1. The Petroleum (Amendment) Rules, 2024 have been 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 twenty-three 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
As per Rule 33 of Petroleum Rules, 2002, petroleum in bulk shall not be carried by water, except in a ship or other vessel licensed for the carriage of petroleum in bulk by an officer appointed by the Central Government in this behalf and the petroleum shall be stored in such part of the ship or other vessel and in such manner as may be approved by general or special order by the licensing authority after consultation with the Chief Controller.
Storage and transportation of Class A, B and C petroleum products is allowed in containers as defined in the Petroleum Rules, 2002 as amended. Further, Rule 5 and Rule 6 of the Petroleum Rules, 2002 provide the specifications of the containers for Petroleum Class A, B & C products. As per Rule 4 of the Petroleum Rules, 2002, Containers exceeding one litre in capacity for petroleum Class A and five litres in capacity for petroleum Class B or petroleum class C, shall be of a type approved by the Chief Controller.
5. In light of the above mentioned rules, PESO has clarified that flexi bags fitted in general purpose 20 feet containers are not covered under the definition of container falling under Petroleum Rules, 2002. Further, Petroleum and Explosives Safety Organisation (PESO) is not giving any license/permission for transportation of petroleum products in flexi bags fitted in general purpose 20 foot containers.
6. 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.
7. It may be noted that the objective of this Public Notice remains limited to the clarification given above and Importers/Exporters and all concerned with petroleum products in any way shall remain bound by the various other Acts/Rules/Guidelines in place. Any difficulty noticed in the implementation of this Public Notice may be brought to the notice of the Principal Commissioner of Customs, Customs House, Mundra.
Sd/-
K. Engineer
Principal Commissioner of Customs
Custom House, Mundr