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Exporters can import raw materials duty-free | The Express Tribune

ISLAMABAD:

The Federal Government has decided to conditionally allow exporters of goods to import raw materials, machinery and equipment without paying duties and taxes under the Export Facilitation Scheme.

Exporters will have to obtain approval from the Collector for import of raw materials, machinery and equipment. They will be able to import machinery and equipment worth up to 50% of the annual value of exports.

In order to import raw materials for export contracts worth more than $1 million, approval from the Chief Collector must be obtained.

According to a document available with The Express Tribune, the Federal Board of Revenue (FBR) has introduced amendments to customs rules to allow exporters of goods to conditionally acquire raw materials, machinery and equipment under the scheme export facilitation without paying duties and taxes.

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In this regard, the FBR has prepared draft Customs Rules and published it for feedback from stakeholders. All stakeholders can submit their views and objections within 15 days. Subsequently, the amended rules will be implemented through a notification.

The Export Facilitation Program was introduced in 2021. Some changes are now being made to the program.

Under the amendments, exporters who have never benefited from an export financing program or who have not exported under an export program, and if they plan to export goods for the first time under this program, will be allowed to import raw materials, machinery and equipment without paying duties and taxes for manufacturing export goods.

Published in The Express Tribune, March 30th2024.

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