LAHORE: Chief Collector of Customs Appraisement South, Muhammad Jamil Nasir Khan, announced that the newly implemented Faceless Customs Assessment (FCA) System has drastically enhanced the efficiency of customs operations, reducing Goods Declaration (GD) clearance time from 109 hours to an average of just 18 hours—an 83% improvement.
During a presentation at the Karachi Chamber of Commerce & Industry (KCCI), the Chief Collector outlined the positive impact of the FCA system on importers. He highlighted significant benefits, including lower demurrage costs and reduced reliance on public office visits and litigation. Since its mid-December launch, the FCA system has maintained robust revenue collection, amassing Rs86 billion within its first 15 days.
Key attendees at the meeting included KCCI President Muhammad Jawed Bilwani, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, Chairman of the Customs & Valuation Subcommittee Arif Lakhani, former KCCI Presidents, and members of the Managing Committee.
The Chief Collector emphasized that the FCA system’s rapid clearance capabilities are expected to encourage other departments to expedite their processes, enhancing Pakistan’s economic competitiveness. Future initiatives include establishing a Centralized Examination Center in Karachi with bodycams for transparency and real-time monitoring.
Financial backing for these enhancements is being provided by the World Bank. Plans also include introducing an incentive-based appraisal system and expanding the FCA framework by setting up Customs Assessment Units (CAUs) in Lahore and Islamabad. These units will integrate with Karachi’s operations, which currently handle 80% of the country’s imports.
Jamil Nasir acknowledged initial implementation challenges but credited the unwavering support of KCCI for the system’s smooth adoption. The FCA system has led to a 31% reduction in GDs routed through the red and yellow channels, a substantial increase in green channel clearances, and a 75% drop in document calling. The elimination of the group-based assessment structure has consolidated operations into a controlled environment, ensuring fair and sequential GD processing.
President KCCI Muhammad Jawed Bilwani praised the FCA system, noting its widespread appreciation within the business community. He highlighted its potential to expedite the production cycles of exporters by ensuring the faster clearance of imported raw materials. “This innovation not only boosts exports but also positions Pakistan to improve its port operations ranking globally,” he remarked.
Bilwani urged the Federal Board of Revenue (FBR) to ensure the FCA system’s seamless, long-term operation. He also suggested eliminating dry ports and consolidating all consignment clearances at sea ports under the faceless system to address corruption and misdeclaration.
Highlighting Pakistan’s recent Current Account surplus, Bilwani stressed the importance of innovations like the FCA system in addressing the trade deficit. He further proposed sector-specific refund disbursement accounts to expedite payments, minimizing the financial burdens on exporters caused by delayed refunds. “These steps are vital for achieving a trade surplus and ensuring sustained economic growth,” he added.
