Vietnam: Proposal for new regulations on eligibility requirements for petrol and oil retailers

Proposal for new regulations on eligibility requirements for petrol and oil retailers in Vietnam (Image from the Internet)

Regarding this matter, LawNet responds as follows:

The Ministry of Industry and Trade in Vietnam is seeking opinions on the draft Decree on petrol and oil trading.

Proposal for new regulations on eligibility requirements for petrol and oil retailers in Vietnam

According to Article 15 of the draft Decree on petrol and oil trading, traders meeting the following conditions are issued a certificate of eligibility to act as petrol and oil retailers by the Department of Industry and Trade in Vietnam:

- Be enterprises established by the law.

- Have a petrol and oil retail station owned or leased with a lease term of at least five (05) years, which has been granted a certificate of eligibility for retail petrol and oil trading by the regulations in the draft Decree on petrol and oil trading.

- Have a written agreement in principle in one (01) of three (03) forms: acting as a petrol and oil retailer for one (01) petrol and oil wholesaler or one (01) petrol and oil distributor; obtaining petrol and oil retail rights from one (01) petrol and oil wholesaler or one (01) petrol and oil distributor; purchasing and selling fuel from the wholesaler or distributor to retail at the trader’s petrol and oil retail station system.

Proposed new regulations on the procedures for issuing certificates of eligibility to act as petrol and oil retailers in Vietnam

According to Article 16 of the draft Decree on petrol and oil trading:

- The Department of Industry and Trade in Vietnam has the authority to issue a certificate of eligibility to act as petrol and oil retailers for traders whose main headquarters are located within the jurisdiction, provided they meet the conditions stated in Article 15 of the draft Decree on petrol and oil trading.

- Application for issuing the certificate of eligibility to act as a petrol and oil retailer includes:

+ For new issuances, the application consists of:

++ The original application form for the certificate of eligibility to act as a petrol and oil retailer according to Form No. 05 in the Appendix attached to the draft Decree on petrol and oil trading that clearly states the request to issue a Certificate for operating in one (01) of three (03) forms: acting as a petrol and oil retailer for a petrol and oil wholesaler or distributor; obtaining retail rights from a petrol and oil wholesaler or distributor; purchasing fuel from a wholesaler or distributor to retail at the trader’s fuel retail system.

++ A notarized copy of the Enterprise Registration Certificate;

++ Notarized copies of certificates of eligibility for retail petrol and oil trading issued to the trader;

++ The original principle agreement on acting as a petrol and oil retailer for a wholesaler or distributor; or the original principle agreement on obtaining retail rights from a wholesaler or distributor; or the original principle agreement on purchasing fuel from a wholesaler or distributor to retail at the trader’s system, as stipulated in Clause 3, Article 15 of the draft Decree on petrol and oil trading.

+ For modifications or supplements:

In the event of changes to the content of the certificate of eligibility to act as a petrol and oil retailer, the trader must submit a application to the competent authority requesting amendments. The application includes:

++ The original application form for modification or supplementation of the certificate of eligibility to act as a petrol and oil retailer according to Form No. 05 in the Appendix attached to the draft Decree on petrol and oil trading;

++ The original certificate of eligibility to act as a petrol and oil retailer previously issued;

++ Notarized copies of documents proving the need for amendments.

+ For re-issuance

In case the certificate of eligibility to act as a petrol and oil retailer is lost, damaged, or destroyed in another form, the trader must submit a application requesting re-issuance. The application includes:

++ The original application form for re-issuance of the certificate of eligibility to act as a petrol and oil retailer according to Form No. 05 in the Appendix attached to the draft Decree on petrol and oil trading;

++ The original or a copy of the certificate of eligibility to act as a petrol and oil retailer (if any).

+ If the certificate of eligibility to act as a petrol and oil retailer expires, the trader must submit an application for a new certificate of eligibility, as specified in point a, clause 2, Article 15 of the draft Decree on petrol and oil trading, to the competent authority at least thirty (30) days before the Certificate expires.

- Procedure for issuing the certificate of eligibility to act as a petrol and oil retailer:

+ The trader submits one (01) set of applications to the competent authority.

+ In case the application is incomplete, within three (03) working days from the date of receiving the application, the competent authority must issue a written request for supplementary documents.

+ Within three (03) working days from the date of receiving the complete application, the competent authority must issue the certificate of eligibility to act as a petrol and oil retailer according to Form No. 06 in the Appendix attached to the draft Decree on petrol and oil trading for the trader. If the issuance is denied due to non-eligibility, the competent authority must issue a written response stating the reasons.

- The certificate of eligibility to act as a petrol and oil retailer is valid for five (05) years from the date of issuance.

- The trader granted the certificate of eligibility to act as a petrol and oil retailer must pay fees and charges as stipulated by the Ministry of Finance.

- The Department of Industry and Trade considers revoking the certificate of eligibility to act as a petrol and oil retailer in the following cases:

+ The trader no longer continues to act as a petrol and oil retailer and submits a written request for revocation of the previously issued Certificate to the Department of Industry and Trade.

+ The trader ceases all petrol and oil trading activities for a period of thirty (30) days or more.

+ The trader is dissolved or bankrupt as per the law.

+ The trader violates the conditions for petrol and oil retailers and fails to rectify the violation within ninety (90) days from the date the functional authority issues a decision on administrative sanction.

+ The trader repeats violations of quantity and quality assurance regulations for fuel in circulation on the market and other quality regulations stipulated by law.

More details may be found in draft Decree on petrol and oil trading.

To Quoc Trinh

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