The Federal Board of Revenue (FBR) has tightened Export Facilitation Scheme for the new exporters and placed strict conditions for purchasing duties and tax free input goods used in export products.
The FBR issued SRO.456(I)/2024 on Friday to proposed amendments in the Customs Rules, 2001.
Under the amended Export Facilitation Scheme, the FBR has issued a procedure for the acquisition of input goods without payment of duty and taxes by the new exporters.
The revised rules have declared that where the applicant has no previous export history, the firm contract shall be allowed subject to detailed scrutiny by the Regulatory Collectorate including but not limited to financial viability, production capacity and history of local supplies and mandatory approval of the Chief Collector for all firm contracts above $1 million.
However, where the applicant has firm contract and submits a bank proof of advance payment, the Regulatory Collector after detailed scrutiny’ may grant authorization at his own without referring the case to Chief Collector.
Under the amended rules, the “manufacturer” includes any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product, the new rules added.
