Exporters can import raw materials duty-free

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 programme.

Exporters should obtain approval from the collective enterprise to import raw materials, machinery and equipment. They will be able to import machinery and equipment worth up to 50% of the annual export value.

For import of raw materials for export contracts worth more than $1 million, the approval of the Chief Collector must be obtained.

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

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In this regard, FBR has prepared draft customs rules and released it for feedback from stakeholders. All interested parties can submit their views and objections within 15 days. Later, the amended rules will be implemented through notification.

The export facilitation regime had been introduced in 2021. Now, some modifications are being made in the system.

According to the amendments, exporters who have never availed of an export finance scheme nor have exported under an export scheme and if they are to export goods for the first time under the scheme, will be allowed to import raw materials, machinery and equipment free of charge duties and taxes on the manufacture of export goods.

Published in The Express Tribune, March 30^u2024.

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