ISLAMABAD: The Federal Board of Revenue (FBR) said on Monday that the Faceless Customs Assessment System (FCAM) cleared 4,000 consignments since its launch.

The board said the FCAM, operating through its centralised appraising unit at South Asia Pakistan Terminal, Karachi, has drastically reduced the need for additional documentation and examination calls.

With this digital reform rolled out at one of Karachi’s busiest ports, endless paperwork and arbitrary delays are now a thing of the past, a top FBR official told Dawn on Monday.

The FCAM has resulted in a dramatic drop in additional documentation and examination calls. “This is not just a step forward—it is a leap towards modernisation and efficiency, “ the official said, adding that launching FCA has transformed the landscape of customs clearances and ushered in a new era of transparency and efficiency.

Industry leaders want speedy clearance of backlog

Official data compiled by the FBR showed that nearly 30pc goods declarations (GDs) faced objections requiring further scrutiny in a week before the launching of the FCAM on Dec 16 while that figure has plummeted an impressive 2pc afterwards.

Similarly, once a bottleneck for trade, physical examinations have been remarkably reduced by 83pc in this new system, marking a significant improvement in customs operations. At the same time, a drastic reduction of 84pc was observed for additional documentation requirements.

According to tax officials, revenue, often a casualty during system overhauls, has remained steady while the number of GDs filed has increased since the rollout of this system, demonstrating that FCAM is not just efficient but also fiscally robust.

The benefit of FCAM for honest businesses is clear: faster, hassle-free clearances without hidden costs. Similarly, dedicated FBR officers who prioritise merit and diligence now operate in a system that rewards integrity.

Karachi Chamber of Commerce and Industry President Jawed Bilwani told Dawn that the FCAM will facilitate trade and reduce corruption. He suggested that the FBR instruct customs offices to remain open on Saturday and Sunday to clear the backlog.

Mr Bilwani believes the new digital assessment would benefit the business community by reducing clearing time and calling for additional documentation. He stated that the computerised processing of refunds has already yielded the expected outcomes, stopping corruption.

Pakistan Chemical Dyes and Merchant Association President Salim Valimohammad told Dawn that untrained individuals are sitting on the system, which may produce delays or obstacles for traders. He also urged FBR to operate customs offices on Saturdays and Sundays to reduce the backlog.

Until the workers are adequately trained, he urged the FBR that customs offices clear all entries daily, even if it means working late at night.

FCAM is reshaping perceptions of FBR’s efficiency and fairness with enhanced transparency and reduced corruption.

The tax officials said the new system ensures that GDs are assessed uniformly, regardless of the port of entry, regional discrepancies are eliminated, and customs procedures will become consistent across all entry points of Pakistan.

However, not everyone is celebrating. They observed that the system’s ‘First In, First Out’ (FIFO) principle dismantles the informal power structures that previously allowed some to bypass formal queues.

According to analysts, the individuals well-known in Karachi’s Customs circles may resist the change and leverage trade bodies to undermine the system. This resistance comes from the simple fact that they risk becoming the losers of this modern customs era.

The biggest losers, however, are those who thrived on collusion—unscrupulous importers, clearing agents, and opportunists who exploited the old system to evade taxes or extract undue benefits. With FCAM’s faceless approach, their influence is rapidly eroding, and it has become apparent to the users of this system that the curtains have finally fallen on their days in the sun.

Published in Dawn, December 24th, 2024