Public call for participation in the Support Program for companies to enter the supply chains of multinational companies in 2021

The Development Agency of Serbia (hereinafter: the Agency) through the implementation of a multi-year program of support for companies to enter the supply chains of multinational companies (hereinafter: the Program) aims to support companies in production activities to meet the requirements to become suppliers of multinational companies (hereinafter: MNC) through the improvement of their business performance.

CONDITIONS FOR PARTICIPATION IN THE PROGRAM

The right to participation in the Program and use of grants is available to the Applicant who cumulatively fulfills the following general and special conditions:

General conditions:

1. that the Applicant is registered in the APR, i.e. entered in the appropriate register of business companies, no later than January 1, 2018;
2. that the Applicant's capital is not in public ownership;
3. that The applicant settled the due tax obligations and contributions;
4. yes the Applicant is not in difficulties in accordance with the rules for granting state aid;
5. yes the Applicant is not connected to a buyer or potential buyer;
6. yes the Applicant does not meet the requirements for acquiring MNC status or is not connected to a group that meets the requirements for acquiring MNC status, in the sense of the law governing companies;
7. The applicant is connected to a group that meets the requirements for acquiring MNC status and is connected to a customer or potential customer that meets the requirements for acquiring MNC status can participate in the Program if the effect of participation results in the introduction of an innovative product;
8. that the Applicant did not unjustifiably withdraw from participation in previous Programs.

Special conditions:

Technical capacity:

1. yes The applicant has an implemented ISO 9001 quality system.

Business capacity:

1. yes The applicant mainly performs processing activities in the sector of the automotive industry - devices and components for the automotive industry (plastics, tires, machines / equipment); the sector of machinery and equipment for other purposes; metal processing sector; rubber and plastic sector; the sector of production of household appliances and parts of household appliances; sector of electrical and electronic systems and elements of electrical and electronic systems;
2. that the Applicant's products belong to the group of direct/indirect materials that are in the value chain of industrial sectors from point 1. Business capacity and that the Applicant has machines and equipment that can be used for serial production of direct/indirect materials that are in the value chain of industrial sectors from that point.

Personnel capacity:

1. yes, the Applicant has a minimum of 15 employed persons, as of August 27, 2021, according to CROSO records.

Financial capacity:

1. yes, during the 2019 or 2020 business year, the Applicant achieved business income from the sale of finished products and services (from which the income from the sale of goods is excluded) generated by the performance of activities from the production sectors that are the subject of this Program's support, on the domestic and/or foreign market, in the amount of not less than RSD 35,000,000.00;
2. that the value of the fixed assets shown within the positions of AOP 0010 (Property, plant and equipment) of the individual or consolidated balance sheet, in the 2019 or 2020 business year of the Applicant, is not less than 35,000,000.00 RSD dinars;
3. that no previous bankruptcy proceedings, bankruptcy proceedings, reorganization proceedings or liquidation proceedings have been initiated against the Applicant.

PURPOSE OF GRANT FUNDS

The program co-finances the activities of the Users related to the improvement of business performance that are in accordance with the needs of establishing cooperation or the recommendations of the MNC. Grants approved in accordance with the Program can be awarded in connection with the implementation of project activities, i.e. intervention measures related to investment in tangible assets and/or consulting support.

Investment in tangible assets

Investment in tangible assets is understood to mean:

1. Purchase and installation of necessary industrial robots in the function of making parts and semi-finished products that will be delivered to MNCs or their suppliers, up to three years of age;

Refund up to 40% of the total value of justified costs, in an amount that cannot exceed RSD 12,000,000.00.

This measure of intervention also includes all necessary work on the existing production hall in order to train and put into operation the necessary industrial robot;

1. Purchase of equipment for automation and improvement of existing production processes (production lines, CNC machines, packaging machines, etc.) that are used to make parts or semi-finished products for MNCs or their suppliers, up to three years old;

Refund up to 40% of the total value of justified costs, in an amount that cannot exceed 12,000,000.00 RSD.

This measure of intervention also includes all necessary work on the existing production hall for training and commissioning of equipment for automation and improvement of existing production processes;

1. Development and implementation of software solutions in order to optimize existing production processes;

Refund up to 50% of the total value of justified costs, in an amount that cannot be higher of 8,000,000.00 RSD.

1. Purchase of equipment for intermediate quality control and the quality of finished products delivered to MNCs or their suppliers, up to three years of age;

Refund up to 50% of the total value of justified costs, in an amount that cannot exceed RSD 12,000,000.00.

Under this measure interventions include all necessary work on the existing production hall for training and putting into operation equipment for interphase quality control and the quality of finished products.

1. Purchase of necessary specific tools or accessories in accordance with the request of the MNC which will be used to make parts and semi-finished products for that MNC.

Refund up to 40% of the total value of justified costs, in an amount that cannot be higher 5,000,000.00 RSD.

1. Purchase and installation of autonomous robots with the ability to learn and cobots, up to 3 years old and which are necessary to meet the requirements of MNK or MNK suppliers;

Refund up to 70% of the total value of justified costs, in an amount that cannot exceed 15,000,000.00 RSD;

1. Adaptation of existing production halls in order to comply with the specific technological requirements of the industrial sectors to which the MNC and/or the Applicant belongs (clean rooms, antistatic floor, etc.), and in accordance with the requirements and rules of the MNC or in order to establish cooperation with the MNC;

Refund up to 50% of the total value of justified costs, in an amount that cannot be greater than 8,000,000.00 RSD.

Consulting support

Consulting support means support:

1. for the optimization of production processes which are key to meeting MNC requirements, and in accordance with the expected standards of production process management in the target sectors, especially optimization existing production lines, the establishment of serial production and the implementation of quality control;

Refund up to 70% of the total value of justified costs, in an amount that cannot exceed 5,000,000.00 RSD;

1. for the introduction or improvement of corporate management, which includes: strategic and operational planning, human resources management, marketing activities aimed at increasing the volume of product placement and finding new clients;

Refund up to 70% of the total value of the justified costs, in an amount that cannot exceed RSD 2,500,000.00;

1. for the introduction and certification of the quality system according to the requirements of standards that are specific to the industrial branches in which the Applicant or MNC operates (IATF16949/IRIS/CE-3A/CEN and other individual specific standards in group of CEN standards), as well as for the implementation and certification of the quality management system ISO 14001, ISO 50001, ISO 18001;

Refund up to 50% of the total value of justified costs, in an amount that cannot exceed RSD 2,500,000.00.

Support for establishing cooperation with MNC

Under the support of establishing cooperation with MNC means financial support for:

1. costs of field insight into business performance of the applicant by MNK representatives (diagnostics);

Refund up to 80% of the total value of justified costs, in an amount that cannot exceed RSD 1,500,000.00 per diagnostic carried out.

Diagnostic costs that can be subject to financing refer to:

• costs of diagnostics that are carried out to determine the business performance of the Applicant for potential cooperation with MNC;
• costs of diagnostics that are carried out to determine the business performance of the Applicant when introducing a new product into its production process.

Justified costs of diagnostics include only the costs of working hours of engaged personnel. Funds cannot be used for travel and accommodation expenses incurred during diagnostics.

The applicant can submit an application simultaneously for a maximum of 3 diagnostics, but they must be carried out by representatives of different MNCs.

1. costs of annual listing on interactive platforms intended to connect suppliers from targeted sectors,

Refund in the amount of up to 100% of the total value of justified costs, in an amount that cannot exceed RSD 300,000.00.

Listing costs that may be subject to financing include the costs of an annual subscription to interactive platforms, which enables full access to the selected platform with the possibility of viewing the entire content, i.e., viewing the demand and listing the Applicant's product program as a bidder.

Funds cannot be be used for the cost of working hours spent to identify the most optimal interactive platform.

The applicant can submit an application simultaneously for annual listing on 3 different platforms.

1. the costs of paying the premium for general liability insurance for damage, i.e. business liability insurance for damage caused to third parties and/or product liability insurance and/or product recall insurance, with insurance companies that are in the register of joint-stock companies for insurance and reinsurance at To the National Bank of Serbia, in accordance with the requirements of the MNC with which the first cooperation was established.

Refund up to 100% of the total value of justified costs, in an amount that cannot exceed RSD 2,500,000.00.

AVAILABLE FINANCIAL FUNDS

For the implementation of the Public Call in 2021 a budget in the amount of RSD 230,000,000.00 has been determined.

Available funds are granted individually to the Beneficiaries, by refunding as co-financing up to a certain percentage of the amount of justified costs.

The funds are allocated to the selected Beneficiary in accordance with the provisions of the Regulation as state aid of low value (de minimis state aid). In accordance with Article 4 of the Regulation, the amount of de minimis state aid awarded to the Beneficiary may not exceed 23,000,000.00 dinars in any period during three consecutive fiscal years. will last 60 days, i.e. until October 26, 2021.

Applications are submitted electronically, by creating a user account at the link https://prijave.ras.gov.rs/ and verifying the internet address.

Creating a user account opens a page for entering data, as well as for entering supporting documentation, all within Form 1- Application for participation in the Program. After entering the data and completing the documentation, the user of the account confirms that the application is complete, which means that the application is received electronically. Each Applicant receives a notification of receipt of the application, the institutional number of the application and the Agreement on Confidentiality of Information. Each Applicant can submit one application.

The application link is available until the end of the Public Call, after which it is no longer possible to submit an application.

REQUIRED DOCUMENTATION FOR COMPETITION

Each Applicant is obliged to enter the following documentation along with the submitted application on the Agency Portal:

1. Form 2 - Declaration on the fulfillment of the conditions of the Program, on the granted state aid de minimis acceptance of the conditions for participation in the program, which was issued under full material and criminal responsibility;
2. Declaration that the Applicant and his responsible persons have not been convicted of economic crimes, as well as that the members of the Applicant and responsible persons within the Applicant have not been convicted of criminal offenses against the economy;
3. Copy of certificate of the competent authority of the tax administration that the Applicant has settled all due obligations on the basis of taxes and contributions, no older than one month from the date of publication of the Public Call;
4. Copy of the ISO 9001 quality system certificate issued by a certification body accredited by the ATS;
5. A statement that the Applicant does not meet the requirements for acquiring MNC status and that the Applicant is not affiliated with a business that meets the requirements for acquiring the status MNC made in free form, except for Applicants who are connected to a group that meets the requirements for MNC status and who are connected to a customer or potential customer who meets the conditions for MNC status and whose effect of participation results in the introduction of an innovative product;
6. Signed and duly completed Letter of recommendation of the MNC, or MNC supplier, on the prescribed form by the Agency, provided that the Applicant applies for intervention measures: purchase of automation equipment and improvement of existing production processes and adaptation of existing production processes hall;
7. Statement of the MNC on the fact that the subject of the Applicant's project, which is related to the MNC, is an innovative product in terms of the Law on Business Companies;
8. A statement on the flow of the production and distribution process within the group, on the basis of which it is possible to determine which member of the group carries out production and which distributes finished products, if the Applicant is the parent company or a subsidiary within the group;
9. Statement on the existence of the obligation to carry out financial consolidation or exemption from the obligation to carry out financial consolidation, if the Applicant is a parent company or a subsidiary within the group;
10. A scheme of connections within the group, if the Applicant is a parent company or a subsidiary within the group.

Applicants applying for a project that introduces an innovative product to the market of the Republic of Serbia are not obliged to submit a statement in accordance with point 4.1.1. subpoint 6. Instructions for the implementation of the Support Program for companies to enter MNC supplier chains in 2021.

The applicant may also enter the following documentation with the Application:

1. Signed and duly completed Letter of Recommendation of the MNC, or MNC supplier, on the prescribed form by the Agency;
2. Evidence of an active commercial relationship with the MNC, in case of submission of a letter of recommendation from the MNC supplier (certificate or declaration by the MNC in the prescribed format or a valid, active contract confirming the nature of the commercial relationship);
3. Copy of industry-specific standards issued by the IAF MLA member for external audits, i.e. by the appropriate institution;
4. Agreement on confidentiality of information signed with the electronic signature of the Applicant's legal representative.

The agency may, before enactment Decisions on the selection of Participants in the Program, to request the Applicant to submit a copy of the necessary evidence of the fulfillment of the conditions, as well as to request for inspection the original or a certified copy of all or some of the evidence, with an indication of the deadline by which it is necessary to submit the requested documentation.

The Agency reserves the right to ask the Applicant to submit additional documentation, clarifications or a meeting via the Internet, with an indication of the deadline by which it is necessary to submit the requested documentation, and in order to determined with certainty that it fulfills all the requirements of the Program.

If the applicant does not submit the required evidence within the specified period or does not answer the submitted questions and clarifications, or otherwise does not act in accordance with the Agency's requirements, it will be considered that he does not meet the condition for which the evidence, answer or clarification to the question was requested.

The applicant is obliged to notify the Agency without delay if circumstances arise that may affect the fulfillment of the written request conditions for participation in the Program. This obligation of the Applicant exists as long as his Application is not rejected, i.e. throughout the duration of the participation in the Program and the eventual conclusion of the Grant Agreement.

If the Agency subsequently learns that the Participant or Beneficiary did not meet the conditions for participation in the Program even at the time of the decision on the selection of the Participant, the Agency is authorized to reject the Participant's participation in the Program by a special decision, as well as to unilaterally terminate the Grant Agreement concluded with the Beneficiary, as well as to demand the return of the paid grant funds, together with legal default interest, starting from the day the funds are disbursed.

ACCOMPANYING DOCUMENTATION:

1. Text of public invitation
2. Instructions on the implementation of the Support Program for companies to enter the supply chains of multinational companies in 2021
3. Form 1 - Application for participation in the Program, which was created within the Agency Portal;
4. Form 2 - Statement on the fulfillment of the conditions of the Program, on the granted state aid de minimis and on acceptance of the conditions for participation in the Program;
5. Form 3 - Letter of recommendation MNK;
6. Form 4 - Supplier recommendation letter MNK;
7. Form 5 - Declaration of MNK on the status of an active supplier;
8. Form 6 - Improvement plan;
9. Form 7 - Calculation of approved amounts grants;
10. Form 8 - Self-improvement plan
11. Form 9 - Calculation of grant amounts in the self-improvement phase
12. Form 10 - Request for payment of approved grants;
13. Form 11 - User's six-month report, which is created within the Agency Portal;
14. Form 12 - User's annual report, which is created within the Agency Portal;
15. Instructions for application;
16. Instructions for attaching documentation;
17. Instructions for conducting business performance diagnostics of Participants in the Support Program for Businesses to enter the supplier chains of multinational companies;
18. Instructions for verification.