Amendments in the Customs Rules, 2001
GOVERNMENT OF PAKISTAN
(REVENUE DIVISION)
FEDERAL BOARD OF REVENUE
NOTIFICATION
(CUSTOMS)
Islamabad, the 2" April, 2024.
S.R.O. 56g (1)/2024.- In exercise of the powers conferred by section 219 of the
Customs Act, 1969 (IV of 1969), section 50 of the Sales Tax Act, 1990, section 40 of
the Federal Excise Act, 2005 and section 237 of the Income Tax Ordinance, 2001
(XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following
further amendments shall be made in the Customs Rules, 2001, which, as required
vide
under sub-section (3A) of the said section 219, were previously published
Notification No.S.R.O. 59(1)/2024, dated the 1' day of February, 2024, namely:-
In the aforesaid Rules, after Chapter-XLIV, the following new Chapter XLV
shall be added, namely:-
"CHAPTER XLV
PRELIMINARY
(1) These rules shall be called the
- Short title and commencement.—
Import, Domestic Sale and Re-export of Petroleum Products on Foreign Supplier's
Account under the Customs Bonded Facilities Rules, 2024.
(2) These rules shall come into force at once.
(1) These rules shall apply to international oil suppliers, in
,(j)V- 1125. Scope. —
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 ratified by the Federal Cabinet vide Case
No. 382/Rule-19/2023, dated the 28th June, 2023 and circulated by the Petroleum
Division, Ministry of Energy, vide letter No. PL-2(5)/2023-Bonded Storage dated the
July, 2023. The import, domestic sale, and re-export shall be regulated in terms of
7th
the Import Policy Order, 2022 as amended vide Notification No.S.R.O. 1259(1)/2023
day of September, 2023 and Export Policy Order, 2022 as amended vide
dated the 7th
Notification No. S.R.0.1260(1)/2023 dated the 7th September, 2023 and policy
directions by Petroleum Division and the State Bank of Pakistan (SBP).
The foreign supplier shall have the option to establish its own registered
(2)
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
Page 1 of 7
exchange remittances, pending its sale to local purchasers or its re-export therefrom
to other foreign countries.
(3) Where a foreign supplier or its subsidiary opts to store their imported
Petroleum products, imported under this scheme, in customs public bonded
warehouse, he will pay the warehouse rent, port dues and other service charges to the
licensee of customs public bonded warehouse, in foreign currency (US Dollars)
through banking channels. The foreign supplier or its subsidiary shall follow all the
instructions issued by the State Bank of Pakistan or Customs in this regard.
- Definitions.— In these rules, unless there is anything repugnant in the
subject or context,-
(a) "Act" means the Customs Act, 1969 (IV of 1969);
(b) "consignee" means the—
foreign supplier having its own registered business in
Pakistan. In case of its own dedicated storages, foreign
supplier shall have storage licensed by OGRA under the
Pakistan Oil (Refining, Blending, Transportation, Storage,
and Marketing), Rules 2016;
its subsidiary company registered as an importer and
exporter with FBR in Pakistan; and
having bank account(s) in Pakistan;
(c) "customs bonded warehouse" means a warehouse licensed as a
public warehouse under section 12 or as a private warehouse under
section 13 of the Act having the requisite storage facility duly
licensed by OGRA; and
(d) "petroleum products" means crude oil, motor spirit, or high-speed
diesel excluding petroleum products listed under Appendix-A of the
Import Policy Order in vogue, any sanctioned products and import
of POL products from sanctioned origin or entity.
- Procedure for customs clearance. — The following procedure shall
be followed for the import, domestic sale and re-export of petroleum products
by the consignee, namely:-
(a) procedure for import of petroleum products by consignee for
storage in customs bonded facilities shall be as under:—
(i) 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, as the case may be.
Page 2 of 7
The consignee shall not be required to attach a financial
instrument (Fl) with the GD at the time of in-bonding or ST,
as the case may be;
samples of the imported petroleum product shall be drawn and
referred to the Hydrocarbon Development Institute of
Pakistan (HDIP) for testing, analysis and confirmation of the
specifications in line with policy guidelines of sampling and
testing of petroleum products, issued by the Federal
Government and notified by OGRA. The Collector, where
required after recording reasons, may get the testing and
analysis of the imported product by any other approved
government lab;
The examination process shall be completed by the
appropriate customs officer as per the procedure in vogue after
duly verifying the quantity and specifications of the imported
goods;
thereafter, the assessing officer (AO) shall complete the
assessment of the GD as per law for subsequent IB in a
customs public or private bonded warehouse:
Provided the consignee has furnished adequate securities to
the Customs as per rule 1128; and
The provisions of Chapter XI of Customs Act, 1969 and rules
made thereunder shall remain applicable where no specific
provision is provided in these rules.
(b) sale of the petroleum products from the bond in the domestic
market by the consignee shall be as under:—
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 as
per the applicable provisions of the Import Policy Order
(IPO) and all other relevant regulations, guidelines, etc.,
contained in any other law for the time being in force;
sale and purchase of petroleum products between the
consignee and the Pakistani purchasers will be on a
commercial basis without any liability on the part of the
Federal Government;
in order to sell the bonded goods to the local purchaser, the
consignee shall file the GD for ex-bonding and shall also
provide the details of local buyer therein. The consignee shall
however attach financial instrument at the time of filing of
the ex-bond GD. The consignee shall also submit NOC to
assistant or deputy collector for change of ownership of
Page 3 of 7
goods stored in bonded warehouse in the form as set out in
Appendix-I; and
(iv) the consignee shall be responsible for payment of leviable
duty and taxes as per law and shall also comply with
applicable import policy conditions, restrictions and
limitations; and
(c) re-export of the warehoused petroleum products by the
consignee shall be as under:—
the consignee shall be allowed re-export of bonded
petroleum products as per export procedure in vogue subject
to fulfillment of conditions, restrictions and limitations as
envisaged in the Export Policy Order and any other law in
force;
the consignee shall inform the OGRA and oil companies
advisory council (OCAC) fifteen days in- advance prior to
filing of GD for the export of the bonded petroleum
products;
in order to monitor the import, the domestic sale and re-
export of the bonded products, the OGRA shall be provided
the online visibility of bonded petroleum products stored by
the consignee and the OMCs by the customs computerized
system (WeBOC);
the consignee or its authorized customs agent shall file the
GDs for re-export against the relevant into-bond GDs
through customs computerized system (WeBOC or PSW).
The export shall be allowed without any requirement of Fl;
samples shall be drawn from the storage tanks and forwarded
to Hydrocarbon Development Institute of Pakistan (HDIP)
Laboratories for analysis, in order to confirm that the goods
stored in the warehouse are the same as per declaration in
import GD. The Collector, for reasons to be recorded in
writing, may get the analysis done by any other lab;
at the time of re-export of the bonded products, the
specifications shall be verified at the respective bonded
warehouse in the light of GDs filed at the time of IB under
the supervision of in-charge assistant or deputy collector of
customs. After satisfying with the specifications of the
product, the re-export goods declarations shall be processed
and loading on vessel shall be allowed accordingly; and
the verification report to the effect that the goods have been
loaded on the vessel shall be fed into the system by the
concerned collectorate of customs (exports).
Page 4 of 7
- Securities by the consignee for petroleum products on foreign
supplier's account through customs bonded facilities at the time of IB.—
The assessing officer shall ensure that consignee has submitted securities
(1)
in the shape of postdated cheque and indemnity bond, as per requirement of
section 86 of the Act for warehousing of the goods.
(2) The securities furnished by the consignee under section 86 of the
Act at the time of warehousing of the goods, shall continue to be in force
notwithstanding the transfer of the goods to any other person or firm unless all
leviable duty and taxes including warehousing surcharge (if payable) on the
warehoused goods are paid or the bonded goods are re-exported to other foreign
countries, as the case maybe.
- Reconciliation of warehoused petroleum products on foreign
supplier's account through customs bonded facilities and its exports or
subsequent domestic sale.— (1) A consignee shall reconcile the import GD
after each transaction of domestic sales and re-export and submit the
reconciliation report online through computerized clearance system to the
concerned collector.
(2) The consignee (licensee of customs public or private bonded
warehouse) shall be responsible to provide logistics and means to customs staff
for their access to the bonded warehouse, as and when necessitated.
- Release of securities furnished at the time of IB petroleum
., --7.1----
products on foreign supplier's account through customs bonded facilities
and its exports or subsequent domestic sale.— (1) Upon completion of ex-
bonding of entire quantity of warehoused goods, on the basis of import GD,
whether upon clearance for local sale or re-export , the securities furnished to
the customs authorities in the shape of postdated cheque and indemnity bond
by the consignee at the time of import or warehousing shall be released and
returned to the consignee.
(2) The securities shall be released after reconciliation of the record
online.
- Unaccounted goods of a warehouse.— If any consignee or
licensee fails to provide proper account of the warehoused goods i.e. imported
goods, exported goods or goods cleared for home consumption to the
satisfaction of an officer of customs not below the rank of an assistant collector,
the consignee or licensee, as the case may be, shall pay on demand an amount
equal to the amount of all duty and taxes leviable thereon, as if they were
Page 5 of 7
imported and used for home consumption and shall also be liable to penalties
imposed for such violation under the Act.
- Short landing notice.— If any quantity of imported goods was
short-landed and not deposited in the warehouse, the licensee of a warehouse
shall submit the short landing or deposit of goods notice in writing to the officer
of customs, not below the rank of assistant collector, within a week from date
of warehousing of the goods or before filing the first ex-bond goods
declaration, whichever is earlier.
- Stock taking of goods lying in a warehouse.— An appropriate
officer of customs, authorized by the concerned assistant collector of customs,
shall conduct stock taking and detailed audit of a warehouse as and when so
directed but at least once in a year. The auditors shall specifically examine the
mandatory requirements of the scheme, availability of all prescribed records
and shall submit findings or report to the concerned Collectorate and a copy
thereof to the licensee for his records.
- Access to appropriate officer.— The consignee (in case of
imports) and the consignor (in case of re-exports) shall be responsible for
providing logistics from port and necessary means to ensure 24/7 access to
appropriate officer to the warehouse and any conveyance on which the goods
are to be exported, provided reasonable notice is given to the consignee to make
such arrangements.
- Responsibilities of the consignee.— The consignee shall be
M51/.r esponsible for the due receipt therein, delivery therefrom and safe custody of
the goods while deposited in warehouse in accordance to the quantity and
specifications declared to the customs.
Appendix-I
[see rule 1127(b)(iii)]
The Assistant/ Deputy Collector of Customs,
Collectorate of Customs
Subject: NOC FOR CHANGE OF OWNERSHIP OF GOODS,
STORED, DEPOSITED IN CUSTOMS PUBLIC BONDED
WAREHOUSE OF MIS ON FOREIGN SUPPLIER'S
ACCOUNT AGAINST GD FOR IN-BONDING BEARING
MACHINE NO DATED
Sir / Madam,
We M/s (foreign supplier / owner name) have
sold (quantity) out of total quantity
Page 6 of 7
.(description of goods), earlier deposited in
of
Customs Public / Private Bonded Warehouse / Terminal of
against Customs Goods Declaration (GD) for In-
M/s
dated .to M/s
bonding (IB) Machine No
(name of buyer) and received CFR price of the
dated
goods from them through LC No
(Name of bank with branch and city) BOR B
opened at
advance payment made through bank instrument reference
(with name of bank, branch and
No dated
city
We have therefore, no objection on transfer of the ownership of the above
quantity of goods, in the name of above said buyer. The buyer shall take
delivery of the goods from the above said customs public / private bonded
warehouse/terminal after duty and taxes are deposited by the consignee.
Signature:
Name:
Designation:
Contact No.
E-mail address:
VERIFICATION / AUTHENTICATION OF THE NOC BY THE
WAREHOUSE OWNERS / KEEPERS
We have received the above NOC from the foreign suppliers (owners), for
change of ownership of the goods currently stored in our public / private
bonded warehouse on the above said foreign supplier's account against
dated We do
customs Into-bond GD No
hereby confirm its genuineness.
Signature of licensee:
Name:
Designation:
PWL No.:
[C. No.10(2)L&P/2005(Pt)
Samad)
Secretary ( aw & Procedure)
Page 7 of 7