Frequently asked questions
The obligations of selected entrepreneurs according to the Act no. 218/2013 Z.z. on emergency stocks of oil and petroleum products and on dealing with state of oil emergency and on ammendments and supplements of certain acts (thereinafter „Act no. 218/2013“).
1. What is the basic obligation of the selected entrepreneur?
The selected entrepreneur, who imports or release the selected petroleum products for consumption within the territory of the Slovak Republic pursuant to anexactly defined customs and tax regimes („imported products“) is obliged to conclude the Contract on Procuring the Maintenance of Emergency Stocks (“Contract”) with the Emergency Oil Stock Agency (hereinafter "Agency"). This obligation does not apply to an entrepreneur whose imports or release for consumption of selected petroleum products does not exceed 20 m3overall over 12 consecutive calendar months.
2. For which petroleum products this obligation applies? Which are "the selected petroleum products"?
The selected petroleum products are different types of petroleum products falling into the following 3 categories:
1. Motor and aviation fuels of gasoline type
2. Diesel, kerosene, jet fuel and other gas oils,
3. Heating oil
The individual selected petroleum products with the relevant codes of the combined nomenclatures of customtariffs are listed in Annex no. 1 of Act no. 218/2013. With a few exceptions,in principle applies that the selected petroleum products are those petroleum products (mineral oils), which are subject of excise duty under the Act no. 98/2004 Z.z. on excise duty on mineral oil.
3. To what date is the selected entrepreneur required to concludethe Contract with Agency?
A subject who will become the selected entrepreneur is required to notify and demonstrate to the Administration of State Material Reserves of the Slovak republic ("Administration of Reserves") that it fulfilled the obligation to conclude the Contract with the Agency within 15 days of the date when it became selected enterpreneur (i.e. since it importes or release into consumption more than 20 m3 of selected petroleum products over the past 12 consecutive calendar months).
4. What is the procedure of concluding the Contract?
The selected entrepreneur should contact the Agency in advance to keep the 15 days period. The selected enterpreneur can download template of the Contract from the web site of the Agency (www.eosa.sk) in the section "Downloads" (http://www.eosa.sk/na-stiahnutie) titled "Zmluva_udrziavania_nudzovych_zasob_ropy.docx". The selected entrepreneur fills in his information on the front page and prints the Contract in 3 copies.
All 3 copies shall be signed on the backpage and sent by post to the Agency to the address stated on the web site of the section "Contact".The integral part and annexes to the Contract are the Business Terms and price list, so it is necessary to be acquainted with them. The contract has a standardized form and it is the same for all selected entrepreneurs. The selected entrepreneurs therefore have no option to change the wording. After receipt of the 3 copies Statutory representative of Agency signs the Contract, and thus the Contractenters into force. The Agency subsequently sents one copy of the Contract back to the selected entrepreneur.
Note .: For simplification of the procedure, the selected entrepreneur may send3 signed copies of the Contract also with:
· the agreement for receiving the electronic invoices –the template available here (http://www.eosa.sk/na-stiahnutie)
· affidavit with estimate of volume of imported products within 3 calendar months following the date of concluding the contract - see paragraph 15.
5. How does the selected enterpreneur demonstrate a fulfilling of its main obligations?
The selected entrepreneur demonstrates fulfillment of it smain obligations by submitting a signed copy of the Contract to Administration of Reserves.The selected entrepreneur shall send scanned Contract electronically to the email address: firstname.lastname@example.org.
6. Where the selected entrepreneur can learn more about the terms of the Contract?
Template of the Contract, as well as current Business Terms for this Contract ("Business Terms") are disclosed on the web site of the Agency (www.eosa.sk) in the section "Downloads" (http://www.eosa.sk/na -stiahnutie) as well as on the web site of Administration of reserves (http://www.reserves.gov.sk).
7. What happens, if the selected entrepreneur does not fulfill its main obligation and carries out activities referred to in Section 2. d) of Act no. 218/2013 without existing Contract?
Agency monitors performance of activities referred to in Section 2. d) of Act no. 218/2013 and thus also fulfilment of the main obligations of the selected entrepreneurs to conclude the Contract pursuant to Act no. 218/2013 by means of regularly delivered data from Financial directorate of Slovak republic.
If the Agency based on data from the Financial directorate of the Slovak republic identifies that there is a selected entrepreneurs who have not fulfilled its obligation in accordance with the procedure specified in paragraph 4, asks this selected entrepreneur for prompt concluding of the Contract. If the selected entrepreneur fails to meet its obligation to conclude the Contract even following the appealof the Agency, the Agency shall notify Administration of Reserves about this fact.
In accordance with Section 23 (6) of Act 218/2013, Administration of Reserves imposes the fine of 665,000 euros to the selected entrepreneur if even the appeal of Administation of reserves havenot led to a remedy. If the selected entrepreneur performs the activities without concluding the Contract even after the imposition of fines, Administration of reserves will initiate cancellation of the trade license of the selected entrepreneur.
8. What is the main obligation of the selected entrepreneur pursuant to the Contract?
The selected entrepreneur is obliged to pay the price in accordance with the Contract and Business Termsfor providing services on procuring the maintenance of emergency stocks hereinafter as “Service”). Value of unit coefficient by which the final price is calculated is shown in the price list annexed to the Contract, whichis published on the web site of the Agency respectively.
9. How will the Service price be paid?
The price of the Service will depend on the actual volume of imported products by selected enterpreneurs. The selected entrepreneur will pay a monthly payment to an account in the State Treasury, account number: 7000535146/8180, SWIFT: SPSRSKBA, IBAN: SK13 8180 0000 0070 0053 5146. The amount of the price is calculated as the multiplication of the unit coefficient according to price list and the net volume of imported products by this selected entrepreneur for the respective calendar month. VAT is added to each payment for these services.
10. How does the Agency find out the actual volumes of imported products for each selected entrepreneurs?
The details about the real imported volume of products will be reported to the Agency by the selected entrepreneurs by means of the document "Notification onvolume", which is available for this purpose for download on the website of the Agency under "Downloads". The selected enterpreneurs shall send a scan od the complete document „Notification on volume“ by e-mail to email@example.com not later than the 13-th day of the month following the decisive month.
If the last day of this period falls on other than working day, the selected entrepreneur is obliged to deliver the Notification on volume on the previous working day. The Agency will verify this data by later delivered data on import volumes of selected petroleum products from the Financial directorate of Slovak republic.
11. What happens if selected entrepreneur provides an incorrect amount in the Notification onvolume?
If the Agency during the verification process will find out that the selected entrepreneur has given incorrect information about the actual imported volumes,without undue delay, but not later than 15 days from the end of the calendar month, in which the difference in the amount was detected, the Agency will correct the price for the month as a correction of the tax basepursuant to Section 25 of the Act on VAT ("corrective invoice“). The difference between the amounts reffered to above may be positive ("reduction of the price") or a negative number ("increase of the price"). Above mentioned difference shall be paid by the Agency (in case of reduction of the price - an overpayment) or selected entrepreneur (in case of a increase of the price - arrears) not later than 10 days from the date of issue of the corrective invoice. If the selected entrepreneur repeatedly breaches its obligation to deliver the Notification onvolumeduly and on time or repeatedly provides incorrect or incomplete information in this Notification on volume, the Agency shall be entitled to terminate the Contract on procuring the maintenance of emergency stocks with this selected entrepreneur.
12. When will the invoices be issued for the selected entrepreneurs for the respective months and what is the due date of these invoices?
After sending data on the actual volumes of imported products from selected enterpreneurs, the Agency will issue invoice still the 15-th day of the following month. The due date of these invoices will be the 25-th day of the following month, as well as the due date of excise duty from mineral oils, which selected enterpreneurs pay for selected petroleum products.
13. What happens, if there is a tax refund of mineral oil according to a special regulation in relation to imported products?
Except for the volume of imported products the selected entrepreneur specifies in the document "Notification on volume" also a volume of selected petroleum products, for which the tax based on Act. 98/2004 Z.z. on excise duty on mineral oil was refunded. The data on volume of imported products for selected entrepreneur, to whom the tax was returned, is also announced to the Agency by Financial directorate of Slovak republic. The Agency after having obtained information on the volume in relation to which the tax has been returned, reduces the data of the net volume of imported products during the calculation process of final price.
14. Is the selected enterpreneur obliged to submit any collateral for the Agency?
Yes. The selected enterpreneur is obliged to make a security deposit within five working days after the date of the Contract’s entry into force to the bank account of the Agency.
15. How is the amount of collateral specified?
Amount of collateral for each selected entrepreneur should be equal to one month's average payment of selected entrepreneurs for services of the maintenance of emergency stocks. For this purpose, when concluding the Contract, the new selected entrepreneur should provide an estimate of the volume of imported products during 3 calendar months after having concluded the Contract in the form of an affidavit. Based on the above mentioned estimate, Agency calculates one-month average of volume of imported products and the amount of the collateral should be determined by multiplying of this volume and unit coefficient according to the price list, which shall be raised by20% corresponding to VAT rate.
The amount of collateral will be changed during the duration of effectiveness of Contract in accordance with the Business Terms pursuant to paragraphs 9.4 (ii), 9.5 and 9.6 of Business Terms. The Agency will change the amount of collateral every year depending on the average of products imported by selected enterpreneur for the previous calendar year. The Agency will be entitled to change the amount of collateral, depending on the fulfillment of the obligations of the selected entrepreneur. If the selected entrepreneur will be in delay with payments under the Contract, the Agency may increase the colateral. On the contrary, in case of duly fulfilment of the obligations, the Agency may reduce the collateral. In all cases, the Agency shall inform the selected entrepreneur about the current amount of the collateral.
16. Is there any alternative to the collateral?
Yes. Instead of depositing the collateral the selected entrepreneur may provide a bank guarantee in the amount as required for collateral. Requested amount of the bank guarantee is updated under the same rules as the amount of collateral. The template of the bank guarantee, acceptable for the Agency, will be published on the web site of the Agency (www.eosa.sk).