Cross-Border Paperless Trade Facilitation and Single Window System: - - PowerPoint PPT Presentation

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

• perators, 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)

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

• f

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

• r 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

System temic ic appr proac

• ach

Constr truct ucts s prof

• files

iles System’s brain ain Risk sk assess essment ent Laye ayered ed encryp yption ion Decis ision

• n

makin king Artif ificia icial l intellig elligen ence ce Reduces Reduces vulner nerab ability ility Gener erat ates es alerts ts Threat eat shield eld Contr trolle

• lled

d imp mplem ement entat ation ion Re Review views s effectiv ctivene eness ss

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

200 400 600 800 1000 1200 FY 2011- 12 FY 2012- 13 FY 2013- 14 FY 2014- 15 FY 2015- 16 Revenue PKR in Billions

TOWARDS SINGLE WINDOW

WeBOC

Traders Customs Customs Agents NBP/SBP Terminal Operators Airlines Shipping Lines Bonded Carriers

Warehouses

Ministries

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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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