The program for the development and promotion of crafts for 2023 enables encouragement of the Montenegrin crafts development by providing financial support for the purchase of equipment and tools for the performance of craft activities, as well as the organization's promotional activities and participation in domestic and international fairs and events and creation of promotional material.

The goal of the Program for the Development and Promotion of Crafts for 2023 is to strengthen craft activities and encourage the development of Montenegrin crafts through financial support provided by the Ministry of Economic Development and Tourism (hereinafter referred to as the "Ministry").

The Ministry invites artisans to submit an application for participation in the allocation of funds through the Program for the Development and Promotion of Crafts for 2023 (hereinafter referred to as the "Program").

 

Conditions for participation

The right to participate in the Program is given to artisans who are registered in the Register of Craftsmen at the JU Chamber of Crafts or are registered with the local government body responsible for economic affairs, whose main activity is the performance of a simple or complex craft, in accordance with the Decision on the determination of crafts, activities similar to crafts and the list simple and complex trades ("Official Gazette of Montenegro", no. 63/10) and which are registered in the Central Register of Business Entities in accordance with the Law on Business Companies ("Official Gazette of Montenegro", no. 065/20, 146 /21), by the Regulation on detailed criteria, conditions and method of awarding state aid ("Official Gazette of Montenegro", No. 16/14) and the Law on Accounting ("Official Gazette of the Republic of Montenegro", No. 52/16, 145/ 21) and which:

- They operate 100% in private ownership and are based in the territory of Montenegro;

- They have submitted official financial reports for 2022, within the legally stipulated deadline, or they have been granted an extension of the deadline for submitting financial reports by the Decision of the Revenue and Customs Administration;

- For craftsmen who are not obliged to prepare financial reports, it is necessary that the entrepreneur, who pays taxes and contributions based on actual income or in a lump sum, has submitted the GPPFL form for 2022, that is, the ZPO form for 2023;

-Regularly fulfill obligations to pay taxes and contributions on personal income, corporate income tax and value added tax, i.e. regularly settle reprogrammed tax liabilities, in accordance with the Law on Reprogramming of Tax Claims ("Official Gazette of Montenegro", number 83/16), Decree on the conditions for deferring the collection of tax and non-tax claims ("Official Gazette of Montenegro", number 57/18) and Decree on the conditions for deferring the collection of due tax and non-tax receivables ("Official Gazette of Montenegro", number 27/2020, 50/ 2020, 015/2021);

- For the same activities, they did not use financial aid funds from the state and/or local budget or international institutions/programs and other donors in the last 3 years;

- They are not obliged to return illegally received state aid;

- They are not in the process of bankruptcy or liquidation;

- Whose founder and/or responsible person in the legal entity is not in the criminal record for misdemeanors in the field of economic crime;

- Are not in financial difficulties (in the sense of the General Block Exemption Regulation) in accordance with the rules on granting state aid).

In the event that the company and the founder of the company have a share of more than 20% in the ownership structure of another business entity (related entities), they cannot submit an application for both companies.

 

Financial framework:

The total budget for the implementation of the Program amounts to €175,000.00.

 

Subject of the Program:

The program is intended for co-financing the costs of equipment acquisition and trade promotion through two components, for the following activities: I Procurement of new and/or used equipment (not older than five years) and specialized tools, which are used to create and promote products and/or services for carrying out craft activities; II Promotion of crafts - organization and participation in domestic and international fairs and events, as well as design and production of promotional material.

 

Justified costs and intensity of support:

The program includes financial support that is based on the principle of reimbursement, in such a way that the craftsman finances 100% of all costs until the end of the activity for which he is applying, after which, upon submission of documentation proving the expenditure of funds for the implementation of the activity, the Ministry approves a refund of part expenses.

Approved support can cover up to 70% of justified costs within the first component and up to 50% within the second component of the Program, with an increase in the percentage of support by an additional 10%, according to the level of development of the LGU.

Within the first component, the amount of grants for the purchase of equipment is up to 70% of justified costs, i.e. up to €10,000.00 without VAT per craftsman, for activities related to the value of the equipment.

Within the second component, the amount of grants is up to 50% of justified costs, that is, up to €6,000.00 without VAT per craftsman, for participation in an international fair, and an amount of up to €4,000.00 without VAT can be awarded for participation in a domestic fair.

For artisans operating in local self-government units (LGUs) with a development index of up to 100%[1], support will be applied that respects the regional aspect and the classification of LGUs according to the level of development in such a way that the percentage of grants will be increased by an additional 10% for artisans operating in the following municipalities: Petnjica, Andrijevica, Gusinje, Plav, Rožaje, Tuzi, Berane, Bijelo Polje, Bar, Savnik, Mojkovac, Kolašin, Pljevlja, Plužine, Ulcinj, Žabljak, Cetinje, Nikšić, Danilovgrad) while the maximum allowed amounts will not change . The condition is that in the last six months until the date of publication of the Public Call, there were no changes in the ownership structure, as well as in the change of the address of the Company's headquarters within another LGU, which would provide an increased amount of support.

If the founding structure of the company is owned by a minimum of 50%, women participate or the entrepreneur is a woman, as well as if the artisan is a person under 35 years of age, the intensity of support is increased by an additional 5%, while the maximum allowed amounts will not change.

The maximum amount of approved support per craftsman is €12,000.

Funds from the Program cannot be used for:

-Costs directly related to the production and distribution of products (product manufacturing costs, transportation costs, capital investment costs, administration costs and obligations to third parties, depreciation, interest payments, etc. bank costs, payment commissions, similar costs related to the implementation contracts, payment of commissions, etc.),
-Procurement of passenger, cargo and commercial vehicles,
-Costs of purchasing built-in equipment (air conditioners, fans, alarm systems, etc.),
-The same activities that are already supported by other institutions,
-Sponsorships for participation in work seminars, conferences, congresses,
-Visits to customers in foreign markets,
-Visits to trade fairs without exhibiting.
-Equipment procurement costs (customs and administrative costs, shipping, storage and handling, assembly and installation of equipment, training, etc.) are borne by the craftsman himself and will not be subject to reimbursement by the Ministry.

The program does not cover the following activities: primary agricultural production; production of steel, synthetic fibers and coal mining; shipbuilding; production of coke and refined petroleum products; production and sale of military equipment or services; shop; construction (in the part of construction of ready-made housing and business units); catering establishments that exclusively provide beverage dispensing services; activities of publishing newspapers and other periodicals, activities of production and broadcasting of radio and television programs, activities of news agencies, as well as service activities of marketing and public relations agencies; traffic; car dealerships; production and trade of any products or activities that are considered illegal or harmful to the environment and dangerous to human health; luck games; production of tobacco products; alcoholic beverages (with the exception of the production of wine and fruit brandies); immoral and illegal activities.

 

Documentation obtained ex officio:

The Ministry will ex officio obtain the following evidence:

-Certificate of registration - Central Register of Business Entities;
-Confirmation of paid taxes and contributions or rescheduling of obligations, including the previous month, in relation to the month of submission of documentation for reimbursement of expenses - Revenue and Customs Administration;
-Confirmation that the founder and/or responsible person in the legal entity is not in the criminal record for misdemeanors in the field of economic crime - Ministry of Justice;
-Proof that the craftsman is registered in the Register of Craftsmen at the Chamber of Crafts of the Judiciary or proof that he is registered for the performance of craft activities with the local government body responsible for economic affairs.
-Proof of cumulation of state aid and the award of other subsidies on the same basis.

Submission of applications and required documentation:

Submission of applications and accompanying documentation is done using a digital certificate via an online platform, access link at https://programi.gov.me, along with user instructions on how to submit applications, which can be found on the Ministry's website www.gov.me/mek. In case of technical problems in the operation of the platform for submitting applications and requests for refunds, they will be received through the archives of the Ministry, about which artisans will be informed on the website www.gov.me/mek.

After choosing the Program and the appropriate component/artisan proceed to fill out the electronic forms that form part of the mandatory general documentation for the Program:
-Application form;
-Declaration of the entrepreneur/business company on acceptance of the conditions of the Program;
-Form certifying that he is not in financial difficulties within the meaning of the General Block Exemption Regulation.


The decision on the implementation of activities is made by the craftsman independently, that is, the Ministry has no influence on when the craftsman will start the program activities, and in accordance with the defined deadlines of the Program.

 

When submitting the request, the documentation required for the refund of funds is submitted electronically, which proves that the craftsman carried out the activity of purchasing equipment and/or participating in an international/domestic fair and/or creating promotional material:
-Original or certified photocopy of the bill/invoice/contract from the equipment supplier (customs declaration, etc.),
-Service provider's offer/invoice for the implementation of activities/services with a detailed description and costs (signed and certified),
-Documentary proof of the activity/acquisition of equipment (photographs of equipment/machines/tools in the function of performance of activities/services, confirmation from the trade fair about lease of space, photocopy or photo of stand design, copy of promotional material, etc.),
-Evidence of payment made (Swift, payment statements from the bank account of the entrepreneur/business company, certified by the bank, etc.),
-A copy of the card of deposited signatures,
-Confirmation that the specified giro account (from KPD) is active, issued by a commercial bank.

All relevant information regarding the necessary documentation is detailed in the Program. The Commission reserves the right to reduce the amount of reported costs for reimbursement if the costs are inadequate and do not comply with justified costs and deadlines or the right to reject the application.

 

Time frame of the Program duration:

For the reimbursement of costs within the Program, a request can be submitted for activities that were realized in the period from 01.01.2023. until 30.09. in 2023. As part of the Public Call for the allocation of financial support (equipment purchase/craft promotion), the craftsman can submit one application for one or both components of the Program.

The deadline for submission of applications/requests by artisans is September 30, 2023 until 3:00 p.m., while the deadline for submitting final reports/requests for reimbursement of approved activities is November 1, 2023 until 3:00 p.m.

The Ministry reserves the right to close the Public Call even before the deadline until the total amount of applications reaches the limit of 95% of the total budget of the program, information about which will be published on the Ministry's official website. Applications whose value is in the percentage above 95% of the total value of the request will be on the reserve list, according to the order of submission of applications and will be considered only in the event that one of the selected applicants withdraws/is rejected, and that in the amount remaining in the Program budget. The commission considers the applications in the order in which they are received.

Everything that is not specified in the Public Call will be applied in accordance with the Program.

All information as well as professional assistance can be obtained at the premises of the Ministry or by e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it. and This email address is being protected from spambots. You need JavaScript enabled to view it..

Public call: https://www.gov.me/clanak/javni-poziv-za-ucesce-u-postupku-dodjele-sredstava-kroz-program-za-razvoj-i-promociju-zanatstva-za-2023-godinu