The Federal Board of Revenue (FBR) has suspended manual vehicle auction data entries in its Web-Based One Customs (WEBOC) system following the discovery of unauthorized use of official user IDs. The move, effective July 13, 2025, aims to curb fraud and enhance transparency in customs auctions, aligning with Pakistan’s broader push for digitalized trade processes.
Unauthorized ID Use Sparks Action
The FBR’s Directorate General of Reforms and Automation, Customs House Karachi, detected irregular activity linked to user IDs assigned to Assistant Collectors (AC) and Deputy Collectors (DC) for auctions. An investigation revealed that three user IDs—Zeeshan (CUS-3540517) and Yousuf Khan (CUS-3135725) created by the Directorate of IOCO, Lahore, on April 21, 2025, and Waqas Khattak (CUS-2914393) created at the Collectorate of Customs, Air Freight Unit (AFU), Faisalabad, on February 26, 2025—were misused to input data for 55 auctioned vehicles. Surprisingly, these vehicles were linked to MCC Appraisement West, Karachi, raising concerns about jurisdictional discrepancies.
A total of 1,873 auctioned vehicles were recorded via the manual WEBOC Auction Module, prompting the FBR to disable it pending a comprehensive data verification process. The breach underscores ongoing challenges with manual processes, echoing past concerns about auction irregularities, such as vehicles sold below reserve prices, as reported by The Express Tribune in May 2024.
Shift to E-Auction Module
To prevent future misuse, the FBR has directed all Customs Collectorates and Directorates to adopt the E-Auction Module, introduced in 2020 to facilitate online bidding and reduce human intervention. This platform, detailed in FBR’s Customs Rules 2001 amendments, ensures a digital audit trail and bans non-paying bidders for two years, enhancing accountability. The transition aligns with the FBR’s broader digitalization efforts, including the Pakistan Single Window (PSW) and a new AI-based Customs Clearance System launched on July 7, 2025, which has improved goods declaration processing by 83%.
Context and Implications
The WEBOC system, developed in 2012 by Pakistan Customs and PRAL, handles over 45% of FBR’s annual revenue and supports paperless trade. However, past issues, including fraudulent clearances and under-invoicing, have prompted forensic audits and system upgrades. The current ID misuse highlights vulnerabilities in manual processes, reinforcing the FBR’s push to replace WEBOC with a new digital system by 2026, in collaboration with PSW and international consultants like KGH and Maersk.
For Pakistan, where a $500M+ freelancing economy and AI training initiatives signal tech growth, this move strengthens trust in digital trade systems, crucial for exporters and importers. Newsera: Pakistan’s AI Training Push It also aligns with global standards set by the World Customs Organization (WCO), enhancing Pakistan’s trade ecosystem.
What’s Next
The FBR’s suspension of manual entries will remain in place until data verification is complete and the E-Auction Module is fully implemented. The agency is also investigating the jurisdictional inconsistencies and potential revenue losses, with disciplinary actions possible under the Customs Act 1969. This step underscores Pakistan’s commitment to transparent, tech-driven customs operations, vital for economic growth and international trade.
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