The launch of Web Based One Customs (WeBOC), to replace Pakistan Automated Customs Computerised System (PaCCS) would send Federal Board of Revenue's (FBR's) tax collection endeavours limping.
This is the considered view of stakeholders and exporters who are facing immense problems following the abrupt induction of WeBOC at Qasim International Container Terminal (QICT) as a result of a public notice issued by FBR on September 20, informing the stakeholders about shifting the consignment clearance, from September 23, from PaCCS to WeBOC at QICT for imports and exports purposes.
"WeBOC is a useless and old age program and is not cost-effective" was the forthright comment of one of country's leading exporters and Chairman of Pakistan Bedwear Exporters Association (PBEA), Shabbir Ahmed. Fuming with dismay, he asked with the scourage of load shedding, law and order situation and related problems looming large, how could one meet the container dispatch schedule and adjust to the new system?
He said: "Mostly, our containers are loaded at the factory at night and are dispatched early in the morning to the port. During night, we have to prepare the documents like packing list, etc, and scanned copies are to be sent by e-mail to customs. The result is that we have to open our office at night, and if there is no electricity then how on earth can we send scanned copies by e-mail when the internet system is down?"
He further explained that since the containers are transported during night due to traffic police restrictions, under WeBOC system night staff is appointed to prepare documents to avoid unnecessary transportation night detention charges.
Under the WeBOC system, "we have to engage the following:" Scanner, for scanning documents required by customs, and generator, in the absence of electricity. He further highlighted that:
-- After vessel cut-off time in WeBOC we cannot load container due to the lengthy procedure involved under this system.
-- In PaCCS we can file documents anywhere in the world due to paperless requirements of custom, and
-- We have to do lot of searching in WeBOC, which is time consuming as compared to PaCCS.
During the month of June this year, WeBOC was initiated by FBR as a trial run for a small quantity of consignments, mainly scraps. It is an improved version of One Customs developed by Pakistan Revenue Automation Limited (PRAL), a subsidiary company of FBR.
Tax payers say that the future of WeBOC semi-automated software is completely uncertain and the authorities would be failing in making it successful because it is not an automated solution. After submitting declaration file, the tax payers are required to move the file to different officer's doorsteps to clear Goods Declarations which would cause corruption in customs.
"We do not understand the performance and functionalities of the system because its modules are difficult and lack risk management system also which is the backbone of automation. If that does not exist, then the system can't perform its job independently," according to the stakeholders, exporters.
Concerned tax payers believe that FBR launched this system on the desire of some customs officials having vested interests, otherwise it does not have the capacity to handle the burden of growing trade. The system lacks Requirements Specification Document (RSD) to work, a prerequisite to file declarations.
There is no WeBOC directorate which could take responsibility of success and failures and so also there is no project director who could attend to the issues and resolve the problems of tax-payers in clearance of Goods Declarations. It is also learnt that the qualifying officials of Pakistan Customs are not accepting the responsibility to run WeBOC because of its uncertain future.
The system was never tested, verified or checked for formulas for calculation of duties and taxes and functionality of each module. WeBOC ignores all principles of the Software Development Life Cycle and has been created out of thin air with zero documentation, written requirements, validations, training and user/stakeholder ownership, say the stakeholders.
WeBOC is PRAL's baby and, according to stakeholders, instead of contributing to transparency and enhancement of tax revenue generation, PRAL has opened new avenues for evasion and false claims in the FBR, stakeholders believe.
Although PRAL runs on public money yet conveniently it is not a government entity and its assets, liabilities, spending, contracting, inventories remain beyond the jurisdiction of mandatory annual audits that apply to government organisations. Since its inception not a single audit of any of the areas of PRAL has ever been conducted or made public, any suggestion of such audit is strongly resisted by FBR.
Karachi Custom Agents Association (KCAA) has also expressed concern over the replacement of PaCCS with Web Based One Custom (WeBOC), saying that the decision may create draconian impact on trade.
Talking to Business Recorder, the newly elected president of KCAA, Saifullah, said the WeBOC system is creating immense difficulties for the stakeholders.
In spite of having quick and simple customs clearance system (PaCCS), the revenue body, without taking the stakeholders on board, has replaced the same with WeBOC at QICT besides planning to expand its service to all container terminals.
He said custom clearance process after this latest development at QICT, has become problematic for the stakeholders as the system is examining every container, albeit the PaCCS clears the same through Risk Management System (RMS), which not only minimises cost of doing business but also expedites the clearance process.
The President of KCAA said the association has expressed resentment over the said decision through a letter sent to the Federal Board of Revenue (FBR), adding that KCAA could convene its general body meeting over this issue, if the Board failed to resolve the problems which have surfaced after the replacement of PaCCS.
Younus Somroo, a former president of KCAA, also dispelled the impression that the customs agents are satisfied with the performance of WeBOC. He said that it is premature to gauge the performance of WeBOC as the first vessel, which is supposed to be cleared through WeBOC, anchored only on last Tuesday.
He expressed apprehension that if the WeBOC failed to meet the standard of PaCCS, the chaos-like situation would be created at Qasim International Containers Terminal (QICT), which would disrupt the automated clearance process besides providing severe financial shocks to the business fraternity in terms of demurrages and detection charges. There is an absence of user ID and password and the taxpayers are at the mercy of customs authorities for filing goods declaration, he said.
Sharjeel Jamaluddin, a representative of Pakistan Economic Forum and one of the founders of PaCCS Club, charged customs authorities with taking kickbacks in the clearance of consignments through WeBOC.
He said that customs officials have fixed Rs 150 000 for each container of fabric and auto parts, Rs 25000 for each container of crockery and Rs 80000 for every container of carbon consignment and this amount is being collected as bribe for the clearance of these containers.