Faceless Customs System slashes clearance time to 18 hours, adds Rs61bn to revenue

The recently introduced Faceless Customs Assessment (FCA) system has slashed the average clearance time for goods declarations (GDs) to just 18 hours from the previous 109 hours. 

Chief Collector of Customs Appraisement (South), Muhammad Jamil Nasir Khan, highlighted these advancements during separate presentations at the Customs House Karachi and the Karachi Chamber of Commerce and Industry (KCCI).

Khan revealed that the FCA system has not only enhanced efficiency but also boosted revenue collection. Customs revenues rose by Rs61 billion to Rs288 billion in December 2024, while customs duty collection increased by Rs19 billion to Rs86 billion during the same period. The system has also reduced demurrage charges and costs for importers, eliminating the need for physical visits to public offices or prolonged litigation.

Following its success in Karachi, the FCA system is set to launch in Lahore and Islamabad next month. Since its implementation on December 16, 2024, the number of GDs processed through FCA increased from 48,000 to 52,000, while the time taken for assessments dropped by 31%. Khan noted that these reforms would not only further reduce business costs but also improve Pakistan’s global competitiveness rankings.

Looking ahead, plans include establishing a centralized examination center in Karachi, equipped with real-time monitoring and body cameras for examiners to ensure transparency. 

The World Bank is providing financial assistance for the project, and an incentive-based system will be introduced for appraisers, linking their performance to the speed, quality, and quantity of GD processing.

The expansion of FCA operations in Lahore and Islamabad will integrate these cities with Karachi, which currently handles 80% of Pakistan’s imports. Industrial raw material importers have already benefited significantly, with issues related to commercial and miscellaneous imports being resolved. 

In the first 15 days of January 2025, revenue collection reached Rs28 billion, while customs duty receipts increased by Rs10 billion.

Khan also highlighted that the number of GDs entering the Customs department rose by 9% after the system’s launch, with daily entries at four collectorates increasing to 2,100-2,200, of which 1,100-1,200 GDs are processed through the FCA. The initiative is expected to encourage further operational reforms across departments, contributing to the overall competitiveness of Pakistan’s economy.