By Syed Tanvir Ahmad Director (Reforms & Automation) Pakistan Customs Federal Board of Revenue Customs Automation and Single Window Scheme of Presentation • History and basic features of automated system • Cost of development • Performance vis-à-vis previous semi automated system • Single Widow introduction in Pakistan • Stages achieved so far • What’s remaining to be done • Regional connectivity – Initiatives taken • Lessons learnt Genesis & Evolution of Technology 1981-83 Appraiser Guidance System; Statistical Report System; Batch Data Entry System 1992 On-line Transaction Processing System (OLTP) 2004 Implementation of One Customs System 2005 Roll Out of PaCCS at KICT, PICT and QICT 2009 Development of WeBOC at Islamabad Airport 2011 Pilot run at Port Qasim 2012 Roll Out of WeBOC Karachi 2013 Country-wide Roll Out 3 Basic Features Of WeBOC • Paperless system – rolled out in 2012 (Karachi) 2013 (whole country) • On-line -- manifest filing (ships) & goods declaration filing (traders) 24/7 • Online payments (through PD account) • All custom processes performed on-line by customs staff • Assessment based on examination reports and images uploaded • Risk Management System (Green, Yellow, Red channels) • Inspection/Examination of goods reduced from 100% to 30% Basic Features Of WeBOC • First-in, First-out (FIFO) • Online adjudication process • Complete log of all activities -- strict controls • Communication with custodian of goods through EDI • Transparency and less cost of doing business • Minimize Dwell Time Cost of Development • M/s Agility demanded more than 100-150 million dollars (Rs 10 billion) for paperless software ‘PACCS’ • WeBOC developed indigenously --- One million dollars (Rs 10 crore) -- • Developed by: – Officers of Pakistan Customs; and – M/s Pakistan Revenue Automation Limited (PRAL) – IT company owned by FBR PRE-WEBOC PAPER BASED SYSTEM 34 signatures and 62 verifications on every GD Customs documents had to be carried from desk to desk WeBOC Assessment Hall- Sambrial WeBOC Facilitation Centre- Sambrial WeBOC Exports Rebate Section- Sambrial WeBOC Data Centre-Karachi Performance Customs Clearance Time Manual system WeBOC More than 4 days Imports-54% within 24 hours Exports-98% within few hours Import clearance steps 26 steps 1 step Export clearance steps 10-12 steps 1 step Goods Declaration Paper-based multiple copies Electronic Carrier Declaration Submission on electronic media Online submission and amendment Physical intervention of goods 100% Appx 30% Documentary Requirements Training Imparted • Traders/importers/exporters • Customs clearing agents • Terminal operators/custodian of goods (NLC, Railways, Shaheen, PIA, Gerrys • Courier companies (DHL, FedEx etc.) • Shipping agents/lines • Bonded carriers • Warehouse keepers • Airlines • Laboratories • Banks (SBP and NBP, others) • Other government ministries and agencies--PSQCA (Standard Quality Authority), Plant Protection, Engineering Development Board, Anti Narcotics Force, Commerce, Foreign Affairs, Interior, National Tariff Commission etc User Registration Status Traders Clearing Agents 25333 1782 Shipping Lines Internal Users Import + Export / Agents 237 711 Goods Declarations Status S.No Title Facts 1 Total import GD’s filed since inception 3,00,000 + 2 Total export GD’s filed since inception 400,000 + RMS Results Imports GD’s Processed through Green Channel GD’s Processed through Yellow Channel GD’s Processed Through Red Channel 25% 44% 31% Exports GD’s Processed through Green Channel GD’s Processed through Yellow Channel GD’s Processed Through Red Channel 78% 12% 10% Single Window – Road Map • Ist Stage: Paperless Customs: e-payment of import duty /taxes - e-documents exchange with terminal operators/port authorities. • 2nd Stage: Port Community Information Exchange: e-document exchange with other stake holders -- importers, exporters, CA, shipping lines/their agents, bonded carriers, freight forwarders, insurance companies, Airlines, EPZ, etc. • 3rd Stage: Other Government Agencies for Paperless Permits and Certificates: connecting with other governmental agencies, trade, logistics –departments like Commerce, NTC, TDAP, Industry, EDB, Textile, Communication, Defence, Agriculture, Quarantine, VAT, I Tax, Law Enforcement Agencies (ANF, Interior, agencies) etc. • 4th Stage: National Single Window: An integrated national e-logistics platform with traders, logistics, service providers information exchange (booking of cargo to home delivery). • 5th Stage: Regional Single Window: Regional information exchange system. Single Window Components SWI comprises of four essential components: ACCESS (Automated Customs Clearance System) TARIP (Tariff & Integrated Policy) ECHO (Enhanced Cargo Handling & Port Optimization) INTRA (Integrated Regulatory Authorities) 18 ACCESS -- Automated Customs Clearance System 1. Carrier declaration module 2. Goods declaration module 3. Assessment module 4. Examination module 5. Payment module 6. Security management module 7. Duty Tax Computation Engine 8. Risk management 9. Clearance system 10. Refunds Management 11. Rebate Management 12. Quota’s Management 13. Users Management 14. Lab Management 15. Transshipment 16. Inter-port movement 17. Recoveries Management 18. Adjudication Management 19. Valuation (VR , data base) 20. Manifest Clearance System 21. PD Accounts 22. Transit for US / NATO/ISAF 23. Electronic Data Interchange 24. SRO’s Management 25. Tariff Management 26. TARIP 27. Warehousing 28. Exemption Regime 29. Post Clearance Audit 30. EDB (CKD kits) 31. KPT 32. Bulk Solid 33. Bulk Liquid 34. Sealing / De-sealing 35. Safe Transportation 36. Agents License Management TARIP ----- Tariff & Integrated Policy Automated Custom Clearance Tariff & Integrated Policy Enhanced Cargo Handling & Port Optimization Integrated Regulatory Log Out Authorities TARIP – gives complete picture of regulations for import or export. Following details are linked with each HS code: Tariff rates (like duties, taxes, FED, income tax, antidumping, countervailing, various surcharges & cess etc Export drawback rates Banned items / Restrictions of import & export policies Exemptions / concession and their requirements Details of documentary requirements List of declaration requirements Documentary and certifications requirements Other conditions / requirements 20 ECHO --- Enhanced Cargo Handling & Port Optimization ECHO connects port authorities, carriers (shipping agents and co-loaders), customs etc Automated Custom Clearance Tariff & PaCCS Components Integrated Policy Enhanced Cargo Handling & Port Optimization Log Out Integrated Regulatory Authorities It provides following advantages: One electronic document for the carriers Real time inventory and monitoring of ports Terminal Operators/Port Authorities linked with EDI e-Gates -- No customs staff at the gates No requirement by customs for export manifest Risk screening prior to arrival of the cargo under customs controls Instant duty drawbacks with the sail of vessel 21 INTRA -- Integrated Regulatory Authorities Connects the regulatory authorities involved in imports/exports: LINKS DEVELOPED: Automated Custom Clearance Tariff & Integrated Policy Enhanced Cargo Handling & Port Optimization Integrated Regulatory Authorities Federal Board of Revenue and its wings All VAT and Direct Tax Commissionerates Central bank / NBP and Scheduled Banks (partially) Transport Sector (registered with customs) Ministry of Commerce Ministry of Production Plant and Animal quarantine UNDER DEVELOPMENT: Government Ministries & Department (such as: Agriculture, Oil and Gas, Health, Environment, National Tariff Commission, other ministries/departments etc 22 SWI Internal Users – FBR Departments 23 What is to be done?? • Declare Customs as lead agency (its in more than 35 countries) • Support and monitoring from the highest level • Monitored by the Prime Minister office in many countries • Legal frame work • Proposed that a summary may be moved to the Prime Minister for constitution of a committee: – Finance, Commerce, Industry, Production – Communication, Science and Technology, – Agriculture, Textile, Planning, etc Lessons Learnt Strong political will & commitment for reforms from higher management their (initial automation driven by junior officers and opposed by majority) Ownership of the reform by customs -- Must get all stakeholders on board Strategic /long term planning -- initially not focused and directionless Our emphasis kept on changing --- from automation to trade facilitation to control corruption and to maximize revenues Liberate the reform team from routine jobs (project office set up, purchasing / tendering process, hiring of IT consultants etc) Customs must re-engineer its business processes (not necessarily automate old archaic manual process) 25 Lessons Learnt Legislative Inertia (difficult to get through legislation and procedural approvals relating to other ministries/departments) Resistance to change Requirement of IT staff must be properly gauged Capacity Building / Training (facing capacity issues for junior staff) Customs must think out of the box (Question everything and include diverse stake holders in thinking process – planning as well minute details of processes) Lack of Self Reliance – Automation team has no funds to finance expenses of reform project 26 Way Forward WeBOC Implementation across Pakistan Creating a National Single Window bringing business, Integration with allied government logistic providers, service sectors on a agencies and platform for seamless FBR’s ST & IT integration of trade wings Integration of NSW into Regional InformationExchange System Thanks [email protected] [email protected] Regional Connectivity • Afghanistan Customs – The EDI with Afghan Customs – Soft launching (pilot run) initiated on Nov 01, 2013 – Pakistan Customs sending EDI messages for transit consignments leaving Karachi Port for Torkham only – It will be replicated at Chaman after sucessful testing – Afghan Customs sending EDI msg (data). However, there are some problems in getting correct data and reconciliation is not possible – Afghan Customs is working on correction. Pointed out to afghan team and Canadians – In March work shall be started on IGM receipt for Afghan imports in Pakistan Regional Connectivity • Connectivity with India – Efforts to harmonize border and trade controls – India and Pakistan have harmonized manifest format (Export General Manifest of India is Import General Manifest of Pakistan) – We shall start work on EDI in January, 2014. • Connectivity China – Working group constituted by FBR to develop EDI – Development of electronic certificate of origin – FTA verification – Connectivity for exchange of data also • Connectivity with CAREC (Central Asian Regional Economic Cooperation) – Efforts under way to extend EDI msg to Heritan and Sher Khan borders – Testing with Afghan Customs to be commenced soon – EDI with CAREC to commence subsequently • Airlines --- (e-pouch)