Textile mills ask FBR to keep Karachi customs unit, review faceless assessment

The All Pakistan Textile Mills Association has asked the Federal Board of Revenue to keep its Central Appraising Unit in Karachi and to review the faceless customs assessment system, saying clearance times have lengthened and importers are paying more to bring goods in.

In a letter dated October 27 to FBR Chairman Rashid Mahmood Langrial, the association said the system had not improved the quality of assessment in nearly 21 months of operation, Business Recorder reported.

APTMA said an FBR review committee had found that average assessment time rose to 40.2 hours from 25.6 hours after faceless assessment began on December 15, 2024. The share of consignments cleared within 48 hours fell to 70 per cent from 84 per cent, and requests for review climbed to 14 per cent from 6 per cent, according to the association's account of the committee's findings.

APTMA said the committee found no improvement in assessment quality and advised against further rollout pending a review.

According to the association, importers face delays, arbitrary value enhancements, classification disputes, repeated examinations and laboratory referrals, which it said lead to demurrage and detention charges, blocked working capital and disruption to export production.

APTMA also opposed moving the CAU to Islamabad, arguing that Karachi handles the bulk of the country's seaborne imports and that examination facilities, laboratories, terminals and technical staff are located near the ports. Relocation, it said, risks losing experienced appraisers, weakening coordination and adding costs. Faceless assessment could still be run through random electronic allocation without physically moving the unit, the association argued.

It asked the FBR to freeze further expansion or major changes to the system until an independent review is carried out in consultation with trade and industry. It also sought a dedicated cell to clear the backlog, priority for Export Facilitation Scheme and export-oriented imports, and green-channel treatment for Authorised Economic Operators and importers with a compliant record.

The letter proposed binding timelines: 24 hours for assessment and first review, 48 hours for a second review, 24 hours for examination once goods are grounded, and 72 hours for laboratory results, with automatic escalation and provisional release under Section 81 where applicable.

APTMA said these steps would reduce clearance delays and protect textile production and exports.