FBR insiders said that around $60 million was billed by Agility for last five to six years services by the PaCCS system. - File Photo

KARACHI, Sept 19: After failing to reach an understanding with Kuwait- based logistic company, Agility over PaCCS software the Federal Board of Revenue on Monday shut down the auto-clearance system at Qasim International Container Terminal (QICT).

However, the FBR has directed the field offices to shift to indigenously developed software BeBOC for auto-clearance of containerised cargo at QICT and subsequently, include other two terminals in the same system.

Official sources told Dawn that a team headed by FBR chairman Salman Siddiq recently visited Dubai and held negotiations with the Agility over terms and conditions as well as charges for the PaCCS software.

Sources said that the Agility, which has the Intellectual Property Rights over the software and is presently operating under PaCCS at country’s three container terminals, demanded hefty amount against its services.

The exact amount demanded by the AgiIity has not been disclosed but the FBR insiders said that around $60 million was billed by the company for last five to six years services by the system.

Nevertheless, the FBR chairman sought two months time from the Agility for making final decision with regard to the PaCCS system.

The software was launched as a pilot project in 2006 at Karachi International Container Terminal (KICT) and subsequently, it was extended to PICT and QICT.

The PaCCS issue had been lingering for the last six years and during this period FBR witnessed many changes at the top slot but none of chairmen took the matter seriously.

Originally, the PaCCS software launched with broader outline but in due course it was developed by customs officials to suit to local conditions.

But many customs officials believe that the system outlived its utility and became predictable, which was causing revenue loss to the government.

There had been rapid increase in clearance of boxes at three terminals but revenue collection failed to keep up with the growth in traffic.

Meanwhile, customs field staff has been directed not to take large quantity of containers for examination, contravention or even filing of FIRs in order to keep the system at zero at the time of shutting it down.

The customs officials said that the homegrown WeBOC system was much better than the alien software; therefore, there would not be any problem in shifting to new system.

The indigenously developed software could be improved and upgraded as per need and growth in volume of cargo, customs officials said.