Pakistan’s tax authority, the Federal Bureau of Revenue (FBR) has announced the draft EFS Regulation (EFS) for 2021, which will take effect on August 14 to facilitate Export Oriented Units.
The new system, Export Facilitation Scheme(EFS) has been approved by the federal government and approved by parliament under the 2021 Finance Act. This scheme works in parallel with existing schemes such as Manufacturing bond , DTRE and other export-oriented two-year schemes.
The old systems will be phased out over the next two years and will be completely replaced by the new system, the rules of which will be available on the official FBR website.
The new EFS 2021 contains few documents and encourages new entrants and SMEs. The users of this scheme are manufacturers, commercial exporters, indirect exporters, joint export companies, traders, and international customs manufacturers licensed by the customs collector and the Director-General of the Input / Output Organization (IOCO).
Resources include all goods that are imported or purchased locally to produce exported goods. These include raw materials, spare parts, components, equipment, devices, and machinery.
Resources imported by authorized users are free of duties and taxes, and zero-entry is applied to the internal supply of resources to authorized users.
Through this new system, Exporters will be allowed to import raw materials free of duties and taxes for subsequent sale to authorized users, in particular small and medium-sized enterprises.
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