The Development Agency of Serbia (hereinafter: the Agency) through the implementation of the multi-year Program of support for companies to enter the supply chains of multinational companies (hereinafter: the Program) aims to increase the capacity of companies for the purpose of inclusion in the international value chains of multinational companies (hereinafter: MNC).
The public call was published on November 25, 2022 and will last for 60 days, i.e. until January 24, 2023. year.
CONDITIONS FOR PARTICIPATION IN THE PROGRAM
The right to participate in the Program and use grants is granted to the Applicant who cumulatively meets 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 companies, no later than January 1, 2019;
2. that the Applicant's capital is not in public ownership;
3. that the Applicant has settled the due obligations on the basis of taxes and contributions;
4. that the Applicant is not in difficulties in accordance with the rules for granting state aid;
5. that the Applicant is not related to the buyer or potential buyer;
6. that 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 regulating business companies;
7. An applicant who is connected to a group that meets the requirements for acquiring MNC status and who 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;
9. that the Applicant's participation in the previous Programs was not ended due to the Applicant's passive behavior, which prevented the previous Program from being implemented;
10. that the previously concluded Grant Agreement with the Applicant was not terminated due to non-fulfillment of contractual obligations.
Special conditions:
Technical capacity:
1. that the Applicant has an implemented ISO 9001 quality system.
Business capacities:
1. that the Applicant performs processing activities as a predominant activity or has production capacities with which it can perform processing activities in: the automotive industry sector - devices and components for the automotive industry (plastics, rubber, machines / equipment) as well as the production of labels/bar codes for the needs of the automotive industry; 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 performs production or has production capacities with which he can perform the production of direct materials or indirect materials for products belonging to value chains in the sense of this Program;
3. that the Applicant has machines and equipment that can be used for serial production of direct materials and indirect materials in terms of this Program.
Personnel capacity:
1. that the Applicant has a minimum of 15 employed persons, on the day of publication of the Public Call, according to CROSO records.
Financial capacities:
1. that in the course of the 2021 business year, the Applicant generated income from the sale of products in the amount of no less than 35,000,000.00 dinars;
2. that the share of the Applicant's income from the sale of products in the Business income from sales (which is considered for the purpose of this Program as the sum of positions AOP 1002 - Income from the sale of goods and AOP 1005 Income from the sale of products and services) is greater than or equal to 50% in 2021;
3. that the value of fixed assets, obtained as the difference between positions AOP 0009 (Real estate, plants and equipment) and AOP 0012 (Investment real estate) of the individual or consolidated balance sheet as of December 31, 2021. year of the Applicant, is not less than 35,000,000.00 dinars;
4. that no previous bankruptcy proceedings have been initiated against the Applicant, no bankruptcy proceedings have been opened, no reorganization proceedings have been initiated or no liquidation proceedings have been initiated.
PURPOSE OF GRANT FUNDS
Grant funds can be allocated for the implementation of intervention measures, which includes support for investment in tangible assets, support for investment in intangible assets, consulting support, as well as support for establishing cooperation with MNC.
The user can exercise the right to one or more intervention measures in accordance with the business needs, provided by the Letter of Recommendation of the MNC/Letter of Recommendation of the MNC Supplier, as well as the points achieved after the completion of the business performance diagnostic procedure.
Investment in tangible assets
Support for investing in tangible assets means the following intervention measures:
1. Purchase and installation of high-performance production and process equipment (including but not limited to industrial robots, production lines, CNC machines, packaging machines and the like) in the function of manufacturing parts and semi-finished products that will be delivered to MNCs or their suppliers, up to three years of age counting from the time of publication of the Public Call;
Refund up to 50% of the total value of justified costs, in an amount that cannot exceed 14,000,000.00 RSD.
2. Purchase of equipment for the incoming control of raw materials, intermediate control of the quality of production in progress and the quality of finished products delivered to MNCs or their suppliers, up to three years of age counting from the time of publication of the Public Call;
Refund up to 50% of the total value of justified costs, in an amount that cannot exceed RSD 12,000,000.
3. Purchase of the necessary specific new tools or accessories in accordance with the request of the MNC that will be in the function of making parts and semi-finished products for that MNC.
Refund up to 40% of the total value of justified costs, in an amount that cannot exceed RSD 5,000,000.00.
4. Purchase and installation of autonomous robots with the ability to learn and cobots, up to three years of age counting from the time of publication of the Public Call and which are necessary to meet the requirements of the MNC or MNC suppliers;
Refund up to 70% of the total value of justified costs, in an amount that cannot exceed RSD 15,000,000.00.
5. Improving spatial capacity, which means the adaptation of existing production halls in order to comply with the specific technological requirements of value chains in the sense of this Program (clean rooms, antistatic floor, etc.) as well as the construction of new halls in accordance with the requirements of specific standards (IATF, VDA 6.3, etc.), and according to the requirements and rules of MNC in the function of establishing commercial cooperation with MNC;
Refund up to 40% of the total value justified expenses, in an amount that cannot exceed RSD 7,000,000.00.
Investment in intangible assets
Support for investment in intangible assets includes the following intervention measures:
1. Certification of the quality system according to the requirements of standards that are specific to business in value chains in the sense of this Program (IATF16949/IRIS/CE-3A/CEN, VDA 6.3 and other individual specific standards in the group of CEN standards), as well as certification of the quality management system (ISO 14001, ISO 50001, ISO 1800, ISO 45001, ISO 27001 and sl.)
Refund up to 50% of the total value of justified expenses, in an amount that cannot exceed RSD 2,500,000.00.
2. 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 exceed RSD 8,000,000.00.
Consulting support
Consulting support means the following intervention measures:
1. For the optimization of production and business processes which are key to fulfilling the requirements of MNC, and in accordance with the expected standards of management of production processes in value chains in the sense of this Program, especially the optimization of existing production lines, the establishment of serial production and the application of quality control;
Refund up to 70% of the total value of justified costs, in an amount that cannot exceed RSD 3,000,000.00.
2. For the introduction or improvement of corporate management, which includes but is not limited to: corporate management, strategic and operational planning, familiarization with the principles of business in international value chains in order to increase the volume of product placement and find new clients;
Refund up to 70% of the total value of justified expenses, in an amount that cannot exceed RSD 2,500,000.00.
3. To include ie. introduction of rules, procedures and reporting related to ESG factors, which may include: environmental protection, workers' rights, health and safety at work, respect for human rights, corporate governance (structures and processes by which companies are directed and controlled) and related to the role, composition and diversity of governing bodies, ethical behavior (e.g. fight against corruption and bribery), risk management, transparency and disclosure (e.g. disclosure of non-financial information);
Refund to 70% of the total value of justified costs, in an amount that cannot exceed RSD 1,500,000.00.
4. For the preparation that precedes the implementation of a field insight into business performance by the MNC or the introduction of a quality system according to the requirements of standards specific to value chains in the sense of this Program (including but not limited to the following standards: IATF16949/IRIS/CE-3A/CEN/VDA 6.3 as well as other individual specific standards according to the special requirements of the MNC);
Refund up to 70% of the total value of justified costs, in an amount that does not may be higher than RSD 2,500,000.00. 5. For the preparation of a business development plan, which includes an analysis of the applicant's production capabilities, market analysis with market proposals, determination of business development goals and ways to achieve the established goals. Reimbursement of up to 70% of the total value of justified expenses, in an amount that cannot exceed 3,000,000.00 RSD.
6. For compliance with the requirements of the green industry, which means the preparation of technical documentation, studies, reports in order to comply with the requirements of the green industry, energy efficiency and to implement decarbonization.
Refund up to 70% of the total value of justified costs, in an amount that cannot exceed RSD 1,500,000.00.
Support for establishing cooperation with MNCs
Under support for establishing cooperation with MNCs means financial support for:
1. expenses of field insight into the business performance of the applicant by the representative of MNK (diagnostics);
Refund up to 80% of the total value of the justified costs, in an amount that cannot exceed RSD 1,500,000.00 per one performed diagnosis.
2. costs of annual listing on reference interactive platforms intended to connect suppliers from targeted sectors;
Refund up to 100% of the total value of justified costs, in an amount that cannot exceed RSD 300,000.00.
3. costs of independent exhibition at an international supplier fair, which includes the costs of renting a space, building a stand, costs of supporting services (electricity and water supply services, internet supply services, mandatory registration fee or registration fee) and sample transportation costs;
Refund up to 50% of the total value of justified costs, in an amount that cannot exceed RSD 2,000,000.00.
4. the costs of paying the insurance premium against general liability 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 Insurance and Reinsurance Companies at 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 the amount that cannot exceed RSD 2,500,000.00.
AVAILABLE FINANCIAL FUNDS
A budget of 200,000,000.00 RSD has been set aside for the implementation of this Program.
Available funds are granted individually to the Users, with refunds as co-financing up to a certain percentage of the amount justified expenses in an amount that cannot exceed RSD 23,000,000.00.
HOW TO APPLY
Applications are submitted electronically, by creating a user account at the link https://priyave.ras.gov.rs/ and verifying the internet address.
Link for application is available until the end of the Public Call, after which more it is not possible to submit an Application.
REQUIRED DOCUMENTATION FOR COMPETITION
Each Applicant is obliged to submit the following documentation with the submitted application on the Agency Portal:
1. Form 2 - Statement of fulfillment of conditions and acceptance of conditions for participation in the Program, which is issued under full material and criminal responsibility;
2. Form 3 - Statement that the Applicant and his legal representatives have not been convicted of economic offenses and criminal offenses against the economy;
3. A copy of the certificate of the competent authority of the tax administration that the Applicant has settled all due obligations on the basis of taxes and contributions, not older than one month from the date of publication of the Public Invitation;
4. A copy of the ISO 9001 quality system certificate issued by a certification body accredited by ATS;
5. A statement that the Applicant does not meet the requirements for acquiring MNC status and that the Applicant is not connected to a business that meets the requirements for MNC status 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 that meets the conditions for MNC status and whose participation results in the introduction of an innovative product;
6. MNC's statement on the fact that the subject of the Applicant's project, which is related to MNC, in terms of the Law on Business Companies, is an innovative product;
7. A statement on the course of the production and distribution process within the group, on the basis of which it is possible to determine which member of the group performs production and which distributes finished products, if the applicant is the parent company or a subsidiary within the group;
8. Statement on the existence of the obligation to implement financial consolidation or exemption from the obligation to implement financial consolidation, if the Applicant is a parent company or a subsidiary within the group;
9. Connection scheme within the group, if the Applicant is a parent company or a subsidiary within the group.
Additional documentation that is not a mandatory condition for participation in the Program
1. Documentation to be submitted in order to exercise the right to a higher number of points during the evaluation and ranking procedure of the permitted Application:
• Signed and duly completed Letter of Recommendation of the MNC and/or Supplier of the MNC, on the form prescribed by the Agency. Along with these letters, evidence of an active commercial relationship with the MNC is also submitted, in the case of a Letter of Recommendation from the MNC supplier (certificate or statement from the MNC in the prescribed format or a valid, active contract confirming the nature of the commercial relationship);
• A copy of the industry-specific standards issued by the IAF MLA member for external audits, i.e. by the appropriate institution;
2. Documentation submitted for the purpose of additional regulation of rights and obligations with the Agency:
• Agreement on confidentiality of information signed with the electronic signature of the legal representative of the Applicant.
3. Documentation to be submitted in order to exercise the right to grant grants for the implementation of conditional intervention measures
The applicant is obliged to submit a duly filled Letter of Recommendation of the MNC or Letter of Recommendation of the MNC Supplier, in order to exercise the right to the grant of grants for the implementation of the following conditional intervention measures:
• Purchase and installation of high-performance production and process equipment;
• Purchase of input control equipment raw materials, interphase control of the quality of production in progress and the quality of finished products;
• Purchase of necessary specific new tools or accessories;
• Purchase and installation of autonomous robots with the ability to learn and cobots;
• Improvement of spatial capacity;
• Development and implementation of software solutions;
• Costs of payment of insurance premiums against general liability for damage, i.e. liability insurance from activities for the damage caused to third parties and/or product liability insurance and/or product recall insurance.
Note: Letter of recommendation from the MNC or Letter of recommendation from the MNC Supplier, the Applicant may submit subsequently, after the date of submission of the Application, and no later than the moment of completion of the business performance diagnostic procedure, but only for the purpose of exercising the right to the approval of conditional intervention measures.
FOLLOW-UP DOCUMENTATION:
1. 2. Form 1 - Application for participation in the Program, which was created within the Agency's Portal;
4. Form 3 - MNK recommendation letter;
5. Form 4 - Letter of recommendation from MNK Supplier;
6. Form 5 - Declaration of MNK on the status of an active supplier;
7. Form 6 - Improvement plan;
8. Form 7 - Calculation of approved grant amounts;
9. Form 10 - Request for payment of approved grants;
12. Registration instructions;
13. Instructions for attaching documentation;
15. Instructions for verification of approved intervention measures;
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