Mohsin Siddiqui (Chief Reporter)
The Federal Board of Revenue (FBR) announced on Monday its decision to permit foreign suppliers of petroleum products to maintain their inventories of crude oil and other petroleum products in bulk within Customs bonded warehouses across Pakistan.
In a notification issued as SRO 568(I)/2024, the FBR introduced regulations governing the import, domestic sale, and re-export of petroleum products under the Customs Bonded Facilities Rules, 2024. This move aims to streamline the process for international oil suppliers importing crude oil and other petroleum products through Customs bonded storage facilities.
Under the newly established procedure, foreign suppliers are granted the flexibility to either establish their own registered business or operate through a subsidiary company registered in Pakistan. They are authorized to stockpile crude oil and other petroleum products in bulk within Customs bonded warehouses nationwide, without the necessity of foreign exchange remittances. This inventory can be held pending sale to local purchasers or re-exportation to other foreign countries.
These regulations, endorsed by the federal cabinet, apply to international oil suppliers in accordance with policy directives issued by the federal government. The import, domestic sale, and re-exportation processes are governed by the Import Policy Order, 2022, as amended by SRO 1259(1)/2023 dated 07.09.2020, and the Export Policy Order, 2022, as amended by SRO 1260(1)/2023 dated 07.09.2023. Additionally, policy directions from the Oil and Gas Regulatory Authority (OGRA) and the State Bank of Pakistan (SBP) are to be adhered to.
The FBR emphasized that foreign suppliers have the option to establish their own registered business entity or operate through a subsidiary company in Pakistan. They can maintain their inventory of petroleum products in Customs bonded warehouses across Pakistan, with no requirement for foreign exchange remittances, until sold domestically or re-exported abroad. This procedure must be followed for the import, domestic sale, and re-export of petroleum products by the consignee, as per FBR guidelines.
