ISLAMABAD, Feb 7 (ABC): The Federal Board of Revenue (FBR) has proposed amendments to the Customs Rules to streamline the Export Facilitation Scheme (EFS), improve operational efficiency and strengthen regulatory oversight of importers and exporters, according to an official document available with Wealth Pakistan.
The draft amendments, issued under S.R.O. 211(I)/2026, aim to simplify procedures for export-oriented businesses while tightening compliance and accountability within Pakistan’s export regime.
Officials say the changes will make the Export Facilitation Scheme clearer and more efficient. At the same time, they will ensure better monitoring of duty-free imports linked to export production.
Shift from utilization to authorization
Among the key proposals is a significant revision to Rule 875.
Under the amendment, the word “utilization” will be replaced with “authorization.” This change signals a shift in the regulatory approach to input goods used in export manufacturing.
According to the document, the new wording will clarify approval procedures for companies operating under the EFS. As a result, exporters will follow a more structured authorization process before using imported inputs for production.
Officials believe this step will reduce ambiguity and improve transparency.
New conditions for duty-free imports
In addition, Rule 878 will introduce a new sub-rule (5) that sets clear conditions for exporting goods under the scheme.
The proposed provision will allow users to import duty-free goods based on the value of input materials already consumed in export production. However, the total value must remain within the limits prescribed under existing rules.
This measure aims to align duty-free imports more closely with actual export performance. Consequently, authorities expect better tracking of raw material usage and reduced misuse of concessions.
Stronger compliance requirements
The amendments also propose updates to acquisition procedures for International Operating Companies (IOCs) and Importers or Exporters (IOREs).
These changes will reinforce compliance requirements for both imports and exports. Moreover, they will standardise documentation and monitoring practices across the supply chain.
Officials say stricter compliance will protect revenue while facilitating genuine exporters.
Faster dispute resolution
Meanwhile, Rule 879 will introduce a new clause requiring appeals to be filed with the relevant Chief Collector within 30 days of issuance.
The move seeks to ensure quicker resolution of export-related disputes. By setting a clear deadline, authorities aim to reduce delays and provide faster decisions for businesses.
Exporters have long called for speedier dispute settlement to avoid disruptions to shipments and cash flows.
Simplified procedures for exporters
Another proposed change relates to Rule 887.
The FBR plans to remove the phrase “after expiry of utilization period.” Officials say this step will simplify the regulatory framework and provide clearer guidance to exporters.
By eliminating complex wording, the amendment is expected to make compliance easier and reduce interpretation issues.
Stakeholder feedback invited
The FBR has invited stakeholders and the general public to submit objections or suggestions within seven days of the notification’s publication.
After reviewing feedback, the board will finalise the amendments.
Officials say the proposed reforms aim to improve clarity, efficiency and regulatory certainty. Ultimately, they expect the revised Export Facilitation Scheme to support Pakistan’s export growth and make it easier for businesses to compete in international markets.