Fuel
- Document symbol
- G/LIC/N/3/LVA/2
- Original language
- English
- Published on
- 17/01/2002
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Import licensing is required for goods subject to excise taxes – specifically fuel. The licensing system is administrated by Excised Goods Department under Ministry of Finance.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Non-leaded fuel, its substitutes and components.
Leaded fuel, its substitutes and components.
Kerosene, its substitutes and components.
See Product coverage.
Q3. The system applies to goods originating in and coming from which countries?
The system of import licensing applies to goods originating in and coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
No. The licensing system does not limit quantity of imported products and number of entrepreneurs who have a licence. Importers are absolutely independent and have a free choice of imports’ source and quantity of imported products. The intention of licensing is to prevent tax evasion, to ensure the protection of consumers’ interests and safety by preventing the circulation of products of low quality or unknown origin, as well as to obtain statistical data.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Is the licensing statutorily required?
Yes. The licensing system is a statutory requirement of Regulation No.348 “Licensing Regulations of Special Types of Entrepreneurial Activity” issued by the Cabinet of Ministers on 7 October 1997 and Regulations of the Cabinet of Ministers No.311 “Regulations of Circulation of Fuel” of 5 September 2000.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Yes.
Is it possible for the government to abolish the system without legislative approval?
No. The licensing system can be suspended by the Cabinet of ministers whenever it is determined that such action is appropriate.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Licence is issued within 10 working days from the day an application is submitted.
Q7.b. Can a licence be granted immediately on request?
Can a licence be granted immediately on request?
Regulation No.348 does not provide for any exceptions as regards licence allocation within a shorter time-limit or immediately on request.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
See reply 7b.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
No.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Which administrative body is responsible for approving application of licences?
Yes, consideration of licence applications is effected by a single administrative organ, i.e., Excised Goods Department under the Ministry of Finance.
Must the applications be passed on to other organs for visa, note or approval?
No. Not applicable.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
None.
Are the reasons for any refusal given to applicants?
The reasons for refusal are given to the applicant in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
Yes.
If so, to what bodies and under what procedures?
In case of refusal appeals may be made to juridical authorities in conventional order.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
What persons or firms are eligible to apply for a licence?
Licences are granted to all entrepreneurs who want to engage in entrepreneurial dealing with import of fuel without reference form of property (state, private), it means, they have united requirements for receiving licence, united rights and order of dealing when licence is granted.
Is there a published list of authorized importers?
The list of importers is published regularly.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
On application for import licence an entrepreneur has to indicate his name, number and date of registration in Register of Enterprises, address, kind of licensed entrepreneurial dealing. With the application the entrepreneur has to submit documents corresponding to requirements for the potential importer.
The main requirements for entrepreneurs who want to receive an import licence are:
- registration in Register of Enterprises;
- verification that the local government of the relevant jurisdiction accepts carrying out the particular kind of activities for which the licence is requested;
- certification that importer has paid previous taxes;
- technical and economic references of the enterprise, and statement of financial status as an indicator of economic stability;
- agreement with the foreign company of manufacture or distributor;
- quality certificate of the imported production; and
- conformity with the requirements of special services about specifications for storing and transportation of goods (for import of fuel and its substitutes).
Q11. What documents are required upon actual importation?
No.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes. Regulation No.77 “On Licensing Fee for Issuing Special Authorizations (Licences) to Separate Entrepreneurship Categories” issued by the Cabinet of Ministers on 31 March 1995 prescribes state duties for import licencies.
What is the amount of the fee or charge?
Import and wholesale of fuel 200.- Ls
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Pperiod of validity of licence for import of fuel is three years.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for fuel importers.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.