FBR, Agility likely to resume bogged down talks

The bogged down talks between Federal Board of Revenue (FBR) and Agility - Kuwait based software supplier - are likely to be resumed sometime this week, a reliable source told Business Recorder on Thursday.
The talks would relate to continuation of Pakistan Automated Customs Computerised System (PaCCS) and future relationship between FBR and Agility, which had launched PaCCS in the country in 2005 to automate customs procedures.
Source said that during the high level meeting, officials of FBR and Agility would talk about the opportunities and challenges "which had gone through rough weather", would focus on the continuation of PaCCS, which enjoyed awe-inspiring support of trade community across the country, and its expansion to other terminals also.
It is likely that FBR officials may ask Agility to modify the system as per the requirements of trade community. As a matter of fact PaCCS team has already assured FBR and trade bodies that the system would be modified to make it more user-friendly.
PaCCs was launched in 2005 by then Chairman, FBR, Abdullah Yousuf, as a pilot project. But soon after its successful launch, some vested elements started creating problems in its implementation.
According to chronology of events, on May 2010, FBR officially announced closure of the system and installed Web Based One Custom (WEBOC) without proper testing which caused huge losses to the national exchequer.
Soon after that trade bodies pressurised FBR to continue with PaCCS because the country had no alternate system available to install overnight. Agility on commitment from FBR extended operations for two more months.
But after two months, FBR failed to hammer out the issues with Agility on the continuation of the system and asked for another extension for one month, and thereafter FBR got four extensions without negotiating with Agility. At the beginning of last month, Federal Minister for Finance Dr Abdul Hafeez Shaikh asked FBR to sit with Agility look for the opportunities to continue the system and had further made it clear that the government cannot afford litigation with Agility and wanted resolution of the issues as soon as possible.
Since there was no option left, FBR under its new chairman has now decided to sit down and negotiate with Agility. Positive developments are expected in the upcoming high-level meeting of both the parties involved. This development has been lauded by the trade community and has been termed necessary for the good of the country.
FBR's multifarious efforts to meet the tax revenue target without further burdening industry and businesses are only possible if the system is fully automated, they say. "The manual procedures to clear Goods Declarations have kept us behind neighbours in many fields and this is the main reason behind our backwardness," they added.
The country had gained in billion of rupees from PaCCS, which might otherwise have gone into the pockets of corrupt officials, they said.
Satisfied stakeholders say that PaCCS has proved its effectiveness and contributed towards transparency. It should be rolled out in the rest of the country without further delay. The system has improved cash flow of businesses by expanding access to markets through simpler procedures and expediting rebates of export duties to traders and by reducing corruption. Customs processes at Karachi Port have been simplified considerably since PaCCS was implemented. Under PaCCS one simple electronic declaration has replaced up to 26 clearance steps, 34 signatures, and 62 verifications. The officials should have confidence on the developers of this revolutionary software.
PaCCS is one window system; web enabled and carries out all activities related to customs from anywhere in Pakistan. The system can clear cargo 365 days a year, day or night. All declarations are processed by highly advanced Processing and Risk Management Systems.