The industrial criteria of domestic trade - the Administrant and Technical Criterion for Wholesale Enterprise of Refined Oil Product (SB/T 10446-2007)and the Administrant and Technical Criterion for Storage Enterprise of Refined Oil Product (SB/T 10445-2007), will be put in force as of May 1, 2008. An official from MOFCOM Department of Commercial Reform and Development answered relative questions raised by the reporters.
Q: Would you please brief on the background of formulation of the Criteria?
A: In accordance with its commitment to WTO, China has opened the retail and wholesale market of the domestic refined oil products on December 11, 2004 and December 11, 2006 respectively. China’s refined oil product market has diversified business entities, oil resource channels and brand services. Under such circumstances, it is a significant measure to steadily boost an orderly opening-up and foster a healthy market of the refined oil products, through formulating the managing industrial criteria of refined oil products in conformity with China’s national situation, adapting to the industrial characteristics, and reflecting the principle of fair play in the market.
MOFCOM drafted out and issued the Administrant and Technical Criterion for Retail Enterprise of Refined Oil Product (SB/T10390-2004) in 2005, which plays a laudable role in regulating the open domestic retail market of the refined oil products. The soliciting opinion drafts of the Administrant and Technical Criterion for Wholesale Enterprise of Refined Oil Product and the Administrant and Technical Criterion for Storage Enterprise of Refined Oil Product were completed in early 2005. Through open solicitation of opinions on the Internet, and various studies and researches made by the experts, enterprises, and the departments concerned, the criteria were revised and amended for several times and finally accomplished and issued in the end of 2007, and shall be put in force from May 1, 2008.
Q: Would you please brief on the main contents of the criteria?
A: The two criteria mainly consist of four aspects.
1. The market access conditions are technically specified for the wholesale and storage enterprises of processed oil products on the basis of the Measures for Administration of the Processed Oil Market.
2.The technical requirements are prescribed in a detailed way for the operation and management sectors of the wholesale and storage enterprises of refined oil products. Meanwhile, the criteria also requires that the enterprises concerned strengthen the management on quality, measurement, price and finance, operate in a legal and honest way, and guides the enterprises to take the social responsibility of ensuring supply, health, safety and environmental protection, etc. The Administrant and Technical Criterion for Wholesale Enterprise of Refined Oil Product requires that the refined oil products should be stored more than the annual average sales for 15 days in the previous year. As for the normal storage requirements, the criteria, using for reference the universal practice of the foreign enterprises of refined oil products, are regarded as the necessary measures which play a significant role in strengthening China’s market control capacity, and preventing market fluctuations, as well as the exploration and trial of gradual establishment of commercial storage system in the Chinese enterprises engaged in refined oil product business.
3. The operating enterprises of refined oil products should be guided to take the way of scalization and intensivism. For instance, the Administrant and Technical Criterion for Retail Enterprise of Refined Oil Product requires that a turnover of over 100 thousands tons be reached by the business entities concerned and the Administrant and Technical Criterion for Storage Enterprise of Refined Oil Product requires that the annual average substitution and storage should not be lower than 60% of the total sink capacity.
4. In Accordance with the relevant national special technical criterion, the technical requirements are systematically prescribed on the main operating facilities of the wholesale and storage enterprises and the management of and of refined oil depot construction.
Q: How shall MOFCOM promote the implementation of the criteria?
A: Under the conditions of market economy, the criteria are both an important technical basis and effective way for guiding a healthy development of the industry. Next, MOFCOM will actively organize the local competent commercial departments and refined oil product enterprises to strengthen publicity, implementation and training, promote the said emprises to implement the criteria in accordance with their own actual situation, and make a timely assessment of the results of standard implementation.