Abdul Ghani

The Federal Board of Revenue (FBR) has proposed amendments to the Customs Rules, introducing key revisions to the Export Facilitation Scheme (EFS) and the utilization of input goods for exports, according to a document available with Wealth Pakistan. The draft amendments, issued under S.R.O. 211(I)/2026, aim to enhance operational efficiency in the export sector while strengthening regulatory oversight of importers and exporters.

Among the proposed changes is a major revision to Rule 875, under which the word “utilization” will be replaced with “authorization,” signalling a shift in the regulatory approach to input goods used for export production. The move seeks to clarify approval procedures for export-oriented companies operating under the EFS. In addition, Rule 878 will introduce a new sub-rule (5) that sets out conditions for exporting goods under the scheme.

The provision will allow users to import duty-free goods based on the value of input materials already consumed in export production, provided that the total value remains within the limits prescribed under existing rules. Further amendments include updates to the acquisition procedures for International Operating Companies (IOCs) and Importers or Exporters (IOREs), reinforcing compliance requirements for both imports and exports.

A new clause under Rule 879 will also require appeals to be filed with the relevant Chief Collector within 30 days of issuance, aiming to ensure quicker resolution of export-related disputes. Meanwhile, Rule 887 will be streamlined by removing the phrase “after expiry of utilization period,” a step intended to simplify the regulatory framework and provide clearer guidance to exporters.

The FBR has invited stakeholders and the general public to submit objections or suggestions within seven days of the notification’s publication. The amendments will be finalized after incorporating feedback. Officials say the proposed changes are expected to improve clarity, efficiency and compliance, ultimately supporting Pakistan’s export growth under the EFS.

Credit: INP-WealthPk