VU The Constitution of 15 September 1992;
VU Constitutional Law No.92/AN/10/6eme The revision of the constitution;
VU Law No. 51/AN/09/6th L of July 1, 2009 on the Code of the Environment;
VU Law No.134/AN/11/6th L of 1 August 2012 adopting the Djibouti Trade Code;
VU Law No.12/AN/98/4 L of 11 March 1998 reformes state and mixed economy societies and public institutions in Industrial and commercial character;
VU Act No. 97/year/2000 of 10 August 2000 reorganizing the Ministry of Energy and Natural Resources;
VU Decree No.99/0077/PR of 08 June 1999 on the reform of state and mixed economy societies and public institutions of an industrial and commercial nature;
VU Decree No.2013-0044/PRE of 31 March 2013 appointing the Prime Minister;
VU Decree No.2013-0044/PRE of 31 March 2013 appointing members of the government;
VU Order No.2013/-0058/PRE fixing the powers of departments;
VU Circular No.01/PAN dated 05/01/14 convening the third public session of the 2nd Ordinary Session of the year 2013/2014;

The Council of Ministers heard in its meeting of 12 November 2013.

PART I: GENERAL PROVISIONS

Article 1: The purpose of this Act is to regulate the import, storage, fugitive, transport, distribution and marketing of refined hydrocarbons and hydrocarbons in the Republic of Djibouti.

Article 2: For the purposes of this Act, the following terms have the following definition:
- Hydrocarbons: solid, liquid or gaseous hydrocarbons existing in the natural state in the basement and all associated products;
- Refined hydrocarbons: products derived from crude oil and natural gas that have undergone first-process operations that are intended to make them marketplace;
- Supply: supply of the national market for refined hydrocarbons and hydrocarbons, including import, transport, storage and distribution activities;
- Distribution: is to take these products into deposits to deliver them directly to large consumers or to supply small consumers through service stations;
- Import: acquisition of petroleum products on the international market and their receipt in aggregate storage warehouses for consumption on the national market or re-export;
- Carriage of petroleum products: transfer from one point to another of the national territory of products by pipeline, by road, by rail or by sea;
- Storage: surface or underground storage of petroleum products that include refined products, butane, propane and liquefied petroleum gases, to provide reserves for the supply of the national market for a specified period of time;
- Service stations: a facility composed of at least three voluntizers with an underground storage capacity, and offering services such as washing, draining and supply of water and compressed air;
- The repository: means an establishment with storage facilities where petroleum products are stored in bulk and in condition;
- The security stock: stock of refined hydrocarbons and hydrocarbons to inviolable minima in normal operating situations and intended to ensure the security of supply of the country in case of rupture;
- Infuse: filling in in accordance with international security standards as well as packaging of standardized dimensions and holdings;
- Licence: administrative document issued by the Minister of Energy responsible for Natural Resources. It confers upon the licensee, depending on its specificity and during the period of validity, the right to import, store, transport, market and distribute derivative hydrocarbons and hydrocarbons throughout the territory and possibly to export them. It also gives the licensee the right to construct facilities within the limits defined in the terms of reference and during the validity period of the licence. It is neither transmissible nor dessible, nor susceptible to mortgage or gage.

Article 3: The exercise of the import, storage, transport, distribution and marketing activities of refined hydrocarbons and hydrocarbons is authorized only legal persons under private law or public law who have obtained a licence.
The licence is only applicable to the activities for which it was granted.

PART II: EXERCISE CONDITIONS FOR SECTOR ACTIVITIES

HYDROCARBRES AND HYDROCARBRES

Article 4: The tariffs for the import, storage, transportation, and distribution of refined hydrocarbons and hydrocarbons are set as follows:
- the name, status or social reason, nationality, domicile and professional address of the applicant;
- Names, first name(s), quality, nationality of all persons with a responsibility in the management of the company: president, director, manager, board members;
- Operating accounts and the balance sheet of its last fiscal year (for companies having had previous activities);

- Any document justifying the applicant's technical capacity and financial solvency;
- elements on safety systems and programmes to deal with accidents in accordance with existing standards;
- Guarantee insurance for the coverage of industrial risks related to the activity;
- An environmental impact assessment of the activity;
- domicile of the bank account of the company in a commercial bank in the Republic of Djibouti.

Article 5: Any legal entity of public or private law, planning to import refined hydrocarbons and hydrocarbons for its own needs or for the supply of the national market, shall, in advance, after the advice of the Hydrocarbons Directorate, obtain from the Minister of Energy responsible for Natural Resources after the advice of the Hydrocarbons Directorate an import licence with the exception of specific cases specified by the Order.
Any importer is required to comply with the quality standards and specifications of each product category and must commit to passing their products through an aggregate Customs deposit and forming a security stock deposit.
The standards and quality of products, the level and modalities for establishing security stocks are set out in the Decree.
Import licence holders are required, on equal terms and conditions of assignment, to prioritize products from national refining facilities.

Article 6: Any legal entity of public or private law that intends to carry out activities for the storage of refined hydrocarbons or hydrocarbons to supply the national market must first obtain a storage licence.
The owner of the storage facilities is required to comply with the quality standards of the product, safety of the facilities and environmental protection set out in the Order.
Any owner of a petroleum product storage facility must ensure access to its facilities to any natural or legal person authorized to import petroleum products provided that these products meet the required standards and specifications.
Storage in the same tray of similar products that meet international safety standards is permitted.
Authorized importers are required to establish security stocks in major repositories and regional intermediate deposits for all types of products marketed.

Article 7: Any legal entity of public or private law wishing to carry out a refined hydrocarbon distribution activity to supply the national market must first obtain a distribution license from the Ministry of Energy responsible for natural resources.
Refined hydrocarbon sales to people with no fixed tanks for storage are mandatory within a service station with the exception of lamping oil that is made in the sales points and retailers.

Article 8: Any legal or physical person wishing to carry out a refined oil and hydrocarbon transport activity must first obtain a transport licence.
Transport activities will be determined by Order in Council of Ministers on a joint proposal by the Minister of Energy for Natural Resources and the Minister of Equipment and Transport.
Any licensee of a licence to carry refined hydrocarbons and hydrocarbons is required to meet the standards of quality and quantity of products, safety of facilities, goods, people and environmental protection.

The licence is granted by joint decision of the Minister of Energy responsible for Natural Resources and the Minister of Equipment and Transport.

PART III: SAUVEGARDE MEASURES
CRIMINATE

Article 9: Any licensee shall inform the Minister of Energy responsible for Natural Resources of:
- The temporary or permanent cessation or reduction of its activities;
- Disruptions either by stopping programmed or by force majeure;
- Any other cause to cause interruption in the operation of the facilities and the commercialization of refined hydrocarbons and hydrocarbons.
The licensee shall indicate the possible gravity of the facts, causes, solutions envisaged and the estimated duration of the interruption.
The Minister of Energy responsible for Natural Resources may intervene on all or part of the supply chain, to prevent interruptions in the operation and distribution of refined hydrocarbons and hydrocarbons that may affect the national economy by:
- Establishing an emergency distribution plan;
- temporarily administering prices;
- temporarily reducing operations and other activities related to the licence;
- Establishing a specific code to correct consumer and price distortions;
- Implementing other means leading to the maintenance of a rational and adequate exploitation.
Licensees of import, storage, fugitive and distribution licences are required to provide hydrocarbon management officers and their agents with access to their facilities and to provide them with any relevant statistical, technical or financial information or documents that relate to the activity for which the licence was issued.

PART IV: FISCAL PROVISIONS
AND DOUANIA

Article 10: Individuals who hold import, storage, distribution and transportation licences are subject to the common law tax system for each of their activities and to the duties and taxes related to petroleum products. However, if they have an approval under the Investment Code, they benefit from the tax benefits provided by this code.

Article 11: Persons authorized to carry out the activities defined in this Act shall be subject to the customs regime of common law, unless they are entitled to the customs benefits granted in accordance with the Investment Code.

PART V: INFRACTIONS AND SANCTIONS
ADMINISTRATIVES

Article 12: Where a company carrying on one or more of the activities defined in this Act does not meet the commitments entered into or ceases to meet the conditions and obligations resulting from this Act, its implementing legislation and the terms of reference, the licence may be suspended or revoked by a decision of the Minister of Energy responsible for Hydrocarbons.
Constituent offences under this Act:
- The exercise of any of the activities covered by this Act without prior authorization;
- Failure to comply with the conditions of licensing and obligations contained in the terms of reference;
- The violation of security standards for storage facilities, goods and persons;
- Any falsification and false declaration that allowed the licence to be obtained;
- Non-compliance with environmental laws and regulations.
- Any refusal to cooperate to provide the requested information.
Offences are recorded by minutes issued by the sworn officials of the Ministry of Energy responsible for Natural Resources who has the opportunity to apply administrative sanctions or transmit the minutes to the Public Prosecutor.

However, in accordance with the adversarial procedure, the minutes are notified to the companies concerned prior to any administrative sanctions or legal proceedings.

Article 13: In the event of a duly recognized offence, without prejudice to the sanctions of the Penal Code, the following administrative penalties are imposed upon the companies:
- A fine of 500,000 to 3,000 YFD paid to the Treasury;
- A fine of up to double the gains from the offence;
- The suspension of the licence for a period of 1 to 6 months;
- The final withdrawal of the license.

PART VI: TRANSITIONAL PROVISIONS
AND FINAL

Article 14: Any legal entity of public or private law engaged in the import, storage, transport and distribution of refined hydrocarbons and hydrocarbons on the date of entry into force of this Act may continue to carry out its activities.
However, it must comply with the provisions of this Act within a period not exceeding three (3) months from the date of its entry into force.

Article 15: Any earlier provisions contrary to this Act are repealed.

Article 16: This Act shall take effect from its date of publication after promulgation by the President of the Republic.