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FBR Announces New Scheme for Duty/Tax Free Exports

The Export Facilitation Scheme-2021 was published by the Federal Board of Revenue (FBR) on Friday for all types of exporters, including manufacturers-cum-exporters and commercial exporters, allowing duty- and tax-free inputs/raw materials for exported items.

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The user of the Export Facilitation Scheme-2021 shall be permitted to sell up to twenty percent of output goods manufactured from input goods in the domestic market upon payment of leviable duty and taxes on filing of a Goods Declaration, which shall be assessed as if the goods are imported into Pakistan in that condition, subject to the Regulatory Collector’s satisfaction regarding the reasons for domestic sale.

The FBR has been separated into the following categories:

  • Category A: Manufacturers who have exported at least 60% of their entire annual output over the past two years.
  • Category B: Manufacturers/exporters who export less than sixty percent of their annual production.
  • Category C consists of Indirect exporters, commercial exporters, and international contract manufacturers. The categories B and C have additionally been subdivided.

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All existing users of any of the export schemes issued under SRO 4500) 2001 dated 18.06.2001 Chapter XV, DTRE, SRO 327(1)2008, dated 29.03.2008, prior to the issuance of these rules shall be eligible for classification under Category A and Cl, as applicable, provided they have a good compliance record.

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