The imports are made under the Advanced Licensing Scheme
Bangalore, Sept. 21
Mangalore Refineries and Petrochemicals Ltd (MRPL) has availed itself of customs duty exemptions for the current financial year for crude oil imports.
Speaking to presspersons, the Chief Commissioner of Customs, Ms Heera Radhakrishnan, said: "The customs duty payable by the ONGC-owned refinery on crude imports was Rs 299.18 crore till August this year. However, the imports were made under the Advanced Licensing Scheme against export obligations of petroleum products.
"This allowed the refinery to avail itself of customs duty exemptions against the exports obligations."
Ms Radhakrishnan said as a result, the effective customs duty realised from MRPL was only Rs 36.74 crore. This implied that the tax exemption got by the refinery was Rs 262.75 crore. Last financial year, the customs duty demand on the refinery was Rs 232.75 crore, though the customs revenue realised was only Rs 55.39 crore.
MRPL's exports are mainly gasoline, diesel, jet fuel and furnace oil.
For the current year, MRPL has signed up to supply the entire quantity of these products to the State Trading Corporation of Mauritius.
The contracted quantity is for supply of about one million tonnes of these products. MRPL's export earnings in the last fiscal was in excess of Rs 11,900 crore.
The customs exemptions and the high export earnings have partly helped the refinery to absorb the shocks of high international crude prices and maintain a healthy bottom line.