Petroleum crude

Petroleum crude oils from bituminous minerals

PESO CLEARANCE

HSN 2709 00 10 (Petroleum crude) is subject to Petroleum and Explosives Safety Organisation (PESO) licensing under the Petroleum Rules, 2002, administered by the Chief Controller of Explosives. Import is permitted only through ports and places approved by the Ministry of Shipping in consultation with the Chief Controller and declared as customs ports by the Commissioner of Customs.

What this is

HSN code

2709 00 10

Chapter

27 · Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes

Primary regulator

PESO · Petroleum Rules, 2002

Customs documentation

Import licence from PESO
Approved-port declaration to CBIC
Container compliance certificate from PESO

Applicable Partner Government Agencies

PESOPESO·Petroleum and Explosives Safety Organisation

Compliance steps

1
Obtain a licence from the Chief Controller of Explosives, Petroleum and Explosive Safety Organization (PESA), Nagpur, covering import, transport, and storage of the relevant petroleum class (Class A, B, or C) before the bill of entry is filed. The licence category must match the actual petroleum product being imported.
Petroleum Rules, 2002 · Chief Controller of Explosives, PESO (PESA), Nagpur
2
Route the consignment exclusively through a port or place approved by the Ministry of Shipping in consultation with the Chief Controller and declared as a customs port by the Commissioner of Customs. Diversion to an unapproved port renders the import unlawful under the Petroleum Rules, 2002.
Petroleum Rules, 2002 (port approval provisions)
3
Ensure all storage and transport containers conform to the specifications prescribed under Rules 4, 5 and 6 of the Petroleum Rules, 2002. Non-conforming containers are a standalone licence violation independent of any import-clearance defect.
Rules 4, 5 and 6 of the Petroleum Rules, 2002

A word of counsel

The most persistent error on this tariff line is misdeclaration of petroleum crude or its derivatives as low aromatic white spirit, hydrocarbon solvents, or Industrial Mixture Composition Plus (IMPS) to circumvent PESO licensing requirements. The Directorate of Revenue Intelligence has issued a specific alert on this pattern — DRI Alert Circular 02/2020-CI dated 23-04-2020 — and customs officers are sensitised to flag such descriptions; consignments detained on misdeclaration grounds face seizure and criminal liability under the Petroleum Rules, 2002.

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Frequently asked

Does HSN 2709 00 10 require BIS certification?

No, petroleum crude is not within any BIS Quality Control Order regime. Import is governed by the Petroleum and Explosives Safety Organisation under the Petroleum Rules, 2002, which mandates a licence from the Chief Controller of Explosives and restricts import to approved ports.

Which petroleum classes require a PESO licence for import under this tariff line?

Class A petroleum (e.g. petrol, hexane, toluene, naphtha), Class B petroleum (e.g. low aromatic white spirit, hydrocarbon solvents, HSD, kerosene, MTO), and Class C petroleum each require a licence from the Chief Controller of Explosives, PESO, Nagpur, under the Petroleum Rules, 2002.

What are the consequences if petroleum crude is misdeclared as a solvent or industrial mixture at the bill of entry?

Misdeclaration to evade PESO licensing requirements exposes the importer to consignment seizure, confiscation, monetary penalty, and criminal liability under the Petroleum Rules, 2002, with DRI Alert Circular 02/2020-CI dated 23-04-2020 specifically flagging low aromatic white spirit and IMPS as known misdeclaration vectors.

Last verified against gazette notifications: 2026-05-16. Source: PESO / Indian Customs CUSDATA.