Customs can be left un-automated

Date extensions are not a very uncommon term with the FBR. However, where extensions in tax filing dates serve the tax filers well, requests by the FBR for extensions in the implementation of the Pakistan Customs Computerised System (PaCCS) have irked Agility Logistics - the company that provides software services for the programmes implementation in Pakistan.
Much uncertainty has prevailed over the fate of the PaCCS in the country. The FBR had decided in March this year to do away with the system altogether because of allegations of corruption on the Kuwait-based company, and also because of complaints of inadequacies in the system.
The FBR had claimed that the system would be replaced with an internally developed one within a span of 6 months.
Ironically, it has been roughly six months since FBRs announcement, and there are no signs of any new system as an alternate, resulting in FBR turning again to Agilitys doors.
The ball is now in the companys court and theyve expressed displeasure over the FBRs indecisive stance on the continuation of the PaCCS, with reports that they might not extend the system.
Media reports suggest that Agility Logistics had not been awarded any formal contract with the FBR for long, and the FBR merely asked for ad-hoc extensions to the programmes execution, without making concrete, long-term agreements for the implementation of the system.
In addition, Agility has been apprehensive about copyright issues arising from the use of its software in development of the FBRs in-house system.
FBR is at a tricky juncture, it will indeed find itself on shaky grounds in the absence of a properly automated system for customs clearance.
Interestingly, traders exposed to the system told BR Research that the PaCCS was not completely satisfactory as there was no price-check mechanism, leading to issues of under-invoicing and mis-declaration.
Tax experts were of the view that FBR was also hard pressed by exorbitant operational fees demanded by Agility Logistics, which was causing the said delays.
The scenario calls for the FBR to develop its own automated system, built to address the inadequacies of the PaCCS. "Some automated system has to be there, it shouldn be manual," said a customs official speaking to BR Research.
While the FBR had been contemplating the adoption of United Nations Conference on Trade and Developments (UNCTAD) customs software system, ASYCUDA, and its own Web Based One Custom (WEBOC) system, the implementation is yet to be seen.
Until the FBR comes up with an automated system of its own and works on educating importers and exporters on a new systems implementation, working with Agilitys PaCCS seems to be the only viable option.