Customs-related reforms: FBR to set up new Directorate General

In a major move to introduce reforms in customs administration, the Federal Board of Revenue has decided to set up a Directorate General of 'Reforms, Automation and Risk Management' to deal with all customs-related reforms including computerisation, automation, risk-management systems and monitoring/functioning of Web-Based One Customs (WEBOC) clearance system.
Sources told Business Recorder here on Saturday that the FBR will issue a notification for setting up Directorate General of 'Reforms, Automation and Risk Management'. Under the organisational structure of the proposed directorate, it would be headed by a Director General of Grade-21. The directorate would be supported by two Directors of Customs ie Director Automation and Director Risk Management. Both these directors would work under the Directorate General of 'Reforms, Automation and Risk Management'. Three Additional Directors of Customs would assist the said Directors. One Additional Director of Customs would deal with customs automation and two Additional Directors of Customs would facilitate reforms in the tax administration.
The Directorate General of 'Reforms, Automation and Risk Management' would be assigned the task to develop the computerised systems. It would also have the mandate to develop the hardware and software for different IT systems and computer processes. The new directorate would also develop the risk-management system to facilitate the customs clearance systems. It would also liaison with the domestic and international trade community. The Business Processes Re-Engineering (BPR) would also be done by the said directorate.
Others functions of the Directorate General of 'Reforms, Automation and Risk Management' would also incorporate international best practices in the local customs systems. It would also be instrumental in introducing modifications and improvements in the local customs systems and procedures. The directorate would also give training to tax officials on customs systems and processes.
Sources said that the Directorate General of 'Reforms, Automation and Risk Management' would be established with the prime objective of introducing indigenously developed reforms in the customs administration. The FBR has already implemented indigenously developed WEBOC at ports for clearance of imported consignments, replacing the expensive software of M/s Agility. Two directors including Director WEBOC and Director Risk Management System (RMS) have been working in the field formations to implement home-grown systems in the field formations. The proposed directorate would play a key role in implementing home-grown reforms in the customs administration, sources added.
The Project Completion Report (PCR) of the FBR on the Tax Administration Reform Project (TARP) has identified major customs related reforms which were not implemented. The reform activities conceived improvement areas, but could not implement under the TARP, a National Intelligence Division (NID) encompassing Risk Management Unit (RMU) was to be created but still in limbo. Although the RMU has been established, it does not serve the purpose as envisaged in the original plan. The NID had to identify and prepare cases for investigation where a serious tax evasion or prohibition was suspected.
Sources said that the Customs and Tax Fraud Division (CTFD) was to be established. However, it was not established under reforms. The responsibilities of CTFD as given in the reforms strategy document included detecting and eradicating major fraud, international fraud and serious criminal offences which posed an economic, industrial and social threat to Pakistan. The IT System was to be developed which was supposed to provide necessary cargo accounting controls through reconciliation of manifests and Goods Declarations and to report un-cleared cargo for auction.
The establishment of a Centralised Valuation Directorate to determine transactional value and to check under-invoicing through post-release verification is still pending. The Export Classification System has not yet fully adopted Harmonised System to be reported on the basis of accepted international coding structure. Besides, other reforms in the customs administration are still pending, sources added.