KARACHI: The Federal Board of Revenue (FBR) has addressed concerns regarding the potential misuse of the Export Facilitation Scheme (EFS) for dyes and chemicals, following a request from the Pakistan Chemicals & Dyes Merchants Association (PCDMA). FBR Chairman Rashid Mahmood Langrial has called for a review to ensure imports meant for exports are not diverted to the local market.

According to Pakistan Chemicals and Dyes Merchants Association, a meeting was convened between Customs Export officials and the PCDMA at Customs House Karachi. The focus was on creating a robust monitoring mechanism to ensure that dyes and chemicals imported under the EFS serve their intended export purposes. Key attendees included Collector Customs Exports Afnan Khan, Deputy Collector EFS Waqar Ahmed, and PCDMA Chairman Saleem Mukati, among others.

Both Customs and the PCDMA agreed on the importance of preventing misuse of the EFS and reinforcing its role in boosting exports. The PCDMA raised concerns that while EFS imports have increased, corresponding export growth has not reflected these increases, suggesting possible diversion of goods to local markets.

The association urged Customs to verify that imported dyes and chemicals under the EFS are utilized by designated industries and suggested a review of the quantities of raw materials imported. They emphasized the need to link imports to exports through a consumption formula, aiming to ensure that EFS privileges are used as intended.

Discussions also included improving administrative procedures and establishing a transparent audit mechanism to monitor raw material use under the EFS effectively.