(APPROVED BY THE MUNICIPAL GOVERNMENT OF SHANGHAI ON 4TH JANUARY, 1998 )

The Measures are formulated in accordance with The Forest Law of the People’s Republic of China and its Rules and Regulations for Implementation, Notice on the Further Strengthening of the Protection and Administration of Forestland Dispatched by the Office of the State Council to the Ministry of Forestry (the 32nd Document issued by the Office of the State Council), and The Provisions of Shanghai for the Administration of Afforestation, in an effort to safeguard the achievements of suburban afforestation in Shanghai and strengthen the administration of requisitioned and occupied forestland.

I. No requisition, occupation, or borrowing for use without authorization of any kind of forestland within the territory of the suburban county or districts in Shanghai is allowed. Destruction of forestland for housing is prohibited. Requisition and occupation of forestland for city infrastructure construction must be examined and approved by the Municipal Bureau of Agriculture and Forestry, and be reported to the Municipal Government of Shanghai for ratification. Procedures for the use of forestland shall be processed only after forest compensation, forestland compensation, restoration fee for forest vegetations, and subsidy for labor displacement have been paid. No requisition or occupation of forestland is, in principle, allowed for other types of construction.

II. Units that apply for the requisition and occupation of forestland shall supply the following documents:
A. The application for the requisition and occupation of forestland;
B. The project plan approved by the competent planning administration above the county or district level following the procedures for the state infrastructure, or other documents of ratification;
C. The ichnography of the requisitioned and occupied forestland and the inventory of forests and other ground appendage.
As for the forestland where trees need to be cleared of, a logging application is also required of the units that own the proprietary right of or possess the right of use of the forestland.
       
III. The compensation for the requisitioned and occupied forestland shall be in accordance with the following standards:
A. Compensation for forests
1.  Shelter-forest: The compensation for shelter-forest shall be calculated on the basis of the investment in the whole process from afforestation to cultivation (including fertilizer cultivation and management, pest prevention, fire prevention, etc., the same applying to the following) plus the added value of the forest, or the exact value of the forest on the forestland at the time of requisition and occupation. The interim compensation for each mu of the forest in the year of afforestation is set at RMB 1,000 yuan and there shall be an additional increase of RMB 500 to 800 yuan with each of the passing year.
2. Commercial forest: The same as that for shelter-forest.
3. Economic forest (orchards, mulberry tree gardens, the same applying to the following) and bamboo forest: The compensation for economic forest shall be calculated on the basis of the investment in the whole process from afforestation to cultivation plus the added value of the forest, or be calculated on the basis of three to five times of the average output value per mu three years prior to the requisition and occupation. The interim compensation for each mu of the forest before yield is set at RMB 1,500 to 5,000 yuan and at RMB 5,000 to 30,000 yuan after yield.
4. Forest for special purpose (including national defense forests, experimental forests, maternal woods, environmental protection forests, scenic forests, forests at scenic spots and historical sites, memorial forests, natural reservation forests, and forests of rare and valuable seedlings, the same applying to the following): The compensation for forest for special purpose shall be calculated on the basis of two to three times of that for the shelter-forest, or be calculated on the basis of the exact value of the forest at the time of requisition and occupation. The interim compensation for each mu of the forest in the year of afforestation is set at RMB 2,000 to 3,000 yuan and there shall be an additional increase of RMB 1,000 to 2,4000 yuan with each of the passing year.
5. Nursery stock: The compensation for nursery stock shall be calculated on the basis of the average output value of the year in question or three years prior to the requisition and occupation. The interim compensation is set at RMB 1,500 to 2,000 yuan for each mu of the ordinary annual commercial forests, RMB 2,500 to 3,000 yuan for biennials, and RMB 3,500 to 6,000 yuan for triennials and above. The compensation for rare evergreen nursery stock shall be calculated on the basis of two to five times of the compensation for the ordinary commercial forests or be negotiated personally.
6. The “four-sided” forest: The compensation for the “four-sided” forest shall be calculated in accordance with the investment in the whole process from afforestation to cultivation plus the added value. The interim compensation for each of the ordinary commercial tree is set at RMB 5 yuan in the year of planting and there shall be an additional increase of 3 to 5 yuan with each of the passing year. The compensation for rare evergreen trees shall be calculated on the basis of 2 to 5 times of the compensation for ordinary commercial trees or be negotiated personally.
The compensation for young appendages other than forests or nursery stock, and buildings on the forestland shall be calculated in accordance with relevant rules and regulations.
B. The restoration fee for forest vegetations
The interim restoration fee for forest vegetations is set at RMB 30,000 yuan per mu, with the reclamation fund being exempted. Units that have requisitioned and occupied forestland and have made up for the forestland requisitioned and occupied in the vicinity shall not pay the restoration fee for forest vegetations.
C. Compensation for forestland
The compensation for forestland shall be conducted in accordance with the standards of and regulations on the requisition and occupation of vegetable plots in Shanghai.
D. Subsidy for labor displacement
For subsidy for labor displacement, refer to the provisions stipulated in The Measures for the Displacement of Agricultural Population Incurred by the Requisition of Collectively Owned Land for Apartment Construction. (No. 62 Order issued by the Municipal Government of Shanghai)

IV. Trees and nursery stock that have been logged or excavated in the process of requisition and occupation of forestland shall be returned to the original authorized units or proprietors. Excavated trees and nursery stock that are suitable for planting elsewhere should be used for afforestation again after cultivation.

V. The compensation for forests and forestland shall be conducted on the principle of “the owner (or user) being the beneficiary”. Except for the compensation for individually owned forests, appendages and young crops that should be given to the individuals, all other compensation collected shall be given inevitably to the unit that owns the forestland and forests or possesses the right of use of the original forestland and forests. Compensation for forests and forestland shall be used exclusively for the reconstruction and management of forests and the restoration of forest vegetations and the development of forestry.

VI. The Municipal Bureau of Agriculture and Forestry shall be responsible for the collection of the restoration fee of forest vegetations and shall write the receipt for the administrative and operating expenses uniformly supervised and made by the Municipal Financial Bureau. In line with the provision of off-budget funds management, the restoration fee of forest vegetation shall be administrated through a specific financial account of revenue and expenditure and shall be specifically used for the restoration, management and protection of forest vegetation, in an effort to ensure a basic balance between the area of newly-constructed forestland and of the requisitioned and occupied forestland or a slight increase of the former.

VII. The authorized use of the requisitioned and occupied forestland must be supervised by personnels dispatched by the local competent administration of forestry at the municipal, county, or district level.
    
VIII. Unless permitted by the Municipal Bureau of Agriculture and Forestry, no units or individuals shall ratify without authorization the requisition and occupation of forestland. Units and individuals that conduct forestland requisition and occupation against The Administrative Measures or occupy forestland by other illegal means shall be punished in conformity with the relevant laws, rules and regulations.
    
IX. The right to interpret The Administrative Measures resides in the Municipal Financial Bureau, the Municipal Pricing Bureau, and the Municipal Bureau of Agriculture and Forestry in accordance with their respective scopes of responsibilities. The Municipal Bureau of Agriculture and Forestry shall be responsible for the implementation of The Administrative Measures.

X. The compensation standards stipulated in The Administrative Measures shall not apply to green lands and forests under the jurisdiction of the official gardening administration.

XI. The Administrative Measures shall go into effect as of the date of promulgation.