Customs Automation and Single Window

By Syed Tanvir Ahmad

Director (Reforms & Automation) Pakistan Customs

Federal Board of Revenue

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

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 GD’s filed since inception 3,00,000 +

2 Total export GD’s filed since inception 400,000 +

RMS Results

GD’s Processed through Green

Channel

GD’s Processed through Yellow

Channel

GD’s Processed Through Red

Channel

25% 44% 31%

GD’s Processed through Green

Channel

GD’s Processed through Yellow

Channel

GD’s 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. Quota’s 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. 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

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

20

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

21

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

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

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

Lessons Learnt

26

Way Forward

WeBOC Implementation across Pakistan

Integration with allied government agencies and FBR’s 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

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)