Faceless system clears goods declaration in just 18 hours

Chief Collector of Customs Appraisement (South) Muhammad Jamil Nasir Khan has said that the recently launched Faceless Customs Assessment (FCA) system has significantly improved the efficiency of customs operations, reducing the clearance time for goods declaration (GD) to an average of 18 hours from the previous 109 hours.

On the other hand, because of the new system, revenue collection increased Rs61 billion to Rs288 billion in December 2024. Delivering presentations separately at the Customs House, Karachi and the Karachi Chamber of Commerce and Industry (KCCI), the chief collector highlighted the system's positive impact on importers, including reduced demurrage charges and costs. He noted that during the period, customs duty collection increased Rs19 billion to Rs86 billion. He elaborated that the FCA system eliminated the need for importers to visit public offices or engage in lengthy litigations.

He declared that after its successful experiment in Karachi, the FCA would be introduced in two more cities next month.

Since December 16, 2024, the GDs entered into the FCA had increased from 48,000 to 52,000, while assessment decreased 31%. As a result of reforms in the Customs department, Khan said, not only the clearance time would drop but also business cost would go down and Pakistan's ranking in global business competitiveness would improve. The chief collector said the FCA system's rapid clearance of GDs was expected to encourage other departments to expedite their operations and contribute to the overall competitiveness of Pakistan's economy.

He revealed that future plans included establishing a centralised examination centre in Karachi, equipped with bodycams for examiners to ensure transparency and real-time monitoring. Financial assistance for the project was being provided by the World Bank and an incentive-based system for appraisers would also be introduced, linking their performance to the speed, quality and quantity of GD processing, said Khan, adding that the system would be expanded by establishing Customs assessment units in Lahore and Islamabad, which would be integrated with Karachi operations, which covered 80% of imports. He emphasised that the FCA was already delivering substantial benefits for industrial raw material importers and addressing issues pertaining to commercial and miscellaneous imports. In the first 15 days of January, the revenue collection reached Rs28 billion while customs duty receipts went up Rs10 billion.

He said that after the system's introduction, the number of GDs entered into the Customs department rose 9% as 2,100 to 2,200 GDs were being added to the four collectorates every day. Of these, 1,100 to 1,200 GDs are entering the FCA.