Automated system: FBR imposes charges on goods declaration

Revenue collected will be used to make payments for software.

ISLAMABAD:

The Federal Board of Revenue (FBR) has imposed service charges of Rs250 on every goods declaration for clearance of cargo under Pakistan Automated Customs Computerised System (PaCCS) in a bid to generate funds for regular payment to the automated software service provider.

In this connection, the FBR issued a notification on Friday, imposing the extra charge on import of consignments which will help the revenue board in paying $600,000 per month to Kuwait-based logistics company, Agility International, for running the software in Pakistan.

The FBR move came following refusal of the finance ministry to provide financial support due to cash crunch in the country, said an official of the revenue board.

The ministry told the FBR that all ministries, divisions and departments had been instructed to control unnecessary expenditures and adopt financial discipline because of financial constraints and the FBR should arrange funds themselves.

According to the FBR official, 46 per cent of cargo is cleared through PaCCS and the remaining through locally developed One Customs system.

So far, Agility had been paid $880,000 for software services and a further $600,000 is expected to be provided this month, the official said, adding payments would continue by the time the cargo clearance service came to an end.

Earlier, Agility and FBR had sparred over the payment issue, leading to suspension of automated cargo clearance services a couple of times. Agility has also filed a case in the International Centre for Settlement of Investment Dispute.

Published in The Express Tribune, November 26^th, 2011.