Petroleum and petroleum products
- Document symbol
- G/LIC/N/3/MMR/1
- Original language
- English
- Published on
- 04/10/2023
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.
For importation of petroleum and petroleum products, the business license issued by Ministry of Energy is required in order to conduct petroleum products importation business. Although the petroleum and petroleum products business license cannot be used as an import license, it is one of the major supporting documents for import license application. After receiving the approval of business license from the Petroleum Product Regulatory Department (PPRD), an importer or applicant shall apply the import license to the Department of Trade, Ministry of Commerce.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Petroleum and petroleum products business licenses basically cover the businesses which undertake the importation of the liquefied petroleum gas under HS chapter 27, 34 and 38.
Q3. The system applies to goods originating in and coming from which countries?
The permit system applies to products originating in and coming from all countries, but primarily focuses on the quality of the products rather than its origin.
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 permit system is not intended to restrict the quality or value of imports.
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?
The approval system is a statutory requirement of the Petroleum and Petroleum Products Law which was enacted in 2017 and the Export and Import Law (2012). The whole license approval processes are subjected to the provision of those Laws.
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:
No quantitative limit on the importation of petroleum and petroleum products.
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)?
The petroleum and petroleum products cannot be imported without the approval of business license and import license. Licenses cannot be obtained within a shorter time-limit and it may take 30 working days of processing time.
Q7.b. Can a licence be granted immediately on request?
Business License can be issued as soon as possible if the information completes, but license cannot be granted immediately upon request. Prior review of the application is required.
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.
Importers may apply for import approval in any time of the year.
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?
For the application of license, there will be two administrative bodies: (1) Petroleum and petroleum products business license from the Oil and Gas Planning Department and (2) Import License from the Department of Trade.
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?
According to the Petroleum and Petroleum Products Law (2017), the Ministry of Energy has the rights to refuse, reject or terminate the Petroleum and Petroleum Products Licenses Application or License granted to the Licensee if the license application doesn't meet the standard requirement or if the evidence is found that the licensee fails to fulfil their obligations or breached the existing laws, rules and regulations.
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 persons, firms or institution which fulfils the legal requirements are equally eligible to apply the import license.
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?
The applicant needs to submit the following documents in order to apply Petroleum and Petroleum Products Business License (especially for liquefied petroleum gas importation business):
- Application Letter;
- Endorsement from State or Regional Government;
- Documents stating the Land Ownership or land used rights;
- License from City/Township Development Committee;
- Endorsement from Fire Service Department;
- Endorsement from the Internal Revenue Department;
- Layout Plan, Design and Detail Drawings;
- Jetty Design and Detail Drawings (For Sea Trade);
- Design and Specifications of storage tank, piping system, safety device and other equipment;
- Methods of Statement, Standards and codes used for the system;
- Expertise and Track Records of contractor company which will undertake the construction/installation works; and
- Other documents requested by PPRD under the Ministry of Energy.
After receiving the approval of Petroleum and Petroleum Products Business License, the applicant shall apply the import license through trade net 2.0 online application systems of the Department of Trade.
Q11. What documents are required upon actual importation?
The following documents are required upon actual importation:
- Import license issued by DoT;
- Petroleum and Petroleum Products Business license issued by OGPD;
- Invoice and packing list; and
- Bill of lading, air consignment note or truck note.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
For importation through Sea route, the license fees for Petroleum and Petroleum Products Business License is 6 million MMK for storage capacity of 1,000 MT and additional license of 2000 MMK will be charged for every metric ton above 1,000 MT capacity. For importation through Border trade, the fee is 6 million MMK. Those are applied for new license granted and the renewal fees are only 60% of the original license fees. The license fee is 90,000 MMK for petroleum and petroleum products.
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.
No deposit or advance payment is required in connection with the issue of license.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The Petroleum and Petroleum Business License is valid for one year and it can be extended by paying 60% of the original license fees. See reply for validity and extension of import license in controlled chemical substances section.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for no-utilization of a license.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Basically, the Business license and Import license are not transferable between importers. But, if the applicants want to transfer the Petroleum and Petroleum Products Business License, they shall proceed officially as per the procedures described in the Standard Operating Procedure (SOP).
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?
There are no other conditions attached to the issue of a license.