The Korea Customs Service announced on July 29 that domestic petroleum products were exported after being blended in a bonded zone for the first time in the country.
Blending involves combining various petroleum substances to create a new petroleum product.
In January, the Customs Service, the Ministry of Trade, Industry, and Energy, and the National Tax Service revised related regulations to facilitate the blending and export process from comprehensive bonded zones, allowing refiners to receive VAT refunds promptly.
The exported product is a bio marine fuel, a blend of ultra-low sulfur fuel oil from HD Hyundai Oilbank and biodiesel from a domestic company.
HD Hyundai Oilbank plans to sell 60,000 tons of blended petroleum products annually as fuel for international merchant ships, equivalent to approximately 60 billion won ($43 million) in sales.
The company anticipates that by expanding sales to overseas petroleum brokers and foreign-flagged shipping companies, annual exports could reach 400,000 tons, valued at 400 billion won.