(Effective Date:1996.07.01–Ineffective Date:)
Article 1 Objectives and Basis These procedures are formulated with a view to improving the administration of the land use by FFEs and paid land use system of the Article 2 Scope of Application These procedures shall apply to all FFEs which use State-owned or collectively-owned land in Shanghai municipality except those which Article 3 Administrative Departments The Shanghai Municipal Real Estate and Land Administration (hereinafter referred to as SMURELA) is the competent department for the The Pudong New Area and district and county land administrative departments are in charge of the actual administrative work with regard Article 4 Form of Land Use In addition to land use rights obtained from the way of transfer according to law, FFEs may also obtain the land use right through (1) Land use rights allocated by people’s government at or above the county level for the use of requisited collectively or State (2) The Chinese partner of a Sino-overseas joint equity venture put in its use right of the collectively or the State owned land as (3) The Chinese partner of a Sino-overseas joint contractual venture uses its State- or collectively-owned land use right as a condition (4) Use rights of lands annexed to the houses acquired by FFEs from original State- or collectively-owned through sale or other means (5) Land use rights obtained through other ways as stipulated by laws and regulations. FFEs may use the land through leasing the real estate or the site on the land. Article 5 Restrictions on Use of Collectively-Owned Land In one of the following cases collectively-owned land shall be requisited according to the relevant stipulations on the administration (1) In establishing Sino-overseas joint equity or contractual ventures with overseas counterparts, the rural collective economic entities (2) When FFEs obtain the ownership of a real estate through sale or other means of transfer and then acquire the right of using the Shares of rural collective economic entities in Sino-overseas joint equity or contractual ventures through the putting in by the entities Article 6 Appraisal of Prices of the Land Use Right In one of the following cases, prices of the land use right should be appraised by qualified real estate appraising agencies: (1) When the Chinese partner of a Sino-overseas joint equity venture puts in its right of using the State- and collectively-owned (2) When the Chinese partner of a Sino-overseas contractual joint venture uses the right of using the State-owned and collectively-owned Article 7 Land Use Application and Approval Except leasing of houses or sites for the use of State- or collectively- owned land in Shanghai by FFEs, the overseas investors, or Upon approval after examinations, the people’s government at or above the county level shall issue a certificate of approval for construction Article 8 Appraisal of Land Use Fee After an approval to the use of land, the FFE concerned should handle the registration of the land use right with the real estate (1) handle the formalities with SMURELA when using the State-owned land and with the Pudong New Area Land Administrative Department (2) handle the formalities with local county, district or the Pudong New Area land administrative departments when using the collectively-owned In the cases of leasing real estates or sites, FFEs should get registered for record with the real estate registration agencies upon Article 9 Payers of the Land Use Fee The approved FFEs should pay the land use fee to the land administrative departments through which they have performed the appraisals Article 10 The Beginning Date for Paying the Land Use Fee Beginning dates for paying the land use fee are set as the following: (1) The approved FFEs should begin to pay the fee from the date of obtaining the business licenses as the enterprise legal persons; (2) FFEs which lease real estate or sites should begin to pay the fee from the date when the leasing contracts go into effect. For the first year, a FFE may be exempted from paying the land use fee if its use time in that year is less than six months and pay Article 11 Deadlines for Paying the Land Use Fee Land use fees should be paid in two installments every year: (1) The first installment should be paid before June 30; and (2) The second installment should be paid before December 31. Article 12 Rates of Land Use Fees Rates of land use fees should be decided in categories and grades on the basis of the nature of the planned use and geographical and The rates shall be set and adjusted by the SMURELA and city pricing and financial departments according to the actual situations and Readjustments of the rates should be made at most once every three years and the one time readjustment should not be greater than Article 13 Scope of the Application of the Rates FFEs may pay the land use fee at the rates of first year in a period of five years beginning from the first year and, beginning from In one of the following cases, FFEs may pay the land use fee at rates set for the first year during the entire term of operation. (1) The Chinese partner of a Sino-overseas joint equity venture pays its share of capital with its right of using the State- or the (2) The Chinese partner of a Sino-overseas joint contractual venture uses its right of using the State- or collectively-owned land Article 14 Land Use Fees for Two Categories of Businesses Export-oriented and advance technology businesses outside the downtown areas of Shanghai (hereinafter referred as two categories of The two categories of businesses shall make up for the land use fee for the year according to the rates set for ordinary FFEs should The area of Shanghai’s downtown shall be decided by the SMURELA and the city planning administrative department and be reported to Article 15 Delayed, Reduced and Exempted Payments of Land Use Fees FFEs approved by land administrative departments as stipulated in Article 8 of these procedures may pay 50% of the due land use fee In one of the following cases, FFEs may make delayed, reduced or exempted payment of their land use fees: (1) because of difficulties to pay the land use fee caused by force majeure upon approvals by land administrative departments and (2) because of land used for urban infrastructure construction upon approvals by the Municipal People’s Government; and (3) other cases as stipulated by the Municipal People’s Government. Article 16 Conditions for Land Use When approved to use land, the FFE concerned should abide by laws and regulations governing land administration, and are not allowed Article 17 Changes of Land Use FFEs should report to the original approving planning department and land administrative department for approval when there is the When changes of leased real estate, in area and use or other kind, during the operational term, the FFE concerned should report to Article 18 Termination of Land Use Upon the expiration of the business term or other reasons to terminate the use of land, the FFE concerned should cancell the registration Article 19 Uses of Land Use Fees The land administrative department shall hand over the land use fees it takes in to the financial department of the same administrative Article 20 Penalties on Illegal Land Use FFEs shall be punished by the land administrative department in line with the relevant regulations on the construction use of land FFEs shall be penalized by the land planning department in line with relevant laws and regulations for its change of the planning Article 21 Handling of Cases of Overdue Delayed Payment of Land Use Fees Payers of the land use fee shall be ordered to make payments in a given period of time by the land administrative department if they Article 22 Reconsideration and Lawsuits Persons concerned who disagree to the actions of the land administrative department or the land planning department may apply for Departments which take the actions may also apply to the people’s court to force the execution of the action in accordance with the Article 23 Reference Applications of the Procedures These procedures can also apply to the following businesses which use the State- or collectively-owned land within the city: (1) businesses established by investors from Hong Kong, Macao and Taiwan regions; and (2) limited-liability companies applying laws and regulations governing FFEs. Article 24 Meaning of the Land Use Fee The land use fee as referred to in these procedures does not include expenses for the resettlement of the people having to remove Article 25 Department Responsible for Interpretation of the Procedures The SMURELA is enpost_titled to interpret these procedures with regard to their actual implementation. Article 26 Promulgation Date and Nullification These procedures go into effect as of July 1, 1996, and the “Administrative Procedures of the Shanghai Municipality on the Land Use
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