou Huangpu District Bureau of Science and Technology, Guangzhou Huangpu District Industry and Information Technology Bureau, Guangzhou Huangpu District Commerce Bureau, Intellectual Property Administration of Guangzhou Development District, and Guangzhou Huangpu district Branch of China Council for the Promotion of International Trade Regarding the Issuance of Detailed rules for Implementing Measures of Guangzhou Huangpu District and Guangzhou Development District for the Promotion of High-Quality Development of the Beauty and Cosmetics Industry

To relevant district-level departments:

The Detailed rules for Implementing Measures of Guangzhou Huangpu District and Guangzhou Development District for the Promotion of High-Quality Development of the Beauty and Cosmetics Industry have been issued for implementation upon approval by the Guangzhou Huangpu District people's government and Guangzhou Development District Administrative Committee. Problems encountered during the course of implementation should be reported to the relevant authorities.

Guangzhou Huangpu District Administration for Market Regulation

Policy Research Office of Guangzhou Development District

Guangzhou Huangpu district Bureau of Science and Technology

Guangzhou Huangpu district Industry and Information Technology Bureau

Guangzhou Huangpu district Commerce Bureau

Intellectual Property Administration of Guangzhou Development District

Guangzhou Huangpu District Branch of China Council for the Promotion of International Trade  

March 19, 2022

Detailed rules for Implementing Measures of Guangzhou Huangpu District and Guangzhou Development District for the Promotion of High-Quality Development of the Beauty and Cosmetics Industry

Chapter I               General provisions

Article 1 [Basis for Formulation] To clearly define the specific content of articles and operation standards, these detailed rules for implementing measures (hereinafter referred to as "detailed rules") are hereby formulated in consideration of the realities in Huangpu district and in accordance with the measures of Guangzhou Huangpu district and Guangzhou Development district for the Promotion of High-Quality Development of the Beauty and Cosmetics Industry (Sui Pu Fu Gui [2021] No 16).

Article 2 [Definition of the Industry] The beauty and cosmetics industry mentioned in the measures, dominated by the cosmetics industry, covers such fields as raw materials, formulas, research and development, production, intelligent manufacturing, and exhibition and trade of cosmetics and includes entities engaged in the research and development, production, and sales of cosmetic products and raw materials (enterprises engaged in only the sales of raw materials for cosmetic products are not included in the industry), cosmetics packaging design, and service industries serving the cosmetics industry, such as registration and filing consulting, safety and effectiveness evaluation, inspection and testing, branding, quality enhancement, industrial parks, and construction and operation of public service platforms for cosmetic products and raw materials.

The cosmetic products mentioned in the measures, according to Article 3 of the Cosmetics Supervision and Administration Regulation, refer to daily chemical products intended to be applied on human skin, hair, nails, lips, etc. by spreading, spraying or other similar ways for the purpose of cleansing, protecting, beautifying or grooming. Toothpaste is included in the scope of beauty and cosmetic products in these detailed rules, with the provisions in these detailed rules regarding support programs for cosmetic products to be implemented accordingly.

Article 3 [Applicable Parties] These detailed rules apply to relevant enterprises engaged in cosmetics research and development, production, sales, and the like, and which have a sound financial system, possess independent legal personality, perform separate accounting, and conform to relevant regulations on credit management, with their domiciles, tax collection and administration, and statistical relations falling within the jurisdiction of Guangzhou Huangpu district, Guangzhou Development district, or industrial parks governed by them or affiliated with them (hereinafter referred to as "this district" for short) at the time of occurrence of the project and reporting of funds.

Chapter II             Cultivate world-class model enterprises

Article 4 [Annual Revenue Support] Enterprises are encouraged to grow, with one-time support funds of 20 million, 2 million, and 1 million yuan ($15 million) granted to enterprises with annual revenue earned in the beauty and cosmetics business exceeding 50 billion, 10 billion, and 5 billion yuan, respectively.

Article 5       The eligible parties in this provision are divided into two categories: the first being enterprises belonging to the wholesale industry or the retail industry as specified by the Industrial Classification for National Economic Activities (GB/T 4754-2017), subject to the statistical industry shown on the Table of Basic Conditions of the Surveyed Organization printed by the enterprises from the unified table system of the National Bureau of Statistics; the second being manufacturing enterprises in the beauty and cosmetics industry.

Article 6       Applicants for this support program must meet any of the following criteria:

(1) The applicant is a corporate holder or exclusive domestic licensee of the trademark for a domestic beauty and cosmetics brand, or an exclusive domestic licensee of a well-known foreign cosmetics brand (see Article 80 of these supplementary provisions for relevant definitions), conforming to the stipulations laid out in Article 5 of these detailed rules.

(2) Multiple cosmetics brand trademarks with the parent company of the group or holding subsidiaries conforming to the stipulations laid out in Article 3 and Article 5 of these detailed rules as the holder of trademarks, exclusive domestic licensee of the trademark of a domestic beauty and cosmetics brand, or exclusive domestic licensee of a well-known foreign cosmetics brand, provided that the parent company of the group is the subject of the application.

Article 7       Relevant instructions on this support program:

Annual revenue from the beauty and cosmetics business refers to the annual revenue of the applicant, as a corporate holder of a brand, exclusive domestic licensee of the trademark of a domestic beauty and cosmetics brand, or exclusive domestic licensee of a well-known foreign cosmetics brand, from relevant branded beauty and cosmetic products in the specified year, including the actual output value and business income of the enterprise from various links within the beauty and cosmetics industry defined in Article 2 of these detailed rules.

(1) In cases where the applicant is a wholesaler or retailer of beauty and cosmetics products as specified by the Industrial Classification for National Economic Activities (GB/T 4754-2017), its annual revenue from the beauty and cosmetics business is subject to review by the district-level commerce department based on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant.

(2) In cases where the applicant is a manufacturing enterprise in the beauty and cosmetics industry, its annual revenue from the beauty and cosmetics business is subject to review by the district-level administration for market regulation based on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant.

(3) In cases where the applicant is a parent company of the group, its annual revenue from the beauty and cosmetics business is the combined revenue of the parent company of the group or its holding subsidiaries, as a corporate holder of a brand, exclusive domestic licensee of the trademark for a domestic beauty and cosmetics brand, or exclusive domestic licensee of a well-known foreign cosmetics brand, from relevant branded beauty and cosmetic products (including only the revenue generated by the parent company of the group itself and the revenue of its subsidiaries within this district, excluding the portion of internal transactions between the parent company of the group and its subsidiaries and those between its subsidiaries), subject to review by the district-level administration for market regulation based on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant.

Article 8       The district-level commerce department shall conduct reviews for this support program (for application materials of manufacturing enterprises in the beauty and cosmetics industry and parent companies of the group, the reviews shall be conducted by the district-level administration for market regulation, with pro forma reviews conducted by the district-level commerce department), and be responsible for the payment of funds.

Chapter III            Enhance core competitiveness of products

Section 1 Support for scientific breakthroughs

Article 9 [Support for Scientific Breakthrough Projects] Support will be given to enterprises seeking high-standard scientific breakthroughs in areas such as raw materials, production techniques, functions, efficacy, and safety assessment of cosmetic products, so as to promote advancement towards the medium to the high end of the value chain. For those engaging in the development of new technologies and those seeking breakthroughs in applied science research projects, no more than ten projects shall be selected within the term of validity of these measures, with one-time support funds of up to 1 million yuan each granted amounting to 30 percent of the actual investment of the projects.

Article 10    The actual investment of a project refers to the costs incurred in the process of research and development during the period of project implementation, which generally includes the following: labor costs, equipment costs, fuel and power costs, rent, experiment costs, material costs, entrusted development costs, appraisal and acceptance check costs, and the like.

Article 11    Projects applying for this support program must meet all of the following criteria:

(1) The applicant must be a manufacturer of cosmetic products.

(2) The relevant project must be geared toward achieving scientific breakthroughs around in areas such as the raw materials (must be raw materials listed in the currently valid Catalogue of Already-used Cosmetic Raw Materials or Catalogue of Already-used Toothpaste Raw Materials released by the National Medical Products Administration and permitted to use in China), production techniques, functions, efficacy, and safety assessment of cosmetic products.

(3) The project's start date must fall within the term of validity of these measures, subject to the notice of project initiation issued by the district-level administrative authority for science.

(4) The period of implementation of the project should be one year in principle and must not exceed two years, starting from the date that the notice of project initiation is issued by the district-level administrative authority for science.

(5) The top three persons in charge of the project must be familiar with the corresponding field of research and possess intermediate professional titles or above, master's degrees with more than five years of experience in relevant professions, or doctoral degrees. The highest-ranking person in charge of the project must be a regular employee of the applying organization, with a full-time labor contract signed with the applying organization and social insurance premiums contributed by the applying organization for no less than six consecutive months.

(6) The applying organization, partner organizations, and persons in charge of the project must not have relevant poor credit records in the past five years.

Article 12    This support program extends support in the form of project initiation beforehand and support afterward, with regular applications of projects to be selected by experts organized by the district-level administrative authority for science.

For projects seeking scientific breakthroughs that have passed project initiation and project acceptance upon maturity of the period of project implementation, one-time support funds up to 1 million yuan each shall be granted amounting to 30 percent of the actual costs incurred ratified by the special audit report issued by a qualified third-party entrusted by the district-level administrative authority for science.

Article 13    The corresponding district-level fiscal funds of this support program shall be appropriated directly to the organizations undertaking the projects within the district, while the funding for partners shall be distributed by such organizations from self-raised or other funds.

Article 14    The district-level administrative authority for science shall be responsible for the review and payment of funds for this support program.

Section 2 Support for registration and filing

Article 15 [Support for New Raw Materials and New Efficacy Projects] Enterprises that have acquired registration/filing certificates for new raw materials for cosmetic products or registration certificates for cosmetic products with new efficacy shall be granted support amounting to 30 percent of the registration/filing costs, with the support for each enterprise capped at 5 million yuan per year.

Article 16    Definition of relevant terms:

(1) New raw materials for cosmetic products refer to natural or artificial raw materials never before used for cosmetic products in the territory of the People's Republic of China.

(2) Cosmetic products with new efficacy refer to cosmetic products with the claimed use, area of application, or target users not covered by the existing classifications in the Classification Rules and Catalogue for Cosmetic Products issued by the medical products administration department of the State Council that have been approved by such department for registration, subject to the special cosmetic product registration certificates issued by the medical products administration department of the State Council.

Article 17    Projects applying for this support program must meet all of the following criteria:

(1) The applicant must be an enterprise engaged in the research and development, production, and sale of new raw materials for cosmetic products or the production and merchandising of cosmetic products (excluding enterprises engaged in only the sales of new raw materials for cosmetic products), and must be the registrant or filing submitter of new raw materials for cosmetic products recorded on the registration/filing certificate for new raw materials for cosmetic products used for the application for this support program, or the registrant of cosmetic products recorded on the registration certificate for cosmetic products with new efficacy used for the same purpose.

(2) The date of approval recorded on the registration certificate for new raw materials for cosmetic products or the registration certificate for cosmetic products with new efficacy, or the date of filing recorded on the filing certificate for new raw materials for cosmetic products must fall within the term of validity of these measures.

(3) The time limit for application shall be within one year after the date of approval recorded on the registration certificate for new raw materials for cosmetic products or the registration certificate for cosmetic products with new efficacy, or one year after the date of filing recorded on the filing certificate for new raw materials for cosmetic products.

Article 18    Supported projects for individual raw materials or individual products shall be granted support according to the following rules:

(1) For cosmetic products with newly claimed efficacy that have been approved by the medical products administration department of the State Council for registration, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration, with the support for each project capped at 1 million yuan.

(2) For other cosmetic products with new efficacy not belonging to those listed in Clause (1) of this article that has been approved by the medical products administration department of the State Council for registration, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration, with the support for each project capped at 100,000 yuan.

(3) For new raw materials for cosmetic products aimed at freckle whitening, sun protection, anti-hair loss, hair dyeing, eliminating odor, or antiseptic functions that have never been used anywhere in the world, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration (filing), with support for each project capped at 500,000 yuan.

(4) For new raw materials for cosmetic products with anti-acne or anti-wrinkle functions (excluding physical anti-wrinkle functions), or those serving as surfactants, emulsifiers, or anti-dandruff agents that have never been used anywhere in the world, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration/filing, with support for each project capped at 300,000 yuan.

(5) For new raw materials for cosmetic products never before used at home or abroad that do not belong to Clause (3) or Clause (4) of this article, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration (filing), with support for each project capped at 100,000 yuan.

(6) For new raw materials for cosmetic products already approved for use abroad but being approved for use in China for the first time, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration/filing, with support for each project capped at 20,000 yuan.

(7) Where registration/filing certificates for new raw materials for cosmetic products are acquired due to adjustments to the purpose or safe dosage of raw materials for cosmetic products already in use, one-time support funds shall be granted amounting to 30 percent of the actual costs incurred during registration/filing, with support for each project capped at 20 ,000 yuan. Raw materials for cosmetic products already in use shall be subject to the currently valid Catalogue of Already-used Cosmetic Raw Materials or Catalogue of Already-used Toothpaste Raw Materials released by the medical products administration department of the State Council.

Article 19    In cases where an enterprise acquires multiple registration/filing certificates for new raw materials for cosmetic products or registration certificates for cosmetic products with new efficacy, several one-time support funds may be granted.

Article 20    Registration/filing costs included in the scope of support must be the actual costs incurred after the samples used in the application for registration/filing certificates for new raw materials for cosmetic products or registration certificates for cosmetic products with new efficacy have been formed, which mainly include the following: costs for sample inspection, testing and experimental verification; costs for the purchase and production of reagents and consumables; costs for technical consultation and technology introduction from domestic institutes of higher learning and qualified third-party professional institutions; costs for the preparation of application materials for registration/filing; and other costs recognized by the district-level administration for market regulation (excluding relevant costs incurred when the new raw materials for cosmetic products or cosmetic products with new efficacy are still in the stage of research and development). Such costs are subject to the amount ratified by the special audit report on the registration/filing costs for the relevant project issued by a qualified third-party institution entrusted by the district-level administration for market regulation.

Article 21    Projects shall not be supported under any of the following circumstances:

(1) The applicant has failed to inform the district-level administration for market regulation within one month before applying for registration/filing certificates for new raw materials for cosmetic products or registration certificates for cosmetic products with new efficacy at the medical products administration department of the State Council.

(2) The registration/filing certificates for new raw materials for cosmetic products or registration certificates for cosmetic products with new efficacy have been de-registered or canceled by the medical products administration department of the State Council at the time of the application.

(3) There are disputes over the ownership of intellectual property rights to new raw materials for cosmetic products or cosmetic products with new efficacy at the time of application.

Article 22    The applicant must take the initiative to return the support fund received if any of the following circumstances occurs within three years after receiving the support fund:

(1) The registration/filing certificates for new raw materials for cosmetic products used in the application for this support fund have been de-registered or canceled by the medical products administration department of the State Council due to safety or related concerns.

(2) The registration certificates for cosmetic products with new efficacy have been de-registered or canceled by the medical products administration department of the State Council due to safety or related concerns.

Article 23    A system of regular annual applications shall be adopted for this support program within the term of validity of these measures, with unified reviews conducted by experts organized by third-party professional institutions entrusted by the district-level administration for market regulation.

Article 24    For projects eligible for this support program, the support fund shall be paid according to the following rules:

(1) For projects conforming to relevant provisions of Clause (1) or Clause (2) of Article 18, the applicant may apply for the payment of 50 percent of the ratified one-time support funds after acquiring the registration certificates for cosmetic products with new efficacy; after the cosmetic products with new efficacy in the relevant project have achieved more than 500 ,000 yuan in output value or sales value in this district within the term of validity of these measures, the applicant may apply for the payment of the remaining 50 percent of the ratified one-time support funds.

(2) For projects conforming to the provisions of any of Clauses (3) to (5) of Article 18, where the applicant is an enterprise engaged in the research and development, production, and sales of new raw materials for cosmetic products (excluding enterprises engaged in only the sales of new raw materials for cosmetic products), the applicant may apply for the payment of 50 percent of the ratified one-time support funds after acquiring the registration/filing certificates for new raw materials for cosmetic products; after the new raw materials for cosmetic products in the project have achieved more than 500,000 yuan in output value or sales value in this district within the term of validity of these measures, the applicant may apply for the payment of the remaining 50 percent of the ratified one-time support funds.

(3) For a manufacturing enterprise of cosmetic products with projects conforming to the provisions of any of Clauses (3) to (5) of Article 18, the applicant may apply for the payment of 50 percent of the ratified one-time support funds after acquiring the registration/filing certificates for new raw materials for cosmetic products; after the cosmetic products produced using new raw materials for cosmetic products in the project have achieved more than 500 ,000 yuan in output value or sales value in this district within the term of validity of these measures, the applicant may apply for the payment of the remaining 50 percent of the ratified one-time support funds.

(4) For a merchandising enterprise of cosmetic products with projects conforming to the provisions of any of Clauses (3) to (5) of Article 18, the applicant may apply for the payment of 50 percent of the ratified one-time support funds after acquiring the registration/filing certificates for new raw materials for cosmetic products; after the enterprise has achieved more than 500,000 yuan in sales value in this district within the term of validity of these measures with cosmetic products that have used the new raw materials for cosmetic products in the relevant project, the applicant may apply for the payment of the remaining 50 percent of the ratified one-time support funds.

(5) For those conforming to Clause (6) or Clause (7) of Article 18, the applicant may apply for the payment of the ratified one-time support funds right after acquiring the registration/filing certificates for new raw materials for cosmetic products.

Article 25    The district-level administration for market regulation shall conduct the reviews for this support program and be responsible for the payment of funds.

Chapter IV  Creating quality beauty and cosmetic products with Chinese characteristics

Article 26 [Support for Projects with Quality Beauty and Cosmetic Products with Chinese Characteristics] Enterprises are encouraged to develop beauty and cosmetic products using new materials, including traditional Chinese medicine extracts and natural plant resources, as the main active ingredients to promote traditional Chinese medicine. For those developing new projects characterized by Chinese herbal medicine and plant resources or natural product resources and achieving more than 2 million yuan in sales, no more than 15 projects shall be selected within the term of validity of these measures, with one-time support funds up to 1 million yuan granted to each project.

Article 27    Definition of relevant terms:

(1) Beauty and cosmetic products using new materials, including traditional Chinese medicine extracts and natural plant resources, as main active ingredients refer to cosmetic products that use such registered/filed new materials as traditional Chinese medicine extracts and natural plant resources, and the said new materials are critical to the products.

(2) New projects characterized by Chinese herbal medicine and plant resources or natural product resources refer to individual cosmetic products using such registered/filed new materials for cosmetic products (the registrant or filing submitter should be a relevant enterprise or institution engaged in cosmetics research and development, production, sales, and the like, as stipulated in Article 3 of these detailed rules) that do not exist anywhere in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main active ingredients, which have been put on sale in China.

(3) Achieving more than 2 million yuan in sales refers to sales of the product produced by the relevant project totaling more than 2 million yuan in the supported year, with the data in the special audit report issued by a qualified third-party institution and provided by the applicant at the time of applying for this support program as the basis for reference.

Article 28    Projects considered for this support program must meet all of the following criteria:

(1) The starting date of the project must fall within the term of validity of these measures, subject to the notice of project initiation issued by the district-level administration for market regulation.

(2) The period of implementation of the project should be one year, starting from the date that the notice of project initiation is issued by the district-level administration for market regulation.

(3) In cases where the project achieves industrialization or revenue by multiple enterprises or institutions through entrusted production or sales models, the registrant or filing submitter of the cosmetic product corresponding to the project shall be the applicant in principle.

Article 29    With individual cosmetic products meeting the criteria of this support program being individual projects, support shall be granted according to the following rules:

(1) For cosmetic products using such registered/filed new materials for cosmetic products that do not exist anywhere in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main active ingredients, and with uses such as freckle whitening, sun protection, anti-hair loss, hair dyeing, or eliminating odor, the support for each project shall be capped at  1 million yuan.

(2) For cosmetic products using such registered/filed new materials for cosmetic products that do not exist anywhere in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main active ingredients, and possessing anti-acne or anti-wrinkle functions (excluding physical anti-wrinkle functions), support for each project shall be capped at 800,000 yuan.

(3) For cosmetic products using Chinese herbal medicine and plant resources and natural product resources such as surfactants, emulsifiers, anti-dandruff agents, or antiseptics that do not exist anywhere in the world, support for each project shall be capped at 800,000 yuan.

(4) For other types of cosmetic products using such registered/filed new materials for cosmetic products that do not exist anywhere in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main active ingredients, support for each project shall be capped at 500,000 yuan.

Article 30    Each individual enterprise shall only be supported once within the term of validity of these measures.

Article 31    For individual projects conforming to both Clause (1) and Clause (2) of Article 29, one-time support funds shall be granted equal to the higher of the two.

Article 32    Support shall not be granted under any of the following circumstances:

(1) Notices of criticism regarding the relevant project have been circulated by the state, provincial, or municipal medical products administration department in the applied year.

(2) A project using the same raw material already exists within the jurisdiction of the district.

Article 33    The applicant must take the initiative to return the support fund received if any of the following circumstances occurs within three years after receiving this support fund:

(1) The new raw materials for cosmetic products used in the applying project have been de-registered or canceled from filing by the medical products administration department of the State Council safety or related concerns.

(2) The cosmetic products used for the application project have been de-registered or canceled from filing by the medical products administration department of the State Council safety or related concerns.

Article 34    This support program adopts the system of project initiation beforehand and support afterward.  Projects that have passed project initiation shall be subject to the unified selection of experts organized by third-party professional institutions entrusted by the district-level administration for market regulation upon maturity of the period of project implementation.

Article 35    The district-level administration for market regulation shall conduct the reviews for this support program and be responsible for the payment of funds.

Chapter V     Building high-end carriers for industry clusters

Section 1 Support for the operation of Industrial parks

Article 36 [Support for Specialized Industrial Park Projects for the Beauty and Cosmetics Industry] Specialized beauty and cosmetics industrial parks shall be planned at a high level, constructed at high standards, and built to facilitate the accelerated agglomeration of high-end factors. For ratified specialized beauty and cosmetics industrial parks, operational support of up to 1 million yuan per year shall be granted for three years amounting to 50 percent of the actual operating costs of the parks.

Article 37    Parks applying for this support program must meet all of the following criteria:

(1) The park must have a clear predominant industry and distinct features, which shall be limited to the beauty and cosmetics industry.

(2) The park must have indisputable land ownership and clear boundaries, with a total area of no less than 100,000 square meters.

(3) The park's administrative body must have a full-time management team responsible for operating the park with no less than 10 members, which is capable of effectively organizing the construction, operations, and management of the park, establishing standardized operations and management mechanisms and financial management systems and forming professional operations and management system covering things like investment promotion, enterprise services, and real estate management.

(4) The park has introduced and cultivated enterprises in the beauty and cosmetics industry that possess the ability to lead the industry and have wide influence. It has agglomerated at least 30 industrial enterprises above the designated size throughout the industrial chain, with the industrial output value of such enterprises reaching at least 22,500 yuan/m² and their business contributions reaching at least 1,200 yuan/m² in the previous year, with the constructed area of workshops rented or occupied by them as the basis for calculation (based on the district-level department for industry and information technology according to the statistic caliber for contributions to local economic development and the data reported by relevant departments).

(5) The occupancy rate of the park has reached 75 percent (including those who have sold or signed site lease contracts), with at least 30 beauty and cosmetic enterprises having set up operations there (enterprises domiciled in the park must own proprietary office space and production venues and engage in production and operations). The concentration of the beauty and cosmetics industry is at least 70 percent ("industry concentration" refers to the ratio of total beauty and cosmetics business revenue of enterprises engaged in the beauty and cosmetics industry in the park in the previous year to the total revenue of all enterprises in the park in the previous year).

Article 38    The operational costs of a park include the costs of activities organized by the park to serve enterprises operating there and other costs directly related to operations and management (excluding rents), subject to the review results of the qualified third-party institution entrusted by the district-level department for industry and information technology on the special audit report regarding actual investment in projects submitted by the enterprise.

Article 39    This support program adopts a system of subsidizing afterward, with each applied support period being one calendar year, which must fall within the term of validity of these measures.

Article 40    Each business subject may only apply for one support program for park projects within the term of validity of these measures.

Article 41    The district-level department for industry and information technology shall conduct reviews for the support program and be responsible for the payment of funds.

Section 2     Support for rents upon settlement in parks

Article 42 [Support for Rents upon Settlement in Parks] For beauty and cosmetics enterprises conforming to Article 2 and Article 3 of these detailed rules that rent office and production space for use themselves upon settling in the specialized beauty and cosmetics industrial parks recognized by Article 36, rental subsidies shall be granted according to the following standards:

(1) For beauty and cosmetic enterprise with an output value above 20 million yuan in the year prior to setting up operations in the specialized park that rents office and production space for its own use, subsidies up to 800,000 yuan per year shall be granted according to 20 percent of the actual rent paid within the term of validity of these measures, with the term of the subsidy counted from the date that the enterprise initially establishes operations in the park, provided that the subsidized rents are incurred during the term of subsidy.

(2) For beauty and cosmetic enterprise with an output value above 50 million yuan in the year prior to setting up operations in the specialized park that rents office and production space for its own use, subsidies of up to 1 million yuan per year shall be granted according to 30 percent of actual rent paid within the term of validity of these measures, with the term of subsidy counted from the date that the enterprise initially establishes operations in the park, provided that the subsidized rent incurred during the term of the subsidy.

Article 43    This support program adopts a system of support afterward, with each applied subsidizing period being one calendar year, which must fall within the term of validity of these measures. The applicant must pay their own rent in full during the time that they are renting office and production space.

Article 44    The district-level department for industry and information technology shall conduct the actual reviews for this support program and be responsible for the payment of funds.

Chapter VI   Establish major public service platforms

Section 1 Support for innovative service platforms

Article 45 [Support for Major Innovative Service Platform Projects] The accelerated agglomeration of key scientific research institutions, research and development institutions, and the like shall be guided and promoted. For major innovative service platforms that serve as strong drivers with significant influence, support funds of up to 50 million yuan shall be granted according to 50 percent of actual construction costs with the approval of the district-level people's government and the administrative committee.

Article 46    Definition of relevant terms:

(1) Major innovative service platforms refer to scientific research institutions with independent legal personalities constructed in the district by such organizations as state-level scientific research institutions, Double First-Class universities, and major key enterprises.

(2) The actual construction costs of the platforms are the costs for things such as equipment purchases, technological research, and development activities, construction of scientific research platforms, recruitment of high-end talent and teams, commercialization of achievements, and daily operations incurred during the project construction.

Article 47    Major innovative service platforms applying for the support program must meet all of the following criteria:

(1) The platform must possess research and development capabilities that support the beauty and cosmetics industry, so as to lead the industry in the district to overcome relevant technical barriers and generate leading technologies.

(2) The platform must have reported to the district-level people's government and the administrative committee for approval prior to project initiation and have received their replies for project initiation.

(3) The preparation period for the platform must fall within the term of validity of these measures, subject to the reply issued by the district-level administrative authority for science, and the preparation period must not exceed 24 months.

(4) The actual construction costs of the platform are self-raised and must be incurred during the preparation period. The total amount of financial support received from higher authorities and the district must not exceed the total amount of funds raised by the organization undertaking the project itself, and the excess part shall not be paid.

(5) Major innovative service platforms initiated or completed prior to the issuance of these measures are not eligible for this support program.

Article 48    This support program adopts a system of offering support after project initiation. For projects that have undergone initiation, assessment, and acceptance, the district-level administrative authority for science shall, after reporting to the district-level people's government and the administrative committee for approval, grant support funds of up to 50 million yuan according to 50 percent of ratified actual construction costs (subject to the total costs verified by the special audit report issued by a qualified third-party institution entrusted by the district-level administrative authority for science). The support period shall last from the date of approval for the preparation of the platform until the maturity of the preparation period.

Article 49    The district-level administrative authority for science shall carry out reviews for this support program and be responsible for the payment of funds.

Section 2 Support for quality basic public services and resource sharing platforms

Article 50 [Support for Public Service Platform Projects] Those that develop quality basic public service and resource sharing platforms providing such services as cosmetic product efficacy and safety assessments and product packing designs, support funds of up to 2 million yuan shall be granted according to 30 percent of the actual construction costs upon ratification by the district-level administration for market regulation.

Article 51    Definition of relevant terms:

(1) Quality basic public service and resource sharing platforms refer to public service platforms established by public institutions (excluding those affiliated with the district), civil organizations, parks, and enterprises with independent legal personalities that provide beauty and cosmetics enterprises with quality basic services such as quality enhancement, inspection and testing, calibration, standardization, and certification and accreditation, project application services such as cosmetic product efficacy and safety assessments, registration (filing) of new raw materials, and production licenses, and platform services such as workshop design, product packing design, and resource sharing.

(2) The actual construction costs of platforms refer to costs recognized by the district-level administration for market regulation as directly related to platform construction, including online platform design and construction costs (including cybersecurity-related costs), site rental costs, site construction costs, office equipment costs, costs for the purchase of hardcopy standards, costs for hiring platform operations and management personnel during preparation, costs for organizing service activities, and publicity costs.

Article 52    Quality basic public service and resource sharing platforms applying for this support program must meet all of the following criteria:

(1) The platform must be able to support the industrialization of the beauty and cosmetics industry, provide quality basic services and relevant services for the industry, and produce achievements related to standardization, design, and patents. For each service category, the initial number of service resource-providing enterprises on the platform must be at least five, with full coverage of all service categories upon completion of construction.

(2) The actual construction funds for the platform are self-raised. The total amount of financial support received from higher authorities and this district must not exceed the total amount of funds raised by the organization undertaking the project itself, and the excess part shall not be paid.

(3) The platform must establish a dedicated online service platform that can achieve at least the three major functions of online publishing of resources, online consulting of services, and the online or offline matchmaking of transactions and operate effectively. Service sites or counters with dedicated purposes must be provided according to service categories.

(4) The platform must formulate service standards that are made public on the online service platform and at service counters, as well as implement standardized management. It must conduct customer satisfaction surveys for each service to establish an evaluation system for service quality and service performance.

(5) The platform must have a professional service team with at least 10 members. The application organization of the platform must be familiar with the beauty and cosmetics or quality basic services, while all members of the service team must have more than five years of relevant professional experience in the beauty and cosmetics industry or the quality basic service industry. The first person in charge of the team must be a regular employee at the applying organization, with a full-time labor contract signed with the applying organization and social insurance premiums contributed by the applying organization for no less than six consecutive months, and have more than five years of relevant professional experience. In cases where the first person in charge changes during the construction period, the replacement must also conform to the requirements of this clause.

Article 53    This support program adopts the system of providing support after the initiation of projects. For platform projects that have already completed project initiation, the number of support funds shall be determined as follows after being assessed and approved upon maturity of the preparation period for the platform:

(1) The preparation period for the platform, subject to the reply issued by the district-level administration for market regulation, is generally 12 months and must not exceed 24 months. The preparation period must fall within the term of validity of these measures, while the actual construction costs of the platform must be incurred during the preparation period.

(2) In cases where the same applicant has two or more projects in the same category under various stages of construction, they may not apply for new projects of the same category before being approved.

Article 54    The district-level administration for market regulation shall carry out reviews for this support program and be responsible for the payment of funds.

Chapter VII  Create internationally recognized independent brands

Section 1 Support for notable design awards

Article 55 [Support for Notable Design Projects] One-time support funds up to 1 million yuan shall be granted to products receiving notable design awards at home and abroad.

Article 56    The notable design awards are product design and product packing design awards for the beauty and cosmetics industry that are set up by notable industrial design appraisal institutions at home and abroad:

(1) International awards

1.   For recipients of Red Dot: Best of the Best and Red Dot: Honorable Mention in the product design category of the Red Dot Design Awards, support funds of 1 million yuan and 300,000 yuan shall be granted, respectively;

2.   For recipients of the iF Design Award Gold and iF Design Award in the product and packaging categories, support funds of 1 million yuan and 300,000 yuan shall be granted, respectively;

3.   For recipients of IDEA Gold, Silver, Bronze, and Finalist awards, support funds of  1 million yuan, 500,000 yuan, 300,000 yuan, and 100,000 yuan shall be granted, respectively.

(2) Chinese awards

1.   For recipients of the Gold, Silver, and Excellence Awards of the WIPO-CNIPA Awards for Chinese Outstanding Industrial Design, support funds of 1 million yuan, 500,000 yuan, and  300 ,000 yuan shall be granted, respectively;

2.   For industrial design patents receiving the Gold, Silver, and Excellence Awards of the Guangdong Provincial Patent Awards, support funds of 300,000 yuan, 200,000 yuan, and 100,000 yuan shall be granted, respectively;

3.   For recipients of Diamond, Gold, Silver, and Bronze Awards in the finals of the Governor Cup Industrial Design Competition, support funds of 300,000 yuan, 200,000 yuan, 100,000 yuan, and  50,000 yuan shall be granted, respectively.

Article 57    Projects applying for this support program must meet all of the following criteria:

(1) The applicant must be a manufacturer of cosmetics products conforming to the provisions of Article 3 of these detailed rules.

(2) Winners of notable design awards at home and abroad applying for this support program must be a cosmetic product of a Chinese brand.

(3) The applicant must have won the notable design award within the term of validity of these measures.

Article 58    The district-level department for industry and information technology shall carry out reviews for this support program and be responsible for the payment of funds.

Section 2      Support for formulation and revision of standards

Article 59 [Support for Standard Projects] Enterprises are encouraged to engage in the formulation and revision of standards for things like cosmetic products, raw materials for cosmetic products, effectiveness evaluation, and safety evaluation. Those leading the formulation and revision of national, industry, local, and consortium standards shall be granted support funds of up to 500,000 yuan, 300,000 yuan, 100,000 yuan, and 50,000 yuan, respectively.

Article 60    The standard formulation and revision projects applying for this support program must meet all of the following criteria:

(1) The standard must have been officially approved and published within the term of validity of these measures.

(2) The applicant must be among the first three drafting organizations in the "Foreword" text of the standard.

Article 61    Support funds for this program shall be granted by the district-level administration for market regulation according to the district's currently valid measures on the management of dedicated funds for strengthening the district through high-quality efforts and their detailed rules.

Chapter VII  Helping Brands Increase Their Influence

Section 1 Branding support

Article 62 [Support for Branding Projects]  For enterprises with over 100 million yuan in annual revenue from their beauty and cosmetics business that are promoting their products, support funds shall be granted according to 2 percent of the branding costs for their beauty and cosmetic products for that year, with the support for each enterprise capped at 1 million yuan per year.

Article 63    The branding costs for beauty and cosmetics products for that year refers to all branding costs for beauty and cosmetic products incurred by the applicant within the supported year, including the costs of hiring brand ambassadors and online and offline advertising costs (online advertisements refer to internet advertisements, i.e., commercial advertisements promoting goods directly or indirectly in the form of texts, pictures, audio clips, video clips or other forms on websites, webpages, and internet applications), but not costs related to participating in industry exhibitions.

Article 64    All of the following criteria must be met before applying for this support program:

(1) Applicants are divided into two categories: the first is enterprises belonging to the wholesale industry or the retail industry as specified by the Industrial Classification for National Economic Activities (GB/T 4754-2017), subject to the statistical industry shown on the Table of Basic Conditions of the Surveyed Organization printed by the enterprises from the unified table system of the National Bureau of Statistics; the second is manufacturing enterprises in the beauty and cosmetics industry.

(2) The applicant is a corporate holder or exclusive domestic licensee of the trademark of a domestic beauty and cosmetics brand, or an exclusive domestic licensee of a well-known foreign cosmetics brand (see Article 81 of these supplementary provisions for relevant definition), conforming to the stipulations of Clause (1) of Article 64 of these detailed rules.

(3) Annual revenue from the beauty and cosmetics business refers to the annual revenue of the applicant, as a corporate holder of a brand, exclusive domestic licensee of the trademark of a domestic beauty and cosmetics brand, or exclusive domestic licensee of a well-known foreign cosmetics brand, from relevant branded beauty and cosmetics products in the supported year, including the enterprise's actual output value and business income from various links in the beauty and cosmetics industrial chain defined by Article 2 of these detailed rules.

1.   Where the applicant belongs to the wholesale industry or the retail industry in the beauty and cosmetics industry as specified by the Industrial Classification for National Economic Activities (GB/T 4754-2017), its annual revenue from the beauty and cosmetics business, as reported on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant, is subject to review by the district-level commerce department;

2.   Where the applicant is a manufacturing enterprise in the beauty and cosmetics industry, its annual revenue from the beauty and cosmetics business as reported on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant, is subject to review by the district-level administration for market regulation.

Article 65    The district-level commerce department shall carry out reviews for this support program (for application materials of manufacturing enterprises in the beauty and cosmetics industry, the reviews shall be conducted by the district-level administration for market regulation, with pro forma reviews conducted by the district-level commerce department), and be responsible for the payment of funds.

Section 2     Support for participation in notable exhibitions

Article 66    For manufacturing enterprises with annual revenue from the beauty and cosmetics business above 50 million yuan that are participating in major promotional activities such as professional trade fairs and expos at home and abroad, support funds shall be granted upon ratification according to 50 percent of the actual charges incurred for booths, rent, etc., with the support for each enterprise capped at 200,000 yuan per year.

Article 67    Definition of relevant terms:

(1) Major professional trade fairs and expos at home and abroad refer to notable promotional beauty and cosmetics activities apart from professional service outsourcing exhibitions, industry promotion conferences, and project matchmaking meetings organized by competent provincial and municipal authorities for enterprises to participate in. Such events include the China International Import Expo (CIIE), China International Consumer Products Expo, China Import and Export Fair, China Beauty Expo (CBE), China International Beauty Expo (CIBE), COSMOPROF Worldwide Bologna, Beautyworld Middle East (Dubai), International Beauty Show Las Vegas, and COSMOPROF Asia Hong Kong, among others.

(2) Booth and rental fees refer to the rental fees paid by enterprises for renting standard booths or raw exhibition spaces and do not include other service costs such as booth decoration fees and advertising fees.

Article 68    This support program requires written notice before providing support. Eligible applicants must inform the district-level administration of market regulation in written form at least ten working days before participating in notable major promotional activities such as professional trade fairs and expos at home and abroad, including an exhibitor notification letter, list of estimated costs, and more included in the notice materials. Those having participated in such activities after these measures came into force but prior to the issuance of these detailed rules must submit supplementary notice materials.

Article 69    Within the term of validity of these measures, support funds shall be granted according to 50 percent of actual costs incurred from the booth and rental fees, with the support for each enterprise capped at 200,000 yuan per year they apply.

Article 70    The district-level branch of the China Council for the Promotion of International Trade shall conduct pro forma reviews on application materials submitted by applicants, while the district-level administration for market regulation shall carry out the full reviews and be responsible for the payment of funds.

Chapter IX    Foster a first-class environment for industrial development and provide focused support for key projects

Article 71 [Improving the Business Environment] Reforms that delegate power, improve regulations, and upgrade services shall be deepened and service processes shall be optimized to simplify approval procedures as much as possible, so as to accelerate the pace of releasing and promoting new products. A national drug safety evaluation center shall be established in conjunction with the Guangdong Institute for Drug Control, and a toxicology testing laboratory for cosmetic product registration and filing shall be built to provide customized professional technical services for the development of raw materials with new efficacy and evaluate the effectiveness of new products and key projects in the field of high-end daily chemicals. Communication mechanisms among such departments as the administration for market regulation and the public security bureau shall be improved to strengthen collaborative law enforcement regarding beauty and cosmetic enterprises in the district and crackdown on the production and selling of fake or shoddy goods and infringing upon intellectual property rights so as to protect the legitimate rights and interests of enterprises.

Article 72 [Support for Key Projects] For key projects with significant influence and contributions to local economic development, additional focused support shall be granted with the approval of the district-level people's government and the administrative committee.

Chapter X     Supplementary provisions

Article 73 [Performance Management] The funds needed for these detailed rules shall be arranged by the district-level people's government and the administrative committee and included in the annual budgets of the district-level administration for market regulation, the district-level administrative authority for science, the district-level department for industry and information technology, and the district-level commerce department, respectively. The various district-level competent authorities shall expend maximum effort to review and pay funds and manage performance according to laws, regulations, and their responsibilities. district-level finance and auditing departments shall supervise the use of funds and manage performance according to their responsibilities.

Article 74 [Application Process] Policy implementation matters related to these detailed rules shall adopt a policy implementation and handling model that can be summed up by "acceptance by one department, internalized procedures, integrated services, and punctual completion." The district-level policy research office shall accept the application materials submitted by applicants and conduct pro forma reviews. Applicants who fail to pass the pro forma reviews or need to supplement or amend application materials must be informed within five working days; applications that have passed the pro forma reviews shall be transferred to relevant district-level competent authorities corresponding to the support programs; relevant district-level competent authorities shall carry out full reviews of application materials, with professional reviews carried out if needed, and apply to appropriate funds for implementation matters conforming to the conditions for support programs according to relevant procedures after publicity and review as per the specified procedures.

Organizations applying for support funds in these detailed rules shall submit applications to the policy implementation counters at the district-level government affairs service center at a time specified by such counters; those who fail to submit applications in time lose their eligibility for the support funds. In principle, support funds for the previous year shall be applied annually from the second year after these measures come into force to within one year after the maturity of their term of validity, while special stipulations, if any, shall prevail.

The application process and materials to be submitted are subject to the service guides for corresponding matters made public by relevant district-level competent authorities on the policy implementation system.

Article 75 [Credit Penalties] Enterprises and institutions applying for support funds in these detailed rules must sign relevant letters of commitment promising that they are informed of relevant support policies and agreements and that they will fill in relevant information truthfully. Various agencies or individuals are strictly prohibited from illegally withholding, embezzling, fraudulently using, or falsely claiming support funds. 

Enterprises and institutions that have defrauded the support funds in these detailed rules by lying, withholding, crowding out, embezzling, or misusing support funds in violation of the stipulations of these detailed rules, or that have breached relevant commitments, must take the initiative to return the support funds they obtained. Where such enterprises and institutions fail to do so, various departments distributing the funds have the right to recover the funds they distributed. Various district-level departments distributing the funds shall make the dishonest behaviors of enterprises and institutions public according to law and record them in credit files, disqualifying applications for support funds made by such enterprises and institutions within the next three years. Acts that constitute a criminal offense shall be prosecuted in accordance with the law. Where an enterprise or institution has been listed as a target of joint state penalties for dishonesty, various departments distributing the funds shall suspend or cancel the distribution of support funds before it repairs its credit and exits from the list of targets of joint state penalties for dishonesty.

Article 76 [Distribution of Funds] The support funds related to these detailed rules shall be directly allocated to the basic account of the applying enterprise or institution, while taxes arising from the support funds shall be borne by the enterprise or institution in full according to state regulations. The use and management of the support funds should abide by relevant state laws, regulations, rules, and policy provisions. They must be used mainly for the production and operations of the enterprise or institution, and may not be diverted to any other use.

Article 77 [Instructions on Repeated Support] In cases where the same matter or project is eligible for multiple support programs in these detailed rules simultaneously, the applicant must choose one to apply for. 

In cases where the same matter or project conforming to the provisions of these detailed rules is also eligible for other support policies (including policy provisions where higher authorities require this district to allocate or provide funding) or key project support in the same district, the higher amount will be offered; special stipulations, if any, shall prevail.

In cases where the same matter or project conforming to the provisions of these detailed rules has received fiscal support granted by other support policies at the state, provincial, or municipal level or by other districts, repeat applications are not allowed. Special stipulations, if any, shall prevail. 

For enterprises or institutions that have signed case-by-case investment agreements with the district-level people's government and the administrative committee, the stipulations of such agreements shall prevail.

Article 78 [Instructions on Numbers] The "above," "up to," "capped at," "at least", and "no less than" mentioned in these detailed rules are all-inclusive of the number. Unless otherwise specified, the amounts in these detailed rules are all in CNY.

Article 79 [Handling of Complaints] The general public has the right to supervise the implementation and use of funds for various support programs mentioned in these measures and these detailed rules. Corresponding district-level industry-specific regulatory authorities shall handle relevant complaints with reference to the procedures for petition and reply to the complainant.

Article 80 [Instructions on a Specific Concept] Well-known foreign cosmetics brands refer to cosmetics brands listed in the World's Top 50 Most Valuable Cosmetics Brands (Cosmetics 50) released by Brand Finance, a brand valuation institution headquartered in the UK, in the specific applied year.

Article 81 [Term of Validity of the Policy] These detailed rules shall come into force from the date of issuance and shall be valid until Dec 31, 2024. Upon maturity of the term of validity, relevant support funds payable that have not been paid in full should continue to be implemented until all funds have been paid.

Mode of disclosure: Active disclosure

Issued by the General Office of the Guangzhou Huangpu district Administration for Market Regulation on March 25, 2022

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