Import of Petroleum Products and Safety Requirements for handling Petroleum Cargo – Reg. - Customs - PUBLIC NOTICE No. 52 / 2024

Government of India Ministry of Finance Department of Revenue License No.: SQ/L-6000140.2 Telephone: 044 25230371 Email : [email protected] OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI II(IMPORT) CUSTOM HOUSE, NO. 60, RAJAJI SALAI, CHENNAI 600 001 F.No. CUS/AG/PN/27/2022-A/M DIN: 20241073MX000000E7AB Dated : 17-10-2024 PUBLIC NOTICE No. 52 / 2024 Subject : Import of Petroleum Products and Safety Requirements for handling Petroleum Cargo Reg. *********** Attention of Importers, Customs Brokers, and all other stakeholders is invited to the Petroleum (Amendment) Rules, 2024 notified by the Ministry of Petroleum and Natural Gas, G.S.R. 154(E), vide Notification dated 04.03.2024. Following discussion with the Petroleum and Explosives Safety Organization (PESO), which is the nodal agency for regulating safety of hazardous substances such as explosives, compressed gas and petroleum, the following guidelines are issued for all stakeholders including Importers Exporters, Terminal Authority, Customs Brokers (CBs), Shipping Liners/Agents, CFS s and all concerned with import/export and handling of petroleum products. 2. The Petroleum Rules, 2002 framed under the Petroleum Act, 1934 are only applicable to the petroleum products covered under the definition of petroleum given under Section 2 of the Petroleum Act, 1934. 3. Classification of Petroleum Products Petroleum is defined under Section 2(a) of the Petroleum Act, 1934 as: petroleum means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture (liquid, viscous or solid) containing any liquid hydrocarbon Further, Section 2(b) categorizes petroleum class A, B and C on the basis of flash point- petroleum Class A means petroleum having a flash-point below twenty-three degrees Centigrade petroleum Class B means petroleum having a flash-point of twentythree degrees Centigrade and above but below sixty-five degrees Centigrade; petroleum Class C means petroleum having a flash-point of sixty-five degrees Centigrade and above but below ninety-three degree Centigrade; 4. Containers and Storage Requirements In accordance with Rule 33 of the Petroleum Rules, 2002, the transportation of petroleum in bulk by water is restricted to vessels that have been duly licensed for such purposes by an officer appointed by the Central Government. The storage of petroleum within these vessels must comply with guidelines established by either general or special orders from the licensing authority, following consultation with the Chief Controller. 5. The storage and transportation of petroleum products classified as Class A, B, and C are permissible in containers defined by the Petroleum Rules, 2002, as amended. Specifically, Rules 5 and 6 delineate the specifications for containers used for petroleum products in these classes. Furthermore, Rule 4 mandates that containers exceeding one litre in capacity for Class A petroleum and those exceeding five litres for Class B or C petroleum must be of a type approved by the Chief Controller of Explosives. 6. In light of these regulations, the Petroleum and Explosives Safety Organisation (PESO) has clarified that flexi bags housed within standard 20/40 feet containers do not meet the definition of an acceptable container as per the Petroleum Rules, 2002. Consequently, PESO will not grant licenses or permissions for the transportation of petroleum products utilizing flexi bags in general purpose 20/40 feet containers. 7. Therefore, it is clarified that the petroleum products covered under the Petroleum Rules, 2002 framed under Petroleum Act, 1934 must be imported only in containers as specified under the provisions of the said Rules. 8. The objective of this Public Notice is to provide clarification on the specified matters. Importers, exporters, and all parties involved with petroleum products are expected to adhere to the existing Acts, Rules, and Guidelines applicable in this domain. Any difficulties in the implementation of this Public Notice, should be brought to the attention of the Deputy Commissioner of Customs, Group 1, Chennai Import Commissionerate (e-mail: [email protected]). 9. This Public Notice should be considered as Standing Order for the officers and staff implementing the aforementioned provisions. K S V V Prasad Commissioner of Customs, Chennai-II