K Petro company
Prev Oil Imports Tax Refund

Oil Imports Tax Refund

Information of oil imports tax refund

Entire or a part of the import tax that has been paid is refunded if supplying or using the products determined by the order in the Ministry of Trade, Industry, and Energy for the exportation or process ingredients as items produced in the oil product or oil refining procedures

Target (Article 27, paragraph 1, in the enforcement decreee and Article 21 in the notification)
  • If exporting oil products
  • If supplying oil products for the industrial fuel
  • If accumulating or selling as the oil for tax-free accumulated amount
  • If supplying the types of oil products notified as it is difficult to impose tax by the Minister of Industry, Trade, and Energy after they are produced in Korea for the purpose determined by the Minister of Industry, Trade, and Energy
  • If supplying and producing the oil products notified by the Minister of Industry, Trade, and Energy among oil products instead of ones to be imposed with tax after refining oils
  • If trading the oil products imported by oil exporting/importing agent through the object electronic transactions from Korea Exchange
  • If trading oil products manufactured by oil refiners through the object electronic transactions from Korea Exchange
Major works
Confirmation of quantity of items to be returned
손가락 좌우 표시좌우로 밀어서 보세요.
환급대상 물량확인의 개요, 대상, 제출서류에 관한 내용
Outline Confirm the quantity of oil products used for the industrial oil (quantity as a basis for imposing tax)
Targets
  1. Quantity of oil products to be returned for the industrial materials
    1. Naphtha (including the oil products in replacement of Naphtha) is supplied as oil chemistry or manure manufacturing materials
    2. Kerosene is supplied as the material for manufacturing normal paraffin
    3. supply products including the unconverted oil as a material for manufacturing lubricant
    4. Supply products in each paragraph of the Article 26 of the enforcement decree in the Petroleum and Alternative Fuel Business Act (propylene, sulfur, petroleum cokes (only for domestic products) as the materials for manufacturing manure, carbon black, and titanium dioxide
  2. Quantity of oil products to be returned for the electronic transactions
    1. If trading the oil products produced by oil refiners or oil products imported by oil exporter/importer through the object electronic transactions of oil products in Korea Exchange
Documents to submit
  1. Quantity of oil products to be returned for industrial materials
    1. 2 copies of oil product tax quantity confirmation (report)
    2. Certificate of sales for the purpose from supplier
    3. Statement of in-company sales and amount of oil products to be used
    4. Statement of stock in the beginning and end of month of materials
    5. Importation report certificate (attach bill of landing if needed for confirmation of quantity)
    6. Other documents needed for confirmation (ERP system output, etc.)석유제품환급대상물량확인(신고서) 2부
  2. Quantity of oil products to be returned for electronic transactions
    1. 2 copies of oil product tax quantity confirmation (report)
    2. Electronic commercial transaction statement for oil products confirmed by the president of Korea Exchange
    3. Transaction statement (domestic)
    4. Stock statement in the beginning and end of the month
    5. Importation report certificate (including bill of landing)
    6. Performance statement of obligatory mixture of bio-diesel
    7. Other documents needed for confirmation
Calculation of return rate
손가락 좌우 표시좌우로 밀어서 보세요.
환급률 산정의 개요, 대상, 제출서류에 관한 내용
Outline Calculate the return by confirming the income and outgo table including the quantity of oil chemical products (major or by-products) and lost amount that have been produced as well as the quantity of oil products mobilized for the process as industrial ingredients and classifying major products and by-products into the ones to be returned and not to be returned depending on the purpose of sales
Target
  1. If supplying Naphtha (including the oil products in replacement of Naphtha) and each item (only for domestic products) in the Article 26, in the enforcement decree of the Petroleum and Alternative Fuel Business Act as materials for manufacturing oil chemicals and carbon black (excluding the propylene)
  2. If supplying products including kerosene/unconverted oil as materials for manufacturing normal paraffin/lubricants
Documents to submit
  1. 1 copy of sales performance in each purpose of by-products and income and outgo table
  2. Purchase certificate for the confirmation of purpose in places on demand
  3. Confirmation of performance for sales of by-products in the company
  4. Statement of purchasing and using ingredients
  5. Income and outgo table
  6. Statement of production and sales of products in each ingredient
  7. Statement of calculation of re-mobilized ingredients
  8. Exportation report certificate (in case of exportation)
  9. Other documents needed for confirmation
Practical investigation
손가락 좌우 표시좌우로 밀어서 보세요.
실지조사의 개요에 관한 내용
Outline Confirm the appropriateness on the refund of oil tax, return rate, or refund of wrong tax payment of those who are recognized to be related to collection or refund of tax
Submission of documents and processing period
  1. Quantity of oil products to be returned for industrial materials
    1. Shall submit to the CEO on the 13th and 23rd of every month by five business days and process them on the 13th and 23rd of every month
  2. Quantity of oil products for electronic commercial trade
    1. Shall submit to the CEO on the 23rd of every month by seven days and process on the 23rd of every month
  3. Calculation of refund rate of oil chemical suppliers
    1. Confirm the documents submitted within 2 months after submitting and receiving the documents by the last date of the following month where the quarter ends, notify to the reporter, raw material suppliers, and oil company CEOs, and report to the Minister of Industry, Trade, and Energy (1 time/quarter)
      * Submit the performance of consumed amount in the previous year until July of the relevant year (1 time/year)
  4. Calculate the return rate of the companies that use products such as kerosene/unconverted oil as manufacturing materials of normal paraffin/lubricants
    1. Submit the autonomous consumption amount (return rate (%)) of the previous year until March of the relevant year Confirm them by the end of April of the relevant year and notify the relevant reporter, raw material suppliers, and oil company CEOs (1 time/year)