The move was outlined in SRO.1359(I)/2025, released on Tuesday, which makes a number of amendments to the EFS.

Imports of compressor scrap and motor scrap will be permitted only for copper content under the new guidelines, with the value being allowed as 8% by weight for compressor scrap and 10% by weight for motor scrap. The rest of the steel scrap content will be charged with customs duty, sales tax, and withholding tax at the time of import and could be sold only to sales tax-registered melters.

The notice also explains that import consignments of raw cotton, cotton yarn, and grey cloth with bills of lading dated within ten days from the date of issue of the notice shall continue to be cleared under the old EFS rules.

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Until the FBR releases the formal format of insurance guarantees, users of EFS will have to furnish a bank guarantee wherever it is applicable. Moreover, the users can procure up to 10% of the new raw materials from their overall authorization without prior authorization of the Regulatory Collector or the input/output coefficient organization.

In exceptional circumstances, a senior committee comprising senior FBR officials, Ministry of Commerce, and Ministry of Industries and Production officials could extend up to nine months  additional time for use of raw material subject to recording valid reasons.

This is a follow-up to the government s general tax and customs amendments that also affect copper scrap importation, coated packaging board valuations, and some industrial input rules.