Karachi, December 10, 2024 – The Federal Board of Revenue (FBR) has announced a significant modernization of its customs operations with the launch of the Faceless Customs Assessment (FCA) system. This initiative aims to enhance trade facilitation, ensure faster clearance of Goods Declarations (GDs), and promote transparency and uniformity in customs processes.
The FBR formalized this new system by issuing Customs General Order (CGO) No. 06 of 2024. At the heart of this initiative is the establishment of a Central Appraising Unit (CAU) in Karachi. According to the FBR, the FCA system is designed to improve the quality of assessments, rationalize workloads among Appraising Officers (AOs), and reduce human interaction to minimize opportunities for bias or malpractice.
Operational Structure and Rollout
The CAU will handle consignments arriving at all terminals within Karachi Port and Port Muhammad Bin Qasim (PMBQ). Goods Declarations filed at various Collectorates in Karachi will be allocated to the CAU for assessment. In its initial phase, the FCA will operate exclusively within Karachi’s port terminals, with plans for a phased rollout to Air Freight Units (AFUs), dry ports, and border customs stations across Pakistan.
Located at a designated site in Karachi, the CAU will operate under strict protocols to ensure the security and integrity of its processes. Cellular devices are prohibited within the CAU premises, and the work environment will remain isolated to maintain the confidentiality of operations.
Assessment Workflow and Transparency
The GDs allocated to the CAU will be processed using the Customs Computerized System (CCS). AOs at the CAU will assess GDs in a random, group-less setting, following a ‘first in, first out’ (FIFO) methodology. Assessments will adhere to the Customs Act, 1969, and related rules, including valuation rulings, public notices, and Board-issued instructions.
To enhance accountability, the system will include a random quality assurance mechanism. Selected GDs will undergo additional scrutiny by a dedicated team responsible for performance evaluation and oversight. In cases of disputed assessments, a review will be conducted by the Principal Appraiser (PA) within the CAU.
Handling of Specialized GDs and Post-Clearance Activities
Certain GDs, such as those requiring provisional assessment under Section 81 of the Customs Act or involving exemptions, will be referred to the Assistant or Deputy Collector of the respective Collectorate for further processing. In instances of misdeclaration or legal violations, AOs will forward cases to PAs for appropriate action under the law.
Post-clearance actions, including contravention cases, audit observations, recovery of short-paid amounts, and litigation, will be managed by the respective Collectorate. Additionally, the Collector Headquarters-Appraisement (South) in Karachi will maintain complete visibility of GDs processed by the CAU to ensure vigilance and anti-evasion measures.
A Step Forward for Trade Facilitation
The introduction of the Faceless Customs Assessment system represents a major step forward in modernizing Pakistan’s customs operations. By leveraging technology and reducing human interaction, the FBR aims to provide a streamlined, transparent, and efficient customs environment, fostering confidence among traders and enhancing the overall trade experience in the country.