The conditions for the liquefied petroleum gas (LPG) traders

I want to open a business to buy and sell liquefied petroleum gas (LPG), also known as LPG industrial gas, so which conditions must I meet about a liquefied gas trader? Where should I get a Certificate of Eligibility from a business trader? What are the components of the application, the order and procedure? I hope FDVN Law Firm can consult. Thanks so much!

FDVN's opinions:

Thank you very much for submitting questions to FDVN Law Firm (FDVN). After studying relevant legal regulations, FDVN has some discussions for your consulting requirements as follows:

[1] Conditions of liquefied petroleum gas (LPG) traders

Pursuant to Clause 2, Article 3 of Decree No. 87/2018 / ND-CP on gas business ("Decree No. 87/2018 / ND-CP"): “Liquefied petroleum gas (hereinafter referred to as “LPG”) means a mixture of hydrocarbon gases derived from petroleum containing two major compositions called propane (C₃H₈) or butane (C₄H₁₀) or the mixture of both propane and butane. At the normal temperature and pressure, LPG presents in a vapor form but may turn into liquid at a limited temperature and pressure.”

Pursuant to Article 8 of Decree No. 87/2018/ND-CP amended and supplemented by Decree No. 17/2020/ND-CP, the conditions for gas traders include:

“1. Every gas seller and purchaser must:

a) be a trader in accordance with provisions of laws;

b) own gas tanks or enter into a tank lease agreement or own LPG bottles or enter into an LPG bottle lease agreement;

c) satisfy all requirements for fire preventing and fire extinguishing in accordance with provisions of laws.”

[2]. Components of the application for the Certificate of eligibility for LPG traders:

Pursuant to Article 38 of Decree No. 87/2018/ND-CP amended and supplemented by Decree No. 17/2020/ND-CP, a dossier of application for a Certificate of eligibility for LPG traders includes:

­   An application form for Certificate of Eligibility for LPG seller/purchaser;

­   A copy of certificate of registration of enterprise/cooperatives/business household;

­   A copy of certificate of technical verification of labor safety for tanks;

­   Documents proving the compliance with requirements for fire preventing and extinguishing;

­   LPG traders only having LPG bottles or entering into an LPG lease agreement are required to submit the following additional documents apart from the documents prescribed in Clause 2 of this Article:

+       A copy of the unexpired Certificate of Verification for LPG bottles;

+       A copy of Certificate of Conformity for LPG bottles.

[3] The order and procedure for issuing Certificate of Eligibility

The trader shall send an application for Certificate of Eligibility directly to competent regulatory agencies or by post or via the website. Competent regulatory agencies may send a written request for additional documents to the trader if finding the application of such a trader is unsatisfactory.

Competent regulatory agencies must process and appraise the application then issue a Certificate of Eligibility to the trader within 15 working days from the day on which the satisfactory application is received. A written response with a clear explanation is required if the application is rejected.

The trader submitting an application for Certificate of Eligibility must pay a fee for appraisal of conditions for trading goods or services subject to business restrictions; goods or services subject to business conditions in commerce in accordance with provisions of the law on fees and charges in force.

The Certificate of Eligibility will expire after 10 years from the issuance date.

Under the provisions of Clause 2, Article 44 of Decree No. 87/2018/ND-CP, The Department of Industry and Trade shall have the authority to issue the Certificate of Eligibility.

[4]. National technical regulation on liquefied petroleum gas (LPG)

4.1. Technical regulations

In addition to the above provisions, you must meet the regulations in accordance with the standard QCVN 8: 2019/BKHCN enclosed with Circular No. 14/2019 / TT-BKHCN promulgating "national technical regulations on Liquefied petroleum gas” as follows:

Liquefied petroleum gas (LPG) means a mixture of hydrocarbon gases derived from petroleum containing two major compositions called propane (C₃H₈) or butane (C₄H₁₀) or the mixture of both propane and butane. At the normal temperature and pressure, LPG presents in a vapor form but may turn into liquid at a limited temperature and pressure.

Commercial propane: A hydrocarbon product whose main component is propane, propene and the remainder alkanes and alkenes from C2 to C4 (including isomers).

Commercial Butane: A hydrocarbon product whose main components are butane, butene and the rest are alkanes and alkenes from C3 to C5 (including isomers).

Commercial butane and propane mixture: A mixture of mainly commercial butane and commercial propane.

4.1.1. LPG is used as civil gas and industrial gas

Basic technical specifications and test methods of LPG used as civil gas and industrial gas must comply with the provisions in Table 1.

Table 1. Basic technical specifications and test methods of LPG used as civil gas and industrial gas

4.2. Test method

4.2.1. Take Sample

Samples for determining the criteria specified in this Technical Regulation are taken according to TCVN 8355: 2010 (ASTM D 1265-05) Liquefied petroleum gas (LPG) - Sampling - Manual method.

4.2.2. Test method

LPG specifications specified in Section 2 of this Technical Regulation are determined by the following methods:

- TCVN 8362: 2010 (ASTM D 2598-07) Liquefied petroleum gas (LPG) - Method of calculating physical parameters from component analysis.

- TCVN 8356: 2010 (ASTM D 1267-02) Liquefied petroleum gas (LPG) - Determination of vapor pressure (LPG method).

- TCVN 3165: 2008 (ASTM D 2158-05) Liquefied petroleum gas - Sediment determination method.

- TCVN 8359: 2010 (ASTM D 1838-07) Liquefied petroleum gas (LPG) - Method of determination of corrosion of copper plate.

- TCVN 10143: 2013 (ASTM D 6228-10) Natural gases and gaseous fuels - Determination of sulfur compounds by gas chromatography and flame photochemical detector.

- ASTM D 6667-14 Standard test method for determination of total volatile sulfur in gaseous hydrocarbons and liquefied petroleum gases by ultraviolet fluorescence (Determination of total sulfur by ultraviolet fluorescence).

- TCVN 8360: 2010 (ASTM D 2163-07) Liquefied petroleum gas (LPG) and propane/propene mixture - Determination of hydrocarbons by gas chromatography.

- EN 15469: 2007 Petroleum products - Test method for free water in liquefied petroleum gas by visual inspection (Petroleum products - Method of determining the free water in liquefied petroleum gas by visual inspection).

- TCVN 6548: 2019 Liquefied petroleum gas (LPG) - Technical requirements and testing methods.

- TCVN 6702: 2013 (ASTM D 3244-07a) Process test results to determine compliance with technical requirements.

Above is the advisory opinion of FDVN regarding your consultation request on the basis of researching legal provisions. Hopefully, the advice of FDVN will be useful to you.

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