As part of the updated Export Facilitation Scheme-2021, exporters are now expected to submit information on their export performance over the last two to three years as well as a summary of the foreign exchange they have earned.
The Federal Board of Revenue (FBR) made significant changes to the Export Facilitation Scheme-2021 for exporters on Thursday. Customs Rules 2001 have been modified by the FBR through an SRO.917(I)/2023 that was released on Thursday.
Any applicant or exporter wishing to use the service may submit an online application to the Regulatory Collector.
The application must be accompanied by information on the export performance over the previous two or three years, depending on the situation, as well as a summary of any foreign exchange profits made through the use of electronic forms.
FBR Defined Online Market Place With the Updated Scheme
In accordance with the updated scheme, the FBR has defined “online market place” as an electronic interface, such as a marketplace, e-commerce platform, the web portal, or equivalent device, that makes it easier to export products, including those exported by third parties.
The FBR has also updated the process for exporters to engage in global toll manufacturing. The user must now submit an I-Form with a zero remittance value for input products that have been officially approved by the relevant authorized dealer.
The system shall, as the case may be, debit the importer’s revolving insurance guarantee balance or accept the compensation bond and post-dated cheque for an amount equal to the duties and taxes applicable to the imported products at the time of import.
In accordance with the reported input output ratios and wastages, the Regulatory Collectorate shall issue an analysis certificate within three days of the user’s application, provisionally, pending final determination or modification by IOCO or EDB, as the case may be.
The Regulatory Collectorate may grant the user’s request for a quantity equal to the producing or manufacturing unit’s full capacity on a provisional basis.
However, by the time IOCO or EDB, as the case may be, calculates output and input ratios, up to 50% of the quantity may be permitted to be used.
The sale or transfer of plant, machinery, equipment, and apparatus from one EFS user to another EFS user may be permitted by the Regulatory Authority upon filing of an application by the EFS user.
If both units are located in separate Collectorates, the sale or transfer may still be permitted as long as the destination Collectorate issues a no objection certificate.
Any indicated sale or transfer must be accompanied by a security and compensation bond for the balance of the term as specified in Appendix-Vl, which must be deposited at the time of import.
A certificate stating that the sale or transfer of the plant, machinery, equipment, or apparatus was completed in accordance with the prescribed procedure must be provided by the EFS user to the appropriate Collectorate after the sale or transfer, according to the FBR. This procedure also applies mutatis mutandis in the event of a merger or acquisition of EFS users.
To read our blog on “Pakistan likely to enhance pharma exports to $5 bn by 2030,” click here.
