21/07/2012
WeBOC:
Think of Government agencies that have embraced automation and Pakistan Customs finds a place in the first 5. For those who deal with the Customs on a regular basis, they’ll probably tell you it is one of the best. Despite the pitfalls, from a technology adoption standpoint, Pakistan Customs integrates with smart technology solutions for effective customs controls and facilitation of trade.
As with most organizations, there were some major milestones that helped establish its lead. In the case of Pakistan Customs, these milestones came in the shape of the Systems Ltd developed One Customs followed by Agility Solution’s PaCCS (Pakistan Customs Computerized System). PaCCS processes the 3 containerized terminals of Karachi and deals only with manufacturers which alone amount to nearly 1500 consignments (import + export) each day, accounting for almost 60% of Customs generated revenue. Estimates land the Customs Department clearing approximately Rs.1.75 billion each day of which PaCCS has the capacity to generate Rs 300 million revenue daily.
The Federal Board of Revenue, in its long term vision, realized that a new risk-based clearance system needed to be introduced which had to be indigenously built with the FBR’s own human resource. Hence, they tasked Pakistan Revenue Automation (Pvt.) Ltd (PRAL) to develop that solution.
PRAL carries bulwark of Pakistan’s Revenue Administration processing through its consultants and solution developers. With its country-wide support network, PRAL is embedded into the FBR’s legal-procedural fabric allowing it to have better visibility into determining the effective working of IT solutions for tax administration, a product of which is WeBOC (Web Based One Customs). Initially, WeBOC was tested for its efficacy at the Rawalpindindi Air Freight Unit however FBR realized the need to have a self-reliant customs clearance system where the risk-based revenue collecting clearance system would not be hostage to a foreign vendor. It was decided that PRAL would enhance WeBOC to handle risk-based clearance at the containerized terminals.
The Challenge:
The challenges faced in the implementation of WeBOC were many. Typically, government agencies are plagued with bad succession planning which creates a dearth of ownership of projects across all levels. In an environment where competitive international vendors are well placed with their packaged products, relying on an indigenously developed customs clearance system seemed a risky endeavor for the executing agency. The FBR was stuck in the dilemma of continuing with a rapidly depreciating legacy system, pay the premium for packaged product or develop a system with its own resources. Keeping in view the long term costs, the need for constant change and self-reliance; the homegrown solution won.
The metamorphosis of WeBOC is a result of countless hours of deliberation and discussion in determining the faults of the previous clearance system, wholly subscribing to the Customs Act of 1969 and covering all types of customs transactions. As a result the Board had given the go ahead to launch WeBOC at Port Qasim for Exports and Imports. WeBOC has the following fully functional and practically demonstrable features:
Goods Declaration with Amendments/Cancellation
Examination Management with flexibility of adding examination tiers for greater scrutiny.
Assessment Management;
Advance Bank Payment and Debit Account;
Gate Out clearance with Preventive role;
Electronic Data Interchange Messaging with Terminal Operator for VIR, Examination, Scanning, Weight and Release messages;
Container Intelligence Unit;
MIS and Reporting;
Refund Management;
Risk Management System (developed under 3-tier Development and Review Committee of highly qualified Customs Officers);
LCL Handling at Off Dock Terminal;
Duty and Exemption Calculation Engine;
Cash Section Reconciliation;
Adjudication;
Recoveries Management;
Transshipment; and
Bond Management;
Port Muhammad Bin Qasim Collectorate geared up to deal with implementing WeBOC and made arrangements for its smooth processing by allocating experienced resources for WeBOC consignments. Due to its location and types of consignment, Port Muhammad Bin Qasim Collectorate is a customs processing nightmare. The commodities and transactions being dealt at this Collectorate are of a risky nature as it handles the consignments that cannot be processed due to the limitation in the other clearance system. However, through joint efforts between Customs, PRAL and Clearing Agents a solution was reached within a week that allowed effective handling of consignments through WeBOC. It is when changes are well thought out and then rapidly developed that we realize the benefits of self-reliance.
Adoption:
WeBOC is easy for Clearing Agents, Examiners, Appraisers and Officers to use. It provides great visibility at each step that allows the Customs Official to clearly identify and mitigate delays. As with any project in its infancy there are some teething issues that need to be dealt with. In this regard Customs and PRAL has committed a large support team so that that there are no stuck up consignments while enabling Collectorates across the country meet their revenue targets for the financial year end.
Acceptability of the system was critical for which discussion, orientation and trainings were frequently held. An open door policy was implemented to deal with day-to-day clearance-related issues. WeBOC is gradually taking over the imports and through joint efforts, the following functions are being brought;
EDB Quota under SRO 655-656
Inter Port Movement
Section 79 Examination
Summary Adjudication for Excess Weight
Scanning Integration
Results:
The results of WeBOC implementation for customs clearance appear in better collection of duties and taxes, effective record management, seamless integration of all customs processes, greater visibility, immediate troubleshooting and paperless end-to-end processing.
Following are the essential impacts achieved by WeBOC;
Clearance time reduced to 20 hours for consignments under Examination
Clearance time reduced to 2 hours for immediate clearance under Risk Profiling
60% consignments cleared immediately upon declaration and payment of duties/taxes
Operating cycle and supply chain for Textile and Sports industry greatly enhanced due to immediate clearance.
Reduction in the discretionary powers of Customs Officers thereby reducing chances of corruption or speed money;
Less interaction with Customs staff;
Reduction in stationary and paper expenses;
Reduction in human resource required for traders employed for customs clearance;
Cost saving on scams and audit gaps due to manual paper based processing of consignments;
Association of Customs agents have demanded the use of WeBOC at all Customs stations;
Advance duty collection;
Independence from reliance on foreign packaged products that charge a exorbitantly high premium for installation and changes; and
Terminal Operator can efficiently handle port operations due to real time integration with WeBOC .
It can provide greater value by connecting all customs land, sea, rail and air stations in Pakistan. A regional electronic interface will be setup for cross border exchange of information with Airlines and Freight Forwarders for trade with Central Asian countries. WeBOC is being enhanced to cater to the requirements of cross-border data exchange with Afghanistan and Central Asian States. WeBOC is set to become a regional gateway for trade and commerce by developing a trade value network through real time exchange of data with all stakeholders
WeBOC is fully geared to take on the clearance processing of all customs stations across Pakistan if it is rolled out in phase-wise manner by strategic planning and ownership of an indigenous developed product.
