FBR’s FCA system under fire amid false under-invoicing allegations

Pakistan Customs emphasised that internal audits often quoted in media are conducted by FBR itself
An undated image of FBR office. — APP
An undated image of FBR office. — APP

Pakistan Customs has categorically rejected media reports of widespread abuse of its Faceless Customs Assessment (FCA) system for the under-invoicing of imported luxury cars. 

The department said that the claims about a 2023 Toyota Land Cruiser processed for just Rs17,635, for example, were all wrong and mischaracterised the facts.

Notably, the FCA was introduced in December 2024 to reduce the problems of human interaction, streamline trade and check and enhance transparency of customs clearances for all persons entering ports. 

Customs officials noted that some individuals, who previously benefited from loopholes in the manual system, have been spreading misleading narratives to discredit FCA and push for its reversal.

Moreover, Pakistan Customs clarified that the 2023 Toyota Land Cruiser was assessed correctly and the clearance value was approximately Rs10.05 million, which allowed the recovery of Rs47.2 million in duties and tax, which clearly contradicts any claims of under-invoicing. 

The department added to the response to the accusations of trade-based money laundering and clarified that the vehicles were imported by overseas Pakistanis under the gift and transfer of residence schemes of the customs administration, which do not involve any outward remittance of foreign exchange and existed long before FCA was even born.

Pakistan Customs emphasised that internal audits often quoted in media are conducted by FBR itself, as part of routine reviews to identify and improve potential gaps in the new system, not as evidence of wrongdoing.