Petroleum product providers from outside are permitted to open their own registered companies or conduct business through a subsidiary firm that is formed in Pakistan.
New guidelines for foreign oil providers importing crude oil and other petroleum products on their account through customs-bonded storage facilities were released by the Federal Board of Revenue (FBR) on Wednesday.
Under the Customs Bonded Facilities Rules, 2024, the FBR has released Import, Domestic Sale, and Re-export of Petroleum Products on the Foreign Supplier’s Account.
In compliance with the Federal Government’s policy guidelines, new procedures will be applicable to foreign oil suppliers for the import of crude oil and other petroleum products on their behalf through customs-bonded storage facilities that have been approved by the Federal Cabinet.
The Oil and Gas Regulatory Authority (OGRA) and State Bank of Pakistan (SBP) policy directives, as well as the Import Policy Order,
- 2022, as amended, vide SRO 1259(1)/2023 dated 07.09.2020.
- The Export Policy Order, 2022, as amended vide SRO 1260(1)/2023 dated 07.09.2023, shall govern the import, domestic sale, and re-export.
The foreign supplier would be able to choose between operating through a Pakistani-registered subsidiary firm or starting its own registered business. Without having to send in foreign cash, they will be able to keep an inventory of crude oil and other petroleum products in bulk in customs-bonded warehouses across Pakistan, awaiting sale to local buyers or export to other nations.
According to FBR, the consignee must adhere to the process when importing, selling, and re-exporting petroleum products domestically.
The foreign provider with its own legally recognized firm in Pakistan is referred to as the “consignee.” When it comes to its own storage facilities, the foreign supplier must either have a storage license issued by OGRA under the 2016 Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules or have a subsidiary company that is registered with the Federal Bureau of Exportation and Importation (FBR) as an importer and exporter and has a bank account in Pakistan.
With prior online approval from OGRA for each consignment, the consignee will be permitted to supply bonded petroleum products to local purchasers (refineries or OMCs) in accordance with the applicable provisions of the IPO and all other pertinent rules, guidelines, etc., contained in any other law currently in effect.
FBR stated that the consignee will be permitted to re-export bonded petroleum products in accordance with current export procedures, provided that all requirements and limitations outlined in the Export Policy Order and any other applicable laws are met.
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