Karachi, March 21, 2023 (PPI-OT): Mr. Shabbir Mansha, Vice President FPCCI, has apprised the business, industry and trade community of Pakistan that, with effect from 14th August 2023, all prior SROs pertaining to export facilitation will be replaced by one comprehensive Export Facilitation Scheme (EFS) 2021 – which came under effect under SRO. 957 (i) / 2021.
Mr. Mansha reiterated FPCCI’s stance that customs procedures must be streamlined and simplified for greater awareness, trade-friendliness, compliance and encouraging exporters through facilitation and creating enabling environment – whereas, EFS 2021 is currently running parallel to other schemes, e.g. Manufacturing Bond, DTRE and Export Oriented Unit.
Mr. Shabbir Mansha noted that EFS entails remission of import duty, sales tax, FED and WHT on acquisition through import and local purchase of raw materials; as well as, plant, machinery, equipment and spares required for the manufacturing of goods meant for export. Domestic sale of output goods allowed under EFS would be up to 20 percent on payment of duty and taxes on assessed value of finished goods, he explained.
Mr. Shabbir Mansha, however, demanded the customs officials to iron out the teething problems before the full-fledged implementation of the EFS. We have also asked all chambers and associations; which come under the umbrella of FPCCI to share their concerns and feedback – so that, we can raise them with the officials, he added.
Mr. Jamshed Ali Talpur, Collector of Customs (Exports) for Karachi, explained that under EFS, regulatory functions have been assigned to Customs Collectorates, IOCO / EDB and PCA; while, territory-based jurisdiction has been assigned to Collectorates. Additionally, address of business place for commercial exporters and manufacturing units will be determined by Regulatory Collectorate.
Mr. Talpur further added that applications of all existing users of DTRE, MB, EOU, having IOR/wastage already determined will be processed by the Regulatory Collectorate. Application of new entrants are referred to IOCO for determination of input-output ratio and production capacity for uploading quota in the WeBOC or PSW. In case of delay beyond 30 days, the system shall automatically grant authorization for acquisition of input goods, as per application, on provisional basis, he added.
Mr. Jamshed Ali Talpur, Collector of Customs (Exports) for Karachi, highlighted that EFS is admissible to manufacturers for direct or indirect exports; commercial exporters; international toll manufacturers and common export houses as well. Scope of the term ‘export’ has been broadened in EFS and supply in Pakistan against international tender defined as export, he added.
For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/