FBR issues draft insurance guarantee format for exporters under facilitation scheme

The Federal Board of Revenue (FBR) has released a draft Insurance Guarantee Format for exporters operating under the Export Facilitation Scheme, updating the framework first notified through SRO 957(I)/2021.

The draft outlines formats for both irrevocable and unconditional guarantees. Under the scheme, eligible users include manufacturers-cum-exporters, commercial exporters, indirect exporters, common export houses, vendors and international toll manufacturers.

According to the FBR, an insurance guarantee refers to a guarantee issued by an insurance company registered with the Ministry of Commerce and carrying a minimum “AA” rating from the Pakistan Credit Rating Agency.

Exporters can access the draft guarantee format on the FBR website for review and feedback.