Crude oil and petroleum products
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
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.
The Oil Industry Management Bureau (OIMB) issues an Acknowledgement Letter to Downstream Oil Industry (DOI) Participant who files a notice of crude oil, or petroleum products, importation, and to a Downstream Oil Industry (DOI) Biofuel Participant who will file supplemental bioethanol importation from foreign countries, freeports and economic zones, whether for trade or for his own use and requirement, to ensure effective monitoring by the OIMB and conformance with the Basel Convention.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The Bureau maintains the issuance of the acknowledgement letter for every notice prior to Importation filed by a DOI Participant and a DOI Biofuel Participant. For the list of crude oil, petroleum products and bioethanol AHTN code covered by the system, see Annex A or "Products"
Q3. The system applies to goods originating in and coming from which countries?
The system applies to crude oil, petroleum products, and bioethanol from any foreign country: Provided, that all oil importations shall be in accordance with the Basel Convention.
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, it is not intended to restrict the quantity or value of imports. It is intended for the Bureau's monitoring purposes. The Bureau also requires submission by the DOI Participant and DOI Biofuel Participant of applicable monthly, quarterly, and annual reports that indicate the quantity imported products to effectively monitor and reconcile the importation volumes.
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?
For crude and petroleum products, the governing law and current regulation for the filing of a notice prior to importation and the issuance of acknowledgement letter are Chapter II-Sec. 5, Liberalization of the Downstream Oil Industry and Promotion of Free Competition- Liberalization of the Industry of Republic Act No. 8479, "An Act Deregulating the Downstream Oil Industry and for Other Purposes," and Rule II, Sec. 6, Notice to Every Importation of DOE Department Circular No.DC98-03-004, "Rules and Regulations Implementing Republic Act No. 8479 also known as the Downstream Oil Industry Deregulation Act of 1998. For bioethanol importation, the governing law and regulation are Republic Act No. 9367, "Biofuels Act of 2006," and Section 10, Rule 5-Notices and Reportorial Requirements of the Department Circular No.DC2021-06-0014, also known as the Revised Circular on Accreditation and Submission of Notices and Reports by Refiners, Importers and Own Users of Gasoline and Diesel Pursuant to the Biofuels Act.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
All regulations do not leave designation of products subjected to import licensing to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
It is not possible for the government (or the executive branch) to abolish the system without legislative approval.
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)?
Application for a licence must be filed with the Bureau at least one day prior to loading of every shipment pursuant to Section 6 Notice Prior to Every Importation, Rule II, Department Circular No. DC 98-03-004 for crude oil and petroleum products importation. For bioethanol importation, application for a license with complete documentary requirements must be submitted to the Bureau not later than seven working days from actual day of loading pursuant to Annex C-Notice to Import Bioethanol, Section 10 Notices of DC2021-06-0014, also known as the Revised Circular on Accreditation and Submission of Notices and Reports by Refiners, Importers and Own Users of Gasoline and Diesel Pursuant to the Biofuels Act
Q7.b. Can a licence be granted immediately on request?
No, licence cannot be granted immediately. The Bureau informs the applicant that it follows a standard processing time under the agency's citizen's charter.
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.
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?
Consideration of license applications is only effected by a single administrative organ.
The applicant does not need to approach more than one administrative organ.
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?
Application of notice prior to importation will not be refused so long as the DOI Participant complies with the requirements prior to crude and petroleum products importation and the DOI Biofuel Participant complies with the requirements prior to supplemental bioethanol importation.
Are the reasons for any refusal given to applicants?
The Bureau advises both Participants should the application be refused for further compliance to the requirements.
Have applicants a right of appeal in the event of refusal to issue a licence?
The Participants with refused application may explain through a letter to the Bureau Director to confirm compliance to requirements prior to importation.
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?
Yes, there is a system of registration for persons or firms permitted to engage in importation of crude, petroleum products, and bioethanol importation. Pursuant to Rules and Regulations Implementing Republic Act No. 8479, "Downstream Oil Industry Deregulation Act of 1998," 1998, Rule II, Sec. 5, Notice Prior to Engagement in any Activity or Business in the Downstream Oil Industry, any person who intends to engage in the business of importing, exporting, re-exporting, refining, processing, manufacturing, blending, recycling, and/or reprocessing, shipping, transporting, transshipping, storing, distributing, and marketing and/or selling of crude oil, gasoline, diesel, LPG, kerosene, and other petroleum products, and in any similar activities, shall file a notice with the Bureau prior to initial engagement in the proposed activity or prior to construction of the petroleum products facilities, as the case may be for them to be a duly acknowledged DOI Participant.
Only duly acknowledged DOI Participant and DOI Biofuel Participants by the OIMB may engage in the business of importing and refining Crude Oil as well as exporting, storing, bunkering, hauling, marketing, refilling and retailing of Finished Petroleum Products and bioethanol importation in the Downstream Oil industry.
Processing fee is Php 1,000.
There is no published list of authorized importers.
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?
Please see updated Annex B.1 template to be used when filing a notice prior to import (for bioethanol).
Q11. What documents are required upon actual importation?
Please see Annex B.2 template to be used when filing a notice prior to import (for crude oil/petroleum products).
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, there is a fee for every notice to import filed with the Bureau.
What is the amount of the fee or charge?
PHP 350.00
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?
It is valid unless amended or cancelled.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
Yes, there is a penalty.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No, it is not transferrable 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?
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Prior to bioethanol importation, a DOI Participant must submit an application to the Bureau for the issuance of a DOI Biofuel Participant Accreditation Certificate in compliance with DC2021-06-0014. Processing fee is Php 500 per Accreditation Certificate with one year validity and must be renewed annually.