Customs Engaging Traditional and New Partners with Purpose: The Role of Pakistan Customs

Amanullah Tareen, Additional Collector

The World Customs Organization (WCO) has set the tone for the year 2024 by dedicating its yearly theme ‘Customs Engaging Traditional and New Partners with Purpose’ to purposeful partnerships.

The initiative underscores the transformative nature of global commerce and the imperative for customs authorities worldwide to adapt and collaborate.

The theme draws attention to the evolving landscape of customs operations in a globalized world, emphasizing the importance of collaboration with both traditional and emerging partners. Against this international backdrop, the role of Pakistan Customs becomes vital, navigating the challenges and opportunities posed by long-established and new partners.

The WCO's theme for 2024 reflects a profound acknowledgment of the transformational forces influencing customs operations globally. Traditionally, customs administrations have been crucial in facilitating the clearance of international cargo, enforcing laws/regulations and collecting revenues.

There is no gainsaying the fact that traditional partners, often established through historical trade relationships, remain integral to the customs ecosystem. These partners bring extensive experience rooted in conventional frameworks which facilitate smoother cross-border transactions.

However, the contemporary global trade environment demands a more robust and all-embracing approach. The inclusion of ‘New Partners’ signifies the recognition of non-traditional stakeholders, such as technological innovators, private sector stakeholders, non-governmental organizations, academic and research institutions, in shaping the future of customs operations.

The landscape of customs engagement is expanding, encompassing diverse stakeholders with varied interests and expertise.

The challenge lies in leveraging these partnerships with a clear purpose of streamlining and modernising customs processes and combating illicit activities such as trade frauds, mis-invoicing, mis-declarations and smuggling.

One group of new partners comprises technology firms and innovators. In the context of Pakistan Customs, engaging with these partners involves tapping into cutting-edge solutions such as artificial intelligence, Machine Learning, data analytics and blockchain.

Engaging technology-driven entities enables Customs to modernize its processes, enhance efficiency, and bolster risk management systems. It is reassuring to assert that Pakistan Customs has embraced these state-of-the-art technological innovations, positioning itself as a future-ready organization.

However, these technological solutions need to be further expanded to ensure wider embrace and applicability.

Another pivotal set of new partners includes members of the private sector, such as logistics companies, freight forwarders, manufacturers, and trade associations - businesses playing critical role in the supply chain.

By establishing purposeful partnerships with private sector stakeholders, Pakistan Customs can familiarize itself of industry trends and best practices by cultivating a more streamlined and robust trade ecosystem.

This collaboration should extend beyond routine compliance to create solutions aimed at addressing shared challenges and should aim at developing innovative solutions, putting in place mechanism of improved information exchange and developing mutual understanding of the challenges faced by both sectors.

Academic institutions and research organizations form another vital category of new partners. Partnering with these institutions will enable Pakistan Customs to access expertise, insights, and research that contribute to informed decision-making.

For instance, research collaborations can play a crucial role in accurately identifying the scale and devising effective strategies to combat issues such as mis-invoicing and smuggling.

Academic partnerships can also facilitate capacity-building initiatives, ensuring that customs officials are equipped with the latest knowledge and skills needed to keep them abreast of the latest global trends.

In an era marked by rapid technological progress, customs administrations, including Pakistan Customs, are obliged to actively engage with these transformative elements.

This engagement requires a careful equilibrium between maintaining established customs practices and adopting innovative approaches to accommodate the evolving requirements of the global supply chain.

As the linchpin of international commerce, the global supply chain calls for a customs strategy that goes beyond traditional methods. For Pakistan Customs, this means utilizing technology to improve cargo clearance efficiency, applying comprehensive risk management tactics, and using data analytics to maintain a competitive edge.

It must stay in sync with the rhythm of the global supply chain, aligning its traditional duties with the challenges of a globally interconnected and technology-oriented trading landscape.

One of the critical areas where partnerships come into play is combating illicit trade. Pakistan, with its strategic geographical location, faces challenges related to smuggling, money laundering, and the unlawful movement of goods across its borders with Iran and Afghanistan.

Engaging traditional partners, such as neighbouring countries and international law enforcement agencies, becomes imperative for effective border management. Simultaneously, embracing new partners, including technology firms specializing in surveillance and data analytics, can empower Pakistan Customs with advanced tools to enhance their enforcement capabilities.

To further strengthen enforcement endeavours, a comprehensive whole-of-government approach is being employed.

Given the resource constraints faced by Customs, other government agencies' resources are being leveraged by Pakistan Customs in the fight against smuggling and these collaborative endeavours can benefit immensely from innovative technological solutions.

The theme's emphasis on purposeful engagement is particularly relevant for Pakistan Customs in the context of its limited resources. Striking a balance between traditional and new partners requires a clear strategic vision and effective resource allocation.

Traditional partnerships may provide stability and reliability, but embracing innovation and new collaborations is essential for staying agile and responsive to ever-changing challenges. Besides, embracing technological innovations drives efficiency.

Despite its challenges, Pakistan Customs has demonstrated commitment and innovation in aligning with the objectives of the WCO. Leveraging traditional partnerships with neighbouring countries, such as Afghanistan, Iran and China, Pakistan Customs has strengthened cross-border cooperation to address shared challenges.

Concurrently, initiatives like the integration of modern technological solutions, such as artificial intelligence and Machine Learning, showcase Pakistan Customs' dedication to engaging with new partners for enhancing efficiency and effectiveness.

Copyright Business Recorder, 2024