Laws of the People's Republic of China

(Effective Date 1984.07.14)

   Article 1. The present regulations are formulated in accordance with the relevant laws and decrees of the People's Republic of China.

   Article 2. Land, seabeaches, waters and resources within the Xiamen Special Economic Zone (SEZ) are all placed under the unified planning and administration of the Xiamen City People's Government.

   Article 3. All the enterprises must observe the overall construction program of the SEZ in the use of land, and the construction projects and their overall distribution that have been approved must not be changed without authorization.

   Article 4. A SEZ enterprise, when in need of the use of land, should apply with the Xiamen Urban and Rural Construction Commission by producing a duplicate each of the approval document and the contract of the investment project, and after being checked, it will receive a certificate for, and have the right to, the use of the land applied for.

   Article 5. Counting from the day on which the land use certificate is received by the SEZ enterprise, the said enterprise must submit the blueprints of the overall design and construction plan for the project within nine months, and construction should be started within one year, and completed according to schedule. The land use certificate shall be revoked for those who delay the project's construction without a valid reason and the land use fee already paid shall not be reimbursed. The enterprise concerned may apply for the extension of the construction period with the relevant approval department if it can justify itself of the reason(s) for the delay.

   Article 6. The land use period shall be determined in accordance with the project undertaken and its actual needs. The longest duration for any individual contract signed, depending on what trades or industries it belongs to, is as follows:

(1) 40 years for industrial and communications projects, and public utilities;

(2) 20 years for commercial enterprises and service trades;

(3) 30 years for financial institutions and tourist projects;

(4) 50 years for property projects;

(5) 60 years for science, technology, education, culture and public health projects; and

(6) 30 years for animal husbandry,crop farming, aquatic and poultry raising.

If the enterprise concerned wishes to continue its operation upon the expiration of the term specified in the land use certificate, it may apply for renewal before its expiration.

   Article 7. A SEZ enterprise should pay a fee for the use of land, be it newly requisitioned land or on the site originally used by the enterprise. The amount of the fee to be paid shall be decided by the Xiamen City People's Government according to different trades, locations and how advanced the technology involved is. The amount will not be readjusted within three years as from the date it is announced and becomes effective, and it may be readjusted every three years there after as the case may be, and the readjusted rate shall not be higher than 30% of the original. However, a SEZ enterprise is allowed a 50% deduction of the fee during the approved project construction period.

   Article 8. Payment of the land use fee should be made annually. Preferential terms shall be granted if advance payment is made for three years in one lump sum, the specific procedures for which shall be drawn up by the Xiamen City People's Government.

The land use fee for the first year should be paid on the day on which the land use certificate is issued. If the use of the land is less than six months, the enterprise is exempted, but if the period exceeds six months, only a six-month fee is to be paid. As from the second year, the annual fee should be paid before March 31 every year. An extra charge equivalent to zero point one percent of the fee per day shall have to be paid for any delay.

   Article 9. A SEZ enterprise or individual only has the right to use the land upon approval but not the right to its ownership. The right to use the land may, within the specified use period, be transferred upon approval and the users go through the transfer procedures, for which a new land use certificate is issued accordingly.

   Article 10. A SEZ enterprise must pay 50% of the set land use fee for land reserved for development purposes upon approval. The reservation period should not exceed two years, beyond which the reservation is ended automatically at the end of the two-year period. The users must go through the procedures if they use the land within the reservation period, the first year of which they are exempt from paying the land use fee.

   Article 11. A SEZ enterprise, when in temporary need of the use of land, must have the approval of the Xiamen Urban and Rural Construction Commission and pay for their temporary use. The longest duration for temporary use is two years.

Upon the expiration of the temporary use period the users of the land should dismantle all temporarily built facilities on the land and any topographical damages made should be restored accordingly.

   Article 12. The land use fee may be exempted with the approval of the Xiamen City People's Government when starting non-profit making education, science and technology, medical and public health as well as public welfare undertakings in the SEZ.

   Article 13. Investors should apply with the Xiamen City People's Government for developing and operating large tracts of land in the SEZ, and individual agreements may be signed as regards the number of years for use, the scope and mode of operation, the scales of the fee to be charged, and the methods of payment.

   Article 14. Any usage of land in the SEZ must be made in accordance with its set requirements for environmental protection, water and soil conservation, fire and safety control, construction norms, landscaping and afforestation.

   Article 15. All SEZ enterprises are responsible for their individual needs in, and the building of the facilities for, the power, heat and water supply, telecommunications, water drainage and sewage and roads within the confines of the land they use.

   Article 16. The present regulations are (also) applicable to non-SEZ Chinese enterprises that are associated (or otherwise in partnership) with SEZ enterprises and that use land in the SEZ.

   Article 17. The present regulations shall come into force on the date of promulgation.