| BEIJING, April 10
BEIJING, April 10 China's state oil refiners
have been granted a combined 1.315 million tonnes of quotas to
export refined fuel under so-called general trade terms, three
sources familiar with the matter said on Monday.
These permits, mostly for diesel and gasoline, were in
addition to the 3.335 million tonnes of quotas allotted to the
refiners under a separate, so-called processing trade category,
after Beijing agreed to grant tax incentives to exports under
general trade terms.
The general-trade quotas were issued in early March with
PetroChina receiving 1 million tonnes and Sinopec Corp
300,000 tonnes, said two of the three sources familiar with the
CNOOC, which holds less refining capacity, won a quota for
15,000 tonnes as an "experiment", said the third source, who has
direct knowledge of CNOOC's trade operations.
These were the second batch of general trade quotas for
2017. In early 2017, PetroChina was the only refiner granted a
quota for 600,000 tonnes, said one of the sources.
At the end of March, China also issued its second batch of
quotas for 2017 under the prevailing processing, or tolling,
rules, lowering the volumes by 73 percent compared to the first
State refiners applied for the general trade quotas after
the government agreed in late 2016 to grant tax incentives on
fuel exports making the terms more attractive since it offers
refiners greater flexibility in the volumes and time frames for
exporting fuel, said the three sources who are familiar with the
Top Asian refiner Sinopec said on Friday it
exported a diesel cargo to Singapore under the general trade
rules for the first time in 13 years.
PetroChina did not win any quotas under the recent round of
processing trade quotas, Reuters has reported.
The sources said PetroChina, which imports less crude than
rival Sinopec, did not apply for the processing trade quotas but
only asked for general trade ones since it see those terms as
State oil firms normally do not comment on operational
Under the processing rules, refiners are exempted from
import taxes on crude oil and export taxes for oil products, but
have a fixed volume and time slots to export, both under the
tight scrutiny of Chinese customs, Beijing-based oil traders
Under the general trade category, refiners get tax refunds
after exports are completed or get a tax waiver on fuel exports,
a policy that Beijing granted in 2016, the three sources said.
(Reporting by Chen Aizhu and Meng Meng in Beijing, Jessica
Jaganathan in Singapore)