Customs Automation and Single Window

Scheme of Presentation

History and basic features of automated system

Cost of development

Performance vis--vis previous semi automated system

Single Widow introduction in Pakistan

Stages achieved so far

Whats remaining to be done

Regional connectivity Initiatives taken

Lessons learnt

3

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

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

Manual system WeBOC

Customs Clearance Time 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

Documentary Requirements

Goods Declaration Paper-based

multiple copies

Electronic

Carrier Declaration Submission on

electronic media

Online submission and

amendment

Physical intervention of goods 100% Appx 30%

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

Shipping Lines / Agents

Internal Users Import + Export

25333 1782 237 711

Goods Declarations Status

S.No Title Facts

1 Total import GDs filed since inception 3,00,000 +

2 Total export GDs filed since inception 400,000 +

RMS Results

GDs Processed through Green

Channel

GDs Processed through Yellow

Channel

GDs Processed Through Red

Channel

25% 44% 31%

GDs Processed through Green

Channel

GDs Processed through Yellow

Channel

GDs Processed Through Red

Channel

78% 12% 10%

Exports

Imports

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.

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)

Single Window Components

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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. Quotas Management

13. Users Management

14. Lab Management

15. Transshipment

16. Inter-port movement

17. Recoveries Management

18. Adjudication Management

ACCESS -- Automated Customs Clearance System

19. Valuation (VR , data base)

20. Manifest Clearance System

21. PD Accounts

22. Transit for US / NATO/ISAF

23. Electronic Data Interchange

24. SROs 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

Log Out

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, anti-

dumping, 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

Automated Custom Clearance Tariff & Integrated Policy

Enhanced Cargo Handling & Port Optimization

Integrated Regulatory Authorities

k

TARIP ----- Tariff & Integrated Policy

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Log Out

PaCCS Components

ECHO connects port authorities, carriers (shipping agents and co-loaders), customs etc

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

Automated Custom Clearance Tariff & Integrated Policy

Enhanced Cargo Handling & Port Optimization

Integrated Regulatory Authorities

k

ECHO --- Enhanced Cargo Handling & Port Optimization

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Connects the regulatory authorities involved in imports/exports:

LINKS DEVELOPED:

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

Automated Custom Clearance Tariff & Integrated Policy

Enhanced Cargo Handling & Port Optimization

Integrated Regulatory Authorities

INTRA -- Integrated Regulatory Authorities

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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

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)

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)

Lessons Learnt

25

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

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

Lessons Learnt

26

Way Forward

WeBOC Implementation across Pakistan

Integration with allied government agencies and FBRs ST & IT wings

Creating a National Single Window bringing business, logistic providers, service sectors on a platform for seamless integration of trade

Integration of NSW into Regional Information-Exchange System

Thanks

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)