Pakistan Customs - confluence of tradition and innovation

Muhammad Daud Pirzado, Additional Collector Enforcement

World Customs Organization (WCO), an international organization created in 1953 to promote cooperation among 185 member states has chosen theme of “Customs Engaging Traditional and New Partners with Purpose” for International Customs Day (ICD) being celebrated on 26th January 2024.

Pakistan, being an active member of WCO since 1955, through its national customs administration Pakistan Customs is also celebrating ICD across Pakistan.

This years’ WCO ICD theme “Customs Engaging Traditional and New Partners with Purpose” is reflective of importance of various partners involved in Customs procedures and processes.

Pakistan Customs, under Federal Board of Revenue (FBR), is an important national institution which is tasked with responsibilities of implementing fiscal, public safety, environmental and national security policies associated with entry and exist of goods through national borders.

Pakistan Customs not only collects duties and taxes on imports and exports of goods but also implements various national policy regulations pertaining to national, public and environmental safety.

Pakistan Customs in performance of its national tasks partners with multiple national regulators to implement their policies, provides services to multitude of users of Customs services andalso seeks services from number of service providers in discharge of its functions. Overall purpose of this partnership is to meet these national policy goals.

This years’ ICD 2024 theme aptly requires Pakistan Customs to reflect upon its relations with traditional partners as well as to explore need for new partners in ever evolving needs of trade and industry, national and international obligations concerning trade.

Pakistan Customs needs to review its performance as to how far this association has helped Pakistan achieve it key economic goals of revenue collection, reducing cost of doing business and protecting society from harmful impacts of imports of contraband goods and smuggling.

It is worthwhile here to mention few important traditional partners from private and public sector.

Private sector partners are represented by the business community mainly importers, and exporters, banks and Insurance companies, clearing and forwarding agents, shipping lines and their agents, private port operators, stevedores, ship chandlers, auctioneers, bidders, transporters, private and public bonded warehouses, lawyers, courier and logistic companies including bonded carriers, airport service providers, customs consultants etc.

Leading Public sector port operators are Karachi Port Trust, Port Qasim Authority, Gwadar Port Authority, Civil Aviation Authority, Pakistan Railways and National Logistics Cell (NLC).

Important Public sectors partners and regulators with which Pakistan Customs works together include Ministry of Finance (Fiscal Policies), Ministry of Commerce (Tariffs, Import and Export Policies), Ministry of National Food Security (Department of Plant Protection, Department of Animal Quarantine), Ministry of Narcotics Control (Anti-Narcotics Force), Pakistan Nuclear Regulatory Authority, Pakistan Telecommunication Authority, Ministry of Foreign Affairs, Ministry of Health (Drug Regulatory Authority of Pakistan) Intellectual Property Organization of Pakistan, Ministry of Interior (Civilian Law Enforcement Agencies, Immigration and Passports etc), Ministry of Industry (Engineering Development Board), Ministry of Climate Change, Motor Registration Authorities of Provinces, Provincial Departments of Antiquities, Trade Development Authority of Pakistan, State Bank of Pakistan, National Bank of Pakistan, Inland Revenue Service, Auditor General of Pakistan.

One of the important public private partner Pakistan Customs has worked along for many years is PRAL (Pakistan Revenue Automation Limited) which has a far-reaching impact on working of Pakistan Customs. It helped Pakistan Customs in achieving digitization and automation goals.

Current automated Customs Clearance System called WeBOC (Web Based One Customs), which is home grown information technology solution, is joint achievement of PRAL and Pakistan Customs.

Given the complex nature of business transactions and need for efficient customs processes Pakistan Customs is not oblivious of engaging new partner to further improve its services. It is committed to engage all stakeholders on single platform envisaged under Pakistan Single Window (PSW).

PSW shall provide a digitized platform to all partners and stakeholders to communicate with Pakistan Customs’ automated clearance system digitally in a secured environment. Introduction of these steps has improved the Pakistan’s ranking in World Bank’s Ease of Doing Business.

By engaging Pakistan Telecommunication Authority under the scheme of DIRBS (Device Information Registration and Blocking System) a safe and efficient system of mobile registration system has been put into place ensuring realization of duty and taxes and prevent misuse of mobile devices in anti-state activities.

Pakistan Customs through its Customs Intelligence Wing cooperates and coordinates with international partners to combattrade-based money laundering and terrorist financing in addition to its traditional role of control international smuggling of goods especially high value items and narcotics.

Pakistan Customs is also partnering with Strategic National Partners to control import and export of nuclear substances to make Pakistan and rest of the world safe and secure from dangers of radioactivity.

Pakistan Customs is partnering with Ministry of Climate Change and the Provincial Departments for tackling Environment and Climate issues associated with entry and exist of substancesand materials which hazardous to the environment.

Pakistan Customs on the International level is cooperating with national customs organizations of several countries (China, Iran, CASs - Central Asian States) for mutual sharing of information through EDIs to combat the menace of under/over invoicing.

Pakistan Customs is going through continuous process of upgradation of its information technology spectrum to ensure seamless and efficient services to its partners and had never shied away from meeting new challenges.

Pakistan Customs has steered Pakistan from many challenges. One example is successful and uninterrupted provisions of customs services during COVID 19 no matter that Pakistan Customs lost many lives, in all ranks and files, in the line of duty. Pakistan Customs’anti-smuggling forces operate all over Pakistan and work in extreme conditions with limited resources and support to control the menace of smuggling.

Pakistan Customs plays a pivotal role in industrialization and promotion of exports in Pakistan. Leading initiatives towards this end are introduction of single unified Export Facilitation Scheme 2021, implementation of Advance Ruling System and roll out of Authorized Economic Operators (AEOs).

On the front of Automated Clearance System, concepts of Clearance in the Sea and Air had been introduced and Customs is also moving towards Automated Entry and Exist System.

These initiatives will definitely improve ease of doing business by reducing cost of doing business and ultimately lead to increase in Foreign Direct Investment (FDI) in Pakistan.

Current years’ ICD 2024 theme rightly echoes and reminds Pakistan Customs to review, reinforce and revitalize relations with traditional partners and to look for new partners with purpose to achieve fiscal, social, economic, environmental, and strategic national policy goals.

Copyright Business Recorder, 2024