FCAA demands changes in FCA
PESHAWAR: President Frontier Customs Agents Association (FCAA) Khyber Pakhtunkhwa Zia-ul-Haq Sarhadi has demanded changes in newly introduced 'Faceless Customs Assessment', making it convenient and practical for business community dealing in import and export through upcountry dry ports such as Peshawar.
In a press statement issued here on Sunday, Sarhadi who also holds the offices of Senior Vice President Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) and Executive Member Sarhad Chamber of Commerce and Industry (SCCI), said that centralisation of Goods Declarations (GDs) process at Karachi port is causing difficulties for business community of other cities due to delay in processing and clearance.
The government must immediately engage with the business community to craft flexible and practical policies, Zia emphasized.
He welcomed a recent decision by Peshawar High Court (PHC) directing FBR to make necessary amendments in the system and bring it in conformity with the scheme governing the assessment and clearance of goods. The court also issued a directive for restricting application of Faceless Custom Assessment to clearance of goods reached at Azakhel Dry port.
Sarhadi explained that under the new system introduced by the Custom Department, all Goods Declarations (GDs) are routed to the Central Assessment Unit (CAU) in Karachi, even if they are filed at local dry ports.
This centralization has resulted in delays in clearance, as local agents cannot directly communicate with the assessing officers in Karachi in case queries or objections are raised, he added.
Copyright Business Recorder, 2025
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According to FBR's original plan, the second phase of the FCA was to be implemented by June 2025 at all Appraisement Collectorates, dry ports, and land border stations. The third phase, scheduled for September 2025, would extend the system to all airports and Export Collectorates. However, the committee has now advised halting the expansion due to major issues in the first phase. The FCA's implied objective was to curb collusion between importers and customs officers, which was seen as a cause of revenue loss. But the report states the system "has not achieved this objective." FBR Chairman Rashid Langrial told the National Assembly Standing Committee on Finance this week that the system was not primarily aimed at increasing revenue. The report noted that two of the FCA's basic design concepts — hiding trader information from assessing officers and ending specialised assessment groups — had already been tried and abandoned 20 years ago when Pakistan Customs' first computerised system was introduced. The reasons for their earlier failure remain valid today. The committee found that specialised assessment groups helped build sector-specific institutional memory and stronger customs controls, while also reducing clearance time through repeated handling of similar products. Langrial acknowledged the implementation problems during a meeting with the Finance Committee on Friday and said they would be resolved by next month. However, the very committee formed under his orders has recommended halting the rollout. The final report on FCA and Centralised Assessment Unit (CAU) performance was submitted to FBR management last month, in response to a review ordered by Langrial. 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"The value addition by assessing officers is reflected in the extra revenue collected," the report stated. This contribution dropped from 16% in July-November to 13% in December-April. However, the number of documents called for examination dropped from 37% to 21%. The Director General of Risk Management System and the Member Operations FBR Customs, both part of the review committee, did not respond to requests for comment. The report showed that customs officers now refer more goods declarations to senior officers after assessment. Referrals rose from 6% in the old system to 11% under FCA. Lab referrals also doubled. The WeBOC system allows traders to file reviews before principal appraisers and assistant collectors. Under FCA, such appeals increased from 6% to 14%, further delaying clearance and increasing workload. "Increased examinations, senior officer referrals, lab tests, and especially reviews have offset any time saved from reduced document calls, thereby increasing overall dwell time," the report stated. It also noted that the quality of assessments had deteriorated, as indicated by the surge in review filings. Langrial admitted that clearance times at appraisal and examination stages had risen due to the increased number of reviews filed by importers. "At the design stage, we did not anticipate the rise in reviews," he said, adding that FBR would introduce virtual hearings by assistant and deputy collectors starting July to address the issue. The new FCA system was designed to address long-standing issues in customs processes by enabling remote, technology-driven assessments and minimising physical contact through automation. During the first few weeks of FCA's implementation, the average time for container clearance had initially improved, dropping from 108 hours to 66. However, the long-term data now shows the opposite trend.
