China News Agency, Beijing, July 14th: Premier Li Keqiang of the State Council of China has recently signed the State Council Order, promulgating the “Regulations on Guaranteeing the Payment of SMEs’ Payments” (hereinafter referred to as the “Regulations”), which will take effect on September 1, 2020.
The "Regulations" closely regulate the protection of the legal rights and interests of small and medium-sized enterprises, strengthen the honesty and trustworthiness of government agencies and large-scale enterprises, and optimize the business environment to effectively enhance the sense of acquisition of small and medium-sized enterprises. The "Regulations" adhere to the problem-oriented, aiming at the outstanding issues that the society pays close attention to and reflects strongly. It not only fully considers the actual situation of SMEs, but also respects market subject autonomy and contract freedom. It has established a market subject self-discipline, government supervision by law, and social cooperative supervision. Laws and regulations to prevent and resolve payments owed to SMEs.
The "Regulations" has a total of 29 articles, mainly including three aspects.
One is to standardize contract conclusions and capital guarantees, and strengthen the governance of the source of account payments. The "Regulations" stipulates that organs, institutions and large-scale enterprises shall not require SMEs to accept unreasonable payment terms, methods, conditions and liability for breach of contract, and shall not default on payment of goods, projects and services owed to SMEs. At the same time, strengthen financial financial security constraints. Governments and institutions using financial funds to purchase goods, projects, and services from small and medium-sized enterprises should strictly follow the approved budget. Procurement must not be carried out without budget or over budget. The funds required for government investment projects should be in accordance with Relevant state regulations ensure that they are in place, and construction units are not allowed to advance construction.
The second is to standardize payment behavior and prevent arrears in accounts. The "Regulations" set forth requirements for payment deadlines and inspection and acceptance. It is clearly forbidden for government agencies, institutions and large enterprises to extend the payment period in disguise. Regulated the collection and settlement of margin. Make it clear that government agencies, institutions and large enterprises should pay overdue interest when they delay payment of small and medium-sized enterprises, and take necessary restrictions on government agencies and institutions in terms of official consumption, office space and funding arrangements.
The third is to strengthen credit supervision and service guarantee. Clearly establish a payment information disclosure system, complaint handling and disciplinary punishment system, and a supervision and evaluation mechanism to safeguard the legitimate rights and interests of SMEs and create a good business environment. (Finish)