Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Ministry of Industry and Trade on prescribing the fuel loss rate in petroleum trading operations

THE MINISTRY OF INDUSTRY AND TRADE

Circular No. 43/2015/TT-BCT datedDecember 8, 2015 of the Ministry of Industry and Trade on prescribing the fuel loss rate in petroleum trading operations

Pursuant to the Government’s Decree No. 95/2012/ND-CP dated November 12, 2012 on 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 dated September 3, 2014 on trade in petroleum products;

The Minister of Industry and Trade hereby introduces the fuel loss rate in petroleum trading operations.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment and subject of application

1. This Circular provides for the loss rate that may incur in petroleum trading operations including export, import, temporary importation, transit, contract manufacturing for export; preparation; preparation; petroleum distribution in the domestic market; petroleum receipt, storage and transportation.

2. This Circular shall apply to traders referred to in the Law on Commerce who engage in trade in petroleum products in the Vietnamese market and other organizations or individuals related to petroleum trading operations.

Article 2. Definition

1. Fuel loss refers to the loss of petroleum or oil in quantity due to natural evaporation and adhesion; technological and engineering elements during the process of petroleum delivery, inflow, outflow, containment, rinse of oil tanks and carriers, preparation, transportation, transshipment and retail of petroleum products.

2. Short-term petroleum storage refers to the keeping of petroleum products in petroleum warehouses and tanks with at least one inlet or outlet of petroleum products in a month.  

3. Long-term petroleum storage refers to the keeping of petroleum products in petroleum warehouses and tanks without any inlet or outlet of petroleum products in a month. 

Article 3. Principles of fuel loss rate management

1. The fuel loss rate stated in this Circular is denominated as maximum fuel loss rate.

2. The loss that may incur by each RON95, RON92, biofuel E5, E10, ethanol fuel E100, kerosene oil (KO), jet fuel JET A-1, diesel oil (DO 0.05% S), (DO 0.25% S), furnace oil (FO), must be kept under control and entered into accounting and final settlement records.

3. The loss amount and value of petroleum products are not allowed to complement or offset against each other within the same settlement period.  With respect to different types of petroleum products which are pumped and carried through the same pipeline, mixed-up portion of petroleum products is allowed to complement or offset against each other in quantity.

4. Where any there appears any abnormal loss exceeding the loss rate stipulated in this Circular, petroleum traders shall be responsible for determining which elements cause such loss and take prompt measures to prevent and minimize any likely damaging effect.

Article 4. Principles of determination of fuel loss in petroleum trading operations

1. Fuel loss incurred in petroleum trading operations as defined in paragraph 1 Article 1 of this Circular is the aggregate fuel loss incurred in all stages of petroleum trading operations. 

2. The petroleum amount used as the basis for determining the fuel loss rate must conform to the following regulations:

a) The amount of mineral gasoline, biofuel, ethanol fuel E100, illuminating oil or diesel oil is converted to standard conditions (temperature: 15^oC, pressure: 101,325 kPa and conformance to Vietnam national measurement system); with respect to petroleum products sold at fuel dispensers of retail fuel stations, the prevailing measurement unit is net volume (liter);

b) With respect to furnace fuels (FO) of all kinds, the prevailing measurement unit is weight (kg). 

3. The fuel loss rate during all stages and at retail fuel stations is determined under the provisions of Article 5, 6, 7, 8, 9, 10, 11 and 12 hereof.

4. The fuel loss rate shall be considered, evaluated and adjusted in conformity with current conditions of technological equipment, management levels, requirements and petroleum trading mechanism over periods of time.

Chapter II

SPECIFIC PROVISIONS

Article 5. Rate of fuel loss incurred in the fuel inflow stage

1. The fuel loss incurred during the inflow stage is the difference between the amount of petroleum products measured in petroleum storage equipment mounted on a petroleum carrier or a storage tank before the fuel inflow process and the actual amount of petroleum products received at the location of such storage tank.  

2. The fuel loss incurred during the inflow stage is measured in percentage (%) of the fuel loss amount as against the fuel amount contained in fuel storage equipment mounted on a petroleum carrier or a storage tank before the fuel inflow process.  The rate of fuel loss incurred during the fuel inflow stage is stipulated in Appendix 1 of this Circular.

3. If the length of fuel inflow pipeline running from a petroleum carrier, storage tank to a fuel inflow tank is greater than 02 (two) km, the rate of fuel loss incurred during the fuel pipeline transport process shall be added to the fuel loss rate measured during the fuel inflow stage under the provisions of paragraph 2 Article 10 hereof.     

Article 6. Rate of fuel loss incurred during the fuel outflow stage

1. The fuel loss incurred during the outflow stage is the difference between the amount of petroleum products flowing out from the fuel outflow tank and the amount of petroleum products received at the location of petroleum storage equipment mounted on a fuel carrier.

2. The rate of fuel loss incurred by the outflow of petroleum products for water, road and rail transport purposes is measured in percentage (%) of the fuel loss amount as against the fuel amount flowing out from petroleum meters.  The rate of fuel loss incurred during the fuel outflow stage is stipulated in Appendix 2 of this Circular.

3. If the length of fuel outflow pipeline running from the storage tank to the meter, or from the meter to the oil carrier, is greater than 02 (two) km, the fuel loss incurred during the fuel pipeline transport process shall be added to the fuel loss measured during the fuel outflow stage under the provisions of paragraph 2 Article 10 hereof.  

Article 7. Rate of fuel loss incurred during the fuel storage stage

1. The rate of fuel loss incurred during the short-term fuel storage stage

a) The rate of fuel loss during the short-term storage stage is applicable with respect to the storage tank which has at least one fuel inflow or outflow within a month. The amount of stored petroleum products used as the basis for determination of the fuel loss rate equals the arithmetic mean of stored fuel amount determined within a minimum of 4 days such as the 1^st, 10^th, 20^thand final day of a month;

b) The rate of fuel loss incurred during the short-term storage stage is measured in percentage (%) of the fuel loss amount as against the stored petroleum amount.  The rate of fuel loss incurred during the short-term fuel storage stage is stipulated in Appendix 3 of this Circular.

2. The rate of fuel loss incurred during the long-term fuel storage stage

a) The rate of fuel loss during the short-term storage stage is applicable with respect to the storage tank which has none of fuel inflow or outflow within a month. The stored petroleum amount used as the basis for determining the fuel loss rate is the petroleum amount stored on the 1^stday of a month;

b) The rate of fuel loss incurred during the long-term storage stage is measured in percentage (%) of the fuel loss amount as against the petroleum amount stored on the 1^stday of a month.  The rate of fuel loss incurred during the long-term fuel storage stage is stipulated in Appendix 3 of this Circular.

Article 8. Rate of fuel loss incurred during the rinsing stage

1. The fuel loss incurred during the tank rinsing stage or by carriers is the amount of petroleum products evaporated and adhering to storage tank walls or carriers shall not include the unusable amount of petroleum products mixed up with sediment at the bottom of storage tanks or carriers during the rinsing process.  

2. The actual unusable amount of petroleum products mixed up with sediment at the bottom of storage tanks or carriers during the rinsing process shall be determined by traders.

3. The fuel loss incurred during the rinsing process is measured in percentage (%) of the fuel loss amount as against the capacity of each storage tank or carrier required to be rinsed.  The rate of fuel loss incurred during the rinsing process is stipulated in Appendix 4 of this Circular.

Article 9. Rate of fuel loss incurred during the preparation stage

1. The fuel loss incurred during the preparation stage is the difference between total amount of input substances and total amount of manufactured products.

2. The fuel loss incurred during the preparation stage is measured in percentage (%) of the loss fuel amount as against total amount of input substances. The rate of fuel loss incurred during the preparation process is stipulated in Appendix 5 of this Circular.

Article 10. Rate of fuel loss incurred during the transportation stage

1. The rate of fuel loss incurred by ship, road and rail transport

a) The fuel loss incurred by water, road and rail transport is the difference between the amount of petroleum products loaded on carriers at departure places and the amount of petroleum products loaded on carriers at arrival places;

b) The rate of fuel loss incurred by water, road and rail transport purposes is measured in percentage (%) of the fuel loss amount as against the fuel amount loaded on carriers at departure places, but is not allowed to exceed the maximum loss rate as referred to in subparagraph c paragraph 1 of this Article;

c) The rate of fuel loss incurred by ship, road and rail transport is stipulated in paragraph 1, 2 Appendix 6 hereof.

2. Rate of fuel loss incurred by the petroleum pipeline transportation

a) The fuel loss incurred by the petroleum pipeline transportation is determined during the fuel pumping process from the fuel outflow tank to the fuel inflow tank through tough steel pipelines with the inner diameter of 145 mm or more.   The fuel loss incurred by the petroleum pipeline transportation is the loss amount of petroleum products remaining in the pipeline plus the loss amount of petroleum products in transit;

b) The rate of fuel loss incurred by the pipeline transportation is measured in percentage (%) of the fuel loss amount as against the fuel amounts measured at the fuel outflow tank;

c) The rate of fuel loss incurred by the pipeline transportation, if there is at least 01 transit operation within 05 days, is stipulated in paragraph 3 Appendix 6 hereof; 

d) If there is none of transit operations within 05 days, the loss amount of petroleum products remaining in the pipeline is added to the fuel loss rate incurred by the pipeline transportation;

The loss rate of petroleum products remaining in the pipeline is measured in percentage (%) of the loss amount of petroleum products remaining in the pipeline as against the amount of petroleum products remaining in the pipeline.  The loss amount of petroleum products remaining in the pipeline is stipulated in paragraph 4 Appendix 6 hereof.

Article 11. Rate of fuel loss incurred during the transshipment stage

1. The fuel loss incurred during the transshipment stage is the difference between the amount of petroleum products transshipped from mother vessels and the amount of petroleum products received by feeder vessels.

2. The rate of fuel loss incurred from transshipment is measured in percentage (%) of the fuel loss amount as against the fuel amount transshipped from mother vessels. The rate of fuel loss incurred from transshipment is stipulated in Appendix 7 of this Circular.

Article 12. Rate of fuel loss incurred from sale by retail fuel stations

1. The fuel loss incurred from sale by retail fuel stations is total loss amount of petroleum products incurred during the fuel inflow, outflow, storage and rinsing process.

2. The loss amount of petroleum products incurred during the fuel inflow, outflow, storage and rinsing process is stipulated in Article 5, 7 and 8 of this Circular.  The rate of fuel loss incurred during the fuel outflow stage is stipulated in Appendix 8 of this Circular.

Chapter III

IMPLEMENTATIONPROVISIONS

Article 13. Responsibilities of responsible competent authorities

1. The Science and Technology Department

Take charge of providing guidance on application of regulations on the fuel loss rate in petroleum trading operations, conduct research into recommendations about revision and setting up of fuel loss rates relevant to technical facilities, levels and requirements over time periods.

2. The Domestic Market Administration

Take charge of and collaborate with relevant competent authorities in implementing this Circular in terms of management of petroleum trading operation that occur in the domestic market.

3. The Export and Import Department

Take charge of and collaborate with relevant competent authorities in implementing this Circular in terms of management of import, export, temporary importation, transit and contract manufacturing for export of petroleum products.

Article 14. Responsibilities of petroleum traders

1. Carry out management of the fuel loss incurred in petroleum trading operations; make and issue specific regulations on the fuel loss rate which is not allowed to exceed the loss rate stipulated in this Circular; make and issue specific regulations on the fuel loss incurred by petroleum trading operations and take sole responsibility for fuel loss incurred by their own fuel trading operations.

2. Submit an annual statistical report on the fuel loss amount to the Ministry of Industry and Trade (through Domestic Market Administration) for the purpose of practicing their state management over the fuel loss.

3. Conform to state management requirements relating to the fuel loss rate in accordance with this Circular.

4. Keep records of business expenses subject to the limits defined by consulting the fuel loss rate stipulated in this Circular; survey, study and evaluate the fuel loss, and recommend the Ministry of Industry and Trade to change and amend any irrelevant provisions (if any).

Article 15. Implementation effect

This Circular takes effect on May 1, 2016.

This Circular replaces the Decision No. 758/VT-QD dated April 15, 1986 of the Minister of Raw Materials (currently known as the Ministry of Industry and Trade) on setting temporary limits on oil and petroleum loss incurred in fuel inflow, outflow, transportation and storage stages.

In the course of implementation, if there is any difficulty that may arise, organizations or individuals concerned should send feedbacks to the Ministry of Industry and Trade for amendment or modification./.

For the Minister

The Deputy Minister

Cao Quoc Hung

APPENDIX 1

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM INFLOW STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

APPENDIX 2

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM OUTFLOW STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

1. As regards the outflow of petroleum products to oil tankers:

2. As regards the outflow of petroleum products to tanker trucks and rail tank cars:

Note:If the meter is out of order, the rate of fuel loss incurred in the fuel outflow stage is determined as the rate of fuel loss provided in the column "tank - meter" multiplied by the factor of 1.1.

APPENDIX 3

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM STORAGE STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

1. As regards short-term petroleum storage:

2. As regards long-term petroleum storage:

APPENDIX 4

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM RINSING STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

APPENDIX 5

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM PREPARATION STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

APPENDIX 6

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM TRANSPORTATION STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

1. Water transport:

Note:Examples of the loss rate of a petroleum product transported on a route which has a distance of more than 600 km include determination of such loss rate by measuring total loss rate at an initial distance of 300 km in the column “To 300 km”, at a consecutive distance of 300 km in the column “From 300 to 600 km”, and at the remaining distance in the column "Above 600 km".   

2. Road and rail transport:

3. Pipeline transport:

4. Loss incurred by pipeline storage:

APPENDIX 7

RATE OF FUEL LOSS INCURRED IN THE PETROLEUM TRANSHIPMENT STAGE(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)

APPENDIX 8

RATE OF FUEL LOSS INCURRED IN THE FUEL OUTFLOW BY RETAIL FUEL STATIONS(Issued together with the Circular No. 43/2015/TT-BCT of the Minister of Industry and Trade dated December 8, 2015 on the fuel loss rate in petroleum trading operations)