The Federal Board of Revenue (FBR) has strongly rejected allegations made by the Pakistan Customs Audit (PCA) that the Faceless Customs Assessment (FCA) system has caused the country a revenue loss of Rs100 billion. Senior FBR officials said the report is not only factually flawed but also misleading, adding that revenues have risen since the system’s implementation rather than declined.
Speaking at a press conference at FBR headquarters, Chairman Rashid Mehmood Langrial, joined by Member Customs Operations Syed Shakeel Shah and senior customs officials, said that FCA has made customs processes more transparent and efficient. “Certain elements want the rollback of this system because it prevents them from clearing goods in a managed manner,” he remarked, hinting at resistance from vested interests who benefited from loopholes under the old manual system.
Officials disclosed that the PCA report was prepared by two superseded officers and subsequently leaked to the media before undergoing internal review, creating unnecessary public controversy. An inquiry committee has been formed to determine how the report was compiled, who was responsible for the leak, and to recommend disciplinary action.
The PCA had claimed that FCA enabled the clearance of 1006 Goods Declarations (GDs) for restricted edible goods worth Rs10.5 billion without the necessary NOCs or certificates. However, FBR clarified that under the Pakistan Single Window framework, other government agencies directly enforce regulations, and consignments are automatically blocked at the gate-out stage if certificates are not uploaded. Scrutiny confirmed that all consignments complied with import policy rules.
Another allegation in the PCA report suggested that FCA overlooked under-invoicing of used cars and SUVs, enabling trade-based money laundering. A cited case claimed a Land Cruiser was cleared at just Rs17,000. FBR countered this by showing that Rs42 million in duties and taxes were collected, with valuation assessed according to official tables, not declared invoices. Officials explained that such vehicles are often imported under long-standing gift and residence schemes for overseas Pakistanis, meaning no foreign exchange outflows or TBML risks are involved, since transactions take place outside Pakistan’s economic boundaries.
The PCA further alleged Rs30 billion in losses due to contravention cases not being framed on every GD where additional revenue was assessed, along with Rs5 billion lost to miscalculation, valuation gaps, and inadmissible concessions. FBR dismissed these as exaggerated, explaining that every valuation difference was incorrectly treated as misdeclaration. While PCA projected Rs53 billion in losses, Collectorates reviewing the cases identified only Rs58 million as potential shortfall.
FBR leadership emphasized that any confirmed shortfall will be recovered through legal processes once audits are completed. More importantly, gaps identified in the audit will be used to enhance system performance, not just to ensure recoveries. They reiterated that FCA is designed to curb human intervention, strengthen compliance, and boost transparency in trade assessments.
The controversy underscores broader tensions in Pakistan’s ongoing shift toward automated systems that reduce discretion in customs operations. While reforms like FCA aim to improve efficiency and reduce corruption, they continue to face opposition from groups who perceive a loss of influence. FBR, however, remains committed to its digital-first approach in customs management, asserting that the FCA system is not only intact but has already contributed to rising revenues.
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