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TABLE OF CONTENTS CHAPTER I SCOPE OF APPLICATION CHAPTER II QUOTED STANDARDS AND DOCUMENTS CHAPTER III BASIS CHAPTER IV GENERAL PROVISIONS CHAPTER V PUBLICATION OF AN ASSIGNMENT PLAN AND DETERMINATION OF LAND SUPPLY CHAPTER VI FORMULATION AND DETERMINATION OF AN ASSIGNMENT PLAN CHAPTER VII LAND PRICE EVALUATION AND DETERMINATION OF THE BASE PRICE OF ASSIGNMENT CHAPTER VIII FORMULATION OF ASSIGNMENT DOCUMENTS CHAPTER IX PUBLICATION OF AN ASSIGNMENT ANNOUNCEMENT CHAPTER X APPLICATION AND QUALIFICATION EXAMINATION CHAPTER XI IMPLEMENTATION - TENDERING CHAPTER XII IMPLEMENTATION - AUCTION CHAPTER XIII IMPLEMENTATION - LISTING CHAPTER IVX CONCLUSION OF AN ASSIGNMENT CONTRACT AND PUBLICATION OF THE RESULT OF ASSIGNMENT CHAPTER XV VERIFICATION AND ISSUANCE OF AN APPROVAL FOR CONSTRUCTION LAND AND LAND DELIVERY CHAPTER XVI HANDLING OF LAND REGISTRATION CHAPTER XVII ARCHIVAL FILING OF MATERIALS The present regulation is formulated according to the Measures of the People's Republic of China on Land Administration, the Measures of the People's Republic of China for the Administration of Urban Real Estate, the Interim Regulation of the People's Republic of China on the Assignment and Transfer of Urban State-owned Land Use Right, and the Provisions on the Assignment of the State-owned Use Right by Means of Bid Tendering, Auction and Hanging Out a Shingle in order to perfect the assignment system of the state-owned land use rights, regulate the assignment of the state-owned land use rights and uniform the relevant procedures and standards, optimize the allocation of land resources and promote the construction of the land market. The power to interpret the present regulation shall remain with the Ministry of Land and Resources. CHAPTER I SCOPE OF APPLICATION The present regulation shall apply to the assignment of the state-owned land use right by means of bid tendering, auction or hanging out a shingle within the territory of the People's Republic of China. Where any state-owned land use right is leased or any other right to the stand-owned land are assigned by mean of bid tendering, auction or hanging out a shingle, it shall be implemented by referring to the present regulation. Where the state-owned land use right is assigned by means of bid tendering, auction or hanging out a shingle or where the land use right of the peasants' collective construction land is circulated by means of bid tendering, auction or hanging out a shingle according to law, it shall be implemented by referring to the present regulation. CHAPTER II QUOTED STANDARDS AND DOCUMENTS The clauses included by the following standards and documents form an integral part of the articles of the present regulation due to their quotation. All the versions included herein take effect upon promulgation of the present regulation. All the parties that apply the present regulation shall use the latest versions of the following standards and documents. GB / T 18508 ¨C2001 Rules for Urban Land Price Evaluation Model Text of Contract on the Assignment of the State-owned Land Use Right No. 303 [2000] of the Ministry of Land and Resources Classification of the National Land No. 255 [2001] of the Ministry of Land and Resources Controlling Indicators of the Land Used for Industrial Construction Projects No. 232 [2004] of the Ministry of Land and Resources CHAPTER III BASIS (1) The Law of the People's Republic of China on Land Administration (2) The Law of the People's Republic of China on the Administration of Urban Real Estate (3) The Law of the People's Republic of China on Urban Planning (4) The Law of the People's Republic of China on Administrative Licensing (5) The Law of the People's Republic of China on Contract (6) The Interim Regulation of the People's Republic of China on the Assignment and Transfer of Urban State-owned Land Use Right (7) The Program for Establishing and Improving the System of Punishing and Preventing the Corruption By Paying Equal Attention to Education, Bylaws and Supervision (No. 3 [2005]) (8) Circular of the State Council on Intensifying the Administration of State-owned Land Assets (No. 15 [2001] of the State Council) (9) Decision of the State Council on Furthering Reform and Regidifying Land Administration (No. 28 [2004] of the State Council) (10) The Provisions of the Disciplinary Supervision Department of the Central Discipline Inspection Commission of the CPC and the Ministry of Government Supervision on Treating Those Cadres who Take Advantages of Their Functions and Power to Meddle and Intervene in Market Economic Activities, Assignment of Operational Land Use rights, Real Estate Development and Operation so as to Secure Private Interests for Himself or His Relatives (No. 3 [2004] of the Central Discipline Inspection Commission) (11) The Provisions on the Assignment of the State-owned Land Use Rights by Means of Bid Tendering, Auction or Hanging Out a Shingle (Order No. 11 of the Ministry of Land and Resources) CHAPTER IV GENERAL PROVISIONS 4.1 Concept of the Assignment of the State-owned Land Use Right by Means of Bid Tendering, Auction or Hanging Out a Shingle The term "assignment of the state-owned land use right by means of bid tendering" refers to an act whereby the administrative department of land and resources at the municipal or county level publicizes an announcement on bid tendering or sending out an invitation so as to invite specified or non-specified legal persons, natural persons or any other organizations to participate in the bid tendering of the state-owned land use right, on the basis of which a land user may be determined according to the result of bidding. The term "assignment of the state-owned land use right by means of auction" refers to an act whereby the administrative department of land and resources at the municipal or county level publicizes an announcement on auction so that the buyers conduct open bidding at a designated place and time, on the basis of which a land user may be determined according to the result of bidding. The term "assignment of the state-owned land use right by means of hanging out a shingle" refers to an act whereby the administrative department of land and resources at the municipal or county level publicizes an announcement on hanging out a shingle, indicating the requirements for land assignment within a prescribed term, on the shingles in the designated trading place of land and the prices on the shingle shall be updated upon acceptance of the quotation offered by buyers, on the basis of which a land user may be determined according to the result of bidding upon expiration of the term for hanging out a shingle or the on-site bidding result. 4.2 Principles in the Assignment of the State-owned Land Use Right by Means of Bid Tendering, Auction or Hanging Out a Shingle (1) Being open, fair and impartial; and (2) Being creditworthy. 4.3 Scope of the Assignment of the State-owned Land Use Right by Means of Bid tendering, Auction or Hanging Out a Shingle (1) In the case of such operational land for commerce, tourism, entertainment and commercial residence as well as the industrial land requiring competition; (2) In the case of two or more land users who desire land use upon publication of another plan of land supply; (3) Where the purpose of the use right of any allocated land is altered and if it is explicitly indicated in the Decision on Assignment of the State-owned Land or according to the relevant laws, regulations and administrative provisions that the land use right shall be withdrawn and that an assignment shall be conducted by means of bid tendering, auction or hanging out a shingle; (4) In the case of assignment of the use right of any allocated land and if it is explicitly indicated in the Decision on Assignment of the State-owned Land or according to the relevant laws, regulations and administrative provisions that the land use right shall be withdrawn and that an assignment shall be conducted by means of bid tendering, auction or hanging Out a Shingle; (5) Where the purpose of the use right of any assigned land is altered and if it is explicitly indicated in the Decision on Assignment of the State-owned Land or according to the relevant laws, regulations and administrative provisions that the land use right shall be withdrawn and that an assignment shall be conducted by means of bid tendering, auction or hanging out a shingle; (6) Under any other circumstance where an assignment shall be conducted by means of bid tendering, auction or hanging out a shingle according to the provisions of relevant laws, regulations and administrative provisions. 4. 4 Organization and Implementation of the Assignment of the State-owned Land Use Right by Means of Bid Tendering, Auction or Hanging Out a Shingle 4.4.1 Subject of Implementation The assignment of the state-owned land use right by means of bid tendering, auction or hanging out a shingle shall be organized and implemented by the administrative department of land and resources at the municipal or county level. 4.4.2 Form of Organization The administrative department of land and resources at the municipal or county level may, when implementing any assignment of the state-owned land use right by means of bid tendering, auction or hanging out a shingle, choose any of the following ways according to the real situation: (1) Where the administrative department of land and resources at the municipal or county level handles it by itself; (2) Where the administrative department of land and resources at the municipal or county level designates or authorizes its subordinated public institution to specifically take charge; or (3) Where the administrative department of land and resources at the municipal or county level entrusts the trading agencies with relevant qualification for handling. 4.4.3 Organ in Charge of Coordination and Decision-making A collective decision-making system shall be applied to the assignment of the state-owned land use right. The administrative department of land and resources at the municipal or county level may, according to the real situation, establish an organ in charge of the coordination and decision-making of the state-owned land use right, which shall take charge of coordinating and handling the relevant issues in assignment and determining the relevant matters in a collective manner. 4.4.4 Presider of the Bid Tendering, Auction or Hanging Out a Shingle of Land The assignment of the state-owned land use right by means of bid tendering, auction or hanging out a shingle shall be presided over by a staff who meets the requirements for a presider of the bid tendering, auction or hanging out a shingle of land prescribed by the Ministry of Land Resources and has obtained the relevant qualification. 4.4.5 Procedures for Land Assignment by Means of Bid Tendering, Auction or Hanging Out a Shingle (1) Publicizing a plan of assignment and determining the way of land supply; (2) Formulating and determining a plan of assignment; (3) Evaluating the land price and determining the base price of assignment; (4) Formulating the assignment documents; (5) Publicizing an announcement on assignment; (6) Examining the application and qualification; (7) Implementing the bid tendering, auction or hanging out a shingle; (8) Concluding an assignment contract and publicizing the result of assignment; (9) Verifying and issuing an Approval for Construction Land and delivering the land; (10) Handling the land registration; and (11) Putting the relevant materials on archives. 4.5 Local Supplementary Provisions A local government may formulate supplementary provisions or detailed rules for the present regulation, which shall be reported to the administrative department of land and resources at the next higher level for archival filing. CHAPTER V PUBLICATION OF AN ASSIGNMENT PLAN AND DETERMINATION OF LAND SUPPLY 5.1 The administrative department of land and resources at the municipal or country level shall publicize an approved assignment plan of the state-owned land use right to the general society, and the relevant region with mature conditions may, according to the arrangement of land supply, detail the relevant assignment plan of the state-owned land use right to specific location and plots by installments and publicize the relevant information to the society in a timely manner. An assignment plan of the state-owned land use right, the detailed information on location and plots shall be simultaneously publicized on www. landchina.com. 5.2 Where the administrative department of land and resources at the municipal or county level publicizes an assignment plan of the state-owned land use right, the detailed information on location and plots, it shall clarify the way and means whereby a land user applies for land use, and publicly accepts an application for land use. 5.3 An entity or individual that needs land use (hereinafter referred to an intended user of operational land) shall, according to the information on the assignment of the state-owned land use and the detailed information on location and plots that have been publicized as well as its/his own demand, file an application for land use with the administrative department of land and resources at the municipal or county level. 5.4 Preliminary Application for Land Use In order to get a full knowledge of the market demand and arrange the scale and progress of land supply in a scientific and reasonable manner, the relevant region with mature conditions may establish a system of preliminary application for land use. An entity or individual that has any intent to use any specific plot that has been included into an assignment plan based on bid tendering, auction or hanging out a shingle may file an preliminary application for land use and commit a land price it/he may offer. Where the administrative department of land and resources at the municipal or county level deems that any land price and conditions that an entity or individual has offered is acceptable, it may, according to the plan of land assignment as well as the current land market, organize and implement a bid tendering, auction or hanging out a shingle for assignment at a proper time and may notify the entities or individuals that have filed a preliminary application for land use to join it. An entity or individual that has filed a preliminary application for land use shall participate in the tendering or bidding, wherein the price shall not be any lower than the land price it/he has promised. 5.5 According to the application of an intended land user, where the requirements in Provisions 4.3 for assignment of the land use right are satisfied, the means of bid tendering, auction or hanging out a shingle shall be adopted. Where it cannot be decided whether the specific land satisfies the requirements of Provisions 4.3, it may be confirmed by the organ in charge of the coordination and decision-making of assignment of the state-owned land use right. As to the assignment of any land use right with comprehensive objects or with comparatively high and specified requirements for society or public welfare construction or for development and construction and if only a few entities and individuals intend to obtain the right, the means of bid tendering, auction or hanging out a shingle may be adopted, an assigner shall be determined according to the principles of "one with most favorable conditions wins". As to the assignment of any other land use right, the means of bid tendering, auction or hanging out a shingle shall be adopted and an assignee shall be determined according to the principles of "one who offers the highest price wins". Where the state-owned land use right is assigned by means of bid tendering, the means of an open biding shall be adopted. In the case of any strict restriction on or special requirements for land users, the means of bid invitation may be adopted. CHAPTER VI FORMULATION AND DETERMINATION OF AN ASSIGNMENT PLAN 6.1 Formulating an Assignment Plan Based on Bid Tendering, Auction or Hanging Out a Shingle The administrative department of land and resources at the municipal and country level shall, in collaboration with such relevant departments of city planning, formulate an assignment plan of the state-owned land use right by means of bid tendering, auction or hanging out a shingle according to the relevant assignment plan and city planning of the state-owned land use right. An assignment plan of the state-owned land use right by means of bid tendering, auction or hanging out a shingle shall include: the specific location of the to-be-assigned plot, boundary, purpose of use, area, term, requirements for land use, time of land supply, way of land supply and time of construction. As to any land of comprehensive use, the specific purposes of use, areas as well as their terms for assignment shall be clarified. Where any real estate of different purposes of use can be divided up and if the final users are different entities and individuals, the term for assignment can be determined according to the specific purpose of land use included into the purpose of comprehensive land use. Where the multiple purposes of use are hard to be divided up and the final user is unique, the term for assignment may be deemed 50 years, which is the maximum term for comprehensive land use. 6.2 Reporting for Approval of an Assignment Plan by Means of Bid Tendering, Auction or Hanging Out a Shingle An assignment plan of the state-owned land use right by means of bid tendering, auction or hanging out a shingle shall be subject to the approval of the people's government at the municipal or county level according to the relevant provisions. CHAPTER VII LAND PRICE EVALUATION AND DETERMINATION OF THE BASE PRICE OF ASSIGNMENT 7.1 Land Price Evaluation The administrative department of land and resources at the municipal or county level shall, according to the conditions of the to-be-assigned plot and the situation of the current land market, organize an evaluation on the to-be-assigned plot so as to work out the normal land market price thereof according to the Rules for Urban Land Evaluation. A land price evaluation shall be carried out by the administrative department of land and resources at or above the municipal or county level or any other subordinated public institution thereof and, when it so requires, to an organ with the qualification may be entrusted to carry out a price evaluation on the land or real estate. 7.2 Determination of the Base Price Where any assignment is based on a base price, the administrative department of land and resources at the municipal or county level or the organ in charge of the coordination and decision-making of the assignment of the state-owned land use right shall, according to the result of land price evaluation, industrial policies and the current land market, make a collective decision on determining the base price and the deposits for bid tendering and purchase in a comprehensive manner. Where any assignment is conducted by bid tendering, the base price for a tender shall be determined at the same time. Where any assignment is conducted by means of auction or hanging out a shingle, the initial price or starting price shall be determined at the same time. Where a base price for a tender or a base price is determined, it shall be kept confidential before the assignment is concluded, and shall not be divulged by any entity or individual. CHAPTER VIII FORMULATION OF ASSIGNMENT DOCUMENTS The administrative department of land and resources at the municipal or county level shall, according to a plan of assignment by means of bid tendering, auction or hanging out a shingle that has been approved, organize the formulation of assignment documents on the state-owned land use right by means of bid tendering, auction or hanging Out a shingle. 8.1 The documents of assignment based on bid tendering shall include: (1) An announcement on assignment by means of bid tendering or bid invitation; (2) Instructions on the assignment based on bid tendering; (3) Tender letter; (4) An application for bidding; (5) A boundary map of land; (6) The requirements for land indicators; (7) Notice on Bid Winning (8) Contract on the Assignment of the State-owned Land Use Right; and (9) Other relevant documents. 8.2 The documents of auction-based assignment shall include: (1) An announcement on auction-based assignment; (2) Instructions on auction-based assignment; (3) An application for bidding; (4) A boundary map of land; (5) Requirements of the land planning indicators; (6) Confirmation on Striking a Deal; (7) A Contract on the Assignment of the State-owned Land Use Right; and (8) Other relevant documents. 8.3 The documents of assignment based on hanging out a shingle shall include: (1) An announcement on assignment based on hanging out a shingle; (2) Instructions on assignment based on hanging out a shingle; (3) An application for bidding; (4) Price quotation of assignment based on hanging out a shingle; (5) A boundary map of land; (6) Requirements of the land planning indicators; (7) Confirmation on Striking a Deal; (8) Contract on the Assignment of the State-owned Land Use Right; and (9) Other relevant documents. CHAPTER IX PUBLICATION OF AN ASSIGNMENT ANNOUNCEMENT 9.1 Publication of an Announcement An announcement on the assignment of the state-owned land use right by means of bid tendering, auction or hanging out a shingle shall be publicized by the administrative department of land and resources at the municipal or county level. An assignment announcement shall be publicized on the website: www.landchina.com, and the local tangible land market or may be publicized through media such as newspaper and TV stations. An assignment announcement shall be publicized at least 20 days before any bid tendering, auction or hanging out a shingle is initiated and the time of initial publication is deemed the day of commencement. Where specific means such as bid tendering, auction and hanging out a shingle are clarified in an approved assignment plan, a specific "Announcement on the Assignment of the State-owned Land Use Right by means of Bid Tendering", "Announcement on the Assignment of the State-owned Land Use Right by means of Auction" or "Announcement on the Assignment of the State-owned Land Use Right by means of Hanging Out a Shingle" shall be publicized. Where any of the aforesaid specific means fails to be clarified in an approved assignment plan, an "Announcement on Public Assignment of the State-owned Land Use Right" may be publicized, wherein the specific means of bid tendering, auction or hanging out a shingle shall be determined according to the application upon expiration of the term for application. An assignment announcement may be an announcement on single land or be a joint announcement on several pieces of land. 9.2 Announcement Content 9.2.1 An announcement on assignment based on bid tendering shall include the following contents: (1) The name, address, telephone number, etc. of the assigner; where a subordinated public institution is authorized or designated to conduct a bid tendering or where an agency is entrusted to conduct a bid tendering, the name, address and telephone number of the organization shall be indicated; (2) The location, area, purpose of use, development and requirements of the planning indicators, term for land use and term for construction of the plot subject to bid tendering; (3) The requirements for the qualification of bidders and the methods to apply for the bidding qualification; (4) The time, address and way to obtain the bid documents; (5) The time, address, term for bidding, place and way of bidding; (6) Standards for and method of determining a bid winner; (7) The amount, way and term for payment of bid deposits; and (8) Any other matter that requires an announcement. 9.2.2 An announcement on auction-based assignment shall include the following contents: (1) The name, address, telephone number, etc. of the assigner; where a subordinated public institution is authorized or designated to conduct a bid tendering or where an agency is entrusted to conduct a bid tendering, the name, address and telephone number of the organization shall be indicated as well; (2) The location, area, purpose of use, development and requirements of the planning indicators, term for land use and term for construction of the plot subject to bidding; (3) The requirements for buyers as well as the methods to apply for the qualification of purchase; (4) The time, address or way to obtain the bid documents; (5) The address, time and bidding method of an auction; (6) The amount, way and term for the payment of bid deposits; and (7) Any other matter that requires an announcement. 9.2.3 An announcement on assignment based on hanging out a shingle shall include the following contents: (1) The name, address, telephone number, etc. of the assigner; where a subordinated public institution is authorized or designated to conduct a hanging out a shingle or where an agency is entrusted to conduct a hanging out a shingle, the name, address and telephone number of the organization shall be indicated as well; (2) The location, area, purpose of use, development, requirements of the planning indicators, term for land use and time of construction of the plot subject to shingled-out; (3) Requirements for the qualification of buyers as well as the method of applying for the qualification of purchase; (4) The time, address and way to obtain the documents of hanging out a shingle; (5) The place as well as the date of commencement and deadline of a hanging out a shingle; (6) The amount, way and time limit to pay the bid deposits; and (7) Any other matter that requires an announcement. 9.3 Adjustment of Announcement In the duration of an announcement, where any announced content is changed, the administrative department of land and resources at the municipal or county level shall publicize a supplementary announcement through the publication channel of the original announcement in a timely manner. Where any major change that involves the requirements for land use and thus affects the land price, and if the publication time of a supplementary announcement is within 20 days as of the time when the relevant bid tendering, auction or hanging out a shingle is started, the relevant activities shall be postponed correspondingly. Where a supplementary announcement is publicized, the administrative department of land and resources at the municipal or county level shall notify the registered applicant in written form. CHAPTER X APPLICATION AND QUALIFICATION EXAMINATION 10. 1 Applicants An applicant for the assignment of the state-owned land use right by means of bid tendering, auction or hanging out a shingle may be a legal person, natural person or any other organization within or out of the territory of the People's Republic of China, unless it is otherwise prescribed by any law or regulation. An applicant may file an independent or joint application. 10.2 Application An applicant shall, within a time limit prescribed by an announcement, pay the deposit for bidding or purchase, and shall, in light of its position under the category of applicants, file an application for purchase or bidding upon the strength of the relevant documents. (1) Where a legal person files an application, it shall submit the following documents: 1. An Application; 2. Effective certification documents of a legal person entity; 3. Effective identity certification documents of its legal representative; 4. Where the applicant entrusts any other party to handle any matter, a power of attorney and the relevant effective identity certification documents of the authorized agent shall be submitted; 5. Deposit payment certificate; 6. Any other document that shall be submitted according to the provisions of documents of bid tendering, auction or hanging out a shingle. (2) Where a natural person files an application, the following documents shall be submitted: 1. An Application; 2. Effective identification certification documents of the applicant; 3. Where the applicant entrusts any other party to handle any matter, a power of attorney and the identity certification documents of the authorized agents shall be submitted; 4. Deposit payment certificate; and 5. The other documents required to be submitted for bid tendering, auction or hanging out a shingle. (3) Where any other organization files an application, the following documents shall be submitted: 1. An Application; 2. Effective documents or certification proving the legal existence of the organization; 3. Effective certification documents showing the identity of the person-in-charge of the organization; 4. Where an applicant entrusts any other party to handle it, a power of attorney and the identification certification documents of the authorized agent shall be submitted; 5. Payment certificate of the deposit; and 6. Any other document required to be submitted for bid tendering, auction or hanging out a shingle. (4) Where an overseas applicant files an application, the following documents shall be submitted: 1. An Application; 2. The effective identification certification documents of the overseas legal person, natural person or any other overseas organization; 3. Where the applicant entrusts any other party to handle any matter, a power of attorney and the identification certification documents of the authorized agent shall be submitted; 4. Deposit payment certificate; and 5. Any other document required to be submitted for bid tendering, auction or hanging out a shingle. As to the aforesaid documents, an application shall be written in Chinese and the other documents may be formulated in other languages, for which a relevant Chinese version shall be attached, and the explanations of all the documents shall be based on the Chinese versions. (5) As to a joint application, the following documents shall be submitted: 1. An application that has been signed by all the parties concerned to a joint application; 2. The effective certification documents of all the parties concerned to a joint application; 3. An agreement on joint purchase or bidding, the rights and obligations of the joint parities prescribed in the agreement, including the proportion of capital contribution of all the joint parties and the clarified assignee when the Contract on the Assignment on the State-owned Land Use Right is concluded; 4. Where an applicant entrusts any other party to handle it, a power of attorney and the identification certification documents of the authorized agent shall be submitted; 5. Deposit payment certificate; and 6. Any other document required to be submitted for bid tendering, auction or hanging out a shingle. (6) Where a purchaser wins a land and plans to establish a new company for development and construction, it shall indicate in its application contents such as the structure of capital contribution and time of establishment of its new company. An assigner may, according to the result of assignment made through bid tendering, auction or hanging out a shingle, first conclude with the bid winner a Contract on the Assignment on the State-owned Land Use Right and then, after the bid winner completes the formalities for registration of a new company, conclude with this new company an Agreement on the Alteration of the Assignment Contract on the State-owned Land Use Right or may directly conclude with the new company a Contract on the Assignment of the State-owned Land Use Right. 10. 3 Acceptance of an Application and Examination of Qualification An assignor shall conduct an examination on an application received within the time limit prescribed by an announcement. Upon examination, under any of the following circumstances, it shall be deemed an invalid application: (1) Where an applicant is disqualified for bidding; (2) Where the relevant deposit fails to be paid according to the relevant provisions; (3) Where the application documents are incomplete or fail to meet the relevant provisions; (4) Where any other party is entrusted or where the relevant documents are incomplete or fail to meet the relevant provisions; or (5) Under any other circumstance prescribed by any law or regulation. Where, upon examination, the relevant requirements are satisfied, the qualification of an applicant for bidding or purchase shall be confirmed and the applicant shall be notified to participate in the activities of bid tendering, auction or hanging out a shingle. Where the means of bid tendering or auction is adopted, the parties that have obtained the qualification for bidding or purchase shall be no fewer than 3. 10. 4 An assigner shall keep confidential the information on an applicant; 10. 5 Where an applicant has any doubt over the documents of bid tendering, auction or hanging out a shingle, it may consult the assigner in written or oral form. The assignor shall facilitate the applicants in their consulting or inquiry of the relevant information on the assigned plot. According to the actual requirements, an assigner may organize the applicants to make an on-site inspection on the plot to be assigned. CHAPTER XI IMPLEMENTATION - TENDERING 11.1 Bid Tendering The administrative department of land and resources at the municipal or county level shall, according to the time and place prescribed in an announcement, organize the bid tendering. A bidding shall be presided over by a presider of bid tendering, auction or hanging out a shingle. Before a bidding is started, the relevant presider shall open the bid box on the spot and seal it up upon examination. A bidder shall serve its bid documents and other relevant documents on the designate bidding place within the prescribed time limit and put its bid documents into the bid box upon registration by the bid caller. Where it is allowed that the relevant bid documents may be submitted by mail, a bidder may post them yet provided that those documents are received before the expiration of bidding may they be deemed effective. Upon registration by the bid caller, it shall put its bid documents into the bid box before the expiration of bidding. After a bidder fires a bid, it can no long withdraw its bid documents and shall be responsible for its bid documents as well as relevant written commitments. A bidder may make supplementary statements on its submitted bid documents yet shall notify the relevant bid caller in written form and serve its supplementary documents on the bidding place before expiration for submission of the bid documents prescribed in the bid documents. 11.2 Bidding Where a bid caller invites all the bidders according to the schedule and place prescribed in an announcement on assignment based on bid tendering. The bidding shall be held by a presider of bid tendering, auction or hanging out a shingle. A bid presider shall invite the bidders or the designated representatives to examine the seal-up status of the bid box and open it in the presence of all parties. After a bid box is unsealed, the bid presider shall organize an examination of the bid documents within the bid box in a document-by-document manner. Upon confirmation that nothing is wrong, the work staffs shall unseal it in public, announce the names of bidders, bidding prices as well as other major contents of bid documents. Transcripts shall be made in process of bid opening. 11.3 Bid evaluation Where a bid winner is determined according to the principle that "one who offers the highest price wins", it is not so required that a bid evaluation group shall be established. Where a bid winner is determined according to the principle that "one who has the best comprehensive conditions wins", the relevant bid caller shall establish a bid evaluation group. 11.3.1 A bid evaluation group shall be composed of an assigner and the relevant experts in odd number of more than 5. The relevant regions with mature conditions may establish a database of experts in land evaluation, wherefrom by selecting experts, a bid evaluation group is established before each bidding. 11.3.2 A bid caller shall adopt the necessary measures so as to guarantee that a bid evaluation is carried out under strict confidentiality. 11.3. 3 A bid evaluation group may request the relevant bidders to make necessary clarification or statement on any content that is not so clarified in the bid documents, yet the clarification or statement shall not overstep the scope of what the bid documents render or change the substantial contents thereof. 11.3.4 A bid evaluation group shall conduct effective examination on the bid documents. Under any of the following circumstances, it shall be deemed an ineffective bid document: (1) Where any bid document is not sealed up; (2) Where any bid document bears neither any seal of a bidder nor any signature of the legal representative thereof; (3) Where the bid documents are incomplete, or the contents thereof are incomplete or fail to satisfy the relevant provisions; (4) Where a bidder has two or more quotations for a same subject matter; (5) Where, in the case of an entrusted bidding, the entrustment documents are incomplete or fail to satisfy the provisions; and (6) Under any circumstance where a bid evaluation group deems the bid documents are invalid. 11.3.5 Requirements for Bid Evaluation A bid evaluation group shall, according to the standards for and methods of bid evaluation determined in the bid documents, score the bid documents in a comprehensive manner and decide the candidates for bid winners according to the results of comprehensive scoring. A bid evaluation group shall, according to the results of bid evaluation, determine the sequence of the candidates for bid winners according to the results of comprehensive scoring, except for anyone that offers a price lower than the base price or base price of bidding. Where the comprehensive scores of two or more applicants are the same, they shall be ranked according to the quotations. In the case of a same quotation, the applicants of a same comprehensive score shall be ranked through an on-site bidding. Where the bidding prices of all the bidders are lower than the base price of bidding or their bidding offers fail to satisfy the requirements for the base price of bidding, the bidding shall be terminated. 11.4 Determination of Bidding A bid caller may determine a bid winner from among the candidates for bid winners recommended by a bid evaluation group or may authorize the bid evaluation group to directly determine a bid winner. Where a bid winner is determined according to the principles that "one who offers the highest price wins", the relevant presider shall, according to the result of bidding, directly announce a bid winner whose quotation is the highest and not any lower than the base price of bidding. Where two or more applicants have a same quotation, which is the highest at the same time, the relevant applicants with the aforesaid quotation may offer another quotation within the prescribed time limit or the means of an on-site bidding may be adopted to determine a bid winner. 11.5 Sending of a Notice on Bid Winning Where a bid winner is determined, the relevant bid caller shall send a notice on bid winning and notify the other bid winners of the results of bidding. A Notice on Bid Winning shall include the names of the bid caller and the bid winner, the subject matter of assignment, the time, place and price of a deal as well as the time and place as to the conclusion of a Contract on the Assignment of the State-owned Land Use Right by both parties. A Notice on Bid Winning shall have a legal force on the bid caller and the bid winner, thus, where a bid caller changes the result of bidding, or a bid winner fails to conclude a Contract on the Assignment of the State-owned Land Use Right according to the relevant stipulations or give up the land that it has won, it shall be subject to legal liabilities. CHAPTER XII IMPLEMENTATION - AUCTION 12.1 The administrative department of land and resources at the municipal or county level shall, according to the time and place prescribed in the announcement, organize an auction. An auction shall be held by a presider of the bid tendering, auction or hanging out a shingle. 12.2 An auction shall be conducted according to the following procedures: (1) An auction presider announces the commencement of the auction; (2) The presider announces the attendance of competitive buyers; where any base price is set, the assignor shall deliver to the presider its sealed-up base price of auction on the spot and the latter shall unseal it on the spot. (3) The presider announces the location, area, purpose of use, term for use, requirements of the planning indicators and time of construction of the plot subject to auction; (4) The presider announces the benchmark price, rules on price rise and margin of price rise and explicitly clarifies whether there is any base price. In the process of auction, the presider may, according to the spot situation, adjust the margin of price rise; (5) The auction presider announces the starting price as well as the commencement of the auction; (6) The competitive buyers raise their shingles to offer prices or quotations; (7) The presider continues the bidding upon confirming the prices or quotations offered by buyers or; (8) Where a presider of an auction announces a same price or quotation for consecutive 3 times whereas nobody else makes a response thereto or offers any higher price and if the announced price is not lower than the base price, a deal is done when the auction presider let fall the pestle. Thereafter, the presider announces the one who has offered the highest price as an auction winner. The result of an auction has a legal binding force on the auctioneer, buyer and assigner. Where the highest price or quotation is lower than the base price, the auction presider shall announce the termination of the auction. 12.3 Conclusion of the Confirmation on Striking a Deal After a winner is determined, the auctioneer and the buyer shall conclude a Confirmation on Striking a Deal on the spot. Where any auctioneer or buyer fails to conclude a Confirmation on Striking a Deal on the spot, it shall be subject to the relevant legal liabilities. The refusal of a buyer to conclude a Confirmation on Striking a Deal cannot resist the legal force of the result of action. Contents such as the name of the auctioneer or buyer, subject matter of assignment, time, place and price of the deal as well as the time and place for both parties concerned to conclude a Contract on the Assignment of the State-owned Land Use Right shall be indicated in the Confirmation on Striking a Deal. A Confirmation on Striking a Deal has a legal binding force on the auctioneer and buyer. Where an auctioneer changes the result of an auction or where a buyer fails to conclude a Contract on the Assignment of the State-owned Land Use Right and gives up the plot it has won, it shall be subject to legal liabilities. Transcripts shall be made in the process of an auction. CHAPTER XIII IMPLEMENTATION - LISTING The administrative department of land and resources at the municipal or county level shall, according to the time and place prescribed in an announcement on assignment, hang out a shingle. A shingle hung out shall be held by a presider of the bid tendering, auction or hanging out a shingle of land. 13.1 Publication of the Shingled-out Information As of the first day of hanging out a shingle prescribed in an announcement on hanging out a shingle, a shingle placer shall announce contents such as the location, area, term for use, requirements of the planning indicators, starting price, the rules for price rise as well as the margin of price rise of the shingled land on the trading place of land prescribed in an announcement on hanging out a shingle. The period of hanging out a shingle shall be no less than 10 workdays. 13.2 Quotation of a Buyer A buyer who meets the relevant requirements shall fill in a price quotation form. A region with mature conditions may adopt a computer-based quotation system. Where a buyer is under any of the following circumstances, it shall be deemed an invalid price quotation: (1) Where the form of price quotation fails to be received within the term for hanging out a shingle; (2) Where any party fails to fill the form of price quotation according to the relevant provisions; (3) Where the form of price quotation filled fails to comply with the application materials of a buyer; (4) Where any price quotation fails to comply with the rules for price quotation; or (5) Where any price quotation fails to meet the requirements of any case indicated in the documents of hanging out a shingle. 13.3 Confirmation of Price Quotation Where a presider hanging out a shingle who confirms a price quotation, it shall update the shingled price and continue to take new prices. In case two or more buyers offer a same price quotation, the first party that submits the price shall be deemed the price offering party. 13.4 Termination of Hanging Out a Shingle The termination of hanging out a shingle shall be decided by a presider hanging out a shingle. Where any base price is set, the relevant assignor shall deliver to the presider its base shingled-price sealed before the termination of hanging out a shingle and the latter shall unseal the confidential documents on spot. Upon termination of hanging out a shingle prescribed in an announcement, a buyer shall be present on the spot of hanging out a shingle and the presider shall announce the highest price quotation as well as the offering party thereof and further inquire whether the bidding shall be continued. 13.4.1 Where a presider hanging out a shingle who offers a highest price for consecutive 3 times, and if no buyer shows any intent to continue the bidding, the presider shall announce the termination of hanging out a shingle and determine the result of hanging out a shingle according to the relevant provisions: (1) Where the highest shingled price is not any lower than the base price, the presider shall announce a deal of assignment based on hanging out a shingle and the offering party that has offered the highest shingled price as a winner; (2) Where the highest shingled price is lower than the base price, the presider shall announce that an assignment fails to be done through hanging out a shingle. 13.4.2 Where a buyer expresses its intent to continue the bidding and if two or more buyers request for price quotation upon termination of hanging out a shingle, the presider shall announce that the assignment based on hanging out a shingle shall be turned into an on-site bidding as well as announce the time and place of the on-site bidding so as to determine a winner. 13.5 On-site Bidding An on-site bidding shall be held by a presider of the bid tendering, auction or hanging out a shingle of land and the relevant buyers that have obtained the qualification for hanging out a shingle bidding of land may participate in the on-site bidding. An on-site bidding shall be held according to the following procedures: (1) A presider announces the benchmark price, rules for bidding and margin of price rise and announce the start of the on-site bidding. The starting price of an on-site bidding shall be the sum of the highest price quotation upon termination of hanging out a shingle plus a margin of price rise. (2) A buyer that attends an on-site bidding shall offer price or quotation according to the rules for bidding; (3) The presider continues the bidding upon confirmation of the price or quotation offered by buyers and; (4) Where a presider announces, for consecutive 3 times, a same price or quotation yet nobody makes any response or quotation, and if the price is not lower than the base price, the presider let fall the pestle to strike a deal in the on-site bidding and announce the offering party of the highest price or quotation is the buyer. The result of deal shall have a legal binding force on the buyer and assignor. Where the highest price or quotation is lower than the base price, the presider shall announce the termination of the on-site bidding. Where no party attends an on-site bidding or no party offers any price or quotation, the party that offers the highest price upon termination of hanging out a shingle shall be the buyer, unless any offered price is lower than the base price of the assignment based on the shingle. 13.6 Conclusion of the Confirmation on Striking a Deal After a buyer is determined, a shingle placer shall conclude with the buyer a Confirmation on Striking a Deal. Where any shingle placer or buyer fails to conclude a Confirmation on Striking a Deal according to the relevant provisions, it shall be subject to legal liabilities. The refusal of a buyer to conclude a Confirmation on Striking a Deal cannot resist the law. A Confirmation on Striking a Deal shall include the name, subject matter of assignment, time, place and price of assignment, as well as the time and place for both parties to conclude a Contract on the Assignment of the State-owned Land Use Right. A Confirmation on Striking a Deal shall have a legal binding force on the shingle placer and buyer. Where any shingle placer changes the result of hanging out a shingle, or where a buyer fails to conclude a Contract on Assignment of the State-owned Land Use Right or gives up the land, it shall be subject to the relevant legal liabilities. Transcripts shall be made in the process of hanging out a shingle. CHAPTER IVX CONCLUSION OF AN ASSIGNMENT CONTRACT AND PUBLICATION OF THE RESULT OF ASSIGNMENT 14.1 Conclusion of a Contract on the Assignment of the State-owned Land Use Right After an activity of bid tendering, auction or hanging out a shingle is concluded, a bid winner or buyer shall, according to the Notice on Bid Winning or the Confirmation on Striking a Deal, conclude a Contract on the Assignment of the State-owned Land Use Right. 14.2 The deposit for bidding or purchase paid by a bid winner or buyer shall be taken as the earnest money for the assigned land upon winning the bidding. The deposit submitted by the other bidders or buyers shall be refunded by the assigner within 5 workdays upon conclusion of a bid tendering, auction or hanging out a shingle, with no interest accumulated. 14.3 Publication of the Result of Assignment Within 10 workdays as of the day when a bid tendering, auction or hanging out a shingle is concluded, an assigner shall publicize to the general society the result of the bid tendering, auction or hanging out a shingle on the website: www. landchina.com, as well as the tangible land market. The result of assignment that shall be publicized include the location of land, area, purpose of use, development, grade of land, capacity, term for assignment, way of land supply, assignee, trading price and trading time. An assigner shall publicize the result of assignment and charge no relevant fee from the assignee. CHAPTER XV VERIFICATION AND ISSUANCE OF AN APPROVAL FOR CONSTRUCTION LAND AND LAND DELIVERY The administrative department of land and resources at the municipal or county level shall verify and issue an Approval for Construction Land to the assignee, and shall deliver the land to the assignee according to the time and conditions determined in the Contract on the Assignment of the State-owned Land Use Right as well as an Approval for Construction Land. CHAPTER XVI HANDLING OF LAND REGISTRATION A assignee shall, according to the stipulation of the Contract on the Assignment of the State-owned Land Use Right, pay off the fees for the assignment of the state-owned land use right, apply for land registration according to law, collect the License for the State-owned Land Use Right and obtain the state-owned land use right. CHAPTER XVII ARCHIVAL FILING OF MATERIALS After all the formalities for assignment are concluded, the administrative department of land and resources at the municipal or county level shall sort out the relevant materials and documents in links such as the application, examination and approval, bid tendering, auction and hanging out a shingle as well as conclusion of contract in the process of land assignment, and put them on archives according to the relevant provisions. The materials of land assignment shall include: (1) Application materials of an applicant; (2) Land conditions and the relevant materials; (3) Materials of land evaluation; (4) Base price of land and collective decision-making records; (5) A plan of land assignment by means of bid tendering, auction or hanging out a shingle; (6) A reply to a land assignment plan; (7) Documents of assignment by means of bid tendering, auction or hanging out a shingle; (8) Transcripts in the implementation of bid tendering, auction or hanging out a shingle; and (9) Notice on Bid Winning or Confirmation on Striking a Deal. (10) Contract on the Assignment of the State-owned Land Use Right as well as the publication materials of the result of assignment; and (11) Any other material that shall be put on archives. Attachments: omitted |
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