The Chief Executive Officer of Pakistan Single Window (PSW), a government-owned trade network integration entity, revealed on Wednesday that large-scale tampering of Goods Declaration (GD) forms was made possible due to a technical glitch in the WeBOC (Web-Based One Customs) system, dating back to 2015.
In a briefing with journalists, PSW CEO Syed Aftab Haider said the flaw allowed changes in GD forms without backend validation, enabling importers to alter declared quantities and descriptions of goods. He said that he had recommended the Federal Board of Revenue (FBR) to register First Information Reports (FIRs) against those involved.
"There was no backend validation of GD changes in WeBOC since 2015," said Haider. He added that this loophole was exploited by unscrupulous users to manipulate imports data.
Haider said PSW took over WeBOC management in 2022 but cannot make system changes without Pakistan Customs' approval.
In March, The Express Tribune reported that more than 10,000 GD forms were tampered with, helping evade billions in taxes. While the PSW CEO claimed that no revenue was lost, there is no rationale behind changing forms without importers at least gaining financial benefits given that they are exposing themselves to criminal cases.
The scam raised serious concerns about the credibility of GD forms, which are supposed to be secure records detailing importers, agents, goods, and duties.
"This alteration, effected through changes in the browser script, did not need any help from WeBOC, PSW, or Information Technology staff," stated the PSW earlier this year.
Prime Minister Shehbaz Sharif had directed the PM's Inspection Commission (PMIC) to investigate the scam. Though the PMIC report has not been made public, Haider said the PMIC accepted the PSW's stance that the issue was a technical glitch.
The Express Tribune had reported that to remain undetected, the corrupt network did not alter the Harmonised System (HS) code, a unique numerical identifier for traded goods, they manipulated the descriptions and quantities of goods.
The CEO said WeBOC has not undergone a technical audit for years. PSW is now hiring external auditors to evaluate the system.
"There's a clear demarcation between the PSW and Customs. PSW only manages the WeBOC system, but Customs controls the design," said Haider.
Commenting on a separate scam involving smuggled vehicles cleared as duty-paid, Haider said this resulted from the misuse of user codes, and there was no evidence of system failure. FBR has suspended the officers whose codes were used to clear the smuggled vehicles.
The CEO also announced the launch of a new pilot project, the Port Community System (PCS), which is to be inaugurated by PM Shehbaz Sharif in the first week of August in Karachi. The PCS is designed to streamline port operations and fulfil International Maritime Organisation (IMO) requirements.
"It will serve as a one-stop platform for all port transactions, providing real-time updates on cargo, vessels, and berthing to ensure seamless coordination between port stakeholders," said Haider. He said the system was developed in-house and PSW resisted pressure to adopt foreign-developed systems. However, he clarified that the new PCS will not directly reduce container clearance times but will make the process paperless and more efficient. "Globally, container grounding time is not more than three hours, but in Pakistan it goes as high as 26 hours," said the CEO, urging reforms to reduce cargo examination delays to reduce the dwell time of containers.
He also stressed the need to integrate scanners installed at various ports. Scanners at Karachi Port and the Torkham border are not electronically linked, which creates lots of problems. Haider added that the FBR is working on scanner integration and installing new equipment to improve imported goods monitoring.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ