The Federal Board of Revenue confirmed on Wednesday that Faceless Customs Assessment operates as a digital system rather than a port-dependent function, stating that moving the Central Appraising Unit to Islamabad is a permanent step in modernising customs operations.

Officials explained that the change aims to limit discretionary powers, decrease direct contact between taxpayers and officers, and promote transparent decisions driven by systems. While the assessment duty moves to Islamabad, other duties stay with the local collectorate, meaning physical checks and port work continue in Karachi where traders can still visit for help.

Addressing issues brought up by the All Pakistan Textile Mills Association about clearance delays, valuation disputes, and lab referrals, the tax authority noted that early implementation figures do not show recent progress. Average clearance time dropped from 40.2 hours to 20.57 hours, and 83% of consignments clear within 48 hours, though the board promised to fix real operational issues.

The agency added that Section 25 of the Customs Act, 1969 still governs valuation, meaning digital assessment does not permit random increases in declared values and officers must follow legal methods. Digital tools and specialist consultations aim to raise assessment quality while cutting down personal contact.

This modernization includes the Digital Invoicing System and AI-based Digital Production Monitoring to track transactions, improve production visibility, and stop tax evasion. The board noted that global examples like India, Singapore, and Dubai show how digital customs systems improve transparency and trade facilitation.

To speed up clearances, the agency plans dedicated backlog handling for export consignments and green-channel support for compliant importers, alongside proposed service timelines of 24 hours for initial assessment and 48 hours for second reviews. Trade groups were advised to file Goods Declarations before vessel arrival to lower dwell times.

The board invited the textile mills association and other trade bodies to provide specific Goods Declaration numbers for reported delays and valuation disputes so officials can examine and resolve them.