Byco Petroleum is reportedly bringing oil to Pakistani markets; authorities mull stern action
ISLAMABAD- Due to the US sanctions on Iran, Pakistan does not formally purchase petroleum products from the neighboring country. However the Iranian oil makes its way to the Pakistani markets through different channels including smuggling as well as mis-declaration wherein the Iranian origin oil is branded as that of other regional countries.
According to the documents available with this correspondent, Byco Petroleum Company has been found involved in bringing the Iranian Crude Oil to the country through mis-declaration by changing Iranian origin shipments documents with that of other countries in the region.
The National Assembly’s Standing Committee on Finance was informed by the officials concerned the other day that Byco Petroleum Pakistan Limited imported six consignments declared to be 726,564 barrels of ‘Omani Blend Crude Oil’ in a vessel last year through Gaddani port. The importer filed six goods declarations and paid the Customs Duty amounting to Rs 246.188 million. As fifty percent of the cargo was discharged from the vessels and the remaining was still on board, the Model Customs Collectorate (MCC) Gwadar received an information regarding likelihood of mis-declaration of actual description and/or import origin in respect of the cargo. Subsequently, samples were drawn from the cargo by Hydrocarbon Development Institute of Pakistan (HDIP). The test samples of already discharged ship confirmed the origin of oil as that of Iranian.
On this, a contravention case has been framed against Byco Petroleum under Customs Act 1969. Currently, the case is sub judice before the Customs Appellate Tribunal Karachi.
Meanwhile, the Ministry of Energy has now revised the Standard Operating Procedure (SOP) wherein crude oil is being cleared after receipt of analysis report confirming declared chemical composition and origin of the oil from the authorized laboratory of HDIP. According to the Customs Department’s report, they have not cleared have not cleared any Iranian origin ship containing crude oil till date.
