IMPLEMENTATION MEASURES OF NINGBO MUNICIPALITY
FOR THE ADMINISTRATION OF LAND USE FOR
SINO-FOREIGN JOINT EQUITY VENTURES

(Adopted June 15, 1985 by the 14th Session of the
6th Standing Committee of the People's Congress
of Zhejiang Province)

 

 

SUBJECT: LAND

ISSUING-DEPT: ZHEJIANG PROVINCE

ISSUE-DATE: 06/15/1985

IMPLEMENT-DATE: 06/15/1985

LENGTH: 1727 words

TEXT:

CHAPTER I GENERAL PROVISIONS

[Article 1] These Measures are formulated with a view to making rational use of land resources and promoting the development of Sino-foreign joint equity ventures in accordance with the Constitution of the People's Republic of China and The Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment.

[Article 2] The use of land required by Sino-foreign joint equity ventures (hereinafter referred to as joint ventures) within the urban area of Ningbo Municipality shall be handled according to these Measures.

[Article 3] Joint ventures shall only have the right of using the approved land, but not its ownership.  Buying and selling or covert buying and selling of land shall be prohibited.

[Article 4] Construction by or for joint ventures must be subject to the construction plans of the city and of the Economic and Technological Development Zone (hereinafter referred to as Development Zone).  Construction in contravention with the relevant rules and regulations is prohibited and no unauthorised exploitation, utilization or destruction of underground resources and other resources shall be allowed.

CHAPTER II LAND ADMINISTRATION

[Article 5] Ningbo Municipal Real Estate Administrative Bureau (hereinafter referred to as Real Estate Bureau) shall be the administrative body for the land to be used by joint ventures in the Ningbo Municipality.

Construction departments in the Development Zone shall be the administrative body for the land to be used by joint ventures in that area.

[Article 6] Joint ventures which are in need of land for their establishment should submit an application to the land administration organisation.  After examination and approval, the enterprise should sign a land use contract, and receive a Land Use Certificate from the examination and approval authorities.

Stipulated in the land use contract is the following content: land area, location, intended use, duration of the contract, land use fee, method of payment, rights and obligations of both parties and the penalty clauses for breach of contract.

In the case of existing enterprises intending to set up joint ventures with foreigners and to transfer the land originally used by them to the proposed joint ventures, the joint venture enterprises should submit an application to the land administration organisation for a Land Use Certificate.

Land use contracts directly signed with the original land use unit or individual without authorisation are all invalid.

[Article 7] Matters concerning requisition, dismantling and removal, resettlement, and compensation for the land approved to be used by joint venture enterprises shall be handled in a unified way by the land administration organisation or by units delegated by the said authority.

[Article 8] Land users must, within six months after the land use contract enters into force, put forward an overall design of the construction project, and the construction and operation plan.  Initial construction must begin within nine months and follow the overall project design.  Projects that fail to begin construction according to schedule may be allowed an appropriate extension after examination and confirmation by the land administration organisation.  Delay in construction without reasonable grounds may result in the withdrawal of the Land Use Certificate, and the land use fee and land development fee already paid shall not be refunded.

[Article 9] All buildings constructed by joint ventures in accordance with contracts shall be formally put into use only after they are found to have met such requirements and regulations of the State on land administration, environmental protection, water and soil conservation, construction standards and fire prevention, and after being checked and verified by the land administration organisation together with other relevant authorities.  Buildings that do not meet the relevant provisions and requirements shall not be allowed to be put into use.

Any dismantling, reconstruction, expansion, rebuilding or change of the purpose approved of buildings that have been constructed by joint ventures according to contracts shall require approval by the land administration organisation.

CHAPTER III LAND USE FEE AND SITE DEVELOPMENT FEE

[Article 10] The duration of the land use term for joint ventures shall be fixed through consultation according to the nature of the projects, size of the investment, rate of return on the investment and the actual needs.  The longest periods permitted for land use are as follows:

(1) Land for industrial and warehouse use: 30 years;

(2) Land for business, tourism, service trades and office use: 20 years;

(3) Land for residential property development: 50 years;

(4) Land for use by education, science, technology, medical and health institutions: 50 years;

(5) Land for crop planting, the breeding of fish and poultry and animal husbandry: 20 years.

Joint ventures may apply for an extension of the land use period upon its expiration, subject to approval.

[Article 11] Joint ventures shall pay a land use fee and a site development fee for the land used by them, including land newly requisitioned and the sites of the original enterprises.

[Article 12] The levels of the land use fee shall be determined and promulgated by the Ningbo Municipal People's Government according to the uses of the land and the classification of the geographical and environmental conditions.

The land use fee payable by joint venture enterprises may be reduced, subject to approval of the applications of joint ventures by the Ningbo Municipal People's Government (or Administrative Committee of the Development Zone).

The land use fee may be reduced if the land is to be used for establishing public welfare facilities such as for education, culture, science, technology, medical treatment and health, subject to approval by the Ningbo Municipal People's Government.

The land use fee will not be adjusted in the five years beginning from the date of promulgation of these Measures, but adjustments shall be made once every three years thereafter and the range adjustment shall not exceed 30%.

[Article 13] The site development fee includes: compensation for requisition of the land, expenses for dismantling and reallocating original buildings, expenses for resettlement of the people involved, and investments which should be shared by the joint venture for public facilities such as roads outside factories, water mains, pipes and power transmission and telephone lines which also serve the needs of the joint venture enterprises.  The levels of the site development fee shall be determined by the Ningbo Municipal People's Government according to the classification of the different areas and trades concerned.

[Article 14] Joint ventures may pay their site development fee by yearly instalments according to their joint venture duration.

[Article 15] Following approval by the Ningbo Municipal People's Government the site development fee may be reduced for Chinese participants who use their original premises, sites or facilities as investments to establish joint venture enterprises with foreigners.

[Article 16] Joint ventures shall bear the expenses for the laying of any special lines required to service the enterprise's water and electricity supply, drainage, communication and roads.  Their site development fee may be reduced accordingly.

Site development fees may be reduced or waived for those who construct their own infrastructural facilities when setting up enterprises in designated areas.

Site development fees may be reduced or waived for those institutions established for public welfare facilities such as for education, science, technology, culture, medical and health, subject to approval by the Ningbo Municipal People's Government (or the Administrative Committee).

[Article 17] Those who invested and initiated in productive enterprises in the initial stage of the Development Zone need pay only 70%, 80% and 90% of the site development fee respectively in 1985, 1986 and 1987.

[Article 18] Land use fees and site development fees shall be collected by the land administration organisation, deposited in the Construction Bank in a special account and used in a unified way for site development and improvement of the investment environment for joint venture enterprises.  In the event that the site development fee collected is insufficient to meet expenditure, the shortfall may be covered by loans from the Construction Bank, which are to be repaid by the land use fee and site development fee received thereafter.

CHAPTER IV PUBLIC UTILITIES

[Article 19] Joint ventures shall pay for the cost of the roads, water and electricity supply, drainage, pipes and communication facilities built within the confines of the land under lease to the joint ventures, together with the cost for the construction of connecting mains and trunk lines located on land outside the confines of that under lease to joint ventures.

[Article 20] The drainage and disposal of waste residues, waste gas and waste water from the joint ventures shall be arranged in accordance with the drainage standards and disposal requirements stipulated in the Law of the People's Republic of China on Environmental Protection (Provisional) and shall be checked and supervised by the Environmental Protection Authorities.  Violations that result in pollution shall be dealt with in accordance with the law.

CHAPTER V SUPPLEMENTARY PROVISIONS

[Article 21] The level of land use fees and site development fees payable by joint equity ventures established before the promulgation of these Measures may be decided according to the terms agreed upon in the contract signed.

[Article 22] These Measures on land use may also apply to contractual joint ventures and wholly foreign owned enterprises.  Also applicable are joint equity ventures, contractual joint ventures and wholly owned enterprises in which overseas Chinese and compatriots from Hong Kong, Macao and Taiwan are involved.

[Article 23] These Measures shall come into force on the date of promulgation.