FBR clarification

Apropos a news report "Some Rs 50 billion shared by 250 customs officials per year" carried by Business Recorder on February 9, 2010, the Federal Board of Revenue (FBR) has clarified that the report gives a misleading impression as if any "vested interest" in FBR is hindering the roll out of Pakistan Customs Computerised System (PaCCS).
The observation has been made in total disregard of the fact that PaCCS, as an end-to-end IT based solution for processing and clearance of import/export consignments was introduced by the customs department of the FBR as a home-grown solution to facilitate trade and industry.
Since FBR's own commitment to facilitate trade & industry and eradicate corruption was behind the concept of automation of customs procedures, therefore, there should be no doubt in anyone's mind about FBR's continued resolve to follow the stated course. FBR has made significant progress towards introducing automation in customs procedures and the IT based systems of PaCCS and One-Customs currently in place are clear manifestation of the continuity of policy.
"The numbers quoted in the news report to highlight corruption curiously ignored the fact that most of customs clearances (about 70%) are currently being channelised through PaCCS which has been eulogised as a transparent and efficient system by the reporter himself. The average of Rs 200 million per officer per year quoted in the news report assumes as if all the officers of customs, even those who are OSDs or are on deputation, leave or training also are reeking in ill-gotten money.
The absurdity of the allegation can be gauged from the fact that collection of customs duty from Customs House Karachi during first six months is Rs 49 billion, and no sane person even remotely familiar with the working of customs would venture thinking that more money than the collection is being siphoned as bribery.
One would have hoped that some research would have gone into the report before publishing it as a comprehensive story. The reporter has not quoted any official, association, trade body, federation, chamber and any individual or authentic department which forms basis of figures quoted in this story.
"While narrating a conjectural story of corruption in customs, it was completely ignored that over the years customs has improved on the National Corruption Perception Surveys (NCPS) conducted by Transparency International (TI). The ranking of customs on NCPS has significantly improved from its rank at No 5 in 2002 to No 9 in 2009 and in fact customs has done better than many other public sector departments and organisations.
"As no system is ever final in perfection, FBR is fully cognisant of the need for improvement in the systems in place. Many businesses processes, now integral part of PaCCS, were introduced by the customs officers once the system was made operational. For example, First in-First out system was introduced by the incumbent Member Customs when he was working as Chief Collector (South).
Thus the system owes is efficiency to the meaningful contribution made by customs officers operating the system. One wonders how could a computerised system alone can help improve the revenue collection without the input and vigilance of the officers and staff operating it.
"The ignorance of the reporters is further exposed by the assertion that customs officers are feeling threatened from automation as it will eliminate the Collectorates. Nothing could be far from truth as neither was it the intention nor is it managerially feasible to eliminate or substitute the Collectorates with a computerised system. Therefore, the question of being threatened by PaCCS or any other system simply does not arise.
"It would not be out of place to reiterate customs commitment to provide quality services to the stakeholders through use of technology, simplification of procedures. As part of ever running process of improvement, a thorough third-party system audit of PaCCS has been assigned to a chartered accountant firm to fully assess the efficiency, effectiveness and reliability of PaCCS.
The assigning of system audit to a third-party of acknowledged repute and credentials is again a clear manifestation of commitment of FBR to transparency and fairness. The stakeholders are assured that on receipt of the said audit report, any flaws or shortcomings in the system thus pointed out would be analysed and system would further be made even more effective and efficient before rolling it out on country-wide basis."