FBR Brings Reforms to Clearance System Without Any Loan
Islamabad: Pakistan’s Federal Board of Revenue (FBR) has introduced groundbreaking reforms in its customs clearance system, significantly reducing container clearance time and minimizing the exploitation of importers. This achievement was made without the need for foreign loans or advisory services, showcasing Pakistan’s capability to implement effective reforms independently.
Introduction to the Faceless Customs Assessment System
The Faceless Customs Assessment (FCA) system is a locally designed, technology-driven solution aimed at improving the efficiency and transparency of the customs clearance process. Within just two weeks of its implementation, the average dwell time for containers at port decreased from 108 hours to 66 hours—a 39% reduction. Moreover, this system has reduced arm-twisting of importers by 83%, highlighting its effectiveness in curbing corrupt practices.
How the FCA System Works
The new FCA system was implemented on December 15, utilizing changes made to the FBR’s WeBOC platform. This automated, faceless clearance system eliminates direct contact between importers and appraisers, thereby reducing opportunities for corruption and speeding up the clearance process.
Key Features of the FCA System:
- Remote Assessments: Customs assessments are conducted remotely, minimizing physical interactions.
- Automated Processes: The system uses automated processes to streamline the clearance procedure.
- Legal Alignment: Changes are aligned with provisions of the Customs General Order and other relevant legal standards.
Impact of the FCA System
Since the implementation of the FCA system, the number of examination cases has dropped from 717 to just 98, representing an 86% reduction. Similarly, the number of cases where documents were called for has decreased from 3,346 to 564, an 83% reduction. These reductions indicate a significant decrease in opportunities for bribery and corruption.
FBR Chairman Rashid Langrial spearheaded these reforms without resorting to policy loans from foreign lenders or hiring external advisory firms. His leadership highlights the potential for homegrown solutions to drive meaningful change in public sector operations.
Phase-wise Implementation of the FCA System
Phase I: Initial Rollout in Karachi
In the first phase, the FCA system was implemented at the terminals of Karachi Port and Port Muhammad Bin Qasim. The automated Risk Management System selects consignments, which are then processed through the FCA system.
Phase II: Expansion to Other Regions
By June 2025, the FBR plans to extend the FCA system to all Appraisement Collectorates across Pakistan, including dry ports and land border stations under the Enforcement & Export Collectorates. This phase will include:
- Islamabad Dry Port
- Sialkot Dry Port
- Units in Lahore, Peshawar, and Quetta
Phase III: Nationwide Implementation
The final phase will involve rolling out the FCA system at all airports and Export Collectorates. This comprehensive implementation will ensure that all import and export consignments benefit from the faceless assessment system.
Enhancements in Customs Agents’ Licensing
The FBR is also revamping the eligibility criteria and licensing regime for customs clearing agents. A new point-scoring system will be introduced to incentivize correct declarations. Agents who consistently provide accurate information will score higher and improve their profile, while those who fail to do so may face license cancellations.
Benefits of the FCA System
1. Reduced Clearance Time: The average dwell time for containers has decreased significantly. 2. Decreased Corruption: The system minimizes opportunities for bribery and corruption. 3. Increased Efficiency: Automated processes streamline the clearance procedure. 4. Improved Transparency: Remote assessments and automated systems enhance transparency. 5. Economic Growth: Improved customs efficiency supports economic growth and the ease of doing business.
Future Prospects
The FBR’s FCA system represents a significant step forward in modernizing Pakistan’s customs operations. Continued efforts to expand and refine the system will further enhance its effectiveness, contributing to a more transparent, efficient, and corruption-free customs environment.
FAQs
Q1: What is the Faceless Customs Assessment (FCA) system? A1: The FCA system is an automated, technology-driven customs clearance system designed to reduce container dwell time and minimize corruption by eliminating direct contact between importers and appraisers.
Q2: How has the FCA system impacted container clearance time? A2: Since its implementation, the FCA system has reduced the average dwell time for containers from 108 hours to 66 hours, a 39% reduction.
Q3: What are the key features of the FCA system? A3: The key features include remote assessments, automated processes, and alignment with legal standards, all aimed at improving efficiency and transparency.
Q4: Will the FCA system be expanded to other regions in Pakistan? A4: Yes, the FCA system will be expanded to all Appraisement Collectorates, dry ports, land border stations, airports, and Export Collectorates in a phased manner.
Q5: How will the new point-scoring system for customs agents work? A5: The point-scoring system will reward customs agents who provide accurate declarations, improving their profile. Agents who fail to meet standards may face license cancellations.
