Karachi, October 25, 2024 – In a significant move to streamline operations and ease taxpayer concerns, the Federal Board of Revenue (FBR) has reduced the powers of the Directorate General of Intelligence and Investigation (I&I) Customs.
The FBR has formally abolished several enforcement functions of I&I Customs, including its authority to conduct anti-smuggling operations. This change is part of a broader initiative to reorganize customs intelligence and improve efficiencies across the department.
The FBR has officially communicated these changes to the Directorate General, directing them to cease all anti-smuggling activities and halt their ability to block or de-block shipments through the WeBOC customs clearance system. Additionally, the FBR has explicitly prohibited I&I Customs from carrying out ‘sting operations.’ These directives are aimed at preventing overreach by customs authorities and reducing the operational burden on taxpayers.
To ensure proper governance, the FBR announced it would soon release a new Charter of Functions, along with a Customs General Order (CGO) that will define the jurisdictions of the Directorate of I&I and lay out detailed procedures for any future sting operations. These operations, if necessary, will require prior approval from the Member Customs (Operations). This new framework is intended to create a more transparent and regulated approach to enforcement.
In light of these changes, the FBR has also initiated a broader reorganization of I&I Customs. A committee was formed to review its structure, leading to the closure of certain regional directorates, including those in Rawalpindi, Multan, Hyderabad, and Gawadar. Concurrently, the FBR will establish a new office under the Director General (Enforcement), which will take over many of the functions previously held by I&I Customs.
Key functions such as management of customs warehouses and some human resources will be transferred to this new enforcement office. To facilitate this transition, the FBR has tasked the Directorate General of I&I Customs with completing a series of tasks, including taking stock of all existing warehouses, reviewing office space, vehicles, and budgetary status, and reporting on ongoing inquiries and human resource allocations. The deadline for this report is November 12, 2024.
These reforms are part of the FBR’s strategy to enhance operational efficiency, eliminate duplicative efforts, and safeguard national trade security and economic interests. By curtailing certain powers of customs intelligence, the FBR aims to simplify procedures, facilitate trade, and reduce the administrative burden on taxpayers while maintaining effective enforcement where necessary.