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Draft regulation on the detailed list of liquid fuels! – Is this the beginning of a wave of requests for license changes?

Kacper Skalski Legal Counsel, Partner
06 grudnia 2024
Draft regulation on the detailed list of liquid fuels! – Is this the beginning of a wave of requests for license changes?

On December 5, 2024, a draft amendment to the Regulation on the detailed list of liquid fuels1 was published on the website of the Government Legislation Center, regarding the list of fuels for which there will be an obligation to be entered in the register of importers as well as an obligation to hold a license for (i) production, (ii) storage, (iii) transshipment, (iv) transmission, (v) distribution and (vi) trading, including trading with foreign countries. The proposed amendment relates to updating the codes indicated in § 1(8) and § 2(9) of the regulation, which will read as follows:

– diesel fuels, including light heating oils: 2710 19 42, 2710 19 44, 2710 19 46, 2710 19 47, 2710 19 48, 2710 20 11, 2710 20 16, 2710 2019

Special attention should be paid to § 2 of the draft regulation, according to which the license requirement for CN 2710 19 43 diesel fuel will continue: “Until July 31, 2026, the production, storage or handling, transmission or distribution, trading, including trading with foreign countries, of diesel fuel under CN code 2710 19 43 shall be required to obtain a license.”

Reading the explanatory memorandum to the draft, we can see that the change is prompted by the need to align Polish legislation with EU Regulation 2024/2522 of September 23, 2024, which amends Annex I by introducing two new CN codes (2710 19 42, 2710 19 44) and deleting one (2710 19 43).

From an editorial point of view, the change is not significant, since CN code 2710 19 43 means: Diesel oil with a sulfur content not exceeding 0.001% by weight.

And the new codes that will replace it mean:

  1. CN 2710 19 42 for diesel fuel with a biogenic carbon content of at least 80% by weight;
  2. CN 2710 19 44 for other diesel fuel (with a sulfur content not exceeding 0.001% by weight).

If the regulation is adopted in its current form, the changes described will take effect on January 1, 2025, as will EU Regulation 2024/2522.

What does this mean for liquid fuel licensees? – A small but important change!

If an entity holds a concession to trade in liquid fuels that covers diesel fuel with CN code 2710 19 43, it is worth checking the terms of such a concession for the obligation to update it. The most common provision that appears reads as follows:

“The concessionaire is obliged, within no more than 14 days from the date of occurrence of other – than indicated in paragraph 2.3.1. – significant changes relating to the performed activity covered by this concession, including, in particular, changes concerning the limitation of the scope of this activity, (…), to notify the President of the ERO of the changes in writing, at the same time submitting – if they cause the need to change the provisions of this concession – an application for its amendment.”

In turn, as follows from Article 32(2a) of the Energy Law:In the event of a change in the list of liquid fuels specified in the regulations issued pursuant to paragraph 6, the effect of which is the obligation to obtain a license or a change in the scope of the license held, as referred to in paragraph 1, items 1-4, by entities engaged in the business of manufacturing, storage, transshipment, transmission or distribution of liquid fuels, or trading in such fuels, including trading with foreign countries, such entities shall submit an application for granting or changing the license within 30 days from the effective date of the regulations introducing such change. Failure to submit an application within this period by the obliged entity shall mean that the entity is conducting activities without the required license to the extent resulting from the change in the list specified in the regulations issued pursuant to paragraph 6.”

The application for a license amendment must be submitted by the deadline!

If the regulation enters into force in its current form, in accordance with the aforementioned Article 32(2a) of the Energy Law, all entities holding a license for trading diesel fuel with CN code 2710 19 43 should apply for a license amendment no later than January 30, 2025!

We would like to remind you that operating without the required license may result in:

  • revocation of the license;
  • a fine of up to PLN 5,000,000, or
  • imprisonment from 6 months to 5 years.

On the other hand, the mere import of liquid fuels without entry in the register of importers is punishable by a fine of up to PLN 2,500,000.

Our law firm will be happy to assist in matters related to the determination of regulatory obligations arising from the described regulatory change. We invite you to contact us by email at kancelaria@rsplegal.pl or via the form available at the following link: Contact Form.

 

1Decree of the Minister of State Assets on the detailed list of liquid fuels whose production, storage or handling, transmission or distribution, trading, including trading with foreign countries, requires a license, and whose import requires entry in the register of importing entities 

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Kacper Skalski Legal Counsel, Partner
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