Controversial computerised system set for overhaul
The Federal Board of Revenue's love-hate relationship with the company that implemented the PaCCS software.
KARACHI:
The Federal Board of Revenue (FBR) has had a love-hate relationship with the company that implemented the Pakistan Customs Computerised System (PaCCS) software back in 2005. Despite using the software for about five years at the Pakistan International Container Terminal, the Karachi International Container Terminal and at Karachi’s Quaid-e-Azam International Airport, the FBR is yet to finalise a deal that would permanently deploy the software for all of FBR’s customs requirements.
Media reports have cited FBR officials as saying that PaCCS software, owned by a Kuwait-based company Agility, fails to meet clearance requirements for customs. Despite the reservations, the FBR has officially requested and received an extension for PaCCS till November 30, 2010. This is the fourth extension since May 2010 for the software.
Agility had earlier threatened to go to court against the FBR if the software were to be removed, on the grounds that if the software were in fact faulty then the FBR should not have requested for repeated extensions for its operation. However, Agility has allowed the extensions as a show of goodwill.
However, it appears that local authorities may not be keen to continue with the international customs solutions provider for much longer. The ‘e-customs’ software developed indigenously by Pakistan Revenue Automation Limited (PRAL) appears set to replace PaCCS.
“The e-customs software can be implemented at any time if Agility refuses to continue working with us,” Federal Board of Revenue (FBR) spokesperson Israr Rauf told The Express Tribune. “The software has been tried and tested and can be implemented as soon as needed,” he added.
In response to a query as to why authorities are still using a system that had earlier been deemed insufficient for clearance requirements, the official responded that there are no such reservations about PaCCS.
While the rollercoaster relationship between Agility and FBR seems to be going through a smooth patch for now, it seems the ride may be pulling to a halt soon. “A recommendation for the implementation of our software has already been sent to the ministry of finance through the FBR,” said a PRAL official, speaking on condition of anonymity.
He contended that “the software is ready for use and can be implemented once the notification is issued.”
Rauf had also pointed out that “PRAL software is already in use at the Karachi Port and Port Qasim,” adding that its use can be extended to other facilities as well.
Trust deficit
Stakeholders such as importers, exporters and agents that represent them are irked by the possibility of a rollback of PaCCS. “We are also in favour of the government promoting and using indigenously developed or owned systems,” said All Pakistan Custom Agents Association (APCAA) Chairman Shams Burni. “However, to do that the FBR can just as easily finalise a deal with Agility, pay for the software and have ownership of it,” he added. Burni explained that since the introduction of PaCCS, operational issues in that system have been pointed out and resolved. He claimed that “this has been a slow process and after a lot of going back and forth we have been able to address issues,” adding that “now if they change the platform once again, regardless of the similarities that authorities may feel the new system has, it is bound to bring with it new problems that will require a long time to fix again.”
APCAA has recently received authorisation as a representative body for customs agents and its office-bearers assert that they will use the platform to get their voice heard in case a change is implemented. Agents also pointed out that any new system must cater to long-term needs, including an expected increase in the transit of goods through the country due to transit trade.
“The core issue that needs to be considered is the trust deficit between customs officials and stakeholders that interact with them,” said Abid, a clearing agent. “Importers routinely under-invoice their shipments and customs officials refuse to accept the stated value of goods just as often,” he explained.
PRAL officials are quick to point out that a domestically developed system would be better able to address local problems but whether this system would be able to bridge the chasm of trust between customs authorities and those who interact with them remains an elusive question.
Published in The Express Tribune, October 10th, 2010.
The Federal Board of Revenue (FBR) has had a love-hate relationship with the company that implemented the Pakistan Customs Computerised System (PaCCS) software back in 2005. Despite using the software for about five years at the Pakistan International Container Terminal, the Karachi International Container Terminal and at Karachi’s Quaid-e-Azam International Airport, the FBR is yet to finalise a deal that would permanently deploy the software for all of FBR’s customs requirements.
Media reports have cited FBR officials as saying that PaCCS software, owned by a Kuwait-based company Agility, fails to meet clearance requirements for customs. Despite the reservations, the FBR has officially requested and received an extension for PaCCS till November 30, 2010. This is the fourth extension since May 2010 for the software.
Agility had earlier threatened to go to court against the FBR if the software were to be removed, on the grounds that if the software were in fact faulty then the FBR should not have requested for repeated extensions for its operation. However, Agility has allowed the extensions as a show of goodwill.
However, it appears that local authorities may not be keen to continue with the international customs solutions provider for much longer. The ‘e-customs’ software developed indigenously by Pakistan Revenue Automation Limited (PRAL) appears set to replace PaCCS.
“The e-customs software can be implemented at any time if Agility refuses to continue working with us,” Federal Board of Revenue (FBR) spokesperson Israr Rauf told The Express Tribune. “The software has been tried and tested and can be implemented as soon as needed,” he added.
In response to a query as to why authorities are still using a system that had earlier been deemed insufficient for clearance requirements, the official responded that there are no such reservations about PaCCS.
While the rollercoaster relationship between Agility and FBR seems to be going through a smooth patch for now, it seems the ride may be pulling to a halt soon. “A recommendation for the implementation of our software has already been sent to the ministry of finance through the FBR,” said a PRAL official, speaking on condition of anonymity.
He contended that “the software is ready for use and can be implemented once the notification is issued.”
Rauf had also pointed out that “PRAL software is already in use at the Karachi Port and Port Qasim,” adding that its use can be extended to other facilities as well.
Trust deficit
Stakeholders such as importers, exporters and agents that represent them are irked by the possibility of a rollback of PaCCS. “We are also in favour of the government promoting and using indigenously developed or owned systems,” said All Pakistan Custom Agents Association (APCAA) Chairman Shams Burni. “However, to do that the FBR can just as easily finalise a deal with Agility, pay for the software and have ownership of it,” he added. Burni explained that since the introduction of PaCCS, operational issues in that system have been pointed out and resolved. He claimed that “this has been a slow process and after a lot of going back and forth we have been able to address issues,” adding that “now if they change the platform once again, regardless of the similarities that authorities may feel the new system has, it is bound to bring with it new problems that will require a long time to fix again.”
APCAA has recently received authorisation as a representative body for customs agents and its office-bearers assert that they will use the platform to get their voice heard in case a change is implemented. Agents also pointed out that any new system must cater to long-term needs, including an expected increase in the transit of goods through the country due to transit trade.
“The core issue that needs to be considered is the trust deficit between customs officials and stakeholders that interact with them,” said Abid, a clearing agent. “Importers routinely under-invoice their shipments and customs officials refuse to accept the stated value of goods just as often,” he explained.
PRAL officials are quick to point out that a domestically developed system would be better able to address local problems but whether this system would be able to bridge the chasm of trust between customs authorities and those who interact with them remains an elusive question.
Published in The Express Tribune, October 10th, 2010.