Asia-Pacific Trade Facilitation Forum: Setting the Regional Agenda

Transcription

1 Asia-Pacific Trade Facilitation Forum: Setting the Regional Agenda November 2009 Managing Risk and Supply Chain Security: Experience and lessons learned from Pakistan Javaid Mansoor Executive Secretary National Trade and Transport Facilitation Committee

2 North: China East: India South: Arabian Sea West: Iran and Afghanistan Pakistan provides short land route to land locked Afghanistan and Central Asian States, and western region of China

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5 Karachi Port Karachi International Container terminal (KICT) Pakistan International Container Terminal (PICT) Port Qasim Qasim International Container Terminal (QICT) Gwadar Port (newly established) Torkhum and Chaman for transit trade to/from Afghanistan and Central Asian States (CAS) Sust to/from western China Wagah to/from India Taftan to/from Iran

6 To ensure that all legitimate government revenue is recovered To ensure security of shipment To reduce Customs clearance time to facilitate trade To reduce the cost of doing business by reducing the origin to destination transportation time To prevent: transportation of weapons, ammunition, chemicals and radioactive material that may be used for terrorism smuggling of narcotics fraud through wrong declaration of value, HS commodity code and quantity smuggling through transit trade

7 Pakistan Customs Computerized System (PaCCS) Pilot Project at KICT introduced in March 2005 Extended to QICT and PICT in 2007 Processes about 30,000 Goods Declarations (GDs) per month Annual throughput over 2,000,000 TEUs Risk management with selectivity criteria Over 50 percent GDs cleared within 8 hours One Custom System Implemented at all other Customs stations All Customs stations electronically interlinked Web based submission of GDs About 3,000 GDs processed everyday Built in risk management processing not as thorough as PaCCS Examination of greater percentage of consignments Customs clearance time longer than PaCCS

8 Factors considered for determining risk Country of origin; History of exporter; History of importer History of clearing agent Commodity characteristics declared value compared to previous record quantity compared to previous shipments record mix of commodities in a consignment Actual weight compared to declared weight Consignments meeting risk free criteria cleared without examination through green channel Consignments identified for examination by system checked by Principal Appraiser/ Assistant Collector to decide passage through green channel or examination Non-intrusive examination through scanner Physical examination only if scanning indicates discrepancy

9 Export documents lodged 24 hours before departure of ship Containers stuffed and sealed at exporters premises under security supervision Containers transported to port by transporters security cleared by the exporter On arrival at container terminal, container visually examined and monitored for radio active material Tempering of security seal or other infringement reported to Customs for action Non intrusive or physical examination carried out where considered necessary All container terminals and other port facilities comply with IMO ISPS Code

10 An advanced version of Container Security Initiative (CSI) of US Homeland Security Department IC 3 Programme implemented at Port Qasim for screening of all container shipments to USA It involves: 100 percent scanning of export containers to USA RPM screening with X-ray imaging Integrated operations between the two Customs administrations Real-time monitoring of X-ray images at Port Qasim and ATC in Virginia Harmonized automated clearance

11 IC 3 Inspection Cycle: End-to to-end Integrated Solution Impending Arrival (IA) - 12hrs Shipment Clearance e-goods Declaration by Exporter Commodity Weight/Quant ity Importer s Name Seal Number Pass-in Authorizatio n Pakistan Automated Customs Clearance System (PACCS) Terminal Pre-gate (QICT) Shipper s Seal Integrity Pass-in Authorizati on Affix Carrier Seal Arrival Acknowledgement.. IC 3 Block (QICT) Container ID through OCR Date & Time Stamp Check-off Container No Exam Examination Info displayed in IC3 ROOM Radio Portal Monitor X-Ray USCBP Automated Targetting Centre (ATC) Interactive Map Inspection Status Instant Messaging

12 ICD Consignments not examined at port facility Special Customs security seals are fixed on containers Containers transported to ICDs on Customs licensed bended carriers Cargo clearance carried out at ICDs after checking Customs seal Real time tracking during transportation through GSM/GRPS being considered

13 All transit trade to Afghanistan processed under One Custom System No examination carried out at port of entry All containers sealed by Pakistan Customs Container number, truck number, seal number and date of seal fed in computer system Containers de-stuffed at Peshawar under Customs supervision, loaded in Afghan trucks, sealed and transported to Torkhum border crossing under Customs escort Under new transit trade agreement sealed containers will be transported to Afghanistan

14 Strength of System Web based electronic submission of documents Most of consignments cleared without physical inspection Customs clearance time greatly reduced Trade welcomed new system Weaknesses of system Original database inadequate Risk management system not updated with buildup of data Post clearance audit not introduced simultaneously Agreements with other Customs administration for information exchange not in place Implications Unscrupulous traders discovered loopholes for fraudulent activities Government considering introducing more comprehensive community based system as Single Window

15 Exports Ad hoc arrangements with exporters to ensure security of consignments during stuffing and transportation of containers Inadequately controlled transport hazards security lapse Imports to ICDs Transport regulated through licensed bonded carriers Movement of transporters during journey not kept under proper check Occasional pilferage and damage to cargo during transport Transit cargo Transport regulated through licensed bonded carriers Transfer of cargo from containers to trucks at intermediate points provides opportunities for pilferage and smuggling

16 Introduce Customs IT systems adopting WCO standards Adopt step by step approach in implementing risk management systems Ensure simultaneous introduction of post clearance audit Conclude Memoranda of Understanding with traders for introduction of Authorized Economic Operators Conclude cooperation agreements with other Customs administrations Conclude bilateral transit traffic agreements with transiting countries Introduce single window and strive for electronic linkage with trading partners

17 THANK YOU FOR THE ATTENTION