Govt to allow OMCs to store POL products

Will amend customs rules to permit companies for build go-downs for storing petroleum products

ISLAMABAD:

The federal government has decided to allow government-owned and private, local and international oil marketing companies (OMCs) to build go-downs for storing petroleum products including liquefied natural gas (LNG) and lubricant products for exporting them to other countries.

To enable this, the Federal Board of Revenue (FBR) will amend the Customs Rules, 2001. According to available documents, the FBR has already shared the amended rules with the stakeholders for their input.

The FBR has asked the stakeholders to submit their proposals within 15 days.

These amended rules will be implemented through a gazette notification.

Under the proposed rules, the OMCs will be able to build go-down in the country for storing petroleum products and will be able to do transshipment of these products after receiving a license for the relevant collector customs or a competent authority appointed by him.

In this regard, the FBR has inserted the provision of the manufacturing bond, private bonded warehouse and public bonded warehouse. The OMCs owning these warehouses will also be able to import petroleum products. They will also be able to export these products under Custom Rules 363 and 363-F.

According to the proposed rules, on arrival of the imported petroleum product at a port, the relevant company will have to file a goods declaration (GD) through the WeBOC system while submitting all the other documents “as required by the 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 the POL [petroleum oil lubricant] products shall continue to be in force notwithstanding the transfer of the goods to any other person or firm…

“[However, this condition will not apply] if the warehoused POL  products are exported by way of supply to conveyances as provisions and stores as provided in section 106 of the Customs Act, without payment of any duties, taxes and levies, as the case may be,” the FBR’s notification said.