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ISLAMABAD, (MANEND NEWS): Federal Board of Revenue (FBR) has
notified Rules for new Export Facilitation Scheme 2021 which will be
effective with effect from 14th August, 2021. New Export Facilitation
Scheme has been approved by Federal Government and passed by
Parliament under Finance Act 2021.
This Scheme will run parallel with existing schemes like Manufacturing
Bond, DTRE and Export Oriented Schemes for two year. The existing
old schemes shall be phased out in next two years and will be fully
replaced by Export Facilitation Scheme-2021. EFS 2021 Rules can be
accessed at official website of FBR. Users of this Scheme will include
Exporters (Manufacturers cum Exporters, Commercial Exporters,
Indirect Exporters), Common Export Houses, Vendors and
International Toll Manufacturers. Users of this Scheme shall be subject
to authorization of inputs by the Collector of Customs and Director
General Input Output Organization (IOCO). Inputs include all goods
(imported or procured local) for manufacture of goods to be exported.
These include raw materials, spare parts, components, equipment,
plant and machinery. No duty and taxes shall be levied on inputs
imported by the authorized users and local supplies of inputs to the
authorized users shall be zero rated. Through this new Scheme
Common Export House will import inputs duty and tax free for
subsequent sale to the authorized users especially SMEs. This Scheme
has also allowed International Toll manufacturing within Pakistan.
Under the said scheme, minimum but necessary documentation and
securities based on category and profile of the applicant, user or
exporter will be required. This scheme will encourage new entrants
and SMEs.
This Scheme will be completely automated under WeBOC and PSW
where users of the Scheme and regulators (IOCO, Regulator Collector,
PCA etc.) shall be integrated through WeBOC and PSW and
communicate through these systems. The focus of the Scheme is on
post clearance compliance checks and audits. Under this new Scheme,
authorization and utilization period has been enhanced from two years
to five years It is expected that Export Facilitation Scheme 2021 shall
reduce cost of doing business and cost of tax compliance, improve
ease of doing business, reduce liquidity problems of exporters by
eliminating Sales Tax refunds and Duty Drawback for the users of
Scheme and shall attract more users and shall ultimately promote
exports.