Circular No. 43/2015/TT-BCT on the rate of loss of petroleum products in the business of petroleum products

CIRCULAR

Regulations on the Rate of Loss of Petrol and Oil in Business Activities

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

- Sending via fax or email to the address [email protected] (scanned copy)."

The Minister of Industry and Trade issues this Circular to regulate the rate of loss of petrol and oil in business activities.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates the rate of loss of petrol and oil in business activities including: export, import, temporary import for re-export, transshipment, processing for export; blending; distribution of petrol and oil in the domestic market; receipt, storage, and transportation of petrol and oil.

2. This Circular applies to traders conducting petrol and oil business in the Vietnamese market according to the provisions of the Law on Trade and other organizations and individuals related to petrol and oil business activities.

Article 2. Interpretation of Terms

1. Loss of petrol and oil refers to the shortage in quantity due to natural evaporation and adhesion; the impact of technological and technical factors during the process of delivery, import, export, inventory, tank cleaning, transportation, blending, transfer, and retail of petrol and oil.

2. Short-term inventory of petrol and oil means inventory in tanks and storage facilities where there is at least one transaction of import or export of petrol and oil within a month.

3. Long-term inventory of petrol and oil means inventory in tanks and storage facilities without any activity of import or export of petrol and oil within a month.

Article 3. Principles for Managing the Rate of Loss of Petrol and Oil

1. The rate of loss of petrol and oil specified in this Circular is the maximum allowable rate of loss.

2. Loss of petrol and oil shall be managed, organized, accounted for, and settled separately for each product such as RON95 petrol, RON92 petrol, E5 biofuel, E10 biofuel, E100 ethanol fuel, KO kerosene, JET A-1 aviation fuel, DO 0.05% sulfur diesel, DO 0.25% sulfur diesel, FO furnace oil.

3. The quantity and value of losses of different products shall not offset each other within a settlement period. However, for petrol and oil transferred through the same pipeline system, the quantity of mixed products may be offset.

4. In case of extraordinary losses exceeding the prescribed rate of loss in this Circular, the trader engaged in petrol and oil business shall be responsible for identifying the cause of the loss and taking timely measures to prevent and minimize potential losses to the lowest extent possible.

Article 4. Principles for Determining the Loss of Petrol and Oil in Business Activities

1. The loss of petrol and oil in business activities as stipulated in Clause 1, Article 1 of this Circular is the total loss of petrol and oil from all stages of the business activity.

2. The volume of petrol and oil for determining the rate of loss of petrol and oil is specified as follows:

a) For mineral petrol, biofuel, E100 ethanol fuel, kerosene, diesel, it is converted to standard conditions (temperature: 15°C; pressure: 101,325 kPa and measured according to the national measurement system); for retail sales at petrol stations, the actual volume in liters is used.

b) For furnace oil, the unit of measurement is mass (kg).

3. The rate of loss of petrol and oil for each stage and at retail petrol stations is determined according to the provisions of Articles 5, 6, 7, 8, 9, 10, 11, and 12 of this Circular.

4. The rate of loss of petrol and oil shall be reviewed, evaluated, and adjusted by competent state management agencies in accordance with the actual status of equipment technology, management requirements, and business mechanisms for petrol and oil in each period.

Chapter II
SPECIFIC PROVISIONS

Article 5. Loss ratio of petroleum products during the import stage

1. Loss of petroleum products during the import stage is the difference between the quantity of petroleum products at the storage equipment on the transport vehicle or tank before importation and the actual quantity received in the tank.

2. The loss ratio of petroleum products during the import stage is calculated as a percentage (%) of the quantity lost compared to the quantity of petroleum products at the storage equipment on the transport vehicle or tank before importation. The loss ratio of petroleum products during the import stage is specified in Appendix 1 of this Circular.

3. If the length of the pipeline from the transport vehicle or tank to the receiving tank exceeds two (2) kilometers, the loss of petroleum products during the import stage shall be increased by the transportation loss through the pipeline as stipulated in Clause 2, Article 10 of this Circular.

Article 6. Loss ratio of petroleum products during the export stage

1. Loss of petroleum products during the export stage is the difference between the quantity of petroleum products exported from the export tank and the quantity received at the storage equipment on the transport vehicle.

2. The loss ratio of petroleum products during the export stage for waterway, road, and rail transport is calculated as a percentage (%) of the quantity lost compared to the quantity of petroleum products exported through the meter. The loss ratio of petroleum products during the export stage is specified in Appendix 2 of this Circular.

3. If the length of the pipeline from the export tank to the meter, and from the meter to the transport vehicle exceeds two (2) kilometers, the loss of petroleum products during the export stage shall be increased by the transportation loss through the pipeline as stipulated in Clause 2, Article 10 of this Circular.

Article 7. Loss ratio of petroleum products during the storage stage

1. Short-term storage loss ratio of petroleum products

a) The short-term storage loss ratio applies to tanks that have at least one import or export operation of petroleum products in a month. The quantity of petroleum products for determining the loss ratio is the average of the quantities stored on the first day, the tenth day, the twentieth day, and the last day of the month.

b) The short-term storage loss ratio of petroleum products is calculated as a percentage (%) of the quantity lost compared to the quantity stored. The short-term storage loss ratio of petroleum products is specified in Appendix 3 of this Circular.

2. Long-term storage loss ratio of petroleum products

a) The long-term storage loss ratio applies to tanks that do not have any import or export operations of petroleum products in a month. The quantity of petroleum products for determining the loss ratio is the quantity stored on the first day of the month.

b) The long-term storage loss ratio of petroleum products is calculated as a percentage (%) of the quantity lost compared to the quantity stored on the first day of the month. The long-term storage loss ratio of petroleum products is specified in Appendix 3 of this Circular.

Article 8. Loss ratio of petroleum products during the cleaning stage

1. Loss of petroleum products during the cleaning stage of storage tanks and transport vehicles includes the quantity of petroleum products lost due to evaporation and adhesion to the walls of the tanks and transport vehicles, excluding the quantity mixed with sediment at the bottom of the storage equipment and transport vehicles that cannot be reused after cleaning.

2. The quantity of petroleum products mixed with sediment at the bottom of the storage equipment and transport vehicles that cannot be reused after cleaning shall be determined by the petroleum product trading business according to the actual situation.

3. The loss ratio of petroleum products during the cleaning stage is calculated as a percentage (%) of the quantity lost compared to the capacity of the storage tanks and transport vehicles requiring cleaning. The loss ratio of petroleum products during the cleaning stage is specified in Appendix 4 of this Circular.

Article 9. Rate of Loss of Petroleum Products in Blending Process

1. The loss of petroleum products in the blending process is the difference between the total quantity of blending components input and the quantity of finished petroleum products output.

2. The rate of loss of petroleum products in the blending process is calculated as a percentage (%) of the quantity of lost petroleum products compared to the total quantity of blending components input. The rate of loss of petroleum products in the blending process is specified in Appendix 5 of this Circular.

Article 10. Rate of Loss of Petroleum Products in Transportation

1. Rate of Loss of Petroleum Products in Waterway, Road, and Rail Transportation

a) The loss of petroleum products transported by waterway, road, and rail is the difference between the quantity of petroleum products determined at the transport vehicle at the point of fuel supply and the quantity of petroleum products determined at the transport vehicle at the point of fuel receipt;

b) The rate of loss of petroleum products transported by waterway, road, and rail is calculated as a percentage (%) of the quantity of lost petroleum products compared to the quantity of petroleum products determined at the transport vehicle at the point of fuel supply but not exceeding the maximum allowable loss rate prescribed in point c Clause 1 of this Article;

c) The rate of loss of petroleum products transported by waterway, road, and rail is specified in Clause 1, 2 of Appendix 6 of this Circular.

2. Rate of Loss of Petroleum Products in Pipeline Transportation

a) The loss of petroleum products transported by pipeline is determined for the pumping transfer process of petroleum products from the supply tank to the receiving tank on a steel pipeline with an internal diameter of 145 mm or more. The loss of petroleum products transported by pipeline is the total quantity of petroleum products stored in the pipeline and the quantity of petroleum products lost during transportation;

b) The rate of loss of petroleum products transported by pipeline is calculated as a percentage (%) of the quantity of lost petroleum products compared to the quantity of petroleum products from the supply tank;

c) The rate of loss of petroleum products transported by pipeline when there is at least one transportation activity within five days is specified in Clause 3 of Appendix 6 of this Circular;

d) The rate of loss of petroleum products transported by pipeline when there is no transportation activity for more than five days shall be additionally added with the storage loss in the pipeline. The rate of storage loss in the pipeline is calculated as a percentage (%) of the quantity of petroleum products lost in storage compared to the quantity of petroleum products stored in the pipeline. The rate of storage loss in the pipeline is specified in Clause 4 of Appendix 6 of this Circular.

Article 11. Rate of Loss of Petroleum Products in Transshipment Process

1. The loss of petroleum products in the transshipment process is the difference between the quantity of petroleum products transshipped from the mother ship and the quantity of petroleum products received on the daughter ship.

2. The rate of loss of petroleum products in the transshipment process is calculated as a percentage (%) of the quantity of lost petroleum products compared to the quantity of petroleum products transshipped from the mother ship. The rate of loss of petroleum products in the transshipment process is specified in Appendix 7 of this Circular.

Article 12. Rate of Loss of Petroleum Products at Retail Gasoline Outlets

1. The loss of petroleum products at retail gasoline outlets is the total quantity of losses of petroleum products in the processes of import, export, storage, and cleaning.

2. The rates of loss of petroleum products in the processes of import, storage, and cleaning are specified in Articles 5, 7, and 8 of this Circular. The rate of loss of petroleum products in the export process is specified in Appendix 8 of this Circular.

Chapter III
IMPLEMENTATION

Article 13. Responsibilities of Units

1. Department of Science and Technology

Head the guidance on the application of the petroleum product loss rate regulations in the petroleum business operations, study proposals for amending and building petroleum product loss rates suitable to technical facilities, management levels, and requirements in each period.

2. Department of Domestic Market

Head and coordinate with relevant units to implement this Circular in the management of domestic petroleum business activities.

3. Import-Export Department

Head and coordinate with relevant units to implement this Circular in the management of petroleum import, export, temporary import for re-export, transshipment, and export processing activities.

Article 14. Responsibilities of traders dealing with gasoline and diesel oil

1. Organize the management of losses of gasoline and diesel oil in business activities; establish and promulgate specific regulations on the rate of loss of gasoline and diesel oil but not exceeding the rate of loss prescribed in this Circular; establish and promulgate regulations on losses of gasoline and diesel oil in business activities and bear responsibility for losses of gasoline and diesel oil in their own business activities.

2. Statistically report annual losses of gasoline and diesel oil to the Ministry of Industry and Trade (through the Domestic Market Department) to serve state management of losses of gasoline and diesel oil.

3. Comply with state management requirements related to the rate of loss of gasoline and diesel oil prescribed in this Circular.

4. Organize the accounting of business cost norms according to the rate of loss of gasoline and diesel oil prescribed in this Circular; organize surveys, research, and evaluate losses of gasoline and diesel oil, and propose to the Ministry of Industry and Trade to amend and supplement contents that are inappropriate if necessary.

Article 15. Effective Date

This Circular takes effect from May 1, 2016.

This Circular replaces Decision No. 758/VT-QĐ dated April 15, 1986 of the Minister of Material Resources (now the Ministry of Industry and Trade) regarding the issuance of temporary norms on losses of gasoline and diesel oil in export, import, transportation, and storage stages.

During the implementation of this Circular, in case of difficulties or obstacles, organizations and individuals shall promptly reflect them to the Ministry of Industry and Trade for amendment and supplementation.

 

 

ANNEX 1

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN IMPORT STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

 

ANNEX 2

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN EXPORT STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

1. For export to waterway vehicles:

2. For export to road and railway vehicles:

Note: In case the meter is damaged, the rate of loss of gasoline and diesel oil in the export stage is determined by multiplying the corresponding "Tank - Meter" column rate by a factor of 1.1.

 

ANNEX 3

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN STORAGE STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

1. For short-term storage:

2. For long-term storage:

 

ANNEX 4

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN CLEANING STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

 

ANNEX 5

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN BLENDING STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

 

ANNEX 6

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN TRANSPORTATION STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

1. For waterway transportation:

Note: An example of the loss rate for a transportation route longer than 600 km is calculated by adding the loss rates of the first 300 km from the "Up to 300 km" column, the next 300 km from the "From 300 to 600 km" column, and the final section from the "Over 600 km" column.

2. For road and railway transportation:

3. For pipeline transportation:

4. For loss in pipeline storage:

 

ANNEX 7

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN TRANSFER STAGE
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)

 

ANNEX 8

RATE OF LOSS OF GASOLINE AND DIESEL OIL IN EXPORT STAGE

AT RETAIL GASOLINE AND DIESEL OIL OUTLETS
(Annexed to Circular No. 43/2015/TT-BCT dated December 8, 2015 of the Minister of Industry and Trade prescribing the rate of loss of gasoline and diesel oil in business activities)