KARACHI: The Federal Board of Revenue (FBR) has officially launched the second phase of the Faceless Customs Assessment (FCA), marking a significant milestone in modernizing Pakistan’s customs processes. The examination of imported consignments at the FCA will commence from February 28, 2025.
Key Decisions and Progress
In a recent meeting held on February 6, 2024, progress was reviewed on previous decisions, and several key directives were issued to ensure the smooth implementation of the second phase of the FCA. The following directives were highlighted:
- Next Phase of Faceless Assessment:
– The Chief Collector of Customs (Appraisement-South), Karachi, was directed to ensure that the Customs Reference Files (CRFs) for the next phase of faceless assessment, including the decoupling of upfront duty and tax payments, are shared online without delay.
– The Member Customs (Policy) is responsible for making necessary legal changes in the laws and procedures to facilitate these updates.
- Direct Port Delivery (DPD) System:
– The Chief Collector of Customs (Appraisement-South) will share the CRF for implementing the DPD system within a week.
– Coordination with terminal operators, port authorities, and trade bodies will be undertaken to ensure the DPD system is rolled out by June 30, 2025.
- Priority OGAs Integration:
– The CEO of Pakistan Single Window (PSW) is tasked with sharing the list of priority Other Government Agencies (OGAs) along with relevant data, impacting dwell time at ports.
– Timelines for the integration of these OGAs with the PSW platform will be provided.
- Technological Advancements:
– The CEO of PSW and the Technology for People Initiative (LUMS) will finalize an implementation plan within a week, focusing on the Documents Defacing Mechanism and upgrading RMS and PCA using AI and LLM.
- Improved Checks Against Mis-Invoicing:
– The CEO of PSW will implement the integration of solutions like TTEK with WeBOC to enhance checks against mis-invoicing, ensuring the security of national trade data.
- Dashboard Templates:
– The Director of Trade Development Unit (TDU) will share templates for dashboards with PSW within a week.
– These templates will also be shared with Member IR (Operations) for replication on the IRS side.
Chairman FBR’s Directions
The Chairman of FBR provided additional directions during the February 6 meeting with DG Customs and other officials. Key points include:
– Shift of Import GDs: The CRF for the next phase will shift import Goods Declarations (GDs) from dry ports to the central assessment unit in Karachi.
– Faceless Examination: Rollout at three Karachi ports by February 28, 2025.
– Decoupling Duties and Taxes: The CRF for decoupling duties and taxes from filing GDs will be prepared by February 12, 2025, with changes deployed by July 1, 2025.
– Direct Port Delivery: Presentation on the Direct Port Delivery system and its impact will be prepared by the DG RMS before the Task Force.
– Dashboard Requirements: Dedicated teams will gather requirements for dashboards, which will be provided to PSW by February 21, 2025.
Transformation of Pakistan Customs
The transformation of Pakistan Customs is underway, with significant changes including the merging of Appraisement East and West and the introduction of a performance-based point system for customs agents. Under this new rule, agents with low points due to mistakes will have their licenses blocked.
Concerns Raised by Customs Agents
Convener FPCCI and leader of the Customs Agents Association, Muhammad Sajid Mughal, has expressed concerns over the legality of blocking licenses under the new point-based system. According to Hussain, mistakes by customs agents should be penalized through fines and penalties, and mis-declaration should result in FIRs, not license cancellation. He highlighted the economic impact on families when licenses are cancelled and the limited capacity of agents to seek legal redress.
Hussain also pointed out that some aspects of the FCA were not considered, leading to trade disruptions and losses to the national exchequer.
The launch of the second phase of FCA signifies a crucial step towards modernizing customs processes in Pakistan, promising improved efficiency and transparency in the examination of imported consignments.