Laws of the People's Republic of China

   Article 1 (Purpose and Basis)

The present Procedures are formulated in accordance with the "Regulations on the Administration of Urban Houses' Demolition and Relocation" and in the light of the actual conditions in Shanghai, for the purposes of strengthening the administration of demolition, relocation and resettlement of the house used by self-employed workers in this city, of protecting the legitimate rights and interests of the person concerned, of guaranteeing the smooth process of urban construction.

   Article 2 (Scope of Application)

The present Procedures apply to the self-employed workers' own house or the rented publicly-owned houses used as fixed business place (hereinafter referred to as "Business House" built on the State-owned land in the city which needs to be demolished because of city construction.

The present Procedures do not apply to the privately-owned houses rented by a self-employed worker as fixed business place, which needs to be demolished.

   Article 3 (Resettlement for Demolished Business House)

Any party that demolishes a business house on the ground floor along a street used by self-employed worker for business shall arrange resettlement with any other ground floor house suitable for busies along of not along a street according to the nature of the business items of the business and the architectural area of the demolished business house.

Any party that demolishes a business house on the ground floor not along a street used by a self-employed worker for business shall arrange resettlement with any other ground floor house suitable for business not along a street according to the architectural area of the demolished business house.

If the Party is not able to provide such house for resettlement as stipulated under Section 1 or 2 of this Article, it can resettle the self-employed worker's business whose house is to be demolished, in one of the following ways:

1. It may apply to the People's Government of the district or the county in which the demolished house is located for making unified arrangement for the business place for the self-employed worker's business and resettlement with other residential house according to the architetual area of its demolished business house; or

2. It may pay a monetary subsidy in one lump sum to the self-employed worker's business whose house has been demolished; and resettle with other residential house according to the architectural area of its demolished business house.

   Article 4 (Resettlement for Demolished Housed for both Business and Residence)

Any party that demolishes the house used by the self-employed worker for both business and residence shall arrange resettlement according to the architectural area of the demolished house; and it can arrange resettlement with house used for residence and business separately or together according to the housing specifications for resettlement.

   Article 5 (Standard of Resettlement in a Different Area)

Any party that arranges resettlement in a different area for a self- employed worker whose house is demolished shall increase the architectural area of the house for resettlement at the percentages listed in the following table:

------------------------------------------------------------------------ | Grade of locality of| Grade of locality of the house for resettlement| | |------------------------------------------------| |the house demolished | I | II | III | IV | V | VI | |---------------------|------------------------------------------------| | I | - | - | - | 20% | 40% | 80% | |---------------------|------------------------------------------------| | II | - | - | - | 20% | 40% | 80% | |---------------------|------------------------------------------------| | III | - | - | - | 20% | 40% | 80% | |---------------------|------------------------------------------------| | IV | - | - | - | - | 20% | 40% | |---------------------|------------------------------------------------| | V | - | - | - | - | - | 20% | -----------------------------------------------------------------------

The grades of the locality of the house listed in the above table shall be delimited separately by Shanghai Municipal Housing and Land Administration Bureau.

If the self-employed worker's business whose busince in Grade 6 locality is to be demolished moves from a better location to a worse location, the specific standard for an increase in the area of the house for resettlement shall be set by the People's Government of the district or county in which the demolished house is located.

If the self-employed worker's business that is resettled in a different area is to retain the property right of the house for resettlement, the price of the architectural area of this house increased under Section 1 of this Article shall be charged on the basis of the cost price of a new house.

   Article 6 (Arrangement of Business Premise)

A party that arranges resettlement for a self-employed worker's business whose house is to be demolished under Article 3, Section 3 (1) shall sign an agreement with the department designated by the local government of the district or the county in which the demolished house is located and pay to the department designated by this people's government of the district or the county the fee for the arrangement of business places according to the standard of from 30,000 to 50,000 yuan perhousehold. The specific amount of the for the arrangement of the business places is to be decided by the people's government of the district or the county in which the demolished house is located, according to the architectural area, structure and section of location area of the business place.

The fee for arranging the business place paid by any party that demolishes the houses shall be used as the special fund for construction of the business places for the self-employed workers whose original houses have been demolished.

The department designated by the district or county people's government shall timely and approperly arrange the business places for the self- employed workers' businesses whose houses are demolished, and shall give them preferential treatment of exemption from payment of one year. The area of the business place arranged by the designated department of the district of the county people's government for each self- employed worker's business shall be no less than 4 square meters.

   Article 7 (Lump-sum Monetary Subsidy)

And party that arranges resettlement for the self-employed worker's business whose house is demolished under Article 3, Section 3 (1) shall give a lump-sum monetary subsidy according to the following standard:

1. For the self-employed worker's business with over 3 years' business operation, the calculation shall be made by multiplying 2 and the sum total of the production and business operation tax actually paid by the self-employed worker's business for the previous 3 years; or

2. For the self-employed worker's business with less than 3 years' business operation, the calculation shall be made by multiplying 2 and the sum to total of the production and business operation tax actually paid by the self-employed worker's business.

The sum total of the actually paid production and business operation tax mentioned in the preceding Section shall not include the tax which the self-employed worker's business whose house is demolishes retrospectively paid after the public notice is given for suspending issuance of business license. Where the self-employed worker's business who enjoys the preferential treatment of tax reduction by related or exemption under relevant regulations, the am total of his actually paid production and business operation tax shall be calculated according to the production and business operation tax which it should pay.

If the amount of lump-sum monetary, subsidy, calculated according to Sections 1 and 2 of this Article is less than 5,000 yuan, 5,000 yuan shall be given as the monetary subsidy.

   Article 8 (Compensation for Interrupted Business)

Excerpt for the situations stipulated by Article 3, Section 3(2) of the present Procedures, any party that demolishes a self-employed worker's business house shall pay it a certain amount of monetary subsidy if the self-employed worker's business operation is interrupted during resettlement. The compensation standards shall be calculated by multiplying the average daily salary and wage of the city's staff and workers for the last year and the actual number of days of interruption of business.

   Article 9 (Compensation for the Newly Decorated House)

If any party that demolishes the newly decorated business house of a self-employed worker's business, it shall compensate 70% of the decorating fees for the house used for not more than one year after decoration; 50% of the decorating fees for the house used from not to two years; 30% of the decorating fees for the house used from two to the three years; and it needn't make any compensation for the house used over three years.

The decorating fees shall be determined on the basis of the voucher for reimbursement of expenditure produced by the self-employed worker's business. If the person concerned disagrees to the amount decorating fees, the decorating fees shall be determined according to the budgeted quota standard of this city's house decorating project.

   Article 10 (The Department Responsible for Interpretation in Application)

The Shanghai Municipal Housing and Land Administration Bureau is responsible for the interpretation of the present Procedures in their specific application.

   Article 11 (Date of Implementation and Treatment of Relevant Matters)

The present Procedures shall become effective on June 1st, 1997. Matters not specifically stipulated in the present Procedures shall be handled according to the "Implementation Rules of Shanghai Municipality on the Administration of Urban House Demolition and Relocation". If the original provisions formulated by the Municipal People's Government are inconsistent with present Procedures.