Lahore, February 21, 2024 – The Federal Board of Revenue (FBR) in Pakistan is set to expand its Export Facilitation Scheme (EFS) to encompass the entire textile value chain, according to Muhammad Sadiq, Chief Collector, Customs (Appraisement).
The announcement was made during an interactive session on exports and Customs-related issues with members of the All Pakistan Textile Mills Association (APTMA) on Wednesday.
A committee of stakeholders has already been formed to facilitate the extension of the EFS, ensuring that the entire textile industry benefits from the export promotion initiative. The Chief Collector, accompanied by key officials including Ms. Azmat Tahira and Ms. Nazia Saleem, reassured APTMA of the FBR’s commitment to resolving any issues related to the EFS and other Customs procedures.
During the session, the Chief Collector emphasized the pivotal role of exports, particularly in the textile sector, and pledged to address the genuine concerns raised by APTMA. He highlighted the need to moderate Valuation Rulings and promised to prioritize this matter. He affirmed that the FBR would work towards the removal of irritants in the scheme, facilitating smoother export processes for the country’s textile industry.
Kamran Arshad, Chairman of APTMA (North), welcomed the announcement but also raised concerns. He pointed out that raw materials imported under previous schemes have yet to be reflected in the EFS system, urging immediate attention. Arshad highlighted the prolonged audits, pending release of PDCs/Guarantees, and the financial burden on exporters due to delays in obtaining new quotas.
Arshad also addressed the issue of tax and duty deductions, urging correction at effective rates as per FBR rulings. He proposed automatic issuance of Importer of Record (IORs) and Analysis certificates based on ratios determined in Textile Notes. Arshad advocated for the elimination of manual processing of consignments, stressing the importance of stopping manual submission of documents to expedite the process.
The Chairman raised concerns about the unlawful application of valuation rulings on EFS and exports, causing unnecessary delays. He emphasized the need to align the expiration of the PSW ID with the corresponding period of EFS, suggesting it be extended to three to five years. Additionally, he highlighted shortcomings in the WEBOC module, calling for corrections to address issues related to local invoice sale/purchase returns.
In conclusion, the announcement by the FBR to extend the EFS to the entire textile value chain reflects a positive step towards boosting the country’s exports. The commitment to address the concerns raised by APTMA demonstrates the government’s dedication to creating a conducive environment for the growth of the textile industry and the overall economic prosperity of Pakistan.
