3,500 imported consignments are stuck at ports in Karachi

Pakistan’s port city of Karachi is facing severe congestion as around 3,500 imported consignments are stuck following the implementation of the new Faceless Customs Assessment (FCA) system on December 15, 2024, leading to significant delays.

Arshad Khursheed, former President of the Karachi Customs Agents Association (KCAA), criticized the faceless assessment system for its slow processing, which has caused a growing backlog.

"Goods Declarations (GDs) filed on December 17 haven't been attended to yet, causing delays in the clearance of imported consignments and congestion in ports," Khursheed said.

An official from the Federal Board of Revenue (FBR) admitted that the system was launched without proper testing, leading to problems at major customs offices. The FBR had introduced the FCA system in the South region, expecting it to bring significant changes to the Customs department by reducing clearance time and enhancing efficiency and transparency in assessments.

"The introduction of FCA is expected to bring a significant change in the overall culture and working of the Customs department. It would facilitate trade by reducing the clearance time and would also induce efficiency and transparency in assessments," the FBR stated ahead of the system's launch.

However, the system has not yet been effective. Khursheed noted that the Chief Collector of Customs had assured them of speedy assessments, but the situation is worsening.

The official highlighted that around 1,500 GDs are filed daily in the South region, while only 50 officers are assigned to the centralized assessment unit to process these import consignments.

Sharjeel Jamal, Convenor of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on trade and facilitation, criticized the faceless Customs assessment as merely an administrative measure rather than a proper system.

"This so-called system is set to fail like other projects of Pakistan Customs such as WeBOC Glow, FIFO, and Pakistan Single Window (PSW) because the country's web-based Customs clearance system (WeBOC) does not have the capacity to sustain any type of automation," Jamal said.

The FBR plans to roll out the system at upcountry ports and border stations soon, with the appraisement function of Customs to be relocated outside the Customs Collectorates.