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ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the owners of petroleum products, including petroleum, LNG, oil and lubricants to export such POL products to any foreign territory by way of direct sale or third party without filing Electronic Import Form (EIF).

To monitor the export of petroleum products, the FBR has tightened customs procedure for warehousing and export of petroleum (POL) products. According to an SRO 472(I)2021 issued here on Saturday, the FBR has amended the Customs Rules 2001 through a new notification.

A discrepancy in the quantity of POL product warehoused and exported may arise on account of use of different measuring apparatus by the receiving conveyance and the warehouse, sampling, spillage, evaporation or any other circumstances.

Accordingly, any discrepancy shall be dealt as per tolerance limit defined by the Ministry of Petroleum in this regard from time to time.

Access to appropriate officer.- The licensee shall be responsible at all times to provide logistics from port and necessary means to ensure 24/7 access to appropriate officer(s) to the warehouse and any conveyance on which the goods are to be exported, provided reasonable notice is given to the licensee to make such arrangements.

Exemption from warehouse surcharge and development surcharge.

(1) In terms of SRO 822(1)/91 dated 20th August 1991, the POL products as stores and provisions for use on board a conveyance are exempt from additional customs duty leviable as surcharge under section 10 of the Finance Act, 1991 (XII of 1991).

(2) In terms of SRO 369(1)/2002 dated 15th June 2002, the POL products as stores and provisions for use on board a conveyance are exempt from special customs duty leviable as Export Development Surcharge under section 11 of the Finance Act,1991, the FBR said.

Under the new rules, since the POL products, to be imported under this scheme, will be shipped or supplied without foreign exchange remittances from Pakistan, on account of cost of goods at the time of their imports; therefore, no EIF shall be required at the time of filing of GD for their in-bonding. Similarly, no EIF shall be required at the time of export.

The owner of any POL products, warehoused in accordance with the foregoing provisions of this rule, may export such POL products as provisions and stores for conveyances proceeding to any foreign territory including by way of direct sale or sale through a third party.

Under the revised procedure for the bonded warehousing and export of POL products, the FBR said that the owner may store any imported POL products in a warehouse and export the same in accordance with rules.

At the time of arrival of goods at a port, the owner shall file goods declaration through WeBOC system for in-bonding of the imported POL products submitting the documents as required under the Customs Act.

The securities in the shape of post dated cheques and indemnity bond furnished by the owner under section 86 of the Act, at the time of warehousing of POL products, shall continue to be in force notwithstanding the transfer of the goods to any other person or firm unless the warehoused POL products are exported by way of supply to conveyances as provisions and stores.

Under the new rules, since the POL products, to be imported under this scheme, will be shipped or supplied without foreign exchange remittances from Pakistan, on account of cost of goods at the time of their imports, therefore, no EIF shall be required at the time of filing of GD for their in-bonding. Similarly, no EIF shall be required at the time of export.

The owner of any POL products, warehoused in accordance with the foregoing provisions of this rule, may export such POL products as provisions and stores for conveyances proceeding to any foreign territory including by way of direct sale or sale through a third party.

Prior to delivery of POL products, the captain of the warehousing barge in presence of receiving conveyance engineer shall note meter reading on the barge and similarly, the receiving conveyance engineer shall note the meter reading of the conveyance, in the presence of barge captain.

After noting the volumes in both barge and the receiving conveyance as aforesaid, the delivery shall be made.

A sample shall be taken of the product being delivered and shall be sealed; with individual reference seal number of both the barge and the receiving conveyance. These samples shall be maintained by the owner and the conveyance for a maximum period of four months, which are subject to laboratory testing in the event of a dispute.

A copy of all documents of meter readings with signatures from both warehousing barge and receiving conveyances taken pursuant to sub-rule (1) will be sent to the appropriate officer. Samples taken pursuant to sub-rule 3 will also be made available to the Custom Officer by the custodian of the warehouse, in case of any audit, the FBR maintained.

The FBR added that upon completion of ex-bonding of entire quantity of warehoused goods covered by a GD (IB) in accordance with Rule 363F above, the securities furnished in the shape of post dated cheque and indemnity bond in respect of such GD (IB) shall be released and returned to the owner.

Copyright Business Recorder, 2021

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