MCC Appraisement East has taken legal action by lodging another FIR, shedding light on the flaws and inefficiencies in the so-called “Faceless Customs Assessment System” (FCAS) that have led to a significant loss to the national exchequer. Despite being promoted as a streamlined, technology-driven initiative, the system’s vulnerabilities have been exposed, sparking serious concerns within administrative and economic circles.
The Faceless System: A Misleading Design?
The FCAS, which claims to eliminate human interaction during the assessment and review stages to ensure transparency, appears to function under a dual approach. While the first and second stages remain faceless, the system transitions to a face-to-face process at the second review stage. This deviation from its original intent has led critics to argue that the system is only superficially “faceless” and fails to achieve the transparency it promised.
Sources within the department suggest ulterior motives behind the implementation of the faceless system. Allegations point to a senior bureaucrat aiming to enhance their credentials with a project worthy of inclusion in their CV for a World Bank role. Additionally, another high-ranking officer allegedly used the system to fast-track their promotion, bypassing several eligible colleagues. These ambitions, however, may have come at a heavy cost to the country’s economy. Despite this fact, the Chief collector Nasir Jamil was given a reward of Rs15 million by the prime minister.
Manipulated Policies and a Growing Crisis
To present the system as a success, officials reportedly employed questionable tactics, including increasing the “green channel” clearance to 60% and pressuring appraising officers to expedite processes without adhering to the necessary procedures. This hasty approach has resulted in a loss of oversight and has allowed significant revenue leakage. Experts warn that a comprehensive audit of the system could implicate over 60% of the officials involved, with many potentially facing legal action.
Adding to the controversy, appraising officers have been subjected to grueling 12-hour work shifts to manage the clearance workload. This practice has been criticized as inhumane and unsustainable.
A Call for Reform
Critics of the FCAS suggest that its design needs a complete overhaul. A proposed solution involves automating the clearance process entirely through the green channel while redeploying assessment staff to enforcement, intelligence, and post-clearance audit roles. Additionally, they recommend redirecting penalties collected from importers into a common pool, which could then be distributed as rewards to officers, minimizing the risk of corruption while maintaining government revenue.
Major Misdeclaration Case Uncovered
Amidst the ongoing scrutiny, the Centralized Assessment Unit (CAU) has detected a significant instance of misdeclaration involving M/S Global Textile. The importer attempted to classify “Acetate Tow” as “Polyester Stable Fiber” to evade Federal Excise Duty (FED) on goods imported from the UAE. Following the initial detection, an audit of similar consignments revealed three additional cases, two involving the same importer and one linked to M/S Mehar International. Laboratory tests confirmed the misdeclarations, with estimated duty and tax evasion amounting to Rs 5.4 billion.
Criminal Investigations and Arrest Efforts
FIRs have been registered against both importers, and preliminary investigations have also implicated their clearing agent, M/S Sakina Enterprises. Efforts are underway to apprehend the accused fraudsters. Notably, Malik Waleed, the appraising officer who processed these GDs, has not been named in the FIR, raising questions about accountability within the ranks.
Further Investigations Ordered
There is speculation that businesses capable of consuming acetate tow, including those linked to the cigarette industry, may have played a role in the scheme. Politicians with ties to the industry are also being suggested as potential actors warranting investigation.
Chief Collector’s Stance
The Chief Collector (Appraisement-South) has praised the detecting officers’ efforts and emphasized the importance of a thorough and unbiased investigation. He has urged all collectors to ensure timely post-release verifications and instructed teams to finalize investigations without any fear or favoritism.
This latest episode underscores the urgent need for reforms within the customs assessment framework to prevent further losses and restore public trust in the system.