ANNOUNCEMENT 06 Dec 2019
December 6th, 2019 - The Chinese government published a list of non-state enterprises officially sanctioned to import fuel oil for refining.
NUMBER OF INTERVENTIONS
PRC Ministry of Commerce, December 6th, 2019. (关于2019年第二批燃料油非国营贸易进口申请企业有关情况的公示)
On December 6th, 2019, the Chinese Ministry of Commerce (MOFCOM) added 11 non-state firms to the roster of those allowed to import fuel oil for refining. Please see the original announcement from MOFCOM for the full list.
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.
Two firms were also included in the list as having been rejected from approval.