FBR tightens export facilitation scheme with new compliance rules

The Federal Board of Revenue has proposed amendments to the Export Facilitation Scheme (EFS) through SRO 520(I)/2026, tightening rules on duty-free imports by linking them directly to the utilisation of input goods in exports and introducing stricter compliance requirements for exporters, Business Recorder reported. 

The proposed amendments, issued through SRO 520(I)/2026, introduce conditions linking the duty-free import of input goods with prior utilisation in exported products. Exporters will be allowed to import duty-free inputs only to the extent of the value already used in output goods, subject to limits defined under existing rules.

The revised framework requires that descriptions and Pakistan Customs Tariff codes of both input and exported goods remain consistent with those approved under the terms of reference set by the Input Output Coefficient Organisation or the Regulatory Collector.

The rules specify that such facility will not be available where terms of reference are not approved or only provisionally approved by the relevant authorities. This condition aims to ensure alignment between declared inputs and actual exports.

The amendments also introduce procedural requirements for exporters. Users of the scheme will be required to submit reconciliation statements every six months, detailing input acquisitions, exports, domestic sales, value addition, and wastage, within 30 days of the reporting period.

In addition, any order issued by the Regulatory Collector under the scheme will be open to appeal before the Chief Collector within 30 days, with a decision required within 20 days of filing.

The proposed changes are part of efforts to strengthen monitoring of duty-free imports and ensure compliance with export-linked conditions under the scheme.