Islamabad – The Federal Board of Revenue (FBR) has issued SRO 301(I)/2025, introducing significant amendments to the Export Facilitation Scheme (EFS) and modifying key aspects of the Customs Rules, 2001.
Under the newly issued SRO, the FBR has revoked the EFS 2021 facility for importers of iron and steel scrap. This decision is expected to impact a large segment of businesses that previously benefited from duty and tax deferrals under the scheme.
Additionally, the FBR has introduced changes to security requirements for availing the EFS facility. Manufacturing-cum-exporters with a minimum export value of $20 million or more over the last two years must now furnish an indemnity bond along with post-dated cheques (PDCs). Meanwhile, manufacturers-cum-exporters with export values below $20 million must submit an indemnity bond and PDCs equivalent to their average annual duty and taxes on input goods used in exports over the past two years. Any excess duty and taxes beyond this amount must be secured with a bank guarantee or revolving bank guarantee.
The FBR has also tightened compliance measures under the scheme. Users with poor compliance history—such as pending recoveries, contraventions, or criminal proceedings—will face immediate suspension of their authorization. Non-compliance in reconciliation statements or stock audits may also lead to suspension, reinforcing the FBR’s efforts to ensure proper usage of the EFS facility.
According to the revised procedure, the amendments in the EFS aim to reduce the input utilization period, authorize input allocation based on production capacity and input-output ratios, replace insurance guarantees with bank guarantees, strengthen vendor facilitation controls, and enforce stricter monitoring of imported input utilization in exported goods. Furthermore, the FBR has officially withdrawn the EFS facility for importers of iron and steel scrap to prevent misuse.
The FBR has set a utilization timeline for input goods acquired under these rules, requiring them to be used within nine months. In exceptional cases, an extension may be granted by a committee constituted by the board.
For supplies made against international tenders or to exempt projects and sectors within Pakistan, users must submit a declaration through the WeBOC system, ensuring transparency in transactions and adherence to regulatory compliance.
With these amendments, the FBR aims to enhance the efficiency and effectiveness of the Export Facilitation Scheme while addressing compliance concerns and maintaining fiscal discipline in the country’s trade policies.