ANNOUNCEMENT 25 Dec 2018

December 25th, 2018 - The Chinese government published a list of non-state enterprises officially sanctioned to import fuel oil for refining.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

PRC Ministry of Finance, December 25th, 2018. (商务部关于公布2018年第二批成品油(燃料油)新增非国营贸易进口企业的通知)
http://www.mofcom.gov.cn/article/b/c/201812/20181202819761.shtml

Inception date: 01 Jan 2019 | Removal date: open ended
Still in force

Import licensing requirement

In December 2018, the Chinese government added the following 11 non-state firms to the roster of those allowed to import fuel oil for refining:

  • Shandong Zhonghai Fine Chemical Co., Ltd.
  • Shandong Huasheng Chemical Co., Ltd.
  • Wuyi Xinyue Combustion Co., Ltd.
  • Shandong Express Hainan Development Co., Ltd.
  • Shanghai Chuhui International Trade Co., Ltd.
  • Baifuyang Xinhai Energy (Zhuhai) Co., Ltd.
  • Anhui Fengyuan International Trade Co., Ltd.
  • China Communications Resources Co., Ltd.
  • Ningbo Bohui Chemical Technology Co., Ltd.
  • Zhejiang Property Chemical Group Ningbo Co., Ltd.
  • Shaanxi Yanchang Petroleum International Enterprise Co., Ltd.

Chinese policy dictates that non-state importers must acquire this permission to carry out any fuel oil imports, ensuring state-run firms have an advantage.

In order to qualify for these licenses, independent firms must satisfy various conditions, mainly relating to the size of the firm, e.g. it must have a credit line of USD 20m (specifically USD, not Chinese RMB) and be prepared to import a minimum of 50,000 tons of fuel oil per year.

The total non-state national fuel oil import quota is 16.2m tonnes.

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