FBR readies to buy PaCCS from Agility

The Federal Board of Revenue (FBR) is getting ready to enter into a unique sale/purchase agreement with Agility, to own Pakistan Auto-mated Customs Computerised System (PaCCS), it is learnt. Negotiations between the FBR and Agility, the Kuwait-based owner of the software are, at the moment, in the process to finalise the much-awaited deal.
Technical experts, who were invited by the FBR to determine the value of the system, have completed their assessment. The actual amount, which the FBR would offer for the outright purchase of the system, however, is being kept secret for the time being. PaCCS was launched on public-private partnership basis in 2005, but the way in which the FBR responded to a certain set of conditions forced Agility to sell it because traders are heavily in favour of this system to prevail in Pakistan customs.
Insiders told Business Recorder that it would be a unique case of sale/purchase agreement between the FBR and Agility because the IT companies usually do not sell their software to other companies, and only issue licence to use the system. Similarly, in some cases, they lease the software for a decided period of time, but the ownership of the software remains with the developer company.
Agility is, however, willing to sell the software, permanently, to the FBR. It will be a royalty-free, non-exclusive agreement. Agility would get one-time benefit out of its sale, but the FBR would earn huge profits associated with this automated solution.
During July-December period, PaCCS collected Rs 26.445 billion, depicting 7.8 percent growth as against the collection of Rs 24.51 billion made in the last fiscal year. The FBR can modify the system according to the unique requirements of importers. Currently, there are 30,000 users of PaCCS. The FBR can also expand it to other terminals.
According to details available here, the FBR will also have the right to even shut down the system and replace it with any other fully or semi-automated software. PaCCS was launched in 2002 with the ambition to reform entire customs and cargo system. The initiative called the Customs Administrative Reform (CARE) had enhanced the functioning of customs and cargo system by business process re-engineering of customs and port processes; changes and modernisation of national legislations with respect to customs and creation of electronic and paperless environment; and development of hardware, software, networking and other facilities as per CARE requirements through Pakistan Automated Customs Computerised System (PaCCS).
PaCCS is an integrated, web-enabled, paperless, real-time system launched on March 23, 2005 and since then is successfully working for customs clearance of containerised imported and export cargo through KICTL, PICT and OICT. The pilot was initially launched at KICTL in March 2005 but in view of emerging requirements from stakeholders (especially terminal operators and shipping lines/agents) it was expanded to other two terminals PICT and OICT in September 2006.