The Federal Board of Revenue has issued instructions to the Model Customs Collectorates (MCCs) to ban export of locally-produced POL products to Afghanistan under SRO 67(I)/2012 of the Ministry of Commerce. Sources told Business Recorder that the FBR issued instructions to the Collectors of Customs here on Tuesday to clamp ban on locally-produced petroleum products to Afghanistan.
According to the FBR instructions, the Ministry of Commerce has made amendments in the Export Policy Order regarding POL products to Afghanistan. The SRO 67(I)/2012 of the Commerce Ministry should be implemented at all MCCs, the instructions added. With the issuance of SRO 67(I)/2012, the zero-rating of sales tax, rebate of central excise duty, repayment or drawback of customs duty and refund of the petroleum levy would not be available on export of POL products to Afghanistan.
The ban has been imposed on the locally produced POL products to check their movement outside the country. However, the import of POL products for re-export to Afghanistan is still subject to the rules and regulations of the Ministry of Petroleum, Commence Ministry and FBR, sources said.
Under SRO 67(I)/2012, the facility of duty and tax exemption, including refund of petroleum levy, shall not be available to the exporters of petroleum products, unless there is a Government-to-Government contract and export is done only through oil marketing companies (OMCs) duly registered with the Oil and Gas Regulatory Authority (Ogra). Export of surplus JP-8, as declared and decided in the product review meetings, shall be allowed to the refineries and OMCs. If any of the OMCs intends to import and then export JP-8 to Afghanistan that specific volume shall be allowed through foreign exchange remittance from the buyers without availing any exemption of duties and taxes.
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