The Final Report of the Review Committee on FCA/CAU provides an in-depth analysis of the impact of FCA on various aspects of customs operations, particularly focusing on dwell time, revenue collection, and document/examination trends. The analysis covered data from July 2024 to April 2025, comparing periods before and after the FCA implementation.
A notable observation is the increase in dwell time. For assessed GDs that were not examined, the average dwell time before FCA implementation was around 25.6 hours per GD.
This increased to 40.2 hours per GD post-FCA, reflecting a 57% rise. Similarly, for GDs that were assessed and either examined or not examined, the average dwell time went from 73.6 hours to 80.6 hours per GD, marking a 10% increase. The percentage of GDs cleared within 48 hours fell from 84% to around 70% after FCA was implemented, indicating a slowdown in the customs clearance process.
The tables and figures in the report clearly show that while there has been a decline in clearance speed, the assessment processes themselves became more thorough, as evidenced by changes in document calling and examination practices. The data reveal that the percentage of GDs where documents were called dropped from an average of 38% during July to November 2024 to about 20% in the subsequent five months. Interestingly, there was also a notable trend in examination approvals. Initially, examination approvals declined significantly in December 2024 and January 2025, with an average of only 3%. However, beginning in February 2025, examination approvals began to rise sharply, reaching nearly 14% in April 2025.
Revenue data provide further insights. The analysis indicates that the additional revenue collected as a percentage of declared duties and taxes averaged 16% from July to November 2024 but declined to 13% in the post-FCA months. While the absolute figures for revenue collection showed some fluctuation, the overall trend suggests that the introduction of FCA did not immediately improve revenue collection effectiveness and may have even temporarily disrupted the momentum of revenue growth.
The report attributes these shifts partly to the exclusion of certain bulk imports like edible oil from the purview of FCA at the end of January 2025. This exclusion may have skewed the data for some months but is unlikely to account for the consistent trends seen in dwell time and document calling.
The findings underline that while the FCA was expected to streamline customs operations, the immediate effect has been an increase in the time required to process GDs. This may have been due to the adjustment period needed for both officers and importers to adapt to the new system. The drop in document calling during the early months of FCA suggests a possible cautious approach by officers as they familiarized themselves with the new system’s requirements and processes.
The overall implication of the report is that FCA implementation needs to be fine-tuned to achieve the desired balance between speed and thoroughness in customs operations. While dwell time has increased, the gradual rise in examination approvals in recent months hints at a learning curve and the possibility of improved assessment quality in the long run. However, the decline in additional revenue collection as a percentage of declared duties and taxes suggests that the FCA’s immediate impact on revenue enhancement has not been as strong as expected.
The report’s detailed analysis provides a solid basis for further policy and operational adjustments. By highlighting these trends, it underscores the importance of continuous monitoring and data-driven decision-making to ensure that FCA’s objectives of efficiency and revenue growth are ultimately met. The experience also offers valuable lessons for similar initiatives, emphasizing the need for careful implementation, consistent training for officers, and a flexible approach that can respond to emerging challenges without compromising the core goals of customs administration.
