The Federal Board of Revenue (FBR) has implemented significant measures to curb the misuse of the Export Facilitation Scheme (EFS) 2021 by iron and steel scrap importers.

Through SRO 204(I)/2025, the FBR has withdrawn the EFS facility from importers who were improperly importing car spare parts under the scheme. Several amendments have been made to EFS-2021 to address this issue.

Key Changes in EFS:

• Reduction in Input Utilization Period: The time allowed for utilizing input goods has been shortened, with an extension possible only under exceptional circumstances by a board-constituted committee.

• Input Authorization: Authorization will now be based on production capacity and input-output ratio.

• Replacement of Guarantees: Insurance guarantees will be replaced with bank guarantees.

• Vendor Facilitation Controls: New controls will be introduced to ensure proper vendor facilitation.

• Sample Withdrawal: Samples will be withdrawn to ensure imported inputs are used in the exported goods.

• Scrap Importers Affected: Importers of iron and steel scrap are specifically impacted by the withdrawal of the EFS facility.

Compliance and Authorization:

Applicants must comply with the Punjab Arms Rules 2023 and submit necessary documents for verification and digital record updates. The Regulatory Collector will ensure all compliance measures are met, and any non-compliant applicants may face suspension or cancellation of their authorization.

Process for Compliance:

The input goods acquired under these rules must be utilized within nine months, with possible extensions under exceptional circumstances. Users must file a declaration in the WeBOC system for supplies against international tenders or to exempt projects or sectors in Pakistan.

The FBR emphasizes the importance of completing the process within the given timeframe to ensure efficient record updates and maintain regulatory compliance.