TENTATIVE PROCEDURES OF THE GUANGZHOU ECONOMIC
AND TECHNOLOGICAL DEVELOPMENT ZONE FOR
LAND MANAGEMENT

(Adopted by the Guangzhou Mayor's Work Meeting on
March 6, 1985 and Promulgated for Implementation
by the Municipal People's Government on
April 9, 1985)

 

 

SUBJECT: LAND

ISSUING-DEPT: GUANGDONG PROVINCE

ISSUE-DATE: 03/06/1985

IMPLEMENT-DATE: 04/09/1985

LENGTH: 2311 words

TEXT:

CHAPTER I GENERAL PROVISIONS

[Article 1] These Procedures are formulated in accordance with the pertinent provisions of Article 10 of the "Constitution of the People's Republic of China", Article 5 of the Law of the People's Republic of China on "Chinese-Foreign Joint Ventures", and the "Interim Regulations on the Guangzhou Economic and Technological Development Zone".

[Article 2] When enterprises in the Guangzhou Economic and Technological Development Zone (hereinafter referred to as "development zone"): Chinese-foreign joint ventures, cooperative ventures, enterprises operated independently by investors, enterprises which introduce foreign invested projects and inland-foreign associated enterprises (hereinafter referred to as "development zone enterprises") use land, be it newly requisitioned or on the site of original enterprises, these Procedures are applicable. In absence of any provision in these Procedures, the regulations laid down by the State Council, Guangzhou Province and Guangzhou Municipality concerning urban land management shall be applicable.

Land use fee does not include compensation for land requisition, expenses incurred for houses dismantling and rebuilding and erecting roads, pipelines and public facilities, and expenses incurred in land development.

[Article 3] The Guangzhou Municipal People's Government authorizes the Administrative Committee of the Guangzhou Economic and Technological Development Zone (hereinafter referred to as the "Administrative Committee of the Development Zone") to plan and manage the land in the development zone. The power of approval to the use of the land within development zone belongs to the Administrative Committee of the Development Zone.

[Article 4] Land use fee in the development zone forms part of the special fund for the preservation, management and construction of the development zone. The development zone planning office is authorized by the Administrative Committee of the Development Zone to manage and use the fund.

[Article 5] Any unit or individual in the development zone requiring the use of land shall only do so after approval by the Administrative Committee of the Development Zone. Any unit or individual that has been approved to use land shall only have the right to use the land and shall have no right of ownership.0 Overt and covert sales and purchases of land, as well as the renting out and unauthorized transfer of land, are forbidden. If any person, who has not been granted permission negotiates directly for the use of land with the unit or individual that has been using it, the agreement they have signed shall be entirely null and void.

[Article 6] The overall development plan of the development zone that has been determined must be complied with and carried out by all units and individuals. Without approval, no one may arbitrarily alter the topography of or landforms on the land within the limits of the development zone privately encroach upon the land or construct any type of structure.

CHAPTER II THE MANAGEMENT OF LAND

[Article 7] The relevant department authorized by the Administrative Committee of the Development Zone will take charge of the examination of the investor's investment items and use of land and will report to the Administrative Committee of the Development Zone for approval. After approval, the Development Zone Planning Office shall check and approve the area and the delineation of the land in use, as well as the signing of contract for the use of land (the contract shall include the following terms: the area, location, use, term, fees, the rights and duties of both parties in respect of the land in use and the sanctions for breaching the contract). After going through the procedures for paying the land use fee, a Land Use Certificate shall be issued to the investors.

[Article 8] Within the period prescribed by the Development Zone Planning Office, the unit using land shall produce an overall blueprint for the construction of the project, the construction plan and the plan for putting it into operation, the ground shall be broken for construction as scheduled according to the overall project plan. Otherwise, according to the seriousness of each case, a fine may be imposed or the Land Use Certificate may be withdrawn.

[Article 9] After the unit using land has fulfilled the items for construction as stipulated in the contract and agreement, the project shall undergo final inspection and approval by the competent authorities before it is officially put into operation. The unit using land may not demolish, alter or rebuild any existing structure within the confines of the land in use without the permission of the Development Zone Planning Office.

[Article 10] The units using land shall build structures within the confines of the land they use in accordance with the ratio of space allotted to buildings, and parks and trees greenery stipulated by the Development Zone Planning Office; they may not arbitrarily enlarge or reduce such space.

[Article 11] All structures built by the units using land within the confines of the land they use shall conform to China's construction standards, fire prevention and safety requirements. Any structure that violates these provisions and thus causes an accident shall make compensation for the losses incurred and bear the legal liability.

CHAPTER III THE TERM OF LAND USE AND LEVY OF LAND USE FEE

[Article 12] The terms of land use by the development zone enterprises shall be determined through consultation, based on the amount of the investment in the project they undertake to build and on actual needs. The maximum term shall be:

(1) For industrial use, and for warehousing, transportation and tourist industries use, 30 years;

(2) For commercial use and for service industries use, 20 years;

(3) For commodity residential buildings use, and for educational, scientific and technological, and medical and health use, 50 years.

If an enterprise or undertaking with joint investment wants to continue to operate on the land which it has used for its business operation after the expiry of the term stipulated, it may apply to the competent authorities in the development zone for approval and undergo procedures for renewing the agreement for land use.

[Article 13] The rates for the land use fee shall be determined and classified by the Administrative Committee of the Development Zone based on conditions of the different lines of business (see the appendix). On signing land use contracts, they said Committee is permitted to take into comprehensive consideration the factors concerned, such as the geographical location (e.g. the distance from shopping centres, stations and piers, etc.), the scale of investment and whether it is to requisition land newly land or to utilize the site of an existing enterprise, etc., and the land use fee may be adjusted on the basis of the standard for the land use fee of the development zone within the range of 10%.

[Article 14] Preferential treatment in respect of land use fee:

(1) Projects being introduced into this development zone, which comply with the provisions of Chapter 2 Article 5 or 7 of the "Interim Regulations of the Guangzhou Economic and Technological Development Zone concerning Introduction of Technology", may, upon examination by the pertinent department and approval by the Administrative Committee of the Development Zone enjoy reduction in or exemption from payment of land use fee.

(2) Those, who establish non-profit-making institutions for public welfare in the Development Zone, may be exempt from payment of land use fee.

(3) The newly established enterprises during the capital construction period (capital construction period is two years for industry, one year for others), may, upon approval by the Administrative Committee of the Development Zone, enjoy reduction in or exemption from payment of the land use fee.

[Article 15] The land use fee payable by enterprises which have various business operations within one building, shall be separately and proportionately assessed by the Development Zone Planning Office in accordance with their scope of business operations and design data.

[Article 16] Enterprises using land in development zone are payers of the land use fee:

(1) Where the condition for acquiring shares is land which has been approved for use or the condition for cooperation is land, the Chinese participant will be the payer of land use fee.

(2) When houses are being let to the development zone enterprises as land for use, the leesor will be the payer of land use fee.

(3) If land in the development zone is used by an enterprise with exclusive foreign investment, the enterprise will be the payer of land use fee.

(4) If land in the development zone is used by an inland associated enterprise, the enterprise will be the payer of land use fee.

(5) The payer of land use fee may also be agreed upon and approved by the enterprise.

[Article 17] The rates of the land use fee shall be subject to adjustment by the Administrative Committee of the Development Zone in accordance with changes in particular situations.0 The margin of fluctuation each time shall not exceed 30%.0 The land use fee of the development zone enterprises shall be paid annually.0 If the land has been used for over half a year but less than one year, the fee will be calculated as the fee of half a year.0 If the land has been used for less than half a year, the land use fee will be exempted.0 In the event of price adjustment in the land use fee, the fee shall be paid according to the new standards from the year of adjustment.

Land use fee must be paid in full before 1st October in the year of payment.0 In failing to do so, th collecting unit may collect the fee payable by way of direct account transfer through the bank, and may impose a fine for late payment at 0.5% for each day in arrears (i.e. 0.5% of the amount of overdue payment).

[Article 18] The land area used by development zone enterprises shall be that land area approved and allocated by the Development Zone Planning Office. If any part of the land being used exceeds the approved limit, the exceeded part shaould be vacated and returned, and a fine (up to three or five times of the fee) shall be imposed. If the enterprise arbitrarily changes the nature of land use and in case of gross violation, it may be ordered to cease work, operation and production upon approval by the Administrative Committee of the Development Zone.

[Article 19] All units using land of the development zone shall go through the procedures of payment of land use fee in accordance with the following steps:

(1) Units using newly requisitioned land shall present the decuments of approval for land use issued by the Administrative Committee of the Development Zone and the chart delineating the coordinate location of the requisitioned land, and shall after examination and approval of the Development Zone Planning Office, Pay the land use fee.

(2) Units using land temporarily shall present the temporary land use notice of approval issued by the Administrative Committee of the Development Committee, and upon payment of the land use fee to the Development Zone planning office obtain a temporary land use certificate.

[Article 20] In case of gross economic losses caused by force majeure, gross natural disasters and other special situations, if the unit using land is in fact unable to pay land use fee, it may, upon approval by the Administrative Committee of the Development Zone, postpone or be exempted from the payment of land use fee in the year of payment.

[Article 21] In case of a dispute between the payer of land use fee and the administration authorities of the development zone, the unit using land must first pay the prescribed land use fee before applying to the Administrative Committee of the Development Zone for reconsideration.

CHAPTER IV PUBLIC UTILITIES

[Article 22] The public utilities that units using land undertake to construct within the confines of the land they use, as stipulated in the contract or agreement, shall be built in accordance with the development zone planning.

[Article 23] Units using land shall be responsible for building, within the confines of the land they use, facilities for the supply of electricity and water, drainage, sewers, gas pipes and telecommunications equipment; the units using land shall pay installation and extension fees for their connections with all types of mainlines outside the confines of their land.

[Article 24] The discharge and disposal of waste residue, waste gas and waste water within the confines of the land used by units using land shall conform to the standards for discharge and requirements for disposal stipulated by the People's Republic of China, and they shall be subject to the inspection and supervision of the Guangzhou municipal environmental protection authorities and shall pay disposal fee as required.

[Article 25] These Procedures shall come into force on the date of promulgation.

APPENDIX:

The table of rates of land use fee of the Guangzhou Economic and Technological Development Zone.

The rates of land use fee of the Guangzhou Economic and Technological Development Zone:

Classification	Per Annum Per Square Metre
Land for industrial use, and for
communication and transportation
industries use	2 Yuan
Land for scientific research use	1 Yuan
Land for commercial use, and for
service and warehousing industries use	12 Yuan
Land for tourist industry use	9 Yuan
Land for commodity residential
buildings use	8 Yuan