Clearance of imported edible oil: authorities may incorporate changes in WEBOC system

The customs authorities are likely to incorporate necessary changes in Web-based One Custom (WEBOC) system to ensure swift clearance of imported edible oil from collectorates of customs at Karachi and Port Muhammad Bin Qasim (PMBQ). Sources told Business Recorder here on Thursday that the edible oil was included in the list of items to be processed and cleared through WEBOC during March, 2014, prior to WEBOC the item was being assessed by "One-Customs" clearance system.
The ghee industry and Collectorate of Customs PMBQ reviewed the procedure of clearance through WEBOC software and short-listed the discrepancies in software creating hurdles in the proper clearance of edible oil. According to the industry sources, Collectorate of Customs at Port Mohammad Bin Qasim collects duty/taxes on approximately 6,000M tons of imported edible oil cleared per day. The incidence of taxes at current international prevailing palm oil price @ $760 per metric ton, is around Rs174 million on daily basis. Therefore, vegetable ghee/cooking oil industry is included in top five revenue spinners contributing over Rs100 billion per annum on production of 3 million metric tons of ghee/cooking oil from imported and locally produced edible oil.
The edible oil being a raw material of Fast Moving Consumer Goods (FMCG) is required to be cleared speedily to keep market prices stable, ensuring its continuous availability to masses. They pointed out that prior to inception of (WEBOC), the clearance procedure used to consume 6-8 hours in 'one custom' system, however, WEBOC is taking at least two days to complete the procedure.
In order to speed up the customs clearing procedure, ghee industry representatives accompanied with clearing agents convened a meeting with collectorate, of customs PMBQ and has forwarded the 'Change Request' to Directorate of Reforms and Automation (Customs).
It is pertinent to note that 15 percent concession in customs duty is available to palm oil products imported from Malaysia and Indonesia vide Customs SRO 1261 dated 31 December, 2007 and Customs SRO 741(I)/2013 dated 23 August, 2013 respectively. Both SROs are issued in line with Malaysia Pakistan Closer Economic Partnership Agreement (MPCEP) and Indonesia Pakistan Preferential Trade Agreement (IPPTA) both inked and notified vide Ministry of Commerce Notifications SRO.1205(I)/2007 dated 11 December, 2007 and SRO.1485(I)/2012 dated 22 December, 2012.
The financial impact of above referred bilateral agreements provides concessions on import of edible oil to the tune of Rs1750 per metric ton to importers. Currently customs duty @ 9150/M.ton, federal excise duty (FED) in sales tax mode @ 16 percent and withholding tax (WHT) @ 5.5 percent is applicable on edible oil at import stage.
Sources said that a meeting was also held in the Office of Collectorate of Customs, Port Muhammad Bin Qasim. During the course of meeting the discrepancies in WEBOC software and other administrative shortfalls creating impediments in the appropriate clearance of edible oil were discussed.
The samples forwarded to customs laboratory, Karachi for obtaining 'Test Reports' are numbered by giving reference of Bill of Lading (B/L). Since the numbers repeats (1, 2, 3....) for each vessel, therefore, the laboratory and WebOC cannot differentiate between samples of different vessels arriving and discharging cargo one after another. Since the Goods Declaration (GDs) are filed at random and not vessel arrival-wise (First come, First Cleared), therefore, it is proposed to give identification number of Import General Manifest (IGM) to samples being unique in nature, instead of B/L.
The WEBOC is calculating incidence of duty/taxes on statuary rates without applying concessions available vide prevailing SROs, therefore, the actual duty/taxes applicable after availing concessions are less than those calculated by WEBOC on statutory rates. This discrepancy needs to be corrected by feeding concerned concessionary SROs in the software.
The importers file GDs through their clearing agents without providing complete set of documents required to process the entries. The entry appears before Collectorate Staff (Appraisement Officer /Principal Appraisement Officer) and others, hence rejected time and again for want of documents. Since the WEBOC follows Queue system, therefore, the rejected entry appears time and again for the reason that it remains in a folder. There is no provision of jumping/popping in WEBOC resultantly the other entries have to wait in Queue for their turn. Clearing Agents shall be advised to ensure provision of all documents prior to filing of GD. In this regard a GD filed by one of the agent was discussed, which lasted for seventeen days in folder but documents were not produced by the agent.
The Collectorate of Customs (Preventive) representative at Port Muhammad Bin Qasim exit gate has not been allotted with the ID/Password of WEBOC, consequently the documentation is being maintained manually for the time being. It is, therefore, necessary hence proposed to include the 'Gate' in the WEBOC.
Since all above add-ons/adaption need to be incorporated in WEBOC, which obviously is out of the purview of Collectorate resultantly the Collectorate has kindly consented to forward 'Change Request' to WEBOC with a view to facilitate clearance of edible oil. Other administrative/secretarial arrangements felt necessary such as dedicated staff (AO/PAO) of Collectorate handling the edible oil GDs shall be available (9 to 5) at the premises of Port Qasim and may not be assigned external tasks. Next meeting after incorporation of changes in WEBOC software is scheduled on 27th-28th of August, 2014 to review the smooth functioning and clearance of consignments, sources added.