ISLAMABAD: The Federal Board of Revenue (FBR) has reaffirmed its commitment to strengthening Faceless Customs Assessment (FCA), clarifying that the relocation of the Central Appraising Unit (CAU) to Islamabad represents the next phase of customs modernisation and is not subject to reversal.
Responding to concerns raised by the All Pakistan Textile Mills Association (APTMA) regarding clearance delays, valuation disputes and laboratory referrals, FBR stated that the performance figures cited in the representation largely relate to the initial months of implementation and do not fully reflect subsequent improvements.
The tax authority said that average Customs clearance time has declined from 40.2 hours to 20.57 hours, while 83% of consignments are now cleared within 48 hours. FBR remains committed to resolving genuine operational bottlenecks without compromising the core objectives of the reform.
The initiative is guided by the objective of reducing discretionary powers, minimising direct interaction between taxpayers and tax officials, and ensuring transparent, system-driven assessment decisions. FBR has clarified that only the assessment function will be relocated to Islamabad, other functions will remain with the collectorate of jurisdiction.
The FBR said that physical examination and port operations will continue at Karachi, and traders will be able to approach their respective Karachi collectorates for resolution of issues.
To further improve clearance efficiency, FBR said it will pursue targeted measures, including dedicated backlog-clearance arrangements for EFS and export-oriented consignments, as well as green-channel facilitation for Authorised Economic Operators and compliant importers. Proposed service timelines include 24 hours for assessment and first review, 48 hours for second review, 24 hours for examination after grounding, and 72 hours for laboratory results, supported by automatic escalation mechanisms. Provisional release under Section 81 of the Customs Act, 1969, will also be facilitated wherever legally applicable.
FBR has further clarified that customs valuation continues to be governed by Section 25 of the Customs Act, 1969. Digital assessment does not authorise arbitrary enhancement of declared values, and officers are required to follow the prescribed valuation methods and record reasons wherever required. Electronic documentation, specialist consultation and digital coordination are expected to improve assessment quality while reducing unnecessary personal interfaces.
FBR has invited APTMA and other trade bodies to submit specific and verifiable cases, including relevant Goods Declaration numbers, to enable the examination and resolution of reported delays, valuation disputes and classification errors.
FBR reiterated that operational challenges will be addressed through targeted improvements while maintaining the integrity of Faceless Customs Assessment and the broader agenda of transparent, accountable and efficient customs administration.
FBR has urged trade bodies to educate their members about the timely filing of Goods Declarations before vessel arrival. Advance filing and pre-arrival processing can enable eligible consignments to be assessed and cleared earlier, thereby reducing port dwell time and avoidable demurrage costs.
The reform is part of FBR’s broader digital transformation, which includes the Digital Invoicing System and AI-based Digital Production Monitoring. These initiatives strengthen transaction documentation, improve visibility of industrial production and tax records, and help curb evasion, concealment of economic activity and unfair competitive practices. Digitalisation is intended to protect compliant businesses by making compliance more transparent and reducing opportunities for preferential treatment through personal influence.
International experience also supports the transition towards technology-driven customs administration. India’s faceless assessment model, Singapore’s TradeNet and Dubai Smart Customs demonstrate how digital systems can facilitate trade while promoting transparency and accountability. The underlying principle is to ensure that customs decisions are based on law, evidence and prescribed procedures rather than personal access or physical proximity.
