By Our Correspondent

ISLAMABAD: Pakistan Customs has initiated legal proceedings against Pak-Arab Refinery Limited (PARCO) (PARCO) by issuing a show-cause notice over the alleged unlawful supply of more than 23.809 million litres of petrol, customs sources said on Saturday.

According to the sources, PARCO is accused of releasing petrol in violation of customs procedures by supplying the fuel without verification of the required Goods Declaration (GD). The notice further alleges that the company bypassed the WeBOC electronic customs clearance system before releasing the petroleum products.

The show-cause notice claims that the alleged violations caused the national exchequer to suffer losses worth millions of rupees in customs duties and taxes. It also points to alleged irregularities in the collection of the Petroleum Development Levy (PDL).

Customs authorities have further alleged that petrol consignments were transferred to other bonded warehouses without obtaining the legally required approvals, constituting violations of the relevant provisions of the Customs Act.

Sources said proceedings have also been initiated for the cancellation of PARCO’s Public Bonded Warehouse licence under multiple sections of the Customs Act.

The Faisalabad Customs authorities have directed PARCO to submit its written reply and present its defence before the competent authority within the stipulated timeframe.

If the allegations are established during the adjudication process, the company could face further legal action under the applicable customs laws, according to customs sources.

PARCO has not publicly responded to the allegations at the time of filing this report.