The foreign suppliers of petroleum products have been allowed to establish their own registered businesses or operate through a subsidiary company registered in Pakistan.
The Federal Board of Revenue (FBR) Wednesday issued new a procedure for the international oil suppliers for the import of crude oil and other petroleum products on foreign supplier’s account 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.
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 re-export 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 therefrom 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.
The “consignee” means the foreign supplier having its own registered business in Pakistan. In case of its own dedicated storages, foreign supplier shall have storage licensed by OGRA under the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing), Rules 2016; or its subsidiary company registered as an importer and exporter with FBR in Pakistan; and having bank account(s) in Pakistan.
The consignee shall be allowed to supply bonded petroleum products to local purchasers (refineries or OMCs) having prior online permission from OGRA for each consignment as per the applicable provisions of the IPO and all other relevant regulations, guidelines, etc., contained in any other law for the time being in force.
The consignee shall be allowed re-export of bonded petroleum products as per export procedure in vogue subject to fulfillment of conditions, restrictions as envisaged in the Export Policy Order and any other law in force, FBR added.