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Customs claims progress as LCCI warns of rising costs and system flaws

Customs highlighted improved transparency and compliance, while LCCI raised concerns over clearance delays, demurrage costs, and system issues, urging faster processing and business-friendly reforms.

April 18, 2026
in Business
Customs claims progress as LCCI warns of rising costs and system flaws
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LAHORE, April 17 — Member Customs Operations Syed Shakeel Shah said that under the Economic Transformation Plan in FBR, the business community will soon see positive changes. He said that the Faceless Customs system has increased transparency and a nearly 20 percent increase in declared value is proof that compliance has improved. He said that through Pakistan Single Window, business cost is being reduced and the system is being made further easy. He clarified that for legitimate business, every possible facilitation will be provided while strict action against illegal activities will continue. He was speaking at the Lahore Chamber of Commerce and Industry.

Read also: FBR reshapes customs intelligence: New directorate to curb smuggling, money laundering

LCCI President Faheem Ur Rehman Saigol welcomed the guest and said that direct contact of customs authorities with the business community is a positive step which will help in solving problems.

The meeting was attended by LCCI Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi, Vice President SAARC Chamber Mian Anjum Nisar, former President Muhammad Ali Mian, former Senior Vice President Ali Hassam Asghar, Executive Committee members, and representatives of various associations. From the customs side, Chief Collector Customs Appraisement Naveed Elahi, Collector Customs Airport Saima Ayaz, Chief Collector Exports Mohsin Rafiq, Chief Collector Enforcement Basit Abbasi, and Collector Enforcement Syed Agha also participated.

LCCI President raised concerns about delays in airport customs clearance, demurrage charges, and system weaknesses. He said that clearance of small shipments and samples takes several days due to which demurrage and other costs increase, sometimes even more than duty. He demanded that airport GDs should be cleared on fast track and in case of dispute, goods should remain in customs custody so that extra charges are avoided.

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He said that even under rules, shipments up to 100 kg and $500 are still being asked for financial instruments which is unnecessary. He also raised issues of valuation method, MCC department performance, shortage of staff at dry ports, and sending review cases to Karachi.

He said that even after clearance from the port, goods are stopped on the way which creates problems for traders. He said that penalties under SRO 1387 are very high and said that lack of cooperation from banks also causes delays which increases burden on importers.

Later, Member Customs Syed Shakeel Shah said that his visit to the chamber is part of continuous engagement so that business issues can be directly heard and resolved. He said that Lahore is an important economic center of Pakistan and increasing investment here is playing a key role in national development.

He said that Faceless Customs, Pakistan Single Window, and Port Community System are modernizing the system and making it more transparent. He said that at Karachi Port, 60 percent consignments are now being cleared through green channel while red channel has been significantly reduced.

He emphasized anti-smuggling measures and said that eliminating illegal activities is necessary to protect legitimate business. He assured that all business community issues will be taken seriously and resolved through a joint strategy.

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