Islamabad: The Federal Board of Revenue (FBR) has reiterated its commitment to advancing the Faceless Customs Assessment (FCA) system, emphasizing that its decision to relocate the Central Appraising Unit (CAU) to Islamabad marks a further step in its customs modernization efforts. The move, FBR clarified, is part of a digital strategy aimed at reducing discretionary powers and minimizing direct interaction between taxpayers and tax officials.
According to Press Information Department, the relocation affects only the assessment function, leaving other operations with the respective collectorates. While physical examinations and port operations will continue in Karachi, traders can resolve issues through their local collectorates. The FBR addressed concerns from the All Pakistan Textile Mills Association (APTMA) about clearance delays, noting that the current performance metrics show a reduction in average customs clearance time from 40.2 hours to 20.57 hours, with 83% of consignments now cleared within 48 hours.
Customs valuation remains governed by Section 25 of the Customs Act, 1969, with digital assessment not permitting arbitrary value enhancements. The reform is part of a larger digital transformation at FBR, which includes the Digital Invoicing System and AI-based Digital Production Monitoring, aiming to enhance transparency and reduce tax evasion.
Drawing on international examples, such as India’s faceless assessment and Singapore’s TradeNet, the FBR is committed to ensuring customs decisions are law-based and evidence-driven. Efforts to improve clearance efficiency include dedicated arrangements for export consignments and green-channel facilitation for compliant importers, alongside proposed service timelines and provisional releases under the Customs Act.
FBR has urged trade bodies to promote timely Goods Declarations filing to reduce port dwell time and costs. The agency has invited APTMA and other trade bodies to submit specific cases for evaluation to address operational challenges without compromising the goals of transparent customs administration.