Why are many oil tanks suspended customs procedures for petroleum imports and exports?

Dinh Vu petroleum depot

According to the General Department of Vietnam Customs (GDVC), to ensure the requirements of state management in the field of customs, combat trade fraud for petroleum products imports, exports, temporarily import and re-export, on June 15, 2020, the Government issued Decree No. 67/2020/ND-CP amending and supplementing a number of articles of Decree No. 68/2016/ND-CP dated July 1, 2016 on trading of duty-free goods, storage facilities, locations for customs clearance procedures, commodity gathering, customs inspection and supervision which was effective from August 10, 2020.

Accordingly, it regulates that oil depots (areas for storing petroleum for export, import, temporary import and re-export) must be equipped with measuring devices that must be connected online to provide data on amounts of oil and petroleum products stored to customs authorities.

The time limit for implementation is specified: “The key traders or petroleum traders recognized to satisfy business and customs inspection conditions shall equip measuring devices as prescribed herein within two years from the effective date of this Decree. Accordingly, until August 10, 2022, oil depots engaged in exports, imports, temporary import and re-export business must meet the above regulations.”

By the time limit prescribed by law, many enterprises have completed the installation of automatic tank metering equipment connected to Customs, but many enterprises have not completed the installation.

According to GDVC, by August 10, 2020, according to the provisions of Decree No. 67/2020/ND-CP, the GDVC will suspend the implementation of customs procedures at oil depots that do not equip measuring devices that must be connected online to customs authority, do not determine the amount of re-exported petroleum and do not collect tax on temporarily imported petrol until enterprises install measuring devices and connected to the customs authority which must meet the conditions as prescribed in Decree No. 67/2020/ND-CP.

The General Department of Vietnam Customs has issued many decisions to suspend the decision on recognizing inspection and supervision conditions for petroleum depots.

In Hai Phong, the GDVC issued a decision to suspend recognizing Cat Bi aviation fuel warehouse of the Petrolimex Aviation Fuel Joint Stock Company-Cat Bi Branch; PETEC Hai Phong petroleum depot of Hai Phong Branch of PETEC Trading and Investment Corporation; Dinh Vu petroleum depot of the 19-9 Joint Stock Company.

In HCM City, GDVC also issued a decision to suspend VK102 petroleum depot; Lam Tai Chanh Petroleum Depot of Lam Tai Chanh Petrochemical Products Trading Co., Ltd; Cat Lai oil refinery warehouse of HCM City Petroleum Company Limited; and PETEC Cai Mep petroleum depot of the Cai Mep Branch of PETEC Trading and Investment Corporation.

The decision also applies to the Can Tho Petroleum and LPG Deport of Saigon Petro Co., Ltd-Can Tho Branch; Nhat Minh Petroleum Depot of Nhat Minh Petroleum Depot Joint Stock Company; Duong Dong-An Thoi petroleum depot of Duong Dong Group Joint Stock Company's branch in Phu Quoc; Nam Song Hau petroleum depot of Nam Song Hau Petroleum Investment and Trading Joint Stock Company; Cam Ranh Aviation Fuel Warehouse of Petrolimex Aviation Fuel Joint Stock Company; Tho Xuan petroleum depot of Vietnam Aviation Fuel Company Limited; Phu Bai Petroleum Depot of Vietnam Aviation Fuel Company Limited.

According to the decision of the GDVC, within six months from the effective date of the decision, if the managing companies fail to complete the installation of measuring devices which must be connected online to provide data on amounts of oil and petroleum products stored, GDVC will revoke the decision on recognizing to have satisfied customs inspection and supervision conditions issued by the Customs authority.