Through e-mail

PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION
PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi. Tel: 0092-21-34522769, 34522685, 34544765
Fax: 0092-21-34543774, E-mail: info@phmaonline.com   

Ref. No. PHMA/Cir-029/2021
Dated: 03^rd August , 2021

To: All Members of the Association (Southern Zone & Northern Zone)

EXPORT FACILITATION SCHEME 2021

Federal Board of Revenue has notified Rules for new Export Facilitation Scheme 2021 to reduce cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating Sales Tax refunds and Duty Drawback for the users of Scheme and shall attract more users and shall ultimately promote exports. This scheme will be effective with effect from 14^th August, 2021 and will run parallel with existing schemes like Manufacturing Bond, DTRE and Export Oriented Schemes for two year. The existing old schemes shall be phased out in next two years and will be fully replaced by Export Facilitation Scheme-2021.

Users of this Scheme will include Exporters (Manufacturers cum Exporters, Commercial Exporters, Indirect Exporters), Common Export Houses, Vendors and International Toll Manufacturers. Users of this Scheme shall be subject to authorization of inputs by the Collector of Customs and Director General Input Output Organization (IOCO). Inputs include all goods (imported or procured local) for manufacture of goods to be exported. These include raw materials, spare parts, components, equipment, plant and machinery. No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero rated. Through this new Scheme Common Export House will import inputs duty and tax free for subsequent sale to the authorized users especially SMEs. This Scheme has also allowed International Toll manufacturing within Pakistan. Under the said scheme, minimum but necessary documentation and securities based on category and profile of the applicant, user or exporter will be required. This scheme will encourage new entrants and SMEs. This Scheme will be completely automated under WeBOC and PSW where users of the Scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems. The focus of the Scheme is on post clearance compliance checks and audits. Under this new Scheme, authorization and utilization period has been enhanced from two years to five years.

Notification SRO No.957 (I)/2021 dated 30.7.2021of the Export Facilitation Scheme 2021 announced by FBR is attached herewith for information and record.

Regards,

M Jawed Bilwani            Riaz Ahmed                     Tariq Munir                  Faisal Mehboob Sheikh

Chief Coordinator           Central Chairman           Chairman (SZ)               Chairman (NZ)