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Home FBR & Customs

Faceless Customs System hindering trade, say business leaders

1 year ago
in FBR & Customs
Reading Time: 2 mins read
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— Muhammad Amjad Chaudhary, Masood Butt, Agha Iftikhar, Asif Siddique, Farooq Hassan

By Our Correspondent 


LAHORE: Business leaders and customs representatives have voiced serious concerns over the recently introduced Faceless Customs Assessment System, calling it a major hurdle for trade, investment, and industrial growth in Pakistan.

Muhammad Amjad Chaudhary, President of the Lahore Chamber for Small Traders & Small Industry and Chairman of the Lahore Customs Agents Association, said the system, introduced in December 2024 to digitalize customs procedures, has instead created multiple complications for importers and businesses across the country.

Read also: Business leaders reject shift of Customs Appraisement to Karachi

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Masood Butt, Vice President of the Lahore Chamber for Small Traders & Small Industry, highlighted the excessive delays in clearance and unfair valuation practices under the new system. “Importers are burdened with heavy demurrage charges due to weeks-long delays, while unjustified assessments inflate duties. These costs ultimately fall on the local business community,” he said.

Agha Iftikhar Ahmad, Vice Chairman of the Lahore Businessmen Front, added that the centralized nature of the system — managed solely from Karachi — has rendered dry ports ineffective. “Thousands of workers, customs agents, and transporters at dry ports are facing unemployment, leading to economic stagnation in key regions,” he lamented.

Senior Vice Chairman of the All Pakistan Customs Agents Association, Asif Siddique, criticized the ineffective appeal process and frequent unnecessary documentation demands, which have left importers frustrated. “The promise of a transparent and efficient system has turned into a nightmare,” he noted.

Farooq Hassan, President of the Lahore Customs Agents Association, referenced an FBR audit report, stating that not only has the system led to delays and economic uncertainty, but it has also reduced revenue collection and violated several provisions of the Customs Act.

The business leaders jointly called for an immediate policy review and demanded that the Faceless Assessment System be expanded to all dry ports to ensure uniform implementation and transparency. They urged the government to engage with real stakeholders to draft a more practical, business-friendly customs policy.

“The current system is driving away foreign investors, disrupting industrial supply chains, and weakening Pakistan’s trade potential. We must act now to restore business confidence,” they concluded.

 

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