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

PaCCS and TRADE FACILITATION

UNCTAD October 2006

Dr. Mohammad SaeedPermanent Mission of Pakistan to the WTO Geneva

mohammad.saeed@wto-pakistan.org

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.

Pre-PaCCSoverview of stumbling blocks

First use of computerized systems =early 80’s

Fragmented system, Multiple WindowsDiffering software with little or no interface Paper environmentComplex clearance proceduresLack of information sharingIntegrity Issues

Dwell Time (Pre PaCCS)

50% of cargo cleared from the port 11 days after arrival in the country

1.2%

80.4%

11.8%6.6%

<2 Days <4 Days <6 Days Day 7 & later

Clearance Time ( Pre-- PaCCS)

50% of declarations completed by Customs 5 days after filing of declaration

12.5%

31.8%

26.1%

25.3%

4.3%

<1 Day <2 Days <4 Days <6 Days Day 7 & later

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 ?

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”

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

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

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

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

ECHO -Enhanced Cargo Handling & Port Optimization

ECHO connects the carriers, Customs andCustodians and provides :

One electronic document for the carriers Real time inventory and monitoring of portsNo 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

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

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)

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

Performance & Some results-contd

Examination and Assessment regime

For imports: Pre PaCCS 100% & PaCCS 4% For exports: previously 100% and now 2%

integrity issues. 

Faisalabad

Lahore

Karachi

Multan

Rawalpindi

Peshawar

Gawadar Hyderabad

Quetta

PACCS online UsersPort 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

Sialkot

PACCS Users by location

Internet

UsersTradersAgentsShipping LinesCustoms formations• Warehousing• Licensing• Quotas• Cargo receipt/dispatchSales Tax formationsGovt. ministries/ depts.Terminal authorityCentral Board of Rev• Tariff• Exemptions• Drawbacks

Faisalabad

Lahore

Karachi

Multan

Rawalpindi

Peshawar

Gawadar Hyderabad

QuettaImporters, 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

Sialkot

PACCS

Virtual Customs accessible over the web

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

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