Exporters can import raw material duty free
According to the FBR report, the worth of 39 importers was just Rs14.7 billion but they imported Rs201 billion worth of goods. photo: file
The federal government has decided to conditionally allow goods exporters to import raw material, machinery and equipment without paying duties and taxes under the Export Facilitation Scheme.
Exporters will have to obtain approval from the collectorate for the import of raw material, machinery and equipment. They will be able to import machinery and equipment worth up to 50% of the annual export value.
In order to import raw material for export contracts worth more than $1 million, the approval of the chief collector must be taken.
According to a document available with The Express Tribune, the Federal Board of Revenue (FBR) has introduced amendments to the Customs rules to allow goods exporters to conditionally procure raw material, machinery and equipment under the Export Facilitation Scheme without paying duties and taxes.
Read PM announces incentives for top exporters, taxpayers
In this regard, the FBR has prepared a draft of Customs rules and released it for feedback from stakeholders. All stakeholders can submit their views and objections within 15 days. Later, the amended rules will be implemented through a notification.
The Export Facilitation Scheme had been introduced in 2021. Now, some amendments are being made in the scheme.
Under the amendments, the exporters who have never benefited from an export financing scheme nor have they exported under an export scheme, and if they are going to export goods for the first time under the scheme, they will be allowed to import raw material, machinery and equipment without paying duties and taxes for the manufacturing of export goods.
Published in The Express Tribune, March 30th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.