The Federal Board of Revenue (FBR) is set to revolutionize customs operations in Pakistan with the launch of the Faceless Customs Assessment (FCA) System at Karachi, effective December 15, 2024. This initiative is a critical component of the FBR Transformation Plan, recently approved by the Prime Minister, and aims to enhance efficiency and transparency in customs processes.
Under the new system, all import goods declarations submitted after midnight in the Appraisement Collectorates of Karachi will be assessed by the newly established Central Appraising Unit (CAU). Located at the South Asia Pakistan Terminal Karachi, the CAU has been set up in accordance with Customs General Order (CGO) No. 6 of 2024, issued by FBR earlier this month.
The FCA System is expected to significantly improve the customs department’s operational culture by reducing clearance times and promoting a more transparent assessment process. By utilizing centralized appraisals, the system minimizes discretionary decision-making, ensuring fair and consistent evaluations. This marks a transformative step in facilitating trade and aligning customs practices with international standards.
Following the successful implementation of the first phase in Karachi, the FCA System will be rolled out to upcountry ports and border stations. The appraisement function will also be relocated outside the Customs Collectorates, reflecting FBR’s commitment to modernizing its infrastructure. To support the transition, 55 officers have been posted to the CAU, and arrangements have been finalized to house appraisers and principal appraisers in a secure and sanitized environment.
An incentive-based performance management mechanism has been integrated into the FCA System to enhance productivity and accountability among customs appraising officers. This system rewards officers who demonstrate diligence and integrity in their assessments, fostering a culture of excellence within the department.
In addition to streamlining customs assessments, FBR is revamping the eligibility criteria and licensing regime for Customs Clearing Agents. A new point-scoring system will be introduced to evaluate agents based on the accuracy and quality of their declarations, including details such as description, value, and origin. Agents who provide honest and accurate declarations will earn higher scores, thereby improving their profiles. Conversely, agents with consistent inaccuracies will lose points, potentially leading to license cancellations.
This initiative represents a significant milestone in FBR’s broader strategy to digitize and optimize its operations. By leveraging technology and data-driven systems, the FCA aims to address long-standing inefficiencies while reducing the risk of corruption. Moreover, it demonstrates FBR’s dedication to creating a trade-friendly environment, which is essential for bolstering economic activity and attracting foreign investment.
As the system gains traction, it is anticipated to set a precedent for customs modernization in Pakistan, delivering benefits for importers, exporters, and the broader economy. The introduction of the FCA System underscores FBR’s vision for a transparent and efficient customs framework, paving the way for a more competitive and resilient trade ecosystem.