Petroleum Supply for EPZs Pending Prime Minister’s Nod

Source: Pano feed

According to the Ho Chi Minh City People’s Committee, to encourage performance of Linh Trung Export Processing Zone, the Ministry of Trade (now Ministry of Industry and Trade) and the Ministry of Planning and Investment previously agreed in writing to allow Sepzone Linh Trung Vietnam Co., Ltd (Sepzone Linh Trung) to supply petroleum for Linh Trung EPZ-based enterprises through Petrolimex Saigon.

According to the HCM City People’s Committee, the HCM City Industrial Zones Enterprise Association, the Vietnam National Petroleum Corporation (Petrolimex) and the Sepzone Linh Trung, this regulation is the best specialised mechanism for simplifying procedures and facilitating operations of enterprises inside EPZs.


In the past 13 years, based on its special mechanism, Sepzone Linh Trung has supplied petroleum in the export processing zone.


However, petroleum supply for tenants in Linh Trung EPZ by Sepzone Linh Trung confronted problems since the Post-Clearance Inspection Department affiliated to the General Department of Customs inspected temporary petroleum import for re-export at Petrolimex and concluded that Sepzone Linh Trung was not legally allowed to supply petroleum to enterprises inside the EPZ.


The Ministry of Finance said Sepzone Linh Trung’s petroleum supply, catered by Petrolimex Saigon, to businesses in the EPZ lacks legal basis because of the following reasons:


First, Sepzone Linh Trung fails to meet conditions stipulated in the Decree 84/2009/ND-CP dated October 15, 2009 of the Government on oil and gas business to distribute petroleum. To perform this function, Sepzone Linh Trung needs the petroleum business permit, written on the Business Certificate, from the Ministry of Planning and Investment. Then, the company must meet other conditions for petroleum business like retailing outlets, professional staff training and fire safety.


Second, as stipulated in the Circular 139/2013/TT-BTC of the Ministry of Finance, traders with petroleum export and import business certificates are allowed to temporarily import [petroleum products] to meet export processing enterprises inside or outside the EPZ to serve production. As Sepzone Linh Trung is not an export processing enterprise, it is not allowed to purchase petroleum products temporarily imported for re-export from petroleum importers.


The Ministry of Industry and Trade said that the merchandise exchange relationship between domestic enterprises with enterprises belonging to the export processing zone and export processing enterprises is import – export relations. Gasoline imported to sell for enterprises belonging to the export processing zone and export processing enterprises is managed in the form of temporary import for re-export. Therefore, if Sepzone Linh Trung is an enterprise belonging to the export processing zone, petroleum products sold to it are managed in the form of temporary import for re-export.


Although petroleum business activities of Linh Trung Sepzone are not written on its investment certificate, it was permitted by the Ministry of Planning and Investment and the Ministry of Industry and Trade to perform this special mechanism for years because of the demand of it and of enterprises inside the export processing zones.


To determine the supplier of petroleum products for tenants in Linh Trung Export Processing Zone in Ho Chi Minh City, the Ministry of Industry and Trade proposed the Prime Minister to assign the Ministry of Industry and Trade and the Ministry of Planning and Investment to issue a document certifying Sepzone Linh Trung to purchase petroleum products from authorised petroleum exporters and importers to supply tenants in Linh Trung Export Processing Zone and assign the Ministry of Finance to guide implementation.


Hien Thinh




Đăng ký: VietNam News

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