petroleum products import and export ... - …...processing of applications by doe •applications...
TRANSCRIPT
PETROLEUM PRODUCTS IMPORT AND EXPORT
Landeni Kabini
04 October 2019
Presentation Outline
• Applicable Legislative framework
• Role of DoE
• Why do we import
• Who can import
• Who can export
• Processing of application
• Documents to be submitted for imports
• Documents to be submitted for exports
• Section 24 of the imports and exports guidelines
• Crude oil and diesel imports statistics
Applicable Legislative Framework
• Petroleum Products Act, 1977. DoE
• Guidelines for Recommendations on the Importation and Exportation of Crude Oil and Petroleum Products, 2006 (Import and export guidelines). DoE
• International Trade Administration Commission Act, 2002 (ITAC)
• SARS : Customs and Excise Act number 91 of 1964
Role of DoE in import and export
• Petroleum products are regulated in South Africa
• Petroleum products are subject to import and export control
• A permit is required to import or export petroleum products
• Applications to import or export are first sent to DoE
• The DoE makes recommendations to ITAC
• ITAC issues the permit to the applicant
Why do we import?
• South Africa has limited proven crude oil reserves
• Local refineries are currently not operating at their optimal level
• Domestic demand is greater than available supply
• South Africa has become a net importer of petroleum products
Who can import?
• Petroleum Products
• Licensed wholesalers and manufacturers can apply for recommendations to import petroleum products
• Airline companies can also apply for recommendations to import jet fuel for their own consumption
• Crude oil
• Any person can apply for recommendation to import crude oil
Who can export petroleum?
• Any person can apply for recommendations to export petroleum products.
Processing of Applications by DoE
• Applications are dropped in Import & Export box at the foyer of the department building (HQ)
• For the applicants not in Pretoria, applications can be sent via email or post
• The applications are retrieved daily• Recommendations are sent to ITAC within 24hrs.• ITAC issue permit directly to applicant(s) in between 3-5
working days• ITAC Administrative Fees Regulations has just been
gazetted for public comment on the 12/09/2019 http://www.itac.org.za/news-headlines/itac-latest-news/itac-administrative-fee-regulations
Documents to be submitted
IMPORTS
• Application to register as an importer (IE230)
• Application to import (IE461)
• Tax clearance certificate
• Wholesale license certificate
• Motivational letter
Documents to be submitted
EXPORTS
• Application to register as an exporter (IE230)
• Application to export (IE361)
• Tax clearance certificate
• Motivational letter
Section 24 of the imports and export guidelines
Section 24 of the guidelines states that “Licensed manufactures and licensed wholesalers, in possession of a recommendation and permit to import or export the consignment contemplated in such recommendation and permit must inform the Department of Energy, within 7 days of the petroleum products or blending component concerned entering or leaving South Africa, of the nature of such product or blending component, its Cost, Insurance and Freight (CIF) price and volumes of the consignment concerned.”
Section 24 of the imports and export guidelines…..
• Pleading with the applicants to comply with the section.
• This information will help government with policy and decision making.
• It is difficult to make policy decision with assumptions.
Imports Statistics
• Crude Oil imports
Total quantity of crude oil imported from April to June 2019 is 36 million barrels (as per SARS data).
Crude oil imported by Oil companies as per their reports is 31 million barrels.
Oil companies accounted for 85% of the total crude oil imported.
It is assumed that the remaining 15% is accounted for by independent wholesalers. Reports not sent to the Department as per requirements.
Import Statistics
• Diesel Imports
The total diesel volumes imported from April to June 2019 was 3,5 billion liters (SARS data)
Diesel imported by the oil companies as per their reports was 1 billion liters
Oil companies accounted for only 29% of diesel imports.
The remaining 71% of diesel imports is assumed to be imported by independent wholesalers.
Thank You!!!!!!
Questions???