Import clearance made foolproof?

In a far-reaching reform initiative, the Federal Board of Revenue (FBR) has introduced major changes in the Pakistan Customs Computerised System (PACCS) to make the entire import clearance procedure efficient and corruption-free. According to reliable sources, the development team of Customs Administrative Reform Programme (CARE) has changed the software, and thus achieved three crucial objectives.
Firstly, it has denied to Karachi-based appraisers and examiners access to the "customs reference numbers" (CR) of importers, thereby eliminating the possibility of any interaction taking place between corrupt officials and importers. Secondly, the data relating to 6,000 to 7,000 "inactive" importers has been deleted from the PACCS clearance system to control misuse of the reference numbers by "ghost" importers.
Thirdly, on-line facility has been extended to importers to keep them updated on the latest status of the goods clearance (GD) process without their having to visit the Customs House. A facility of international standard has also been introduced for the importers to find out their GD status electronically. They have now only to visit the web site, feed the CR number, and click.
In this way, the importers can find out whether the GD is under examination or adjudication. It needs to be mentioned that the "customs reference number" or CR of an importer contains information about his name, address, telephone number etc.
In the past many appraisers tried to contact the importers with the help of information contained in CR, in an effort to arrive at some "understanding" about payment of duties and taxes. Now, without the "customs reference number" the appraisers will have no access to information about the importers under PACCS.
Further, the software developers have taken another important step towards controlling corruption by making it mandatory for appraisers/examiners to process the goods declarations (GDs) under "first in, first out" basis to bring transparency to the clearance. Under the new system the appraiser has to adhere strictly to the numerical sequence.
In short, he has to observe the "queue" system. With new procedural parameters, the importers will also enjoy the facility of electronically scanning the documents for their onward transmission. For instance, if the Customs authorities demand any documents, the importers will be able to scan the papers from their homes and transmit them electronically. This will ensure smooth working of the clearance system.
Although the CARE development team has introduced the maximum number of changes in the software to facilitate the importers, there is still need for FBR to review the human resource management on the operational side of PACCS. Needless to add here, the accountability of appraisers, principal appraisers and examiners is crucial to ensure an error-free system.
There is apparently no problem with the system, but administrative issues relating to the appraisers etc have to be handled effectively. According to FBR instructions issued to the Model Customs Collectorate, Karachi, and the Chief of Customs, South, the user identification numbers will be issued after proper cross-matching with the central database.
In cases where a registered importer has not filed any Goods Declaration (GD), or no import/export activity has taken place, the names of such importers will be deleted from the system. In this connection, the Karachi Customs will initiate a cleansing process. Unscrupulous importers have been exploiting loopholes in the Customs Clearance System, for instance, through submission of fake credentials for obtaining registration numbers.
A major cause of slowness of the system is its replication of some hardware and software limitations. According to Shahid Rahim Sheikh, FBR Member (Customs), the system is overloaded because of lack of hardware implementation at the extended terminals. Yet another cause of delay in clearance is the inexperience of officials deputed at important stations dealing with PACCS clearance, who are unable to properly run the system.
It is said that "ghost" importers obtain registration numbers with the help of fake or stolen documents. The addresses provided by them are invariably incorrect, which makes tracing them later a very difficult and time-consuming task. According to latest instructions, the PACCS data would be hooked up with the NTN Mater Index on real time basis through a new software. This would ensure that only authentic NTN holders will be able to get registration under the revamped system.
Reduction in custom clearance time will be achieved by making processes more efficient through use of technology. Although the reforms introduced by the present dispensation have indeed restructured the taxation system on a relatively even keel, the mechanism to remains hostage to widespread abuse by the unscrupulous importers and corrupt officials.
Further, the tax administration in the country lacks adequate professional human resource management skills to design and implement policies. This is a major operational constraint in the country's taxation domain. Now that far-reaching changes have been introduced in the import clearance system, the FBR authorities should keep in mind that professional integrity of the personnel operating the system is probably more important to ensure smooth and error-free functioning of the system than developing and using new softwares.