Nghị định 95/2021/ND-CP

Decree No. 95/2021/ND-CP dated November 01, 2021 on amendments to some articles of The Government’s Decree No. 83/2014/ND-CP of petrol and oil trading

Nội dung toàn văn Decree 95/2021/ND-CP amendments to some articles of Decree 83/2014/ND-CP


THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 95/2021/NĐ-CP

Hanoi, November 01, 2021

 

DECREE

AMENDMENTS TO SOME ARTICLES OF THE GOVERNMENT’S DECREE NO. 83/2014/NĐ-CP DATED SEPTEMBER 03, 2014 OF PETROL AND OIL TRADING

Pursuant to the Law on Government Organization dated June 19, 2015 dated June 19, 2015; the Law dated November 22, 2019 on amendments to the Law on Government Organization dated June 19, 2015 and the Law on Local Government Organization;

Pursuant to the Law on Commerce dated June 14, 2005;

Pursuant to the Law on Pricing dated June 20, 2012;

At the request of the Minister of Industry and Trade;

The Government promulgates at Decree on Amendments to some Articles of the Government’s Decree No. 83/2014/NĐ-CP dated September 03, 2014 of petrol and oil trading.

Article 1. Amendments to some Articles of the Government’s Decree No. 83/2014/NĐ-CP dated September 03, 2014 of petrol and oil trading

1. Clause 2 of Article 2 is amended as follows:

"2. This Decree does not apply to traders that import, produce and blend petrol and oil for internal use with a volume of not exceeding 200 l/kg/month and do not sell them on the market."

2. Clause 1, Clause 3, Clause 7, Clause 9, Clause 10, Clause 11 of Article 3 are amended as follows:

"1. Petrol and oil is a general term used to refer to products of the distillation and refining process of crude oil, wastes and other materials which are used as fuel, including: petrol, diesel, kerosene, mazut, aviation fuel, bio-fuel and other products used as fuel, excluding liquefied gas and compressed natural gas."

"3.Petrol and oil production means the process of distillation and refining of crude oil, petrol and oil products, petroleum semi-products, wastes and other materials into petrol and oil products."

"7. Global petrol and oil prices are prices for petrol and oil products on the international market that are determined and announced by the Ministry of Industry and Trade."

"9. Base price the price that is determined according to prices for domestic and imported petrol and oil product, and is the basis for the authorities to determine the regulated price (base price minus (-) cost covered by Price Stabilization Fund), for determination of retail prices for domestic petrol and oil (except for mazut, which must be wholesaling prices)."

"10. Petrol and oil traders include: petrol and oil wholesalers; major petrol and oil producers; petrol and oil distributors; petrol and oil general agents, petrol and oil retail agents; petrol and oil retail franchisees; petrol and oil service providers."

"11. Major traders include major petrol and oil traders and major petrol and oil producers.

Major petrol and oil traders are traders that purchase petrol and oil directly from the refineries (or from enterprises that have contracts to exclusively purchase all petrol and oil products from the refineries that do not sell petrol and oil products themselves) or import petrol and oil to supply petrol and oil for their own systems, sell to other petrol and oil traders or export.

Enterprises that have contracts to exclusively purchase all petrol and oil products from the refineries are entitled to export, import petrol and oil products to maintain supply of petrol and oil for major petrol and oil  traders as instructed by the Ministry of Industry and Trade.

Major petrol and oil producers are those that carry out the process of distillation and refining of crude oil, petrol and oil products, petroleum semi-products, wastes and other materials into petrol and oil products."

3. Clause 17, Clause 18, Clause 19, Clause 20 below are added to Article 3:

"17. Biofuel in this Decree includes gasoline, diesel, ethanol fuel specified in the National Technical Regulation on gasoline, diesel and biofuel promulgated by the Ministry of Science and Technology."

"18. Ownership of petrol and oil trading facilities (including retail stations, depots, vehicles, wharves, filling equipment, laboratories and other equipment serving petrol and oil production and trade) in this Decree means private ownership or joint ownership with at least 35% of the facilities at the time of ownership establishment."

"19. The term "co-ownership" in Decree No. 83/2014/NĐ-CP is now obsolete."

"20. Small scale filling equipment is petrol and oil filling equipment at fixed filling stations that have been registered with the authorities, passed measurement inspection, fire safety inspection and satisfied other requirements prescribed by law. The Ministry of Industry and Trade shall specify maximum capacity of small scale filling equipment"

4. Article 5a below is added after Article 5:

"Article 5a. Transfer of shares to foreign investors

In addition to the petrol and oil traders that have been granted the Prime Minister's approval for capital contribution or transfer of shares to foreign investors, petrol and oil traders that also produce petrol and oil must obtain the Prime Minister's approval if they wish to transfer shares to foreign investors."

5. The phrases "petrol and oil exporter" and "petrol and oil importer" in Decree No. 83/2014/NĐ-CP are replaced with "major petrol and oil traders". The "petrol and oil import or export license" is renamed to "Certificate of Eligible Major Petrol and Oil Trader"

Form No. 1, 2, 3 are amended; Form No. 3a, 4a are added to Decree No. 83/2014/NĐ-CP.

6. Clause 3, Clause 4, Clause 5, Clause 7 of Article 7 are amended as follows:

"3. Having a depot with a minimum capacity of fifteen thousand (15.000) cubic meters to receive petrol and oil from oil tankers and other special-use transport vehicles that are under its ownership or rented from a petrol and oil trader for at least five (05) years.

"4. Having vehicles for domestic petrol and oil transport under its ownership or rented from a petrol and oil trader for at least five (05) years."

"5. Having a petrol and oil distribution system: at least 10 petrol and oil retail stations under ownership or lease with lease duration of at least 05 years, including at least 05 stations under ownership by the enterprise; at least 40 petrol and oil general agents or retail agents or petrol and retail franchisees in the trader's distribution system."

"7. A major aviation fuel trader is not required to have the distribution system mentioned in Clause 5 of this Article but the following conditions must be satisfied:

- There are vehicles for transport and filling of aviation fuel that are conformable with regulations and standards for aviation fuel under ownership or lease with lease duration of at least 05 years.

- There is a depot at the airport with equipment conformable with standards for aviation fuel under ownership or lease with lease duration of at least 05 years.

- There is a capable laboratory under ownership or lease to inspect quality of aviation fuel according to applicable national and international standards."

7. Point a, Point d Clause 2, and Clause 6 of Article 8 are amended as follows:

"a) An application for a new license shall contain:

- The application form for the Certificate of Eligible Major Petrol and Oil Trader according to Form No. 1 in the Appendix hereof;

- Copy of the Certificate of Enterprise Registration;

- A list of facilities serving petrol and oil trading according to Clauses 2, 3, 4 Article 7 of this Decree enclosed with supporting documents;

- A list of petrol and oil retail stations under ownership or lease; a list of petrol and oil general agents, retail agents and retail franchisees in the trader distribution system according to Clause 5 Article 7 of this Decree enclosed with supporting documents."

"d) In case the Certificate of Eligible Major Petrol and Oil Trader expires, the trader shall prepare an application for a new Certificate as prescribed in Point a of this Clause and send it to the Ministry of Industry and Trade at least 30 working days before the expiration date of the current Certificate."

"6. The Ministry of Industry and Trade has the authority to revoke the Certificate of Eligible Major Petrol and Oil Trader. The Certificate of Eligible Major Petrol and Oil Trader shall be revoked in the following cases: the trader does not trade in petrol and oil for at least 01 quarter; the trader fails to reach the minimum petrol and oil supply imposed by the Ministry of Industry and Trade for 02 consecutive years; the trader is bankrupt as prescribed by law; the trader fails to fully satisfy the conditions specified in Article 7 of this Decree; the trader fails to have petrol and oil reserves in accordance with Article 31 of this Decree; the trader violates regulations of this Decree on assurance of petrol and oil quality on the market many times, and other cases prescribed by law."

8. Amendments to Clause 1, Clause 2, Clause 7, Clause 11, Clause 18 Article 9, addition of Clause 20 and Clause 21 to Article 9:

 “1. Fulfill the annual minimum supply imposed by the Ministry of Industry and Trade."

"2. Import or domestically purchase blending components; notify the customs authorities for completion of procedures and control of the import of blending components by the trader."

"7. Make sure the supply of petrol and oil is not lower than the annual minimum petrol and oil supply imposed established by the Ministry of Industry and Trade according to each quarter's targets or specific guiding documents of the Ministry of Industry and Trade; ensure quality, quantity categories and minimum reserves of petrol and oil prescribed in Clause 1 Article 31 of this Decree."

"11. A major petrol and oil trader is the owner of petrol and oil in their entire petrol and oil distribution system, except the petrol and oil sold to other major petrol and oil trader, petrol and oil distributors and petrol and oil retail franchisees. Major petrol and oil traders shall register their distribution systems in accordance with regulations of the Ministry of Industry and Trade."

"18. Authorize subsidiary companies to exercise certain rights to petrol and oil trade according to instructions of the Ministry of Industry and Trade."

“20. Major petrol and oil trader shall contribute to, use and manage Petrol and Oil Price Stabilization Fund, report and disclose information in accordance with this Decree and instructions of the Ministry of Finance."

“21. The major petrol and oil trader that has their Certificate of Eligible Major Petrol and Oil Trader revoked, does not apply for a new Certificate when the old one expires, stops operating as a major petrol and oil trader, or undergoes bankruptcy or dissolution shall transfer the entire balance of the Petrol and Oil Price Stabilization Fund to state budget (if the balance is a positive number)."

9. Clause 1, Clause 3, Clause 8 of Article 11 are amended as follows:

“1. Purchase domestic raw materials, directly import petrol and oil products or raw materials, or entrust the import to a trader having the Certificate of Eligible Major Petrol and Oil Trader. The import of raw materials and petrol and oil product shall be conformable with the plan certified by the Ministry of Industry and Trade, notified to the customs for completion of procedures and control of the import.

“3. Domestically sell the petrol and oil they produced using their own distribution system according to Clause 8 of this Article; sell petrol and oil to other major traders; sell special kinds of petrol and oil that are not permitted for sale on the market to certain units for defense and security purposes according to the list approved by the Prime Minister."

“8. Organize the domestic petrol and oil distribution system; comply with regulations of Clause 4 and Clause 5 Article 7; Clauses 3, 4, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 Article 9 of this Decree and obtain the Certificate of Eligible Major Petrol and Oil Trader from the Ministry of Industry and Trade."

10. Clause 2, Clause 3, Clause 5 of Article 13 are amended as follows:

"2. There is a depot or reservoirs with minimum capacity of 2.000 m3 which is owned by the enterprise or leased from another petrol and oil trader with the lease duration of at least 05 years."

"3. There are vehicles for petrol and oil transport owned by the enterprise or rented from a petrol and oil trader with lease duration of at least five (05) years."

"5. There is a petrol and oil distribution system that covers at least 02 provinces, including at least 05 petrol and oil retail stations under ownership or lease with lease duration of at least 05 years, at least 03 of which must be owned by the trader; at least 10 petrol and oil retail stations of agents or petrol and oil retail franchisees that have the Certificate of Eligibility For Petrol and Oil Retailing according to Article 25 of this Decree."

11. Amendments to Point d and addition to Point a Clause 2 Article 14:

Addition to Point a:

Copy of the petrol and oil trading contract between the trader applying for the Certificate of Eligible Petrol and Oil Distributor and the petrol and oil supplier."

Amendments to Point d:

"d) In case the Certificate of Eligible Petrol and Oil Distributor expires, the trader shall prepare an application for a new Certificate as prescribed in Point a of this Clause and send it to the Ministry of Industry and Trade at least 30 working days before the expiration date of the current Certificate."

12. Clause 1, Clause 4 Article 15 are amended as follows:

“1. Purchase petrol and oil from multiple major petrol and oil traders and other petrol and oil distributors under petrol and oil trading contracts."

"4. In addition to retailing at petrol and oil retail stations of the trader or of retail franchisees, sell petrol and oil to units that directly petrol and oil for production and may only deliver petrol and oil in the form of agent as prescribed in the Law on Commerce to the agents prescribed in Article 19, provided this trader does not violate regulations of Clause 2 and Clause 3 Article 21 of this Decree.

13. Clause 2, Clause 3, Clause 4 of Article 16 are amended as follows:

"2. There is a depot or reservoir with a minimum capacity of 2.000 m3 which is owned by the enterprise or leased from another petrol and oil trader with the lease duration of at least 05 years."

"3. There are vehicles for petrol and oil transport owned by the enterprise or rented from a petrol and oil trader with lease duration of at least five (05) years."

"4. The petrol and oil distribution system has: at least 05 petrol and oil retail stations under ownership or lease with lease duration of at least 05 years, at least 03 of which must be owned by the trader; at least 10 petrol and oil retail stations of agents or petrol and oil retail franchisees that have the Certificate of Eligibility for Petrol and Oil Retailing according to Article 25 of this Decree."

14. Point d Clause 3 of Article 17 is amended as follows:

"d) In case the Certificate of Eligible Major Petrol and Oil General Agent expires, the trader shall prepare an application for a new Certificate as prescribed in Point a of this Clause and send it to a competent authority at least 30 working days before the expiration date of the current Certificate."

15. Clause 2 of Article 19 is amended as follows:

"2. There are petrol and oil retail stations that are under ownership or lease with lease duration of at least 05 years and granted the Certificate of Eligibility for Petrol and Oil Retailing according to Article 25 of this Decree."

16. Clause 3 of Article 20 is amended as follows:

“3. In case the trader that is a petrol and oil retail agent has only 01 petrol and oil retail station under its ownership or lease, the Certificate of Eligibility For Petrol and Oil Retailing is not mandatory."

17. Clause 2 of Article 22 is amended as follows:

"2. There are petrol and oil retail stations that are under ownership or lease with lease duration of at least 05 years and granted the Certificate of Eligibility for Petrol and Oil Retailing according to Article 25 of this Decree."

18. Clause 2, Clause 3 Article 24 are amended as follows:

"2. The station is owned or lease with lease duration of at least 05 years from a trader that is a petrol and oil retail agent, general agent, retail franchisee, distributor, major trader or major producer that has a distribution system as prescribed by this Decree (the applying trader's name shall be on the Certificate of Eligibility For Petrol and Oil Retailing). In case the retail station is leased, the lessee's name shall be on the Certificate of Eligibility For Petrol and Oil Retailing."

"3. The station is designed, built and equipped in accordance with National Technical Regulation on Design Requirements for Petrol filling stations; satisfy fire safety and environmental safety requirements established by competent authorities."

19. Article 24a below is added after Article 24:

"Article 24a. Small scale filling equipment

Operation of small scale filling equipment is permissible if all of the following conditions are satisfied:

1. It has undergone measurement and safety inspection by competent authorities.

2. It is located in remote areas according to instructions of the Ministry of Industry and Trade and applicable regulations.

3. It is owned by a trader that is a petrol and oil retail agent, general agent, retail franchisee, distributor, major trader or major producer that has a distribution system as prescribed by this Decree.

4. A petrol and oil trader using small scale filling equipment shall submit notifying documents to the Department of Industry and Trade of the province where the equipment is located in order to be granted the Certificate of Submission of Small Scale Filling Equipment Notification

a) An application for the Certificate of Submission of Small Scale Filling Equipment Notification shall contain:

- The notification of petrol and oil trading using small scale filling equipment according to Form No. 3a in the Appendix hereof.

- Copy of the appropriate Certificate of Eligible Petrol and Oil Trader prescribed in this Decree.

- Copies of certificates of fire safety trainings of pump operators.

- Copy of the certificate of inspection of small scale filling equipment.

b) After 05 working days from the receipt of the satisfactory application, the Department of Industry and Trade shall send the Certificate of Submission of Small Scale Filling Equipment Notification according to Form No. 4a in the Appendix hereof to the applying trader. If the application is not satisfactory, after 03 working days, the Department of Industry and Trade shall send a written request for supplementation of the application to the trader.

5. In case the trader wishes to change information on the Certificate of Submission of Small Scale Filling Equipment Notification, the trader shall submit documents proving the changes. In case the Certificate of Submission of Small Scale Filling Equipment Notification is lost or damage, the trader shall submit the application specified in Point a Clause 4 of this Article to the Department of Industry and Trade for issuance of another Certificate."

20. Addition to Point a and amendments to Point d Clause 2 of Article 25:

"a) An application for a new Certificate shall contain:

- The application form for the Certificate of Eligibility For Petrol and Oil Retailing No. 3 in the Appendix hereof;

- Copy of the applying trader's Certificate of Enterprise Registration;

- A list of equipment of the petrol and oil retail station according to Clause 3 Article 24 of this Decree and documents proving the legitimacy of construction of the station;

- Copies of certificates of training or equivalent documents of managers and employees of the station according to Clause 4 Article 24 of this Decree;

- Copies of documents confirming supply of goods for the petrol and oil filling stations of the trader;

- Copies of legal documents proving the ownership or lease with lease duration of at least 05 years of the applying trader."

"d) In case the Certificate of Eligibility For Petrol and Oil Retailing expires, the trader shall prepare an application for a new Certificate as prescribed in Point a of this Clause and send it to Department of Industry and Trade at least 30 working days before the expiration date of the current Certificate. In case the station is not rebuilt or expanded, the application shall not include documents about legitimacy of construction of the station."

21. Clause 6 of Article 26 is amended as follows:

"6. Only stop selling after a written approval is issued by Department of Industry and Trade, except in force majeure events (fire, flood or the sale cannot be maintained despite all available measures have been implemented)."

22. Clause 1 and Clause 4 Article 29 are amended as follows:

“1. Lease out the port, deport for receipt of petrol and oil; provide transport and filling services under concluded contracts."

“4. Other petrol and oil-related activities (those of a major trader, distributor, general agent, agent, retail franchisee) must be conformable with applicable regulations."

23. Article 31 is amended as follows:

“1. From the effective date of this Decree, the major petrol and oil trader and producer that has petrol and oil distribution systems shall maintain a stable mandatory petrol and oil reserve which is equal to 20 days' supply according to average daily domestic consumption of the preceding year, including category proportions; including reserve for national energy security and mandatory circulation reserve.

2. From the effective date of this Decree, the petrol and oil distributor shall maintain a stable mandatory petrol and oil reserve which is equal to 05 days' supply according to average daily domestic consumption of the preceding year, including category proportions.

3. From the effective date of this Decree, the major petrol and oil trader producer shall maintain a stable mandatory petrol and oil reserve in accordance with applicable regulations on petrol and oil reserves.

4. The use of petrol and oil from mandatory reserves shall comply with regulations of law on national reserves and/or regulations of the Ministry of Industry and Trade in order to maintain balance between supply and demand, stabilize the market when necessary."

24. Article 33 is amended as follows:

Article 33. Minimum petrol and oil supply

1. Annually, on the basis of national demand for petrol and oil and domestic production of petrol and oil, the Ministry of Industry and Trade shall estimate the next year's demand for petrol and oil import, excluding demand for petrol and oil serving national defense.

2. ON the basis of the last year's consumption and the major petrol and oil traders' proposals, the Ministry of Industry and Trade shall impose the next year's minimum supply of petrol and oil serving domestic consumption upon each trader that has the Certificate of Eligible Major Petrol and Oil Trader.

3. In case it is necessary to ensure supply, the Ministry of Industry and Trade shall specify the schedule for import or domestic purchase of petrol and oil, which shall be implemented by major traders.

4. On the basis of market demand, major petrol and oil traders shall decide the total volume of petrol and oil to be sold in the domestic market, which must not be smaller than the minimum volume imposed.

5. The Ministry of Industry and Trade shall take charge and cooperate with relevant ministries and central authorities in inspecting and supervising the fulfillment of minimum petrol and oil supply by traders, ensuring satisfaction of the entire economy's demand and society's consumption. Where necessary, the Ministry of Industry and Trade may adjust the minimum supply imposed upon the traders."

25. Article 34 is amended as follows:

"Article 34. Procedures for registration of minimum petrol and oil supply

1. On the basis of petrol and oil consumption in the year and the next year's development plan, major petrol and oil traders shall register minimum petrol and oil supply with the Ministry of Industry and Trade.

2. An application shall contain:

a) A document specifying the proposed minimum petrol and oil supply.

b) The report on the trader's petrol and oil trading in the year."

26. Article 37 is amended as follows:

"Article 37. Petrol and Oil Price Stabilization Fund

1. Petrol and Oil Price Stabilization Fund is a financial fund that is not included in state budget (hereinafter referred to as "Price Stabilization Fund") and is used solely for regulation and stabilization of domestic petrol and oil prices.

Major petrol and oil trader shall contribute to Price Stabilization Fund; keep separate records of Price Stabilization Fund by opening accounts at commercial banks or foreign bank branches (FBB) that are operating legally in Vietnam (hereinafter referred to as "banks") in accordance with this Decree and instructions of the Ministry of Finance. Major petrol and oil trader shall be legally responsible for their selection of banks, management and maintenance of the Price Stabilization Fund's balance.

2. Contribution to and use of Price Stabilization Funds

a) Contributions to Price Stabilization Fund: an constituent to the base price; a specific amount of money per liter or kilogram of petrol or oil sold (VND/l or VND/kg) according to petrol and oil price regulation notices of the Ministry of Industry and Trade.

At times when the Price Stabilization Fund balance is high, the Ministry of Industry and Trade will consider reducing or suspending contributions to Price Stabilization Fund.

b) Spending of Price Stabilization Fund is a specific amount of money per liter or kilogram of petrol or oil sold (VND/l or VND/kg) according to petrol and oil price regulation notices of the Ministry of Industry and Trade, and may be flexibly adjusted in case of sharp increases in the base price or the increase in petrol and oil prices affects socio-economic development and the people's life.

Major petrol and oil traders may only use Price Stabilization Fund according to petrol and oil price regulation notices of the Ministry of Industry and Trade and must not use Price Stabilization Fund for other purposes.

c) The Ministry of Industry and Trade shall, in consideration of reality, the Price Stabilization Fund balance, developments of petrol and oil prices at the time of petrol and oil price regulation, decide the levels of contributions and spending of the Price Stabilization Fund after reaching a consensus with the Ministry of Finance.

d) Contributions and spending of Price Stabilization Fund in a period shall be offset against each other and promptly transferred to the Price Stabilization Fund's account at the bank; deposit account balance of Price Stabilization Fund will earn an interest at the rate quoted by the bank where the trader's Price Stabilization Fund account is opened. Interest earned will be included in the Price Stabilization Fund.

In case the Price Stabilization Fund balance is zero when a major petrol and oil trader needs to use it, the trader may take a loan or use lawful financial sources to cover the deficit (negative balance).

- In case the major petrol and oil trader takes a bank loan to cover the Price Stabilization Fund deficits, the lowest interest rate agreed by the bank that grants the loan shall apply.

- In case the major petrol and oil trader uses lawful financial sources to cover the Price Stabilization Fund deficits, the maximum interest rate shall be the interest rate applied to lowest checking accounts of one of the banks where the trader opens Price Stabilization Fund accounts.

3. The major petrol and oil trader shall disclose on the enterprise's website or the media information about contributions to, use, interest earned and balance of the Price Stabilization Fund; and submit reports to the Ministry of Finance and the Ministry of Industry and Trade.

4. The major petrol and oil trader shall organize the contribution to, use and management of the Price Stabilization Fund, submit reports and disclose information in accordance with regulations of this Decree and instructions of the Ministry of Finance. Violations (if any) shall be handled in accordance with the Government’s Decree No. 109/2013/NĐ-CP and Decree No. 49/2016/NĐ-CP. The major petrol and oil trader that commits violations multiple times shall face business suspension or revocation of the Certificate of Eligible Major Petrol and Oil Trader as prescribed by applicable laws.

5. The Ministry of Finance shall provide guidance on contributions, use and management of Petrol and Oil Price Stabilization Funds; scale of Petrol and Oil Price Stabilization Funds; inspect and supervise major petrol and oil traders implementing regulations on contribution and use of Petrol and Oil Price Stabilization Funds."

27. Article 38 is amended as follows:

"Article 38. Petrol and oil price regulation principles

1. Petrol and oil prices shall follow market mechanism and be regulated by the State according to oil price changes in the world and current socio-economic developments.

2. Major petrol and oil traders and petrol and oil distributors are entitled to decide the wholesaling prices. Major petrol and oil traders and petrol and oil distributors may decide retailing prices (except mazut which must be wholesaling prices) in their distribution systems according to actual costs incurred. Retailing prices must not exceed the regulated prices announced by competent authorities.

In an area that are far away from ports, major depots, petrol and oil production facilities, if the increase in actual (and audited) costs are legitimate and causes the selling prices to exceed the regulated prices, the major petrol and oil trader may decide the actual selling prices in such area (as notified to the Ministry of Industry and Trade) to cover the cost increase by up to 2% of the regulated prices announced at that time.

Major petrol and oil traders and petrol and oil distributors shall send selling price notifications to the Ministry of Industry and Trade and the Ministry of Finance immediately after their petrol and oil selling prices are decided.

3. Petrol and oil price regulation dates

Petrol and oil regulation dates shall be the 1st, 11th and 21st every month. In case a price regulation date is on weekend or public holiday, it will be delayed to the working day succeeding the weekend or public holiday. A price regulation period that occurs during the Lunar new year period shall be delayed to the next price regulation period.

In case of unusual fluctuations in petrol and oil prices that have considerable impacts on socio-economic development and the people's life, the Ministry of Industry and Trade shall submit a report to the Prime Minister for considering and deciding the petrol and oil price regulation time.

4. In case of fluctuations of price constituents that cause the base price to increase by more than 10%, or there are considerable fluctuations of petrol and oil prices that have considerable impacts on socio-economic development and the people's life, the Ministry of Industry and Trade shall submit a report to the Prime Minister for considering and deciding specific price regulation measures.

5. Petrol and oil products whose base prices are announced by the State are commonly used petrol and oil products on the market."

28. Article 38a below is added after Article 38:

"Article 38a. Base price calculation

1. Base price equals (=) import price multiplied by (x) import ratio (%) plus (+) domestic price multiplied by (x) domestic production ratio (%). Where:

a) The constituents to the base price, including tax-related costs, are only used for calculation of the base price.

b) Domestic production and import ratios (%) shall be determined every quarter; the ratio of the preceding quarter shall be used for calculation of base price of the price regulation periods in the next quarter.

Every quarter on the basis of data about petrol and oil import provided by the Ministry of Finance and domestic production of petrol and oil reported by major petrol and oil products (from the 21st of the month preceding the first month of the quarter to the 20th of the last month of the quarter), the authority presiding the petrol and oil price regulation shall determine the domestic production and import ratios (%) as the basis for base price calculation.

c) Import price equals (=) global price plus (+) cost of transport from the foreign country to a Vietnam's port plus (+) operating cost plus (+) contribution to the Price Stabilization Fund plus (+) standard profit plus (+) tax-related costs (import duties, excise tax (if any), environment protection tax (if any), VAT) plus (+) other costs and amounts payables according to applicable laws.

Where:

- The global price shall be determined by the Ministry of Industry and Trade, which is the mean price for the period between two base price announcements on the international market.

- The cost of transport from the foreign country to a Vietnam's port (including (+) or excluding (-) premium, which is a price-regulating element in the petrol and oil import contract, insurance cost, transport cost and other costs, if any) shall be determined by the Ministry of Finance, which is the weighted mean of petrol and oil import, and notified to the Ministry of Industry and Trade for calculation of the base price. The Ministry of Finance shall review and adjust the cost of transport from the foreign country to a Vietnam's port every 6 months (except unusual fluctuations).

- Tax-related costs are determined according to the weighted mean of import duties multiplied by (x) (global price plus (+) cost of transport from the foreign country to a Vietnam's port) multiplied by (x) exchange rate. The weighted mean of import duties shall be determined quarterly according to petrol and oil import quantity (from the 21st of the month preceding the first month of the quarter to the 20th of the last month of the quarter) and the weighted mean import duty rate (%) of the preceding quarter, and are the basis for calculation of base price of the next quarter. Exchange rate shall be determined in accordance with Clause 9 Article 1 of Decree No. 59/2018/NĐ-CP and its amending or replacing documents (if any).

The Ministry of Finance shall determined the weighted mean of import duty rate (%) and notify it to the Ministry of Industry and Trade, which will use it for calculation of tax-related costs.

- Excise tax (if any) shall be determined according to the price subject to excise tax multiplied by (x) excise tax rate. The price subject to excise tax shall be determined according to the constituents specified by the Ministry of Finance and shall be used by the Ministry of Industry and Trade for calculation of the base price. Excise duty rates shall comply with applicable regulations of law on excise tax.

Environment protection tax (if any), VAT and other amounts payable shall comply with applicable laws.

- The Ministry of Finance shall determine the standard operating costs and profits and notify it to the Ministry of Industry and Trade annually for calculation of the base price.

- Contribution to the Price Stabilization Fund shall comply with notification of the Ministry of Industry and Trade on the date of base price announcement.

d) Domestic price

Domestic price equals (=) global price plus (+) or minus (-) premium (if any) plus (+) cost of transport from domestic refineries to port (if any) (+) standard operating cost plus (+) contribution to the Price Stabilization Fund plus (+) standard profit plus (+) taxes, fees and other amounts payable according to applicable laws.

Where:

- Premium is a price-regulating element in the petrol and oil trading contract between the major petrol and oil trader and major petrol and oil producer or the enterprise having the contract to exclusively purchase of all petrol and oil products from the refinery; is the weighted mean of production. Premium used for calculation of petrol and oil prices shall not exceed the mean global price multiplied by (x) the lowest preferential import duty rate under international agreements (in case it is over 0%).

Premium and the cost of transport of petrol and oil from refineries to port (if any) shall be reviewed and adjusted by the Ministry of Finance every 06 months and notified to the Ministry of Industry and Trade, which will use it for calculation of the base price.

Taxes, fees and other amounts payable shall comply with applicable laws.

- Pricing constituents including the global price, excise tax (if any), standard operating costs, profit, contributions to Price Stabilization Fund shall comply with Point c Clause 1 of this Article.

2. The base price for biogasoline equals (=) percentage (%) of unleaded gasoline volume multiplied by (x) {(global price plus (+) cost of transport from the foreign country to a Vietnam's port plus (+) import duties) multiplied by (x) import ratio plus (+) global price plus (+) premium plus (+) cost of transport of gasoline from the domestic refinery to the port (if any)) multiplied by (x) domestic production ratio)} plus (+) percentage of ethanol fuel (%) multiplied by (x) ethanol fuel price plus (+) standard operating cost plus (+) contribution to Price Stabilization Fund plus (+) standard profit plus (+) taxes, fees and other amounts payables according to applicable laws. Where:

- The percentage of unleaded gasoline volume and percentage of ethanol fuel volume for calculation of biogasoline base price as prescribed in this Decree shall be the highest permissible blending ratio established by competent authorities; the actual blending ration must not exceed the limits established by competent authorities.

- The Ministry of Finance shall determine the ethanol fuel price used for calculation of biogasoline base price operating costs and notify it to the Ministry of Industry and Trade for calculation of the base price.

- Pricing constituents including: global price, cost of transport of gasoline from the foreign country to a Vietnam's port, premium for calculation of domestically produced gasoline price, cost of transport of gasoline from the domestic refinery to port (if any), import duties, excise tax, standard operating costs, contribution to the Price Stabilization Fund plus (+), standard profit shall comply with Point c Clause 1 of this Article.

3. Adjustment of base price constituents

a) On the 21st of the last month of every quarter, the major petrol and oil producer shall submit detailed reports to the Ministry of Industry and Trade and the Ministry of Finance on sales of each category of petrol and oil over the period from the 21st of the month preceding the first month of the quarter to the 20th of the last month of the quarter.

b) On the 21st of every month, the major petrol and oil trader shall send reports on prices for and quantities of domestically purchased ethanol and imported ethanol to the Ministry of Finance and the Ministry of Industry and Trade.

c) On June 21 and December 21 every year, the major petrol and oil trader shall send reports on costs of transport of petrol and oil from foreign countries to Vietnam's ports; premium of domestic sources; cost of transport of petrol and oil from refineries to ports (if any) to the Ministry of Finance.

d) Before March 31 every year, the major petrol and oil trader shall carry out an audit of costs of petrol and oil trading and send reports to the Ministry of Finance and the Ministry of Industry and Trade.

dd) In case the reporting date is on weekend or public holiday, the reporting may be sent on the succeeding working day. The trader shall be totally responsible for the accuracy of the report.

e) On the basis of the reports submitted by major traders, the Ministry of Finance shall carry out review, evaluation and site inspection (if necessary) to decide the cost of transport of petrol and oil from foreign countries to Vietnam's ports, premium of domestic sources; cost of transport of petrol and oil from refineries to ports (if any), standard operating costs, and notify the Ministry of Industry and Trade for calculation of the base price.

4. The Ministry of Finance shall provide guidance on determination of base price constituents."

29. Clause 2 of Article 39 is amended as follows:

“2. The Ministry of Industry and Trade shall disclose on its website information about: global oil prices, base prices, regulated prices for petrol and oil products; time of application, contributions to and use of Price Stabilization Fund in petrol and oil price regulation periods; other measures (if any).

The Ministry of Finance and the Ministry of Industry and Trade shall disclose on their websites information about quarterly balance of the Petrol and Oil Price Stabilization Fund."

30. Amendments to Point dd, addition of Point l to Clause 1; amendments to Point a and Point b Clause 2; amendments to Point b and addition of Point e Clause 3 Article 40:

“1. The Ministry of Industry and Trade shall:

dd) Take charge and cooperate with the Ministry of Finance in regulating petrol and oil prices, regulating contributions to and use of Price Stabilization Fund. In case of disagreement concerning the contributions to Price Stabilization Fund, the Ministry of Industry and Trade shall make the decision and take responsibility; report to the Prime Minister where necessary.

Take charge and cooperate with the Ministry of Finance in inspecting, supervising major traders and distributors implementing regulations of Article 38 of this Decree."

"l) Instruct remotes area to permit operations and limit capacity of small scale filling equipment according to applicable regulations."

“2. The Ministry of Finance shall:

a) Take charge and cooperate with the Ministry of Industry and Trade in inspecting and supervising major petrol and oil trader implementing regulations of Article 37 of this Decree.

b) Provide instructions on determination of base price constituents; contribution, use and management of Price Stabilization Fund; scales of Price Stabilization Funds; inspect and supervise major petrol and oil traders implementing regulations on contribution to and use of Price Stabilization Funds."

“3. The Ministry of Science and Technology shall:

b) Take charge and cooperate with relevant ministries and central authorities in developing and completing the system of National Technical Regulations and Standards for petrol and oil; completing the system of legislative documents on measurement and quality of petrol and oil for nationwide application.

e) Take charge and cooperate with relevant ministries and central authorities in measuring small scale filling equipment."

31. Clause 5a below is added to Article 40:

“5a. The Ministry of Public Security shall take charge and cooperate with relevant authorities in carrying out technical inspections and grant of certificates of conformity to fire safety regulations of petrol and oil filling equipment."

32. Clause 6 of Article 41 is amended as follows:

“6. In consideration of socio-economic situation and petrol and oil trading in Region 3 of mountainous areas according to regulations of law, the People’s Committees of provinces shall permit filling stations of the armed forces (military, police) to operate as petrol and oil retailers or retail franchisees with appropriate scale and equipment for the region; other conditions specified in this Decree and relevant legislative documents shall be satisfied."

Article 2. Effect

1. This Decree comes into force from January 02, 2022.

2. Clause 6 of Article 9, Clause 18 of Article 9, Clause 7 of Article 15, Clause 7 of Article 18, Article 36, Point e Clause 1 and Point c Clause 2 Article 40 of Decree No. 83/2014/NĐ-CP are annulled.

Article 3. Transition clauses

1. Petrol and oil traders that have been granted the petrol and oil import or export licenses, certificates of petrol and oil trading, Certificates of Eligibility For Petrol and Oil Retailing may keep operating under the conditions specified in Decree No. 83/2014/NĐ-CP until these licenses or certificates expire or there are changes to petrol and oil trading conditions.

2. The petrol and oil trading conditions specified in Decree No. 83/2014/NĐ-CP shall apply to satisfactory applications for new or reissuance of the petrol and oil import or export licenses, certificates of petrol and oil trading, Certificates of Eligibility For Petrol and Oil Retailing that are sent to competent authorities before the effective date of the Decree on amendments to Decree No. 83/2014/NĐ-CP.  Regulations of the Decree on amendments to Decree No. 83/2014/NĐ-CP shall apply to applications for other licenses and certificates.

Article 4. Responsibility for implementation and organization thereof

1. The Ministry of Industry and Trade and the Ministry of Finance shall cooperate with relevant Ministries and central authorities in providing guidance on implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, governmental agencies, Presidents of the People’s Committees of provinces, relevant enterprises, organizations and individuals are responsible for the implementation of this Decree.

 

 

ON BEHALF OF THE GOVERNMENT
PP PRIME MINISTER
DEPUTY PRIME MINISTER




Le Van Thanh

 

 


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