Export Facilitation Scheme: Empowering SMEs and Expanding Tax and Import Benefits
Over 1,500 exporters are currently availing the duty and tax-free import facilities under the Export Facilitation Scheme (EFS), Federal Board of Revenue (FBR) has announced.
The Export Facilitation Scheme is intended to make export easier for SMEs. The procedure is simplified, and there is only one administrative document.
Key Changes to the Export Facilitation Scheme
The FBR has updated the EFS rules in a significant manner to assist manufacturers who also export goods. The most significant update is that these exporters will be required to pay sales tax on locally purchased input goods used for the production of finished goods. However, under the new SRO.1042(I)/2024, they can still import raw materials without paying customs duties, federal excise duties, sales tax, or withholding tax.
Expanding Opportunities for Textile Exporters
The updated EFS also makes it easier for textile exporters. Manufacturers can now import specific textile raw materials within set quotas without any duties or taxes. This will help increase production and support the textile industry in Pakistan.
Addressing Petroleum Shortages
A special plan has been introduced by the FBR to tackle petroleum shortages. The new rules allow importing, selling, and re-exporting petroleum products under customs-bonded facilities. This step is likely to ease pressure on the petroleum supply and help in smoother exports.
New Facilities for Easy Customs
The FBR has declared new facilities as customs ports to improve customs operations and reduce delays at dry ports. Among these are Dry Port Jia Bagga, M/s Sky Media (Pvt) Ltd, and M/s Seaboard Logistics (SMC-PVT) Ltd in Karachi. Moreover, the area of existing customs stations has been expanded, and M/s Qasim Freight Station Off-dock Terminal in Karachi has become operational. This would help to accelerate the export process and remove congestion at the ports.
Conclusion
The new Export Facilitation Scheme is an important move for boosting the exports from Pakistan. Now, the exporters, particularly SMEs, will be in a better position to increase their business volume and, in this way, contribute more towards the economy of the country. The supply issues have been addressed, and efforts to make the customs operation efficient are the added strengths to the export industry of Pakistan by FBR.
