New assessment system causes port congestion

KARACHI: Businessmen said that transitioning from the clearing goods process to the recently launched Faceless Customs Assessment System (FCAS) has caused a massive backlog of port consignments.

Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani said the FCAS, which has brought human intervention to zero, should be improved further by establishing separate processing queues for manufacturers-cum-exporters, general industries, and commercial importers. By operating these queues concurrently, the clearance process can be streamlined further, ensuring timely processing for each category, minimising disruptions in business operations, and bringing discrimination to an end.

He urged the authorities to expedite the consignment clearance process to mitigate potential losses faced by the business community due to delays that were causing demurrage and detention losses.

Industrial goods are currently being handled on a par with regular commercial imports, he said, adding that the emerging situation demands a war footing strategy for clearing the backlog of consignments by keeping all types of clearing-related activities, including banks and customs fully operational on Saturdays and Sundays until the port congestion is completely dealt and port activities return to normalcy.

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For improving accountability and efficiency in the consignment clearance process, appraisers should be required to record their attendance barometrically at the start and end of each workday to ensure transparency in work hours, besides meeting predefined daily targets assigned to them for processing consignment entries, he said. Pakistan Chemicals and Dyes Merchants Association (PCDMA) Chairman Salim Valimohammad said the huge backlog of consignments is causing potential financial losses for importers in the form of demurrage and detention charges.

He feared supply chain issues for the industries if the timely clearance of consignments, especially those containing imported raw materials, is not ensured. He warned that this would not only delay the delivery of export orders but also have a detrimental impact on the country’s overall export performance.

He acknowledged the benefits of the FCAS but emphasised that proper administrative preparations should have been made before its implementation to ensure the efficient and timely clearance of consignments.

Published in Dawn, December 22nd, 2024