A high-powered Federal Board of Revenue (FBR) delegation has flown to Dubai to negotiate transfer of exclusive rights of PaCCS with officials of Agility, Kuwait-based owner of the software. The issue which has been lingering for over a year may now come to its logical conclusion.
The delegation is headed by FBR Chairman Salman Siddique and includes Collectors PaCCS, Nisar Ahmad and Shaukat Ali. The discussions are likely to continue till September 15, where all matters related to the purchase of PaCCS would be taken up in detail. During their inconclusive meeting in March this year, the FBR had agreed to purchase the system before July 25.
Further, the FBR will pay service charges of $1.3 million per month to Agility. A part payment of $4 million was made by FBR to Agility to continue the system. Agility has demanded $62 million for the sale its automated clearance system to FBR. The amount includes six years of service rendered to the national exchequer.
Recently, it was made public that PaCCS has the capacity to generate Rs 300 million revenue daily. It has also shown higher volume of clearance of cargo, both in imports and exports. According to rough estimates, customs department generates over Rs 1.75 billion daily. The automated system has enabled importers and exporters of Goods Declarations to customs over the web from their offices anywhere in the country; pay their duties or taxes at their National Bank of Pakistan branch; and clear cargo without ever having to visit, or coming in contact with any customs officer.
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. According to traders, PaCCS has proved its effectiveness by generating huge revenues every day. The figure of revenue would multiply if it was implemented and expanded to other terminals across the country.
In 2005, Agility had launched a pilot PaCCS software for Pakistan on the directives of the then Chairman, FBR, Abdullah Yousaf, to automate the clearances of goods declarations and to cut the roots of corruption from customs offices. Since then, the system is running smoothly, providing rapid clearance of consignments, besides generating huge revenue for the exchequer. On the demand of traders, PaCCS is likely to be implemented and expanded to other terminals also.
Trade bodies have welcomed FRB decision to acquire country's first automated solution developed by Agility which has the capacity to enhance the volume of trade and benefit the economy. They believe that if both parties sit together to resolve the dispute related to the settlement of dues and purchase of the system, Pakistan Customs would grow further. The acquisition of the system in necessary and unavoidable decision, they say.
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