Customs Automation and Single Window By

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
syed.tanvir@fbr.gov.pk
syedtanvirahmad@yahoo.com
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)