FBR defends Faceless Customs Assessment, cites 30% rise in revenue

System was designed to eliminate collusion between traders; the mechanism of FCA is not responsible for delays clearance process- Chairman FBR

ISLAMABAD: The Federal Board of Revenue (FBR) has said that the Faceless Customs Assessment (FCA) system, launched in December 2024, has not only improved transparency in customs operations but also strengthened revenue collection and enforcement measures.

During a media briefing in Islamabad on Monday, Chairman FBR, accompanied by senior customs officers, stated that the system was specifically designed to eliminate collusion between traders and customs officials by shifting the process to a digital, faceless platform. “Far from causing any losses, the system has delivered encouraging results,” he said, pointing out that revenue collection has increased by almost 30 percent since the launch of FCA, while contravention cases against non-compliant traders have risen fourfold.

Addressing claims that luxury vehicles were being cleared at undervalued prices, the Chairman presented documentary evidence to demonstrate that duties and taxes were assessed strictly in accordance with the notified valuation tables. He cited the example of a Toyota Land Cruiser, explaining that it had been cleared at a value of Rs. 10.05 million and that duties and taxes amounting to Rs. 47.2 million were duly collected. “The impression that vehicles are being cleared on abnormally low values is not correct,” he remarked.

The FBR team also clarified that restricted or sensitive goods were released only after meeting the conditions prescribed in the import policy order, ensuring that no regulatory requirements were bypassed under the FCA system.

Responding to concerns about delays in the clearance process, the Chairman explained that dwell time has only been affected in minor cases and that too because of external factors such as port congestion and procedural bottlenecks. “The mechanism of FCA itself has not been responsible for slowing down the process,” he added.

On the matter of audit observations that had been quoted in sections of the media, the Chairman said these were preliminary in nature, exaggerated in some instances, and in certain cases factually incorrect. He assured journalists that responsibility would be fixed both for the unauthorized leakage of official documents and for any deliberate misrepresentation of facts. For this purpose, a special committee has already been constituted to identify those involved.

Reaffirming the government’s broader vision of reforms and accountability, the Chairman stressed that the FCA system is a key element of FBR’s transformation plan. “We will continue to strengthen this system for better compliance, facilitation, and efficiency,” he said, “and no element will be allowed to derail the reforms we have initiated.”

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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