Chongqing - on March 5, China-Italy Chamber of Commerce invited Guido Bilancini, Consul General of Italy in Chongqing, and other experts from different business fields to its 3rd webinar during COVID-19 epidemic for the newly updated resolution for Foreign Companies' resumption of work. This time, the webinar meeting addressed the topics related to the resumption of work permits for companies, the tax issues and logistics in the epidemic, and the donation concerns.

First of all, Guido Bilancini, Consul General of Italy in Chongqing, gave a welcome speech to all guests presenting on the webinar.

Resumption of Work

Shane Farrelly, a Legal Advisor as the 1st guest speaker, gave suggestions on the application for the resumption of work (resumption report form and a letter of commitment for epidemic prevention and control). He suggested all companies shall appoint the responsible person and present a commitment letter (strictly implementing the 5 Musts in prevention and control) during the epidemic period. Mr. Farrelly also indicated the Quarantine measures in Chongqing, according to the operation manual for prevention and control of the epidemic when returning to work after holidays in Chongqing, the companies need to ensure the following actions were taken:

1. Comprehensively check the health status and activity tracking of the unit`s personnel
2. Those who are still in the critical epidemic areas shall abide by the epidemic prevention
3. In case of returning to Chongqing, or confirmed cases within the residential areas The personnel should stay at home or in medical observation isolation for 14 days 

Measures for the resumption of work:

1. Masks, thermo detector, disinfectant, especially for manufacturing companies.
2. Establishment of the separate quarantine room
3. Education on epidemic control & tighten management, group meals are not allowed

Tax Incentive Policies

Edward Sheehan, Corporate Advisor of RsA Tax Advisory, introduced the tax policies related to the temporary reduction and exemption of social insurance contributions. 

Enterprises can reduce or be exempted from the payment of the social contributions related to pension insurance,

unemployment insurance and work-injury insurance according to the following:

→Micro, small and medium enterprises may be exempted from the payment of three social insurance contributions for a

period not exceeding five months, from February to June 2020;

→Large enterprises may halve the payment of three social insurance contributions for a period not exceeding three

months, from February to April 2020;

→All the enterprises in Hubei Province may be exempted from the payment of three social insurance contributions for a period not exceeding five months, from February to June 2020.

Enterprises are still required to fulfill their withholding obligations and deduct the employee’s part of the social contributions following the law. Enterprises that are greatly affected by the epidemic situation may apply to defer the payment of the social insurance contributions for a maximum period of six months without being charged with late payment penalties.

The measure will cut pension, employments and work-injury insurance contributions by at least 500 billion RMB (Mr. You Jun, Vice Minister of Human Resources and Social Security)

Announcement no. 11 (2020) on the “Temporary reduction and exemption of corporate social insurance premiums” jointly issued by the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Administration of Taxation on February 20, 2020.

Logistics: Air Cargo & Sea Cargo Impact

Mario Tasso, the Global Account Manager of JAS China, present the logistics impacts, including air and sea cargo. There is a daily cargo capacity reductions minus 75,000 tons in mid of Feb. 2020. “almost half of the planned sailings on the route from Asia to North Europe have been canceled over the last four weeks. A parallel drama is unfolding on routes from the Pacific Rim to the US and Latin America.” Lars Jensen from SeaIntelligence in Copenhagen said the loss of traffic is running at 300,000 containers a week. “This will cause a logistical crunch in Europe in early March even if the epidemic is brought under control quickly.”

World Chilli Alliance: We are with China, and You?

Gianluca Luisi, a loyal friend of Chongqing, the person in charge of the World Chilli Alliance (WCA), has an initiative of the fund-raising campaign: We are with China, and You? This charity initiative formally launched on February 5, 2020, by the World Chilli Alliance and is aimed at creating and strengthening support systems for the Chinese communities most affected by the health crisis caused by the spread of the COVID-19. And it received a total amount of 20,616.37€ and Medical supplies collected and shipped to China.

Cases Study

Carlo Nizia, Secretary Supervisor of the board of directors, Sofima Automotive Filter Chongqing Company Ltd., made his speech as a case study. He indicated the details and type of requirements are different when Chongqing compared with other cities, whereas Chongqing increased the level of responding to the epidemic. As a manufacturing factory-like Sofima, the individual worker needs to be approved to bring difficulties to the resumption of full production. However, the government of Liangjiang New Area speeds up for the approvals, and the cooperation is dedicated. In addition, CICC and the Italy Consulate General in Chongqing helped a lot in the jungle of the new requirements.