The Federal Board of Revenue (FBR) has reaffirmed its commitment to Faceless Customs Assessment (FCA), clarifying that the relocation of the Central Appraising Unit (CAU) to Islamabad represents the next phase of customs modernisation and is not subject to reversal. The statement was issued in Islamabad on October 29. The initiative aims to reduce discretionary powers, to minimise direct interaction between taxpayers and tax officials, and to ensure transparent, system driven assessment decisions. FBR clarified that only the assessment function will move to Islamabad, while other functions will remain with the collectorate of jurisdiction, and that physical examination and port operations will continue in Karachi, where traders can approach their respective collectorates to resolve issues.
Responding to concerns raised by the All Pakistan Textile Mills Association (APTMA) about clearance delays, valuation disputes and laboratory referrals, FBR said that the performance figures cited in the representation largely relate to the initial months of implementation and do not fully reflect later improvements. Average customs clearance time has declined from 40.2 hours to 20.57 hours, and 83 percent of consignments are now cleared within 48 hours. FBR also stated that customs valuation remains governed by Section 25 of the Customs Act, 1969, and that digital assessment does not authorise arbitrary enhancement of declared values, with officers required to follow the prescribed valuation methods and to record reasons wherever required.
The board described the reform as part of its wider digital transformation, which includes the Digital Invoicing System and artificial intelligence (AI) based Digital Production Monitoring. According to FBR, these initiatives improve transaction documentation, increase visibility of industrial production and tax records, and help to curb evasion, the concealment of economic activity and unfair competitive practices. It said that digitalisation is intended to protect compliant businesses by making compliance more transparent and reducing the chance of preferential treatment through personal influence. It pointed to the faceless assessment model of India, TradeNet of Singapore and Dubai Smart Customs as examples of how digital systems can facilitate trade while promoting accountability.
To improve clearance efficiency, FBR will pursue targeted measures, including dedicated backlog clearance arrangements for the Export Facilitation Scheme (EFS) and export oriented consignments, and green channel facilitation for Authorised Economic Operators and compliant importers. The proposed service timelines are 24 hours for assessment and first review, 48 hours for the second review, 24 hours for examination after grounding and 72 hours for laboratory results, backed by automatic escalation mechanisms, and provisional release under Section 81 of the Customs Act, 1969, will also be facilitated where legally applicable. FBR urged trade bodies to educate members about filing Goods Declarations before vessel arrival, which can reduce port dwell time and demurrage costs, and it invited APTMA and other bodies to submit specific, verifiable cases with Goods Declaration numbers so that reported delays, valuation disputes and classification errors can be examined and resolved.
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