Committee finds 57% increase in clearance time, 2% to 23% drop in revenue between Feb-April’25 under new FCA model
The report revealed that in November 2024, before the FCA was implemented, the average clearance time for goods declarations was 25.6 hours. This rose steadily, peaking at 46 hours in April 2025. On average, clearance time increased 57% to 40.2 hours.
“It is evident that the dwell time has significantly increased after the implementation of FCA,” the report noted. Between July and November 2024 (pre-FCA), 84% of declarations were cleared within 48 hours. This dropped to 70% between December and April 2025 (post-FCA).
For goods declarations that were both assessed and examined, average clearance time increased from 74 hours to 81 hoursa 10% jump.
The committee also evaluated the system’s impact on revenue. Under the previous system, duties collected exceeded declared values by 13% to 17%. But following FCA’s introduction, duties and taxes fell. Between February and April 2025, total revenues dropped by 2% to 23% compared to prior months. “The value addition by assessing officers is reflected in the extra revenue collected,” the report stated. This contribution dropped from 16% in July-November to 13% in December-April.
However, the number of documents called for examination dropped from 37% to 21%.
The Director General of Risk Management System and the Member Operations FBR Customs, both part of the review committee, did not respond to requests for comment. The report showed that customs officers now refer more goods declarations to senior officers after assessment. Referrals rose from 6% in the old system to 11% under FCA. Lab referrals also doubled.
The WeBOC system allows traders to file reviews before principal appraisers and assistant collectors. Under FCA, such appeals increased from 6% to 14%, further delaying clearance and increasing workload. “Increased examinations, senior officer referrals, lab tests, and especially reviews have offset any time saved from reduced document calls, thereby increasing overall dwell time,” the report stated. It also noted that the quality of assessments had deteriorated, as indicated by the surge in review filings.
Langrial admitted that clearance times at appraisal and examination stages had risen due to the increased number of reviews filed by importers. “At the design stage, we did not anticipate the rise in reviews,” he said, adding that FBR would introduce virtual hearings by assistant and deputy collectors starting July to address the issue.
The new FCA system was designed to address long-standing issues in customs processes by enabling remote, technology-driven assessments and minimising physical contact through automation. During the first few weeks of FCA’s implementation, the average time for container clearance had initially improved, dropping from 108 hours to 66. However, the long-term data now shows the opposite trend