Licenses for Import, Transport, and Storage In Petroleum

Under PESO registration, there is a need for a PESO license for products that are generally corrosive. Any organization or manufacturer whose involvement is atypical in several categories needs to obtain PESO certification under the specific forms. Different forms pertinent to specialized activities streamline the process of the business's’ particular rules, risks, and regulations associated with each activity under each department of business operations.

In this article, we shall explore the importance of the license, the documents required, and the procedures for obtaining licenses for the storage, transport, and import of petroleum to encourage controlled usage of corrosive materials during business operations.

Table Of Content

Why a License for Import, Transport, and Storage?

Following are the reasons to acquire a Petroleum license for import, transport and storage that compels the representative of the business operations:

Prevent misuse of limited resources:

During the manufacturing of petrochemical products, there is a definite chance of excessive or unwanted wastage of high volumes of explosive chemicals. To mitigate such negative impacts, PESO inspects the records of such products to curb illegal or critical waste in petroleum.

Quality maintenance:

PESO sets standards throughout the production of petrochemical products to prevent contamination and degradation of products.

Public Safety:

Highly flammable liquids like class A petroleum goods are prone to risking others if not handled properly. To level up the safety measures in petroleum products, PESO has grouped the license for the storage, import and transport of petroleum products.

Different Types Of Petroleum Classes

Following are the types of categories covered under the petroleum class:

Class A:

Class A petroleum class covers licenses for import, transport, and storage if the quantity in possession exceeds 30 liters. If the quantity exceeds 30 liters, then the approval of the license is mandatory for the businesses. Acetone, ethanol, methanol, benzene, pentene, and SBP solvent are all covered under Class A.

Class B:

The capacity of class B petroleum products that have flashpoints of 20°C–65°C duly exempted the need for petroleum license, storage, and transportation requirements. Under Class B, kerosene, diesel, MTO, aromax, etc. are covered under the PESO license for petroleum.

Class C:

The capacity of class C petroleum products has a flashpoint of more than 65 °C if the total quantity in possession doesn’t exceed 45,000 liters. However, if no license is required and the quantity in possession exceeds 5,000 liters, a prior report of storage is to be given to the authority.

Class C petroleum products include Furnace Oil, Light Diesel Oil (LDO), Furnace oil, and low-sulfur heavy stocks.

If it exceeds 45,000 liters, then a report must be given to the PESO authority.

Documents Required for obtaining licenses for Import, Transport, and Storage in Petroleum

The following are the documents required for obtaining a license for import, transport, and storage of petroleum:

Company documents:

Certificate of Incorporation (for company)
Partnership deed
MoA and AoA (for companies)
Valid trade license
ID Proof such as Aadhar card or the PAN card of the proprietor, partner, or director

b) Storage facility details:

Approved plans for the storage facility layout include:

Location for storage tanks
Capacity for each tank
Materials for construction
Firefighting equipment and safety measures

Land ownership documents
NOC from the local authority

c) Other Documents

Environmental impact assessment report
Risk assessment report
Application fee payment receipt

Procedures For Obtaining a License For Petroleum

Following are the procedures undergone while obtaining a petroleum license for import, transport, and storage:

Fill in the login credentials:

To obtain a petroleum license for import, transport, and storage, an applicant needs to register online and create a login ID and password in the NSWS portal to obtain a license.

Documentation:

Gather all the documents required as per the specific form required under forms XV and XVI. These include:

Company registration documents
Details of the petroleum products you intend to store and import
Details of import storage facility
Risk assessment report
No Objection Certificate (NOC) from local authorities

Fee payment:

After submitting all the documents along with the application form, an applicant is required to pay the fees specified in the Petroleum Act of 1934.

Prior approval:

After proper documentation, the PESO authority will provide prior approval to proceed with the construction of the storage facility as per the approved plan layout.

Approve license:

After examining all the documents without any errors or mistakes, the PESO authority shall grant approval for the license.

Conclusions

Obtaining PESO certification is essential for manufacturers that produce hazardous products and are prone to risking the lives of people, the environment, and property. With the help of a legal framework enacted by the government of India, PESO licenses compliance and safety, ultimately allowing representatives of the petroleum business to operate legally across local and global markets. This involves certain online registration, document preparation, application submission, fees, and facility inspections in different classes under petroleum

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Frequently Asked Questions

Can I import petroleum products without a PESO license?

No, you can’t import petroleum products without a PESO license, regardless of the quantity they store, import, and transport.

What are the prerequisites for obtaining a PESO license for petroleum storage?

The pre-requisites for obtaining a PESO license for petroleum storage are given below:

Businesses must be legally registered in India.
Secured land for the storage of a facility that needs PESO registration.
Qualified personnel with expertise in petroleum safety

What are the different types of PESO licenses for petroleum storage?

There are several types of PESO licensees in the US for granting license approval for petroleum storage, which include:

Form XV: For storage and import of petroleum products
Other forms: include different activities like transportation and other product categories

I only plan to store a small amount of petroleum products for personal use. Do I need a license?

PESO registration is used for commercial purposes only. However, petroleum that is used and exceeds the amount of more than 2,500 liters is mandated to obtain a PESO license.