FBR Announces Key Amendments to Export Facilitation Scheme (EFS) 2021

The Federal Board of Revenue (FBR) is preparing to introduce significant changes to the Export Facilitation Scheme (EFS) 2021, aimed at preventing revenue losses and tightening oversight on duty-free imports.

One of the key updates is the removal of the EFS facility for importers of iron and steel scrap. These amendments, which have recently been approved by the Economic Coordination Committee (ECC) of the Cabinet, seek to improve regulatory controls while ensuring that compliant exporters are not negatively impacted.

Among the other revisions are a reduction in the input utilization period, aligning input authorization with production capacity and input-output ratios, and replacing insurance guarantees with bank guarantees. The new policy will also enhance vendor facilitation controls.

Furthermore, the policy will implement a sampling mechanism to verify that imported raw materials are being used as declared in the production of export goods. Once the Cabinet formally approves these amendments in its upcoming meeting, the FBR is expected to issue a statutory regulatory order (SRO) to enforce the changes.

SOURCE: The Profit Magazine Pakistan