In order to implement the "China (Zhejiang) Pilot Free Trade Zone Overall Plan", in accordance with the spirit of oil and gas system reform, MoC hereby presents the following opinions on the enterprises in Zhejiang (China) Pilot Free Trade Zone (FTZ) applying for import qualifcation of crude oil for non-state trading, and the related work announcement is as follows:

First, application conditions and application materials

(A) Application Conditions

Zhejiang Free Trade Zone enterprises must have the qualifications of Chinese enterprises, had registered in Zhejiang Free Trade Zone and handled foreign trade operators record registration. At the same time, it must also have the following conditions:

1. The applicant enterprise (or its shareholders) shall have the appropriate crude oil storage and operation qualification and shall hold not less than 100,000 m3 of crude oil depot within the administrative area of Zhoushan City. The construction and execution of works of the depot shall comply with relevant state regulations and shall be checked and accepted according to law.

2. Related business qualifications of hazardous chemicals.

3. The enterprise operates normally with good credit, no violation of state laws and regulations, bank credit reached 2A level, with no less than the equivalent of 1 billion U.S. dollars’ provincial commercial bank credit line.

4. With the corresponding crude oil procurement and product sales channels, there are not less than five professionals with more than 5 years’ experiences engaged in international oil.

(B) Application Materials

Applicants should submit the following documents:

1. Business application letter, including: (1) the company's basic conditions and captions meeting the application requirements; (2) license copy of business corporation, record registration form for foreign trade operators, foreign-invested enterprise approval certificate copy (if the applicant is foreign-funded enterprises).

2. The applicant’s Certificate of Approval for Storage of Crude Oil or its shareholder's Certificate of Approval for Operation of Crude Oil Storage; the applicant’s Articles of Association of the Company; the applicant’s the certificates of land ownership of the crude oil depots and supporting facilities owned by the enterprises, and permit file or acceptance document of the crude oil depot and supporting facilities legally issued by Land and Resources department, Planning and Construction Bureau, public security fire control institutions, environmental protection department and quality inspection departments.

3. "Hazardous Chemicals Permit" issued by the safety regulatory authorities or "Hazardous Cargo Operation Certificate of Port" issued by port authority.

4 Resume of the professional engaged in crude oil international trade and the normal labor contract signed with applicant enterprise.

5. The certificate issued by the issuing bank proving the enterprises credit reaches level 2A or above, the original and photocopy of the document of trade credit line with the equivalent of at least 1 billion U.S. dollars of commercial banks above the provincial (autonomous region, municipality) level.

6. Certificates of no smuggling or violation records issued by the customs at the place where the enterprise is located, no tax evasion, Certificates of no tax evasion and tax fraud records issued by the local taxation department. Evidence of no evasion of foreign exchanges and arbitrage of exchange records issued by the local foreign exchange administration department.

7. Business plan on foreign procurement and domestic sales.

Second, declaration and review

(A) Declaration. Enterprises that meet these requirements may apply to the commercial department in charge of Zhejiang Free Trade Zone.

(B) First review. The commercial department of Zhejiang FTZ conducted preliminary examination of the enterprise application materials and reported the application materials that meet the requirements to Zhejiang Provincial Department of Commerce, who reported materials to the Ministry of Commerce pf PRC after examined. The department for first review shall verify the authenticity of the enterprise application materials and send personnel to carry out on-the-spot verification of the applicant’s crude oil depots, terminals and other facilities and fill in the on-site verification form.

(C) Review. Ministry of Commerce of PRC to review the application materials. During the review, the Ministry of Commerce may, in conjunction with relevant departments, send personnel to verify the relevant facilities on the site of the enterprise.

(D) Publicity. Ministry of Commerce will make the list of qualified enterprises in the Ministry of Commerce website publicity, for10 working days. During the publicity, if there is any objection to the publicity list, the industry participants may apply to the Ministry of Commerce.

(E) Announcement. After publicity period expired without objection, Ministry of Commerce of PRC announced the enterprises eligible list in Zhejiang Free Trade Experimental Zone for crude oil non-state trading.  

Third, business regulations and supervision and administration

(1) Enterprises in Zhejiang FTZ who have obtained the import qualification of crude oil for non-state trade shall abide by the state industrial policies and trade policies, strictly implement the relevant provisions on the use of imported crude oil, establish and manage the standing book for the import, sale, stock and out-put and in-put of warehouse, retain the certificates of crude oil sources and sales directions and report to the Ministry of Commerce every six months for the record of the relevant information.

(2) The enterprises in Zhejiang FTZ that have obtained the import qualification of non-state crude oil should operate according to law. In the event of any of the following acts, the Ministry of Commerce suspends or cancels the qualifications of importing crude oil for non-state trade according to the seriousness of its circumstances:

1. The enterprise sell the imported crude oil to enterprises that do not have the qualification to use the imported crude oil;

2. Illegally engaging in oil-related financial derivatives activities;

3. Violation of customs, quality, environmental protection, safety, fire and other laws and regulations;

4. Occurrence of large and above fire, safety and environmental pollution accidents;

     5. Other violations of relevant laws and regulations.