Crude Oil Import Quotas for 2018 under Non-state Trade

1. Quota

The crude oil import quota for Chinese companies under non-state trade is 142.42 million mt in 2018, surging by 62.58% from that in 2017.

2. Application Requirements

a. Having done crude oil import business or having the right to use imported crude oil approved by the national industrial authorities in recent 2 years.

b. Possessing the right to use crude oil terminals with at least 50,000 tonnage or railway ports with loading capacity of 2,000kt/a, and crude oil tanks with storage capacity of no less than 200,000 m3.

c. Foreign trade operators with banking credit no lower than 20 million USD or 120 million RMB.

d. Possessing professionals in international oil trade (at least 2)

e. The companies shall have no records of smuggling, tax dodging and evasion, foreign exchange evasion and arbitrage of exchange; no records of criminal administrative/criminal penalty because of illegal operation in recent two years.

f. Other considerations

3. Application Documents

The applicants shall submit the following documents.

a. Application letter, including the general information of the company, statement providing that the company conforms to the application requirements, reason for the application, detailed plan for crude oil procurement, processing or sales, introduction of professionals in international oil trade, etc.

b. A photocopy of Business License for the Enterprise Legal Person Duplicate which is signed by legal representative and has passed the annual examination, photocopies of The Registration Form for Foreign Trade Manager or Qualification Certificate for the Import and Export Enterprise or Certificate of Approval for Foreign-invested Enterprise (or the receipt that is obtained in terms of Interim Administrative Measures for the Record-filing of the Incorporation and Change of Foreign-invested Enterprises) which is stamped with registration seal, Declaration Register of Consignees and Consigners of Imported and Exported Goods and Organization Code Certificate.

c. Line of credit certificate provided by banks. Original official documents provided by head offices or direct branches shall be offered. Therein, subsidiary companies of central enterprises can offer the collective credit certificate of the head office.

d. Original use agreements of crude oil terminals (or railway ports), storage tanks and other facilities, a photocopy of certificates for handling capacity and storage tank capacity of this terminal (or railway port) which is provided by investment departments (or environmental protection, fire protection and other departments) above the municipality level.

e. Crude oil import performance certificates from 2016 to 2017 January–October or imported crude oil use qualification documents which are replied by the state industry departments. Self-import enterprises shall offer a photocopy of customs declaration, and import agent enterprises shall provide the agency agreement or the relevant service invoice.

f. Documents about records of no smuggling and illegal actions from 2016–2017 which are provided by the Customs at its locality, and credentials of no tax evasion, foreign currency evasion and arbitrage of exchange actions which are provided by the tax administration and foreign exchange control departments at its locality.

The companies which were authorized by Ministry of Commerce of the People’s Republic of China to import crude oil in 2017 need not provide the materials required in the second, third, fourth, fifth and sixth items. But the other applying companies shall provide all of the above materials.

Part Four Allocation Principle

a. Allocation by batch. The first batch of crude oil import quotas will be allocated according to the actual import volume at the authorized companies in the first ten months of 2017.

b. Addition and adjustment. The crude oil import quotas will be added or adjusted according to companies’ actual import volume, demand and the number of newly-added authorized companies.

c. Strict examination. The companies which didn’t import crude oil in 2017 shall not have crude oil import quotas in 2018. The companies which cannot finish the authorized quotas shall give back the unfinished quotas to Ministry of Commerce of the People’s Republic of China through local commerce departments or state-owned groups before September 1 each year.

d. Other factors needed to be taken into consideration.