Cross-Border Paperless Trade Facilitation and Single ... · Pakistan’s Experience Pakistan...

Cross-Border Paperless Trade Facilitation and Single

Window System:

Pakistan’s Experience

Pakistan Customs

Federal Board of Revenue

Trade Facilitation in WTO terms

Simplification, harmonization and automation of the procedures applied to

international trade, particularly the requirements and formalities related

to importation and exportation with a view to further expediting the

movement, release and clearance of goods, including goods in transit.

Key Trade Facilitation Goals

• Reduction in Clearance Time through Risk Management System

• National Single Window

• AEO Programs

• Mutual Recognition of Customs Controls

• Coordinated Border Management

• Customs to Business Engagement

• Supply Chain Security

TRADE FACILITATION IN AUTOMATED/PAPERLESS ENVIRONMET

TRADE FACILITATION IN AUTOMATED ENVIRONMET

• Faster clearance times for legitimate trade;

• Improved compliance as a result of increased access to regulatory

information and functions;

• Enhanced Customs to Customs coordination and linkage with other

border regulatory agencies at the national and international level for

coordinated border management;

• Increased transparency in regulatory processes and decision-making;

• The use of performance measurement to improve Customs

procedures; and

• Enhanced detection of irregularities and illicit consignments through

the collection and analysis of data.

IMPLEMENTATION OF PAPERLESS TRADE:

PAKISTAN’S EXPERIENCE

History of Automation in

Pakistan Customs In 1988, FBR introduced Systems Limited

1992 computer processing (online processing) of bill of

entries was started

In 1994 a new company owned by FBR, was established

namely Pakistan Revenue Automation (Pvt.) Limited

(PRAL)

In 2001, e-filing was introduced

In 2005, PaCCS introduced

In 2009, working initiated on WeBOC

WeBOC: A Homegrown Solution

An indigenously-developed system having a dedicated

Development Team comprising of IT Professionals

A paperless system

Encompasses all types of customs business processes

Covers all modes of cargo shipment: sea, air and land

Provides end-to-end system based solutions

Fully-integrated with stakeholders: traders, terminal

operators, freight forwarders, banks, clearing agents,

Federal/Provincial Govts.

Has processed 5 million import/export transactions

F A T A

AJK

PAKISTAN: Cluster Overview – Who, What, Where (as of 10 August 2010)

Water Sanitation Hygiene

Food Security

Coordination

Emergency Telecommunications

Protection

Punjab

Balochistan

Sind

Islamabad

Gilgit Balistan

Khyber Pakhtunkhwa

WeBOC COVERAGE

3 sea ports

9 airports

11 inland stations

8 border stations

Sost

RWP

PWR

TRKM

SLKT

LHR

WHGA

FSD

MLTN

HYD

PQ

KHI

RYK

DGK

SHD

KHR KPH

Chaman

Taftan

Trade Facilitation Measures in WeBOC

WeBOC

Indigenous Paperless

Enhanced transparency

Minimized chances of

manipulation

No duplication

of procedures

FIFO assessment

Lesser human

interaction

Simplified procedures

Integrated with

stakeholders

Predictable environment

for trade

Reduced processing

time

Reduced cost of

business

24/7 online payment facility

Audit based controls

Risk selectivity

criteria

One window

Electronic Data Exchange through WeBOC

(Across-the-border linkage)

WeBOC

TIR

Pak – China FTA Afghan Transit

Trade

Linkage being developed with International Air Travel Association (IATA)

GREEN

No physical inspection

or examination

60% export cargo is

cleared through Green

Channel

30% import clearances

are made using this

facility

RED

Physical inspection

New users

Risk profiles

YELLOW

30% export cargo is

cleared through yellow

channel

40% import clearances

are made through this

channel

Assessment only

Need-based

examination is created

WeBOC: MODES OF CARGO CLEARANCE

CORE MODULES

User Management

Carrier Declaration

Goods Declaration

RMS Assessment Management

Examination Management

Manifest Clearance

Warehouse Management

20%

Federal/Provincial Government

Ministries/Departments.

Traders, terminal operators, freight

forwarders, clearing agents banks,

insurance companies

With its status updation mechanism working on real-time basis, WeBOC keeps its users intimated of the actions performed

by customs and also registers the user response(s).

USER STRENGTH

Over a period of 6 years

52,000

Systemic

approach

Constructs

profiles

System’s

brain

Risk

assessment

Layered

encryption

Decision

making

Artificial

intelligence

Reduces

vulnerability

Generates

alerts

Threat

shield

Controlled

implementation

Reviews

effectiveness

RISK-MANAGEMENT SYSTEM

• System’s reliability on RMS

• Constructs traders profiles

• A shield to system threats

• Employs artificial intelligence

• Makes risk assessment

• Performs controlled

implementation

SEAPORT CARGO HANDLING

Operational at 3 major ports of the nation

Online completion of formalities

EDI messaging with terminal operators/port authorities/custodians

Online adjudication

Using EDI, data is electronically exchanged with other ports

AIRBORNE CARGO HANDLING

Integrated air-cargo handling

E-air manifestation

Customs airline connectivity

Role for allied Govt. agencies

INLAND CUSTOMS CLEARANCE HANDLING: TP & ST

an automated cargo traffic monitoring system

e-alerts to the recipient customs stations

24/7 live messaging

covers on-port and port-to-off-port, port-to-inland

stations and port-to-border stations cargo

movements

From ports, goods are transshipped/safe-

transported to inland customs stations for

clearance.

LAND-BORDER CARGO CLEARANCE

WeBOC covers following bordering customs

stations:

1. LFU Wahga (Pak-India Border)

2. Torkham (Pak-Afghanistan Border)

3. SRDP Sost (Pak-China Border)

4. Chaman (Pak-Afghanistan Border)

5. Taftan (Pak-Iran Border)

ANDROID APPLICATION

WeBOC allows android application

provides users with the facility to interact with the system:

to know about the fiscal treatment of cargo

to have status intimation

To have customs response etc.

Showcasing of WeBOC System

Participation in Global Trade Development Exhibition held in Dubai in October –

2016

Unique opportunity to showcase WeBOC system alongside International Supply

Chain Organizatons including Dubai Ports Authority, International Road Transport

Union, Thomson Reuters, NucTech, Crimson Logic

STATISTICS

Over PKR 900 billion Govt. revenue generated during FY 2015-16

More than 1million TEUs handled during FY 2015-16 (excluding TP, ST and AT);

Examination reduced to 40% (import)

WeBOC carries the largest electronic footprint amongst the nation’s public sector organizations

73% of import and 93% export cargo is cleared in a day’s time;

35% import cargo is cleared through Green Channel facility

Operational at 3 sea ports, 9 air ports, 8 border points and 11 inland customs stations;

YEAR-WISE REVENUE GENERATION

0

200

400

600

800

1000

1200

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

FY 2015-16

Revenue

PK

R

in B

illi

on

s

TOWARDS SINGLE WINDOW

WeBOC

Traders Customs

Customs Agents

NBP/SBP

Terminal Operators

Airlines

Shipping Lines

Bonded Carriers

Warehouses

Ministries

25

INTER-MINISTRY/ORGANIZATION LINKAGE

• Ministries/organizations linked to WeBOC

Ministry of Climate Change

Ministry of Industries & Production (EDB)

SBP (Ministry of Finance)

IRS (Ministry of Finance)

• Ministries/organizations being linked to WeBOC

Ministry of Commerce

Ministry of Defence

Ministry of National Food Security & Research (Dptt. of Plant Protection)

Ministry of Science & Technology (PSQCA)

Ministry of Information Technology & Telecommunication (PTA)

Board of Investment

Enhancement of Digital Platform –

Projects at Hand

Shipping

Companies/

Agents

Terminal

Operators

Importers/

Exporters

Warehouse

Licensees Customs Agents

e-Payment

Transporters

Airlines/ Airline

Agents WeBOC

Regulatory Authorities

Development of National Single Window through WeBOC

Platform

PROJECTS AT-HAND

Enhancement of Digital Platform –

Projects at Hand

contd.

Introduction of Authorized Economic Operators (AEO)

Program

Document simplification and data harmonization– WCO

Data Model

Electronic Payment System (e-Payment)

Enhancement of Electronic Data Exchange between

Pakistan Customs and Other Customs Administrations

Enhancement of Digital Platform –

Projects at Hand

contd.

Infrastructure Upgradation of WeBOC

Human Resource Development

ISO Certification

Migration of Historical Data

CHALLENGES FACED

CHALLENGES FACED AND LESSONS LEARNT • Excessive documentation requirements

• Inefficient border-crossing procedures

• Transport and transit impediments

• Inadequate transparency and predictability

• Inadequate cooperation and coordination

• Inadequate automated processes and scarce use of ICT

• High administrative costs

• Human resource constraints

• Technological impediments

• Homegrown system: no international partners

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