FBR requested to rescind centralization of Goods Declaration from Karachi

From Our Correspondent

PESHAWAR: Senior Vice President (SVP) Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), Zia ul Haq Sarhadi has demanded Federal Board of Revenue (FBR) to take a review of its recent decision of centralization of Goods Declarations (GDs) from Karachi, causing difficulties for business community due to delay in processing.

In a press statement issued here on Wednesday, Zia-ul-Haq Sarhadi said businessmen especially those operating through upcountry dry ports such as Peshawar are facing practical difficulties due to this new system of GDs processing.

“Under the current system, all Goods Declarations (GDs) are routed to the Central Assessment Unit (CAU) in Karachi, even if they are filed at local dry ports,” explained Zia who also holds the office of President Frontier Custom Clearing Agents Association (FCCA).

This centralization has resulted in delays in clearance, as local agents cannot directly communicate with the assessing officers in Karachi in case of queries or objections are raised,” he added.

Additionally, the response time has been increased which is causing extra costs in the form of demurrage, detention, and storage charges, Zia continued.

Zia also mentioned findings of a report by the Directorate General of Customs Risk Management documenting sharp rise in customs processing times under the FCA regime.

For goods declarations (GDs) that were assessed but not physically examined, the average dwell time surged by 57%, climbing from 25 hours per GD in July 2024 to 46 hours by April 2025, reads the report.

“These issues place an unfair burden on regional businesses and discourage the use of dry ports, which were established to make trade easier for remote areas,” Zia observed.

In light of these challenges, PAJCCI requests FBR for decentralization of the Faceless Assessment System by setting up regional assessment units at major dry ports such as Peshawar, Quetta, and Multan.

These units should be empowered to conduct assessments digitally, while following the same rules and transparency standards as the central system.

Additionally, we suggest improving the WeBOC platform to allow clearing agents to respond to objections, submit clarifications and upload documents in real-time, with a fixed response timeline from customs officers.

This will help avoid long delays and also aligns with the government’s broader goals of promoting ease of doing business and inclusive economic growth across all provinces.