Oil and petroleum products
- Document symbol
- G/LIC/N/3/TPKM/14
- Original language
- English
- Published on
- 11/12/2023
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 licensing of imports of oil and petroleum products specified below is regulated by the "Petroleum Administration Act". The importer is required to submit an approval from the Bureau of Energy, MOEA to customs for clearance.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The licensing under this system is non-automatic. The oil and petroleum products covered by this system are naphtha, crude oil, gasoline, jet fuel, kerosene, diesel oil, fuel oil and liquefied petroleum gas. Their C.C.C. codes are as follows:
2709.00.10.00-8, 2709.00.90.00-1, 2710.12.10.00-1, 2710.12.20.00-9, 2710.12.30.00-7, 2710.12.90.00-4, 2710.19.11.00-3, 2710.19.19.00-5, 2710.19.20.00-2, 2710.19.31.00-9, 2710.19.39.00-1, 2710.19.41.00-7, 2710.19.49.00-9, 2710.19.64.00-9, 2710.19.67-00-6, 2710.20.10-00-1, 2710.20.21-00-8, 2710.20.29-00-0, 2710.20.30-00-7, 2710.20.40-00-5, 2711.12.00-00-2, 2711.13.00-00-1, 2711.19.10-00-3, 2711.29.10-00-1, 2901.10.20-00-0, 3606.10.00.00-0.
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 and customs territories, unless otherwise specified in the accession protocol of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, or the agreement on the terms of accession to the WTO.
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 purposes of the system are to promote the sound development of the oil industry, maintain order in the production and sales in the oil market, ensure the steady supply of oil; to develop the national economy and enhance people’s livelihoods, and at the same time to give equal consideration to environmental protection. There is no other method for the import of these substances that can substitute for this current system.
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 system is managed in accordance with the "Petroleum Administration Act". Repeal of the system would require 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)?
An application can be submitted on any work day.
Q7.b. Can a licence be granted immediately on request?
The import approval cannot be granted immediately on request. The screening on the application will be completed within two working days.
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 import approval 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?
Applicants need to approach only one administrative body.
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?
An application will not be refused for any reason other than failure to meet the prescribed conditions. The reasons an application is refused are furnished to the applicant. An applicant who is refused can file a complaint with the refusing agency or appeal to its superior agency according to the relevant provisions of the Appeal Law.
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?
Please refer to the "Petroleum Administration Act".
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?
Details and document requirements related to an application are set forth in the governing regulations (Petroleum Administration Act), which are available for reference in the Secretariat.
Q11. What documents are required upon actual importation?
Upon the arrival of imports, importers are required to submit the import approval Certificate No. (14 codes).
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There is no licensing fee or administrative charge.
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 an approval.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The validity of an import approval is 1 (one) month from the date of issuance, but this can be increased or decreased by the agency that manages these import approvals when looking at the needs of the practical conditions.
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-utilization of an import approval or a portion of it.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Approval documents 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?
There are no conditions attached to the issuance of an import approval.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Imported products have to pass inspection by Bureau of Standards, Metrology and Inspection, MOEA.
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 goods to be imported.