FBR plans separate Customs Collectorate for fuel imports

KARACHI: The Federal Board of Revenue (FBR) plans to create a dedicated Customs Colectorate for the processing of liquefied natural gas (LNG), liquefied petroleum gas (LPG) and other liquids, as well as solid bulk cargo imports.

The Collectorate, namely, MCC Appraisement (Bulk) in Karachi, will deal with the cargo clearance of bulk petroleum products, edible oil, chemicals, LPG, solid bulk cargo imported via bulk terminals, including Fotco, ECTL, FAPS, PIBT, LNG terminals and edible oil terminals.

Fuel imports in Pakistan was reported at 22.54 per cent of the overall imports in 2020, according to the World Bank collection of development indicators, compiled from the officially recognised sources.

Pakistan has stepped up its oil and gas imports this year from last year, as the demand from its power sector increases, amid more economic activities, as coronavirus-induced restrictions are lifted.

So far in 2021 through September, Pakistan has imported at least 785,000 tonnes of fuel oil through tenders, up 52 per cent from what it imported last year.

The total imports of oil and refined fuels went up 24 per cent to around 10 million tonnes in FY21. The overall LNG imports rose 23 per cent to around 5.3 million tonnes in August this year, compared with the same period last year.

The FBR is creating several new collectorates to reduce the burden on the existing collectors and bring in further operational efficiency. And, more importantly, to accommodate newly-promoted officers.

An official said a separate collectorate, namely, MCC Appraisement SAPT is planned in Karachi, which would take care of all the matters relating to cargo clearance for imports, warehousing of goods in public and private binds and auction of goods.

Another collectorate, MCC Enforcement Rawalpindi is proposed having anti-smuggling and enforcement jurisdiction within the civil divisions of Rawalpindi, Sargodha and Islamabad Capital Territory.

Similarly, the proposed MCC Enforcement Quetta will have anti-smuggling and enforcement jurisdiction within the civil divisions of Quetta and Kalat.

The MCC Appraisement Gwadar, MCC Enforcement Turbat, MCC Enforcement Gujranwala, MCC Enforcement Bola and MCC Sukkur will also be created.