The Federal Board of Revenue (FBR) has launched the Faceless Customs Assessment (FCA) system in Karachi, marking a transformative step in modernizing customs operations. This initiative, effective from December 15, 2024, is a key part of the FBR Transformation Plan approved by Prime Minister Shehbaz Sharif. It aims to streamline customs clearance processes, reduce human interaction, and enhance transparency.
Central Appraising Unit
Under the new system, all import goods declarations (GDs) filed at Karachi’s Appraisement Collectorates are now routed to the newly established Central Appraising Unit (CAU). Located at the South Asia Pakistan Terminal (SAPT) in Karachi, the CAU operates under Customs General Order (CGO) No. 6 of 2024. This centralized approach replaces the traditional, localized appraisement process, ensuring impartiality and consistency.
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The CAU has been equipped with 55 officers, including senior appraisers, who will work in a secure, sanitized environment. These officers are tasked with conducting assessments using a computerized system that allocates GDs randomly on a first-in, first-out basis. This minimizes biases and reduces delays, contributing to a more efficient customs clearance process.
Transforming Customs Culture
FCA’s introduction signals a significant cultural shift within Pakistan’s Customs Department. By minimizing direct interactions between customs officers and importers, the system aims to reduce opportunities for corruption and inefficiency. Instead, e-hearings and electronic reviews will become the norm, further enhancing accountability.
Chief Collector of Customs Appraisement Karachi, Jamil Nasir, described the initiative as a “paradigm shift” that optimizes human resources and facilitates trade. He emphasized that traders and businessmen would no longer need to visit public offices, creating a “win-win” situation for all stakeholders.
Performance-Based Incentives
To ensure the FCA system operates efficiently, the FBR has introduced a performance-based incentive system for customs appraisers. Officers who demonstrate diligence and integrity will be rewarded, while those failing to meet standards may face penalties. This mechanism aligns with broader reforms aimed at fostering accountability and productivity among customs staff. Additionally, the FBR plans to use performance data generated by the system to inform promotions and career progression for customs officers, further encouraging adherence to best practices.
Revamped Customs Clearing Agents Licensing
The FBR has also overhauled the licensing and evaluation system for Customs Clearing Agents. A new points-based system rewards agents who submit accurate declarations, improving their profiles and reputations. Conversely, agents providing incorrect or substandard declarations risk losing points. Persistent poor performance could lead to the revocation of their licenses. This reform ensures that clearing agents become more accountable, aligning their practices with the FCA system’s transparency and efficiency goals.
Nationwide Rollout
The successful implementation of the FCA system in Karachi is just the first phase of a broader plan. The FBR intends to extend the system to other ports, border stations, Air Freight Units (AFUs), and dry ports across Pakistan. Eventually, customs appraisement functions will be entirely relocated outside traditional collectorates, further modernizing operations.
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The FCA system represents a milestone in Pakistan’s efforts to digitize and reform its tax and customs infrastructure. By leveraging technology and centralizing operations, the FBR aims to enhance transparency, reduce clearance times, and foster a more business-friendly environment.