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

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

Total import GDs filed since inception

3,00,000 +

Total export GDs filed since inception

400,000 +

RMS Results
Imports
GDs Processed
through Green
Channel

GDs Processed
through Yellow
Channel

GDs Processed
Through Red
Channel

25%

44%

31%

Exports
GDs Processed
through Green
Channel

GDs Processed
through Yellow
Channel

GDs 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. Quotas 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. 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

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
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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
FBRs ST & IT
integration of trade
wings

Integration of NSW
into Regional
InformationExchange 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)