FBR allows foreign suppliers to Import, Domestic Sale and Re-export of Petroleum Products by using their own foreign exchange

ISLAMABAD, Feb 07 (SABAH): Federal Board of Revenue (FBR) on Thursday allowed foreign suppliers to Import, Domestic Sale and Re-export of Petroleum Products by using their own foreign exchange. This facility would enable the country save few billion dollars from foreign exchange reserves, once this facility is adopted by many foreign suppliers.

In this regard, federal Board of revenue on Thursday notified rules namely, Import, Domestic Sale and Re-export of Petroleum Products on Foreign Supplier’s Account under the Customs Bonded Facilities Rules, 2024. FBR notification 59(i) 2024 issued here stated that these 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 notified and ratified by the Federal Cabinet.

The SRO stated that once this facility of the import, domestic sale, and re-export shall be regulated in terms of the Import Policy Order, 2022 of the Ministry of Commerce. The foreign supplier shall have the option to establish their 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 Rules, on arrival of the petroleum products at port, the consignee or his authorized customs agent shall file a goods declaration (GD) through the Customs Computerized System (WeBOC or PSW) for in-bonding (TB) or safe transportation (ST) thereof to private or public bonded warehouse.

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. 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.