FBR Tightens Export Scheme Rules With New Amendments

The Federal Board of Revenue has put forward amendments to the Export Facilitation Scheme (EFS) through SRO 520(I)/2026, introducing stricter controls on duty-free imports by directly linking them to the actual utilisation of input goods in export production, as reported by Business Recorder.

Under the proposed regulatory changes, the import of input goods on a duty-free basis will be conditional upon their prior consumption in exported products. Exporters will only be permitted to import inputs duty-free to the extent corresponding to the value already incorporated into exported goods, subject to prescribed limits under the existing legal framework.

The revised provisions further mandate that the description and Pakistan Customs Tariff codes of both input materials and exported goods must strictly align with those approved under the terms of reference issued by the Input Output Coefficient Organisation or the relevant Regulatory Collector.

Additionally, the facility will not be extended in cases where such terms of reference have either not been approved or remain provisionally sanctioned by the competent authority. This measure is intended to ensure consistency between declared inputs and actual export outputs.

The amendments also introduce enhanced procedural compliance requirements. Exporters availing the scheme will be obligated to file reconciliation statements on a biannual basis, within 30 days of each reporting period, detailing input procurement, export volumes, domestic disposals, value addition, and wastage.

Furthermore, any determinations issued by the Regulatory Collector under the scheme will be subject to appeal before the Chief Collector within 30 days, with a mandatory decision timeline of 20 days from the date of filing.

These proposed amendments reflect a broader regulatory effort to strengthen oversight of duty-free import mechanisms and ensure adherence to export-linked compliance obligations under the scheme.