By tf-lawyer.com On October 22, the Ministry of Commerce announced important details regarding the non-state oil import quota for 2025. We spoke with officials from the Ministry to understand the specifics surrounding the total allowable import volume, application conditions, and procedures.
**What is the total allowable volume for non-state oil imports in 2025?**
The Ministry has set the total allowable volume for non-state oil trade imports at 25.7 million tons for the year 2025.
**What conditions must applicants meet to qualify for this quota?**
Applicants must fulfill several criteria:
1. They must have demonstrated the use of oil import quotas in the last two years (from January 2023 to October 2024), or possess qualifications approved by national industry authorities.
2. They need to have rights to oil transport facilities with a capacity of no less than 50,000 tons, or annual rail transfer capabilities of at least 2 million tons, as well as access to oil storage tanks with a minimum capacity of 200,000 cubic meters.
3. A bank credit line of at least $20 million (or 140 million RMB) is required.
4. Applicants should employ at least two professionals focused on international oil trade.
5. The business must operate legally and comply with safety, environmental, tax, customs, and foreign exchange laws, with no outstanding violations.
**What materials do applying businesses need to submit?**
The application process requires several documents:
1. A cover letter outlining the company’s basic information, qualifications, reasons for application, and details of oil procurement, production, or sales plans, along with resumes of the trade professionals.
2. Basic proof of company existence, including a copy of the valid business license, customs registration certificate, and organizational code certificate.
3. A credit line confirmation from banks must be provided, complete with formal original documents. Subsidiaries of central enterprises can provide a collective credit confirmation from their headquarters.
4. Original agreements for the use of oil terminals and storage facilities, along with proof of handling capacity from local investment authorities.
5. Qualification documents for oil import usage issued by the relevant national industry authority.
Companies that attained non-state oil trade import qualifications in 2024 are exempt from submitting some of these materials, but all applicants must guarantee the authenticity of their submissions.
**How will the import quotas be allocated?**
The Ministry will allocate the first batch of quotas before the end of 2024 to those who meet the criteria. Future adjustments will be based on firms’ actual import activity, operational needs, and any legitimate new production capacities. Companies that have not imported in the past two years will not receive an allocation.
Additionally, as per the regulations, firms unable to utilize their quotas must return them to the Ministry by September 1 of that year via the local commerce department.
**What is the procedure for application and review?**
Local applicants should submit their applications to the provincial commerce authority, while subsidiaries of central enterprises must do so through their corporate headquarters.
The provincial commerce authorities, together with central enterprises, will compile the list of qualifying applicants and their documentation, which must be forwarded to the Ministry by November 15, 2024. Late applications will not be accepted.
The address for submission is: Ministry of Commerce Administration Affairs Service Hall, 2 Dongchang’an St., Beijing. The application envelope must clearly label “Subject: Oil.”
Once the Ministry reviews the applications, allocation results will be communicated to the respective provincial commerce authorities and central enterprises.
**What are the ongoing responsibilities for businesses awarded quotas?**
Companies granted the non-state oil import quotas must adhere to national safety laws and operations. Any violations will be subject to penalties in accordance with relevant import/export regulations.
For further inquiries or clarifications, applicants can contact the Ministry at 010-65197976.
