Pakistan Customs upgrading systems to boost trade efficiency

Pakistan Customs is working intensely to develop and upgrade its system to reduce delays, minimise revenue loss, and facilitate trade.

Speaking at a meeting held at Karachi Port Trust, Chief Collector of Customs Mohsin Rafiq noted the Web-based Customs Clearance System (WeBoc) and Clinical Data Management System (CDMS) were being integrated within the next five months which would expedite Customs clearance of imported cargo.

The Customs Risk Management System was being integrated with Pakistan Single Window (PSW), which would integrate port authorities, shipping lines, terminal operators, and all other agencies, he added.

Rafiq said Customs had managed to achieve clearing 60% of the load through PSW’s Green Channel.

“Customs aims at bringing 25% of the remaining load of Yellow/Red Channels to half in the next three years.”

The PSW has three channels for processing cargo — Green, which usually takes 15 minutes, Yellow in which cargo is marked for assessment, and Red in which cargo is marked for examination.

While acknowledging that understaffing had delayed processing in the past, Rafiq said 41 new appraising officers had been appointed in July.

“The problem has now been resolved and the assessment speed will improve,” he added.

The meeting, chaired by Deputy Chair Planning Commission Jahanzaib Khan, also deliberated about resolving the cross-cutting issues of Karachi Port.

The meeting focused on developing a methodology to identify and resolve the issues in two weeks and submitting tangible solutions to the prime minister for their resolution. Khan emphasized that there are global indexes available for ranking of ports and certain indicators which help develop those rankings.

“We need to identify which indicators in our ports helped improve rankings in the past, along with the evidence. We need further improvement in port operations in the short, medium and long term,” he said.

Federation of Pakistan Chambers of Commerce and Industry Vice President Khurram Ejaz identified a number of issues related to ports, including lack of communication between various actors such as shipping lines, importers and exporters, customs, and port authorities.

He also highlighted issues of pre-clearance and delays with Customs such as partial pre-clearance mechanisms, non-applicability of scanners, non-availability of customs labs within 10-20km radius of port areas, and corruption.

He also criticized limited working hours of shipping lines and terminal operators. Shipping lines operated five days a week causing delays in Customs clearance of imported cargo resulting in increased costs for traders, he claimed.

Responding to traders’ demand, the shipping lines represented by Pakistan Ship Agents Association agreed on a six-day working week.