Faceless Customs Assessment Hits Roadblock in Karachi: Delays and Eroding Revenue
KARACHI – A recent directorate general of customs risk management (RMS) report has flagged major problems with the Faceless Customs Assessment (FCA) system in Karachi. Rolled out in December 2024, the FCA was intended to streamline customs processes and cut clearance times. Yet, according to the report, the system has fallen short of its aims, causing rising delays and falling revenue. Increased Clearance Times
The FCA system has led to increased dwell times for Goods Declarations (GDs). For GDs that were cleared but not physically inspected, the average dwell time rose by 57%, from 25 hours in July 2024 to 46 hours by April 2025. GDs for examination rose by 10%, hitting 87 hours in March 2025, above the pre-FCA benchmark of 73.6 hours.
Decreasing Revenue
In contrast to predictions, the FCA resulted in a decrease in additional duty collections—a major marker of effective enforcement. Additional revenue was 16% on average from July–November 2024 but fell to 13% from December–April 2025, with fluctuations showing reduced assessment precision.
Operational Inefficiencies
The RMS report highlights numerous operational issues:
- Restricted Trader Histories: Restricting access to trader histories has undermined risk-based assessments.
- Dissolution of Specialized Teams: Removal of specialized assessment teams for chemicals and textiles has reduced institutional knowledge, creating longer clearance times for sophisticated imports.
- Increased Physical Inspections: The number of GDs needing physical inspection has increased from 3% in December 2024 to 14% by April 2025, discrediting the FCA’s goal of reducing manual interventions.
Recommendations for Improvement
The RMS committee calls for urgent corrections, including:
- Stopping Further FCA Expansion: Suspend further rollout of the FCA system until underlying problems are addressed.
- Focused Audits: Audit high-risk areas like vehicles, textiles, and chemicals to measure revenue losses.
- Reviving Specialized Units: Revive specialized assessment units and maintain transparency of trader information to re-establish enforcement capacity.
Industry Response
Trade organizations have complained about the implementation of the FCA system. Sharjeel Jamal, Convener of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), criticized the system for being inefficient and devoid of skilled personnel. He underlined the necessity of experienced officers well aware of Karachi’s appraisement mechanisms for enhancing the efficiency of the system.
The All Pakistan Customs Agents Association (APCAA) has demanded a forensic audit of the FCA system, expressing their doubts regarding its effectiveness and implementation. Chairman Saifullah Khan pointed out that even though the FCA was first introduced by customs agents, recent events have generated serious doubts about its functioning.
Conclusion
The Karachi Faceless Customs Assessment system, designed to automate and speed up trade, has not only stumbled but collapsed. Longer clearance times, falling revenues, and inefficient operations have defeated the very purpose of its introduction. Urgent reforms are the call of the hour to improve the situation and regain market confidence in customs assessment.
