FCA increased clearance time at ports: report

KARACHI: Despite the FBR’s big claims, the Faceless Customs Assessment (FCA) under the Transform Plan has failed in achieving its objectives, says a report.

This system, launched in the name of a pilot project in Customs Karachi, has increased clearance time instead of reducing it, which is causing additional financial burden on importers, the report stated.

The report, prepared by three-member team under the head of Directorate General of Customs Risk Management (RMS) Ashhad Jawad, said implementation of second phase of this system is not recommended at present. “Its implementation in the second phases is not possible without removing the shortcomings,” the report said.

The other members of the team, who prepared the report, are Director RMS Azhar Hussain Merchant and Director PCA Shiraz Ahmed. The report highlighted serious shortcomings of FCA system launched under a pilot project in Customs Karachi some time ago.

The report revealed after implementation of FCA, significant delays have been observed in clearance at Pakistan’s ports. Delays in clearance of GDs have also increased, it said.

The report, based on 10 months of data from July 2024 to April 2025, challenges the FBR’s claim FCA will make trade process faster and more transparent.

According to the report, clearance time for GDs without physical examination has increased by 57pc from 25 hours to 46 hours.

The average time for GDs with physical examination has increased from 73.6 hours to 87 hours in March 2025.

The number of reviews and appeals has also increased from 6pc in July 2024 to 14pc in April 2025. In December 2024, only 3pc of GDs were being selected for physical examination, the report said.

In April 2025, this rate again reached 14pc, undermining the basic concept of FCA. Revenue collection has also seen a decline, the report said.

The additional revenue was 16 percent in July-November 2024, which came down to 13pc in December-April 2025. The report has identified fundamental flaws in the structure of FCA system.

The 3-member committee, while recommending immediate measures, said the next phase of FCA should be stopped, specific audits of high-risk sectors (automobiles, textiles and chemicals) and expert groups should be restored.

Importers and customs agents said after implementation of faceless system, instead of convenience, obstacles have increased. This system is creating difficulties for business community, they said.

Welcoming the report, trade organisations said the FBR has acknowledged there are practical obstacles in implementation of FCA. Customs officers were informed work pressure has increased due to shortage of reviewing officers, which is delaying clearance. It will not address these complaints, they said.