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Pilot Subsidy Scheme for Third-party Logistics Service Providers

Eligibility for Application

All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance (Cap. 310) with substantive business operations in Hong Kong, which also meet the following conditions, are eligible to apply:

  • Providing third-party logistics services, i.e. value-added services in supply chain and distribution;
  • Being related to either inbound or outbound goods; and
  • Maintaining eligibility throughout the period of project implementation.

Subsidy Amount

  • The total cumulative subsidy ceiling per applicant enterprise under the Pilot Scheme is HK$1,000,000 (including project audit fee).
  • Subsidy will be provided on a 1:1 matching basis, i.e. the Government will cover a maximum of 50% of the total approved project cost (except the project audit fee) while the applicant enterprise has to contribute the remaining portion.
  • Project auditing is required for every project. The maximum audit fee to be provided is HK$10,000, which will be counted towards the cumulative funding per applicant enterprise.
  • Funding support will be granted to each applicant enterprise for a maximum of 4 approved projects, with each approved project to be completed within 24 months.
  • The actual subsidy will be determined on the basis of the actual costs incurred by the successful applicant enterprise for the approved project(s) or the cumulative subsidy ceiling, whichever is the lower.
  • Any approved projects cannot be subsidised under any other funding schemes of the Government at the same time.

Application Time

  • The Pilot Scheme is open for application all year round.
  • The processing time will depend on the submission of the required supporting documents.

Assessment Criteria

  • Applications should be for implementation of project for applying technology and/or information systems to enhance the productivity and efficiency of value-added logistics processes.
  • Applications will be assessed based on individual merits and considered on a case-by-case basis.
  • The assessment criteria of the proposed projects include:
    1. Relevance of the proposed projects to the applicant enterprise’s business, i.e. whether the productivity and operational efficiency of the applicant enterprise’s business could be enhanced as a result of the proposed project
    2. Reasonableness of the budget
    3. Reasonableness of the implementation details
    4. Capability of Service Providers
    5. Past record of Service Providers (if available)

Project Monitoring

  • To facilitate the monitoring and evaluation of approved projects, the successful applicant enterprise will be required to submit reports to the Secretariat for review. Successful applicant enterprises will have to submit progress report and final report to the Secretariat for the MC’s approval.

PROJECT DURATION 

SUBMISSION OF PROGRESS REPORT

SUBMISSION OF FINAL REPORT AND FINAL AUDITED ACCOUNTS

18 months or below

Not required

Within two months upon project completion

More than 18 months and up to 24 months

One progress report covering the first 12 months to be submitted within one month after the relevant 12-month period

Within two months upon project completion

  • The Secretariat will review the project progress and evaluate the project results by comparing the project progress and deliverables contained in the progress report and final report against its implementation plan and deliverables as set out in the project proposal appended to the funding agreement.
  • The Secretariat may conduct on-site checking to verify the progress and results of approved projects, if needed.

Disbursement of Funds

  • An initial payment of 75% of the approved funding amount shall be payable to the successful applicant enterprise after signing of the funding agreement.
  • The final payment will be made to the successful applicant enterprise upon project completion and acceptance of the final report by the MC and the Secretariat.

Suspension or Termination of Funding Support

  • The Government reserves the right to suspend or terminate funding support for an approved project. Once a project is suspended or terminated, the applicant enterprise will not be entitled to the receipt of funding under the Pilot Scheme.  Any cost incurred in the project should be solely borne by the applicant enterprise.  The applicant enterprise should return all/part of the funding disbursed in respect of the approved project(s) (regardless of whether the applicant enterprise has already spent the funds or not) together with all administrative, legal and other related costs and payments to the Government via the Secretariat.