ISLAMABAD: The government has extended the utilisation period from nine months to 18 months to allow exporters more time to use imported zero-duty, tax-free inputs under the Export Facilitation Scheme (EFS), thereby easing cost pressures and supporting export growth.

The decision followed recommendations of a technical committee headed by Minister of State for Finance Bilal Azhar Kayani. The committee, which included representatives from the private sector, recommended the proposed policy changes unanimously.

The Federal Board of Revenue (FBR) has issued customs notification SRO528 of 2026 to amend the Customs Rules 2001, replacing the earlier nine-month utilisation limit with 18 months, effective from March 7, 2025.

Mr Azhar said on his X handle that under the revised framework, exporters can now import inputs duty-free and utilise them within the extended period.

Move meant to support exporters facing financial and production constraints

The longer timeframe is expected to reduce financial strain on exporters, particularly small and medium enterprises, which often face working capital constraints and production cycle delays, he added.

The committee reviewed historical EFS data and benchmarked utilisation periods against regional peers before reaching its recommendations, the minister said.

Prior to the policy change, a total of 7,932 Goods Declarations of EFS users for input goods had exceeded the permitted nine-month utilisation period. Following the extension to 18 months, all such GDs are now eligible for export under the scheme, he said.

The committee also introduced two additional facilitation measures. First, automatic replenishment of the security deposit has been allowed to the extent of goods consumed and exported, reducing processing time. Second, EFS users have been granted the right to appeal before the Chief Collector against orders issued by the regulatory collector within 30 days, with decisions to be made within that period.

According to the notification, in addition to the extended utilisation period, the rules provide for a further extension of six months beyond the 18-month limit, to be granted by a committee on a case-by-case basis.

To strengthen oversight, EFS users will now be required to submit a six-monthly reconciliation statement detailing input goods acquired, output goods exported or sold domestically, along with value addition and wastage, within 30 days of each period’s end.

The amendments also introduce procedural facilitation measures. Exporters who have already utilised inputs and completed exports within the prescribed period will be allowed to import additional duty-free inputs equivalent to the value of goods already consumed and exported, subject to conditions.

The changes in EFS reflect the government’s attempt to balance facilitation with compliance as it seeks to support exporters while maintaining regulatory oversight of duty-free import schemes.

Published in Dawn, March 20th, 2026