Faceless customs – customs delivering on its commitment to efficiency, security & prosperity

TEXT: "Customs Delivering on its Commitment to Efficiency, Security and Prosperity"-theme selected by World Customs Organization (WCO) to mark World Customs Day 2025 perfectly aligns with the newly launched Faceless Customs Assessment (FCA) System in Pakistan. The groundbreaking initiative, Faceless Customs Assessment (FCA), has been inaugurated by Prime Minister Shehbaz Sharif on January 8, 2025. This is a pivotal part of the Prime Minister’s broader initiative to transform the Federal Board of Revenue (FBR) by digitizing operations, enforcing taxation laws more efficiently, and enhancing revenue collection.

At its core, the FCA is designed to enhance the ease of doing business, curb tax evasion, and promote efficiency within customs processes. This process aligns with international trade facilitation efforts, such as the World Trade Organization's Trade Facilitation Agreement and WCO’s Revised Kyoto Convention and Arusha Declaration, by reducing trade barriers and encouraging accountability.

The FCA system represents a paradigmatic shift in the way customs operations are conducted. Traditionally characterized by face-to-face interactions between customs officials and traders, the FCA introduces a fully automated, contactless, and paperless environment at the Central Assessment Unit (CAU). This has directly contributed to the acceleration of goods release, thus facilitating smoother trade operations.

The CAU is located at South Asia Pakistan Terminal (SAPT) and currently operates with a team of 84 customs officials, including Appraisers, Principal Appraisers, and the Quality Assurance team. The personnel are operating in a closely monitored, completely sanitized environment with rigorous surveillance and accountability mechanisms in place. The risk-based system randomly assigns tasks to the Assessment Officers, irrespective of the Collectorates, that are completed on a first-in, first-out (FIFO) basis. This approach not only ensures transparency but also mitigates the risk of undue influence or preferential treatment.

Soon after FCA rollout, the frequency of document calling and goods examination by Assessment Officers started to decline- now down by 74% and 70%, respectively, much to the relief of traders. Since its inception, the FCA has delivered remarkable improvements in customs clearance times. The system has reduced the average time for customs clearance from 108 hours to just 17 hours, a dramatic decrease that has significantly mitigated the opportunity costs and losses that businesses traditionally incurred due to prolonged delays in clearance. This reduction in manual processes has been widely appreciated by traders and stakeholders, who now experience faster processing times and fewer burdens in forms of demurrage and detention charges.

The introduction of the FCA system and the adoption of a uniform assessment process are poised to significantly reduce litigation in customs matters. By ensuring a more transparent, fair, and standardized approach to the assessment of Goods Declarations, the FCA minimizes the chances of arbitrary decisions and inconsistencies.

This being done by no means ignore the capacity building and well-being of the Assessment Officers. Thorough incentive structures have been put in place to encourage optimal performance among Appraisers, with rewards and penalties based on their output and accuracy. The system’s random assignment of Goods Declarations to Assessment Officers, enables the Officers to assess a wider range of goods, fostering confidence and capability. In this way, this approach has not only brought about fairness and uniformity in assessment processes but also contributed to the growth and development of the officers themselves, creating a system that feels more just, transparent, and reassuring for all involved.

Nonetheless, the biggest feat of the Faceless Customs Assessment System is how it has seamlessly overhauled customs operations without incurring significant capital costs or advisory fees. Its execution under the Federal Board of Revenue primarily involved making systemic changes to the existing WeBOC and Pakistan Single Window platforms, which are already seen as the cornerstones of digital transformation in customs. With Phase II of the FCA set to roll out across the country by June 2025, Pakistan is boldly moving forward, embracing a future where technology empowers our customs system, strengthens national pride, and positions the country for greater global competitiveness.

It is important to mention that this indigenous system is comparable to the Indian Faceless Customs Initiative (FCI) introduced in the year 2020 and in fact, goes a step further by ensuring zero contact between customs officials and importers. This delinking of customs operations introduces a new level of fairness and operational efficiency that is expected to reduce opportunities for corruption and enhance the overall quality of service delivery. Pakistan’s FCA model, therefore, not only follows in the footsteps of its regional counterparts but also sets new standards for transparency, efficiency, and digital innovation in customs management.

In a nutshell, FCA carries the spirit of introducing technology-driven solutions in customs operations that are in line with the guidelines of international conventions and the World Customs Organization. Through this initiative, Pakistan is setting a new benchmark for customs operations in the 21st century, one that is characterized by efficiency, security, and long-term growth.

Hafsa

Assistant Collector

Office of Chief Collector of Customs, Appraisement South

Copyright Business Recorder, 2025