The Federal Board of Revenue (FBR) has reaffirmed its commitment to the continuation of Faceless Customs Assessment (FCA), clarifying that the relocation of the Central Appraising Unit (CAU) to Islamabad represents a permanent phase in Pakistan’s customs modernisation programme and is not subject to reversal. The clarification comes amid concerns raised by trade bodies over customs clearance delays, valuation disputes and operational challenges following the implementation of the digital assessment system. FBR said the reform is designed to reduce discretionary powers, limit direct interaction between taxpayers and customs officials, and ensure that assessment decisions are made through transparent, system-driven procedures.
FBR clarified that only the customs assessment function is being relocated to Islamabad, while other operational responsibilities will remain with the relevant collectorates. Physical examination of goods and port operations will continue at Karachi, ensuring that customs activities requiring a physical presence remain at their existing locations. Traders will also retain the ability to approach their respective Karachi collectorates to resolve operational issues. The department said the separation of assessment from port-based operations is intended to reduce opportunities for personal influence while maintaining the practical requirements of import and export processing.
Responding to concerns raised by the All Pakistan Textile Mills Association (APTMA) regarding clearance delays, valuation disputes and laboratory referrals, FBR stated that the performance figures cited in the association’s representation largely reflected the initial months of implementation and did not account for subsequent improvements. According to the department, average customs clearance time has declined from 40.2 hours to 20.57 hours, while 83 percent of consignments are now cleared within 48 hours. FBR acknowledged that genuine operational bottlenecks require attention and said targeted improvements would be pursued without compromising the central objectives of the reform.
The department also clarified that customs valuation continues to be governed by Section 25 of the Customs Act, 1969. The introduction of digital assessment does not permit arbitrary increases in declared import values, and customs officers are required to follow prescribed valuation methods and record reasons wherever necessary. FBR said electronic documentation, specialist consultations and digital coordination are expected to improve the consistency and quality of assessment decisions. The system is also intended to reduce unnecessary personal interaction between traders and officials while ensuring that valuation and classification matters are handled according to applicable laws and procedures.
Faceless Customs Assessment forms part of FBR’s wider digital transformation agenda, which includes the Digital Invoicing System and Artificial Intelligence-based Digital Production Monitoring. These initiatives are intended to improve transaction documentation, provide greater visibility into industrial production and tax records, and help identify tax evasion, concealed economic activity and unfair competitive practices. FBR said digitalisation can support compliant businesses by creating a more transparent operating environment and reducing opportunities for preferential treatment through personal connections. The department also referred to international examples, including India’s faceless assessment model, Singapore’s TradeNet and Dubai Smart Customs, as evidence of how technology-driven customs administration can improve transparency and trade facilitation.
To address clearance-related concerns, FBR plans to introduce targeted measures, including dedicated backlog-clearance arrangements for the Export Facilitation Scheme (EFS) and export-oriented consignments. Green-channel facilitation will also be pursued for Authorised Economic Operators and compliant importers. Proposed service timelines include 24 hours for assessment and first review, 48 hours for second review, 24 hours for examination after grounding, and 72 hours for laboratory results. These timelines will be supported by automatic escalation mechanisms intended to prevent cases from remaining unresolved beyond the prescribed periods.
FBR further stated that provisional release of goods under Section 81 of the Customs Act, 1969, will be facilitated wherever legally applicable. The department has urged trade bodies to educate their members about the timely filing of Goods Declarations before vessel arrival. Advance filing and pre-arrival processing can allow eligible consignments to undergo assessment and clearance earlier, helping reduce port dwell time, avoidable demurrage expenses and delays in the movement of goods.
The department has also invited APTMA and other trade organisations to submit specific and verifiable cases involving reported delays, valuation disputes and classification errors. Submissions should include relevant Goods Declaration numbers to enable customs authorities to examine individual cases and identify the causes of operational difficulties. FBR reiterated that genuine concerns will be addressed through targeted administrative and technological improvements while preserving the core structure of Faceless Customs Assessment.
The department maintained that the reform is intended to establish a customs administration based on digital processes, legal compliance, accountability and transparent decision-making. While operational issues remain an area of focus, FBR said the relocation of assessment to Islamabad and the separation of assessment functions from port operations will continue as part of its broader effort to modernise customs administration and improve trade facilitation in Pakistan.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.