Pakistan Customs works for two main objectives- trade facilitation and revenue collection. But it gives precedence to trade facilitation because it leads to greater revenue collection. Trade facilitation has almost become a buzzword with it.
But increasing international trade has also led to emergence of a new concept, in addition to trade facilitation, of International Supply Chain Security. The Customs establishments everywhere leave no stone unturned to achieve these two objectives because these can enhance their share in the global trade and can have far-reaching positive implications for their economies. Being a proactive organisation, the Central Board of Revenue has pursued the same objectives and has given practical shape to it by vigorously pursuing the reform agenda.
In the first WTO conference at Singapore, four main issues were supported by Pakistan terming them as beneficial for its economy. These are known as “new issues” or “Singapore issues”. But trade facilitation was conspicuous among these issues. Pakistan Customs has simplified documents which are required at the time of import and export. Significant headway has been made in removing the archaic customs procedures which could otherwise hamper the smooth flow of trade.
Exports may be hurt in the international market because of two main reasons. First, the exported goods may not be not competitive if the same are not quality products and cost-effective. Second, the goods do not reach their destinations in time, largely because of unnecessary hassles in dealing various departments, leading to long delays at ports. That is why the Pakistan Customs, in collaboration with all the stakeholders, i.e. Karachi Port Trust, terminal operators, freight forwarders, and stevedores, etc, has simplified the customs procedures to an extent that the “Dwell Time” has been reduced
Trade facilitation would lose its efficacy if the security of traded goods is not ensured. It is matter of common experience that trade facilitation, without security, involves quite a few hidden/grave risks, and even disasters may occur. At the same time, excessive security measures lead to low efficiency.
The security aspect of international trade has attained tremendous importance, especially in presence of world terrorism, organised crimes, and frauds. So, there is an urgent need to secure the international trade through the international security chain. It is necessary to dilate upon this phenomenon for its better comprehension and to critically appreciate its implications for exports.
This concept implies the use of customs import and export controls, identified by the WCO, to ensure supply chain integrity and security. The volume of the world trade has multiplied, creating an earnest need for institutionalisation of intra customs cooperation on the one hand and Customs business partnership on other hand. This security arrangement envisages “Trilateral Cooperation” among the national Customs of the exporting country and “Authorized Economic Operators” (exporters or importers), to accord the export consignments security status.
Pakistan cannot afford to be left when modern customs establishments are making optimum use of innovative/safer procedures and standards to raise their exports. Therefore, the CBR has signed the Declaration of Principle with the US Customs and Border Protection Department (USCBP), under the Container Security Initiative (CSI), for examination and clearance of the US-bound export goods. The CSI is in place in 40 ports across the world with a plan for inclusion of additional 50 in the near future.
In addition to CSI, Pakistan Customs and the US Customs have negotiated and finalised integrated cargo container, control programme (IC3), which envisages joint screening of US bound containerised cargo from Pakistan via live video link. The programme is part of the US-bounded security plan to avoid any hazardous substances like nuclear, chemical, biological, arms, narcotics etc, to arrive at any US ports. Pakistan’s commodity exports would get preference by the US importers and even by the CSI partner countries. By implementing this programme at Port Muhammad Bin Qasim, Pakistan would have edge over India for having trade security measures in place.
This programme will serve the US government’s indicatives to ensure secured cargo supply chain for the US. At present, containers of Pakistani commercial cargo, bound for the US ports, are being scanned at Hong Kong, Colombo and Salala Port, causing additional financial burden on exporters. The obvious motive behind all such security arrangements is to increase exports to USA which absorbs more than 25 per cent of the Pakistan’s total exports.
Along with cargo safety, what matters most for acceptance/credibility of the exports abroad is compliance to the provisions of the Intellectual Property Rights. As a result of joint efforts of Pakistan Customs, Intellectual Property Rights Organization, (IPO) and the Federal Investigation Agency (FIA), the organised production of illegal optical discs and smuggling of pirated optical discs (CDs & DVDs) have been eliminated. This is widely recognised abroad.
All these steps taken by the Customs reflect its resolve to enhance competitiveness of domestic products in the international market.
