Original Title: Measures for the Recognition and Fee Exemption of Low-Risk Industrial Projects Funded by Private Investment in the Lingang New Area

To thoroughly implement the important decisions and arrangements of the Municipal Party Committee and Municipal Government regarding the further optimization of the business environment, and to further standardize the identification and fee reduction for low-risk industrial projects in the Lingang New Area, these Measures are formulated in accordance with the “Notice on Further Refining and Improving the Reduction of Engineering Survey and Supervision Fees and the Cancellation of Construction Drawing Design Document Review for Socially Invested Low-Risk Industrial Projects in the Municipality” (Shanghai Construction Review Reform Office [2019] No. 3),the “Overall Work Plan for Shanghai’s New Round of Reforms in Obtaining Construction Permits Aligned with the World Bank’s Business Environment Assessment” (Shanghai Municipal Government Office [2020] No. 5), and other relevant documents, and in light of the actual conditions of the Lingang New Area, these Administrative Measures are hereby formulated.

I. Scope of Application

The term “low-risk industrial projects” as used in these Measures must comply with the requirements set forth in the “Overall Work Plan for the New Round of Reforms in Shanghai’s Building Permit Process to Align with the World Bank’s Business Environment” (Shanghai Municipal Government Office Document No. 5 [2020]).

II. Division of Responsibilities

The Lingang New Area Investment Project Approval and Review Center (hereinafter referred to as the “Approval and Review Center”) shall coordinate the identification of low-risk industrial projects and the management of fee reductions, and shall be responsible for the list management, implementation supervision, and policy dissemination of such projects.

Implementing departments shall perform their respective duties in accordance with the identification and fee reduction procedures for low-risk industrial projects, formulate detailed implementation rules, and be responsible for implementing fee reductions. Implementing departments include the Lingang New Area Administrative Service Center, the Lingang Branch of the Shanghai Land Reserve Center (hereinafter referred to as the “Lingang Land Reserve Branch”),, the Construction and Transportation Management Office of the Lingang New Area (hereinafter referred to as the “Construction and Transportation Office”), and the Shanghai Lingang New Area Urban Construction and Transportation Affairs Center (hereinafter referred to as the “Construction and Transportation Center”).

III. Implementation Procedures

(1) Identification of Low-Risk Industrial Projects

1. Application

After completing project approval or filing, the construction entity shall log in to the “Shanghai Engineering Construction Project Approval Management System” (the Joint Review and Sharing Platform for Construction Projects, hereinafter referred to as the “Approval Management System”) and independently submit an application for a low-risk industrial project.

2. Review

Upon receiving the application, staff at the Administrative Service Center shall review the project’s planning parameters, project information, and other relevant details in accordance with applicable regulations. Upon approval, they shall enter the review comments in the “Approval Management System” and grant approval, thereby completing the identification of the low-risk industrial project. For projects subject to objections, the center must seek opinions from relevant departments; approval shall be granted only after obtaining their consent, thereby completing the identification process.

(2) Inclusion in the Low-Risk Industrial Project Management List

The Administrative Service Center issues a confirmation notice for the identified low-risk industrial projects and, through the OA system, copies the project confirmation notice to relevant departments such as the Lingang Land Reserve Sub-center, the Construction and Transportation Division, the Construction and Transportation Center, and the Approval and Review Center.

The Approval and Review Center establishes a management list of low-risk industrial projects based on the project confirmation forms and regularly tracks project progress.

(3) Fee Exemptions for Low-Risk Industrial Projects

For projects included in the Low-Risk Industrial Project Management List, exemptions for land survey, construction drawing review, and engineering supervision fees shall be implemented in accordance with relevant regulations. After approval by the Finance Division, the exempted amounts shall be allocated to the annual special budgets of the respective implementing departments; any costs exceeding the subsidy cap shall be borne by the enterprise.

1. Land Survey

The Lingang Land Reserve Sub-Center shall organize and implement the exemption of survey fees, which shall be implemented separately for two scenarios: land granted through auction and self-owned land.

For newly granted land projects, the Lingang Land Reserve Sub-Center shall organize relevant developers to conduct surveys of the newly granted land. Geological surveys must be completed prior to land grant, and the geological survey report shall be provided to the construction unit concurrently with the land grant.

For projects on privately owned land, the construction unit shall commission a surveying firm to conduct the survey, retain the relevant supporting documents, and submit them to the service window along with the project confirmation form and letter of commitment. After review by staff of the Lingang Land Reserve Sub-center, the exemption amount will be calculated in accordance with the relevant regulations, and the exemption will be implemented.

2. Review of Construction Drawings

The Construction and Transportation Division is responsible for organizing and implementing the reduction or exemption of construction drawing review fees. After the construction unit independently commissions a review company to conduct the review, it shall retain the relevant supporting documents and submit them to the service window together with the project confirmation form and the letter of commitment. Following review by staff of the Construction and Transportation Division, the reduction or exemption amount will be calculated in accordance with the relevant regulations, and the reduction or exemption will be implemented.

3. Construction Supervision

The Construction and Transportation Center is responsible for organizing and implementing the reduction of engineering supervision fees. After the construction unit independently commissions an engineering supervision firm to perform supervision, it shall retain the relevant supporting documents and submit them to the service window together with the project confirmation form and the letter of commitment. After review by staff of the Construction and Transportation Center, the reduction amount will be calculated in accordance with the relevant regulations, and the reduction will be implemented.

IV. Other Provisions

1. The reduction or exemption of the aforementioned fees does not alter the statutory responsibilities of the construction entity, engineering survey unit, engineering supervision unit, and construction drawing review agency regarding engineering quality and safety management;

2. These Administrative Measures shall take effect from the date of issuance. Matters not explicitly addressed herein shall be implemented in accordance with the relevant provisions of the “Overall Work Plan for Shanghai’s New Round of Reforms to Align Building Permit Procedures with the World Bank’s Business Environment Assessment”;

3. The Lingang New Area Management Committee is responsible for interpreting these Administrative Measures.

Attachment:

1. Confirmation Form for Social Investment Projects in Low-Risk Industries in the Lingang New Area

2. List of Socially Invested Low-Risk Industrial Projects in the Lingang New Area

3. Declaration of Authenticity of Application Materials

Appendix 3

Declaration of Authenticity of Application Materials

Our company solemnly declares that all original documents submitted during the application process for the exemption of survey, design review, and supervision fees for low-risk industrial projects are authentic and valid, and that the copies are consistent with the originals.

Should this company conceal relevant information or provide false materials in the application, this company shall bear all legal consequences.

Company Seal:

Signature of Legal Representative:

Date: Month Year