API announces changes to engine oil licensing and renewal process

API has modified the licensing and renewal process for the Engine Oil Licensing and Certification System (EOLCS) to place it on a calendar year basis and make it consistent with API’s other certification programs. This new process is effective immediately.

The key points in the process are listed below:
• Renewal notices will be issued annually every January.
• Licensees will be required to report the amount of API-licensed oil sold (volume of sale) as part of the renewal process, but volumes will be from the last full calendar year (January 1 – December 31).
• Upon receipt of the volume of sale, API will issue an invoice for the annual license and volume-of-sale fees. Those reporting less than 1 million gallons of licensed oil sold will only be invoiced for the license fee.
• All licenses will be effective annually from April 1 to March 31. Volume reports will be due the last day of February at which point invoices will be generated for both the license fee and volume based royalty fee. Invoices will be due March 31.
• Failure to pay by March 31 could result in license cancellation.
• New licenses issued in November, December, January, February, or March will not need to renew until March of the following year.
• Applicants for an EOLCS license must pay the first year licensing fee before API will evaluate the application. If the application is complete, API will issue the license.

As noted above, this new process is effective immediately. To implement this process, the following steps must be taken:
• By June 28, 2013, all licensees must report volume for the applicable range shown in Table 1 using the attached volume of sale form.
• The ranges are based on a licensee’s renewal month.
• Licensees that have already reported volume will have to submit a second volume report.
• API will credit licensees for any difference between the original 2013 volume report and the revised report on their 2014 invoicing.
• Licensees that currently expire in March are not required to submit new reports.
• Licensees that currently expire in January or February are only required to submit volume for the remaining month(s) of 2012 that were not already reported. This volume will then be added to the 2014 renewal.
• API will issue renewal invoices (or credits) based on the volumes reported — these invoices will be due by July 31, 2013.
• API will change all license expiration dates to March 31, 2014 (remember, going forward, annual licenses will be valid April 1 to March 31).
• Revised licenses will be mailed to all licensees in August.

In the transition of the billing cycle for 2013, API will also adjust minimum license fees for licensees that renew in the last two quarters of 2013.