Islamabad, September 11, 2023 – Pakistan has formally established regulations governing the import of petroleum products under the account of foreign suppliers. The Ministry of Commerce has promulgated a Statutory Regulatory Order (SRO) to this effect.
On September 7, 2023, the ministry issued SRO 1259(I)/2023, amending the Import Policy Order 2022. These new regulations aim to streamline the import process for crude oil and petroleum products, facilitating foreign suppliers and their subsidiaries operating in Pakistan.
Under the revised rules, a foreign supplier of crude oil and petroleum products, or its subsidiary company duly registered in Pakistan, including as an importer and exporter with the Federal Board of Revenue (FBR), is now authorized to import crude oil and petroleum products in bulk for storage. This can occur either in private facilities or customs public bonded warehouses, which must be duly approved by Customs authorities and licensed by the Oil and Gas Regulatory Authority (OGRA).
One significant change is that the requirement for an Electronic Import Form or Financial Instrument has been waived, subject to compliance with specific policy guidelines. These guidelines pertain to the ‘import of crude oil and petroleum products on foreign suppliers’ account through customs bonded storage facility,’ as issued by the Petroleum Division. Additionally, quality testing clearance by the Hydrocarbon Development Institute of Pakistan (HDIP) is mandated, following the testing guidelines for petroleum products as notified by OGRA.
Furthermore, the new regulations outline that the transfer of crude oil and petroleum products from bonded facilities to local refineries and Oil Marketing Companies (OMCs) shall be governed by relevant provisions.
In a complementary move, the Ministry of Commerce has also issued another SRO concerning the re-export of crude oil and petroleum products.
The re-export of these products, which were initially imported on foreign suppliers’ accounts and stored in bonded facilities, will now be permitted without the need for an Electronic Export Form, Financial Instrument, Letter of Credit, or advance payment. This is contingent upon adherence to the stipulated policy guidelines.
These regulatory adjustments mark a significant step in facilitating the import and re-export processes for petroleum products, contributing to a more efficient and streamlined trade environment in Pakistan.
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