FBR Revises Duty Drawback Rates for Exporters from October 27

ISLAMABAD: The Federal Board of Revenue (FBR) has announced revised customs duty drawback rates for various export-oriented products, including textiles, garments, hosiery, carpets, blankets and other manufactured goods. The new rates took effect on October 27, 2026.

Through SRO 1908(I)/2026, the FBR has authorised refunds of customs duties paid on specified imported raw materials used to manufacture eligible goods for export. Issued under Section 21(c) of the Customs Act, 1969, the notification replaces the previous SRO 209(I)/2009, dated March 5, 2009.

Under the revised framework, exporters will receive duty drawback according to product-specific rates, generally calculated as a percentage of the free-on-board (FOB) value of exported goods. The notification identifies eligible raw materials, finished products, Harmonised System codes and applicable repayment rates.

Revised Rates for Cotton Products

For products made entirely from cotton, the FBR has set the drawback rate at 0.011% of FOB value for grey fabrics, 0.272% for grey ready-made garments and 0.497% for grey made-ups, including bedwear, curtains and table linen.

Bleached cotton fabrics qualify for a rate of 0.190%, while bleached ready-made garments and made-ups are eligible for 0.306% and 0.672%, respectively.

For dyed, printed or partially dyed cotton products, the rates stand at 0.450% for fabrics, 0.328% for ready-made garments and 0.573% for made-ups.

The notification also establishes classification rules for partially dyed or printed cotton fabrics and made-ups. Products with dyed or printed sections covering more than 25% but no more than 30% of their total surface area fall under the relevant provisions for partially processed products. If the treated area exceeds 30%, the goods are classified as dyed or printed products under the applicable schedule.

Polyester-Cotton Blended Products

The revised rates also cover textiles manufactured from polyester and cotton fibres.

Grey blended fabrics qualify for a drawback rate of 0.125%, while bleached fabrics receive 0.270% and dyed or printed fabrics 0.693%.

For blended garments, the rates are 0.249% for grey products, 0.441% for bleached products and 0.937% for dyed or printed products.

The applicable rates for blended made-ups are 0.146% for grey products, 0.326% for bleached products and 0.761% for dyed or printed products.

These provisions apply to eligible goods manufactured using polyester staple fibre and cotton fibre in varying proportions.

Rates for Polyester and Hosiery Products

Separate rates have been established for products manufactured entirely from polyester staple fibre. Grey polyester fabrics qualify for a drawback rate of 0.107% of FOB value, compared with 0.224% for bleached fabrics and 0.151% for dyed or printed fabrics.

For eligible hosiery products, the FBR has prescribed a rate of 1.784%. The category covers goods manufactured using specified imported materials, including nylon, elastic, dyes, processing chemicals, accessories and packaging materials.

The notification also includes separate repayment rates for textile products made from viscose, acrylic and other man-made fibres, depending on the raw materials used and the type of finished product.

Viscose, Acrylic and Blanket Exports

Under Schedule X, the drawback rate for yarn made entirely from viscose staple fibre or acrylic staple fibre has been set at 0% of FOB value.

Blankets manufactured predominantly from acrylic fibre qualify for a rate of 0.577%.

A higher rate of 4.955% applies to eligible acrylic blankets manufactured using acrylic, polyester and cotton yarn, provided the finished product contains at least 70% acrylic. Exporters seeking this rate must submit documentation demonstrating the use of imported acrylic yarn.

For sleeping bags, the prescribed drawback rate is 0.330% of FOB value.

Waterproof Fabrics, Tarpaulins and Tents

The revised schedules also cover waterproof and impregnated fabrics, canvas, tarpaulins, tents and related products.

Eligible waterproof and fire-retardant canvas cloth, tarpaulins and tents made entirely from cotton qualify for a drawback rate of 2.136% of FOB value.

Products made from polyethylene, including fabrics, sheets, tents, tarpaulins and related goods, are eligible for a rate of 0.962%.

Revised Rates for Carpets and Rugs

The FBR has also specified separate rates for carpets and rugs according to their materials and manufacturing methods.

Hand-knotted woollen carpets, rugs and runners qualify for a drawback rate of 0.301%, while machine-made woollen carpets receive 0.145%.

Hand-knotted silk carpets, including wool-silk blended varieties, qualify for a rate of 0.352%, provided they contain at least 10% silk noil yarn.

For wax-coated cotton or polyester-cotton yarn, the prescribed drawback rate is 0.003% of FOB value.

Deadlines and Documentation for Refund Claims

The revised framework sets specific deadlines for submitting customs duty drawback claims.

Exporters must apply to the relevant customs officer within 210 days of exportation or within 180 days from the realisation of foreign exchange, as recorded in the Bank Credit Advice issued in accordance with State Bank of Pakistan directives.

They must also declare their intention to claim duty repayment in the Goods Declaration filed under Section 131 of the Customs Act, 1969, and in other relevant export documentation.

The refund facility applies to specified imported raw materials used to manufacture eligible products that are subsequently exported from Pakistan.

The applicable repayment rates depend on the raw material, manufacturing process, finished product and tariff classification. Separate schedules establish the rates for different categories of exported goods.

The revised notification came into effect on October 27, 2026, replacing the previous framework governing customs duty repayment on eligible exports.