FBR’s Faceless Customs System Clears 4,000 Shipments, Revolutionizes Trade

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FBR announced on Monday that its newly launched Faceless Customs Assessment System (FCAM) has cleared 4,000 consignments since its implementation. This digital reform, operating through a centralized appraising unit at South Asia Pakistan Terminal in Karachi, marks a significant shift in customs operations, streamlining processes, and reducing inefficiencies that previously plagued trade in Pakistan.

The FCAM has eliminated the need for excessive paperwork and minimized calls for additional documentation and examination, a move that trade and business stakeholders have hailed as a revolutionary step forward. “This is not just a step forward—it is a leap towards modernisation and efficiency,” a senior FBR official told Dawn. The official emphasized that the FCAM has transformed customs clearances by introducing transparency, consistency, and efficiency, reducing opportunities for corruption and arbitrary delays.

Data compiled by the FBR underscores the system’s immediate impact. Before the FCAM’s launch on December 16, nearly 30% of goods declarations (GDs) were flagged for further scrutiny each week. That figure has since dropped to just 2%, demonstrating a dramatic improvement in the speed and accuracy of customs assessments. Similarly, physical examinations of goods, a bottleneck for trade, have decreased by 83%, while additional documentation requirements have seen an 84% reduction.

The benefits of this system extend beyond efficiency. Revenue collection, often disrupted during system overhauls, has remained steady, with the number of GDs filed increasing since the FCAM’s rollout. This consistency in fiscal performance reassures stakeholders that the system not only works efficiently but is also economically viable. Honest businesses now benefit from faster, more straightforward clearances, free from hidden costs and unnecessary bureaucratic hurdles. Meanwhile, FBR officers who uphold integrity and diligence find themselves operating within a system that rewards their commitment to merit.

The business community has responded positively, with industry leaders expressing optimism about the long-term implications of the FCAM. Karachi Chamber of Commerce and Industry President Jawed Bilwani praised the system for facilitating trade and curbing corruption. “The FCAM will reduce clearing time and eliminate the need for additional documentation, benefiting the business community immensely,” Bilwani told Dawn. He suggested that customs offices operate on Saturdays and Sundays to clear backlogs and keep trade flowing smoothly.

Pakistan Chemical Dyes and Merchant Association President Salim Valimohammad echoed similar sentiments but raised concerns about the lack of adequately trained staff managing the system. “Untrained individuals may cause delays or obstacles for traders,” he noted, urging the FBR to expedite training programs and ensure daily clearance of entries, even if it requires extending working hours.

Despite these achievements, the transition to a faceless system has not been without resistance. The FCAM’s “First In, First Out” (FIFO) principle has dismantled informal power structures that allowed certain individuals to bypass formal queues. Analysts observe that influential players in Karachi’s customs circles, who previously exploited the old system, are likely to push back against these changes. Trade bodies might be leveraged to challenge the system, but the growing consensus among stakeholders is that the new era of customs operations is here to stay.

The biggest losers in this transition are those who thrived on collusion, including unscrupulous importers, clearing agents, and opportunists. The faceless nature of the FCAM has eroded their influence, signaling the end of an era characterized by tax evasion and undue advantages. The FBR has made it clear that the days of informal, exploitative practices are over, and the new system will ensure uniformity in GD assessments across all ports of entry, eliminating regional discrepancies.

The FCAM’s success has reshaped perceptions of the FBR, projecting an image of efficiency, fairness, and transparency. With its streamlined operations, enhanced accountability, and reduced corruption, the system is paving the way for a more reliable and business-friendly customs environment in Pakistan. As the FBR continues to refine and expand the FCAM, the initiative stands as a model for modernizing public sector operations in the digital age, setting new standards for trade facilitation and governance.

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