ISLAMABAD (July 16 2010): The Federal Board of Revenue has outrightly rejected an appeal filed by the All Pakistan Customs Agents Association (APCAA) to stop customs authorities from switching Pakistan Customs Computerised System (PACCS) to 'One Customs' clearance system. Sources told Business Recorder here on Thursday that the FBR has submitted its comments on the closure of PACCS to the Prime Minister in this regard.
Responding to an appeal filed with the PM by the APCAA, the FBR observed that the APCAA has not been issued license of trade organisation under Trade Organisation Ordinance 2007 and therefore their subject appeal is unlawful. Sources said that the Web-based 'One Customs' carry all important features of the PACCS. Secondly, Commerce Ministry has not recognised the APCAA as registered association. Therefore, the association is not legally authorised to submit its views on behalf of all customs agents across the country.
In its presentation, the association has observed that it is clear that PACCS collected more revenue than the other Collectorates in Karachi. The high tariff items such as vehicles have been shifted out of PACCS by the FBR and still PACCS is more effective. Furthermore the Defence Imports although have a Declared Value of Re1 yet brings about Rs 5 billion of revenue and the same is reflected in the Appraisement Collectorate. The FBR responded that since the data is not showing the source as well as parameter/criteria for comparison therefore, no comments can be offered.
The association said that the trade volume of importers and exporters increased rapidly and the waiting of vessel at outer anchorage is reduced to zero. All this was made possible due to fast clearance system (PACCS) which was made available by FRB. All the container terminals, shipping companies, banks are linked up with the systems duties and taxes, income tax, sales tax and excise duties are paid online. All this is being done by FBR with the consultation of the stakeholders for which we all appreciated and extended all of our co-operation and assistance when and where required. It is understandable that a room for improvement is always there and every system needs up gradation with advancement is the technology, so is the case of (PACCS) system. Unfortunately in this case instead of advancement in the technology FBR is now taking a U turn, abolishing the existing Pakistan Automated Clearance System (PACCS) replacing with Pral/One Customs which is a manual system for the clearance of goods Customs from May 28, 2010 ie in next 4 days. The FBR responded that the replacement of software is a temporary/stop gap arrangement, which will be followed by implementation of a suitable automated customs clearance system in a transparent way through open bidding/tenders.
The association has grievance that huge volume of import and export containers/LCL/bulk cargo to and from all the Customs Stations/Dry ports and off dock container terminals in Pakistan would be disturbed and moreover insecure and irreparable losses can be foreseen in shape of delays, demurrages, detections etc. The delay in import clearance means delay in supply of raw material to the industries, which will cause delay in manufacturing and would hence increase cost of doing business and will put the financial burden on the consumer.
On the other had delay and detention would cause expiry of letters of credit amid cancellation of export orders which would cause loss arid reduction of inflow of our foreign remittance from abroad. Further more the delays in clearance of goods would cause the congestion at the container terminal yard which would certainly effect the shipping movement and one can for see vessel waiting outer encourage as used to he six to eight years back when PACCS was not introduced. Delay in vessels berthing at the port would cause increase in freight for all imports and exports by the shipping lines. You can imagine how would the multinational companies react to such increases in this competitive market.
The FBR responded that the APCAA observation are based on mere conjectures and assumptions devoid of any concrete evidence and seems subjective in nature therefore, no comments can be offered. The association said that currently around 250,000 containers of imports and exports are being handled per month by three oil dock container terminals at Karachi which is expected to be doubled in the upcoming years and the same is impossible to be handled through the old manual system which the FBR is now trying to impose on the trade without taking on board the stakeholders, the association claimed. The FBR responded that the said assumption is not supported by solid facts on grounds, therefore, no comments can be offered.
The APCAA said that the question now arises is that, "Is the computerised system for clearance of goods (PACCS) ineffective?" and the answer is "NO", the system is not bad, but in contrast the people operating the system are not professionals nor trained hence are incapable to achieve maximum output; "Why?" This is a question which perhaps is very clear, and the answer would be than the Pakistan customs Automated Clearance System (PACCS) was never made operational as promised and in its latter and spirit; and if the same is done even today the (PACCS) would be a dynamic system. The FBR responded that the allegation are being levelled with reliance on mere assumptions and without any scientific analysis. Therefore no comments can be offered, the FBR added.
The association further stated that instead of going ahead we are now being pushed back to the manual system after 5 years of diligence which the stakeholders have given to this computerised system.
The FBR responded that the Pakistan Customs is committed to implement best relating to a paperless and automated customs clearance system in line with international obligations. The association claimed that the issue of most significance is that where is the National Trade Corridor Program and why the stakeholders are not being consulted. Further, has this shift of systems been approved by the Cabinet NTC Task Force and if so, on what grounds.
The FBR observed that based on feedback from internal and external stakeholders as well as findings of system audit of PACCS, GOP has decided not to further rollout PACCS through 'Agility'. The association said that the quality of the project is: It is a paperless environment, lesser human interaction and goods are cleared in matter of hours and not days which was the promised result.
Risk management system is excellent if adopted in letter and spirit. Data based, company profile, post audit clearance up are the main character sticks of the system (PACCS). The FBR has responded that since PACCS pilot project was launched in a pilot mode with limited functionalities, its extension to other terminals of Karachi port in the same pilot mode resulted in number of complaints from both internal and external users of the system.
The association added that it is a fact well known that light always comes from darkness and the same thing happened in this case, notwithstanding all the hazards the Pakistan Automated Customs Clearance System (PACCS) proved to be much more effective than the Pral/One Custom and statically a station wise chart of import statistically during 2008-09 is to be seen. The FBR responded that since the data is not showing the source as well as parameter/criteria for comparison therefore, no comments can be offered.
-www.brecorder.com
Responding to an appeal filed with the PM by the APCAA, the FBR observed that the APCAA has not been issued license of trade organisation under Trade Organisation Ordinance 2007 and therefore their subject appeal is unlawful. Sources said that the Web-based 'One Customs' carry all important features of the PACCS. Secondly, Commerce Ministry has not recognised the APCAA as registered association. Therefore, the association is not legally authorised to submit its views on behalf of all customs agents across the country.
In its presentation, the association has observed that it is clear that PACCS collected more revenue than the other Collectorates in Karachi. The high tariff items such as vehicles have been shifted out of PACCS by the FBR and still PACCS is more effective. Furthermore the Defence Imports although have a Declared Value of Re1 yet brings about Rs 5 billion of revenue and the same is reflected in the Appraisement Collectorate. The FBR responded that since the data is not showing the source as well as parameter/criteria for comparison therefore, no comments can be offered.
The association said that the trade volume of importers and exporters increased rapidly and the waiting of vessel at outer anchorage is reduced to zero. All this was made possible due to fast clearance system (PACCS) which was made available by FRB. All the container terminals, shipping companies, banks are linked up with the systems duties and taxes, income tax, sales tax and excise duties are paid online. All this is being done by FBR with the consultation of the stakeholders for which we all appreciated and extended all of our co-operation and assistance when and where required. It is understandable that a room for improvement is always there and every system needs up gradation with advancement is the technology, so is the case of (PACCS) system. Unfortunately in this case instead of advancement in the technology FBR is now taking a U turn, abolishing the existing Pakistan Automated Clearance System (PACCS) replacing with Pral/One Customs which is a manual system for the clearance of goods Customs from May 28, 2010 ie in next 4 days. The FBR responded that the replacement of software is a temporary/stop gap arrangement, which will be followed by implementation of a suitable automated customs clearance system in a transparent way through open bidding/tenders.
The association has grievance that huge volume of import and export containers/LCL/bulk cargo to and from all the Customs Stations/Dry ports and off dock container terminals in Pakistan would be disturbed and moreover insecure and irreparable losses can be foreseen in shape of delays, demurrages, detections etc. The delay in import clearance means delay in supply of raw material to the industries, which will cause delay in manufacturing and would hence increase cost of doing business and will put the financial burden on the consumer.
On the other had delay and detention would cause expiry of letters of credit amid cancellation of export orders which would cause loss arid reduction of inflow of our foreign remittance from abroad. Further more the delays in clearance of goods would cause the congestion at the container terminal yard which would certainly effect the shipping movement and one can for see vessel waiting outer encourage as used to he six to eight years back when PACCS was not introduced. Delay in vessels berthing at the port would cause increase in freight for all imports and exports by the shipping lines. You can imagine how would the multinational companies react to such increases in this competitive market.
The FBR responded that the APCAA observation are based on mere conjectures and assumptions devoid of any concrete evidence and seems subjective in nature therefore, no comments can be offered. The association said that currently around 250,000 containers of imports and exports are being handled per month by three oil dock container terminals at Karachi which is expected to be doubled in the upcoming years and the same is impossible to be handled through the old manual system which the FBR is now trying to impose on the trade without taking on board the stakeholders, the association claimed. The FBR responded that the said assumption is not supported by solid facts on grounds, therefore, no comments can be offered.
The APCAA said that the question now arises is that, "Is the computerised system for clearance of goods (PACCS) ineffective?" and the answer is "NO", the system is not bad, but in contrast the people operating the system are not professionals nor trained hence are incapable to achieve maximum output; "Why?" This is a question which perhaps is very clear, and the answer would be than the Pakistan customs Automated Clearance System (PACCS) was never made operational as promised and in its latter and spirit; and if the same is done even today the (PACCS) would be a dynamic system. The FBR responded that the allegation are being levelled with reliance on mere assumptions and without any scientific analysis. Therefore no comments can be offered, the FBR added.
The association further stated that instead of going ahead we are now being pushed back to the manual system after 5 years of diligence which the stakeholders have given to this computerised system.
The FBR responded that the Pakistan Customs is committed to implement best relating to a paperless and automated customs clearance system in line with international obligations. The association claimed that the issue of most significance is that where is the National Trade Corridor Program and why the stakeholders are not being consulted. Further, has this shift of systems been approved by the Cabinet NTC Task Force and if so, on what grounds.
The FBR observed that based on feedback from internal and external stakeholders as well as findings of system audit of PACCS, GOP has decided not to further rollout PACCS through 'Agility'. The association said that the quality of the project is: It is a paperless environment, lesser human interaction and goods are cleared in matter of hours and not days which was the promised result.
Risk management system is excellent if adopted in letter and spirit. Data based, company profile, post audit clearance up are the main character sticks of the system (PACCS). The FBR has responded that since PACCS pilot project was launched in a pilot mode with limited functionalities, its extension to other terminals of Karachi port in the same pilot mode resulted in number of complaints from both internal and external users of the system.
The association added that it is a fact well known that light always comes from darkness and the same thing happened in this case, notwithstanding all the hazards the Pakistan Automated Customs Clearance System (PACCS) proved to be much more effective than the Pral/One Custom and statically a station wise chart of import statistically during 2008-09 is to be seen. The FBR responded that since the data is not showing the source as well as parameter/criteria for comparison therefore, no comments can be offered.
-www.brecorder.com
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