FBR new system to limit interaction between tax collectors and taxpayers

• Import goods declarations to be allocated to CAU under new system.
• Incentive-based performance management introduced for efficiency.
• Move to bring major change in overall Customs Dept’s work, culture.

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ISLAMABAD, KARACHI: The Federal Board of Revenue (FBR) has launched its Faceless Customs Assessment (FCA) System as part of its efforts to reform the tax sector, The News reported on Sunday.

The new system comes into force today (December 15). 

The FCA, a key component of the FBR Transformation Plan approved by the prime minister, mandates that import goods declarations filed after midnight on December 14 at Karachi’s Appraisement Collectorates will be assessed by the Central Appraising Unit (CAU).

The CAU has been established at the South Asia Pakistan Terminal in Karachi, as per CGO No. 6 of 2024 issued by the FBR last week.

The move is likely to bring a significant change in the overall culture and working of the Customs Department and would also facilitate trade by reducing the clearance time ensuring efficiency and transparency in assessments.

Following the successful completion of the first phase in Karachi, the FCA would then be rolled out at the upcountry ports and border stations across the country and the appraisement function of Customs would be relocated outside the Customs Collectorates.

Furthermore, an incentive-based performance management mechanism has been introduced to enhance productivity and ensure accountability of the Customs appraising officers posted in the CAU.

This mechanism would reward the appraising officers who perform their duties with diligence and integrity.

Additionally, the eligibility criteria and licensing regime of Customs Clearing Agents have also been revamped and a points-scoring system is being introduced to make them responsible for correct and quality declarations.

Under the point scoring system, the Customs agents who give true and honest declarations of description, value and origin, etc., shall score more points and their profile would improve. On the contrary licence of, officials who fail to show improvements in the declarations would lose points which might eventually lead to the cancellation of their licence.

Elaborating on the rationale and intended outcomes of the FCA during a media briefing, Chief Collector of Customs Appraisement Karachi Jamil Nasir said that the system was part of the continuation of the reforms process in the Customs aimed at trade facilitation and reduction in interaction between the tax collectors and taxpayers.

He added the appraisement function would be relocated outside the Customs Collectorate in a corporate environment where assistant and deputy collectors would also be relocated to conduct e-hearing of reviews and in this way, interaction between the tax collectors and taxpayers would almost be eliminated.

Noting that the introduction of the FCA was expected to bring about a paradigm shift in the overall culture and working of the Customs Department, Nasir remarked that traders and businessmen would be spared from visiting public offices and the Customs Department would also be able to optimise the productivity of its scarce human resource. It would be a win-win situation for the Customs as well as traders.

Noting that the data on the performance and productivity of the appraising officers developed in the system over time may be used for their promotion and career progression, the chief collector termed it as the beginning of a new phase of reforms in the Customs and said that several other reforms shall follow soon.

Separately, the authorities have finalised all necessary arrangements for the housing of appraisers and principal appraisers in a sanitised environment and 55 officers — including DC (MIS) — have already been posted to the CAU and shall report at SAPT on Monday at 9:00am.