Procedures for the Administration of the Collection of Shanghai Sea Area Use Fees

(January 4, 2019)

SMPG D [2019] No.3

Article 1 (Purpose and Basis)

With a view to regulating the collection and management of the use fees of sea areas in this Municipality, safeguarding the rights and interests of the owners of the national sea area and the lawful rights and interests of the sea area users, and promoting the rational development and sustainable use of the sea area, these Procedures are formulated according to the Law of the People's Republic of China on the Use of Sea Areas, the Administrative Procedures of Shanghai for Use of Sea Area and the Procedures for Reduction of the Use Fees of Sea Area (Cai Zong [2006] No. 24), the Notice on Strengthening the Administration of Collection of Use Fees of Sea Area (Cai Zong [2007] No. 10), the Notice on Management of Reduction of Use Fees of Sea Areas and Other Related Matters (Cai Zong [2008] No. 71), the Notice on Adjusting the Authority for Examination and Approval of the Exemption of Use Fees of Sea Area (Cai Zong [2013] No. 66), and the Notice on Adjusting the Collection Standard of Use Fees of Non-resident Islands in Sea Areas (Cai Zong [2018] No. 15) .

Article 2 (Paid Use of the Sea Area)

The sea area is owned by the State and the system of paid use is exercised. Every unit and individual engaged in production and business activities within the jurisdiction of this Municipality must pay the sea area use fee in accordance with the provisions of these Procedures, receive an immovable property  title certificate, and obtain the right to use the sea area, except as otherwise provided for by the State.

Article 3(Collection Standard)

For the sea use project transferring sea area use rights by way of application for approval, the collection of sea area use fee shall be according to the specified sea use type, sea area category and the corresponding sea area use fee standard. The use fee standards for different sea use types, sea areas, etc., shall follow the relevant documents of the State and this Municipality.

If a sea use project with sea area use fee levied in accordance with the standards for agricultural use of sea changes the agricultural use before the replacement of the state-owned land use certificate, the sea area use fee shall be paid in accordance with the sea reclamation collection standard for sea-fill land reclamation.

Article 4 (Other Ways to Transfer)

In order to improve the efficiency of sea area resource allocation, apart from the national key construction sea-use projects, national defense construction sea-use projects, marine protected areas, controversial sea areas, sea areas involving public interest, and other sea use cases as prescribed by laws and regulations, in the same sea area with two or more units or individuals intending to use the sea, the right to use the sea area shall be granted, in accordance with the law, by adopting the method of bidding and auction.

For sea-use project with the right to use the sea area granted by means of bidding or auction, the amount of the sea area use fee shall be the transaction price of the bidding and auction.

When the municipal marine department, in conjunction with the municipal finance, development and reform departments, formulate bidding and auction plans for sea area use rights, the unit price of bidding and auction shall not be lower than the sea use fee collection standard of the same sea type and sea area.

Article 5 (Levy Method)

For such sea-use projects as land reclamation, non-permeable structures, sea-crossing bridges and sub-sea tunnels, the sea use fee is calculated once; for other sea-use projects, the sea use fee is calculated annually according to service life.

For the sea-use fee calculated for one-time, the lump-sum payment shall be made before the first registration of the immovable property. If the sea-use fee amount of a sea-use project exceeds 100 million yuan and the sea-use unit and individual have real difficulty in making a one-off payment, the payment in installments may be approved by the marine department and the financial department at the same level. The time limit for the installment payment of the sea-use fee shall not exceed 3 years, and the first payment of the sea-use fee shall not be less than 50% of the amount of the sea-use fee payable. The marine department shall sign an agreement on the installment payment of the sea-use fee with the sea users, clarify the specific time and amount of installment payment of the sea-use fee, and supervise the sea-use units and individuals to pay the sea-use fee in full and on time.

For sea-use fees collected annually, the sea-use fee shall be paid in the first year before the first registration of the immovable property; from the second year, the payment of sea-use fee of the current year shall be made before the end of June each year.

Article 6 (Less Than One Year's Calculation)

1. For those whose service life is less than one year, the sea-use fee shall be calculated according to the following regulations:

2. For the operational temporary sea use within 3 months (including 3 months) , the collection shall be made onetime at a rate of 25% of the annual levy standard;

3. For sea use for more than 3 months and within 6 months (including 6 months), the sea use fee shall be calculated at one time according to 50% of the annual levy standard; And

4. If the sea area is used for more than 6 months and within 1 year (including 1 year), the sea use fee shall be calculated at one time according to the annual levy standard.

Article 7 (Legal Exemption)

The following sea-use projects are exempt from sea use fee in accordance with the law:

1. Sea use for military purpose;

2. Sea-use wharves for official ships for the purpose of government administration, including public security frontier defense, customs, transportation port public security, maritime affairs, sea surveillance, entry and exit inspection and quarantine, environmental monitoring, fishery administration and inspection and other official ships;

3.Sea use for non-operating transportation infrastructure such as waterways, shelters (asylum) anchorages, navigation marks, cross-sea bridges and submarine tunnels with loan paid by the government; And

4. Sea use for teaching, scientific research, disaster prevention and mitigation, shipwreck search and rescue salvage, fishing port and other non-business public welfare undertakings.

Article 8 (Reduction by Application)

In addition to the statutory exemption from the sea use fee, the following types of operational sea use may be reduced or exempted from the sea use fee within a certain period of time upon approval:

1. Sea-use public facilities such as anchorages other than shelter from the wind (asylum), and access to the sea;

2. Fixed assets investment projects examined or approved by the State Council;

3. Breeding sea that has suffered from natural disasters or accidents with verified economic losses of more than 60% of normal income; And

4. The breeding sea for professional fishermen may be exempted from the sea use fee according to the sea area of not more than 30 mu per household. Professional fishermen mean households that belong to professional fishery towns, villages, and groups without land or with less than 0.1 mu of land per capita with rural land contractual operation rights, engaged in fishery production activities for a long time, and with the fishery net income accounting for over 60% of the total household net income.

Article 9 (Reduction Procedure)

For sea-use projects that meet the requirements of Articles 7 and 8 of these Procedures, the applicant shall, within 30 days from the date of receipt of the Notice of Approval of the Sea-Use Project, submit a written application for the reduction and exemption from sea use fees in accordance with the following provisions:

1. For reduction and exemption from the payable sea use fees of the sea-use project examined and approved by the State Council, written applications shall be submitted to the Ministry of Finance and the Ministry of Natural Resources respectively; And

2. For Reduction and exemption from the payable sea use fees of the sea-use projects examined and approved by this Municipality, the applicant shall submit a written application to the municipal finance department and the municipal marine department respectively. Within 30 days after the municipal finance department and the municipal marine department accept the application for the reduction of sea use fees, the municipal marine department shall submit a preliminary examination opinion on the legality of applying for the reduction and exemption from the sea-use fee. After the examination and approval of the municipal finance department, the municipal finance department shall in conjunction with the municipal marine department send a joint approval in writing to the applicant.

The application for the reduction of sea use fee shall provide the reasons for, the amount of, and the time limit for, the reduction, and the materials that can prove the sea-use nature of the project.

Article 10 (Prohibited Matters)

The right to the sea use obtained in accordance with the statutory exemption from the sea use fee under Article 7 of these Procedures shall be prohibited from being transferred without authorization and from being used for business or disguised operation.

Article 11 (Change of Ownership)

If the sea use right obtained under Article 8 of these Procedures with the approved reduction or exemption from the sea use fee is transferred or if the sea use or the nature of sea use is changed with approval, the sea area assignee or the sea use right owner shall, in accordance with the provisions of these Procedures, go through the application formalities for reduction of sea use fee and for approval once again.

Article12 (Method of Collection)

The sea use fee is included in the budgetary outlays, and the “two lines of revenue and expenditure” management and “separation of collection and transfer” are implemented. When the sea use fee is levied, the marine department responsible for the collection shall issue a non-tax income payment statement to the sea-use unit or individual, and directly transfer the sea use fee through the bank.

Article 13 (Management of Turning in the Treasury)

Except for the full amount of sea use fees for the breeding sea use collected by this Municipality shall be turned in the municipal treasury, The sea use fees of other sea-use projects shall have 30% turned in the central treasury and 70% in the municipal treasury.

Article 14 (Statistical statements)

According to the statistics and reports on the sea use fee income prescribed by the State, the municipal marine and financial departments shall submit the statistical reports on the paid use of sea area in the previous year to the Ministry of Finance and the Ministry of Natural Resources before March 20 of each year, and simultaneously send a copy to the Office of the Financial Ombudsman of the Ministry of Finance in Shanghai.

Article 15 (Responsibility for Call)

If a sea user fails to pay the sea use fee on time, the marine department responsible for the collection shall make an order for payment within a prescribed time limit.

Article 16(Execution Period)

These Procedures shall be effective as of the date of issuance and shall be valid until November 30, 2023.

Shanghai Finance Bureau

Shanghai Oceanic Bureau

December 19, 2018