FBR set to revise export facilitation scheme to curb revenue leakages

The Federal Board of Revenue (FBR) is set to introduce key amendments to the Export Facilitation Scheme (EFS) 2021 to prevent revenue losses and tighten controls on duty-free imports. 

One of the major revisions includes withdrawing the EFS facility from iron and steel scrap importers.

The changes, recently approved by the Economic Coordination Committee (ECC) of the Cabinet, aim to enhance regulatory oversight without disrupting compliant exporters. 

The amendments include reducing the input utilization period, aligning input authorization with production capacity and input-output ratios, replacing insurance guarantees with bank guarantees, and strengthening vendor facilitation controls.

Additionally, the new policy will introduce sampling mechanisms to verify the use of imported raw materials in export goods, ensuring compliance with declared usage. The FBR is expected to issue a statutory regulatory order (SRO) once the Cabinet formally approves the amendments in its upcoming meeting.