MEASURES OF THE DALIAN ECONOMIC AND TECHNOLOGICAL
DEVELOPMENT ZONE FOR THE ADMINISTRATION
OF LAND-USE

(Promulgated by the Dalian Municipal People's
Government on October 15, 1984)

 

SUBJECT: ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONES

ISSUING-DEPT: LIAONING PROVINCE

ISSUE-DATE: 10/15/1984

IMPLEMENT-DATE: 10/15/1984

LENGTH: 1994 words

TEXT:

CHAPTER I GENERAL PROVISIONS

[Article 1] These procedures are formulated in accordance with the pertinent laws and decrees of the People's Republic of China.

[Article 2] All the mineral resources, waters, wasteland, arable land, hills and forests and other sea and land resources within the confines of this development zone that have been exploited or are yet to be exploited shall be put under the centralized requisition and management of the Dalian Administrative Committee of the Economic and Technical Development Zone (hereinafter referred to as Administrative Committee) in compliance with the relevant provisions.

[Article 3] The overall development plan of the development zone that has been granted approval must be complied with by all units and individuals.  Without approval, no one may arbitrarily alter the topography of or landforms on the land within the confines of the development zone.

[Article 4] Any unit or individual may use land only after obtaining approval from the Administrative Committee and completing the required procedures.  Land users shall have only the right to the use of land.  The right of ownership resides in the State.  Within the confines of the development zone, overt and covert sales and purchases of land as well as the unauthorized renting out and transfer of land are forbidden; the development, use and destruction of underground and other resources shall not be allowed.

[Article 5] The construction of infrastructure in this development zone shall be undertaken with the investment of the Development Construction Company, and foreign investment may also be absorbed for participation in such establishment.  The arrangement of expenditures and income involved in land development and utilization shall be incorporated by the Development Construction Company into its master plan.

CHAPTER II THE MANAGEMENT OF LAND

[Article 6] Land users that are to set up factories and establish other undertakings with their investment in this development zone, shall fill out land use application forms upon submission of the documents of approval issued by the Administrative Committee, and the contracts, agreements and other relevant data concerning their investment in establishing these undertakings.  After they are granted permission, land shall be allocated to them, land use contracts shall be established, and Land Use Licences and Land Use Certificates shall be issued to them by the planning and construction department of the development zone.  Without permission, any land use contract signed directly with the unit or individual that has been using the land shall be entirely null and void.  All illicit income shall, as prescribed, be confiscated and a fine shall be imposed in accordance with the seriousness of the case.

A land use contract shall specify the location, area, purpose, term, down payment, fee rate, procedures for collecting fees, responsibilities of both parties and penalty clauses in respect to the use of land.

[Article 7] Within six months after the Land Use Certificate becomes effective, the land user shall produce an overall blueprint for the construction of the project, the construction plan and the plan for putting it into operation; and within nine months, ground shall be broken for construction according to the overall project plan.  Otherwise, the Land Use Certificate shall be withdrawn and the funds already paid out shall not be refunded.  The plan for putting the project into operation shall be completed as scheduled.  If it cannot be completed on schedule, the plan can be appropriately postponed only after the land user has submitted relevant documentation and the original approving authorities have examined the case and confirmed that there are proper reasons for delay.  A fine shall be imposed in case of a delay without good reason.

[Article 8] All structures built by land users under contracts shall conform to the construction standards, and the requirements for fire prevention, and safety and environmental protection of the People's Republic of China.  The project shall undergo final inspection and approval by the relevant departments enlisted by the planning and construction department before it is officially put into operation.  Any structure that violates these provisions shall not be allowed to be put into use.  Anyone who puts a structure into use without authorization and thus causes an accident shall make compensation for the loss incurred and bear the legal liability.

[Article 9] Land users shall build structures within the confines of the land they use in accordance with the ratio of space allotted to buildings and parks and greenery stipulated by the planning department; they may not arbitrarily enlarge or reduce such space.

[Article 10] Land users may not demolish, alter, extend or rebuild any existing structure within the confines of the land they use without permission of the planning and construction department of the development zone.

[Article 11] Land users shall, within the confines of the land they use, carry out construction for the purposes stipulated in the contract or agreement, and they may not arbitrarily use the land for other purposes.  The alteration of the purpose of the land in use, if any, is subject to approval and shall go through procedures as stipulated in Article 6 hereof.

[Article 12] If the necessity arises for the land users to alter the confines of the land they use, they shall go through the procedures as stipulated in Article 6 hereof.  Anyone who arbitrarily enlarges the confines of the land they use must vacate and return the enlargement on the required time, and a fine of two to three times the rates stipulated in Articles 14 and 15 hereof shall be imposed on a monthly basis from the day the encroachment begins.

CHAPTER III THE TERM OF LAND USE AND LAND USE FEES

[Article 13] The land use term during which land users are to invest in the establishment of factories and other undertakings shall be determined through consultation based on the nature of the project they undertake to build, the amount of investment involved, and actual needs.  The maximum term shall be: for industrial use, 40 years; for commercial use, catering and service trades, crop planting, animal husbandry, aquaculture, 20 years; for culture, education, scientific research, health, commercial residential buildings, villas and office buildings, 50 years; for tourist industries, 30 years.

If a land user wants to continue to use the land after the expiry of the term stipulated in the contract, the agreement for the land use may be renewed upon the approval of the original approving authorities.

[Article 14] Land use fees and site development fees shall be computed and collected for all land used by land users for the purpose of setting up factories and establishing other undertakings with their investment, whether it is newly requisitioned land or whether the site of an existing enterprise is used.

[Article 15] The rates for the land use fee shall be determined by classification and gradation based on the conditions of different regions, the different lines of business and the term of use.  The annual rates per square metre (in Renminbi) shall be:

Land for use of industry and storage facilities,

First grade: 1.3 yuan

Second grade: 1 yuan

Land for use of commerce, service facilities and building for tourism,

First grade: 15 yuan

Second grade: 13 yuan

Land for commercial residential buildings and office buildings,

First grade: 7 yuan

Second grade: 5 yuan

Land for villas,

First grade: 10 yuan

Second grade: 8 yuan

Land for open-air entertainment, cropgrowing, animal husbandry and and aquaculture,

First grade: 0.4 yuan

Second grade: 0.3 yuan

There shall be no adjustment in the rates within the first five years after the land is put into use.  Thereafter, the rates shall be subject to adjustment once every three years, and the margin of fluctuation shall not exceed 30%.

[Article 16] The rates for the site development fee (including land requisition fee, settlement allowance for dismantling and rebuilding, and the apportioned charges for completing the public utilities that directly serve the enterprises, such as supply of water and electricity, gas, drainage, communications and roads) shall be 165 to 190 yuan (in Renminbi) based on the conditions of different regions and different lines of business.  Payment may be made in full within two years, free of interst; or it may be made in annual instalments in case payment within two years is found difficult.  The maximum terms of annual instalments are: for the enterprises or other undertakings established by various domestic regions or departments, the term shall not be longer than 25 years; for Chinese-foreign joint ventures, Chinese-foreign coopeative enterprises or enterprises wholly owned by investors established by companies, enterprises or individuals from foreign countries or Hongkong and Macao regions the payment of the fees shall be effected 2 years prior to the expiry of their contracts.  In the case of payment by annual instalments that requires a period longer than two years, interest on the development fee shall be charged at the prescribed rate of interest.

[Article 17] Preferential treatment shall be granted within the three years beginning from October 15, 1984, as an encouragement to those who come earlier on to establish productive enterprises with their investment in this development zone.  For the investors of 1985, 1986, and 1987, besides a three-year exemption from the land use fee, the reductions in the site development fee shall be 30%, 20% and 10% respectively.  Those who invest in the construction of infrastructure in the designated regions on their own initiative shall be exempted from the site development fee, and from the land use fee for a period of 15 years.

[Article 18] Those who establish cultural, educational, scientific research, medical and health or public welfare institutions in the development zone may be exempted from the payment of land use fee.

[Article 19] The land use fee shall be computed and collected on an annual basis from the day the Land Use Certificate is obtained.  During this same year, if land is used for a period longer than six months that fall in a single calender year, the fee shall be computed and collected for a period of six months; whereas, if the period is shorter than six months, the fee shall be exempted.  In case price adjustments should occur in the course of the performance of the contract, the fee shall be paid according to the new rates from the year adjustments begin.

CHAPTER IV PUBLIC UTILITIES

[Article 20] Land users shall be responsible for building, at their own expense, within the confines of the land they use, roads, and facilities for the supply of electricity, heating and water, drainage, gas pipes and communications equipment in accordance with the required standards, the land users shall pay installation fees for their connections with all types of mains outside the confines of their land.

[Article 21] The discharge and disposal of residual substances, fumes and waste water within the confines of the land used by land users shall conform to the standards for discharge and requirements for disposal stipulated in the Environmental Protection Law of the People's Republic of China, and they are subject to the inspection and supervision of the environmental protection department and shall pay disposal fees as required.

CHAPTER V SUPPLEMENTARY PROVISIONS

[Article 22] The right to modify and interpret these rules resides in the Dalian Municipal People's Government.

[Article 23] These procedures shall go into effect on the day they are promulgated.