direct transit with overnight connection less than 24 hours. can person leave airport overnight?

direct transit "Foreigners are able to apply for a Temporary Entry Permit to leave the port for city sightseeing or going to a dock or a railway station. .."
passport holder nationality not eligible for 72 hours transit. ticket is confirmed arrival 18h00 Shanghai and departure 10h00 from Shanghai next day.
WHERE and WHEN does the person apply for the temporary entry permit?? Main reason would be to go to city for sleep in bed, also bit of sightseeing.