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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II APPLICATIONS FOR PROCESSED OIL BUSINESS LICENSES AND ACCEPTANCE OF APPLICATIONS CHAPTER III PROCEDURES AND TIME LIMITS FOR THE EXAMINATION OF APPLICATIONS FOR PROCESSED OIL BUSINESS LICENSES CHAPTER IV ISSUE OF AND CHANGES IN CERTIFICATES OF APPROVAL FOR PROCESSED OIL BUSINESS CHAPTER V SUPERVISION AND CONTROL CHAPTER VI LEGAL RESPONSIBILITY CHAPTER VII SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. These Measures are formulated in accordance with the Decision of the State Council on Applying Administrative Licensing to Matters that Need to Remain Subject to Administrative Examination and Approval (No. 412 of the State Council) and other relevant laws and regulations for the purpose of strengthening the supervision and control of the processed oil market, standardizing the processed oil business activities and maintaining the processed oil market order. Article 2. The enterprises engaging in the wholesale, storage and retail of processed oil within the territory of the People's Republic of China must observe these Measures and other relevant laws and regulations. Article 3. The Ministry of Commerce shall be in charge of the supervision and control of the processed oil market throughout the country. The administrative departments of commerce of the governments of all provinces, autonomous regions and municipalities directly under the Central Government and all cities directly under state planning (hereinafter referred to as the administrative department of commerce of the people's government at the provincial level) shall be in charge of formulating the planning for the development of filling stations and storage sector, and of the organization and coordination of the supervision and administration of processed oil business activities, in their respective administrative regions. Article 4. For the purpose of these Measures, processed oil means gasoline, kerosene and diesel oil. CHAPTER II APPLICATIONS FOR PROCESSED OIL BUSINESS LICENSES AND ACCEPTANCE OF APPLICATIONS Article 5. An enterprise that wishes to engage in the wholesale of processed oil shall submit an application to the administrative department of commerce of the people's government at the provincial level where it is located. The latter shall, after making examination, submit the application documents and its preliminary comments thereon to the Ministry of Commerce. The Ministry of Commerce shall make a decision about whether or not to grant a business license for the wholesale of processed oil. Article 6. An enterprise that wishes to engage in the storage or retail of processed oil shall submit an application to the administrative department of commerce of the people's government at the city (city divided into districts, the same below) level where it is located. The latter shall, after making examinations, submit the application documents and its preliminary comments thereon to the administrative department of commerce of the people's government at the provincial level. The administrative department of commerce of the people's government at the provincial level shall make a decision about whether or not to grant a business license for the storage or retail of processed oil. Article 7. An enterprise applying for a business license for the wholesale of processed oil must meet the following requirements: (1) having a stable supply of processed oil; (2) having a wholly-owned or controlling-share-held processed oil depot with a capacity of not less than 4,000 cubic meters, the construction of which must conform to the Code for Design of Oil Depots (GBJ74-84); (3) having pipelines for unloading processed oil, a special railroad line or a port for transporting processed oil and other necessary facilities; (4) its oil depot and other facilities conforming to the relevant provisions of the state concerning safety in production and environmental protection; (5) having professional and technical personnel in the fields of inspection, metrology, storage and fire prevention and control of processed oil; (6) meeting the requirements of the planning for the development of processed oil wholesale networks; and (7) having sound internal management systems. Article 8. An enterprise applying for a business license for the storage of processed oil must meet the following requirements: (1) its oil storage facilities conforming to the planning for the distribution of oil depots; (2) having an oil depot with a capacity of not less than 4,000 cubic meters, the construction of which must conform to the Code for Design of Oil Depots (GBJ74-84); (3) having pipelines for unloading processed oil, a special railroad line or a port for transporting processed oil and other necessary facilities; (4) the design and construction of its oil depot conforming to the relevant provisions concerning safety in production and environmental protection; (5) having professional and technical personnel with knowledge of inspection, metrology, storage and fire prevention and control of processed oil; and (6) having sound internal management systems. Article 9. An enterprise applying for a business license for the retail of processed oil must meet the following requirements: (1) having a stable supply of processed oil and having made an oil supply agreement with the enterprises with a business license for the wholesale of processed oil; (2) complying with the planning for the development of the local industry of filling stations; (3) the design and construction of its filling stations conforming to the relevant national standards; (4) the construction of its filling stations conforming to the relevant provisions of the state concerning the land administration, fire prevention and control and environmental protection; (5) having professional and technical personnel with knowledge of inspection, metrology, storage and fire prevention and control of processed oil; and (6) its aquatic filling stations (vessels) for the supply of processed oil used for vessels conforming to the relevant provisions concerning ports, water transportation safety and prevention and control of water pollution, in addition to the above-mentioned provisions. With regard to the filling outlets for the needs of rural areas and limited to the sale of diesel oil, the administrative departments of commerce of the people's governments at the provincial level shall, in the light of the local conditions, formulate their respective provisions and administrative measures. Article 10. Each administrative department of commerce shall, in its working place, make public the requirements, procedures, time limit, documents to be submitted and a model application form for the application for processed oil business license. Article 11. If it holds that the application documents are not complete or they do not conform to the requirements, the administrative department of commerce receiving the application shall, immediately or within five working days from the receipt of the application, notify the applicant of the documents to be added or corrections to be made. If no such notification has been made, the application shall be treated as accepted as of the receipt of the application documents. Article 12. The administrative department of commerce shall accept an application for processed oil business license, if the applicant has submitted complete and proper application documents or has added the application documents or made corrections as required. The administrative department of commerce shall issue a certificate with the special stamp of the department affixed thereon and the date indicated, certifying its acceptance of the application for a processed oil business license. In the case of refusal to accept an application for a processed oil business license, the administrative department of commerce shall issue a certificate with the special stamp of the department affixed thereon and the date indicated, stating reasons for the refusal and notifying the applicant of his right to apply for an administrative review or bring an administrative action. Article 13. The administrative department of commerce accepting an application shall examine the submitted application documents and advance comments thereon and, if the application is subject to the examination of an administrative department of commerce at a higher level, submit the application documents and its preliminary comments thereon to the administrative department of commerce at a higher level. CHAPTER III PROCEDURES AND TIME LIMITS FOR THE EXAMINATION OF APPLICATIONS FOR PROCESSED OIL BUSINESS LICENSES Article 14. After receipt of an application for a license for the wholesale of processed oil, the administrative department of commerce of the people's government at the provincial level shall designate at least two persons to complete the examination within 20 working days and submit the application documents and its preliminary comments thereon to the Ministry of Commerce. The Ministry of Commerce shall complete the examination within 20 working days from receipt of the materials submitted by the administrative department of commerce of the people's government at the provincial level. An applicant meeting the requirements as provided for in Article 7 hereof shall be given a license for the wholesale of processed oil and a Certificate of Approval for the Wholesale of Processed Oil. An applicant failing to meet the relevant requirements shall be given a notice in writing of the decision of disapproval with reasons being indicated. Article 15. After receipt of an application for a license for the storage of processed oil, the administrative department of commerce of the people's government at the city level shall designate at least two persons to complete the examination within 20 working days and shall submit the application documents and its preliminary comments thereon to the administrative department of commerce of the people's government at the provincial level. The administrative department of commerce of the people's government at the provincial level shall complete the examination within 20 working days from receipt of the materials submitted by the administrative department of commerce of the people's government at the city level. An applicant meeting the requirements as provided for in Article 8 hereof shall be given a license for the storage of processed oil and a Certificate of Approval for the Storage of Processed Oil; an applicant failing to meet the relevant requirements shall be given a notice in writing of the decision of disapproval with reasons being indicated. If no decision can be made within 20 working days, with the approval of the person in charge of the department, the time limit may be extended for another 10 days and the applicant shall be notified of the reasons for such extension. Article 16. After receipt of an application for a license for the retail of processed oil, the administrative department of commerce of the people's government at the city level shall designate at least two persons to complete the examination within 20 working days and shall submit the application documents and its preliminary comments thereon to the administrative department of commerce of the people's government at the provincial level. The administrative department of commerce of the people's government at the provincial level shall complete the examination within 20 working days from receipt of the materials submitted by the administrative department of commerce of the people's government at the city level. An applicant meeting the requirements as provided for in Article 9 hereof shall be given a license for the retail of processed oil and a Certificate of Approval for the Retail of Processed Oil; an applicant failing to meet the relevant requirements shall be given a notice in writing of the decision of disapproval with reasons being indicated. If no decision can be made within 20 working days, with the approval of the person in charge of the department, the time limit may be extended for another 10 days and the applicant shall be notified of the reasons for such extension. Article 17. Where, in its opinion, it is necessary to hold hearings on any application for a processed oil business license, the administrative department of commerce shall make a public announcement and hold such hearings. Article 18. An enterprise engaging in processed oil business that wishes to establish a branch shall go through the application formalities for such establishment in accordance with these Measures. An enterprise engaging in processed oil business that is to suspend or terminate its business shall go through the suspension or cancellation formalities with the department issuing the license. CHAPTER IV ISSUE OF AND CHANGES IN CERTIFICATES OF APPROVAL FOR PROCESSED OIL BUSINESS Article 19. The certificates of approval for processed oil business shall be uniformly printed by the Ministry of Commerce. The Certificates of Approval for the Wholesale of Processed Oil shall be issued by the Ministry of Commerce; the Certificates of Approval for the Storage of Processed Oil and the Certificates of Approval for the Retail of Processed Oil shall be issued by the administrative departments of commerce of the people's governments at the provincial level. Article 20. Where an enterprise engaging in the wholesale of processed oil wishes to change any particular of its Certificate of Approval for the Wholesale of Processed Oil, an application shall be submitted to the Ministry of Commerce through the administrative department of commerce of the people's government at the provincial level by the enterprise's presenting of the relevant certifying documents and the original approval certificate. In the case of change of the corporate name, a certificate issued by the administrative department for industry and commerce certifying such change shall be submitted; in the case of change of the legal representative of the corporation, the corresponding certificates shall be submitted. Those still qualified for the wholesale of processed oil shall have a new Certificate of Approval for the Wholesale of Processed Oil as issued by the Ministry of Commerce. Article 21. Where an enterprise engaging in the storage or retail of processed oil wishes to change any particular concerned, an application, together with the relevant certifying documents on the change, shall be submitted to the administrative department of commerce of the people's government at the provincial level. In the case of change of the corporate name, a certificate issued by the administrative department for industry and commerce certifying such change shall be submitted; in the case of change of the legal representative of the corporation, the corresponding certificates shall be submitted. The administrative department of commerce of the people's government at the provincial level shall make examination and issue a new Certificate of Approval for the Storage of Processed Oil to the enterprise if it is still qualified for the storage of processed oil, or a new Certificate of Approval for the Retail of Processed Oil to the enterprise if it is still qualified for the retail of processed oil. Article 22. The changes in the Certificate of Approval for the Wholesale of Processed Oil, the Certificate of Approval for the Storage of Processed Oil or the Certificate of Approval for the Retail of Processed Oil of an enterprise due to the change of the competent authority of the enterprise shall apply other provisions that shall be separately formulated. CHAPTER V SUPERVISION AND CONTROL Article 23. The administrative departments of commerce at a higher level shall conduct supervision and inspection on the administration by the administrative departments of commerce at a lower level of the processed oil market control and promptly correct irregular acts in the work of processed oil market control. Article 24. The administrative departments of commerce of the people's governments of various levels shall strengthen the supervision and control of the local processed oil market and investigate into and deal with the irregular acts of enterprises engaging in processed oil business. Article 25. No fees shall be charged for the administrative licensing for processed oil business or follow-up supervision and control by the administrative departments of commerce. The administrative departments of commerce shall apply to the local financial administration for funds required for processed oil market control. Article 26. The Ministry of Commerce and the administrative departments of commerce of the people's governments at the provincial level shall publish the names of enterprises that have obtained a processed oil business license and of enterprises engaging in processed oil business that have had any change or been cancelled. Article 27. No one may forge, sell or purchase, let, lend or otherwise transfer any certificate of approval for processed oil business. Article 28. The processed oil for special use by special users shall be used in accordance with the provisions of the state concerning the quantity, purpose and the limits of supply and may not be sold to others by such special users. Article 29. The enterprises engaging in processed oil business shall do business lawfully and may not commit any of the following acts: (1) doing business without certificate or license or with certificate and license not consistent with each other or beyond its authorized scope of business; (2) failure of any filling station to use filling machines or other measuring instruments or to use tax-control devices as required; (3) using any filling machine that is not tested or exceeds the term of validity of test and that does not meet the requirements for explosion prevention and protection, or modifying without authorization any filling machine or docking oil by other means; (4) mixing impurities or imitations, passing a fake product off as a genuine one or passing a defective product off as high-quality one; (5) selling the processed oil whose use has been expressly prohibited by the state or whose quality is inferior; (6) trading in smuggled or illegally refined processed oil; (7) driving up oil prices or dumping oil in violation of the processed oil price policy of the state; and (8) other activities as are prohibited by laws or regulations of the state. Article 30. Each enterprise engaging in the retail of processed oil shall purchase processed oil from enterprises with a license for the wholesale of processed oil. No enterprise engaging in the retail of processed oil may sell processed oil at a commission basis for any entity without a license for the wholesale of processed oil. No enterprise engaging in the wholesale of processed oil may sell processed oil to any enterprise without a processed oil business license. When storing processed oil for other entities, an enterprise engaging in the storage of processed oil must verify the legality of the source of the processed oil. Article 31. The administrative department of commerce that made a decision to give a processed oil business license or the administrative department of commerce at a higher level may, at the request of the interested person or by virtue of its power, annul the said decision, in case of any of the following: (1) the decision was made by a functionary of the administrative department by abusing his power or neglecting his duty when the applicant did not meet the statutory requirements; (2) the decision was made beyond the authority; (3) the decision was made when the applicant was not qualified or did not meet the statutory requirements; or (4) it involves any other circumstances in which, according to law, a decision on administrative licensing may be annulled. CHAPTER VI LEGAL RESPONSIBILITY Article 32. Any administrative department of commerce or any of its staff who commits any of the following acts in violation of these Measures shall be ordered by the administrative department at a higher level to get right, with the person in charge who is held directly responsible and other person directly responsible being given an administrative sanction in the case of gross violation: (1) failing to accept an application that meets the statutory requirements; (2) failing to give to an applicant the reasons for refusing to accept its application or to grant license; (3) granting a license to an applicant not meeting the statutory requirements or beyond its authority; (4) refusing to make an approval decision or failing, without justification, to make such a decision within the statutory time limit for an applicant meeting the statutory requirements; or (5) failing to perform or effectively perform its supervision duty, which causes serious consequences. Article 33. Any administrative department of commerce that charges fees without authorization during its administrative licensing for processed oil business shall be ordered by the administrative department at a higher level to refund the fees illegally charged, with the person directly responsible being given an administrative sanction. Article 34. Any enterprise engaging in processed oil business that commits any of the following acts shall be given an administrative punishment by the administrative department of commerce. If the circumstance is serious, its certificate of approval for processed oil business shall be revoked: (1) altering, selling, letting, lending or otherwise illegally transferring its certificate of approval for processed oil business; (2) any special user of processed oil selling oil for special use without authorization; (3) building any filling station or oil depot without observing the requirements or procedures provided for herein; (4) selling processed oil or that expressly prohibited by the state by mixing impurities or imitations, passing a fake product off as a genuine one, passing a defective product off as high-quality one or passing an inferior product off as a standard one. (5) selling smuggled processed oil; (6) any enterprise engaging in the wholesale of processed oil selling processed oil to any enterprise without a processed oil business license; (7) any enterprise engaging in the retail of processed oil purchasing processed oil from any enterprise without a license for the wholesale of processed oil; (8) obtaining a business license by means of fraud or bribery or other unfair means; (9) conducting business beyond its authorized scope of business; (10) concealing the relevant facts from, or providing false information or refusing to provide real information about its business activities to, the supervision and inspection authorities; or (11) other illegal acts as are provided for by laws, regulations or rules. Article 35. If any applicant conceals the relevant facts or provides false information, the administrative department of commerce shall make a decision of non-acceptance or of refusal to grant a license and give a warning to the applicant. Article 36. Any citizen, corporation or other organization that engages in processed oil business without being licensed by the administrative department of commerce shall be prohibited and given an administrative punishment by the local administrative department of commerce in conjunction with other relevant departments. CHAPTER VII SUPPLEMENTARY PROVISIONS Article 37. The power to interpret these Measures shall be vested in the Ministry of Commerce. Article 38. These Measures shall come into force as of January 1, 2005. |
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