KARACHI: A seminar was organized by the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in collaboration with the Federal Board of Revenue (FBR) on new Export Facilitation Scheme 2021 (EFS 2021).
The export facilitation scheme was notified through SRO957(I)/2021 dated July 30, 2021.
The seminar was organized on Wednesday simultaneously at PHMA House, Karachi, Lahore, Faisalabad & Sialkot.
A large number of textile exporters participated physically at PHMA Offices and also joined this session online on Zoom and YouTube.
Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim and Moeen Afzal, Additional Collector, Model Collectorate of Customs (Exports) Port Qasim participated from Customs, Federal Board of Revenue to brief the salient features and registration process of Export Facilitation Scheme 2021 (EFS 2021).
Muhammad Jawed Bilwani Chief Coordinator & Former Central Chairman PHMA welcomed the Customs Officials at PHMA for this orientation seminar to enlighten the exporters about the main features of EFS and to answer questions asked by exporters.
Both are working closer like hands in gloves in order to facilitate the taxpayers and exporters. With the best efforts and productive proposals of PHMA, the FBR’s FASTER and WEBOC Systems have been improved and working efficiently and exporters are getting their refunds online smoothly and all credit goes to the then Member IR Operations & sitting Chairman FBR, Dr. Muhammad Ashfaq Ahmed, Member Customs Operations FBR Syed Muhammad Tariq Huda and their team who eliminated human intervention and brought automation and reforms in the FBR System to facilitate the exporters.
He also appreciated the Government’s initiative of the “Pakistan Single Window (PSW)” portal is to provide a single electronic platform for facilitating compliance with the regulatory regime for cross-border trade in Pakistan.
Bilwani assured that PHMA shall also extend complete support to Customs with regards to the implementation of EFS 2021. PHMA has also introduced EFS Help Desk at its RDA Cell to support member exporters.
Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim addressing the leading exporters stated that the FBR believes in maximum facilitation to exporters enabling them to enhance exports to ultimately benefit the country to earn foreign exchange. He apprised that the FBR has been continuously working to improve and develop the taxation system through reforms and automation.
In this connection, automation has been enhanced and public dealing has become limited particularly for the exporters. Introduction of export facilitation scheme 2021 is another milestone step from Customs to provide three scheme i.e. Export Oriented Unit, Manufacturing Bond, DTRE under a unified scheme which will benefit exporters particularly SMEs.
The new scheme is simplified wherein exporters can apply online without visiting Custom House. Focal Person shall also be appointed to promptly address the queries and maximize facilitation to exporters.
Moeen Afzal Additional Collector, Model Collectorate of Customs (Exports) Port Qasim gave a detailed presentation on the main feature of Export Facilitation Scheme 2021 wherein he informed that the new scheme will run parallel with existing schemes such as Manufacturing Bond, DTRE and Export Oriented Schemes for two years.
The existing old schemes shall be phased out in the next two years and will be fully replaced by Export Facilitation Scheme-2021. The EFS 2021 Rules can be accessed at the official website of the FBR.
The powers, functions and role of the Input-Output Coefficient Organisation (IOCO) under the new scheme has also been revised. The IOCO Director shall upload the value of input.
It is expected that the Export Facilitation Scheme 2021 will reduce the cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating sales tax refunds and duty drawbacks for the users of the scheme, and shall attract more users and shall ultimately promote exports. Inputs include all goods (imported or procured local) for the manufacture of goods to be exported.
These include raw materials, spare parts, components, equipment, plant, and machinery. No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero-rated.
Through this new scheme, Common Export House will import inputs duty and tax-free for subsequent sale to the authorized users especially SMEs. This scheme will encourage new entrants and SMEs.
This scheme will be completely automated under WeBOC and PSW where users of the scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems.
In the end, exporters asked several questions related to the new schemes which were answered by the Collector and Additional Collector, Model Collectorate of Customs (Exports) Port Qasim.