
ASEAN has become the most consequential growth corridor for lubricant B2B trade, driven by tariff harmonization under the ASEAN Economic Community, manufacturing relocation from China, and a vehicle parc expanding faster than any mature market. The bloc eliminated duties on over 99 percent of tariff lines for originating goods, while rules of origin requiring 40 percent regional value content incentivize local blending, making a single hub in Singapore or Malaysia a viable gateway to the entire region.
This guide covers the regulatory, commercial, and operational steps importers must master to enter the five priority markets: Thailand, Indonesia, Vietnam, Malaysia, and Singapore. You will learn how SNI, TISI, MS, and TCVN certification regimes differ in practice, which channel structures suit each country's distributor landscape, where industrial and automotive demand segments are concentrating, and how to structure supply agreements, logistics, and after-sales support for sustainable market access.
The ASEAN Economic Community has eliminated import duties on over 99 percent of tariff lines for goods originating within the bloc, creating a near-frictionless zone for lubricant trade. This harmonization allows importers to move base oils, additives, and finished lubricants across member states without the cumulative tariff costs that previously fragmented supply chains. Rules of origin requirements typically demand a 40 percent regional value content according to Lube Report (Lubes'n'Greases) (2024), which encourages local blending and packaging operations. For B2B buyers, this means a single distribution hub in Singapore or Malaysia can efficiently serve the entire region with predictable landed costs.
Multinational manufacturers are accelerating "China Plus One" strategies by shifting production capacity to Vietnam, Thailand, and Indonesia to diversify geopolitical risk and reduce labor costs. This relocation drives immediate demand for industrial lubricants including hydraulic fluids, gear oils, and metalworking fluids required for new factory commissioning. Importers who establish supply agreements now position themselves as preferred vendors for greenfield facilities entering commercial production.
ASEAN vehicle parc growth outpaces mature markets as rising middle-class incomes in Indonesia, Vietnam, and the Philippines fuel first-time car and motorcycle purchases. Two-wheelers represent more than 75% of the ASEAN region's vehicle fleet according to Lube Report (Lubes'n'Greases), creating massive recurring demand for 4T and 2T engine oils. Simultaneously, infrastructure megaprojects across the region, from Vietnam's North-South Expressway to Indonesia's new capital city construction, sustain heavy-duty equipment fleets requiring premium diesel engine oils and greases. This dual automotive and industrial growth engine supports long-term volume visibility for lubricant importers.
Indonesia and Thailand dominate industrial lubricant consumption, together accounting for over half of regional volume driven by automotive manufacturing clusters and petrochemical complexes. Vietnam's industrial lubricant demand is expanding at the fastest rate as electronics assembly and textile production facilities multiply in northern provinces near Hanoi and southern zones around Ho Chi Minh City. Malaysia maintains high per-capita industrial lubricant intensity due to its established electrical and electronics sector and oil and gas maintenance operations. Singapore functions primarily as a blending and re-export hub rather than a consumption center, with finished lubricants shipped to neighboring markets.
The automotive aftermarket commands the largest share of lubricant volume across ASEAN as vehicle parc ages beyond warranty periods and owners shift to independent workshops. OEM fill agreements remain concentrated among Japanese and Korean automakers with local assembly plants, creating high barriers for new entrants without established technical approvals. Aftermarket distribution relies on multi-tier networks of distributors, sub-distributors, and retailers where brand loyalty and price sensitivity vary significantly by country. Importers targeting the aftermarket must invest in mechanic training programs and workshop visibility to compete with entrenched incumbents.
Lubricant demand in ASEAN tracks manufacturing value added and commercial vehicle kilometers more closely than headline GDP, making industrial production indices better leading indicators for volume forecasting. Countries with manufacturing shares above 20 percent of GDP, Thailand, Vietnam, Malaysia, exhibit lubricant intensity ratios two to three times higher than service-dominated economies. Infrastructure spending multipliers further amplify industrial lubricant demand during construction phases. Importers should monitor purchasing managers' indices and industrial production data from national statistics offices rather than relying solely on macroeconomic growth projections for demand planning.
ASEAN lubricant demand splits roughly 60 percent automotive and 40 percent industrial by volume, but the value mix shifts toward industrial specialties where hydraulic fluids and gear oils command higher per-liter margins. Two-wheelers represent more than 75% of the ASEAN region's vehicle fleet according to Lube Report (Lubes'n'Greases), making motorcycle-specific engine oils the single largest SKU category by unit volume. Passenger car motor oil demand is fragmenting into synthetic and semi-synthetic grades as OEMs extend drain intervals, while commercial vehicle fleets drive steady consumption of heavy-duty diesel engine oils meeting API CK-4 and FA-4 specifications. Industrial buyers prioritize technical support and oil analysis programs over price alone, creating stickier relationships than the price-sensitive automotive aftermarket.
Passenger car motor oil demand follows vehicle parc growth and OEM specification upgrades rather than simple GDP trends. Japanese and Korean OEMs dominate the passenger car parc across Thailand, Indonesia, and Malaysia, requiring ILSAC GF-6 and API SP compliant formulations that protect gasoline direct injection engines from low-speed pre-ignition. Commercial vehicle lubricant volume correlates with infrastructure spending and logistics activity, with heavy-duty engine oils requiring extended drain capability up to 80,000 kilometers for fleet operators managing total cost of ownership. Importers should note that commercial vehicle buyers often consolidate purchases through fleet management contracts, while passenger car oil moves through multi-tier retail networks where mechanic recommendation drives brand choice.
Industrial hydraulic fluids and gear oils account for the highest value-per-liter segment in ASEAN, driven by manufacturing, construction, and mining equipment fleets. Hydraulic fluid specifications vary by OEM, Komatsu, Caterpillar, and Hitachi each publish proprietary approval lists that buyers reference during procurement. Gear oil demand centers on ISO VG 220 to 460 grades for enclosed industrial gearboxes, with synthetic PAO and PAG formulations gaining share in high-temperature applications such as cement kilns and steel rolling mills. Importers offering technical services including oil condition monitoring and filtration support gain preferred supplier status faster than those competing on product specifications alone.
Marine lubricants represent a specialized but high-value niche in ASEAN, anchored by Singapore's position as the world's largest bunkering port and growing ship registry in Indonesia and Vietnam. Crosshead cylinder oils for two-stroke marine diesel engines require BN (Base Number) ratings matched to fuel sulfur content, creating distinct product lines for VLSFO and HSFO operations. Aviation lubricants remain tightly controlled by OEM approvals from Pratt & Whitney, GE, and Rolls-Royce, with distribution limited to authorized supply chains serving MRO facilities at major hubs including Changi, Suvarnabhumi, and Kuala Lumpur International. Importers targeting these segments must secure product approvals before engaging buyers, as trial orders are rare in safety-critical applications.
Lubricant demand in nine major ASEAN countries is projected to grow by 2.1% a year to more than 3.5 million metric tons in 2027 according to Lube Report (Lubes'n'Greases), with each market presenting distinct entry conditions shaped by local manufacturing, regulatory frameworks, and channel structures. Thailand and Indonesia lead in total volume, while Singapore functions as the regional blending and trading hub. Vietnam shows the fastest industrial lubricant growth rate, and Malaysia serves as a re-export gateway with harmonized standards. The table below compares key entry parameters across the five priority markets.
| Market | Primary Demand Driver | Key Certification | Channel Structure | Competitive Intensity | Strategic Entry Model |
|---|---|---|---|---|---|
| Thailand | Automotive OEM and EV transition | TISI | Tiered distributor network | High | JV with local blender |
| Indonesia | Two-wheeler fleet and mining | SNI | Multi-level distribution | High | Local blending partner |
| Vietnam | Industrial zone expansion | TCVN | State-owned and private distributors | Medium | Exclusive distributor |
| Malaysia | Re-export and automotive | MS (SIRIM) | Consolidated distributors | Medium-High | Regional hub setup |
| Singapore | Blending and marine bunkering | Enterprise Singapore standards | Direct and trading houses | High | Blending facility or trading office |
The table reveals that certification requirements and channel complexity vary significantly. Thailand and Indonesia demand local production partnerships to navigate TISI and SNI mandates, while Vietnam's state-influenced distribution favors exclusive agreements with established private distributors. Malaysia's SIRIM MS standards align with international norms, enabling faster market access for compliant products. Singapore's open trading environment suits companies establishing regional blending operations or marine lubricant supply chains. Importers should match their entry model to the certification burden and channel maturity of each target country rather than applying a uniform ASEAN strategy.
Thailand's EV transition creates dual-track lubricant demand as the government targets zero-emission vehicle production by 2030 under the EV3.5 policy. Hybrid vehicles require specialized e-fluids for thermal management of battery packs and electric motors, while conventional ICE vehicles still dominate the parc. Japanese OEMs including Toyota, Honda, and Isuzu operate local assembly plants that qualify lubricants through global approval processes, making technical equivalence to factory-fill specifications essential for aftermarket entry. Importers should partner with blenders holding existing OEM approvals to accelerate market access for both traditional and EV-specific formulations.
Indonesia mandates SNI (Standar Nasional Indonesia) certification for all lubricants sold domestically, requiring factory audits and product testing at LPKS (Lembaga Pengujian Kelistrikan dan Surveyor) approved laboratories. The regulation applies to both imported finished products and locally blended oils, with mandatory SNI marking on every container. Local blending partners with existing SNI licenses reduce market entry timelines from 18-24 months to 6-9 months. The two-wheeler fleet drives motorcycle oil volume, while mining and palm oil plantation equipment create steady demand for hydraulic fluids and heavy-duty engine oils. Importers must budget for recurring surveillance audits and label compliance reviews.
Vietnam's industrial lubricant demand concentrates in northern and southern economic zones hosting electronics, automotive, and textile manufacturing clusters. TCVN (Vietnamese Standards) alignment with ISO and ASTM standards simplifies technical compliance, but distribution relies on relationships with state-linked trading companies and private distributors serving specific industrial parks. The country's manufacturing sector contributes a significant share of GDP, correlating with high lubricant intensity in metalworking fluids, compressor oils, and way lubricants. Importers should target distributors with technical sales teams capable of supporting oil analysis programs, as factory maintenance managers prioritize predictive maintenance partnerships over transactional supply.
Malaysia functions as a lubricant re-export hub leveraging Port Klang's connectivity and SIRIM MS standards that harmonize with API, ACEA, and JASO specifications. Local blending plants operated by Petronas, Shell, and independent producers supply both domestic automotive aftermarket and export markets across ASEAN and the Middle East. The MS (Malaysian Standard) certification process accepts international test data, reducing duplicate testing costs for importers with existing global approvals. Distributors in Malaysia typically manage multi-brand portfolios across automotive and industrial segments, offering importers consolidated channel access. Companies establishing regional headquarters in Kuala Lumpur benefit from double taxation treaties and MSC (Multimedia Super Corridor) incentives for technical service centers.
Singapore hosts the world's largest concentration of lubricant blending capacity outside China, with over 20 major blending plants operated by global majors and independent terminal operators. The jurisdiction imposes no mandatory product certification for lubricants, relying instead on Enterprise Singapore's voluntary standards and buyer-driven specifications. Marine lubricants dominate export volumes, with Singapore supplying a major share of global bunker lubricant demand. Trading houses in Singapore structure back-to-back supply contracts linking Middle East base oil suppliers with ASEAN and South Asian buyers. Importers establishing a Singapore entity gain access to trade finance facilities, neutral arbitration venues, and the most developed lubricant logistics infrastructure in the region.
Mandatory product standards, labeling laws, and conformity assessment procedures vary significantly across ASEAN member states and determine whether a lubricant shipment clears customs or faces rejection. Importers must align technical dossiers with each national regime before committing inventory.
Indonesia requires SNI (Standar Nasional Indonesia) certification for all lubricants entering its territory, making it the strictest regime in the bloc. The Ministry of Industry enforces mandatory compliance for automotive engine oils, gear oils, hydraulic fluids, and greases under specific SNI numbers referencing API and JASO performance categories. Foreign manufacturers must appoint a local Importer of Record who secures a Product Registration Number (Nomor Izin Edar) from the Ministry of Trade and a Certificate of Conformity from an accredited LSPro (Lembaga Sertifikasi Produk) such as Sucofindo or Surveyor Indonesia. Factory audits by the certification body are compulsory for the initial license, followed by annual surveillance audits and mandatory retesting of production samples in ISO 17025 labs located in Indonesia. Non-compliant shipments are subject to forced re-export or destruction at the importer's expense with no provision for bonded warehousing rework.
Malaysia enforces compliance through Malaysian Standards (MS) developed by the Department of Standards Malaysia and administered by SIRIM QAS International. Lubricants fall under voluntary standards for most industrial grades but mandatory certification applies to automotive engine oils under MS 1197 and MS 1205 referencing API service categories. SIRIM operates a Product Certification Scheme requiring type testing at its Shah Alam laboratories and an initial factory assessment for the Safety Mark or Quality Mark license. Importers must hold a valid SIRIM license before customs clearance and display the SIRIM certification mark on packaging. The Ministry of Domestic Trade and Cost of Living conducts market surveillance raids targeting counterfeit or unlicensed products with penalties including fines up to RM 100,000 and mandatory product recalls. Distributors typically manage the SIRIM application on behalf of foreign principals to maintain control over the technical file.
Thailand mandates the Thai Industrial Standards Institute (TISI) mark for automotive lubricants under TIS 1031 for gasoline engine oils and TIS 1032 for diesel engine oils. The certification process requires submission of a technical dossier to TISI, factory inspection by Thai officials or designated auditors, and product testing at TISI-approved laboratories in Thailand. Importers must obtain a TISI license for each brand and viscosity grade before shipment. Labeling requirements are stringent: all containers must display the TISI mark, license number, Thai language warnings, net volume in liters, manufacturer name, and API service category in a prescribed format. The Department of Internal Trade enforces compliance at wholesale and retail levels with random sampling. Non-compliance results in sales suspension orders and fines calculated per non-conforming unit. Many foreign brands appoint a single Thai distributor to hold the TISI licenses centrally.
Vietnam operates a Declaration of Conformity system under the Law on Standards and Technical Regulations rather than a mandatory third-party certification mark for most lubricant categories. Importers or authorized representatives must register a Declaration of Conformity (DoC) with the Directorate for Standards, Metrology and Quality (STAMEQ) or a designated conformity assessment body before market placement. The DoC references applicable Vietnamese Standards (TCVN) such as TCVN 6779 for gasoline engine oils and TCVN 6780 for diesel engine oils which align with API and ACEA sequences. Technical files including test reports from ISO 17025 labs, safety data sheets in Vietnamese, and label artwork must be maintained locally for inspection. The Ministry of Science and Technology conducts post-market surveillance testing. Products failing surveillance tests face public notification, mandatory recall, and potential suspension of the DoC. Marine and aviation lubricants face additional sector-specific approvals from the Vietnam Register and Civil Aviation Authority respectively.
The ASEAN lubricant market is structured around a clear hierarchy where global majors command premium segments, state-owned enterprises control distribution infrastructure, and local independent blenders compete on price and flexibility in high-volume commodity grades.
Global majors including Shell, ExxonMobil, BP Castrol, TotalEnergies, and Chevron dominate the premium automotive and high-specification industrial segments through integrated supply chains linking regional blending plants in Singapore, Thailand, and Indonesia to branded service station networks and authorized distributor fleets. These companies leverage OEM technology partnerships with Japanese and Korean automakers to secure factory-fill and service-fill approvals that create high switching costs for fleet operators. Marketing investments focus on synthetic and semi-synthetic product lines with extended drain intervals targeting the growing passenger car parc in Thailand and Indonesia where Indonesia holds close to 50% of the ASEAN region's vehicle parc according to Lube Report (Lubes'n'Greases). Pricing strategies maintain a 20 to 35 percent premium over local brands supported by technical service teams offering oil analysis programs and equipment reliability consulting.
State-owned enterprises such as Pertamina in Indonesia, Petronas in Malaysia, PTT in Thailand, and Petrolimex in Vietnam control the largest retail distribution networks through branded fuel station chains exceeding 5,000 outlets collectively. These entities operate their own blending plants or joint ventures with global majors securing base oil allocation priority during supply tightness. Their lubricant divisions benefit from mandated government procurement preferences for state fleet contracts in public transport, defense, and marine sectors. Petronas and PTT leverage downstream integration from crude production to retail providing cost visibility that pure blenders lack. Pertamina's Lubricants Business Unit commands the leading market share in Indonesia through exclusive access to the Pertamina fuel station network covering over 6,000 locations. These champions increasingly export regionally under their own brands competing directly with global majors in neighboring markets.
Local independent blenders operate in every ASEAN country focusing on mineral-based engine oils, motorcycle lubricants, and general-purpose industrial grades where price sensitivity outweighs brand loyalty. These companies typically run single-plant operations sourcing Group I and Group II base oils from spot markets in Singapore, South Korea, and the Middle East. Additive packages are procured from regional distributors of Infineum, Afton, Lubrizol, and Chevron Oronite on 30 to 60 day payment terms. Labor costs remain significantly lower than Singapore blending operations enabling competitive ex-works pricing for domestic distributors according to Lube Report (Lubes'n'Greases) (2022). Many independents offer private label blending for regional retail chains and automotive workshop networks providing white-label products below major brand equivalents. Quality consistency varies significantly; buyers should verify ISO 9001 certification and request batch-specific certificates of analysis referencing ASTM D445, D4684, and D2270 test methods before placing repeat orders.
Choosing the right entry model determines speed to market, margin retention, and long-term brand control for lubricant importers entering ASEAN. The decision hinges on product complexity, target segment concentration, and willingness to invest in local regulatory compliance. Most foreign suppliers start with distribution agreements before evaluating deeper commitments as volumes scale.
Exclusive distributor agreements remain the dominant entry model for automotive aftermarket and general industrial lubricants across ASEAN. The distributor handles import licensing, local product registration, warehousing, and last-mile delivery to workshops or retailers. Territory definitions must specify whether exclusivity covers a single country, a sub-region like the Jakarta metropolitan area, or specific channels such as modern trade versus traditional retail. Contracts typically grant three to five year terms with minimum annual purchase commitments tied to volume tiers. Performance clauses should include mandatory participation in OEM approval processes, quarterly sell-out reporting, and brand protection obligations against parallel imports. Termination for cause provisions must address failure to maintain ISO 9001 warehouse standards or unauthorized re-blending of imported finished lubricants.
Joint ventures become attractive when targeting OEM factory-fill contracts or premium synthetic segments requiring local blending to meet local content rules. Equity structures typically range from 49 to 51 percent foreign ownership depending on the host country negative investment list. The local partner contributes land, environmental permits, and relationships with state-owned enterprises while the foreign partner supplies formulation IP, additive technology, and quality systems. Technology transfer agreements must be registered with the local IP office to enforce royalty deductions against corporate income tax. Capital expenditure for a 100,000 metric ton blending plant with ISO tank farm ranges from 15 to 25 million USD. Governance deadlocks are common; casting vote mechanisms and predefined buy-sell formulas triggered by EBITDA multiples protect both parties.
Direct sales models suit high-value specialty lubricants such as turbine oils, compressor fluids, and food-grade greases where technical specification drives purchasing decisions. The supplier registers a local representative office or foreign-owned trading company to issue local invoices and manage customs clearance. A lean technical sales team of three to five engineers handles plant trials, oil analysis program management, and lubrication reliability audits for target accounts in power generation, cement, and petrochemical sectors. This model preserves full margin and customer data ownership but requires the supplier to absorb all regulatory costs including SNI certification in Indonesia or MS marking in Malaysia. Lead cycles for major industrial accounts span 12 to 24 months from first trial to blanket purchase order. Digital procurement platforms like B2B procurement strategies for buyers increasingly influence vendor shortlisting for these accounts.
Trade Lubricants & Base Oil on Global Trade Plaza: lubricants on Global Trade Plaza, lubricants suppliers and exporters, lubricants buyers and importers, etro 4 high quality group iii base oil.
Related reading: BS 150 Base Oil Specifications: Properties, Grades & Standards.
ASEAN lubricant entry succeeds when importers match each market's certification regime to a realistic channel model: secure SNI factory audits and a local blending partner before committing to Indonesia, obtain TISI marks with Thai labeling for Thailand, align MS SIRIM approvals with consolidated distributors in Malaysia, leverage Vietnam's Declaration of Conformity through an exclusive distributor, and use Singapore's voluntary standards for blending and marine bunkering hub operations. Industrial buyers require OEM approval lists and oil analysis programs, while automotive aftermarket volume depends on mechanic training and workshop visibility across multi-tier networks.
Structure supply agreements around regional value content rules to capture tariff-free movement, stage market entry by certification lead time rather than GDP rankings, and build technical service capabilities that create switching costs beyond price. Start by mapping target HS codes to each country's mandatory standard and identifying the distributor tier that controls workshop or fleet access. Explore verified buyer contacts and market-specific requirements at Global Trade Plaza.
Register a local entity or appoint a licensed importer of record in your target country to hold permits and manage customs clearance. Secure product certifications such as SNI in Indonesia or TISI in Thailand before shipping commercial volumes. Build a distribution agreement with a vetted local partner who manages sub-distributor networks and mechanic outreach.
Intra-ASEAN trade enjoys zero duties on originating goods under the ASEAN Trade in Goods Agreement when a 40 percent regional value content rule of origin is met. Imports from outside the bloc face Most Favored Nation rates typically ranging from zero to five percent for finished lubricants under HS 2710.19. Non-originating goods pay the applied MFN tariff of the importing member state.
Leading distributors include PTT Oil and Retail Business in Thailand, Pertamina Lubricants and Idemitsu Lube Indonesia in Indonesia, and Petronas Lubricants International across Malaysia and export markets. State-linked entities dominate Vietnam through Petrolimex and PVCFC distribution arms. Global Trade Plaza lists verified distributor profiles with contact details for direct outreach.
Attend the Bangkok International Motor Show and OIL & GAS Thailand exhibition to meet blenders and additive suppliers directly. Search the Department of International Trade Promotion database and Thai Lubricants Association member directory for licensed manufacturers. Use Global Trade Plaza to filter Thai suppliers by product grade, certification status, and verified member badge.
SNI (Standar Nasional Indonesia) certification is mandatory for all lubricant SKUs, requiring factory audits and product testing at LPKS-approved laboratories. The SNI mark must appear on every container sold domestically, including locally blended products. Importers without a local plant typically partner with an SNI-licensed blender to reduce approval timelines from 18-24 months to 6-9 months.
The ASEAN Trade in Goods Agreement eliminates import duties on over 99 percent of tariff lines for goods meeting the 40 percent regional value content origin rule. Lubricants blended in an ASEAN member state using regional base oils and additives qualify for preferential tariff treatment across the bloc. External FTAs such as RCEP and ASEAN-India FTA provide additional duty reductions for qualifying imports from partner countries.
Establish a single distribution hub in Singapore or Malaysia to leverage zero-tariff intra-ASEAN movement of originating lubricants under ATIGA rules of origin. Align product specifications with harmonized standards referencing ISO and ASTM to reduce technical barriers across member states. Monitor the ASEAN Harmonized Tariff Nomenclature updates and national non-tariff measure notifications for regulatory changes.
Lubricant demand in nine major ASEAN countries is projected to grow by 2.1% a year to more than 3.5 million metric tons in 2027 according to Lube Report (Lubes'n'Greases). Two-wheelers represent more than 75% of the ASEAN region's vehicle fleet according to Lube Report (Lubes'n'Greases), anchoring recurring motorcycle oil volume. Passenger car synthetic grades are gaining share as OEMs extend drain intervals.
Verify the distributor's business registration certificate and import license for petroleum products through Vietnam's National Business Registration Portal. Confirm warehousing capacity in northern and southern economic zones near Hanoi and Ho Chi Minh City industrial clusters. Request references from existing principals and audit their sub-distributor network reach into mechanic workshops and fleet accounts.
Labels must display product name, viscosity grade, API or OEM specification, batch number, and manufacturer details in the national language, Bahasa Indonesia for SNI, Thai for TISI, Vietnamese for TCVN. Indonesia and Thailand require mandatory certification marks (SNI logo, TISI mark) on every container. Singapore follows Enterprise Singapore standards aligning with international GHS hazard pictograms and safety data sheet requirements.
Automotive lubricants represent roughly 60 percent of regional volume led by motorcycle engine oils, while industrial lubricants account for 40 percent but command higher per-liter margins on hydraulic fluids and gear oils. Industrial buyers prioritize technical support and oil analysis programs creating stickier relationships. Automotive aftermarket distribution relies on multi-tier retail networks where mechanic recommendation drives brand choice.
Thailand's EV3.5 policy targeting zero-emission vehicle production by 2030 creates demand for specialized e-fluids for battery thermal management and electric motor cooling. Hybrid vehicles still require engine oils but with extended drain intervals reducing per-vehicle volume. Conventional ICE vehicles dominate the vehicle parc in Thailand, sustaining traditional lubricant demand through the transition period.