POL items export to Afghanistan under DTRE scheme: FBR rejects OMC's proposal for separate procedure

The Federal Board of Revenue has rejected a proposal of a leading oil marketing company to introduce a separate procedure for export of petroleum products (POL) products to Afghanistan under the Duties and Tax Remission for Export (DTRE) scheme.
Sources told Business Recorder here on Thursday that the government has restricted the local oil refineries from exporting petroleum products to Afghanistan. At the same time, a standard procedure on the export of the POL products to Afghanistan is available under the Customs Rules.
Details of the issue revealed that the Model Customs Collectorate (MCC) Preventive Customs House Karachi has thoroughly examined the representation of a top oil marketing company in private sector. Customs authorities were of the view that the procedure for acquisition and subsequent export of POL products to Afghanistan under DTRE scheme is already available in Chapter XII, Rule 307(4-7) read with Chapter-VIII and XXII of the Customs Rules, 2001.
The Chapter XXII of the Rules prescribes detailed procedure of transportation of POL products to Afghanistan. In the presence of these elaborate procedures, customs officials opined that there is no need to devise a new procedure of transportation of POL products to Afghanistan under the DTRE scheme unless the same is specifically pointed out by the oil marketing company.
Under the Chapter XXII of the Customs Rules, 2001, in case of export under DTRE facility as provided under the Customs Rules 2001, the oil exporting company or as the case may be refinery shall, in addition to their other legal obligations in this behalf, produce true copies of all the invoices, permits, goods declarations, foreign exchange remittance documents for the purpose of DTRE reconciliation or audit. It is, however, pointed out that currently, the export of petroleum products by local refineries has been disallowed by the Ministry of Petroleum, sources added.