Petroleum products: Foreign suppliers allowed to maintain inventories in bulk

ISLAMABAD: The Federal Board of Revenue (FBR) on Monday allowed foreign suppliers of petroleum products to maintain their inventories of crude oil and other petroleum products in bulk in Customs bonded warehouses located anywhere in Pakistan.

The FBR has notified SRO 568(I)/2024 to issue import, domestic sale and re-export of petroleum products on foreign supplier’s account under the Customs Bonded Facilities Rules, 2024 on Monday.

The FBR has a new procedure for the international oil suppliers for the import of crude oil and other petroleum products on foreign supplier’s accounts through Customs bonded storage facilities.

March sales of petroleum products jump 4pc YoY

Under the new procedure, the foreign supplier shall have the option to establish its own registered business or operate through a subsidiary company registered in Pakistan. They will be allowed to maintain an inventory of crude oil and other petroleum products in bulk in Customs bonded warehouses located anywhere in Pakistan, without foreign exchange remittances, pending its sale to local purchasers or its re-export therefrom to other foreign countries.

According to the new procedure, the new rules shall apply to international oil suppliers, in accordance with the policy guidelines issued by the federal government, for the import of crude oil and other petroleum products on foreign supplier’s account through Customs bonded storage facilities ratified by the federal cabinet.

The import, domestic sale, and re1export shall be regulated in terms of the Import Policy Order, 2022 as amended vide SRO 1259(1)/2023 dated 07.09.2020 and Export Policy Order, 2022 as amended vide SRO 1260(1)/2023 dated 07.09.2023 and policy directions by Oil and Gas Regulatory Authority (OGRA) and State Bank of Pakistan (SBP).

The foreign supplier shall have the option to establish its own registered business or operate through a subsidiary company registered in Pakistan.

They will be allowed to maintain an inventory of crude oil and other petroleum products in bulk in Customs bonded warehouses located anywhere in Pakistan, without foreign exchange remittances, pending its sale to local purchasers or its re-export there from to other foreign countries.

The procedure shall be followed for the import, domestic sale and re-export of petroleum products by the consignee, the FBR added.

Copyright Business Recorder, 2024