Faceless System Clears Goods in 18 Hours

KARACHI: Muhammad Jamil Nasir Khan, Chief Collector of Customs Appraisal in the South, stated that the newly introduced Faceless Customs Assessment (FCA) system has significantly improved the efficiency of customs operations. This advancement has reduced the average clearance time for goods declarations (GD) from 109 hours to just 18 hours.

Conversely, in December 2024, income collection climbed by Rs61 billion to Rs288 billion, entirely due to the new system. The chief collector made separate speeches at the Customs House in Karachi and the Karachi Chamber of Commerce and Industry (KCCI), where he emphasized the system’s advantage for importers, such as the decrease in demurrage charges and expenses.

He pointed out that customs duty collection went up by Rs19 billion, to Rs86 billion, during that time. He went on to say that importers no longer had to waste time and energy traveling to government offices or enduring drawn-out lawsuits because of the FCA system.

Following its successful trial in Karachi, he announced that two other cities would be introducing the FCA next month.

FCA Benefits for Importers

The number of GDs included in the FCA rose from 48,000 to 52,000 since December 16, 2024, but evaluation fell by 31%. According to Khan, if the Customs Department were to undergo any reforms, the clearance time, business costs, and Pakistan’s standing in global business competitiveness would all see significant improvements. In an effort to boost Pakistan’s economic competitiveness, the chief collector stated that other departments will be encouraged to speed up their processes by the FCA system’s quick clearing of GDs.

He disclosed that in the near future, there will be a centralized testing facility in Karachi, complete with bodycams for the examiners to guarantee openness and continuous supervision. According to Khan, the World Bank is providing financial support for the project, and appraisers will be held accountable for the quantity, quality, and speed of GD processing.

Increase in the Number of GDs Processed

The system will also be expanded to include customs assessment units in Lahore and Islamabad, which will be linked to Karachi operations, which handle 80% of imports. He stressed that the FCA was already solving problems with commercial and other imports and providing huge benefits to importers of industrial raw materials. Customs duty receipts increased by Rs10 billion in the first fifteen days of January, bringing total revenue collection to Rs28 billion.

According to him, daily additions of 2,100 to 2,200 GDs to the four collectorates resulted in a 9% increase in the number of GDs received by the Customs department following the system’s launch. The FCA is receiving 1,100 to 1,200 GDs from this group.