PAKISTAN CUSTOMS COMPUTERISED SYSTEM (PaCCS) --- END-TO-END CUSTOMS SOLUTION

1. PAKISTAN CUSTOMS COMPUTERISED SYSTEM (PaCCS) --- END-TO-END CUSTOMS SOLUTION PaCCS and TRADE FACILITATION UNCTAD October 2006 Dr. Mohammad Saeed Permanent Mission of Pakistan to the WTO Geneva mohammad.saeed@wto-pakistan.org

2. Federal Tax Receipts and the role of Customs • Total trade volume of Pakistan = 45 b US$ • Annual tax receipts= approx 12 b US$ • 72% Collected at Imports by Customs = approx 8.51 b USD (Custom Duty, Sales Tax, Income Tax & Excises) • 27 other laws are enforced by Customs.

3. Pre-PaCCSoverview of stumbling blocks • First use of computerized systems =early 80’s • Fragmented system, Multiple Windows • Differing software with little or no interface • Paper environment • Complex clearance procedures • Lack of information sharing • Integrity Issues

4. Dwell Time (Pre PaCCS) 50% of cargo cleared from the port 11 days after arrival in the country

5. Clearance Time ( Pre-- PaCCS) 50% of declarations completed by Customs 5 days after filing of declaration

6. Little or no trade facilitation • 50 % cargo received clearance after 11 days (unloading to exit from the port) • Just-in-time inventories non- existent.  • Business problems.  • Loss of revenue for state and private sector • Customs controls---- yes • Trade facilitation ?

7. Principles of Customs reforms(Project conceived in Feb 2002 as part of CARE) • Completely Paperless • Web enabled • Online with all domestic stakeholders in the supply chain • Online with all domestic regulatory authorities • Advanced information of cargo, crew and passengers • Risk management • PaCCS to be home grown, motto “Built by Customs for Customs”

8. PaCCS - features • PaCCS became operational on March 23, 2005 at one terminal (pilot project) • Single window • Paperless virtual environment • Self assessment • Clearance Speed • Integrated Customs • Integrity

9. PaCCS Components 1.TARIP -Tariff & Integrated Policy 2. INTRA -Integrated Regulatory Authorities 3. ECHO -Enhanced Cargo Handling & Port Optimization 4. ACCESS -Automated Customs Clearance System

10. TARIP -Tariff & Integrated Policy • TARIP =backbone of the new system • Complete set of regulations for import or export of cargo at HS line level : • The Import Tariff rates • The Export drawback rates • Details of Import & Export restrictions • Details of exemptions • Details of documentary requirements • List of declaration requirements • TARIP is online

11. INTRA -Integrated Regulatory Authorities INTRA connects all the regulatory authorities involved in imports, exports of cargo. Some examples are : • Government Ministries & Departments • Central Board of Revenue and its wings • All Customs Collectorates • All Sales Tax Collectorates • State and commercial banks

12. ECHO -Enhanced Cargo Handling & Port Optimization ECHO connects the carriers, Customs and Custodians and provides : • One electronic document for the carriers • Real time inventory and monitoring of ports • No Customs staff at the gates (e-gates) • Seamless, Transits and Transshipments • Risk screening prior to arrival of the cargo under customs Controls. • Instant duty drawbacks with the sail of vessel

13. ACCESS -Automated Customs Clearance System Salient features of ACCESS • Carrier declaration • Goods declaration • Payments • Risk Management System • Assessments • Clearance and release • Status Reporting • Law Cell and Adjudications • Warehousing • Licensing • Transits and Transshipments

14. PaCCS Advantage • Reduces the cost of doing business • Just in time inventory • Reduced clearing agency charges • Reduced port charges (less examinations 4%, 2%) • No un receipted expense • Better cash flow for trade • High predictability and transparency • Simplified procedures • Built to best international practices (standardized)

15. Performance and Some results • Total GDs cleared: 90,343 • Rev. Collected: 500 Mil USD • Containers cleared: 2,22,675 • Total # of Online Users: 13,700 • Speed - 70% of GD’s cleared in 5 min - 84% cleared in less than 30 min - 7 % needed more than 24 hrs

16. Performance & Some results-contd • Examination and Assessment regime • For imports: Pre PaCCS 100% & PaCCS 4% • For exports: previously 100% and now 2% • integrity issues. 

17. PACCS Users by location • Users • Traders • Agents • Shipping Lines • Customs formations • Warehousing • Licensing • Quotas • Cargo receipt/dispatch • Sales Tax formations • Govt. ministries/ depts. • Terminal authority • Central Board of Rev • Tariff • Exemptions • Drawbacks Peshawar Rawalpindi Sialkot Lahore Faisalabad Internet Multan Quetta PACCS online Users Port Int User external Banks Karachi 143 6296 3 Lahore 28 1755 2 Sialkot 12 244 1 Fasialabad 11 225 1 Rawalpindi 16 174 1 Peshawar 14 168 0 Multan 12 106 1 Islamabad 33 89 1 Hyderabad Gawadar Karachi

18. Virtual Customs accessible over the web Peshawar Rawalpindi Sialkot Lahore Faisalabad PACCS Multan Importers, Exporters, agents & banks using PACCS facilities Port external Banks Karachi 6296 3 Lahore 1755 2 Sialkot 244 1 Fasialabad 225 1 Rawalpindi 174 1 Peshawar 168 0 Multan 106 1 Quetta Hyderabad Gawadar Karachi

19. Some Lessons Learnt • Holistic and comprehensive solution but progressive implementation • Do not reinvent the wheel • Automation means much more than putting a PC on each desk • First decide the business process and then write the law • Don’t change the team midway • Consult, consult and consult • No one knows Customs more than Customs itself • Adopt best practices

20. Future Steps • Roll out (Already operational on other two terminals since 14 August 2006) --- Only inland stations need to be covered by June 2007 • Integrated API & immigration • G2G communication TN/TF/W/135