Industrial Use Land Grant System Updated - 国土资源部、监察部关于进一步落实工业用地出让制度的通知
Released on August 10, 2009, and effective as of the same date
The Ministry of Land and Resources, and the Ministry of Supervision jointly released the Circular on Further Implementation of Grant System of Land for Industrial Use (“Circular”) to guide relevant authorities on improving the administration of land grants for industrial use.
• Tender, auction and public listing system
The Circular emphasizes that the tender, auction and public listing system for industrial use land shall be strictly implemented. The local authority can choose the appropriate granting method taking into considerations the land granting policies, purpose of the land, planning restrictions, etc. For lands that satisfy construction conditions for a comprehensive goal or particular social or public interests, or the use of which is strictly restricted, or only a few entities or persons intend to acquire, the local authorities can adopt tender invitation to determine the most suitable grantee by evaluating comprehensive conditions. Auction and open bidding can also be used to determine the grantee, provided that special requirements are set in advance.
• Industrial project built in stages
For an industrial project to be built in stages, the land and resource authority at the municipal or county level may determine the winner of the tender, auction or public listing by means of bidding for the land unit premium. The bid winner shall enter into a land use right grant contract with the land and resource authority, and pay the land premium in one lump sum. The formalities for the land grant shall be completed within two years, since the execution of the land grant contract. The land can be provided in stages in accordance with its land use standard, and the purpose of the land can not be modified or used for employees’ residential buildings. If the land is changed from industrial use into commercial, tourism, recreational, commercial residential or other operational use, the land shall be withdrawn and re-granted through tender, auction or public listings.
Within the grant period of industrial land use, if the grantee increases the floor area ratio without changes to the planning and the land use, the grantee shall not be charged for additional land premiums.