ISLAMABAD: Customs authorities at ports across Pakistan have not cleared any Iranian origin ship containing crude oil till date, Customs Department revealed in a report on Iranian petroleum products.
In this regard, a report has been submitted by the Federal Board of Revenue (FBR) to the National Assembly Standing Committee on Finance on the matter of misdeclaration of Iranian origin ships, Iranian origin shipments documents and clearance by customs on the UAE/Oman/Iraq and Turkey, origin documents.
It is informed at the outset that no Iranian origin ship containing crude oil has been cleared by the Customs authorities till to date.
As far as the changing of Iranian origin shipment documents and clearance by Customs authorities on UAE/Oman/Iraq/Turkey origin documents is concerned, the factual position has been explained in detail by the FBR. Customs officials said that prior to escalation of the issue, the shipments of crude oil were being cleared on payment of duty and taxes and representative samples were drawn regularly and sent to the Hydrocarbon Development Institute of Pakistan (HDIP) laboratory for ascertaining chemical composition of the crude oil and consignments were discharged on undertaking given by the importer, including "a leading petroleum company engaged in the businesses of oil refining, petroleum marketing, and petroleum logistics", that they will abide by the decision of Custom Authorities on receipt of analysis report of the samples drawn.
The FBR document said that the said petroleum company imported six consignments declared to be 726,564 barrels of "Oman Blend Crude Oil" in Vessel M T Elsa vide IGM No 20/2020 dated July 15, 2020 from Oman through Model Customs Collectorate (MCC) Gwadar (Gaddani Port).
The importer filed six goods declarations and paid leviable Customs duty amounting to Rs246.188 million.
Meanwhile, as 50 percent of the cargo (364,000.00 barrels) was being discharged from the vessel whereas quantity of about 263,000.00 barrel was still on board MCC Gwadar received an information regarding likelihood of misdeclaration of actual description and/or import origin in respect of the above said cargo.
In pursuance of the aforesaid information further discharging was stopped and the remaining cargo on board was detained pending testing/ investigation in the matter.
Subsequently, representative samples were drawn from the cargo by the HDIP in view of the Ministry of Energy (Petroleum Division) OM dated 24.07.2020.
Consequently, the test report was received which categorically confirmed that "to the extent of tests carried out, the samples results fall under the typical characteristics of "Oman Crude Oil".
As such the goods were found to be as per declaration made by the importer, the FBR said.
In the meantime, the MCC Gwadar received test reports from the HDIP, Karachi in respect of already discharged ship i.e. MT Pericles imported by the same petroleum company vide IGM No.19/2020 dated July 3, 2020.
Though all 12 reports confirmed the description of goods as "crude oil" but at the same time the reports categorically mentioned that to the extent of tests carried out, the samples results fall under the typical characteristics of "Iranian Crude Oil".
A contravention case was framed on August 12, 2020 against this petroleum company under Customs Act, 1969 for violation of section 32(1), 32(2) and 32(A) of the Customs Act, 1969.
Currently, the instant case is subjudice before the Customs Appellate Tribunal, Karachi. After the findings in ship MT Pericles, the Ministry of Energy (Petroleum Division) Government of Pakistan has revised the Standing Operating Procedure (SOP), wherein, crude oil is being cleared after receipt of analysis report confirming declared chemical composition and origin of the crude oil from the authorised laboratory of the HDIP, the FBR documents added.
Copyright Business Recorder, 2021
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