Petroleum is a particularly important business object, affecting the national economy and politics. Therefore, import and export of petroleum is regulated by Vietnamese law as a conditional business line and limited to investment subjects. Below, HTLaw will summarize some regulations on petroleum import and export industry in Vietnam.
- A. For foreign-invested economic organizations:
- B. For Vietnamese investors
A. For foreign-invested economic organizations:
Schedule of WTO commitments:
Foreign investors are not allowed to exercise distribution rights to crude oil and processed oil.
Law of Vietnam:
Circular 34/2013/TT-BCT dated December 24, 2013
Foreign-invested economic organizations may not exercise export rights to petroleum and oils obtained from bituminous minerals, in raw form; crude oil; condensate, and others. In case a foreign investor is a petroleum contractor according to the provisions of the Petroleum Law, he is entitled to export the oil and gas part under his/her ownership.
Foreign-invested economic organizations may not exercise the right to import oil derived from petroleum and oils obtained from bituminous minerals, except crude oil; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, the basis of which such preparations; waste oil.
Foreign-invested economic organizations may not exercise distribution rights to crude oil and processed oil, including petroleum and oils obtained from bituminous minerals, in raw form; petroleum oils and oils obtained from bituminous minerals.
Foreign-invested economic organizations may produce petrol and oil with conditions consistent with the approved planning.
B. For Vietnamese investors
I. Conditions for petroleum import and export
1. Enterprises established in accordance with the law
2. Having a dedicated wharf located in the international port system of Vietnam, ensuring the reception of petroleum tankers or other means of petroleum transport with a tonnage of at least seven thousand tons (7,000 tons), belonging to the State’s ownership. owned or co-owned or leased for five (05) years or more.
3. Have a warehouse to receive imported petrol and oil with a minimum capacity of fifteen thousand cubic meters (15,000 m3) to directly receive petroleum from petrol tankers and other specialized petrol and oil transport vehicles, owned by the enterprise or jointly owned or leased by a trader providing petroleum services for five (05) years or more.
4. Having a vehicle for domestic petroleum transportation owned by an enterprise or jointly owned or leased by a trader providing petroleum services for five (05) years or more.
5. Having a petroleum distribution system: At least ten (10) retail stores owned or owned and co-owned by the business, at least forty (40) general agents or retailers of gasoline oil under the distribution system of traders.
6. Traders engaged in the export and import of jet fuel are not required to have a distribution system specified in Clause 5 of this Article but must have a vehicle for refueling and refueling of jet fuel owned or co-owned by the trader.
II. Competence, dossiers, and order of granting petrol and oil import and export business licenses
1. Authority to grant new, supplement, amend and re-grant
Ministry of Industry and Trade
2. Dossier of application for a license to trade in petrol and oil import and export
For the new issues, the dossier includes:
a) An application form for a license to import and export petrol and oil, made according to Form No. 1 in the Appendix to this Decree;
b) Copy Certificate of business registration;
c) A list of material and technical facilities in service of petrol and oil trading as prescribed in Clauses 2, 3, and 4, Article 7 of this Decree, enclosed with supporting documents;
d) List of petrol and oil retail stores owned or owned and co-owned, a list of general agents and agents in the trader’s petroleum distribution system according to the above conditions, enclosed with supporting documents.
3. Procedures for granting a petrol and oil import and export business license
a) The trader sends one (01) dossier to the Ministry of Industry and Trade.
b) In case there are not enough valid dossiers, within seven (07) working days from the date of receiving the trader’s dossier, the Ministry of Industry and Trade shall make a written request to the trader to supplement.
c) Within thirty (30) working days from the date of receipt of a valid application, the Ministry of Industry and Trade is responsible for reviewing, appraising, and granting a petrol and oil import and export business license according to Form No. 2 in the Appendix attached to this Decree for the traders. In case of refusal to grant a license, the Ministry of Industry and Trade must reply in writing and clearly state the reasons therefor.
The petrol and oil import and export business license is valid for five (05) years from the date of renewal.
According to the regulations of the Ministry of Finance.
V. Revoking the license to export and import petrol and oil
Authority to withdraw: Ministry of Industry and Trade
– Traders do not continue to conduct import and export business of petrol and oil for a period of one (01) quarter or more;
– The trader goes bankrupt according to the provisions of law;
– The trader does not fully satisfy the conditions for export and import business as prescribed in Article 7 of this Decree;
– The trader fails to store petrol and oil according to the provisions of Article 31 of this Decree;
– Traders commit repeated violations or re-violations of regulations on quality assurance of petrol and oil circulating on the market in this Decree and other cases as prescribed by law.
VI. Import and Export Limits
(Article 12 Circular 38/2014/TT-BCT)
1. Registration dossier is one (01) set, including:
a) A written request clearly stating the registered quantity and type of petrol and oil to be assigned the minimum import limit.
b) Report on the import of petrol and oil of the unit in the year.
2. Traders engaged in petroleum import and export business shall send one (01) set of registration dossiers for registration of the minimum import limit of petrol and oil of the “next year” to the Ministry of Industry and Trade before November 15 of the current year.
3. Within thirty (30) working days from the date of receipt of registration dossiers of petrol and oil importers and exporters, the Ministry of Industry and Trade shall assign the minimum limit on petroleum import to enterprises. industry, by type of petroleum.
4. In case the trader does not assign the minimum import limit of petrol and oil to the trader, the Ministry of Industry and Trade shall reply in writing and clearly state the reason.
5. In case there is a need to adjust the minimum import limit of petrol and oil, the trader shall send a written request for an adjustment to the Ministry of Industry and Trade before September 30 every year.
– Only domestic petrol and oil storage facilities and means of transport may be rented from traders providing petroleum services. It is not allowed to rent warehouses and means of domestic petroleum transportation from other key traders.
– Comply with the provisions of the law on “fire prevention, fighting and environmental protection” during business operations.
– Only transshipment, oil, and gas on board at the positions prescribed by the Ministry of Transport of the People’s Committee of the province or city directly under the Central Government; transshipment, to the side of fuel from large ships or other means of transport that Vietnamese ports cannot directly receive as prescribed by port authorities.
– Jointly take responsibility for violations committed by general agents, agents, and traders who receive the right to retail petrol and oil under their distribution system in petrol and oil trading activities in accordance with the law.
– Uniformly apply the retail price of petrol and oil throughout its distribution system, except for the case of selling petrol to a “distributor” of petrol.
To save time learning about the law, filling out forms, waiting to submit the dossier, you can contact HTLaw for advice and support for Business license for export and import of petrol and oil services.
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