Ministry of Commerce Announcement No.48, 2019 Total Allowable Import volume of Crude Oil in Non-state Trade in 2020, Application Conditions Application Procedures

In accordance with the Regulations of the People's Republic of China on the Administration of Import  Export of Goods  China's relevant commitments upon its accession to the WTO, the Ministry of Commerce has formulated the Total Allowable Import Volume of Crude Oil in Non-State Trade in 2020, Application Conditions  Application Procedures, which are hereby promulgated.

                                                                           The Ministry of Commerce

                                                                                   October 31, 2019

Total permitted import of crude oil through non-state trade in 2020,

Application conditions  procedures

I. Import allowance for crude oil through non-state trade in 2020

The non-state trade import allowance for crude oil in 2020 is 202 million tons.

2. Application conditions

(1) In recent two years ( 2018 to October 2019, the same below), the applicant shall have the performance of crude oil import  the qualification to use imported crude oil as approved by the national industry competent department.

(2) It shall have the right to use a crude oil water transport terminal with a capacity of no less than 50,000 tons ( a railway port with an annual capacity of 2 million tons),  the right to use a crude oil storage tank with a capacity of no less than 200,000 cubic meters.

(3) A foreign trade operator whose bank credit is  less than USD 20 million ( RMB 120 million).

(4) It shall have at least 2 petroleum international trade professionals.

(5) The enterprise shall operate in accordance with the laws  regulations, comply with the laws  regulations on production safety, environmental protection, taxation, customs  foreign exchange administration,  have no violations of laws  regulations that have  been rectified.

3. Application materials

The applicant shall submit the following materials:

(1) Application letter. It includes the basic information of the company, the explanation of meeting the application conditions, the application reasons, the specific plans of crude oil procurement, production, use  sales,  the introduction of the professionals engaged in international oil trade, etc.

(2) Basic certification materials of the company. Including the copy of the copy of the Business License of the Enterprise legal Person, the copy of the Declaration Registration Certificate of the Consignee  consignor of import  Export goods  the copy of the Organization Code Certificate.

(3) certificate of credit line issued by the bank. The original official documents issued by the head office  directly affiliated branches of each bank shall be provided, among which, the subsidiaries of central enterprises can provide the collective credit granting certificate of the head office.

(4) Provide the original agreement on the use of crude oil terminal ( railway port), storage tanks  other facilities,  the copy of the certificate documents of loading  unloading capacity  storage tank capacity of the terminal (railway port) issued by the investment administrative department at  above the prefecture-level ( other departments of environmental protection, fire protection, etc.).

(5) The qualification document for the use of imported crude oil approved by the state department in charge of industry.

Processing enterprises newly obtained crude oil non-state trade import qualification in 2019 are  required to provide the materials in Item (2), (3), (4)  (5),  other application enterprises are required to provide the above materials. All applicants shall be responsible for the authenticity of the above materials. The original shall be provided for verification along with the copy,  the authenticity certificate of the application materials signed by the legal representative of the enterprise shall be provided.

The Ministry will seek information  relevant departments on the compliance of the declared enterprises with national laws  regulations.

Iv. Principle of distribution

(1) Batch distribution. The first batch of grants for 2020 will be issued to eligible enterprises by December 31, 2019. The remaining grants will be issued in batches as appropriate.

(2) Additional adjustments. In accordance with the actual import situation of enterprises, business needs  the application of new qualified processing enterprises, the amount of grant shall be added  adjusted in time.

(3) Strict assessment. Enterprises without import performance in the past two years will no longer arrange the allowable amount; The allowable amount will be calculated based on the actual implementation of the qualified enterprises in 2019  the new legal capacity.

According to the Regulations of the People's Republic of China on the Administration of Import  Export of Goods, the enterprises that cannot complete the holding of import permits should return the permits that cannot be completed in the current year to the Ministry of Commerce through the local competent commercial departments  central enterprise group companies before September 1 of the current year.

5. Application  audit procedures

Local enterprises shall apply to the provincial commercial administrative departments  they are located,  the subsidiaries of central enterprises shall apply through the group headquarters.

After collecting the list of qualified enterprises  application materials, the provincial commercial administrative departments  central enterprises shall send the application  relevant materials to the Administrative Affairs Service Hall of the Ministry of Commerce by mail, express delivery  in-person submission before November 20, 2019. Overdue applications will  be accepted.

Address: Window 18, Administrative Affairs Service Hall, Ministry of Commerce, No.2 East Chang 'an Street, Beijing, China; Contact person: Li Youping, Tel: 010-65197862; Zip code: 100731. The envelope  logistics carton that encapsulates the application materials should be marked with "Item Number: 18010-001".

After reviewing the application materials of the enterprises, the Ministry of Commerce will allocate the import permits to the qualified enterprises before December 31, 2019,  distribute the distribution results to the relevant provincial commercial administrative departments  central enterprises.

6. Management requirements

The enterprises that have obtained the permitted import amount of crude oil for non-state trade shall abide by the relevant laws  regulations of the State such as production safety, consciously abide by the laws  regulations,  maintain the normal import order. Those who violate relevant laws  regulations will be punished in accordance with the regulations of the People's Republic of China on The Administration of Import  Export of Goods  measures for the Administration of Automatic Import License of Goods once verified.

Source: Ministry of Commerce of the People's Republic of China