TO
Mr Emil Karanikolov,
MINISTER OF ECONOMY

 

Subject: Draft Ordinance on the terms and conditions for keeping a register of the persons conducting economic activities related to oil and petroleum products (URBRDDIDNPNP)

Dear Mr. Karanikolov,

Bulgarian Industrial Capital Association (BICA) has the following

OPINION:

On the draft Ordinance on the terms and conditions for keeping a register of persons engaged in economic activities related to petroleum and petroleum products (UNDP):

Procedural – the reference to an exceptional case within the meaning of Art. 26, para. 4 of the LPA for the public deliberation for us is unjustified and for unconvinced reasons as even if the 30-day period does not hinder the project to be adopted in due time, given the entry into force of the law from 28.01.2019. Given the controversial nature of a number of norms and their impact on the fuel business, we think it would be appropriate to postpone the entry into force of the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products (ZARISNNPNP). The same applies to the draft regulation under discussion.

We use the occasion to reiterate the principle that we follow in principle to support all measures aimed at curbing the gray economy, which is among the declared basic goals of the law. In our view, however, the achievement of such a goal is incompatible with the restriction of real competition, which is seriously disturbed by many operators in the industry.

After a thorough analysis of the draft Ordinance, we find:

1. The project reproduces the norms of the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products, with obvious observance of its manifest contradictions with Art. 19 of the Constitution of the Republic of Bulgaria with regard to the free economic initiative, creation and guarantee of equal legal conditions for economic activity, prevention of abuse of monopoly, unfair competition, consumer protection, investment and economic activity;
2. As correctly noted on page 2 of the Report of the Interdepartmental Working Group established by Order No. РД-16-1053 / 11.09.2018 of the Minister of Economy (for drafting a draft Ordinance, which sets the terms and conditions for keeping a register of persons engaged in economic activities related to petroleum and petroleum products) “The draft Ordinance does not introduce texts of European legislation”. However, the fact that this project violates the norms of Community acts such as:

1. Directive 2006/123 / EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market (Preamble (52) – Simplification of administrative procedures and formalities, Preamble (69) Where requirements are discriminatory or objective justified by imperative reasons of public interest or where they are disproportionate, they must be removed or amended, “Preamble (99)” The insurance or guarantee should be adequate to the nature and extent of the risk “, Preamble (110) For Member States and it should be impossible to circumvent the rules laid down in this Directive, including the provision on the freedom to provide services, by carrying out inspections, inspections or investigations which are discriminatory or disproportionate. “Article 5 Simplification of procedures Article 10 Conditions for granting authorization, Article 14 Prohibited requirements, paragraph 7, etc.).
2. Directive (EU) 2015/1535 of the European Parliament and of the Council of 9 September 2015 laying down a procedure for the provision of information in the field of technical regulations and rules on Information Society services (Preamble (2)) – the prohibition of quantitative restrictions the movement of goods and measures having the same effect is one of the fundamental principles of the Union “, Preamble (7)” The aim of the internal market is to create an environment conducive to the competitiveness of enterprises “).
   and above all
3. The Small Business Act, proclaiming the European Competitiveness Principle – “Think about the little ones first”.
   A major flaw in the draft of the URBRDDIDNPNP is that no legal delegation exists for many of the prescribed norms. Such is provided in the IRISPNPN, Art. 4, para. 4 in relation to Art. 16, para. 1. The Delegation shall require the Minister of Economy to issue an ordinance defining only the terms and conditions for keeping a register of persons engaged in economic activities related to oil and petroleum products. This is not the decision in the draft Ordinance:
   In Art. 14, para. 1 (4) introduces a requirement for the submission of property documents certifying the existence of real or bond rights for the activities under Art. 2, para. 1, item 1-6 of the Law;
4. In Art. 16, para. 1, item 4 and Art. 17, para. 1, item 6 a requirement for submission of explanatory notes by the respective applicant is introduced;
5. In Art. 19, para. 1, item 4 and in Art. 21, para. 1, item 1 introduces a requirement for submission of a document of ownership;
6. In Art. 35, para. 1 deposit in cash shall be provided for a period of not less than one year and six months from the date of submission of the application to the termination of the registration or the replacement of the bank deposit with a bank guarantee. In Art. 10, para. 3 of the Law, the time limit is limited to one year and six months from the submission of the application, without any additional restriction.

The stated (non-exhaustive) material defects justify our position against the draft Ordinance on the Terms and Conditions for keeping a register of the persons conducting economic activities related to oil and petroleum products (URBRDSDNPNP).