Agility maintaining mysterious silence

The Kuwait-based software supplier, Agility, which owns Pakistan Automated Customs Computerised System (PaCCS), is maintaining a mysterious silence over Federal Board of Revenue's move to shift consignment clearance from PaCCS to Web Based One Custom (WeBOC) at Qasim International Container Terminal (QICT) from September 23.
According to sources, the company is keeping its plans a "closely guarded secret" to take the FBR by surprise, as and when it decides to exercise available options. Agility feels badly hurt over the sudden launch of WeBOC as it was contrary to assurances it had received from a high powered FBR delegation during negotiations held in Dubai regarding outright purchase of PaCCS by the FBR.
The FBR had been using the system for approximately seven years, without making any payment. In order to avoid shutdown of PaCCS and to generate revenue with the help of this automated solution and cater to the growing needs of traders across the country, the FBR started paying service charges of $1.33 million to Agility, every month, since August 2011, without any delay.
Undoubtedly, sources said, the Ministry of Finance, the FBR, and tax payers understand it well and believe that making payment of service charges to Agility is not enough to continue PaCCS at leading terminals. The system should be owned, to make sure uninterrupted service delivery. "Immediate shutdown of PaCCS and ultimate loss with pending consignments is several times higher that national exchequer bears willingly," they said.
The sudden launch of WeBOC at QICT, they said, has caused huge losses to the traders, and a large number of consignments are pending clearance at the terminal. "WeBOC is only benefiting the staff at the QICT at the cost of tax payers," they said. Chairman of Pakistan Bedwear Exporters Association (PBEA), Shabir Ahmed, in a letter sent to FBR Chairman Salman Siddique on October 11 on the subject said: "Problems with the WeBOC system" informed him that "our members are complaining a lot in regard to the new system at Port Qasim."
He requested the Chairman, FBR to "immediately withdraw WeBOC without delay as the previous PaCCS was an excellent and less time consuming system." He said that WeBOC is a long, lengthy and outdated process due to which members' export containers have been shut out as all the documentations have to be made when the goods are loaded in the containers which normally are loaded at night. This forces them to open their offices at night when more often the lights go off and also sometimes internet connection pops off.
Further, Shabir said, the WeBOC system is blocked for hours, due to which their containers are released inside the gate late, due to which member exporters miss the cut-off date, which is set by the shipping company. Senior Vice-President of Pakistan Soap Manufacturers Association (PSMA), Tariq Zakaria, in a press release issued here has also complained that its members were facing immense problems following abrupt induction of WeBOC at QICT. "It is time-consuming as compared to PaCCS," he said.
These issues would ultimately affect the performance and growth of national exchequer, sources said, adding that the FBR has already spent over $90 million in the name of automation, though PaCCS was in operation. Practically, the WeBOC system is an 'improved' version of One Customs, and the traders who have experienced this system term it as an 'obsolete system'. Those associated with the business of Goods Declaration, while expressing concern, said that the system lacks technical advisory, data security, and operational services.
The FBR, for unexplained reasons, does not want to immediately shut down PaCCS, and that is why it is paying service charges to the logistics company every month. Though the FBR does not acknowledge it publicly, it willy-nilly believes that the indigenous automated solution is not capable to be replaced with the highly technically developed PaCCS system.
Agility has been providing uninterrupted services for last seven years to the FBR on the condition that it (FBR) would purchase the system or pay the price to continue it, but the revenue body continued the system and unnecessarily delayed its purchase. To purchase the system, the FBR will have to pay a total of $102 million--$62 million against the seven years of service rendered to Pakistan customs, and $40 million to purchase the automated solution. General Secretary of Karachi Customs Agents Association, Faisal Mushtaq, in a press release issued here said that whenever a new system is adopted, the authorities look in a hurry to implement it which "only creates chaos and difficulties for trade and service providers."
The newly inducted automation system at Port Qasim, WeBOC, is no doubt an indigenously developed system, but definitely the required amendments need to be inducted. But since the entire Port Qasim Collectorate has been shifted on WeBOC quite abruptly, there are certain software and administrative issues which are only generating revenue for the terminal operators and adding cost to trade and industry which are adding cost to doing business. He suggested that a help desk be established at Port Qasim to overcome the issues related to WeBOC on day to day basis.