A part payment of $4 million was made on Friday by the Federal Board of Revenue (FBR) to the Kuwait-based software supplier, Agility, owner of the Pakistan Automated Customs Computerised System (PaCCS), towards the purchase of the system.
A highly placed source in Agility told Business Recorder on Saturday that the software supplier has demanded $62 million for the sale of its automated clearance system to FBR. The amount includes six years of services rendered to the national exchequer.
To work out related details and finalise the purchase deal, high officials of FBR and Agility are scheduled to meet on Sunday, July 31, in Islamabad to deliberate and finalise the purchase deal, the source said, adding that in 2005 Agility had tailored PaCCS software for Pakistan on the directives of the then Chairman of FBR, Abdullah Yousaf, to automate the clearance of goods declarations, and cut the roots of corruption from customs offices.
The system proved its effectiveness by generating huge revenues every day. Recently, it was made public that PaCCS has the capacity to generate Rs 300 million revenues daily. It has also shown higher volume of cargo, both in imports and exports. According to rough estimates, customs department generates over Rs 1.75 billion daily. Representatives of trade bodies and importers have appreciated FBR''s stance and believe that if both parties sit together to resolve the dispute related to the settlement of dues, customs department would grow further.
The unnoticed recent shutdown by Agility had hampered customs department. Trade community had also demanded implementation and expansion of PaCCS to other terminals as well. The payment of $4 million to the company showed commitment of the institution to run the system. Agility enjoys support of trade bodies because the system introduced by the company is user-friendly and corruption-free. Development and progress of the country is impossible without automated processes, which eliminate human contact, the users say. "A system in which files can be lost, stolen or simply disappear, is not encouraging. We prefer automated machines working without fear or favour," they added.
The automated system has enabled importers and exporters to file Goods Declarations to customs over the web from their offices anywhere in the country; pay their duties or taxes at their nearest National Bank; and could clear cargo without ever having to visit, or coming in contact with, any customs office. It is a paperless web-enabled environment for submitting Goods Declaration and self-assessment of customs dues. The foolproof system has proved its effectiveness, and contributed towards transparency.
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