The Federal Board of Revenue (FBR) has announced further amendments to its Export Facilitation Scheme (EFS), aiming to provide exporters with enhanced flexibility and clear procedures for duty-free import of input goods. The revisions, notified through SRO.211(I)/2026, introduce changes to the Customs Rules, 2001, and outline conditions for import eligibility tied to the utilization and export of output goods under the scheme.
Under the revised rules, if an EFS user has partially or fully utilized authorized input goods and exported the resulting output goods before the end of the utilization period specified in Rule 883, the system will permit the import of additional duty-free input goods equivalent to the value of input goods already incorporated into exported output goods. This allowance, however, cannot exceed the value pre-determined under the scheme and must match the description and PCT Codes of input and output goods as approved by the Input Output Coefficient Organization (IOCO) or the relevant Regulatory Collector.
The amendments clarify that any acquisition of input goods under this provision will not be permitted if the input-output ratios (IORs) have not been approved or are only provisionally approved by IOCO or the Regulatory Collector. This ensures that all duty-free imports remain consistent with established export productivity and compliance standards, preventing misuse of the facilitation scheme.
Furthermore, the revised rules introduce a clear framework for addressing disputes. Orders issued by the Regulatory Collector under these rules are now appealable to the relevant Chief Collector within thirty days of issuance. The Chief Collector is required to decide on the appeal within thirty days from the date of filing, ensuring timely resolution of issues while maintaining procedural transparency for exporters.
Officials at FBR noted that these amendments are part of a broader effort to streamline trade facilitation processes, reduce bottlenecks for exporters, and align Pakistan’s export incentives with international best practices. By linking duty-free import eligibility to actual export activity and approved input-output ratios, the revised scheme aims to provide predictable and measurable benefits to compliant exporters, while safeguarding against potential misuse.
The EFS plays a critical role in Pakistan’s export strategy, supporting manufacturers and exporters by reducing upfront costs of production inputs and promoting competitiveness in international markets. These latest revisions reflect the government’s ongoing commitment to improving trade infrastructure and creating an investor-friendly environment for export-oriented industries.
Experts believe that the appeal mechanism and stricter compliance requirements will increase transparency in the scheme and reduce administrative delays, allowing exporters to focus on production and market expansion. This update also underscores FBR’s focus on digitizing regulatory procedures and leveraging institutional oversight from IOCO and Regulatory Collectors to enhance accountability.
With Pakistan actively seeking to boost its export base and improve trade balances, the revised Export Facilitation Scheme is expected to support sustainable growth in manufacturing and export sectors, while providing a clear framework for both procedural compliance and strategic planning for exporters operating across the country.
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