Shenzhen City, Several Provisions for the Grant of Industrial and Other Leaseholds

深圳市工业及其他产业用地使用权出让若干规定

November 30, 2007 | BY

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Industrial leaseholders in Shenzhen not allowed to assign their leaseholds without authorization.

Clp Reference: 4100/07.10.16 Promulgated: 2007-10-16 Effective: 2007-12-01

Promulgated: October 16 2007
Effective: December 1 2007

Applicability: The Provisions apply to the grant of industrial and other leaseholds in the administrative region of Shenzhen City. Where there are provisions concerning the grant of land for commercial use such as commerce, tourism, entertainment and commodity residential premises in laws, regulations and other rules, such provisions shall prevail (Article 2).

Main Contents: Article 3 states that the grant of industrial, logistics and warehousing leaseholds and land with two or more intended users shall adopt open competitive pricing methods such as invitation for bids, auction or listing. The leaseholds for non-governmental investment in culture, sports, hygiene, education and scientific research shall be granted by means of invitation for bids, auction or listing. Where such methods cannot be used, approval shall be sought from the city government. Where land is granted by means of auction or listing, the winner shall be the highest bidder. Where land is granted by means of invitation for bids, the bidder with the highest overall marks in the evaluation or the highest bidder shall be the winner (Article 23).

To apply for submission of bids or competitive bidding, an application for assessment of the qualification for submission of bids or competitive bidding shall be made to the qualification assessment authority in accordance with the requirements of the announcement. Where the applicant has idle land or has not paid the land price owed, the city land administrative department in charge shall notify the qualification assessment authority of rejection of its application for submission of bids or competitive bidding (Article 18).

Where industrial and other leaseholds are obtained by means of invitation for bids, auction or listing, the grantee shall strictly adhere to the land use and may not assign or lease out the land without authorization. Where industrial and other leaseholds are granted, or are auctioned off or realized due to enforcement by a people's court, the second grantee shall possess the qualification of grantee as stipulated in the original contract for grant of the leasehold. The industry in which the second grantee engages must be in line with the relevant industrial policies. If it is truly necessary to assign the land or upon enforcement by the people's court there is no second assignee that meets the requirements for assignment, the government may exercise its preemptive rights to repurchase the land. The repurchase price shall be stipulated in the contract for grant of the leasehold. Unless otherwise stipulated by the said contract, industrial and other land shall be assigned completely (Article 29).

clp reference:4100/07.10.16/SZpromulgated:2007-10-16effective:2007-12-01

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