Petroleum fuel

Member: 

Basic information

1

Outline of the system

The list of products covered under Lesotho's Import Licensing/Import Permit system has been specified in the "Import Restrictions (Amendment) Regulations, 2009". This regulation also stipulates the relevant authorities responsible for managing the licensing process of each product. The import licensing system generally requires an importer to first approach the relevant issuing authority to be guided on the specific application material required for importation of the specified product. Once the necessary documentation has been procured, the importer presents these along with a completed application form to the issuing authority for consideration. The documentation is then reviewed against the administrative requirements and within the timeline specified by the issuing authority for import of the specified product. An import permit is issued once the approval process is complete. Applied terminology varies by institution with some issuing "import permits" while other issue "import licences".

The importer lodges an application with the office of the Director at the Department of Energy, Ministry of Natural Resources. The application is then reviewed and a decision is granted within 1 day. The licence for importation and supply of fuel in Lesotho is issued immediately upon approval of an application.

2

Product coverage

Permits are required for petroleum fuel.

Nature of licensing

Automatic

3

If Automatic, administrative purpose

Non-Automatic

4

If Non-Automatic, description of the notified Non-Automatic Licensing regime

5

Products under restriction as to the quantity or value of imports

The licensing system is not intended to restrict the quantity or value of imports of petroleum products but rather to monitor the inflow and monitor that only registered oil companies import petroleum products into Lesotho.

6

Questions for products under restriction as to the quantity or value of imports

Not applicable.

7

The system applies to products originating from which country?

The system applies to goods originating in and coming from all countries with exception of the Southern African Customs Union (SACU) whereby importers are required to adhere to additional rules specified within the region.

8

Expected duration of licensing procedure

Eligibility of applicants

12

Is there a system of registration of persons or firms permitted to engage in importation?

13

What persons or firms are eligible to apply for a licence?

Only Registered Oil Companies are permitted to import petroleum fuel into Lesotho.

14

Is there a registration fee?

15

Is there a published list of authorized importers?

Contact point for information on eligibility

16

Ministry/Authority

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Address

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Telephone

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Fax

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E-mail address

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Website

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Contact officer

Submission of an application

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Administrative body(ies) for submission of an application

Department of Energy

Documentation requirements

24

What information is required in applications?

All persons wishing to import petroleum fuel into Lesotho are required to submit the following documentation:
- The company's details including; the name, address and nationality of the company; name(s) and address(es) of all directors or principals where request is not from a company; proof company is locally registered; and the articles and memorandum of association of company.
- A detailed proposal of the business which includes costing and elements of sustainability.
- Information on applicant's technical experience and competence in the area of operation. This may include issues such as knowledge/experience with oil industry operations in the country and bio fuels in general; CV of proposed project manager and the consulting or in-house specialists.
- Financial status of the company. This will cover aspects such as applicant's balance sheet, profit and loss statement for the previous two years, the proposed financial plan, banking and other financial references.
- Financial analysis of the business.
- Proposed marketing arrangements – agreements with locally registered petroleum dealers.

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What documents is the importer required to supply with the application?

All persons wishing to import petroleum fuel into Lesotho are required to submit the following documentation:
- The company's details including; the name, address and nationality of the company; name(s) and address(es) of all directors or principals where request is not from a company; proof company is locally registered; and the articles and memorandum of association of company.
- A detailed proposal of the business which includes costing and elements of sustainability.
- Information on applicant's technical experience and competence in the area of operation. This may include issues such as knowledge/experience with oil industry operations in the country and bio fuels in general; CV of proposed project manager and the consulting or in-house specialists.
- Financial status of the company. This will cover aspects such as applicant's balance sheet, profit and loss statement for the previous two years, the proposed financial plan, banking and other financial references.
- Financial analysis of the business.
- Proposed marketing arrangements – agreements with locally registered petroleum dealers.

Window of submission of an application

26

How far in advance of importation must application for a licence be made?

No time limit is given but licence application is generally made prior to the intended date of importation

27

Are there any limitations as to the period of the year during which application for licence can be made? If so, explain

There are no limitations as to the period of the year during which application for a licence may be made.

Issuing the license

28

Can a licence be granted immediately on request?

Licence may be granted within 1 day of request provided all relevant documentation is available

29

Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence

30

Which administrative body is responsible for approving application of licences?

The Department of Energy is the single administrative organ responsible for considering application for licences on Petroleum Fuel.

31

Must the applications be passed on to other organs for visa, note or approval?

In exceptional cases, application may require further review by the office of the Principal Secretary and/or Minister of Natural Resources.

32

Are there any other conditions attached to the issue of a licence?

All registered oil companies permitted to import petroleum fuel into Lesotho are required to adhere to the following guidelines:
- Import petroleum products only through the designated borders of Lesotho;
- Import fuel which complies with acceptable international standards;
- Be permitted to import petroleum products in quantities greater that 200 litres;
- Not engage in direct shipment but should dispense or off-load fuel straight into the deport to distribution to the dealers;
- Comply will all relevant import, wholesaling of fuel, approvals and permits as required under the Fuel and Service Control Act or any other applicable law;
- Pay applicable duties, levies and taxes to the relevant authorities and bodies;
- Illustrate commitment in investing in Lesotho;
- The fuel compartments of the tankers shall be filled to the maximum capacity;
- Submit details of the car which imports fuel into Lesotho including the registration number;
- Submit on the 15th of every month, total quantities or volumes of petroleum products imported into Lesotho in the previous month.

Fees and other administrative charges

33

Is there any licensing fee or administrative charge?

There are no fees or administrative charges attached to the issuance of a licence to supply petroleum fuel in Lesotho.

34

What is the amount of the fee or charge?

35

Is there any deposit or advance payment required associated with the issue of licences?

There is no deposit or advance payment requirement.

36

Amount or rate?

37

Is it refundable?

38

What is the period of retention?

39

What is the purpose of this requirement?

Refusal of an application

40

Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?

Licences are not granted on the basis that the applicant did not meet requirements (particularly for companies with no establishment or portfolio transactions within Lesotho) or presented falsified information.

41

Are the reasons for any refusal given to applicants?

Reasons for refusal are given to the applicant in writing.

42

Have applicants a right of appeal in the event of refusal to issue a licence?

The applicant can appeal the decision to the Minister of Natural Resources.

43

If so, to what bodies and under what procedures?

There is no appeal procedure specified in the legislation.

Importation

44

Are there any limitations as to the period of year during which importation may be made?

45

What documents are required upon actual importation?

Documents required upon actual importation include: declaration of invoices and proof of licence to supply petroleum fuel in Lesotho.

46

Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

There are no other administrative procedures.

Conditions of licensing

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What is the period of validity of a licence? Can the validity be extended? How?

Licence to import petroleum fuel is granted on an annual basis and the validity of a licence be not be extended.

48

Is there any penalty for the non-utilization of a licence or a portion of a licence?

There is no penalty for the non-utilisation of a licence or a portion of a licence.

49

Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

Licences cannot be transferred between importers.

Foreign Exchange

50

Is foreign exchange automatically provided by the banking authorities for goods to be imported?

Foreign exchange is automatically provided by the banking authorities for goods to be imported if other administrative procedures required are fulfilled.

51

Is a licence required as a condition to obtaining foreign exchange?

Licences are not required as a condition to obtaining foreign exchange.

52

Is foreign exchange always available to cover licences issued?

53

What formalities must be fulfilled for obtaining the foreign exchange?

Formalities to be fulfilled to obtain the foreign exchange include the presentation of identification document, proof of sufficient funds in bank account, and a Pro-Forma Invoice.