FBR Tightens Monitoring of Export Scheme Under New Rules

The Federal Board of Revenue (FBR) has made it mandatory for exporters operating under the Export Facilitation Scheme (EFS) to submit a reconciliation statement every six months to customs authorities, under new rules issued through SRO 520(I)/2026.

Under the revised framework, exporters must provide details of input goods, exports, domestic sales, value addition and wastage within 30 days after the end of each six-month period.

The move is aimed at improving monitoring and transparency in the use of duty-free inputs.

The rules also allow exporters to import additional duty-free input goods if they have already utilized inputs in exported products before the prescribed utilization period, subject to limits set under existing customs regulations.

FBR has maintained that product descriptions and tariff classifications must remain consistent with previously approved input-output ratios, while such benefits will not apply if approvals from relevant authorities are pending.

The updated rules further provide a mechanism for appeals, allowing exporters to challenge decisions of the regulatory collector within 30 days, with cases to be decided within 20 days, strengthening oversight and compliance under the export scheme.