2017 Total Allowable Import Volume and Application Conditions and Procedures of Non-state Trading of Crude Oil in 2018

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Total Allowable Import Volume and Application Conditions and Procedures of Non-state Trading of Crude Oil in 2018

I. Allowable import volume of non-state trading of crude oil in 2018

Allowable import volume of non-state trading of crude oil in 2018 is 142.42 million tons.
II. Application Conditions

(I) the enterprises who have crude oil import performance over the past two years or have the qualification for imports of crude oil approved by the competent industrial departments of the State;

(II) the enterprises that have the right to use crude oil terminals with a capacity of not less than 50 thousand tons (or railway ports of transshipment capacity of 2 million tons per year), and the right to use crude oil storage tanks of not less than 200 thousand cubic meters;

(III) foreign trade dealers whose bank credit is not less than USD 20 million (or RMB 120 million);

(IV) enterprises that have professionals being engaged in international oil trade (at least two);

(V) the enterprises that have not involved in smuggling, tax evasion, or arbitrage records or have not been subject to administrative and criminal punishment due to illegal operations in the past 2 years;

(VI) other factors to consider.

III. Application Materials

The following materials are required for application:

(I) application letter. includes the basic situation of the company, description for eligibility for application, application reasons, specific programs with respect to crude oil procurement, production, use or sale, introduction to professionals being engaged in international oil trade and others;

(II) copy of the qualified Duplicate of Business License after annual review bearing signature of the legal representative and copies of the Registration Form for Foreign Trade Operators or Qualification Certificate of Import and Export Enterprises or Operation Certificate of Foreign-funded Enterprises bearing seal of archival filing and registration (or the filing receipt obtained based on the Interim Administrative Measures for the Record-filing of the Incorporation and Change of Foreign-funded Enterprises), Registration Certificate of the Consignees and Consignors of Import and Export Goods for Customs Declaration and the Organization Code Certificate;

(III) supporting documents with respect to credit lines issued by banks. The originals of the official documents issued by the head offices or branches directly under the bank shall be provided; for the subsidiaries of the central enterprises, they may provide the collective credit certificate of the head office;

(IV) provide originals of the agreement on the use of crude oil terminals (or railway ports), the tank and other facilities, and copies of the supporting documents proving the handling capacity and storage capacity of the terminals (railway ports) issued by the competent investment departments above the prefecture level (or environmental protection, fire protection and other departments);

(V) crude oil import performance certificate from 2016 and January-October 2017 or the qualification for use of imports of crude oil approved by the competent industrial departments of the State. For import under proprietary trading, a copy of the customs declaration form is required, and in the event of import on an agent basis, the agency agreement or related service invoice shall be provided;

(VI) documents proving no smuggling and violation in 2016-2017 issued by the customs where the enterprise is located, and materials proving no tax evasion or exchange escaping or arbitrage issued by local taxation and foreign exchange management departments.

Processing enterprises having import qualification for non-state trading of crude oil granted by the Ministry of Commerce in 2017 are not required to provide materials in Items (II), (III), (IV), (V) and (VI) and all other enterprises applying for the allowable amount need to provide the above materials as required. All the applicants must be responsible for the authenticity of the above materials. When submitting copies, the originals should be provided for verification; moreover, the certificate bearing the signature of the legal representative proving the authenticity of the application materials is also required.

IV. Distribution Principle

(I) Release in batches. The first batch of allowable import volume in 2018 will be issued based on the actual implementation of the allowable import volume of crude oil of qualified enterprises during January-October 2017;

(II) Additional adjustment. It is required to timely add and adjust the allowable volume according to the actual import situation, business demand and the application made by new eligible processing enterprises;

(III) Strict assessment. No allowable volume will be granted to enterprises without imports in 2017; according to the Administrative Regulations of the People’s Republic of China on the Import and Export of Goods, for those enterprises that cannot complete the allowable import volume hold, they shall return the allowable volume that cannot be completed in the current year to the Ministry of Commerce via local commerce department or the group company of central enterprises prior to September 1 in the current year;

(IV) other factors to consider.

V. Declaration and Audit Procedures

Local enterprises must apply to the local commerce authorities at the provincial level, and the subsidiaries of the central enterprises must apply uniformly through the group headquarters.

The provincial commerce department and the central enterprises shall submit the summarized list of eligible enterprises and application materials thereof by mail, courier, personal delivery or other manners to the administrative service hall of the Ministry of Commerce prior to November 30, 2017; no application will be accepted thereafter.

Address: Li Youping, Window No.18, Administrative Affairs Service Hall, the Ministry of Commerce, No. 2 East Chang’an Avenue, Beijing; Tel: 010-65197862; postal code: 100731.The envelope of the application materials or the surface of carton should be marked “Item No.: 18010-001”.

After examining the application materials of the enterprises concerned, the Ministry of Commerce will distribute allowable import volume to eligible enterprises prior to December 31, 2017, and issue the distribution results to the relevant provincial commerce departments and the central enterprises.

VI. Relevant Requirements

Enterprises that obtain the allowable import volume of non-state trading of crude oil shall abide by the relevant laws and regulations on safety in production, consciously operate according to the law, and maintain the normal order of import. Those who violate any of the relevant laws and regulations, once verified, will be punished in accordance with the Administrative Regulations of the People’s Republic of China on the Import and Export of Goods, Administrative Measures for the Automatic Import Licensing for Goods and other relevant provisions.

Regulation Source: Ministry of Commerce People’s Republic of China