World Customs Organisation (WCO) has dedicated 2016 to promote the digitalisation of Customs processes under the slogan "Digital Customs: Progressive Engagement." The term Digital Customs refers to any automated or electronic activity that contributes to the effectiveness, efficiency, and co-ordination of Customs activities, such as automated Customs clearance systems, the Single Window concept, electronic exchange of information, websites to communicate information and promote transparency, and the use of smart phones. This new era of Digital Customs has transformed the way that Customs operates .
Such positive outcomes will contribute significantly towards the realisation of Customs' objectives, including improved revenue collection, border security, the collection of trade statistics, and trade facilitation. Therefore, Customs administrations are increasingly embracing digitalisation to enhance their effectiveness and efficiency. The improvement of technological processes results in a significant positive impact and transformation of the Customs landscape.
Pakistan Customs embarked upon digitalisation through automated, web enabled, paperless, integrated, computer system to serve as a modern, efficient, effective and corruption free Customs administration. In 2004, One Customs system developed by M/s PRAL was adopted to enable Pakistan Customs to use one set of Business rules to clear import/export transactions using centralised database. In 2005, under Customs Administrative Reforms (CARe), a comparatively more developed Microclear software was hired from a Kuwait based company for Pakistan Customs Computerised System (PaCCS). But due to high business cost, ownership issues of the software and its data and keeping in view the vulnerability of the system, Customs switched to indigenous system named as Web based One Customs (WeBOC) in 2011. The footprints as well as scope of WeBOC are broader than PaCCS and One Customs system software. At present, WeBOC System covers 94% of imports through Appraisement Collectorates and 100% exports through Exports Collectorates at Karachi.
WeBOC system has been developed by M/s PRAL with the assistance of Customs officers with the vision to ensure paperless, end to end integration, minimum dwell time, 24/7 service, transparency, simplified procedures, better controls, electronic filing, minimum interaction of clientage with Customs authorities, efficient information management system, e-gates, online payment and single window operations. The idea is to have compliance of international trade facilitation agreements and to develop Customs system on international best practices. It provides real time integration of clearing agents, traders, brokers, terminal operators, cargo handlers, shipping agents, bonded carriers, warehouses, airlines and customs officials for the clearance of trade consignments.
In order to stay competitive internationally and to promote e-trade, Pakistan Customs has initiated an Integrated Regulatory Authorities (INTRA) project culminating into a National Single Window (NSW). Single Window refers to a facility that allows stakeholders involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export and transit-trade related regulatory requirements. In an electronic Single Window, data elements are required to be entered once at the source or point of origination. Pakistan Customs made some tangible progress towards developing a Customs Single Window by developing the software system called Web Based One Customs (WeBOC) comprising of several modules including a Risk Management System (RMS). Under this software system, shipments for import, export, transshipment and transit are cleared through a completely automated risk based paperless environment. While development of WeBOC was a step in the right direction, and sufficient progress has been made, an architectural upgrade to WeBOC Version II is urgently required to enable Customs to move to NSW system originally planned.
There is an immediate and dire need for establishment of a Customs Information and Communication Technology (ICT) company to face the cutting edge challenges of technology and automation relating to the INTRA and NSW programs. This will help to achieve the goal of a NSW in a reasonable time. For the creation of this ICT Company and hiring experienced and skilled professionals, funds shall be needed from the Government of Pakistan to equip Pakistan Customs with the infrastructure it requires to make strides towards the implementation of a NSW system.
The writer is working as Deputy Collector of Customs at Custom House, Karachi. He holds MBA degree from University of the Punjab and MSc in Public Policy and Administration from London School of Economics and Political Science (LSE).
(The writer is Deputy Collector Customs Custom House Karachi)