FBR to allow duty free import of raw material, machinery, equipment

This initiative aims to ease entry for new exporters, boosting the country's export growth

The federal government has revised its Export Facilitation Scheme, enabling goods exporters to import necessary raw material, machinery, and equipment without incurring duties and taxes, contingent upon specific conditions.

This regulatory change, aimed at stimulating the country’s exports, mandates exporters to secure authorization from the Collectorate for their imports.

Under the newly introduced amendments, the permissible import value of machinery and equipment has been capped at 50% of the exporter’s annual export valuation.

Moreover, for import contracts exceeding $1 million in raw material aimed at fulfilling export obligations, the chief collector’s sanction is requisite.

The Federal Board of Revenue (FBR) is at the forefront of this initiative, having drafted revisions to the Customs rules to encapsulate the aforementioned provisions.

This draft is currently in a public consultation phase, inviting feedback from various stakeholders over a 15-day period before the finalization of these amendments through official notification.

Introduced originally in 2021, the Export Facilitation Scheme seeks to further entice participation by offering exemptions to new entrants in the export market.

Exporters who have not previously utilized export financing schemes or participated in export incentives are now eligible to benefit from duty-free importation of raw materials, machinery, and equipment.

This move is designed to lower the entry barriers for new exporters, facilitating their contribution to the nation’s export growth.

The FBR’s latest adjustments are anticipated to invigorate the export sector, encouraging broader participation and enhancing the country’s export capabilities.

 

14 COMMENTS

  1. This is a beneficial scheme, please clarify what will the status of exporters who are already registered in EFS and availing benefit of EFS.

  2. Please also control the customs where they make problem for the exporters,they hold the shipments and argue with the exporters for bribe,and there is no way for the exporters to pay.

  3. There should be zero tolerance for people creating problems for making money. However, there should be strict check for people who try to exploit the procedure.

  4. You take the trouble to reduce duties and other taxes are constantly being pushed up. You must look at the costs involved in importing and/ or exporting and in general cost of doing business should be reduced if the export target has any chance. Look too at indigenous raw materials to be used for value added exports. Stop interfering in commerce. Bad policies will not give you anything except poverty. Get rid of incompetent people in the export chain of command. Thank you. Good luck

  5. ease on raw materials, components, machinery parts and technology will help to improve exports but Pakistans govt should train to people with advance production, quality enhancement , and to find new fields and market to export the technology, products and equipment.
    for that there should be an integrated and corruption free system and rebates to exporters .untill we never increase exports we can not manage the country with right way.
    we should establish a team of designers, marketers, engineers and govt machinery to produce world level products, we should welcome to internation investment by facilitating them .to create jobs in country to fight poverty and lake of skills.

  6. Sohail Zaman, i am not sure who are the people convincing the world investors to come and invest in Pakistan and on what basis? people looking for an opportunity to export could not fine the right platform and the people to go on and help economy. if you know pls contact @03344606699. Omer Usmany

  7. Hello
    export and import both should tax free…in fact this tax ruin this country…tax free states gain too much in economically…but i dont know why these politicians do not understand this aspect of economic boost….

  8. Raw materials, machinery and equipment are investment goods. Their duty free import must not be contingent upon exports and any other regulations. Such restrictions are counterproductive and entail corrupt practices.

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