Reforming Trade Facilitation: Experience of Pakistan Presentation for Trade Logistics Advisory...
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Transcript of Reforming Trade Facilitation: Experience of Pakistan Presentation for Trade Logistics Advisory...
Reforming Trade Facilitation: Experience of Pakistan
Presentationfor Trade Logistics Advisory Program
World Bank, Washington DC
Dr. Manzoor AhmadAmbassadorPakistan Mission to WTO
[email protected] 2008
2
Evolution of reforms• Need for reform
• Outsourcing of Customs functions
• Early initiatives
• Express Lane Facility
• Electronic Assessment System
• Risk Indicated Selective Examination
3
Overall reform process• Simplification of tax laws
• Simplification of tariff
• Review of procedural notifications
• Introduction of self-assessment for all taxes
• Customs Administrative Reforms (CARE)
• Pakistan Customs Computerized System (PACCS)
4
PACCS Salient Features• Self-assessment
• Filing of Declaration over the web 24/7
• Checking through PACCS Processing and Risk Management System
• One electronic declaration replaced 26 clearance steps, 34 signatures and 62 verifications
• Four components:– TARIP (Tariff & Integrated Policy)– INTRA (Integrated Regulatory Authorities)– ECHO (Enhanced Cargo Handling & Port Optimization)– ACCESS (Automated Customs Clearance System)
5
Process Flow of Clearance Authorization
Filing of Declaration
Declaration Accepted
Payment of Taxes
More Information
OK to ClearPACCS Processing
Declaration NOT Accepted
First Review
Second Review
Relevant Committee or Appeal Procedure
Clearance Authorized
6
Comparison of clearance time
12.5%
31.8%
26.1%
25.3%
4.3%
<1 Day <2 Days <4 Days <6 Days Day 7 & later
Pre-PACCS
7
Comparison of clearance time between
70%
14%
3%5%
1%
7%
Less than 5 Min Less than 30 Min Less than 1 HrLess than 12 Hr Less than 24 Hr Over 24 Hr
Post-PACCS
Comparison of clearance time
8
Challenges• Resentment by users of old system
• Adjustment by regulatory authorities
• Continuity of the system
9
Overcoming challenges
• Pareto Principle (80:20 Rule)– Bringing on board 20% traders with 80% share in trade,
4 shipping lines, 1 container terminal
• Successful results
• Dedicated team
• International endorsement
10
Key players
• A small team of Customs experts supported by top management
• Karachi International Container Terminal
• American President Lines
• Software developers
11
What could have been done better
• More clarity about the roll out programme
• Better communication with stake-holders
12
Lessons learnt
• Outsourcing of customs not cost effective
• Piecemeal reforms only yield piecemeal results
• Continuity at top level
• Need for a dedicated team
• Financial incentives
• Firm up business process and then make corresponding legal changes
• Need for changes in regulatory framework