Pakistan Customs: a responsible member of International Customs Community
Borders divide, Customs connects is the theme selected for year-2012 by World Customs Organisation (WCO). This theme truly reflects the role of Customs formations in today's technologically globalise but geographically divided world. World Customs Organisation is of the view that for the international Customs community, connectivity connotes a vision of arrangements world-wide that support the smooth and lawful flow of goods, services, people, technologies, capital, culture, and ideas.
It galvanises the establishment of partnerships, the preparation of research, the sharing of knowledge, and the delivery of capacity building. Connectivity thus paves the way for community protection, modernisation, and economic development.
Connectivity also encapsulates strengthened co-ordination, co-operation, and communication between Customs administrations, with other government agencies and institutions, and with the private sector, at national, regional and international levels. Because borders are synonymous with division, the main challenge for Customs administrations is to identify and pursue the best methods to increase connectivity, which refers to people-to-people, institutional, and information linkages, that underpin and facilitate the achievement of objectives.
Having such an important role in today's world, Customs administrations around the world are faced with the following issues, identified through a process of scanning the international environment and drivers.The strengths and weaknesses of WCO and its Members will continue to be defined by the core roles of Customs (1) Revenue Collection; (2) National Securityand Community Protection (3) Trade Facilitation; and (4) Protection of Intellectual Property Rights.
Pakistan Customs being an active member of the International Customs community, interacts with Customs organisation of other countries under the umbrella of WCO. The interactivenature of Pakistan Customs has never let it to lag behind in fulfilling its national as well as international commitments as a progressive, dynamic andresponsible organisation. Pakistan Customs is not oblivious to the challenges of the modern world. That is why Customs embarked upon an agenda of modernisation of their systems through business process re-engineering, improving procedures for clearance of goods and realigning of their rules and regulations in line with the covenants set by World Customs Organisation. It was not an easy task. But sheer hard work of customs development team and their commitment to the task heralded a new era in history of customs by developing and implementing a wider use of technology in speedy and swift clearance of goods in Pakistan. Unlike most of other public sector organizations, Customs was among very few departments which underwent computerisation and today most of its processes are carried out electronically. These initiatives like automated clearances, facilities of green channels and increased application of Risk Management Systems have also been commended by different international organizations.
Rapid expansion in trade volume of Pakistan which is now crossing mark of US $60 billion, tricky Afghan Transit Trade, long and porous borders coupled with staffing problems, out dated weaponry and less budget for Customs infrastructure have increased pressures on organisation and increased the list of challenges it has to overcome.
Technology has been an enabler but infrastructure related short comings, staffing issues and lack of training and research are still haunting the organization.Trade volumes have tocontinuously grow and security needs have to increase. It has long been apparent to Customs that there are no physical security processes that can be successfully applied to match an ever expanding threat potential while, at the same time, facilitating the rapid clearance of legitimate trade across national borders.
Therefore, the sole means by which the safety of the global supply chain can be secured, without the imposition of a crippling impact on the necessary free flow of legitimate international trade, is through the consistent and effective application of research and knowledge along with the effective use of technology and international best practices in security and facilitation.
In order to overcome the aforementioned challenges and to meet expectations of the stakeholders for a fair, speedy and transparent administration, the Organizationhas to strike the right balance between trade facilitation and enforcement of law coupled with heightened co-operation with international customs and business community, enhanced information sharing with other organizations and adoption of best practices whilst demonstrating the highest level of integrity.
A Glimpse of the Performance of Pakistan Customs In the end, to have a glimpse of the performance of Pakistan customs we have to use the yard sticks of revenue collection and anti-smuggling activities including protection of Intellectual Property Rights.Pakistan Customs collected Rs 184.7 billion during FY 2010-11 in form of customs duty although the average tariff rate has been reduced significantly from 78% in 1980 to less than 13 % in 2010-11.It also contributes around 36-40% in the collection of direct tax, sales tax, federal excise duty at import stage.
During FY 2009-10 Pakistan Customs collected around 36 % of total taxes ofRs 1380 billion. As far as anti-smuggling functions of Pakistan customs are concerned,strict administrative and enforcement measures have resulted in effecting not only huge seizures but also helped to generate additional revenue.
Some of the statistics of such successful cases are as follows: (TABLE A) SEIZURE OF SMUGGLED GOODS AND DRUGS BY PREVENTIVE COLLECTORATE, KARACHI FOR THE PERIOD FROM JANUARY-DECEMBER, 2011.
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S. No DESCRIPTION QUANTITY VALUE
OF GOODS (In million)
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1 2 6 7
1. VEHICLES 95 46.9
2. CLOTH F/O 130186 Yads 9.8
3. CURRENCY Assorted 7.5
4. ARMS & AMMUNITION. 9 Gun,02 Air
Gun,12 Pistol&
2486 Rounds 1.4
5. TEA 16681 Kgs 3.9
6. TYRES & TUBES 545 Tyres& 2.9
1070 Tubes
7. LIQUOR 17520 Bottles 54.3
& 69972 Cans
8. DIESEL 390471 Litrs 34.2
9. GOLD/SILVER a) Gold 70 gram 0.1
b) Silver 6.90 Kgs 0.8
10. CIGARETTES (Fake/Foreign) 12884 Cts 8.1
11. ELECTRONIC GOODS Assorted 6.3
12. ANTIQUES 01 Flower Vase 0.5
13. PIRATED CDs/DVDs 5552 Nos 0.2
14. BLANKETS 540 Nos 0.3
15. MEDICINE Assorted 1.4
16. GUTKA (All Brands/Origin) 12,266,852 24.1
Pouches
17. TOILETRIES Assorted 15.5
18. MISC. GOODS / Hora / Boat Various 111
SUB-TOTAL 347.5
NARCOTICS:
CHARAS 8.30 Kgs --
HEROIN 124.395 Kgs 11.7
AMPHETAMINE 4 Kgs 40
EPHEDRINE 245 Kgs 5680.1
POPPY STRAW
COCAINE
NO. OF PERSONS ARRESTED 86 --
NO. OF PERSONS CONVICTED --
6079.32
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(TABLE B) STATEMENT OF SEIZURES BY PAKISTAN CUSTOMS FOR THE PERIOD FROM JULY-SEPTEMBER, 2011.
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S.No Description of Quantity of CIF Value
Goods Goods (In million)
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1 Vehicles 622 635.5
2 Cloth Foreign 895,772 YRDS 150.4
3 Currency (Pak) - 3.4
4 Tea 50,744 KGS 12.9
5 Tyres& Tuber 4,082 NO 15.1
6 Auto/Spare Parts 698 KG 26
7 Liquor 2,945 BTLS 1.8
8 Timber 1,394 MTR 2.3
9 Diesel POL 406,905 LTR 38.8
10 Cigarettes (Fake/Foreign) 13,544 CTNS 7.2
11 Electoronic Goods 8,191 13.1
12 Pirated CDs/DVD 29,800 2.8
13 Blankets 1,555 1.5
14 Medicine 819 2.6
15 Pan Parag/Zafrani Patti 6,300 PCTS 2.8
16 Gutka (All Brands/ Origin) 9,115,333 PCTS 15.8
17 Toiletries 25,105 PCS 3
18 Misc. Goods 9,270,181 202
Total 1137.95
NARCOTICS
Charas 1,148,765.00 KG 1.5
Heroin 8,106.57 KG 53.2
Hashish 3.55 KG -
Popy Straw 71.00 KG -
Cocaine /Bhang - -
NO. OF PERSONS
ARRESTED 19 -
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