Republic Policy | Trade. Industry. Economic Governance.
New rates take effect from October 27, covering textiles, leather, engineering and miscellaneous manufactured exports.
ISLAMABAD — The Federal Board of Revenue (FBR) has revised duty drawback rates for exporters across four major categories: textile and allied products, leather goods, engineering products, and miscellaneous manufactured items.
The revised rates will take effect from October 27, 2026, following the issuance of four notifications by the FBR on Thursday. The notifications specify the extent to which exporters can claim repayment of customs duties paid on imported raw materials used in manufacturing goods for export.
The changes cover a range of industries that rely on imported inputs for domestic production and international trade. By defining the applicable repayment rates and eligible inputs, the revised framework sets out the conditions under which exporters can recover customs duties.
Four notifications establish revised rates
The FBR has issued the following notifications:
- SRO 1908(I)/2026: Duty drawback rates for textile and allied products.
- SRO 1909(I)/2026: Duty drawback rates for leather and allied products.
- SRO 1910(I)/2026: Duty drawback rates for engineering and allied products.
- SRO 1911(I)/2026: Duty drawback rates for miscellaneous products.
The notifications also specify the raw materials and imported inputs covered by the repayment arrangements, along with the applicable rates and conditions.
Conditions for claiming duty repayment
Under the revised notifications, customs duties paid on imported raw materials used in the production or manufacture of exported goods may be repaid to exporters to the extent specified in the relevant schedules.
To qualify, the manufactured goods must be exported from Pakistan, and the exporter must submit an application for repayment to the proper Customs officer within the prescribed timeframe.
The application must be filed within 210 days of exportation, or within 180 days from the date of realisation of foreign exchange, as recorded in the Bank Credit Advice issued in accordance with the State Bank of Pakistan’s applicable directives.
Exporters are also required to declare their repayment claims in the Goods Declaration and other relevant export documents, identifying the customs duties paid on imported raw materials used in the exported products.
Implications for export-oriented industries
The revised duty drawback framework is relevant to industries whose production processes depend on imported raw materials and intermediate goods. The repayment mechanism allows eligible exporters to recover specified customs duties, reducing the cost burden associated with imported production inputs.
However, the practical benefit will depend on the rates assigned to individual products, the eligibility of imported materials and exporters’ ability to comply with documentation and filing requirements.
For Pakistan’s export-oriented sectors, predictable duty repayment procedures and timely processing of claims remain important elements of trade facilitation. The effectiveness of the revised framework will therefore depend not only on the announced rates but also on their consistent implementation by Customs authorities.
Source: Business Recorder; FBR notifications cited in the report. The supplied report does not provide the individual revised rates.
Slideshow: FBR Revises Export Duty Drawback Rates
Slide 1 — New Duty Drawback Rates
FBR revises customs duty repayment rates for four categories of export products, effective October 27, 2026.
Slide 2 — Four Sectors Covered
Textiles and allied products, leather goods, engineering products and miscellaneous manufactured exports.
Slide 3 — Four New Notifications
SRO 1908, 1909, 1910 and 1911 (I)/2026 establish the revised rates and applicable schedules.
Slide 4 — What Exporters Can Claim
Eligible exporters can seek repayment of specified customs duties paid on imported raw materials used in exported goods.
Slide 5 — Filing Deadlines
Claims must be submitted within 210 days of exportation or 180 days from foreign exchange realisation, subject to the prescribed conditions.
Slide 6 — Documentation Matters
Exporters must declare their repayment claims in the Goods Declaration and relevant export documents.
Slide 7 — The Export Policy Challenge
The impact will depend on product-specific rates, efficient claim processing and consistent implementation.ISLAMABAD — The Federal Board of Revenue (FBR) has revised duty drawback rates for exporters across four major categories: textile and allied products, leather goods, engineering products, and miscellaneous manufactured items.
The revised rates will take effect from October 27, 2026, following the issuance of four notifications by the FBR on Thursday. The notifications specify the extent to which exporters can claim repayment of customs duties paid on imported raw materials used in manufacturing goods for export.
The changes cover a range of industries that rely on imported inputs for domestic production and international trade. By defining the applicable repayment rates and eligible inputs, the revised framework sets out the conditions under which exporters can recover customs duties.
Four notifications establish revised rates
The FBR has issued the following notifications:
- SRO 1908(I)/2026: Duty drawback rates for textile and allied products.
- SRO 1909(I)/2026: Duty drawback rates for leather and allied products.
- SRO 1910(I)/2026: Duty drawback rates for engineering and allied products.
- SRO 1911(I)/2026: Duty drawback rates for miscellaneous products.
The notifications also specify the raw materials and imported inputs covered by the repayment arrangements, along with the applicable rates and conditions.
Conditions for claiming duty repayment
Under the revised notifications, customs duties paid on imported raw materials used in the production or manufacture of exported goods may be repaid to exporters to the extent specified in the relevant schedules.
To qualify, the manufactured goods must be exported from Pakistan, and the exporter must submit an application for repayment to the proper Customs officer within the prescribed timeframe.
The application must be filed within 210 days of exportation, or within 180 days from the date of realisation of foreign exchange, as recorded in the Bank Credit Advice issued in accordance with the State Bank of Pakistan’s applicable directives.
Exporters are also required to declare their repayment claims in the Goods Declaration and other relevant export documents, identifying the customs duties paid on imported raw materials used in the exported products.
Implications for export-oriented industries
The revised duty drawback framework is relevant to industries whose production processes depend on imported raw materials and intermediate goods. The repayment mechanism allows eligible exporters to recover specified customs duties, reducing the cost burden associated with imported production inputs.
However, the practical benefit will depend on the rates assigned to individual products, the eligibility of imported materials and exporters’ ability to comply with documentation and filing requirements.
For Pakistan’s export-oriented sectors, predictable duty repayment procedures and timely processing of claims remain important elements of trade facilitation. The effectiveness of the revised framework will therefore depend not only on the announced rates but also on their consistent implementation by Customs authorities.
Source: Business Recorder; FBR notifications cited in the report. The supplied report does not provide the individual revised rates.
Slideshow: FBR Revises Export Duty Drawback Rates
Slide 1 — New Duty Drawback Rates
FBR revises customs duty repayment rates for four categories of export products, effective October 27, 2026.
Slide 2 — Four Sectors Covered
Textiles and allied products, leather goods, engineering products and miscellaneous manufactured exports.
Slide 3 — Four New Notifications
SRO 1908, 1909, 1910 and 1911 (I)/2026 establish the revised rates and applicable schedules.
Slide 4 — What Exporters Can Claim
Eligible exporters can seek repayment of specified customs duties paid on imported raw materials used in exported goods.
Slide 5 — Filing Deadlines
Claims must be submitted within 210 days of exportation or 180 days from foreign exchange realisation, subject to the prescribed conditions.
Slide 6 — Documentation Matters
Exporters must declare their repayment claims in the Goods Declaration and relevant export documents.
Slide 7 — The Export Policy Challenge
The impact will depend on product-specific rates, efficient claim processing and consistent implementation.
