FBR Introduces New Customs Bonded Facilitation Rules for Oil Sector

The Federal Board of Revenue (FBR) has introduced new Customs Bonded Facilitation Rules (CBFR), 2024, allowing the import of petroleum products for sale in the local market and re-export to other countries through foreign suppliers' accounts. This move aims to streamline the process for international oil suppliers operating in Pakistan.

Under the newly-notified rules, foreign suppliers have the option to establish their own business in Pakistan or operate through a subsidiary of a registered company. They can store crude oil and other petroleum products in customs bonded warehouses in Pakistan, with the flexibility to maintain inventory for local buyers or re-export without foreign exchange requirements.

Moreover, international oil suppliers can collaborate with a subsidiary of a registered Pakistani company, subject to the subsidiary's registration with FBR and possession of a local bank account.

These regulatory changes are expected to attract more foreign investment in Pakistan's oil sector, enhance supply chain efficiency, and promote competition among oil suppliers. The flexibility provided to foreign suppliers will facilitate smoother operations and contribute to the growth of the petroleum industry in the country.

The implementation of the CBFR, 2024, marks a significant step towards creating a more conducive environment for international oil suppliers in Pakistan. By simplifying import and re-export procedures, the government aims to boost economic activity in the oil sector and strengthen Pakistan's position in the global energy market.