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 (Revised)

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 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 the raw materials, formulas, research and development, production, intelligent manufacturing, and exhibition and trade of cosmetics and includes those 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 providing for the cosmetics industry, such as the registration (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 Cosmetic 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 cleansing, protecting, beautifying or grooming purposes. 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 implemented accordingly.

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

Chapter II      Cultivating World-Class Model Enterprises

Article 4  [Annual Revenue Support] Enterprises are encouraged to grow, with one-off support funds of 20 million yuan ($2.9 million), 2 million yuan, and 1 million yuan granted to enterprises with annual revenue from the beauty and cosmetics business exceeding 50 billion yuan, 10 billion yuan, and 5 billion yuan, respectively.

Article 5  The supported targets 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 National Bureau of Statistics; the second being manufacturing enterprises in the field of 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 of 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 definition), conforming to the stipulations of 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 of 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 applying subject.

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 supported year, including the actual output value and business income of the enterprise from various links of the beauty and cosmetics industry defined by Article 2 of these detailed rules.

(1)  Where the applicant belongs to the wholesale industry or the retail industry in the field of 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 is subject to the review results of the district-level commerce department on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant.

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

(3)  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 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 (including only the revenue generated by the parent company of the group itself and the revenue of its subsidiaries within this district, with the part of internal transactions between the parent company of the group and its subsidiaries and those between its subsidiaries excluded), subject to the review results of the district-level administration for market regulation 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 the actual reviews for this support program (for application materials of manufacturing enterprises in the field of the beauty and cosmetics industry and parent companies of the group, the actual 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     Enhancing Core Competitiveness of Products

Section One  Support for Scientific Breakthroughs

Article 9  [Support for Scientific Breakthrough Projects] Support is given to enterprises for them to seek high-standard scientific breakthroughs in such aspects as raw materials, production technique, function, efficacy, and safety assessment of cosmetic products, so as to promote the advancement towards the medium to 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 10 projects shall be selected within the term of validity of these measures, with one-off support funds up to 1 million yuan each granted according 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, rents, 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 manufacturing enterprise of cosmetic products.

(2)  The applying project must be an activity seeking scientific breakthroughs around such aspects 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 technique, function, efficacy, and safety assessment of cosmetic products.

(3)  The time of project initiation 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 applying 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 applying 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 doctor's degrees. The first 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-off support funds up to 1 million yuan each shall be granted according to 30 percent of the actual costs incurred ratified by the special audit report issued by a qualified third-party institution 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 their self-raised or other funds.

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

Section Two  Support for Registration (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 according 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 efficacy, applied area, or applicable 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 sales 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 new claimed efficacy that have been approved by the medical products administration department of the State Council for registration, one-off support funds shall be granted according 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 have been approved by the medical products administration department of the State Council for registration, one-off support funds shall be granted according to 30 percent of the actual costs incurred during registration, with the support for each project capped at 100 thousand yuan .

(3)  For new raw materials for cosmetic products with freckle whitening, sun screening, anti-hair loss, hair dyeing, deodorizing, or antiseptic functions that are original in the world and never before used at home and abroad, one-off support funds shall be granted according to 30 percent of the actual costs incurred during registration (filing), with the 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 are original in the world and never before used at home and abroad, one-off support funds shall be granted according to 30 percent of the actual costs incurred during registration (filing), with the support for each project capped at 300,000 yuan.

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

(6)  For new raw materials for cosmetic products already approved for use abroad but only approved for use in China for the first time, one-off support funds shall be granted according to 30 percent of the actual costs incurred during registration (filing), with the 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-off support funds shall be granted according to 30 percent of the actual costs incurred during registration (filing), with the 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  Where an enterprise acquires multiple registration (filing) certificates for new raw materials for cosmetic products or registration certificates for cosmetic products with new efficacy, one-off support funds may be granted severally.

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 applying project issued by a qualified third-party institution entrusted by the district-level administration for market regulation.

Article 21  The applying project 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 applying for support.

(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 applying for support.

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 this support fund:

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 such concerns as safety issues.

(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 such concerns as safety issues.

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 applying projects eligible to apply for this support program, the support fund shall be paid according to the following rules:

For applying 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-off support funds after acquiring the registration certificates for cosmetic products with new efficacy; after the cosmetic products with new efficacy in the applying project have achieved more than 500,000 yuan in output value or sales volume 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-off support funds.

For applying 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-off 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 applying project have achieved more than 500,000 yuan in output value or sales volume 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-off support funds.

(3)  For a manufacturing enterprise of cosmetic products with applying 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-off 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 applying project have achieved more than 500,000 yuan in output value or sales volume 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-off support funds.

(4)  For a merchandising enterprise of cosmetic products with applying 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-off 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 volume 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 applying project, the applicant may apply for the payment of the remaining 50 percent of the ratified one-off 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-off 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 actual 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 main functional ingredients to highlight traditional Chinese medicine characteristics. 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 volume, no more than 15 projects shall be selected within the term of validity of these measures, with one-off 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 functional 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 play a critical role in the efficacy of 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 by Article 3 of these detailed rules) that are original in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main functional ingredients, which have been put on sale in China.

(3)  Achieving more than 2 million yuan in sales volum refers to a sales volume of the product in the applying project that exceeds 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 applying for this support program must meet all of the following criteria:

(1)  The time of project initiation 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 applying 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)  Where the applying 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 applying project shall be the applicant in principle.

Article 29  With individual cosmetic products conforming to 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 are original in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main functional ingredients, and possessing freckle whitening, sun screening, anti-hair loss, hair dyeing, or deodorizing, functions, 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 are original in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main functional ingredients, and possessing anti-acne or anti-wrinkle functions (excluding physical anti-wrinkle functions), the 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 as surfactants, emulsifiers, anti-dandruff agents, or antiseptics that are original in the world, the 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 are original in the world, such as Chinese herbal medicine and plant resources and natural product resources, as main functional ingredients, the 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-off support funds shall be granted according to the higher one between the two.

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

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

(2)  An applying 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 due to such concerns as safety issues.

(2)  The cosmetic products used for the applying project have been de-registered or canceled from filing by the medical products administration department of the State Council due to such concerns as safety issues.

Article 34  This support program adopts the system of project initiation beforehand and support afterward. The applying 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 actual reviews for this support program and be responsible for the payment of funds.

Chapter V      Building High-end Carriers for Industry Clusters

Section One  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 with high quality to facilitate the accelerated agglomeration of high-end factors. For ratified specialized beauty and cosmetics industrial parks, operations support up to 1 million yuan per year shall be granted for three years according to 50 percent of the actual operations costs of the parks.

Article 37  An industrial park meeting all of the following criteria could be recognized as a specialized beauty and cosmetics industrial park:

(1) The predominant industry in the park must be the beauty and cosmetics industry;

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

(3) The park must have a professional operations management team 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 a professional operations and management system covering such aspects as investment promotion, enterprise services, and real estate management.

(4) The number of beauty and cosmetics enterprises that have settled in the park or have signed agreements of intent or letters of commitment with the park regarding settling in must be no less than 20.

A recognized specialized beauty and cosmetics industrial park meeting all of the following criteria at the same time is entitled to operations subsidies amounting to 50 percent of the actual operations costs of the park for three years, with the amount granted for each year capped at 1 million yuan:

(1) The park has introduced and cultivated enterprises within the scope of the beauty and cosmetics industry that possess significant industry-leading and spill-over effects. It has agglomerated no less than 30 industrial enterprises above the designated size in the upstream and downstream of the industrial chain, with the industrial output value of such enterprises being no less than 22,500 yuan/m² and their business contribution being no less than 1,200 yuan/m² in the previous year, with the constructed area of workshops rented or occupied by them as the basis for calculation (calculated by 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).

(2) The occupancy rate of the park has reached 75 percent (sold or having signed site lease contracts), with no less than 30 beauty and cosmetic enterprises settled in (enterprises domiciled in the park must own proprietary office space and production venues and engage in actual production and operations) and a concentration of beauty and cosmetics industry no lower than 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 actual operations costs of a park include the costs of activities organized by the park to serve enterprises settled in it and other costs directly related to operations and management (excluding rents for the site), 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 the actual investment of the project submitted by the enterprise.

Article 39  This support program adopts the 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 the actual reviews for this support program and be responsible for the payment of funds.

Section Two  Support for Rents upon Settlement in Parks

Article 42 [Support for Rents upon Settlement in Parks] For beauty and cosmetic enterprises conforming to Article 2 and Article 3 of these detailed rules that rent office and production space for use by 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 a beauty and cosmetic enterprise with an output value above 20 million yuan in the year prior to settling in the specialized park that rents office and production space for use by itself, subsidies up to 800,000 yuan per year shall be granted according to 20 percent of the actual rents paid within the term of validity of these measures, with the term of subsidy counted from the date that the enterprise settles in the park, provided that the subsidized rents are incurred during the term of subsidy.

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

Article 43  This support program adopts the system of supporting 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 the rent in full during the period of 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     Establishing Major Public Service Platforms

Section One      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 which serve as strong drivers with significant influence, support funds up to 50 million yuan shall be granted according to 50 percent of the actual construction costs with the approval of the district-level people's government and the administrative committee.

Article 46  Definition of relevant terms:

Major innovative service platforms refer to scientific research institutions with independent legal personality constructed in this 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 refer to costs for such aspects as equipment purchase, technological research and development activities, construction of scientific research platforms, introduction of high-end talents and teams, commercialization of achievements, and daily operations incurred during project construction.

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

(1)  The platform must possess research and development capabilities supporting the beauty and cosmetics industry, so as to lead the beauty and cosmetics industry in this district to seek breakthroughs in 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 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, which must be incurred during the preparation period. The total amount of fiscal 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.

(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 the system of project initiation beforehand and support afterward. For those passing project 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 up to 50 million yuan according to 50 percent of the 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 be from the date of approval for the preparation of the platform to the maturity of the preparation period.

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

Section Two  Support for Quality Basic Public Service and Resource Sharing Platforms

Article 50 [Support for Public Service Platform Projects] For those constructing quality basic public service and resource sharing platforms providing such services as cosmetic product efficacy and safety assessment and product packing design, support funds 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:

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 personality, that provide beauty and cosmetic enterprises with such quality basic services as quality enhancement, inspection and testing, calibration, standardization, and certification and accreditation, such project application services as cosmetic product efficacy and safety assessment, registration (filing) of new raw materials, and production licenses, and such platform services as workshop design, product packing design, and resource sharing.

(2)  The actual construction costs of platforms refer to the 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 such achievements as standardization, design, and patents. For each service category, the initial number of service resource-providing enterprises settled in the platform must be no less than five, with full coverage of all service categories upon completion of the construction.

(2)  The actual construction costs of the platform are self-raised. The total amount of fiscal 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 could 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 and implement standardized management. It must conduct customer satisfaction surveys for each service to establish an evaluation mechanism for service quality and service performance.

(5)  The platform must have a professional service team with no less than 10 members. The applying organization of the platform must be familiar with the field of beauty and cosmetics or the field of quality basic service, 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 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, and have more than five years of relevant professional experience. Where the first person in charge changes during the construction period, the replacement must conform to the requirements of this clause.

Article 53     This support program adopts the system of project initiation beforehand and support afterward. For platform projects that have passed project initiation, the amount of the support funds shall be determined as follows after passing assessment and acceptance 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 for the platform 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)  Where the same applicant has two or more projects in the same category at various levels under construction, it may not apply for new projects of the same category before passing acceptance.

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

Chapter VII  Creating Internationally Recognized Independent Brands

Section One      Support for Notable Design Awards

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

Article 56  Notable design awards at home and abroad refer to product design and product packing design awards related to the field of 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: Honorable Mention in the product design category of the Red Dot Design Award, support funds of 1 million yuan and 300,000 yuan shall be granted, respectively;

2.    For recipients of 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 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 Gold, Silver, and Excellence Awards of the Guangdong Provincial Patent Award, 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 manufacturing enterprise of cosmetic products conforming to the provisions of Article 3 of these detailed rules.

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

(3)  The award-winning time of notable design awards at home and abroad applying for this support program must fall within the term of validity of these measures.

Article 58  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.

Section Two      Support for the Formulation and Revision of Standards

Article 59  [Support for Standard Projects]   Enterprises are encouraged to engage in the formulation and revision of standards in such aspects as 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 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 is 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" in the 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 with quality efforts and their detailed rules.

Chapter VII   Helping Brands Improve Their Influence

Section One  Branding Support

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

Article 63  The branding costs for beauty and cosmetic products in the year refer 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 others using internet media such as 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 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 National Bureau of Statistics; the second being manufacturing enterprises in the field of 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 cosmetic products in the supported year, including the actual output value and business income of the enterprise from various links of the beauty and cosmetics industry defined by Article 2 of these detailed rules.

1.    Where the applicant belongs to the wholesale industry or the retail industry in the field of 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 is subject to the review results of the district-level commerce department on the special audit report regarding annual revenue from the beauty and cosmetics business submitted by the applicant;

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

Article 65  The district-level commerce department shall conduct the actual reviews for this support program (for application materials of manufacturing enterprises in the field of the beauty and cosmetics industry, the actual 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 Two  Support for Participation in Notable Exhibitions

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

Article 67  Definition of relevant terms:

(1)  Notable major professional trade fairs and expos at home and abroad refer to major beauty and cosmetics promotional activities apart from the professional service outsourcing exhibitions, industry promotion conferences, and project matchmaking meetings organized by competent provincial and municipal authorities for enterprises to participate. Such events include 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, Beauty World Middle East (Dubai), International Beauty Show Las Vegas, COSMOPROF Asia Hong Kong, and the like.

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

Article 68  This support program adopts the system of written notice beforehand and support afterward. Eligible applicants must inform the district-level administration for 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, with the exhibitor notification letter, list of estimated costs, and the like 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 booth charges, rental fees, and the like incurred, with the support for each enterprise capped at 200, 000 yuan in each applied year.

Article 70  The district-level branch of 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 conduct the actual reviews and be responsible for the payment of funds.

Chapter IX     Fostering a First-Class Environment for Industrial Development and Providing Focused Support for Key Projects

Article 71  [Improving the Business Environment]      Reforms that delegate power, improve regulation, and upgrade services shall be deepened and service processes shall be optimized to reduce approval procedures and time taken 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 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, effectiveness evaluation of new products, and key projects in the field of high-end daily chemicals. The 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 this district and crack down on the acts of producing and selling fake and shoddy goods and infringing 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 great 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 do a good job in the review and payment of funds as well as performance management according to laws, regulations, and their responsibilities. The district-level finance and auditing departments shall conduct supervision on the use of funds and performance management according to their responsibilities.

Article 74 [Application Process]      Policy implementation matters related to these detailed rules shall adopt a policy implementation and handling model of "acceptance by one department, internalized procedures, integrated services, and time-limited 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 pro forma reviews or need to supplement or amend application materials must be informed within five working days; the 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 organize actual reviews on the application materials with professional reviews organized 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 specified procedures.

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

The application process and materials that must be submitted shall be 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 employing trickery, withheld, crowded out, embezzled, or misused support funds in violation of the stipulations of these detailed rules, or breached relevant commitments must take the initiative to return the support fund obtained. Where such enterprises and institutions fail to do so, various departments distributing the funds have the right to recover the funds 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 the 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 completes credit repair 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 such aspects as production and operations of the enterprise or institution, and may not be diverted to any other use.

Article 77  [Instructions on Repeated Support]   Where the same matter or project is eligible for multiple support programs in these detailed rules at the same time, the applicant may only choose one to apply for.

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 of this district, support funds shall be granted according to the principles of adopting the higher one and avoiding repetition; special stipulations shall prevail if there are any.

Where the same matter or project conforming to the provisions of these detailed rules has received fiscal funding support granted by other support policies at the state, provincial, or municipal level or of other districts, repeated application is not allowed. Special stipulations shall prevail if there are any.

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," and "no less than" mentioned in these detailed rules are all inclusive of the number. Unless otherwise specified, the amounts in these detailed rules adopt yuan as the currency.

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. The existing 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 (Sui Pu Shi Jian Gui Zi [2022] No 1) are concurrently repealed. 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.

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