Ministry of Commerce Calls for Improving Land Statistics in Foreign Investment Section

On January 16, 2009, the Ministry of Commerce ("MOC") released the Circular on Reinforcing Land Statistics Regarding Foreign Investment (the "Circular"), effective the same date. The Circular reiterates that the applicant shall submit the relevant land approval documents, approved by a competent land authority to MOC or its local counterpart in jurisdiction, upon applying for the establishment of or change concerning a foreign-invested enterprise ("FIE"). In addition to the environmental impact assessment ("EIA") documentation, the applicant shall also include the corresponding statistics set forth in the EIA documents in its application documents for establishment, filed with MOC or its local counterpart, and the updated statistics set forth in the updated EIA documents in any application documents for change. The foregoing statistics shall include information about, among other things, the cost of facilities, equipment and land, land plot area, and floor area of facilities, etc. Although not specified in the Circular, relevant authorities have confirmed that the circular applies to manufacturing FIEs that have their own land and facilities, which are subject to land approvals. To a certain extent, the filing system specified in the Circular encourages concerned FIEs to strengthen land compliance.

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