Reforming Trade Facilitation: Experience of Pakistan Presentation for Trade Logistics Advisory Progr

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Reforming Trade Facilitation Experience of
PakistanPresentationfor Trade Logistics
Advisory ProgramWorld Bank, Washington DC

• Dr. Manzoor Ahmad
• Ambassador
• Pakistan Mission to WTO
• manzoor.ahmad_at_wto-pakistan.org

May 2008
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Evolution of reforms

• Need for reform
• Outsourcing of Customs functions
• Early initiatives
• Express Lane Facility
• Electronic Assessment System
• Risk Indicated Selective Examination

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Overall reform process

• Simplification of tax laws
• Simplification of tariff
• Review of procedural notifications
• Introduction of self-assessment for all taxes
• Customs Administrative Reforms (CARE)
• Pakistan Customs Computerized System (PACCS)

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PACCS Salient Features

• Self-assessment
• Filing of Declaration over the web 24/7
• Checking through PACCS Processing and Risk
  Management System
• One electronic declaration replaced 26 clearance
  steps, 34 signatures and 62 verifications
• Four components
• TARIP (Tariff Integrated Policy)
• INTRA (Integrated Regulatory Authorities)
• ECHO (Enhanced Cargo Handling Port
  Optimization)
• ACCESS (Automated Customs Clearance System)

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Process Flow of Clearance Authorization
Declaration Accepted
Clearance Authorized
Payment of Taxes
OK to Clear
Filing of Declaration
PACCS Processing
More Information
Declaration NOT Accepted
First Review
Second Review
Relevant Committee or Appeal Procedure
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Comparison of clearance time
Pre-PACCS
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Comparison of clearance time between
Comparison of clearance time
Post-PACCS
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Challenges

• Resentment by users of old system
• Adjustment by regulatory authorities
• Continuity of the system

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Overcoming challenges

• Pareto Principle (8020 Rule)
• Bringing on board 20 traders with 80 share in
  trade, 4 shipping lines, 1 container terminal
• Successful results
• Dedicated team
• International endorsement

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Key players

• A small team of Customs experts supported by top
  management
• Karachi International Container Terminal
• American President Lines
• Software developers

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What could have been done better

• More clarity about the roll out programme
• Better communication with stake-holders

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Lessons learnt

• Outsourcing of customs not cost effective
• Piecemeal reforms only yield piecemeal results
• Continuity at top level
• Need for a dedicated team
• Financial incentives
• Firm up business process and then make
  corresponding legal changes
• Need for changes in regulatory framework