Karachi, December 30, 2024 – The Federal Board of Revenue (FBR) has achieved a significant milestone by successfully implementing the first phase of the Faceless Customs Assessment System (FCAS), a move that promises to revolutionize Pakistan’s customs clearance process.
Announced on December 15, this indigenous system, developed without any foreign aid or advisory support, has already begun delivering impressive results in less than two weeks.
The introduction of FCAS under the leadership of Prime Minister Shehbaz Sharif is a testament to the government’s commitment to modernizing the country’s customs processes. The initiative, implemented at Karachi ports – the hub of Pakistan’s trade – has drastically improved the efficiency of container clearance operations, reducing clearance time by 39% and minimizing importer harassment by 83%. Karachi ports handle nearly 80% of Pakistan’s imports and exports, making the success of FCAS particularly impactful.
Finance Minister Senator Muhammad Aurangzeb praised the system’s role in reducing corruption and boosting the efficiency of the appraisement process. Prior to FCAS, the customs clearance procedure was riddled with inefficiencies and corruption. Importers would often engage directly with appraisers, bypassing necessary checks and creating opportunities for corruption. With FCAS, the system now automates much of the process, ensuring transparency and reducing human intervention.
Under the first phase, consignments arriving at Karachi’s Port and Port Muhammad Bin Qasim are selected for processing by an automated Risk Management System. Once selected, the relevant documents are allocated to designated assessment units at the Appraisement Collectorates in East, West, and Port Qasim. The goods declaration documents are distributed randomly, eliminating the previous system of group-based handling, and each declaration is processed on a “first-in, first-out” (FIFO) basis by the automated system.
The changes brought by FCAS are already evident in the performance metrics. Container dwell time at the port has dropped significantly from an average of 108 hours to just 66 hours, thanks to the removal of direct contact between importers and appraisers. The system’s integration with the FBR’s Web-Based One Customs (WeBOC) platform ensures that all updates are in line with the Customs General Order and other relevant legal frameworks, supporting modern trade facilitation standards.
In a statement to the media, Saeed Akram, Member Legal and Accounting Customs at FBR, shared that FCAS is designed to address long-standing issues by facilitating remote, automated customs assessments. The system has led to a remarkable 86% reduction in examination cases, from 717 on December 15 to just 98, and an 83% decrease in cases requiring document submission, from 3,346 to 564.
Furthermore, the introduction of FCAS has not hindered the filing of goods declarations or the collection of duties. Between December 16 and 27, over 21,380 goods declarations were filed, reflecting a 7% increase in comparison to pre-automation levels. In addition, cases marked for assessment dropped by 30%, indicating a reduction in corruption risks, while the government collected Rs116.4 billion in import taxes, marking a 14% increase over the previous fortnight.
Looking ahead, Akram revealed that the FBR is preparing for the second phase of FCAS, set for a nationwide rollout by June 2025. This phase will expand the system to all Appraisement Collectorates and extend it to dry ports and land border stations under Enforcement and Export Collectorates. Eventually, FCAS will be implemented at dry ports in Islamabad and Sialkot, and specialized units will be established in Lahore, Peshawar, and Quetta.
In the third phase, FCAS will be expanded to cover airports and export Collectorates. The system will integrate assessment staff at these locations into centralized units, enhancing both import and export operations. Additionally, FBR has reformed the customs clearing agent licensing process, introducing a point-scoring system to promote accuracy and accountability. Agents who provide truthful and accurate information will be rewarded with higher points, while those who fail to improve their declarations will lose points, with potential consequences including the revocation of their license.
Through these progressive reforms, the FBR is taking significant steps to modernize and streamline Pakistan’s customs processes, boosting trade efficiency and combating corruption in the process.