Circular 17/2021/TT-BCT amending Circular 38/2014/TT-BCT, detailing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading

CIRCULAR

Amending and supplementing a number of articles of the Minister of Industry and Trade’s Circular No. 38/2014/TT-BCT of October 24, 2014, detailing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading^[1]

Pursuant to the Government’s Decree No. 98/2017/ND-CP of August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

 Pursuant to the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading; and the Government’s Decree No. 95/2021/ND-CP of November 1, 2021, amending and supplementing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading;

At the proposal of the Director of the Domestic Market Department;

The Minister of Industry and Trade promulgates the Circular amending and supplementing a number of articles of Minister of Industry and Trade’s Circular No. 38/2014/TT-BCT of October 24, 2014, detailing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading.

Article 1. To amend and supplement a number of articles of the Minister of Industry and Trade’s Circular No. 38/2014/TT-BCT of October 24, 2014, detailing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading (below referred to as Circular No. 38/2014/TT-BCT), as follows:

1. To amend and supplement Clause 1, Article 1 as follows:

“1. This Circular details a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading (below referred to as Decree No. 83/2014/ND-CP), and the Government’s Decree No. 95/2021/ND-CP of November 1, 2021, amending and supplementing a number of articles of Decree No. 83/2014/ND-CP (below referred to as Decree No. 95/2021/ND-CP).”

2. To amend and supplement a number of clauses of Article 2 as follows:

a/ To amend Clauses 3 and 4 as follows:

“3. Petrol and oil seller means:

a/ A key trader or an enterprise empowered to act as the sole agent for selling all petrol and oil products of a petrol and oil factory (in case such factory does not directly sell finished petrol and oil products) to another key trader or to a petrol and oil distributor;

b/ A petrol and oil distributor that sells petrol and oil to another petrol and oil distributor or to production units for direct use.”

“4. Petrol and oil buyer means:

a/ A key trader that buys petrol and oil from another key trader;

b/ A petrol and oil distributor that buys petrol and oil from a key trader or from another petrol and oil distributor;

c/ A unit that uses petrol and oil to directly serve its production activities.”

b/ To add Clause 8 as follows:

“8. Global petrol and oil prices means prices of finished petrol and oil products traded in Singapore as announced by S&P Global Platts or another news agency of equivalent prestige and quality.”

3. To amend and supplement Article 6 as follows:

“Article 6. Checking and grant of certificates

1. A trader that wishes for grant, modification or re-grant of a certificate of eligibility for acting as a petrol and oil key trader; a certificate of eligibility for acting as a petrol and oil distributor; a certificate of eligibility for acting as a petrol and oil trading general agent; a certificate of eligibility for acting as a petrol and oil retail agent; or a certificate of eligibility for operating a petrol and oil retail station shall send 1 (one) dossier to the Ministry of Industry and Trade or provincial-level Department of Industry and Trade via the correspondence channel or the computer network to the address notified by the latter on its website.

2. Administrative procedures to be carried out by the Ministry of Industry and Trade

a/ Administrative procedures for grant or modification of a certificate of eligibility for acting as a petrol and oil key trader shall be carried out under Clause 3, Article 8 of Decree No. 83/2014/ND-CP.

b/ Administrative procedures for grant or modification of a certificate of eligibility for acting as a petrol and oil distributor shall be carried out under Clause 3, Article 14 of Decree No. 83/2014/ND-CP.

c/ Administrative procedures for grant or modification of a certificate of eligibility for acting as a petrol and oil trading general agent (having a petrol and oil distribution system in 2 (two) or more provinces or centrally run cities) shall be carried out under Clause 4, Article 17 of Decree No. 83/2014/ND-CP.

d/ In case results of physical checking are consistent with application dossiers of traders, the Ministry of Industry and Trade shall grant certificates, made according to Form No. 2 provided in the Appendix to Decree No. 95/2021/ND-CP; Form No. 6 and Form No. 8 provided in the Appendix to Decree No. 83/2014/ND-CP.

3. Administrative procedures to be carried out by provincial-level Departments of Industry and Trade

a/ Administrative procedures for grant or modification of a certificate of eligibility for acting as a petrol and oil trading general agent (having a petrol and oil distribution system in 1 (one) province or centrally run city) shall be carried out under Clause 4, Article 17 of Decree No. 83/2014/ND-CP.

b/ Administrative procedures for grant of a certificate of eligibility for acting as a petrol and oil retail agent shall be carried out under Clause 5, Article 20 of Decree No. 83/2014/ND-CP.

c/ Administrative procedures for grant of a certificate of eligibility for operating a petrol and oil retail station shall be carried out under Clause 3, Article 25 of Decree No. 83/2014/ND-CP.

d/ In case results of physical checking are consistent with application dossiers of traders, provincial-level Departments of Industry and Trade shall grant certificates, made according to Form No. 4, Form No. 8 and Form No. 10 provided in the Appendix to Decree No. 83/2014/ND-CP.”

4. To add Article 6a below Article 6 as follows:

“Article 6a. Management of petrol and oil prices

1. Petrol and oil products of which base prices are announced by the State are those commonly consumed on the market, including bio-gasoline, mineral petrol, diesel oil, kerosene and fuel oil. The Ministry of Industry and Trade shall determine the most consumed petrol and oil products mentioned above for announcement of base prices.

2. Reports on domestically produced petrol and oil output: Before the 29^th of the last month of a quarter, key petrol and oil producers shall make a report on the domestically sold petrol and oil volume for each category of petrol and oil according to Form No. 7a provided in the Appendix to this Circular, for the period from the 21^st of the month preceding the first month of the quarter to the 20^th of the last month of the quarter, and send it to the Ministry of Industry and Trade for summing up and determination of proportions (%) of petrol and oil volumes from domestic and import sources in the formula for calculation of base prices.”

5. To amend and supplement Clause 7, Article 7 as follows:

“7. Wholesale petrol and oil to production units for direct consumption.

Subsidiaries of a key petrol and oil trader as specified in the Law on Enterprises may perform jobs as authorized by such key petrol and oil trader, including:

a/ Signing contracts on sale of petrol and oil to other key petrol and oil traders and to production units for direct consumption;

b/ Signing contracts on sale of petrol and oil to petrol and oil distributors;

c/ Signing contracts on petrol and oil retail franchise with petrol and oil retail franchisees;

d/ Signing agency contracts.”

6. To add Article 11a as follows:

“Article 11a. Small-scale petrol and oil dispensers

1. Small-scale petrol and oil dispensers include petrol and oil gauges and tanks with a static capacity of up to 200 liters/dispenser at an outdoor temperature.

2. Areas where small-scale petrol and oil dispensers may be installed are those in districts specified in the list promulgated together with the Prime Minister’s Decision No. 964/QD-TTg of June 30, 2015, approving the Program on trade development in mountainous, deep-lying and remote areas and on islands for the 2015-2020 period, and revising or replacing documents.”

7. To amend Article 12 as follows:

“Article 12. Registration of annual quotas of minimum total petrol and oil sources 

1. Before November 15 every year, a key petrol and oil trader shall send 1 (one) dossier for registration of quotas of minimum total petrol and oil sources for the subsequent year as specified in Clause 25, Article 1 of Decree No. 95/2021/ND-CP to the Ministry of Industry and Trade (the Domestic Market Department).

2. Within 30 (thirty) working days after receiving a trader’s registration dossier, based on the petrol and oil demand of the national economy and  registrations of traders, the Ministry of Industry and Trade shall allocate by-category quotas of minimum total petrol and oil sources for domestic consumption for the whole year to each key petrol and oil trader.

3. In case of refusal to allocate quotas of minimum total petrol and oil sources, the Ministry of Industry and Trade shall reply in writing, clearly stating the reason.

4. If wishing to have their quotas of minimum total petrol and oil sources adjusted, traders shall send written requests to the Ministry of Industry and Trade before September 30 every year.

5. Key petrol and oil traders shall keep up with the petrol and oil import or domestic purchase schedule as provided or guided in writing by the Ministry of Industry and Trade in case the latter issues documents specifically guiding the petrol and oil import or domestic purchase schedule to ensure domestic petrol and oil supply.”

8. To amend and supplement Clause 4, Article 13 as follows:

“4. Petrol and oil export by petrol and oil producers must comply with plans (or adjusted plans) confirmed by the Ministry of Industry and Trade (the Domestic Market Department) under Article 15 of this Circular.”

9. To amend and supplement Clauses 3 and 4, Article 14 as follows:

“3. The period of storage of petrol and oil temporarily imported for re-export in Vietnam must comply with Article 13 of the Government’s Decree No. 69/2018/ND-CP of May 15, 2018, detailing a number of articles of the Law on Foreign Trade Management, or revising or replacing documents.”

“4. Traders may temporarily import petrol, oil and raw materials in large batches and re-export them in whole batches or in smaller batches from their domestic depots with volumes and categories temporarily imported minus shrinkage not larger than the allowable shrinkage level in the course of receipt and storage.”

10. To add Point c, Clause 3, Article 16 as follows:

“c/ In case a petrol and oil producer encounters a force majeure event that interrupts its production activities, making it impossible to deliver petrol and oil to key petrol and oil traders under signed contracts, such petrol and oil producer or an enterprise empowered to act as the sole agent for selling all products of the petrol and oil factory (in case such factory does not directly sell finished petrol and oil products) may import finished petrol and oil products to secure the performance of signed petrol and oil sale contracts after making registration with the Ministry of Industry and Trade (the Domestic Market Department) according to the procedures specified at Point b of this Clause.”

Article 2. To replace or annul the following contents

1. To replace a number of phrases in Circular No. 38/2014/ND-CP as follows:

a/ To replace the phrase “petrol and oil importers/exporters” with the phrase “key petrol and oil traders”.

b/ To replace the phrase “petrol and oil import/export license” with the phrase “certificate of eligibility for acting as a key petrol and oil trader”.

c/ To replace the phrase “petrol and oil producers” with the phrase “key petrol and oil producers”.

2. To annul a number of provisions of Circular No. 38/2014/TT-BCT and the Minister of Industry and Trade’s Circular No. 28/2017/TT-BCT of December 8, 2017, amending, supplementing or annulling a number of circulars on petrol and oil trading, provision of conformity assessment services, import and export under the state management by the Ministry of Industry and Trade, as follows:

a/ To annul Clause 2, Article 3 and Clause 10, Article 7 of Circular No. 38/2014/TT-BCT.

b/ To annul Article 1 of the Minister of Industry and Trade’s Circular No. 28/2017/TT-BCT of December 8, 2017, amending, supplementing or annulling a number of circulars on petrol and oil trading, provision of conformity assessment services, import and export under the state management by the Ministry of Industry and Trade.

Article 3. Effect   

This Circular takes effect on January 2, 2022.

Article 4. Transitional provision

The registration of quotas of minimum total petrol and oil sources for 2023 shall be carried out from November 2022.

Article 5. Organization of implementation

1. Petrol and oil producers and traders shall monitor, grasp and sum up actual data on their operation and report to the Ministry of Industry and Trade (the Domestic Market Department) on the contents specified in Circular No. 38/2014/TT-BCT and this Circular. Reports shall be sent to the Ministry of Industry and Trade in paper form and via email to [email protected].

2. Any problems arising in the course of implementation of this Circular should be reported to the Ministry of Industry and Trade for consideration and settlement.-

For the Minister of Industry and Trade
Deputy Minister
DO THANG HAI