Regional Customs administrations may benefit from affordable WeBOC system
World Customs Organization (WCO) has dedicated 2016 to promoting the digitization of Customs processes under the slogan “Digital Customs: Progressive Engagement.”
The theme provides South Asian nations a huge opportunity to showcase and further promote their use of Information and Communication Technologies (ICT). Off course, India and Pakistan can benefit the most owing to the size of their populations, relative level of development especially in ICT, proximity, the similarity in production structures and levels of technology along with the familiarity of cultures, favorable terms of trade, cheaper patents and lower royalty.
Given the stagnant intra-regional trade currently at 5.0 percent compared to 58 percent in EU, 52 per cent in the NAFTA region, and 26 per cent in the ASEAN zone, Pakistan and other smaller economies may benefit from “progressive engagement” immensely.
For example, Pakistan can save around $2.5 billion to $3 billion or Rs215 billion to Rs260 billion on account of freight charges only.
The manual clearance of cargo known as ‘One Customs’ takes huge time; sometimes up to 32 business processes and signatures of around 20 officers are required to clear one consignment.
Naturally this is unbearable in terms of time, efficiency and effectiveness. Pakistan Customs has recently deployed WeBOC, which has shortened the clearance cycle at stellar pace. Many consignments would be cleared in as little as 12 minutes from the Green Channel depending on profile of traders.
Other agencies like Anti Narcotics Force can access the system in non-intrusive but more effective manner. Traders would not be coming into contact with officials which will bring transparency and reduce unwanted rush in sensitive border area directly contributing in security.
Once Customs clearance systems of all countries are digitized like Pakistan’s WeBOC, illegal practices like routing of consignments through Dubai & Singapore, repacking of goods after omitting identification of origin and re-shipping etc would be eliminated resulting in effective implementation of national import policies.
Pakistan Customs has already achieved an excellent level of automation. Almost 90 percent of import and 80 percent of export cargo is cleared through fully automated WeBOC software. Further it is rapidly integrating other government departments in this platform e.g Electronic Form ‘E’ – a pre-requisite document for exports has been implemented, integrating more than 1500 commercial bank branches across the country and State Bank of Pakistan (SBP). Similarly modules of Certificates of Origin, Cess Collection, import, export and local licensing and manufacturing in Export Oriented Units and Manufacturing Bonds will soon be digitized.
This platform gives an unmatched opportunity to other Customs and Trade Administrations of South Asia to benefit from Pakistan’s home-grown WeBOC system which addresses peculiar problems of South Asian Cultures and Administrations.
These nations can even purchase software and employ well trained human resource and expertise from Pakistan at very affordable rates versus costly European or American Solutions.
Therefore, it is important to engage South Asia progressively by delinking mutual relations from geopolitics and looking at trade and commerce activities through the modern ‘digital eye’.