Checking pilferage of Afghan transit cargo: FBR may accept chief collector Customs' proposal

The Federal Board of Revenue (FBR) is likely to accept a major demand of Chief Collector of Customs (South) to check massive pilferage of Afghan Transit Trade Cargo by stopping practice of converting loaded containers "FCL cargo" into loose cargo transported in trucks under the Afghan Transit Trade Agreement (ATTA).
It has been learnt here on Monday that the board is actively examining the proposal of the Chief Collector, South to check misuse of ATTA. The Chief Collector, South has also issued a standing order 1 of 2009 to streamline movement of commercial Afghan transit cargo.
Sources told Business Recorder that the transportation of the Afghan transit consignments as "loose cargo" resulting in misplacement or theft of goods, which were being loaded during transshipment process. The chances of pilferage's are much higher in case of "loose cargo" as compared to FCL cargo (full container load).
According to a presentation of the Chief Collector of Customs (South) to the FBR Member Customs, transit cargo had been carried out by Pakistan Railways after signing of ATTA in 1965. To facilitate trade and to avoid port congestion, Board vide letter of November 22, 2004 had allowed transport of Afghan Transit cargo through National Logistic Cell (NLC) in case Pakistan Railways fails to lift the same within 48 hours of its arrival.
As per Pakistan Customs Containers Security System notified under CGO 4 of 2007, transit goods has to be transported through containerised cargo under the seal of Pakistan Customs. Unfortunately, since last over a decade as a practice a large number of FCL Cargo container's seals were broken and then taken as loose cargo and transported through open private carriers contracted by NLC in addition to the LCL Cargo.
The "FCL cargo" means 'full container load' and "LCL" means 'less than container load' cargo. This practice is not only is violation of the aforementioned provisions of law but also a potential source of pilferages of the Afghan Transit Cargo, Chief Collector maintained.
In a recent case of transportation of loose cargo, an Afghan Transit consignment of 1360 tyres detained for Chaman in a vehicle (truck) No TLG-922 of White Ways Cargo authorised by NLC vide Trip Detail Report No 1009318 cleared from port was found standing at Mauripur Truck Stand, Hawksbay, Karachi, the Customs seal was broken and goods were being offloaded, illegally. The team of Preventive Collectorate has intercepted the goods and matter is being investigated.
In view of this situation, concurrence of the FBR is solicited to discontinue the aforesaid practice of converting FCL Cargo into loose cargo transported in trucks with tarpaulin cover sealed by the department. The NLC shall only be allowed to carry FCL Afghan Transit Cargo on NLC trucks duly sealed by Pakistan Customs or the FCL Cargo shall be transported in the containers in which they have been shipped, through bonded carriers, duly sealed by Customs. The LCL Cargo shall only be allowed through Railways in covered wagons. The Pakistan Railways has confirmed the availability of the same in sufficient numbers to met the requirement of transit trade. However, oversized cargo may be transported on the specific permission of the Additional Collector on NLC owned truck or Bonded Carriers, Chief Collector, South added.
Under the standing order 1 of 2009, the Chief Collector of Customs Office has laid down new procedure for movement of commercial Afghan transit cargo. At port of entry, sealing staff, Collectorate of Preventive shall maintain two separate registers for Peshawar and Chaman bound vehicles (Torkhum register & Chaman register). Each register shall be serially numbered starting from 0001 from the start of the financial year. At the time of sealing, the sealing staff shall make following entries in the respective register: GD Machine number, Afghan Transit Trade Invoice (ATTI) Number and date and time.
The sealing focal point shall allow loading and endorse any of the two stamps on the back of ATTI depending upon the destination. For maintenance of registers at check posts, the in charge of check post shall endorse a stamp on the back of ATTI. The staff posted at check post shall check the seal, container number, documents and shall make the following entries in a serially numbered register, called "Check Post Register for Afghan Transit".
In order to detect the missing consignments immediately, serial numbers shall be entered in check post register. When a consignment arrives at the check post, the staff shall see the serial number of the register of the port of Entry as endorsed on the back of ATTI and shall make entries in the check post register against the same serial number. For example, if the entry of the consignment at the time of sealing on the back of ATTI is made against Serial No 06 at Karachi then on arrival at the check post the relevant entries of the consignment shall be made against Serial No 6 of the Check Post Register at illustrated below. Thus the missing serial numbers shall be conspicuously visible and can be pointed out promptly, standing order said.
In case the seal is found broken/ tempered or any eventuality as provided in CGO 4/2007 the Incharge Check Post shall immediately stop the vehicle from further journey. The Collectorate concerned of the respective check post shall make necessary arrangements to provide hardware and other infrastructure and ensure to make entries in the system and its reconciliation on real time basis. The missing serial numbers shall be communicated by the Collectorate on weekly basis to the Collectorate of Entry and Exit, standing order added.