Petroleum fuel
- Document symbol
- G/LIC/N/3/LSO/2
- Original language
- English
- Published on
- 23/11/2010
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.
The list of products covered under Lesotho's Import Licensing/Import Permit system has been specified in the "Import Restrictions (Amendment) Regulations, 2009". This regulation also stipulates the relevant authorities responsible for managing the licensing process of each product. The import licensing system generally requires an importer to first approach the relevant issuing authority to be guided on the specific application material required for importation of the specified product. Once the necessary documentation has been procured, the importer presents these along with a completed application form to the issuing authority for consideration. The documentation is then reviewed against the administrative requirements and within the timeline specified by the issuing authority for import of the specified product. An import permit is issued once the approval process is complete. Applied terminology varies by institution with some issuing "import permits" while other issue "import licences".
The importer lodges an application with the office of the Director at the Department of Energy, Ministry of Natural Resources. The application is then reviewed and a decision is granted within 1 day. The licence for importation and supply of fuel in Lesotho is issued immediately upon approval of an application.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Permits are required for petroleum fuel.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in and coming from all countries with exception of the Southern African Customs Union (SACU) whereby importers are required to adhere to additional rules specified within the region.
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?
The licensing system is not intended to restrict the quantity or value of imports of petroleum products but rather to monitor the inflow and monitor that only registered oil companies import petroleum products into Lesotho.
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?
The licensing is statutorily required. Law, regulation and/or administrative order under which the licensing is maintained: import licensing procedures in Lesotho governed by the Import Restrictions (Amendment) Regulation, 2009 and the Fuel and Services Control Regulation for Petroleum Fuel, 1999.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The legislation does not leave designation of products subject to licensing to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
It is possible for neither the Department of Energy nor the Ministry of Natural Resources to abolish the system without legislative approval; but, improvements of the system are possible.
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)?
No time limit is given but licence application is generally made prior to the intended date of importation
Q7.b. Can a licence be granted immediately on request?
Licence may be granted within 1 day of request provided all relevant documentation is available
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.
There are no limitations as to the period of the year during which application for a licence may be made.
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?
The Department of Energy is the single administrative organ responsible for considering application for licences on Petroleum Fuel.
Must the applications be passed on to other organs for visa, note or approval?
In exceptional cases, application may require further review by the office of the Principal Secretary and/or Minister of Natural Resources.
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?
Licences are not granted on the basis that the applicant did not meet requirements (particularly for companies with no establishment or portfolio transactions within Lesotho) or presented falsified information.
Are the reasons for any refusal given to applicants?
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?
The applicant can appeal the decision to the Minister of Natural Resources.
If so, to what bodies and under what procedures?
There is no appeal procedure specified in the legislation.
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?
Only Registered Oil Companies are permitted to import petroleum fuel into Lesotho.
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?
What information is required in applications?
All persons wishing to import petroleum fuel into Lesotho are required to submit the following documentation:
- The company's details including; the name, address and nationality of the company; name(s) and address(es) of all directors or principals where request is not from a company; proof company is locally registered; and the articles and memorandum of association of company.
- A detailed proposal of the business which includes costing and elements of sustainability.
- Information on applicant's technical experience and competence in the area of operation. This may include issues such as knowledge/experience with oil industry operations in the country and bio fuels in general; CV of proposed project manager and the consulting or in-house specialists.
- Financial status of the company. This will cover aspects such as applicant's balance sheet, profit and loss statement for the previous two years, the proposed financial plan, banking and other financial references.
- Financial analysis of the business.
- Proposed marketing arrangements – agreements with locally registered petroleum dealers.
What documents is the importer required to supply with the application?
All persons wishing to import petroleum fuel into Lesotho are required to submit the following documentation:
- The company's details including; the name, address and nationality of the company; name(s) and address(es) of all directors or principals where request is not from a company; proof company is locally registered; and the articles and memorandum of association of company.
- A detailed proposal of the business which includes costing and elements of sustainability.
- Information on applicant's technical experience and competence in the area of operation. This may include issues such as knowledge/experience with oil industry operations in the country and bio fuels in general; CV of proposed project manager and the consulting or in-house specialists.
- Financial status of the company. This will cover aspects such as applicant's balance sheet, profit and loss statement for the previous two years, the proposed financial plan, banking and other financial references.
- Financial analysis of the business.
- Proposed marketing arrangements – agreements with locally registered petroleum dealers.
Q11. What documents are required upon actual importation?
Documents required upon actual importation include: declaration of invoices and proof of licence to supply petroleum fuel in Lesotho.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There are no fees or administrative charges attached to the issuance of a licence to supply petroleum fuel in Lesotho.
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.
There is no deposit or advance payment requirement.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Licence to import petroleum fuel is granted on an annual basis and the validity of a licence be not be extended.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of a licence or a portion of a licence.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences cannot be transferred between importers.
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?
All registered oil companies permitted to import petroleum fuel into Lesotho are required to adhere to the following guidelines:
- Import petroleum products only through the designated borders of Lesotho;
- Import fuel which complies with acceptable international standards;
- Be permitted to import petroleum products in quantities greater that 200 litres;
- Not engage in direct shipment but should dispense or off-load fuel straight into the deport to distribution to the dealers;
- Comply will all relevant import, wholesaling of fuel, approvals and permits as required under the Fuel and Service Control Act or any other applicable law;
- Pay applicable duties, levies and taxes to the relevant authorities and bodies;
- Illustrate commitment in investing in Lesotho;
- The fuel compartments of the tankers shall be filled to the maximum capacity;
- Submit details of the car which imports fuel into Lesotho including the registration number;
- Submit on the 15th of every month, total quantities or volumes of petroleum products imported into Lesotho in the previous month.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Foreign exchange is automatically provided by the banking authorities for goods to be imported if other administrative procedures required are fulfilled.
Is a licence required as a condition to obtaining foreign exchange?
Licences are not required as a condition to obtaining foreign exchange.
What formalities must be fulfilled for obtaining the foreign exchange?
Formalities to be fulfilled to obtain the foreign exchange include the presentation of identification document, proof of sufficient funds in bank account, and a Pro-Forma Invoice.