PARCO faces Customs action over alleged bonded petrol clearance violations: report

Pakistan Customs has issued a show-cause notice to Pak Arab Refinery Limited (PARCO) over alleged violations in the delivery of bonded petroleum products from its public bonded warehouse in Faisalabad, according to a news report. 

The notice asks PARCO to explain why its Public Bonded Warehouse Licence No. 04/BWH/PUB/2000 should not be cancelled under Rule 344 of the Customs Rules, 2001.

PARCO operates the public bonded warehouse on Jhumra Road, Faisalabad, under a licence issued under the Customs Act, 1969.

As the warehouse licensee, the company is required to verify Ex-Bond Goods Declarations (GDs) through the WeBOC system before releasing bonded goods.

It is also required to obtain approvals for transfers between bonded warehouses.

According to the notice, Customs alleged that between January 1 and June 24, 2026, PARCO delivered around 23.81 million litres of Motor Spirit, or petrol, to Gas & Oil Pakistan Limited without verifying the required Ex-Bond GDs.

Customs also alleged that bonded fuel was delivered before the filing of Ex-Bond Goods Declarations and payment of applicable customs duties and taxes.

The notice said the alleged violations caused delays in the collection of government revenue and, in some cases, led to incorrect collection of the Petroleum Development Levy on the supplied petroleum products.

Customs said the alleged actions violated Sections 97, 99 and 116 of the Customs Act, 1969, which deal with the removal and delivery of goods from bonded warehouses.

PARCO has been directed to submit a written reply and appear through an authorised representative before Customs officials to present its defence.