The Federal Board of Revenue (FBR) has dismissed a report by Pakistan Customs Audit (PCA) alleging Rs100 billion in revenue losses following the introduction of the Faceless Customs Assessment (FCA) system, calling the findings factually incorrect and exaggerated. Officials said the report, prepared by two superseded officers, was leaked to the media before an internal review and has now become the subject of an official inquiry to determine responsibility for its preparation and circulation.
FBR Chairman Rashid Mehmood Langrial, accompanied by Member Customs Operation Syed Shakeel Shah and senior customs officials, told reporters at a late-night press conference in Islamabad that the FCA system had, in fact, led to an increase in revenues. They argued that opposition to the system stemmed from vested interests, noting, “Certain elements want rollback of this system because now they are unable to clear their goods in a managed manner.”
The PCA report had alleged that FCA enabled the clearance of restricted edible goods worth Rs10.5 billion without mandatory No Objection Certificates (NOCs) and allowed mis-invoicing and trade-based money laundering, including under-invoicing of imported vehicles. FBR officials countered that under the Pakistan Single Window platform, other government agencies directly enforce regulations, with consignments automatically blocked if required certificates are missing. They added that valuation of imported vehicles, including SUVs and luxury cars, was conducted on official tables rather than declared invoices, ensuring duties were correctly assessed.
The FBR rejected PCA’s claim that Rs30 billion in losses arose from not framing contravention cases on every Goods Declaration where additional revenue was assessed. They also denied the alleged Rs5 billion losses from valuation gaps and inadmissible concessions. Instead, a detailed review found only Rs58 million in potential shortfalls, compared to PCA’s claim of Rs53 billion. Officials emphasized that any confirmed gaps would be recovered in line with the law and used to improve the system rather than undermine it.
The FBR leadership underscored that the FCA represents a reform in customs transparency and efficiency, removing opportunities for manipulation in goods clearance. They confirmed that the inquiry committee will not only review the preparation of the PCA report but also investigate its leak to the media, which they said created a misleading public perception of the FCA’s performance.
By dismissing the PCA report and reaffirming support for the FCA, the FBR has sought to protect the credibility of its digital customs reforms, while warning that accountability will follow for those involved in misreporting and unauthorized disclosures.
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