The Federal Board of Revenue (FBR) has introduced revised customs duty drawback rates for Pakistani exporters under SRO 1908(I)/2026, effective October 27, 2026. The new notification replaces the previous framework issued in 2009.
The revised rates cover a wide range of export products, including cotton fabrics, garments, hosiery, polyester textiles, carpets, blankets, sleeping bags, tents and industrial fabrics.
Under the updated policy, exporters can claim refunds of customs duties paid on specified imported raw materials used in manufacturing eligible exported goods. The repayment rates vary according to the product category, raw materials and manufacturing process, and are generally calculated as a percentage of the Free-on-Board (FOB) export value.
Some notable rates include 1.784% for eligible hosiery products, 4.955% for qualifying acrylic blankets containing at least 70% acrylic, 2.136% for specified cotton canvas and tarpaulin products, and 0.352% for eligible hand-knotted silk carpets.
The FBR has also introduced specific conditions for claiming refunds. Exporters must submit their applications within 210 days of export or 180 days from the realisation of foreign exchange, as reflected in the relevant Bank Credit Advice.
Additionally, exporters must declare their intention to claim duty repayment in the relevant Goods Declaration and maintain supporting documentation.
The revised framework is expected to affect Pakistan’s textile, garment and manufacturing export sectors. Exporters should review the updated schedules, verify their product classifications and ensure compliance with the documentation and filing deadlines to benefit from the facility.