Export Facilitation Scheme 2021: FBR imposes certain conditions on new exporters

ISLAMABAD: The Federal Board of Revenue (FBR) has imposed certain conditions on new exporters for acquisition of duties and taxes free input goods under the Export Facilitation Scheme 2021.

The FBR has proposed amendments in the Customs Rules, 2001 through an SRO 456(I)/2024 on Friday. According to the revised Export Facilitation Scheme, the FBR has issued a procedure for the acquisition of input goods without payment of duty and taxes by the new exporters.

Where the applicant has no previous export history, the firm contract shall be allowed subject to detailed scrutiny by the Regulatory Collectorate including but not limited to viability, production capacity and history of local supplies and mandatory approval of the Chief Collector for all firm contracts above US$1 million.

ECC asks MoC to review EFS in consultation with FBR

However, where the applicant has firm contract and submits a bank proof of advance payment, the Regulatory Collector after detailed scrutiny may grant authorization at his own without referring the case to Chief Collector.

Under the amended rules, the “manufacturer” includes any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product, FBR added.

Copyright Business Recorder, 2024