Petroleum products in bulk
- Document symbol
- G/LIC/N/3/LTU/1
- Original language
- English
- Published on
- 03/04/2003
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 system of petroleum products in bulk is regulated by the Article 13 of the Law on Enterprises of 16 March 1990, Article 17 of the Law on Energy of 28 March 1995 and the Government Resolution No. 1492 “On Licensing of Import, Export, Wholesale and Retail Trade of the Petroleum Products in Bulk” of 27 December 2000, and is administered by the Ministry of Economy.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The licensing covers:
No.Title of petroleum product in bulk(7) HS code
1. Motor spirit
1.1 Aviation spirit 2710.00.26.0
1.2 with an octane number (RON) of 80 (76) 2710.00.27.2
1.3 with an octane number (RON) of 92 2710.00.27.5, 2710.00.27.6
1.4 with an octane number (RON) of 95 2710.00.29.1, 2710.00.29.9
1.6 with an octane number (RON) of 98 2710.00.32.1, 2710.00.32.9
2. Jet fuel 2710.00.37.0, 2710.00.51.0
3. Diesel oils 2710.00.66.1, 2710.00.67.1, 2710.00.68.1
4. Stove fuels, other gasoline 2710.00.66.3, 2710.00.67.3, 2710.00.68.3, 2710.00.66.9, 2710.00.67.9, 2710.00.68.9
5. Heavy fuel oil (liquid fuel) 2710.00.74-2710.00.78, 2710.00.97.1
Import of petroleum products in bulk is subject to non-automatic import licensing.
(7) Petroleum products in bulk are all petroleum products but those poured out by producers into containers with capacity not exceeding 10 litres (fuels for car and motor-cycle racing poured out by producers into containers with capacity not exceeding 50 litres).
Q3. The system applies to goods originating in and coming from which countries?
The system applies to the products 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?
The licencing is intended to serve the purposes of consumer protection and to maintain control over technical characteristics of the materials.
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 of import of petroleum products in bulk is based on the Article 13 of the Law on Enterprises of 16 March 1990, published in Official Gazette “Valstybes zinios” No. 28 – 756, 2000, the Article 17 of the Law on Energy of 28 March 1995, published in Official Gazette “Valstybes zinios” No. 28 – 757, 2000 and the Government Resolution No. 1492 “On Licensing of Import, Export, Wholesale and Retail Trade of the Petroleum Products in Bulk” of 27 December 2000 and published in Official Gazette “Valstybes zinios” No. 113-3623, 2000.
Is it possible for the government to abolish the system without legislative approval?
The licencing may be eliminated only under adoption of relevant legislation.
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)?
It is up to the applicant to decide when to apply for a licence, knowing that the document will be issued within a maximum of 30 days of receipt of the application.
Q7.b. Can a licence be granted immediately on request?
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 licence and/or importation 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?
An importer has to approach only one administrative organ in connection with an application, namely the Ministry of Economy.
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?
Under circumstances of failure to meet the licencing criteria the application for the licence may be refused.
Are the reasons for any refusal given to applicants?
In the event of refusal to issue or re-register a licence, the applicant shall be notified in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
The applicant has a right to appeal against the decision in conformity with the procedure set forth by the relevant laws.
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?
All types of enterprises registered in Lithuania and subsidiaries of enterprises of foreign states, whose registration certificates or statutes provide for trade in petroleum products, as well as enterprises that consume petroleum products for the purpose of heating, electrical power or other production needs are eligible for licence issuance.
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?
An enterprise wishing to obtain a licence shall submit an application on an established form by the Ministry of Economy. The application shall include the following information: name of the enterprise, code, address, telephone number, sphere of commercial-economic activity for which a licence is applied, indication of which petroleum products in bulk the enterprise plans to import (HS codes).
What documents is the importer required to supply with the application?
An enterprise wishing to obtain a licence to import petroleum products in bulk shall submit the following documents along with the application:
• copies of the registration certificate and the statutes (except for enterprises operating without the statutes) of an enterprise certified by the stamp of the enterprise and the signature of its head;
• a declaration about the locations of storage of petroleum products in bulk and trading in them. The declaration shall contain address of the said locations, the number of tanks, their capacity (in cubic meters), the ownership form of warehouses (whether private or leased);*
• copies of documents of metrological monitoring (conducted in conformity with the procedure established by the State Metrology Service) certified by the stamp of the enterprise and the signature of its head. They shall be submitted by enterprises, which have not been the licence holders for import of petroleum products in bulk, as well as the enterprises, which are willing to enter additional addresses of the warehouses into the already issued licences;
• a copy of the agreement, pursuant to which a warehouse or a tank is made use of for petroleum products in bulk, approved by the stamp of the enterprise and the signature of its head, in case the warehouse or the tank is not owned by the enterprise by the ownership right;
• a payment order with bank stamps or a receipt that confirms that the state fees of an established size have been paid (presented upon taking a decision on a licence issuance).
The enterprise wishing to re-register the licence, shall submit the following documents to the institution that issues and re-registers licences:
• an application for re-registration of the licence;
• a payment order with bank stamps or a receipt that confirms that the state fees of an established size have been paid (presented upon taking a decision on a licence re-registration).
* Enterprises which do not own or lease warehouses for petroleum products in bulk, shall have to indicate that petroleum products in bulk are delivered directly to the purchaser.
Q11. What documents are required upon actual importation?
Licence holders importing petroleum products in bulk shall submit copies of approved import licences along with the general document while conducting customs procedures.
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?
The state fee shall be collected for licence issuance in accordance with the Government Resolution No. 1458 “On Approval of the List of Entities Subject to Imposition of the State Fee, the Fee Rate and the Procedure for its Payment and Repayment” (Official Gazette “Valstybes zinios” No. 108-3463, 2000).
What is the amount of the fee or charge?
The state fee amounts to 2800 LTU (812 EUR).
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 associated with the issuance of licence.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The Ministry of Economy shall issue import licences for petroleum products in bulk for an unrestricted time period and on an applicant’s request re-registered annually.
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.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable 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?
A licence shall not be issued if:
• not all the required documents are submitted;
• false data have been provided;
• the documents submitted are not in conformity with the established requirements;
• there is a written notice of the supervising state institution on imposition of penalties for violation of conditions of activity subject to licensing. In such a case the Ministry of Economy shall pass a final decision.
• an enterprise has outstanding tax arrears to the state budget, the municipal budgets or social insurance funds or does not fulfill its obligations to the Customs.
Licences shall not be re-registered if:
• not all the required documents are submitted;
• false data have been provided;
• the documents submitted are not in conformity with the established requirements;
• an enterprise shall not submit the information on import, export, sale volumes of petroleum products in bulk to the licence issuing and re-registering institution;
• there is a written notice of the supervising state institution on imposition of penalties for violation of conditions of activity subject to licensing. In such a case the Ministry of Economy shall pass a final decision;
• an enterprise has outstanding tax arrears to the state budget, the municipal budgets or social insurance funds or does not fulfill its obligations to the Customs.
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 applied for importation of petroleum products in bulk, apart from import licence required to be presented prior to importation.
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?
Foreign exchange is automatically provided by the banking authorities for products to be imported.