ISLAMABAD: The Federal Board of Revenue (FBR) Wednesday issued 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.

The FBR has issued Import, Domestic Sale and Re-export of Petroleum Products on Foreign Supplier’s Account under the Customs Bonded Facilities Rules, 2024 on Wednesday.

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.

Oil products’ import on foreign suppliers’ account: Decision not materialised due to delay in notification of SOPs

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, FBR added.

Copyright Business Recorder, 2024

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