The ICC Banking Commission conducted its final meeting of 2024 virtually via Teams on 20-21 November. Four separate portions of the event open to Banking Commission members and ICC National Committee representatives took place.
In a move aimed at easing pressures on foreign exchange reserves, Pakistan is designing a bonded bulk storage policy for crude oil and petroleum products whereby foreign suppliers will be allowed to procure the products from the international market and store them in bonded bulk storages in Pakistan ports.
Under the proposed policy, according to The News International, a foreign supplier would establish a subsidiary company (the Consignee) registered in Pakistan and having a bank account subject to relevant Pakistani laws/rules for undertaking business activities on behalf of foreign supplier and local purchasers. The Consignee would be required to develop its own dedicated infrastructure for storing crude oil and petroleum products and be licensed by Pakistan’s Oil & Gas Regulatory Authority. The Consignee would then be permitted to sell goods to Pakistan-licensed purchasers against LCs through scheduled banks without requiring LC confirmation by international banks or advance payment.
To sell the bonded goods, the Consignee would file an Electronic Import Form (EIF) with a goods declaration for ex-bonding to clear the bonded goods for custody transfer to local purchasers on payment of all applicable duties and taxes by the Consignee on behalf of purchasers.
