ISLAMABAD, November 29, 2024 – The Federal Board of Revenue (FBR) has reported that over 1,500 exporters are utilizing the Export Facilitation Scheme (EFS), enabling duty- and tax-free imports into Pakistan.
FBR officials highlighted that EFS has become the leading export-focused initiative, simplifying processes for exporters through single administrative documents, with particular emphasis on small and medium enterprises. Currently, more than 1,500 exporters are benefitting from this scheme.
Under the EFS, manufacturers-cum-exporters (users) must now pay sales tax on the procurement of locally sourced input goods used in finished products. According to SRO 1042(I)/2024, users can acquire input goods without customs duties, federal excise duties, sales tax, or withholding tax, based on their authorization. All such input goods must be retained within the user’s declared manufacturing premises.
The scheme allows the duty- and tax-free import of input goods through a Goods Declaration referencing the user’s authorization. However, local input goods must be procured with applicable sales tax, as per FBR’s statement.
Revised rules have further expanded the scope of EFS, enabling manufacturers-cum-exporters to import specific textile inputs within allocated quotas.
Additionally, the FBR’s report addressed measures to mitigate the shortage of petroleum products in the country. A new scheme was introduced for the import, domestic sale, and re-export of petroleum products on foreign suppliers’ accounts under customs bonded facilities. Operationalization involved rule notifications by the FBR in coordination with relevant ministries and stakeholders.
To address congestion at dry ports and reduce clearance times, the FBR has notified additional dry ports and Customs stations. These include Dry Port Jia Bagga, M/s Sky Media (Pvt) Ltd, Karachi, and M/s Seaboard Logistics (SMC-PVT) Ltd, Karachi. The Qasim Freight Station Off-dock Terminal Karachi has also been declared a customs station, along with an expansion of areas covered by existing customs facilities.
