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Pilot Subsidy Scheme for Third-party Logistics Service Providers
Background
With a view to maintaining competitiveness of Hong Kong's logistics sector, the Government of the Hong Kong Special Administrative Region (the Government) launched the “Pilot Subsidy Scheme for Third-party Logistics Service Providers” (the Pilot Scheme) on 12 October 2020 to encourage the adoption of technology by the logistics sector for enhancing efficiency and productivity. The Pilot Scheme also covers the purchase of screening equipment including X-ray machines and Explosive Trace Detection (ETD) equipment under the Regulated Air Cargo Screening Facilities (RACSFs) Scheme accepted by the Civil Aviation Department.
The Transport and Logistics Bureau (TLB) has engaged the Hong Kong Productivity Council (HKPC) as the Implementation Partner to serve as the Secretariat for the Pilot Scheme. A Management Committee (MC) comprising members from the trade, industrial and professional sectors has been set up to assess and approve applications. Please click here for the membership of the MC.
For more information regarding RACSF Scheme and the latest version of screening equipment approved by the Civil Aviation Department, please refer to their website here.
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Introductory Video
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).
- The Government will cover a maximum of two-thirds 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:
- 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
- Reasonableness of the budget
- Reasonableness of the implementation details
- Capability of Service Providers
- Past record of Service Providers (if available)
- Please refer to the Guide to Application for details.
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.
Application Submission
- The Pilot Scheme is open for application all year round.
- The processing time will depend on the submission of the required supporting documents.
- Applicant enterprises could submit online applications using e-application form system accessible.
- Applicant enterprises shall complete and submit the e-application form along with electronic copy of supporting documents as stipulated in the Guide to Application.
Management Committee of the
Pilot Subsidy Scheme for Third-party Logistics Service Providers
Membership List
2023-2024 Term
(1 January 2023 to 31 December 2024)
Chairman:
Deputy Secretary for Transport and Logistics
Members
Ir Stephen CHAN King-che
Professor CHEUNG Wai-man
Ir Dr Kelvin LEUNG Kai-yuen
Ms Anna LIN Kit-yee, M.H., J.P.
Mr Simon WONG Kwong-yeung, M.H.
Mr Gary YEUNG Man-yui, M.H.
The Honourable Frankie YICK Chi-ming, G.B.S., J.P.
Secretary
Principal Assistant Secretary for Transport and Logistics
Success Cases
Events
FAQs
Related enterprises, i.e. enterprises registered as different businesses under the Business Registration Ordinance (Cap. 310) but having common shareholders (up to the ultimate level of natural persons if the enterprises are held by companies) whose equity interest is 30% or more in each of the enterprises and having the same business nature, would be treated as one single Applicant Enterprise for the purpose of calculating the cumulative funding amount (i.e. subject to the cumulative funding ceiling of HK$1 million). Other relevant factors (such as business nature, shareholding structure and evidence of separation of business etc.) will also be taken into account as appropriate in determining whether Applicant Enterprises would be treated as one single Applicant Enterprise and be subject to the cumulative funding ceiling of HK$1 million. The Management Committee and the Secretariat would assess applications based on individual circumstances of each application (such as business operation, office information, etc.) and project implementation details. The Management Committee and the Secretariat reserves the rights to request additional documentary evidence from the Applicant Enterprise for assessing its eligibility and to determine whether the Applicant Enterprise is eligible to apply for subsidy under the Pilot Scheme.
Applicant Enterprises may provide commercial contracts, invoices, receipts, quotation documents, freight forwarding documents, bank records, etc. as proof. Please refer to Guide to Application and Application Form for details.
Projects which have received/would receive other sources of funding support provided by the Government would not be eligible for subsidy under the Pilot Scheme. Applicant Enterprises have to declare in their applications that the proposed project have not received such other sources of funding support and are not applying for such funding support at the time of application under the Pilot Scheme.
Applicant Enterprises should provide purchase agreement, invoices/receipts, proof of deposit (if any) to prove that such ETD equipment was ordered during the qualifying period. The model of such ETD equipment and the licensing for RACSFs must have the acceptance of the Civil Aviation Department (CAD) at the time when full funding is sought. The Applicant Enterprises would also need to demonstrate that the licensing for RACSFs would be obtained and the RACSFs would be in operation on or before 30 June 2021, subject to the subsequent successful submission of notification of change of RACSF Security Programme to the CAD.
Projects on system development or upgrading would be eligible for funding support under the Pilot Scheme if they are stand-alone projects with separate and well-defined deliverables, the commencement and completion dates of the remaining part of the project can be clearly identified, and the budget for the remaining part can be separately provided and justified. The Management Committee and the Secretariat would assess applications based on individual merits of each application.
Applicant Enterprises should ensure that all procurement for goods and services (including project auditing) are carried out in an open, fair and competitive manner and the appointment of reasonable qualified Service Providers. In general, for every procurement of equipment or other goods or services for the purposes of or in relation to the project, applicant Enterprises should obtain written price quotations with detailed description including breakdown of cost items, project duration, scope of work and deliverables from at least two Service Providers. The procurement contract should be awarded to the Service Provider submitting the lowest conforming price quotation. Notwithstanding to the above, the Applicant Enterprise may award the procurement contract to higher bidder or highest overall scorer based on technical or other project specific considerations. Justifications must be provided to the satisfaction of the Management Committee and the Secretariat under such circumstances.
Notwithstanding the above, Applicant Enterprises may first provide a reasonable estimated budget for project auditing at the time of application and submit the quotations afterwards. Please note that the actual amount of subsidy for project auditing will be determined based on the actual costs incurred by the Applicant Enterprises or the maximum audit fee (HK$10,000) to be counted towards the total project cost, whichever is the lower.
The actual processing time will depend on the number of applications received at the time, completeness and clarity of the information provided, etc. The Secretariat will complete the processing of a valid application and notify the Applicant Enterprise after receipt of a complete application accompanied by all necessary documentation proof and clarification as requested by the Secretariat. Applicant Enterprises are reminded to submit the required documents as detailed in the Guide in a complete manner to the Secretariat. Failure to do so may cause delay in the processing of their applications.
An initial payment of 75% of the approved funding amount is payable to a designated bank account of the Applicant Enterprise after signing of the funding agreement. The final payment will be made to the Applicant Enterprise upon satisfactory project completion and acceptance of the final report by the Management Committee and the Secretariat.
Service providers should be companies registered in Hong Kong under normal circumstances. If the equipment or solution must be sourced directly from overseas service providers under exceptional circumstances (i.e. such equipment or solution not available from service providers in Hong Kong), justifications must be provided to the satisfaction of the Management Committee and the Secretariat and prior approval must be sought.
Only projects with duration over 18 months require the submission of progress report until project completion or the expiry or termination of the relevant funding agreements to the Secretariat. Each progress report should cover the first 12 months and should be submitted within one month after the relevant 12-month period. Progress reports could be exempted for projects for purchased X-ray Machines and ETD equipment, yet submission of final reports and final audited accounts would still be required. Templates of progress and final reports could be downloaded from the website of the Pilot Scheme
An approved project has to be carried out strictly in accordance with the funding agreement. Any modification, amendment or addition to the project or the funding agreement, including but not limited to change of project duration, project scope, budget, implementation plan, deliverables or replacement of the project coordinator, shall require prior written approval by the Secretariat and the Management Committee. Reasons with supporting documents for the changes must be provided by sending an email of change request to the Secretariat ([email protected]). The Secretariat will follow up with the requests accordingly.
Contact details
Pilot Subsidy Scheme for Third-party Logistics Service Providers (TPLSP)
Fill out the form below to contact the Secretariat of the Pilot Subsidy Scheme for Third-party Logistics Service Providers (TPLSP)
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