ByThe Federal Board of Revenue (FBR) has successfully introduced an indigenously designed Faceless Customs Assessment (FCA) system, significantly reducing container clearance time and curbing corrupt practices without relying on foreign loans or consultancy services.
Since the system’s implementation on December 15, average container dwell time at ports has decreased from 108 hours to 66 hours, representing a 39% improvement. Additionally, incidents of “arm-twisting” importers have dropped by 83%, highlighting the transformative impact of this technology-driven reform.
The FCA system leverages enhancements to FBR’s WeBOC platform, aligning it with international trade facilitation standards and existing legal frameworks. It eliminates direct contact between importers and appraisers by enabling automated, remote customs assessments.
Key Achievements
- Reduced Container Examination: Examination cases fell by 86%, from 717 to 98.
- Fewer Document Requests: Cases requiring additional documents dropped by 83%, from 3,346 to 564.
- Increased Revenue Collection: Import taxes collected from December 16 to 27 rose by 14% to Rs116.4 billion.
System Highlights
The FCA system assigns goods declaration documents randomly to assessment units in Karachi’s Collectorates of Appraisement East, West, and Port Qasim. Allocation follows a “first-in, first-out” (FIFO) basis to ensure impartiality. Employees are restricted from carrying mobile phones into assessment halls to minimize the potential for unauthorized contact with importers.
Real-time dashboards have been installed for tracking assessments and system performance. Alerts flag delays or irregularities, promoting efficiency and transparency.
Phase-Wise Implementation
The reform is being rolled out in phases:
- Phase I (Underway): Covers terminals at Karachi Port and Port Muhammad Bin Qasim.
- Phase II (By June 2025): Expansion to dry ports, including Islamabad and Sialkot, with units established in Lahore, Peshawar, and Quetta.
- Phase III: Integration with airports and Export Collectorates, bringing import and export consignments under the FCA system.
Revamped Licensing for Customs Agents
To ensure accurate declarations, FBR is introducing a point-scoring system for customs clearing agents. Agents providing accurate descriptions, values, and origins of goods will gain points, improving their profiles. Conversely, repeated inaccuracies could lead to license cancellations.
Future Goals
Although the dwell time of 66 hours is still higher than the global average of under two hours, FBR aims to achieve further reductions by extending the system nationwide. These reforms mark a significant step toward modernizing Pakistan’s customs processes, promoting ease of doing business, and fostering economic growth.
FBR’s chairman, Rashid Langrial, emphasized the importance of indigenous solutions, stating, “True reforms do not require foreign loans but commitment to transparency and efficiency.”
The FCA system is poised to reshape customs operations across Pakistan, enhancing accountability and facilitating smoother trade.
