KARACHI CUSTOMS AGENTS ASSOCIATION

(Serving Customs Agents Community since 1965)

SPECIAL EDITION

Heartiest Congratulations
to
PAKISTAN CUSTOMS
on the auspicious occasion of
International Customs Day
26th January 2021
with the slogan
“Customs bolstering Recovery, renewal and
Resilience for the sustainable supply chain”

Circular # KCAA-002/2020-2021
26th January 2021
Presented by: Managing Committee 2020-2021
2nd Floor, Burhani Terrace, Bohri Road, Opp: Custom House, Karachi. PABX: 92-21-32311989 | 92-21-32313068
Fax: 92-21-32310989 Import Camp Office Ph: 32312101-32315072
Email: headoffice@kcaa.pk | Web: www.kcaa.pk
 Heartiest Congratulations to
PAKISTAN CUSTOMS
on the auspicious occasion of International Customs Day 26th January 2021

Wasiq Hussain Khan Mehmood ul Hasan Awan

President General Secretary

Naseem Askar Farukh Salim Kaisaf Khan Muhammad Afzal Mohammad

Senior Vice President Vice President Marwat Vice President Asghar Abbasi
Vice President Vice President

Rana Nasrullah Saad Ahmed Athar Nadir Khawaja Zeeshan Hasan Shaikh
Khan Qureshi Chandna Iqba Vohra
Vice President Vice President Joint Secretary Information Finance Secretary
Secretary
 Abdul Majeed Abdul Rasheed Asshad Jamal Fahim ul Hasan Faraz Ahmed Tanoli
Noorani

Kamran ur Rehman Majid Ali Soomro Maqbool Hussain Mirza Abdul Hannan Mirza Waqas Baig
Bhatti Baig

Muhammad Azam Muhammad Imran Muhammad Kamran Muhammad Rizwan Muhammad Shahid
Awan Juma

Sajid Hussain Mir Sheikh Waris Murad Zahid Sharif

 Heartiest Congratulations to
PAKISTAN CUSTOMS
on the auspicious occasion of International Customs Day 26th January 2021

AMIR ALTAF MALIK MUHAMMAD RIAZ

Chairman Vice Chairman

SHAIKH MOHAMMAD TARIQ AKHTAR ALI SHERWANI AFTAB NABI KHURSHEED ALAM
Member Advisory Council Member Advisory Council Member Advisory Council Member Advisory Council

DANISH NASEER GULZAR SHAH TARIQ RASHEED KHAN SOHIAL SIDDIQ

Member Advisory Council Member Advisory Council Member Advisory Council Member Advisory Council

GHULAM MUSTAFA ASHRAF AFTAB CH. SAJID ALI MUHAMMAD SAJID ZULFIQAR NAEEM
QURESHI Member Advisory Council Member Advisory Council Member Advisory Council Member Advisory Council
Member Advisory Council
 Message

IMRAN KHAN
Honorable Prime Minister of Republic of Pakistan
Pakistan, after a period of economic instability is finally entering an era of sustainable economic
growth. This shift has been brought about through a major policy change of focusing rapid
industrialization and export-led growth. CPEC and the projects accompanying it, have provided
the country the opportunity for improving connectivity through its seaports and borders, for its
regional trade partners. A well-connected Pakistan shall go a long way in making the country the
most favorable economic corridor in the region. This opportunity to develop and sustain trade
hubs and industrial zones along these routes, by creating a thriving economic environment, would
attract further business and investment in the country and boost
exports, thus, accelerating us forward on the path of sustainable economic growth.

World Customs Organization's slogan for the year 2021, "Customs bolstering Recovery, Renewal
and Resilience for sustainable supply chain" has come at the most opportune time for Pakistan
as it reflects well the country's plan of providing connectivity within the region and to the outside
world. Pakistan Customs, enabled by its footprint across the country and mandated to secure the
economic frontiers by facilitating legitimate trade and combating smuggling, is placed at a strategic
position to lead this effort.

With the onset of COVID-19, the greatest challenge faced by the country was to maintain the
supply chain through optimum utilization of resources for timely provision of goods especially
the medical supplies. Pakistan Customs succeeded in ensuring seamless flow of trade in these
difficult times, when the pandemic spread was at its peak, while adhering to the slogan of WCO.

I congratulate the officers and staff of Pakistan Customs for their contribution in making Pakistan
dynamic and trade friendly country. I hope that Pakistan Customs is celebrating International
Customs Day today, with the resolve to further improve the supply chains and international trades
for greater economic good of the country. I wish them success in their endeavor.

09
 Message

Dr. Abdul Hafeez Sheikh,

Federal Minister for Finance

The foundation of the global trade structure rests on development of a credible and strong supply chain,
which ensures rapid industrial productivity and marketing of goods in shortest span of time. Global
pandemic (COVID-19) has badly disrupted all this putting world trade at an unprecedented risk. Under
the prevalent milieu, World Customs Organization's (WCO) slogan "Customs Bolstering Recovery,
Renewal and Resilience for Sustainable Supply Chain" merits no underestimation. The recently
introduced strategic policy framework by the Government of Pakistan envisages trade promotion and
export-led growth as its mainstream policy and places a major responsibility on Pakistan Customs
administration to complement the targeted export-led growth in the COVID and post-COVID environment.
The WCO has, also, rightly highlighted the Enhanced and Effective Collaborations, Adoption of Advanced
Technology and Restructuring of Supply Chain as the domains, which demand active involvement from
Customs authorities:

In this regard, I am pleased to note that Pakistan Customs is actively working for development of
Pakistan Single Window, a state-of-the-art project, which aims at bringing all border and other relevant
departments together to ensure efficiency in time and cost of supply chain networks.

Restructuring of existing procedures and seamless process flow are inevitable to make the supply
chain more resilient, under the circumstances. It is also worth mentioning that Pakistan Customs has
been exceptional in adapting its clearance process during COVID-19 by making necessary adjustments
in its automated Web Based One Customs (WeBOC) system. Pakistan Customs has invested in many
new programs like Authorized Economic Operators, TIR Carnet and International Transshipment to
re- organize the existing supply chain and make it more adaptive to boost trade and economic recovery.
With the introduction of these programs, trade volume will enhance resulting in improved revenue
collection.

In the end, I once again felicitate Pakistan Customs for their rigorous efforts to bolster economic
recovery through collaboration with all the relevant stakeholders and leveraging advanced technologies
resulting in revenue generation. I also hope that Pakistan Custom would keep up the good work they
are doing and would play their role, in the economic uplift of the country, with similar zeal and vigor.

10
 Message

Dr. Waqar Masood Khan

Special Assistant to the Prime Minister on Revenue

I extend my felicitations to the Customs fraternity on the International Customs Day 26th January, 2021 which
being a signature event, brings together different parties and stakeholders that are responsible for societal
protection and smooth conduction of legitimate economic activities. The slogan for this year's International
Customs Day is "Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain". However,
the World Customs Organization (WCO) has dedicated this year to the untiring efforts of Customs to support
people and businesses in the critical times of COVID-19, by strengthening the global supply chain and without
halting the economic activities.

The role of Pakistan Customs is changing and is responsible for a wide range of duties that span across narcotics
interdiction, protection and collection of government revenue, trade controls and facilitation, intellectual property
rights protection, protection from environmental hazards as well as consumer protection. However, Customs
is successfully mastering the dual role of a regulator and a facilitator for the business environment within the
country and through International trade and by binding a close partnership with counterparts in the law
enforcement domain and business sector.

Pakistan Customs is playing pivotal role in making the country an economic corridor. A vast variety of initiatives
have been taken up to meet best international practices and to cope pace with the globalized modern approaches
towards facilitation and unification of trade. Pakistan Single Window is the most important initiative under
process by Customs, which provides one-stop electronic platform for lodging of trade documents, promoting
cross-border customs co-operation and expediting trade declaration and customs clearance. Other ongoing
projects like ITTMs, TIR carnet, International Transshipment will boost the country's potential to compete in
global first class trade by increasing efficiency and accountability. AEO Pilot Project has also been operational
at Karachi to facilitate trade and reduce undue clearance processes. Meanwhile, to counter the illicit movement
of goods across the country Customs has been made lead agency to combat smuggling and for that purpose
Border Management Initiative and Counter Smuggling Portal has been established for improved border security
and maintaining database to monitor and identify the smuggled goods and actors involved respectively. In order
to ensure renewal of supply chains, Pakistan Customs is putting in best efforts to facilitate the
regional/international trade. In this regard, Pakistan has considerably improved its rate of implementation of
World Trade Organization (WTO)'s Trade Facilitation Agreement (TFA) from 34% in June, 2018 to 79% in
November, 2020.

I firmly believe the above-stated measures shall play a consequential role in aiding our country in making an
excellent comeback from of the pandemic. In the end, I once again congratulate Pakistan Customs on the occasion
of International Customs Day and wish a very fruitful year ahead.

11
 Message

Dr. Kunio Mikuriya

Secretary General World Customs Organizations
Once again, the Customs community comes together, united in celebrating International Customs Day, which officially falls on
26 January of each year. This special day enables WCO Members, the WCO Secretariat and Customs' worldwide partners to dedicate
themselves to taking forward a particular theme. Thus, throughout 2021, under the slogan "Customs bolstering Recovery, Renewal
and Resilience for a sustainable supply chain," the Customs community will be focusing on emerging from the global pandemic
and support people and businesses by strengthening the global supply chain, reinforcing collaboration, harnessing technology
and putting "people" at the centre of the transformation process.

Indeed, as Customs will be moving to reconstruction in the wake of COVID-19, Members will be invited to embrace digital
transformation at the borders, paying particular attention to automation, the use of innovative technologies, and the adoption of
collaborative approaches with all stakeholders along the supply chain.
Customs, being uniquely positioned and mandated at borders, can contribute to a sustainable supply chain in the following ways:

Reinforcing collaboration to drive the Recovery process. The economic impact of the pandemic on companies has been colossal,
with considerable disruption of global supply chains. The herculean task of reconstruction cannot be undertaken in isolation, and
the expertise of all border agencies and stakeholders will be a decisive factor. Customs will be called upon to demonstrate its
leadership during this process, at the national and international levels. The COVID-19 crisis has demonstrated that coordinated
border management is possible, efficient, and can be further institutionalized at international and national levels. The sound
implementation of the SAFE Framework of Standards, including the AEO standards and cooperation with other government
agencies, appears to be a relevant focus in this context. Given the increase in ecommerce observed during the COVID-19 period,
it would be timely for Members to implement the WCO E- Framework of Standards on Cross-Border E-Commerce in order to
address security and facilitation in the context of this emerging supply chain trend, in close collaboration with stakeholders.

Embracing advanced technologies to enable Renewal rather than return to how things were before. The COVID-19 pandemic has
shown the importance of major innovative and technological concepts which the WCO has been promoting for years. These include
all-digital and paperless clearance methods, and the use of technology for implementing effective controls and facilitating, enhancing
and accelerating processes. Irrespective of the pandemic, Customs administrations have been sensitized - through specialized
forums and conferences - about the benefits that can be reaped from the integration of technologies based on the use of big data,
telematics and the Cloud into Customs operations. Building on the lessons learned, Customs administrations should look at the
way goods are cleared at borders from a fresh perspective. Non-intrusive inspection devices, blockchain, artificial intelligence,
sensors and connected objects, and other technological advances offer tangible benefits in terms of collecting, combining, sharing
and analysing data, and these benefits should be maximized.

Putting "people" at the centre of change for a Resilient and sustainable supply chain. In order to address the vulnerability of
Customs to systemic risks such as pandemics, Customs administrations will be called upon to build on the lessons learned and
ensure that no one is left behind as we move towards a deeper transformation. To create greater resilience, "people" should be
at the centre of the recovery model. Citizens around the globe have changed their daily lives drastically to adapt to the new reality.
By the same token, Customs are called upon to rethink and adapt the way they operate, and enhance the preparedness of their
staff through awareness raising and capacity building for the provision of a professional service. At the same time, resilience
cannot be achieved without integrity, diversity and inclusion. A lack of integrity in Customs can distort trade and investment
opportunities, undermine public trust in government administration and ultimately jeopardize the wellbeing of citizens, which
in times of recovery could prove to be a recipe for failure.

The WCO will continue to provide guidance, help to share best practices and information, and deliver capacity building and
technical assistance support to Members for the achievement of the above goals.

As in previous years, I am fully convinced that Customs administrations and the wider Customs community will rise to the occasion,
fully committed to actively promoting their efforts and activities aimed at bolstering "Recovery, Renewal and Resilience for a
sustainable supply chain" that includes sharing relevant practices and activities with others at WCO meetings and in key WCO
publications. Wishing you all a happy International Customs Day!

12
 Message

Muhammad Javed Ghani

Chaiman Federal Board of Revenue

Bilateral and multilateral trade, in the 21st Century, have grown tremendously, posing both challenges as well
as providing opportunities to Customs administrations throughout the world. To tap this potential, Pakistan
Customs under the umbrella of Federal Board of Revenue has embraced information technology, modern
equipment, trade frameworks and various trade facilitation measures as engines of growth and trade development.

As it is looked ahead to 2021 from the perspective of Customs, the theme for this year's International Customs
Day is "Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain" which envisions
a professional, enabling service culture as a building block for modern Customs administrations. This theme
is not only in line with the initiatives that have already been undertaken by the Government of Pakistan but is
what FBR and Pakistan Customs constantly strives to be.

It is because of the concrete initiatives taken by Pakistan Customs that FBR has been able to withstand the
crippling effects of a global COVID-19 pandemic and our services remained operational even during the peak
periods of lockdown observed across the country. The Director of World Economic Forum (WEF) Mr. Klaus
Schwab has called the COVID-19 pandemic as the "Great Reset". It is heartening to announce that Pakistan
Customs, in the reconstruction process after the disruption that the pandemic had caused on global supply
chains owing to the Great Reset, is fully geared to take up the challenge of playing a leadership role at both
national and international levels by integration of major innovative and technological concepts into the Customs
Operations.

With the sole objective of ensuring a climate which encourages facilitation of legitimate trade & travel under
Customs international commitments, various ambitious IT regimes are underway. To mention a few big ones,
the Pakistan Single Window (PSW), Integrated Transit Trade Management System (ITTMS), Authorised Economic
Operator (AEO) programme and the multimodal Transports Internationaux Routiers (TIR) regime are under
various stages of development and implementation. Under the PSW initiative, 44 different organizations will
be connected online, reducing cost of doing business, whereas the ITTMS envisages reduced processing times
at border crossing points of Wagah, Torkham and Chaman. Under the WCO's SAFE Framework of Standards, the
Authorized Economic Operators programme aims at recognizing trusted importers and exporters and will
reduce the cost of doing business substantially. With these initiatives, Pakistan Customs has joined the comity
of vibrant customs administrations and is imparting benefit to stakeholders along the trade supply chain. The
TIR regime will provide for a barrier free access to Pakistan's economy and market so that its competitive trade
goods will be able to flow with the minimum transport costs.

Pakistan Customs, under Federal Board of Revenue, renews its commitment towards continuous improvements
towards bolstering Recovery, Renewal and Resilience for a sustainable supply chain.

13
 Message

Syed Muhammad Tariq Huda

Member Customs (Operation)
Federal Board of Revenue
Today, I stand proud to be the head of Pakistan Customs Administration on this auspicious International
Customs Day. As the head of the critically important organization, I am cognizant of the heavy
responsibility that the country in particular and international community in general, has laid in the
office which I occupy to come up to the challenges facing us.

I am very pleased to inform that Pakistan Customs has been up to the task in performing its traditional
role of collecting revenue whereby 44% of total tax revenue has been contributed by Customs. Equally
if not more has been our administrative success in combating smuggling and illicit trade: We have
already scaled historic peak of more than 30 billion of seizures of contraband and illicit goods.
Partnering with the border agencies and Provincial Governments, we have been able to clean our
markets from smuggled goods thereby spurring industrial growth especially textile, tyres and other
industrial goods.

We are proud to have partnered with Pakistan Telecommunication Authority in introducing the DIRBS
system whereby the smuggling of mobile phones has been eliminated: Pakistan has now entered into
mobile manufacturing catering to a small portion of local demand and very soon we will be witnessing
export of mobile phones from Pakistan.

Though much has been achieved, it is high time now that Pakistan Customs changes its direction from
revenue generation agency to a pro-growth and pro-development organization supporting Pakistani
industry and export through great border controls, through Trade Facilitation procedures and
introduction of ICT.

I am confident that my organization will escalate its achievements even more and embrace this slogan
"Integrity-Efficiency-Courtesy" as the guiding principle for the year.

I wish my administration a great International Customs Day.

14
 Message

Syed Hamid Ali

Member Custom (Policy) FBR
I extend my heartfelt felicitations to the Customs fraternity on the International Customs Day being celebrated on 26th January,
2021. The slogan for this year's International Customs Day is "Customs bolstering Recovery, Renewal and Resilience for a sustainable
supply chain". In wake of COVID-19, the World Customs Organization (WCO) has dedicated this year to the united efforts of
Customs to support people and businesses by strengthening the global supply chain. Thus, throughout 2021, Pakistan Customs
will be focusing on emerging from the global pandemic and support people and businesses by strengthening the global supply
chain, reinforcing collaboration, harnessing technology and putting "people" at the centre of the transformation process. It will
be moving to reconstruction in the wake of COVID-19 by embracing digital transformation by further paying particular attention
to automation, the use of innovative technologies, and the adoption of collaborative approaches with all stakeholders along the
supply chain.

The economic impact of COVID-19 on the world has been colossal with considerable disruption of global supply chains. Pakistan
Customs played its effective role in trade recovery during pandemic period by ensuring 24/7 clearance of Cargo at Ports/Airports
and land borders stations, while ensuring expeditious clearance of medicines, food items, and equipment pertaining to treatment
of Corona Virus. Dedicated email and helpline was established for single contact facility to accommodate all trade related
queries/grievances for mitigation by the Customs authorities. In order to ensure smooth flow of trade, active communication and
cooperation was established with Customs-to-Customs, Customs-to-Business and Customs-to-other government agencies.

Pakistan Customs is cognizant of the fact that in the post COVID scenario, world has to embrace advanced technologies including
all-digital and paperless clearance methods, and the use of technology for implementing effective controls and facilitating, enhancing
and accelerating processes. Building on the lessons learned, Pakistan Customs has taken a fresh perspective on how goods are
being cleared. After ratification of the Trade Facilitation Agreement (TFA), it has chalked out a comprehensive plan for its
implementation. Consistent with the 'SAFE Framework' developed by the WCO, the Pakistan Customs is working on developing
a plan for implementation of an AEO Program connecting all the stakeholders in international cargo supply chain ranging from
importers, exports, clearing agents, port operators to transporters and freight forwarders across borders. To support Pakistan's
effort to balance trade facilitation and security, the WCO has provided assistance on Risk Management including setting up National
Targeting Center, and ICT and AEO. Moreover, implementation of other Categories of commitments under TFA such as Advance
Rulings, Average Release Times studies, Trade related Information through Internet, Expedited Shipments, Border Agency
Cooperation etc are all aimed to increase trade facilitation and improve index of ease of doing business in Pakistan. Pakistan
Customs has also embarked upon a project to establish state-of-the-art border complexes at its land borders with Afghanistan and
India under the Integrated Transit Trade Management System (ITTMS).

National Single Window is a platform that allows parties involved in trade and transport to lodge standardized information and
documents using a single-entry point to fulfill all import, export and transit related regulatory requirements; it is a significant step
towards digital transformation and trade facilitation of Pakistan's cross border trade. Through World Bank's sponsored project,
Pakistan Raises Revenue, Automated Entry Exit Control System (AEES) will be introduced for improved cargo control and
surveillance at crossing points.

Based upon the lessons learnt from pandemic challenge, Pakistan Customs has adopted a new way of preparedness of their staff
through awareness raising and capacity building for the provision of a professional service delivery through integrity. Pakistan
Customs resolves that integrity in its operations will take a centre stage aimed at actively promoting its efforts and activities for
bolstering "Recovery, Renewal and Resilience for a sustainable supply chain".
Wishing you all a happy International Customs Day!

15
 Message

Dr. Saifuddin Junejo

Chief Collector of Customs South
Enforcement & Compliance
On the International Customs Day 2021, I would like to felicitate the entire Customs' fraternity on behalf of
Pakistan Customs. This year, the World Customs Organization (WCO) is celebrating this day under the
theme"Customs, bolstering Recovery, Renewal, and Resilience for a Sustainable Supply Chain.In today's world,
ensuring security, sustainability and integrity of international supply chains has become one of the top most
priorities of all states especially in the wake of disruptions caused in supply chains due to coronavirus pandemic.
The prime responsibility for this task falls on the shoulders of Customs administrations around the world. As
the last year witnessed severe threats of disruption to international supply chains in Pakistan, Pakistan Customs
had an uphill task on its plate. It is heartening to note that Pakistan Customs not only achieved its revenue
targets assigned by the Federal Government despite a fall in imports, our sea ports, airports, dry ports and land
border stations were kept up and running in a smooth manner with spirit of trade facilitation, integrity and
devotion that is the hallmark of Pakistan Customs. Pakistan Customs has not only effectively handled the crises
in the wake of Covid-19 pandemic; it has also contributed a great deal in ensuring quick economic recovery and
uninterrupted flow of supply chains for trade and industry. I wish Pakistan Customs best of luck in its future
endeavors.

16
 Message

Gul Rehman
Cheif Collector Balochistan

Customs is one of the leading national agencies of the country which ensures secure national borders, prospering
businesses and increasing revenues. This is done by strict and vigilant enforcement measures, implementation
of laws and regulations protecting local industry, facilitating indigenous trade and expanding its domestic reach
by erstwhile deletion program etc. This year's theme perfectly fits the role of customs. The theme is
"Customs Bolstering Recovery Renewal and Resilience for a sustainable supply chain"
It is imperative to stress on our role as a facilitator more than a revenue generator. We need to go extra distance
in order to adapt to the recent testing times.

Greater the co-operation and understanding between all stakeholders, greater will be recovery process back
from global pandemic. Implementation of WCO e-frame work standards on e-Commerce can greatly address
security concerns and facilitate trade amongst comity of nations.

The advanced technologies need to be adapted for Renewal rather than adopting previous out dated procedures.
Recent Pandemic has drastically changed the ways of doing business in more smarter ways as were being
promoted by World Customs Organization (WCO) for years. Non intrusive examinations reliance on advanced
technologies are the future of Customs clearance.

The Customs has to rethink and adapt to new techniques in changing times. The capacity building of the staff
is to be increased with changing trends in world trade. It is reiterated here that resilience can't be achieved
without integrity diversity and inclusion. Customs has to rise to meet WCO slogan 2021.

17
 Message

Faiz Ahmed
Chief Collector Enforcement, North

The COVID-19 pandemic dominated the economy of the world in the year 2020. It took lives of millions of
people around the globe and changed the lifestyles of billions into a new normal.The pandemic not only posed
unprecedented challenge to public health and safety but also to the international supply chain.

Customs Administrations around the world celebrate the World Customs Day under the auspices of World
Customs Organization (WCO) each year on 26th January. This year the WCO decided to celebrate a theme
interlinked with the past chain of events related to the world economy and the resolve of Customs to not only
overcome the challenges but to make the Administrations resilient to any further shocks through promotion
of sustainability. This yearthe Administrations will celebrate the World Customs Day under the slogan "Customs
bolstering Recovery, Renewal and Resilience for a sustainable supply chain".

Pakistan Customs during the year 2020, took several measures to facilitate the cross-border movement of relief
goods and essential supplies (like coronavirus detection kits, surgical masks, multi-mode ventilators with air
compressors, face shields, and other medical supplies). Exemption of custom duty, regulatory duty and additional
custom duty on medical and testing equipment was also provided on the goods related to health and safety of
the citizens of Pakistan. In order to mitigate the impact of supply chain relationship to global shock, Pakistan
Customs assured 24/7 clearance of cargo at ports, airports and all land border stations for protecting the social
and economic interest of people. Moreover, a large number of anti-smuggling operations were carried out
during the pandemic.

It is important to highlight here the heroic efforts of courageous and inspiring officers during these trying
times. We salute our martyrs and frontline workers including Shaheed Zahid Khokhar on this Day as they make
us proud during these trying times.

I expect Pakistan Customs to continue to strive for greater professionalism in line with international best
practices, to enable them to take intelligent enforcement decisions on the basis of information sharing, targeted
data analysis and greater engagement with stakeholders to ensure sustainability of global supply chain.

18
 Message

Muhammad Saqif Saeed

Collector of Customs
MCC Enforcement & Compliance Karachi

World Customs Organization has dedicated the International Customs Day for year 2021 to the theme
"Customs bolstering Recovery, Renewal and Resilience for a Sustainable Supply Chain". The slogan
signifies the unique role of Customs Administrations around the world in getting the world economy
on the road to sustained and resilient recovery. During the current pandemic, not only Pakistan but
the entire world experienced severe shocks to the economy with special ramifications for the supply
chain of essential services. I am glad to observe that Pakistan kept its key ports open and Pakistan
Customs worked 24 x 7 in order to keep the wheels of the economic engine up and running without
compromising on the preventive measures for the coronavirus pandemic. I hope that 2021 brings a
year of high spirits and look forward to working with a sense of devotion and spirit of duty.

At the outset of 2021, Pakistan has begun to come out of the coronavirus pandemic woods as one of
the very few countries who have pulled off quite an appropriate response to the said pandemic. In
this, Pakistan Customs' role has been very important, as it ensured an uninterrupted flow of international
supply chain while ensuring strict adherence to preventive measures. We guaranteed unabated
clearance of good at seaports, airports, dry-ports and at land border stations throughout the year.
Moreover, revenue targets assigned to Pakistan Customs by the Federal Government were also achieved
despite decline in imports. Pakistan Customs, enabled increase in exports through implementing
Federal Government's policy of trade facilitation. I hope the next year comes out to be a continued
episode of improvisation in service to the nation and preservation of its indomitable spirit.

19
 Message

Dr. Zulfikar Ali Chaudhry

Director General
Directorate of Valuation Karachi
I would like to felicitate the Customs community around the world on the International Customs Day
2021.World Customs Organization has chosen the slogan "Customs bolstering Recovery, Renewal, and
Resilience for a sustainable supply chain" for celebrating ICD 2021. The theme for this year provides
an insight into the deep connection between the role played by Customs and its impact on maintaining
essential supply chains around the world. Besides that,Customs is also instrumental in facilitating
trade and movement of goods across borders. Therefore, customs has a major role to play in the post-
Covid world. The Covid-19 pandemic has put economies under the stress of recession due to the wide-
spread lockdowns imposed around the world. It is heartening to see, however, that the Pakistani people
and economy have shown extraordinary resilience against the negative impacts of thepandemic.
Likewise,Pakistan Customs has also played a significant role in this national effort by towards economic
recovery. Pakistan Customs can take pride in the factthat during the first wave ofCovid-19 and ensuring
complete lockdowns in the country, Customs operations continued unhindered and extraordinary
trade facilitation measures weretaken to ensure minimum loss tobusinesses. This was possible only
due to exceptional dedication to duty shown by the Customs personnel. Due to these remarkable
efforts, Pakistan has been able to improve its ranking on the Trading Across Border Index from 142nd
to 111th and has also improved its ranking from 136th to 108th in the World Bank's Ease of Doing
Business Index. Although Covid-19 control measures can cause major disruptions to global supply
chains and transportation and customs clearance systems, I have no doubtthat Pakistan Customs will
continue to work dedicatedly in these difficult times;thereby guaranteeing supply capacity during the
crisis and playing its pivotal role in control, facilitation and regulation of international trade. This will
help in mitigating social and economic difficulties during and after pandemic and causingexpeditious
economic growth.

20
 Message

Ms. Zeba Hai Azhar

Director General
Training & Research (Customs)
Pakistan Customs celebrates its resilience and commitment on this year's International Customs Day.
The Customs fraternity around the world played its part to provide essential services while combating
the global pandemic of Covid-19. A shift in work patterns was observed by Pakistan Customs to stay
safe while making sure that provision of services is not compromised. It is these challenging times
that make us realize the importance of bringing frequent reforms and the need for pursuance of
continuous automation. The WCO's theme for this year's theme of "Customs bolstering Recovery,
Renewal and Resilience for a sustainable supply chain" paves way for a new era where automation
shall be the heart of the change process. A collaborated effort to connect all stakeholders is emerging
and underway in the form of National Single Window (NSW) which is being led by Pakistan Customs.
With much enthusiasm and hope, Pakistan Customs continues to serve and combat the challenges
faced in the wake of global pandemic of COVID-19 by keeping its people first and foremost.

21
 Message

Ms. Rabab Sikandar

Director General
Directorate General of IPR Enforcement Pakistan Customs
Together with the International Community, the Pakistan Customs is celebrating the International Customs
Day on 26 January 2021. As this year's theme suggests, the ever expanding role of Customs now includes
recovery, renewal and resilience for a sustainable supply chain. We recognize this critical role of facilitating
free flow oflegitimate imports and keeping a check on influx of counterfeit products to safeguard the supply
chain.

Due to high tariff rates, especially on all luxury items, like perfumes and toiletries, the department has witnessed
a sudden trend towards import of hazardous counterfeit products.Therefore a variety of counterfeit goods have
been detected nationwide during 2020. Most of the counterfeit items include empty bottles, edibles, toiletries,
perfumes, watches, insecticides, auto parts labels and makeup products. Some of these fast moving consumer
goods pose a serious threat to health and safety of consumers. A major achievement was the seizure of thousands
of counterfeit watches, whose originals have an approximate market value of US $ 23 million. Due to these
landmark cases a special letter and Certificate of Appreciation from the President of the Swiss Watch Federation
was sent to Customs IPR.

The onslaught of Covid 19, disrupted the entire supply chain, and posed new threats, bringing life to a complete
halt,destabilizing the biggest economies, thus the need of the hour is damage control. This calls for a totally new
approach and even stronger zest, zeal and passion to revive.

The Directorate General of IPRE has striven hard to fulfill the vision and mission of World Intellectual Rights
Organization (WIPO); by implementing key provisions of the Intellectual Property Organization of Pakistan
(IPO-Pakistan) Act of 2012 and making huge seizures of counterfeit products. It was because of these efforts
that theOffice of the US Trade Representative moved Pakistan from the Priority Watch List to the Watch List
in 2017.

Quite lately a Joint Customs Operation (JCO) "HYGIEA" was organized by the European Anti Fraud Office (OLAF)
in association with the administration of Asia Europe meeting (ASEM). The JCO focused on interdiction of
counterfeit Fast Moving Consumer Goods (FMCGs). FBR nominated the Directorate General of IPR (Enforcement),
Islamabad to serve as national contact point for this operation. A final report on JCO HYGIEA formulated by
OLAF revealed that performance of Pakistan Customs was at the top out of 38 participating countries.This
outstanding performance of IPR (Enforcement) was acknowledged and highly appreciated by the OLAF,
EUROPOL, ASEM and all participating member states of the JCO HYGIEA bringing a good name for FBR and
Pakistan Customs.

We are hopeful that Pakistan Customs will stand out in IPR Enforcement at borders and continue to curb the
import of counterfeit goods. The basis for this optimism is our performance, continuous engagement with
national and foreign stakeholders, and dedication to the cause of ensuring health and safety for the consumers.

22
 Message

Mr. Wajid Ali

Director General
Directorate Reforms & Automation Karachi
This year the International Customs Day on 267.01.2021 is dedicated to the contribution of Customs towards
bolstering recovery, renewal and resilience for a sustainable supply chain. This year, the ICD comes at a
challenging time, where the world is combatting the second wave of a deadly covid-19 pandemic. This slogan
enhances the responsibility of customs as a global fraternity during these testing times when the whole world
activities came to a stand still.

Customs being an essential service has successfully ensured service delivery during the covid-19 pandemic
through online collection of leviable duties, paperless clearances, promoting and facilitating legitimate imports
and exports and ensuring uninterrupted cross-border movement of goods while safeguarding the safety and
health of its officers, officials and all the stake holders.

This year's slogan is a welcome recognition of Customs' contribution towards maintenance of a sustainable
supply chain during covid-19 pandemic performing the task of protecting the economic borders of the country,
for facilitation of legitimate trade and safeguarding the economic interests of its industrialists, investors, the
common man and all stake holders.

The relentless efforts by the Directorate General of Reforms and Automation, Karachi in simplifying and
automating customs processing in WeBOC has contributed a great deal in improving Pakistan's rankings in
Trading Across Borders Index from 142nd to 111th and similarly in the World Bank's Ease of Doing Business
Index from 136th to 108th. We begin 2021 with a resolve to further improve Customs' business processes
through automation while ensuring transparency and simplification.

23
 Message

Mr. Ahmed Rauf

Director General
Input Output Coefficient Organization (IOCO)

The occasion of International Customs Day is celebrated all over the world by the Customs fraternity on 26th
January. I extend my warm felicitations to all officers and officials of Pakistan Customs on this special day.
The World Customs Organization has chosen the theme of "Customs bolstering Recovery, Renewal and Resilience
for a sustainable supply chain" for this year aiming at dedicated and united efforts of Customs to emerge from
the coronavirus crisis.

I am pleased to note that this year finds Pakistan Customs better prepared than ever to face the challenges amid
a global pandemic. The effective use of Information and Communication Technologyenabled Pakistan Customs
to support people and businesses in these difficult times.In order to strengthen the global supply chain, the
officers and officials of Pakistan Customs worked diligently to reinforce collaboration among people, businesses,
and other government authorities. Part of the efforts for facilitating global trade included rolling out the
Authorized Economic Operator (AEO) program.

In the end, I hope that the department will continue its resolve towards achieving a sustainable society and
expect them to strive further for aligning themselves with the International best practices.

24
 Message

WASIQ HUSSIAN KHAN

(President 2010-2021)
Karachi Customs Agents Association
Karachi Customs Agents Association (KCAA) wishes the Customs community worldwide a cheerful International
Customs Day.

International Customs Day, a day celebrated worldwide by the Custom Community to commemorate the first
official conference held on 26th January, 1953 of the Customs Co-operation Council, officially known as the
World Customs Organization. This day is celebrated worldwide to honor the valuable role played by Customs
Administrations throughout the world in the protection of National borders from contraband as well as facilitation
of legitimate trade. Each year, the Customs Community sets a theme to gather information and re-affirm World
Customs Organization's mission of enhancing effectiveness and efficiency.The information gathered is used
to provide people with knowledge of business safety and security so as to enable them to work towards a better
future.

To mark the significance of the challenges faced by the Custom Community due to the Pandemic, the World
Customs Organization has dedicated the theme of 2021 as "Customs bolstering Recovery, Renewal and
Resilience for a sustainable supply chain". The said theme highlights the united efforts of the Custom
Community in supporting people and businesses in these difficult times by strengthening the global supply
chain, reinforcing collaboration and harnessing technology.

During this pandemic, Covid-19 Customs demonstrated the relevance and critical role that it can play in facilitating
trade and travel, simplifying, standardizing and harmonizing border procedures, and securing the borders. It
is indeed proudly that I say that Pakistan Customs in this time of need ensured continuous operation of the
supply chain guaranteeing that all goods including but not limited to food items, medicines, etc. cross borders
without any delay. At a time when all departments of the country were not fully operational and the country
was fighting its battle with the pandemic, Pakistan Customs fulfilled its role well by ensuring smooth delivery
of goods till its end consumer, facilitation of trade and strengthening the global supply chain.

It is indeed encouraging that Pakistan Customs with the help of State Bank of Pakistan has already made
significant headway towards digital transformation by ensuring that payment of Custom duties and taxes of
any amountis also be acceptable through e-payment.With the launch of this system of e-payment across Pakistan,
not only cost and time shall be saved but it shall also ensure seamless movement of goods across borders.

Since Custom Administrations around the world interact with global supply chains therefore, the best practices
need to be adopted to ensure smooth national and international transactions. The pandemic has further
reminded us that the path of modernization and trade facilitation is necessary to ensure a safe business
environment. In today's world, the international trade scenario has changed drastically, demanding not only
dialogue between international jurisdictions but also sustainable partnerships with the business community.We
all appreciate that Customs Administrators play a vital role in smooth flow of trade fighting on the front line to
ensure trade is safeguarded against all economic terrorism.

The Karachi Customs Agents Association is especially grateful to Pakistan Customs for ensuring to fulfill its role
even in these difficult times. I once again wish to convey my best wishes to the Pakistan Customs on the
International Customs Day.

25
 Message

Mehmood ul Hassan Awan

General Secretary (2020-2021)
Karachi Customs Agents Association
I extend my warm felicitations to officials of the Pakistan Customs. The World Customs organization is
celebrating its 69th anniversary this year and we are proud that Pakistan Custom is playing a key role in
development of this progressive country through efficient targeted controls and the facilitation of lawful
trade. The World Customs Organization (WCO), has announced that 2021 will be devoted to the united
efforts of the global Customs community to take on a leadership role, use innovative technologies, and
collaborate with its stakeholders in bracing for the future, with the slogan "Customs bolstering Recovery,
Renewal and Resilience for a sustainable supply chain."

In the beginning of year 2020 Novel Coronavirus COVID-19 became a pandemic and escalated throughout
the world, due to which our beloved country Pakistan is facing serious challenges. The COVID-19 cases
rampantly increased in Pakistan and the Government closely monitored the situation. Multiple provinces
opted to go into a state of lockdown including the City of Karachi, this crucial decision aimed to safeguard
the best interest of people of Pakistan by curtailing further spread of the virus.

During the reconstruction process after the disruption the pandemic had caused on the global supply
chains, Customs will be called upon to play a leadership role, at national and international levels. The
COVID-19 crisis has proven that coordinated border management is possible, efficient, and can be further
institutionalized at international and national levels.

The COVID-19 pandemic has also shown the importance of the integration of major innovative and
technological concepts into Customs operations. These include all-digital and paperless clearance methods,
and the use of technology for implementing effective controls and facilitating, enhancing and accelerating
the processes. Inspections can be facilitated by using non-intrusive devices. Other technological advances
such as block chain or artificial intelligence can also offer tangible benefits in terms of collecting, combining,
sharing and analyzing data, and these benefits should be maximized.

In order to address the vulnerability of Customs to systemic risks such as pandemics, Customs administrations
will be called upon to build on the lessons learned. To create greater resilience, "people" should be at the
centre of the recovery model. Customs will have to rethink the way they operate, and enhance the
preparedness of their staff through awareness raising and capacity building for the provision of a professional
service, with Integrity remaining high on their agenda.

I feel proud to state that in wake of the COVID-19 pandemic, we as Custom Agents are the bridge between
the industry, trade and customs and we are responsibly working day and night to facilitate the trade and
to support the country's economy by making on time customs clearance of consignments.

This is a great pleasure that Al-Mighty Allah give us this opportunity to represent the Karachi Customs
Agents Association which is one of the largest and most proactive Association in Pakistan having more
than 3000 members who are playing a vital role for the collection of budget targets fixed by Federal
Government for FBR time to time. I on behalf of Managing Committee of Karachi Customs Agents Association
pay our gratitude and well wishes to Pakistan Custom & World Custom Organization on World Customs
Day.
26
 WORLD CUSTOMS DAY 2021
Faiz Ahmad, Chief Collector of Customs Enforcement Central
Customs bolstering Recovery, Renewal and Resilience for a
Sustainable Supply Chain
The COVID-19 pandemic dominated the economy of the world in the year 2020. It took lives of millions of people around
the globe and changed the lifestyles of billions into a new normal. Complete shutdown of every aspect of life was seen as
the only solution to contain the spread of this previously unknown virus. The pandemic not only posed unprecedented
challenge to public health and safety but also to the international supply chain. Furthermore, international trade saw an
unparalleled decline around the globe. The COVID-19 pandemic disrupted supply chains worldwide and revealed vulnerabilities
on a scale never before experienced. From shortages of personal protective equipment (PPE) to delays in obtaining parts
and materials, we saw firsthand the fragility of global trade and supply chain.

Around 190 Customs Administrations celebrate the World Customs Day under the leadership of World Customs Organization
(WCO) each year on 26th January. This year the WCO has decided to celebrate a theme well interlinked with the past chain
of events related to the world economy and the resolve of Customs to not only overcome the challenges but to make the
Customs Administrations resilient to any further shocks through promotion of resilience and sustainability. Around the
globe, the Administrations will celebrate the World Customs Day under the slogan "Customs bolstering Recovery, Renewal
and Resilience for a sustainable supply chain".

This year's WCO theme mainly emphasizes on digitization of supply chain processes, data sharing across the entire supply
chain, strengthening & collaboration of Customs Administrations with international communities so that the economies
around the world are capable of weathering future storms. Throughout 2021, the custom community will be focusing on
contribution towards restructuring of global supply chain and strengthening operational resilience. By making supply chain
more resilient, we will be better positioned to recover from current pandemic and be ready to immediately respond to
future disasters. Since the coronavirus crisis has revealed fragility of the supply chain, it has led to the development of
theme focused at emerging from this contagious crisis by strengthening global supply chain.

While there is definitely much to be achieved on the trade facilitation front, I am pleased, to share that during the year 2020,
Customs Administrations were far more prepared than many other Governmental Organizations to cope with the pandemic
due to automation and use of information and communication technology (ICT). The use of advanced software's and
Artificial Intelligence, by many countries for clearance of goods, helped in reduction of face to face contact and paper
documentation. Many countries, for example, use the UNCAD Automated System for Customs Data (ASYCUDA) to electronically
submit and exchange data/documentation, and computerized procedures to expedite the clearance of imports, exports,
transits and other trade transactions, thereby reducing to a great extent the need for face-to-face interaction. Back home,
Pakistan Customs has achieved a reasonably effective level of automation in the form of WeBOC-Glo, a web-based computerized
clearance system, providing end to end automated customs clearance of import and export of goods, thereby reducing
customs processing time (under 04 hours) while maintaining transparency and integrity. WeBoc allows all routine custom
processes to be performed online by customs without involvement of trader or agent along with computerized loading and
gate out events. WeBOC has reduced the cost of doing business enabling increase in Customs Efficiency and efficient
deployment of resources.

Supply chain visibility initiatives will allow all the stakeholders in the supply chain to share data while ensuring privacy
and security. The COVID-19 pandemic has accelerated the adoption of digital technologies and WCO proposes to use
TradeTech (shifting from analogue to digital process & to achieve greater connectivity and collaboration in trade process).
Since, COVID-19 pandemic has come to question the very fabric of our global marketplace, in an unprecedented way,
replacing arcane custom processes by adopting digital technologies, enhancing international supply chain security as well

27
as transparency and working on trade facilitation agenda will help to achieve WCO to accomplish objectives at international
level.

The WCO Customs Environmental Scan 2020 helps the Administrations understand the political, economic, social, technological
and legal (PESTLE) developments as well as the impact that these developments could have on the way Customs operates.
Environmental Scan 2020 focused on the impacts of pandemic and the response of custom in dealing with it by providing
countries the requisite tools and information so that the flow of goods and other trade related activities could be carried
out without hindrance. The environmental scan 2020 is important as it makes us aware of the global trends and give food
for thought for developing new policies and altering existing ones for good. During the year 2020 WCO helped the
Administrations by providing guidance on sensitive issues related to international trade WCO played a very crucial role in
mitigating the deep impacts of crisis by providing guidelines and valuable assistance to customs administrations around
the world in time. The annual WCO PICARD Conference (23rd-26th Nov, 2020) was held virtually and was attended by a
huge number of participants. The conference was dominated by debate on COVID and response of Custom Administrations
while dealing with the crisis. After three days of intense discussion, WCO concluded by guiding members to place more
focus on digitization and utilization of WCO tools especially AEO (authorized economic operator) and single window for
facilitating the trade. Moreover, WCO has developed various prominent tools and instruments for enhancing supply chain
security such as SAFE framework of standards including risk management using advance electronic information and custom
administrations around the world played a vital role in strengthening supply chain security by implementing best practices
in custom operation and policies. WCO HS Classification List for COVID-19 Medical Supplies accelerated the cross-border
movement of goods by systematizing codes of commodity nomenclatures of foreign economic activity. The COVID-19
pandemic has reiterated the importance of both WCO Revised Kyoto Convention (RKC) and World Trade Organization
(WTO) Trade Facilitation Agreement (TFA), including major concepts supported by these instruments: an all-digital clearance
process and efficient risk management.

Pakistan Customs during the year 2020, acted resiliently in facilitating all stakeholders. Several measures were taken to
facilitate the cross border movement of relief goods and essential supplies (like coronavirus detection kits, surgical masks,
multi-mode ventilators with air compressors, face shields, and other medical supplies). Exemption of custom duty, regulatory
duty and additional custom duty on medical and testing equipment was also provided. Sales tax was also exempted on
medical and testing equipment related to the health and safety of the citizens of Pakistan.

In order to mitigate the impact of supply chain relationship to global shock, Pakistan Customs assured 24/7 clearance of
cargo at ports, airports and all land border stations for protecting the social and economic interest of people. Moreover, a
large number of anti-smuggling operations were carried out during the pandemic.

It is important to highlight here the heroic efforts of courageous and inspiring officers during these trying times. Pakistan
Customs lost many dedicated and meticulous officers/officials, while fighting the COVID and performing official duties.
Shaheed Zahid Khokhar did not have a pre-existing medical condition but was tested positive for COVID-19 and could not
win the battle against this deadly virus. We salute our martyrs and frontline workers on the World Customs Day as they
make us proud during these trying times.

We are far from being able to assess the actual implications of COVID-19, yet there seems to be consensus about the need
for transformative measures. One thing, however, has become very clear; the continued importance of global trade and of
initiatives supporting the smooth flow of goods across borders, especially essential goods to areas where they are most
needed. Pakistan Customs will built on its experience and closely coordinate with international as well as national trade
community. One thing is for sure, that global crisis call for global answers. Pakistan Customs will provide full support to
WCO and other trade bodies in order to make the movement of passengers, goods and transport as smooth and swift as
possible for solidarity and coordination are crucial, within and among countries; no one is safe unless all of us are safe.

In the end I would like to sincerely congratulate the officers and officials of Pakistan Customs on this auspicious occasion,
for their dedicated role and services during these trying times. I expect them to continue to strive for greater professionalism
in line with international best practices, to enable them to take intelligent enforcement decisions on the basis of information
sharing, targeted data analysis and greater engagement with stakeholders to ensure sustainability of global supply chain.

28
 GWADAR PORT & PAKISTAN CUSTOMS

By: Dr. Tahir Qureshi, Collector, MCC Gwadar

INTRODUCTION & BACKGROUND

Modern concept of development is that the economic interdependence among developed and under developed
nations increases integration, trade promotion, and many related activities such as investment flow, transfer
of technology, building of new economic infrastructure, new job opportunities and industrial development takes
place. The development of Gwadar Port, flagship project of multi-billion dollars project namely China Pakistan
Economic Corridor (CPEC), is the classic example of this concept. The geographical proximity and the opportunity
to develop the least developed parts of China and Pakistan allow them to foster economic interdependence for
mutual economic benefits with the development of sustainable supply chain from Indian ocean to landlocked
western China and vice versa. This development will not only benefit the least developed areas of two countries
but also benefit the whole region especially the landlocked Central Asian Republics (CARs) and Afghanistan.
Historically, Gwadar was a small fishing town with little else to offer to general public. Situated on the mouth
of the Gulf of Oman, Gwadar remained part of the Omani Sultanate until September 1958. The potential of
Gwadar and surrounding areas could not be realized in the past due to lack of knowledge about the benefits of
the deep seaport, political will and more importantly lack of resources. Apart from various attempts to develop
Gwadar as a port, the serious effort was made in 2001 when Pakistan engaged Chinese firm for the first time
in development of this Port. Chinese firm completed phase-I of the port by December 2005. In 2013, Pakistan
engaged another Chinese firm again and with the agreement of all parties, the government ended its contract
with the PSA and handed over control of the port to the China Overseas Port Holding Company Ltd (COPHCL)
on lease for 40 years. Currently, COPHCL is managing the operations of port through its subsidiary company
Gwadar International Terminal Ltd (GITL) and development and management of free zone areas through
another subsidiary Gwadar Free Zone Company (GFZ). The terminal has quay line of 602 meters with three
(03) commercial berths and one (01) service berth. All the required equipment of international standards to
handle all types of cargo is available at the port. There is an independent terminal, Al-Qasim Terminal, constructed
to handle LPG cargo.

POTENTIAL BENEFITS OF GWADAR PORT

There are a number of advantages of Gwadar port including strategic, geographic and economic advantages.
It provides a direct and shortest route to China, Afghanistan, and Central Asia. Gwadar port has benefits not
only for Pakistan but for the region at large. Gwadar port has largely developed a trade route for China's landlocked
western region. This route will allow its goods and oil transport through ships to the Persian Gulf to circumvent
the 'choke point' at the Straits of Malacca, saving a long and expensive journey around India and Southeast Asia
before reaching the eastern coast of China. Gwadar has the potential to act as a transhipment hub for Africa,
the Middle East and open up access to these areas for landlocked regions in the Central Asian Republics (CARs)
and East Asia. With the development of Gwadar port, all trade to and from CARs will adopt the shortest available
route via Gwadar. This port has a huge potential to handle the transit trade to Afghanistan for which the most
cost-effective transit route is through Pakistan.

29
PAKISTAN CUSTOMS - MILESTONES FOR OPERATIONALIZATION OF GWADAR PORT

The presence of Pakistan Customs is there in the region since long even before the idea of the port. Customs
used to issue Port clearance (PC) certificates to launches fishing in the international waters. This region was
manned by Quetta Collectorate till 2011. Without effective presence of workforce of Pakistan Customs, the
working of the port and Free Zones was not possible. Hence, keeping in view the future prospects of Gwadar
port and CPEC projects, a separate dedicated Collectorate was established in 2011. The limits of Gwadar port
area and Gwadar Free Zone area were defined and regularized through a notification by FBR on 3rd May, 2018.
Currently, a dedicated Directorate of Transit Trade, Gwadar has also been notified and the existing staff of the
Collectorate has been given the additional duties to look after the work of transit as well to smoothen the transit
functioning of the port. In September, 2019 WeBOC system was rolled-out successfully at Gwadar port by
Pakistan Customs. There was a batch feeding Goods Declaration (GD) system till 2017 which was replaced by
One-Customs. Following are the list of the milestones which Pakistan Customs have achieved at Gwadar Port;

Automated Customs clearance system, WeBOC, is fully operational at port since 2019,
An exclusive special classification provision 9917 was provided by Pakistan Customs to simplify the
procedures for the imports at Gwadar under exemptions regimes,
Four ships of Afghan Transit Trade in Bulk have been handled successfully at Gwadar port,
In helping the Gwadar port to become a transshipment hub, FBR has notified the rules for the trade under
International Transshipment (IT) regime. Pakistan Customs have handled eight (08) containers on IT
destined to China on trial basis. The WeBOC module of IT is under development stages,
To encourage the coastal trade to and from Gwadar port, the rules for coastal trade has been notified. The
formation of modalities to handle such cargo are also underway,
The Customs Administrations of Pakistan and China are in consultation under "Green Customs Initiative"
for hassle-free clearance of perishable goods from Gwadar Port to Chinese Ports. All the checks required
at Chinese port shall be made at Gwadar in presence of Chinese Vet. Experts, Quarantine Department etc.
Those consignments shall be cleared immediately after arrival at Chinese Port. There is a huge export
potential of meat after clearance from Foot & Mouth Disease under this arrangement.

COVID-19 AND GWADAR PORT OPERATIONS

Despite the ongoing Covid-19 and many other challenges, the Gwadar International Terminals have made
significant developments during 2020. The management of the terminals (GITL) proudly mentions their
remarkable achievements during this year. This includes the first international transshipment of bulk and
containerized cargo, Afghan transit trade of containerized and bulk cargo, LPG imports. All remarkable
achievements during Covid-19 were made possible due to active support of Pakistan Customs administrations
at Gwadar Port who remained available 24/7 for speedy clearance and helping sustainable supply chain to
major CPEC projects. Global Times reported that Pakistan's Gwadar Port, a major project under the Belt and
Road Initiative (BRI), is functioning well despite the COVID-19 pandemic. During the COVID pandemic Gwadar
Customs along with GITL has completely followed the SOPs but kept the supply line open. Thus in toto followed
the slogan of WCO for this year "Customs bolstering Recovery, Renewal and Resilience for a sustainable supply
chain". A number of containerized ships carrying construction materials arrived at the port during pandemic,
offloading a dozen truckloads of goods, including steel wire, needed by the airport project in the region. However,
the pandemic could not hamper operations and import clearances rather the port operations were handled
more effectively by GITL and Pakistan Customs for timely delivery of inputs for various projects in Gwadar. It
is not only Gwadar port but supply lines were kept open for essentials through Iran borders for the local
population. It is important to mention that Customs officers and officials of MCC Gwadar succumbed to death
during their posting at borders in the initial phase of Corona. Despite of this, our commitment to safe, secure
and active economic frontiers of the country is unshattered.

30
 New Smuggling Paradigm: Challenges and State's Response
Haroon Waqar Malik, Additional Collector of Customs
(Anti-Smuggling), Karachi
Every year, the World Customs Organization celebrates International Customs Day on 26th of January to spotlight
matters related to Customs, business and trade affecting lives and economies across the globe. The worldwide
celebrations on this day portrays solidarity among the Customs administrations alongside focusing on critical
issues faced or achievements made during the year. Year 2020 was marked with unprecedented challenges
which deeply affected and profusely bled many economies as global trade suffered a deep plunge due to the
Covid-19 pandemic. The pandemic related SOP's, emphasized minimum interaction and isolation to prevent
spread of this deadly virus. Despite this, the officers and staff of Pakistan Customs served fully exposed to this
danger at the forefront and bravely discharged their official duties without any fear. The role of Pakistan
Customs by all means qualifies WCO's current year theme, "Customs bolstering recovery, renewal and resilience
for a sustainable supply chain".

As a matter of fact, national borders are still very sacrosanct demarcations for nation states for security and
economic reasons. States' effective control on their entry and exits points and borders ensures optimum revenue
along with safety and security for their societies. Against this backdrop, there is a paradigm shift about the
perception of Customs. The policy-makers are now more inclined to view Customs as an enforcement agency
instead of its traditional perception as a revenue collection establishment. This shift has become more pronounced
in recent years especially under the incumbent political regime. The present leadership of Pakistan Customs
has successfully adapted to this new perception and expectation. Notably, Customs has tactfully assumed this
new role without losing its position as the key contributor towards revenue collection.
The geo-strategic location of Pakistan offers enormous fortunes as well as challenges. Its landmass is situated
on the historic Silk Route to act as a conduit to transit trade, besides having a huge domestic demand for
consumer goods. The long porous border with Iran and Afghanistan serves as the traditional smuggling route
for all types of goods. The proximity of these lands with the Arabian Sea further adds to this vulnerability, which
has been exploited by smugglers. In current times, this challenge has grown into a multi-dimensional problem
that can potentially damage our society, national exchequer and domestic industry. The endless list of smuggling
prone items that includes fabric, tyres, medicine, household items, professional tools, hybrid vehicles, environmental
and health hazardous goods, etc. and items which are restricted otherwise have also become a profitable
temptation for the smugglers.

Historically, in Pakistan, smuggling as a profitable illegal business has evolved through different stages and so
have the dynamics of enforcement operations. Firstly, during the conventional era, smuggled goods were owned
by the shopkeepers of major markets and the smugglers provided those goods at their door step. Smuggling
dens at that time were identifiable and were only in few places in the shape of bara markets. The succeeding
era, was the middle stage of this evolution, during which the smugglers, started to supply their own smuggled
goods to the doorstep of shopkeepers and wholesalers of the major market, malls in megacities on long dues.
Finally, in the current era, the smugglers have bought their own outlets, shops and warehouses in the major

31
cities and they work in cartels. They now control complete trade cycle; own goods, manage financing, maneuver
passage of goods and finally sell at their self-owned outlets in major cities. Alarmingly, they have developed
their own strategies to jointly resist enforcement efforts by state agencies specially Customs. Their tactics
include stiff resistance, hooliganism, frivolous complaints, harassment, creating law and order situation, road
blocking, sit-ins and also resorting to firing. They also attempt to politicize the matter and, being resourceful,
use all possible means to pressurize enforcement agencies. All enforcement Collectorates during their recent
anti-smuggling operations have confronted such situations with varying intensity. However, despite all these
odds, Pakistan Customs has emerged as a resilient force with outstanding anti-smuggling performance on its
credit. The major push factor behind this performance is realization at the highest level of policy making that
smuggling is a curse that must be dealt with an iron hand.

The much needed driving force is infused through the vision of the Honorable Prime Minister of Pakistan, who
accorded top priority to eliminate smuggling, by launching Federal Government's anti-smuggling drive. In this
regard, the decision to give the lead role to Pakistan Customs resulted in enhanced confidence for the service
to venture on countrywide difficult operations, which were not earlier conceived or taken on. Besides reposing
trust on Pakistan Customs, multiple forums were also created under the new anti-smuggling initiative which
has pooled all state resources together to act jointly against the smugglers. The National, Provincial and Divisional
Level Task Forces have provided very effective platform for intelligence sharing, coordination and execution
of anti-smuggling operations to Customs formations.

Model Customs Collectorate, Enforcement & Compliance, Karachi, has been in the vanguard in this drive. It
successfully surpassed almost all monthly anti-smuggling targets assigned by the Board with significant margins
in the last year. The enforcement strategy adopted, instead of soft targets, focused on daring operations on
dumping places located at commercial centers of the city like Designers Mall, Tariq Road, Shershah Site area,
Banaras, Kharadar, Bolton Market, SITE B Area and Saddar. The Anti-smuggling Organization has carried out
around 100 major anti-smuggling operations and seized the largest quantities of different goods valuing Rs.
9,384 million during the year 2020. Besides conventional seizures, this Collectorate planned and executed an
international operation in collaboration with the Afghan authorities and international anti-narcotics agencies
worth Rs. 93 billion having FATF related significance and global acknowledgement. This is, so far, the only
international operation carried out with active participation with international enforcement agencies and
other member countries of WCO Network. Amongst these milestones, another major feather in the cap is
unprecedented seizure of 75 falcons and one houbara bustard of endangered species. This seizure and subsequent
rehabilitation project of the endangered birds launched with the assistance of international donors has earned
international recognition for the department. The news has built soft image of the country as was widely
reported by international electronic and print media including BBC, CNN, Al Jazeera, Khaleej Times, Express
Tribune, The Hindu, Gulf News, etc. The Collectorate also made historic seizures of narcotics and their precursors
in joint and individual operations, worth Rs. 4700 million approx.. during last year, which is stellar performance
on this account. Be that as it may, in view of the enormity of anti-smuggling challenge and expectations,
maintaining this momentum is by no means going to be a low risk task or an easy picking affair.

The current outstanding performance of Pakistan Customs in all domains of anti-smuggling is result of its
strategic approach, effective planning, dedication and professionalism. In this regard, the on-going nationwide
operation against smuggled petroleum products, spearheaded by Pakistan Customs, is continuation of this zeal
and reflection of the existing political will, capable leadership of Customs, motivated workforce and, above all,
national resolve to root out the menace of smuggling.

32
 Role of Pakistan Customs in sustainability of supply chain in
COVID -19 crisis
Sanaullah Abro
(Director Customs Reforms & Automation / RMS)

The Corona virus (COVID-19) has caused unprecedented upheaval in world. Irreparable human loss
coupled with unparallel economic crisis has brought uncertainty and disruption in supply chain
throughout the world which has eroding millions of livelihoods. Customs at the borders stood steadfast
to embrace the challenge and never shied away to ensure that relief goods and medical supplies reach
to the crisis hit effected people and relief organization, paramedics and hospital without any iota of
interruption. Like other parts of the world, Pakistan Customs also lost a number of officers and staff
and many were affected by COVID-19 while performing their duties at borders. They never buckled
down and remained steadfast not to allow disruption in supply chain, ensured relief medical supplies
reach to victims and in warehouses to avert the crisis from turning from bad to worse. And we
succeeded.

The passing year started with fear and uncertainty. World

economies were dipped and recession was set in. International
trade went down by 6% in the first quarter of 2020. COVID 19
drove large international trade declines in 2020 and the services
sector remained hardest hit by falling 15.4 % to levels seen in the
1990 and merchandize trade declined by 5.6% the biggest fall since
2009 (UNCTAD 20). In few months of the pandemic, almost 10 million people in US lost their jobs in
the crisis which turned worse than financial crisis in 2009. Manufacturing activity slowed down in
most of the emerging economies and the equity markets endured decline. All this adversely affected
production, consumption, supply chain and international trade crossing borders. The crisis generated
a number of trade restrictions and simultaneously triggered various trade facilitation measures.
Pakistan Customs adopted the changes smoothly and enforced the measures diligently for sustainability
of trade supply chain.

As the crisis broke, the World Customs Organization came forward and provided guidelines and issued
SOPs how Customs administrations all over the world deal with crisis particularly managing the
clearance of goods at borders. Through WCO web-site regular update about the pandemic was provided
and necessary guidelines about the use of instruments, tools, initiatives and databases were provided
to handle the untoward situation in COVID-19. WCO issued COVID reference list for classification of
medical supplies required in crisis in coordination with the WHO. It facilitated Member countries
including Pakistan to issue SROs for exemption for specific medical items which helped in making
urgent clearance of medical supplies at borders. In addition, the WCO invited the attention of Customs
administrations to use important tools required in managing the crisis such as 2011 Resolution of the

33
Customs Cooperation Council on the Role of Customs in Natural Disaster Relief, Guidelines to Chapter
5 of Specific Annex J to Revised Kyoto Convention.

Pakistan Customs continued to work uninterruptedly amid of Corona crisis. The staff at cross border
points continued to serve 24/7 ensuring the life saving supplies are reaching timely to the affected
and hospitals are not short of medicines. Special provisions of prior release and the immediate
clearance were applied at all major airports to release the related shipments immediately. All relevant
relief agencies and government organizations were helped out to handle urgent cargos. The Govt
regulations to control COVID related supplies and export of face mask were enforced stringently.
Customs staffs went beyond the call of duty and raise themselves at the time of crisis when the nation
needed them the most. They sacrificed their lives, risked their health and performed more than
expectations.

The lesson learnt from crisis is to harness cooperation among nations of the world, promote
multilateralism, establish close working relations with cross border agencies, create partnerships with
trade, leverage technology and establish permanent communication channels to manage pandemics
effectively to maintain the sustainability of supply chain.

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 Combating Counterfeit FMCGs
By: Kanwal Ali
Additional Director
Directorate General of IPR Enforcement Islamabad

FMCG sands for fast-moving consumer goods such as soft drinks, dairy products, toiletries (e.g. toothpaste,
deodorants, soaps), batteries and even some forms of over the counter medication. FMCGs are sold at low prices
and have a high rate of consumption. They are always in demand and are also called consumer packaged goods
(CPG). Well-known FMCG companies in Pakistan include Unilever, Proctor and Gamble, GlaxoSmithKline, Nestlé
and The Coca-Cola Company. The hallmark of these companies is continuous improvement and innovation.

Over the last few decades, drug cartels have shifted their focus to trade in counterfeit and pirated fast moving
consumer goods. This shift offers them high profits with low risks and minor penalties. However counterfeiting
is a trans-border crime that not only violates intellectual property rights, but further endangers public health
and consumer safety.

A study conducted by European Union Intellectual Property Organisation (EUPIO) in 2015, looks into the direct
and indirect industry revenue loses and job losses due to the presence of counterfeit products, such as perfumes,
beauty and make-up, and other personal care products. It also looks at the impact on public finance. €4.7 billion
of revenue is lost annually by the sector, whereas €4.8 billion of sales are lost in related sectors accompanied
by thousands of job losses.

Realizing the need to target counterfeit FMCGs a Joint Customs Operation (JCO) "HYGIEA" was organized by
the European Anti Fraud Office (OLAF) in association with the administration of Asia Europe meeting (ASEM).
ASEM is an inter-governmental platform of 51 member states of Europe & Asia, created for the purpose of
cooperation on areas of mutual interest including Customs with the objective of strengthening relationship
between Asian and European countries. In addition to the member countries, two observer organizations, OLAF
and EUROPOL also participated in the operation. FBR nominated the Directorate General of IPR (Enforcement),
Islamabad to serve as national contact point for this operation.

A debriefing meeting of the operation was scheduled by European Anti Fraud Office with a view to evaluate the
performance of 38 participating countries out of 51 members of ASEM during the specified operation period
of five months. A final report on JCO HYGIEA formulated by OLAF reveals that a total of 194,498 pieces of
counterfeit perfumes, toothpaste, cosmetics as well as 120,833,69kg of counterfeit detergent, shampoo, and
diapers were detained and seized as direct results of the operation targeting counterfeit FMCG products.

35
The performance of Pakistan Customs was at the top followed by Malta, Italy, France and Bangladesh. This
outstanding performance of Pakistan Customs IPR (Enforcement) was acknowledged by the OLAF, EUROPOL,
ASEM and all participating member states of the JCO HYGIEA.

During the operational phase of HYGIEA, OLAF facilitated the cooperation between the participant countries
with the support of a team of ten liaison officers from Bangladesh, China, Japan, Malaysia, Vietnam, Lithuania,
Malta, Portugal, Spain and EUROPOL, all working together in Brussels. A Virtual Operational Coordination Unit
(VOCU) - a secure communication channel for the joint customs operations was used to channel the flow of
incoming information. This exchange of information in real time allowed all the experts involved to identify the
suspect flows of counterfeit goods out of ordinary commercial transactions.

JCO HYGIEA was a success story as summed up by: Mr. Ville Itala, Director General of the European Anti-Fraud
Office (OLAF):

"Operation Hygiea shows what can be achieved when customs authorities, international partners and industry
work together to fight fakes. Counterfeit goods defraud consumers, harm legitimate businesses and cause huge
losses to public revenues. Counterfeit goods also undermine public health policies. When fakes flood our markets,
the only ones to benefit are fraudsters and criminals. I warmly congratulate all those that participated in
Operation HYGIEA for the excellent results"

Pakistan Customs through the Directorate General of IPR Enforcement continues to intercept, detain and seize
consignments of counterfeit FMCG products. One of our significant achievements was to seize massive quantities
of counterfeit Sensodyne toothpastes both at import stage and in transit shipments. The representatives of GSK
particularly lauded Customs IPR's efforts in seizing these products. Mr.Marc Lambert - Senior Manager, Anti-
Counterfeiting, Legal Brand Protection GSK (London) specially paid a visit to Pakistan to express his gratitude
to Pakistan Customs. We continue to build on this trust and cooperation while realising the imminent need to
dismantle fraudulent organisations involved in trafficking of counterfeit FMCG products.Eventually we should
all be geared up with a renewed energy to combat counterfeit FMCGs through focused, innovative techniques.

36
 PAKISTAN CUSTOMS STANDS RESILIENT IN WAKE OF
COVID-19 PANDEMIC

DR. AMNA NAEEM

Deputy Collector of Customs
MCC (Enforcement & Compliance), Karachi.

International Customs fraternity comes together this year to recognize the services of World Customs in
fortifying and strengthening the sustainable supply chain through effective recovery, renewal and resilience
during the deadly Covid-19 pandemic. This year's slogan is a testimony to the selfless contribution of Customs
as a global fraternity emphasizing the aspect of organizational responsibility towards fostering a sustainable
supply chain in the wake of national lockdowns and worldwide disruptions of legitimate imports and exports.
Customs being an essential service has effectively attained its strategic mission of ensuring sustainability of
supply chain while coping effectively with multi-faceted and complex challenges at regional and international
levels, which arose due to the Covid pandemic.

Pakistan Customs in line with this year's slogan has been successfully performing its tasks of revenue collection,
effective enforcement and protection and facilitation of legitimate trade while strictly implementing all Covid-
19 safety protocols. These trade facilitating measures have successfully ensured service delivery through online
collection of leviable duties, paperless clearances, promoting and facilitating legitimate imports and exports and
un-interrupted cross-border movement of goods. Throughout the pandemic, Pakistan Customs Operations
continued unhindered and extraordinary trade facilitation measures ensured minimum loss to business. This
is evident from improvement of Pakistan ranking of Trading Across Border Index from 142nd to 111th and
World Bank's ease of doing business index from 136th to 108th rank. Pakistan Customs have achieved this
milestone through strengthening the global supply chain, reinforcing collaboration, harnessing technology and
putting 'people' at the center of digital transformation process, while paying particular attention to automation,
use of innovative technology and adoption of collaborative approaches with all stakeholders along the supply
chain.

Thus, Pakistan Customs has been at the frontline during this 'New Normal' environment, inspecting incoming
and outgoing passengers and cargo and allowing movement of vessels and aircrafts while safeguarding national
security through adoption of National Government policy in collaboration with all relevant law enforcement
agencies and health department. Pakistan Customs officers and officials have selflessly served round the clock
ensuring immediate clearances of essential medical supplies, medical equipment and life-saving drugs at all
airports. Similarly, all imports and exports at sea-ports and borders have been facilitated under restrictive SOPs
protocols while ensuring proper examinations and assessment of goods to plug any revenue leakages and
securing legitimate government revenue.

37
 Pakistan Customs: A Futuristic Organization
Aadarsh Jawahery, Assistant Collector, MCC E&C, Karachi

International Customs Day is celebrated every year on 26th January and this year WCO's theme is "Customs bolstering
recovery, renewal and resilience for a sustainable supply chain." Each year themes adapted by WCO are centered around
various characters depicting Customs' lineaments, contours and its cross-border / trans-national significance. Importantly,
in today's world of neoliberal trade and free markets, role of Customs as an enforcement and facilitation agency has not
only increased exponentially but has exposed the department towards multiple challenges, having huge magnanimity.
It is not only engaged in imports, exports and counter-smuggling, but has marked its effectiveness in other areas of
economic development, which is aimed at protection of economic frontier, national exchequer and society at large.

In last few decades, the quantity of goods traded and speed of transportation has increased. With advent of new world
order, neoliberal business model prevailed all across the world, which was later formalized by different WTO agreements.
These agreements are characterized by provision of free-market, universal accessibility and removal of tariff and non-
tariff barriers. These agreements came with another specification of protection of legal trade by curbing smuggling and
informal / illegitimate trade and related ancillary issues. With these developments Pakistan Customs had to depart from
traditional ways of handling and processing goods / trade, and device new procedures and mechanism to deal with
modern trade requirement and cop up with increased quantity of traded goods, both at imports and exports stage. Coupled
with that, another work undertaken by Customs was to design new patterns of anti-smuggling to curb informal trade
/ smuggling. Amidst globalization and ruthless consumerism, a number of products are in demand in market to satiate
the requirements of 400 billion dollar economy of Pakistan. From daily use fabric, household items to professional tools,
hybrid vehicles, the demand is for the best quality and cheapest cost. This situation has begotten increased smuggling,
at times to evade the taxes and to secure product quality, at others. Coupled with burgeoning population, the rate of
consumption has lured many to deviate from national laws and turn to smuggling, besides counterfeiting / piracy of
registered products. This scenario resulted in establishment new specialized formations in Pakistan Customs, speedy
disposal of goods by completion of legal requirements and modernization through information technology.

With establishment of Pral, Central Board of Revenue (now Federal Board of Revenue) initiated modernization through
information technology in 1994. However, the milestone was only achieved with designing and implementation of PaCCS
in 2007, followed by Weboc roll out in 2013. These programs were designed keeping in view huge increase into the
importation and exportation in early 2000s. These systems cut short and automated all the manual procedures of
clearing goods, replacing erstwhile pre-release requirement of bill of entry containing 64 signatures and 32 verification,
with online filing of goods declaration and allocation into one of three channels of cargo based on importer's profile. End
of customs process was now only a click away.

In order to remain competitive, Pakistan Customs not only created dedicated formations in important land and sea
border areas for imports and exports, but separate formations were also created to curb any unscrupulous element mis-
using formal procedure and bringing into or out of Pakistan goods through smuggling. More import
/ export terminals and off-dock facilities were notified. Apart from it, Customs, as an organization, developed other
specialized formations like Post-Clearance and Internal Audit, Adjudication Collectorate, Directorate of Reforms and
Automation, Directorate of Cross-Border Currency Movement, and lately Border Management Force to effect specialized
tasks more efficiently and effectively. Moreover, disputes related to the valuation of imported and exported items were
also subjected to solution through valuation rulings based on different formulae present in section 25 of Customs Act,
1969. This provided instant solution to the products of technical specification and reduced their dwell time sufficiently.

38
Customs contribution to the protection of society is indispensable in modern times, when populace is exposed to usage
of all sorts products / items manufactured in foreign countries. The government notifies rules for certain items in order
to ban or restrict them considering well-being of the people at large. However, enforcement of those laws at import /
export / transit stage and prevention of their illegal / informal trade is again responsibility of customs. It is open to easy
comprehension that anti-smuggling in Karachi, adjacent areas and borders of Balochistan would always require more
resources and efforts than deemed necessary. Owing to the fact, that Customs, being a specialized department, has
always been understaffed and under-resourced even today. The fact can very well be appreciated that current successes
of confiscation of narcotic drugs, banned items, endangered falcons, Indian fabric and other high value items throughout
the south came only with a team of 30 officers and 70 sepoys, performing uncompromisingly and risking their lives.
For serious protection of economic borders of the country and securing society and domestic industry alike, it is
mandatory that Pakistan Customs may be immediately equipped with more human and material resources to execute
the action against smuggling more firmly. Besides these customs law enforcement issues, the general understanding,
cultural acceptance and redressal of public opinion are also included in the bucket.

Be that as it may, it is a commonplace fact that smuggling in our country has no negative cultural sanctions, and therefore,
smuggling as an offence is also not considered a deviation from societal ethos and patterns. This has been bluntly
manifested into public reaction of various operations conducted by Pakistan Customs in Karachi. In a number of cases,
main roads were blocked and markets were closed down, apart from holding sit-in before Press Clubs, Governor House
and other political offices. Notably, these demonstrations were staged in a political style and for political sort of demands.
Cultural non-acceptance of smuggling as a crime is also manifested in the fact that smugglers not only demonstrate
public power, but they are not treated by society as an offender or a criminal. This is an important area, where sufficient
education, cultural change and accurate conditioning is required, on part of government. Lest smuggling is made a
deviation as strong as theft, robbery and murder, customs laws shall become ever more difficult to enforce for Pakistan
Customs. Since no unusual smuggling activity is reported even by legitimate business traders and general public, the
assistance of customs in this regard has become too far a dream.

Last year witnessed the pandemic of Covid-19, where strict lockdowns and SOPs brought life to stand-still globally. This
situation was tackled and operations continued unhindered due to futuristic procedures and approach of Pakistan
Customs. Almost all transaction in customs i.e. imports, exports, Export Processing Zones, transit trade etc. were already
carried out through web-based application of Pakistan Custom named WeBOC. Utility of WeBOC not only contributed
to continuation of work-from-home, but substantial relief and aid goods, medical equipment and others essential goods
continued to be traded for welfare of population. Due to this futuristic approach and excessive use of information
technology, administration of Customs continued without spread of virus and much face-to-face interaction of the people.
Presently, almost every process of Customs from anchoring of ships / landing of plans, filing of goods declaration, their
examination and payment of duties is performed through internet based software. The traders, thus, become the people
to receive the delivery of goods at ports, safely and carry out their businesses as usual.

Although Pakistan Customs has been upright in enforcing laws against smuggling and securing economy and people
at large, there is severe need to acclimatize and educate people regarding prevailing customs laws, being directly relevant
to them. Without cultural support and people-to-people awareness, it is not possible to promote legal trade and curb
the menace of illegal trade completely. Threat of the time is bigger than the resources available with the government,
which, if upgraded, may prove instrumental for quick betterment of the country. Modernization, specialization and
unique administrative culture has given futuristic outlook to Pakistan Customs, which is ever-ready to face any challenge
like Covid-19 situation, increase of illegal and illegal trade. With sincere approach towards solutions and dedicated efforts,
the day shall be nearing for Pakistan to rise among comity of nations as a modern, transparent, smuggling-free country
and healthy economy.

39
 Customs bolstering Recovery, Renewal and Resilience
By Assistant Collector Sarah Sarwar

This year, the World Customs Organization has chosen the theme "Customs bolstering Recovery, Renewal and
Resilience for a sustainable supply chain" to mark the World Customs Day this year. Around 190 Customs
Administrations celebrate the World Customs Day under the leadership of World Customs Organization (WCO)
each year on 26th January.

This year's theme is in line with current challenges faced by governments around the globe in handling the
COVID-19 induced crisis.The theme shows the resolve of WCO to guide and lead the way for Customs
Administrations to become resilient to such shocks in future through promotion of resilience and sustainability.

Customs, along with other border agencies, has a crucial role in facilitating trade and integrating border procedures
as has been reiterated by COVID-19 pandemic which has demonstrated critical and central role of Customs in
ensuring seamless operation of supply chains and preventing barriers like the pandemic from becoming a
roadblock in the transportation of essential items like medical goods across the borders.

In line with this year's theme, Customs administrations around the globe will be encouraged to incorporate
digitization at their borders by introducing automation with the use of AI and other innovative technologies.These
include digital and paperless clearance methods, and single window systems for facilitating and accelerating
processes while eliminating red-tapism. Incorporating Artificial Intelligence in Customs systems can serve as
a game changer in this regard and can also offer supportive functions like data sharing and data analysis.

The major roadblocks faced during the pandemic drives home the point that for socio-economic recovery and
more resilient systems, supply chains require more effective coordination across borders and efficient transport
systems.Efficient intermodal transport system would employ internationally recognised instruments like the
United Nations TIR Convention and its eTIR International System, the CMR Convention and its eCMR Protocol
and the Automated System for Customs Data (ASYCUDA). These allow for contactless cross border cargo
movement eliminating the need for people to people contact.

Coordinated border management through Single Window systems allow traders to communicate electronically
with all agencies involved. Pakistan has made significant strides in this regard since it ratified the WTO's
Agreement on Trade Facilitation on 27th October, 2015 and committed to the establishment of a trade related
National Single Window (NSW) with an implementation timeline of five years with effect from 22nd February,
2017.

The Government, in October, 2017, designated Pakistan Customs as the lead agency for implementation of
Pakistan Single Window before February, 2022.The Single Window system will connect all stakeholders via
integrated Declarations and will eliminate the current practice of filing and pursuing separate applications to

40
Customs and Other Government Departments (OGAs). Information sharing regarding goods that require
Licenses., Permits, Certificates from OGAs will be automated which will improve regulatory controls and
transparency. Most importantly, paper-less processing will reduce dwell times and make it easier to regulate
economic operators.

Work is well underway on the Pakistan Single Window and efforts of Pakistan Customs are bearing fruits.
Concerted efforts by the Pakistan Customs, under FBR,has led to impressive performance in terms of compliance
to the provisions of the World Trade Organization (WTO)'s Trade Facilitation Agreement. Pakistan has been
able to reduce the dwell time for imports and exports by increasing the percentage of clearances through Green
Channel as part of its Risk Management system.The Pakistan Single Window would further integrate online
over 45 government departments or agencies in Pakistan and would make trading across borders a hassle-free
and seamless operation.Pakistan has climbed 31 spots recently on Trading Across Border Index, a testament
to the efforts of FBR and Pakistan Customs.

Regional cooperation on trade facilitation and transport connectivity is the need of the hour.In order to address
the vulnerability of Customs to risks like pandemics, Customs administrations will have to build greater resilience
with policy makers keeping people central to their decision making models. Customs will have to rethink their
operations in such a way as to build their capacity for coping with risks like pandemics in future with minimum
costs.

The WCO's theme this year for International Customs Day, "Customs bolstering Recovery, Renewal and
Resilience" should serve as a guiding post and reference for Customs Administrations looking towards a more
sustainable future and it is hoped, that Pakistan Customs will, once again show their professionalism and resolve
by being at the forefront of this effort..

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 CUSTOMS BOLSTERING RECOVERY, RENEWAL AND RESILIENCE FOR A
SUSTAINABLE SUPPLY CHAIN
Article by Ms. Wardah Hajra Assistant Collector MCC Islamabad

The World Customs Organization's theme for International Customs Day 2021 truly encompasses
what customs formations all over the world have been through in a post-Covid world. The onset of
Covid-19 has set up a new milestone in global history where the future will see the last century as a
post-cold war, post-9/11 and a post-Covid world.

The ability of corporations to develop supply-chain networks was the basis of globalization. The very
foundation of this dynamic world has been threatened by Covid-19 as countries on the bottom of the
supply chain began to close down as a method to deal with the rapidly spreading virus. Not only did
this raise a point on the fragility of the supply chain network, it once again highlighted the importance
of developing seamless trade systems, automated risk management systems and international
coordination between different customs authorities to ensure that trade activities continue. Critics
and analysts all over the world agree that the impact of Covid-19 on trade and related activities shall
be long-lasting and continuous efforts will be needed to recover from both the visible and unseen
losses occurred.

Customs authorities all over the world have been working throughout the pandemic. In Pakistan,
Customs activities were marked as frontline mandatory operations by the government. The staff
continued to ensure smooth supply of goods such as medical equipment, protective gear, sanitizers
and masks. Customs vigilance ensured that counterfeit, illegal and smuggled items were deterred. In
the course of these activities, many personnel lost their lives to the virus.

1,483 epidemic events in 172 countries were tracked by the WHO between 2011 and 2018 and certain
recommendations on the preparedness of governments were made. Pandemics are not the only risk
that supply chain networks face in the world. There are cyber-attacks, national disasters, wars and
maritime threats that need to be taken into account before formulating any policies. The preparedness
of different customs organizations in the world under the auspices of WCO reinforced the commitment
of customs personnel that were already working under the pressure of the government for matters
related to revenue collection. The current times prove that Customs authorities should be involved
in strategy and policy making because their preparedness includes a regional PESTLE Analysis of the
business and work environment.

Covid-19 is a harbinger of renewal and speeding up processes related to modernization of Customs.

The Pakistan Single Window, a project pioneered by Pakistan Customs, will be rolled out in the country
tentatively in June 2021, making inter-agency coordination and strong linkages- a possibility. Cooperation
and communication can change the reactive strategies into proactive functioning thus also contributing
to the overall economic well-being of the country.

While the world was putting up a fight against the pandemic, criminals saw this as an opportunity for
fraudulent activities. Using the fear amongst people as a driving force, offenders all over the world
have attempted to introduce counterfeit and sub-standard equipment and protective instruments in
the market. In order to ensure that genuine supply chains were not affected, WCO launched an

42
Intellectual Property Rights module on the CENcomm platform. Pakistan Customs is also in the process
of uploading data on to this platform to contribute to the process of information sharing.

Customs Administrations all over the world have shown commendable resilience to the challenges
presented since the onset of Covid-19 pandemic. Quick responses and non-standard solutions through
automated processes have made it possible to continue routine activities- with improvisation. The
need for a secure and contactless border has never been highlighted so strongly before. The environment
in which customs operates is gradually changing. In order to keep up with the fast pace of these
changing dynamics, customs authorities must vow to keep improving. Adaptability and learning will
be at the core of this improvement.

In the long term, more programs like the Authorized Economic Operator (AEO) Program will have
to be introduced even for air cargo. This will reduce unnecessary delays and rerouting of cargo flights.
It will take a long time for the aviation industry to recover from the impact of Covid-19. The pandemic
has made the world realize that air cargo has been crucial during the provision of health and safety
supplies to different parts of the world. For them to remain functional a balance will have to be created
between enforcement measures and facilitation so that the economic impact on cargo flights can be
reduced. This will include dropping some quarantine regulations, training employees, introducing
improved risk management systems and establishing quick response procedures. Preparedness for
any unpredictable situation in the future is the key to effective Customs operations. This is a commitment
that is endorsed on this International Customs Day.

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 Post Pandemic Evolution of Global Supply Chains
and the Role of Customs
By: Kashmala Tahseen, Assistant Collector at Pakistan Customs

For much of the world, the pandemic disrupted life as it knew it. From causing an unprecedented public health
crisis and overburdening health care systems to disrupting supply chains and trade flows, it will take a long
time for us to untangle from the damage caused by the pandemic.The COVID-19 pandemic disrupted global
trade and exposed vulnerabilities in our supply chains hitherto unrecognized. From shortages of personal
protective equipment (PPE) to delays in acquiring medicines and food items, the pandemic revealed the key
inherent weaknesses in our global trade and supply chains .

As front line fighters against the barriers created by COVID-19, Customs departments had their resilience and
flexibility tested by the pandemic as they tried to maintain vital operations in the face of the crisis. Short term
measures were taken by most customs administrations over the world to check the disruption in supply chains
and reduce the need for human intervention. Pakistan Customs, for instance, diligently played its role in facilitating
the public in these adverse circumstances. Measures were taken for swift clearance of medicines, food items,
and equipment pertaining to treatment of Covid. Moreover, the government waived off all duties and taxes on
the import of essential materials necessary for containing and combating the COVID-19 pandemic and 24/7
clearance of Cargo at Ports/Airports and land borders stations was done during the pandemic to ensure supply
chain continuity.Meanwhile, the web-based customs clearance services helped all clients declare, pay and request
for services without having to visit Customs Offices.

These, however, were only short term measures. What remains to be seen now is how the long term evolution
of supply chains and international trade will take place post the COVID-19 pandemic and how the associated
stakeholders will adapt. With much speculation over the pandemic resulting in permanent changes on global
trade, there is expectation that the structure of demand and the associated supply chains in the long run will
go major changes.

Industries with extensive value chains including developing countries are likely to undergo drastic transformation.
Demand for autos and clothing may go down with many companies opting to continue with the work-from-
home modus operandi resulting in lesser need for daily commute and everyday office wear. Similarly, the demand
for electronics may go up.These changes will require supply chain leaders and stakeholders like the Customs
authorities to adapt their procedures and processes accordingly.

Long term support to supply chains from Customs will need a major shift in the Customs decision-making
process, customs procedures and customs formalities with a reduction in the level of human intervention
required in all of these.Many Governments implemented restrictions related to international trade and transport
to curb the spread of the pandemic causing interruptions to international trade flows and value chains leading
to negative social and economic effects in the countries concerned. Consequently, Governments and border
agencies, including customs administrations, need reforms to keep trade moving while protecting populations
and workers in the face of barriers like the COVID-19 pandemic in future.

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One likely key reform area is an increase in the pace of automation in departments like Customs as both firms
and government organisations are now aware of the risks of potential disruption in supply chains from
pandemics and other eventualities like these.These risks make the cost of automation a necessary investment
required to adapt to rapidly the changing requirements of maintaining supply chains and trade flows.

The World Customs day theme for celebrating the annual World Customs Day on 26th January this year resonates
with these expected changes. This year, around the globe, Customs Administrations will celebrate World Customs
Day under the slogan "Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain".
This year's WCO theme focuses on the digitization of supply chain processes, instating swift data sharing
mechanisms across supply chains and strengthening collaboration of Customs Administrations to make Customs
more resilient and better prepared for future contingencies.

Pakistan Customs has already taken steps in line with this year's theme.To streamline trade activities across
the border and reduce dwell times, Pakistan Customs is serving as the lead agency for implementation of NSW
(National Single Window), a platform that will connect relevant government departments with each other and
with economic operators like importers, exporters, customs agents, shipping agents, and transporters in
Pakistan for efficient management of cross border trade via a single point of entry. Pakistan ratified the WTO's
Agreement on Trade Facilitation on 27th October, 2015 and under its Article 10.4 committed to the establishment
of a trade related National Single Window (NSW) with an implementation timeline of five years with effect from
22nd February, 2017.

Pakistan Customs has not only made substantial progress on NSW implementation but is also already working
on improving cross border trade facilitation.The indigenously developed Customs Single Window has already
been implemented in the shape of WeBOC, which handles 90% of Pakistan's external trade providing 24/7
paperless processing services and end to end automated customs clearance of import and export of goods,
thereby reducing customs processing time (under 04 hours). The upgraded version WeBOC-Glo includes new
modules and functionalities that ensure speedy processing and improved user interface. This plays a major
role in integration of supply chains and promotion of trade facilitation but will also enhance controls through
integrated risk management.

Once fully implemented, the NSW will eliminate the need for physical engagement between the traders and
regulators while simplifying the procedures and improving predictability.So far, Pakistan Customs has shown
great commitment and professionalism in its implementation. This shows its resolve towards fostering
sustainability which gives hope for a much more resilient, responsive and sustainable system that will be better
adapted to crises like the Covid- 19 pandemic in future.

During the reconstruction process after the world begins to assess the real damage the pandemic has havoced
on supply chains globally, Customs will have to assume a leadership role, at national and international levels
and work for coordinated border management in an efficient and sustainable manner to ensure that the world
is even better prepared the next time a crisis like this arises.

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 Zainab Hayat
Preventive Officer
THE EVER AWAKE CUSTOMS FIGHTERS
The World Customs Organization (WCO), established in 1952, represents 183 Customs administrations across
the globe that collectively process approximately 98% of world trade. All member countries of WCO celebrates
International Customs day on 26th January every year with a slogan to commemorate the day. The WCO theme
for this year is "Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain".
The year 2020, witnessed one of the worst pandemics this world has ever seen. COVID 19 has not just graved
people's lives but also jeopardized the ongoing businesses and trade of the world. Trade through the sea
experienced most critical times. The sea freight containers were stuck at different ports of the world.
Like many member countries of SCO to facilitate the Cross-border Movement of Relief and Essential Supplies,
Government of Pakistan waived all duties and taxes on the import of essential medicines and equipment
necessary for containing and combating the COVID-19 pandemic. Pakistan also initiated 24/7 clearance of cargo
at ports/airports and land borders stations, while ensuring expeditious clearance of medicines, food items, and
equipment pertaining to treatment of COVID-19. Dedicated e-mail address was notified as a single contact facility
to accommodate all trade related queries/grievances for redressal by the Customs authorities. For Supporting
the Economy and Sustaining Supply Chain Continuity, Pakistan Customs extended the period for filling for goods
declarations.

The Pakistan Customs authorities was provided with extra budget to protect the staff against the COVID-19
pandemic by the provision of masks, sanitizers and other essentials as instructed by the local health authorities.
Screening and sanitizing facilities have were made available at all the work places and staff above the age of
50 and those suffering from any underlying health conditions were relieved from physical appearance at the
offices. To ensure the spread of virus in all the offices (including field formations), plasma antibiotic test were
also conducted twice. In addition, the scope of meetings was also restricted to WEB conferences.
In following all the COVID-19 protocol, Port Control Unit of MCC of Enforcement and compliance kept the
vigilance to curb illicit trade of Drugs and Drug precursors. In doing so, PCU seized 3.2 MTons of Acetic Anhydride,
which is precursor for the manufacturing of Heroine, in the month of July, 2020. The cans of Acetic Anhydride
were clandestinely packed in cans with labels of Laundry Liquid Soap. The estimated international value of the
seized Acetic Anhydride is safely around 215,712,000/- Pak Rupees.

Later, in the month of September, 2020, Iodine was identified in the Transit Trade destined for Afghanistan.
Iodine is a US DEA controlled list item. The 6 MTons of Iodine, which is used in manufacturing of Methamphetamine,
was seized by UNODC CCP Team and the US DEA agents in Afghanistan. The International Narcotics Board also
informed that the seized Iodine could have potentially produced 4.5 Metric Tons of Methamphetamine which
according to UNODC survey reports has an international market value of 91.670 Billion Pak Rupees. This
unprecedented and remarkable exercise resulted in stopping the illicit flow of Millions of US Dollars from going
into the hands and ultimate funding of terrorists organizations operating thereof.

46
 PAKISTAN BECOMING A TRANSIT TRADE HUB THROUGH DIGITAL TRANSFORMATION
BY MR. AHMED REZA KHAN, THE DIRECTOR GENERAL, TRANSIT TRADE, KARACHI

Pakistan is a country gifted with a prized geography and location. The country is located at the crossroads of
Central and South East Asia, with China as its neighbor in the North East, India in the East, and Iran and
Afghanistan in the west. Pakistan has about 990 KM coastline harboring its deep sea ports at Karachi and
Gwadar. Through Afghanistan and China, Pakistan has access to six Central Asia States whereas Afghanistan
and the Central Asian States are land locked. Pakistan has the potential to develop and promote a transit economy
by linking these land-locked countries with the Middle-East, Africa and Europe through its transit corridor and
seaports. Since 1990, Pakistan has been a part of multiple agreements; the most significant ones being South
Asia Free Trade Agreement, Afghanistan Pakistan Transit Trade Agreement (APTTA), Economic Coordination
Organization (ECO), Transit Transport Framework Agreement (TTFA), Quadrilateral Traffic in Transit Agreement
(QTTA), Central Asian Regional Economic Corridor (CAREC) and the China Pakistan Economic Corridor (CPEC).
By way of CPEC, Pakistan's Gwadar Port opens a gateway to the Indian Ocean, providing Afghanistan and Central
Asian States a wonderful opportunity for marine trade, thus, promoting regional connectivity, economic
diversification and sustainable growth in the whole region.

The United Nations Convention on the Law of the Sea, 1958 and Article V to the General Agreement on Tariffs
and Trade (GATT), under the framework of the World Trade Organization (WTO), provide the freedom of transit
for the land locked countries. Since Pakistan is a member of the United Nations and a signatory of the World
Trade Organization, fulfilling its international commitments, it is providing transit facility to Afghanistan through
Afghan Transit Trade Agreement (ATTA) 1965 which was revised in 2010 under the name of the Afghanistan-
Pakistan Transit Trade Agreement (APTTA). At present, the negotiations are underway to sign a new Transit
Trade Agreement between Pakistan and Afghanistan this year which will cater to the changed international
trading environment and technological advancements.

In 2020, transit goods worth US$ 5403 million landing at Pakistan's seaports were transported to Afghanistan.
During this year, the lockdown resulting from Covid-19 calamity posed an unusual challenge before Pakistan
Customs. As a result of lockdown, thousands of containers got stuck at the sea port causing massive congestion
at the port terminals. However, with effective strategy, the situation was brought to normal within two months.
Lowering of transaction cost and adding more predictability to the trading environment is the priority of
Government of Pakistan. In this regard, Pakistan Customs took special measures to simplify the procedures in
transit flow so as to enhance the ease of doing business coupled with reduction in cost of doing business.
To facilitate the Transit Trade and to avoid congestion at Torkham border crossing point on 2nd December,
2020, FBR notified transit operations at Ghulam Khan Customs Station (GKK) which falls under North Waziristan
Tribal District of Bannu division. GKK shares borders with Afghanistan and, after Chaman and Torkham, it is
the most utilized trade route in Pakistan. It also provides for the shortest route to Afghanistan for the traffic
coming from Karachi. Customs staff has been deployed along with the configuration of Customs computerized
System (WeBOC) at GKK for transit operations.

With the aim of developing a comprehensive infrastructure for smooth and effective flow of transit and bilateral
trade, Pakistan Customs (in collaboration with Asian Development Bank) is pursuing the construction of state
of the art border crossing terminals at Torkham, Chaman and Wagha. The master plan for these three border
terminals has already been approved under the Integrated Transit Trade Management System (ITTMS) regime,
and development work has commenced under the supervision of a dedicated Project Management Unit (PMU)
of FBR. The multi-million dollar project envisages revamping the entire infrastructure including integrated
administrative offices, widening of roads, new angled vehicle parking, installation of multi traffic lanes, erection
of new pedestrian processing facilities along with new canopies and bridges. Installation of new equipment,
such as cargo X-ray scanning, vehicular weighbridges, scanning and detection equipment for multi-entry and
exit pedestrian lane also form part of the project. Moreover, new Information and Communication Technology

47
(ICT) hardware and software will be installed as part of the transition to a Single Window System. The project
aims at providing and implementing all internationally recognized best practices in transition and handling
of cargo and passengers at the border terminals.

Pakistan acceded to the Customs Convention on the International Transport of Goods Under Cover of TIR Carnets
(TIR Convention 1975) on 21st July 2015. By 2017, it had issued TIR rules and developed the TIR module for
Full Container Load and Less than Container Load consignments under TIR operation by road. With the activation
of TIR in Pakistan, so far 33 TIR operations have been successfully completed with the number rising from 8
in 2018 to 15 in 2020. Pakistan Customs has also developed an Intermodal Module for Afghanistan-Pakistan
Transit Trade under TIR for the movement of goods brought through ships and transported through roads from
Karachi Ports to the Customs Border Stations of Torkham and Chaman. Pakistan is also one of the 15 countries
who expressed their interest in establishing eTIR for full computerization of TIR procedures. The project has
started with the help of the United Nations Economic Commission for Europe (UNECE).

In a nutshell, Pakistan is fast moving towards becoming a transit hub and important transit corridor by expanding
its transit trade with other regional countries through bilateral trade agreements and under multilateral Convention
of TIR with the up-gradation of its infrastructure.

48
 Pakistan Single Window
"CUSTOMS BOLSTERING RECOVERY, RENEWAL AND RESILIENCE FOR A SUSTAINABLE SUPPLY CHAIN"
BY AFTAB HAIDER WORLD BANK LEAD CUSTOMS EXPERT

The sustainability of international supply chain is in focus during the ongoing coronavirus pandemic to keep
international trade flows open for ensuring access to essential supplies including food and medicines while
limiting pandemic's negative impact on economy. As Pakistan Customs joins the Customs fraternity worldwide
in celebrating the 38th International Customs Day on the theme of "Customs bolstering Recovery, Renewal and
Resilience for a sustainable supply chain", it is cognizant of its pivotal role in in the overall supply chain
sustainability. While providing 24/7 operational support at the ports, international airports and land border
crossings, Pakistan Customs has been coming up with ICT based interventions that are designed to enhance
workplace collaboration, minimize physical interactions between difference actors and reduce customs clearance
costs & time for businesses. The Pakistan Single Window program is one such initiative.
As a signatory to the WTO's Trade Facilitation Agreement (2015), Pakistan has notified the establishment of a
'National Single Window' as a 'Category C' commitment with an implementation timeline of five years with
effect from 22nd February 2017 and has initiated the development of the SW at an accelerated pace with
Pakistan Customs as the designated 'Lead Agency'.The PSW will allow parties involved in trade and transport
to lodge standardized information and documents with a single-entry point to fulfill all import, export, and
transit-related regulatory requirements.

After putting in place a robust and inclusive implementation mechanism PSW is being indigenously developed
by Pakistan Customs as a comprehensive electronic trade platform connecting Customs, trade regulators, traders,
transporters, freight forwarders, logistic operators, port operators, shipping lines, airlines and road traffic,
commercial banks and other stakeholders associated with international trade. Under PSW program, the processes
related to cross border trade are not just automated but they are being simplified to reduce redundancy and
are integrated to improve controls. PSW is aiming at ensuring seamless exchange of information amongst all
stakeholders connected to the system in a transparent manner and provide real time updates and access to
information to all stakeholders including traders.

From February 2021 onwards, the PSW will start phased roll out of a suite of services. This would include a
unified registration system for economic operators, products and entities while integrating registration
requirements of customs and other trade regulators into a single form through electronic portal. Similarly, it will
enable filing of integrated declaration form eliminating the need for filling out multiple forms for various
purposes. It will provide electronic issuance of licenses, permits, certificates and other documents by trade
regulators and Customs. The back-end processes related to these LPCOs are also being automated. The PSW
will adopt integrated risk management system and introduce joint inspection mechanism. It will offer electronic
lab management and an integrated tariff management system at 12 digits. The PSW platform will be further
complemented by a cross-border trade information portal, a re-modelled customs management system (WeBOC),
a robust port community system covering the sea, air, and land port communities, e-commerce, and electronic
payment system offering single payment experience for all services. PSW will be integrated with other databases
like NADRA, SECP, and FBR etc for electronic validations and verifications. It will have the capability for electronic
data interchange with internal and external stakeholders.

The success of the PSW system is predicated on an efficient and effective governance and operating system
that is self-sustaining, transparent and innovative and fosters a positive work environment and is responsive
to the stakeholders' needs. Keeping this in view, FBR has created the PSW Company under Section 42 of the
Companies Act, 2017 which will act as the operating entity for the PSW. A high-level Governing Council will
provide management oversight and supervision to the PSW. The Pakistan Single Window Bill [2020] provides
the legal framework for the PSW system and its governing and operating framework. It has been approved by
the government and is expected to be enacted this year.

49
Even before its roll out, the PSW is resulting in major reform and transformation of trade related business
processes. For instance, the State Bank of Pakistan has agreed to replace the consignment based Import and
Export forms with electronic banker's profiles enabling real time exchange of information between Customs
and the banking system for foreign exchange regulation. Trade regulators such as the Animal Quarantine
Department, Department of Plant Protection, and the Federal Seed Certification & Registration Department,
and Drug Regulatory Authority of Pakistan have approved major re-engineered processes and related documentary
requirements for eliminating redundant information and eventual digitalization under the PSW system. Pakistan
Customs has also allowed major changes to allow pre-arrival declaration filing and processing without upfront
payment of duty and taxes. All participating trade regulators will be developing risk rules to enable machine
enabled risk profiling and mitigation of import/export transactions and consignments. Under the PSW initiative,
trade related regulatory laws, rules, and procedures are being reviewed for aligning them with international
best practices.

While overhauling the entire regime of external trade management in Pakistan, the successful implementation
of PSW program is aimed at reducing costs, time and complication for stakeholders while enhancing controls
in cross border trade. It will substantially reduce paper based documentation and physical visits for undertaking
imports, exports and transit trade. The transparency and predictability with lesser room for interpretation would
improve governance and reduced corruption. The PSW initiative will have immediate impact on the
competitiveness of Pakistan. Reducing import transactions costs and time to align with regional averages of
South Asia ($507 and 123 hours) could potentially save $350 million per year and approximately 140 hours
per transaction while reducing export transactions costs and time to align with regional averages ($377 and
86 hours) could potentially save $80 million per year and approximately 45 hours per transaction.These are
all savings that will pass on directly to traders allowing them to invest more on their businesses and/or to
recover from the ravaging effect of the pandemic. However, perhaps more significantly, the successful
implementation of the PSW will trigger and accelerate the digital transformation of Pakistan's international
trade sector to bring it at par with the more advanced economies in Asia and Europe and contribute to the
strengthening, sustainability, resilience, and integration of Pakistan's international supply chain to the global
value chains.

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 FACILITATION / SECURITY OF TRADE BY PAKISTAN CUSTOMS THROUGH ICT-BASED SOLUTIONS BY
FARHEEN ZAHRA AND MALAIKA JAFFARI

Customs administrations across the world are facing expanding responsibilities due to changes, brought by
globalization, such as increase in trade volumes, international security threats, seamless integration with
international supply chains and a rise in international trade agreements. As Dean Kamen said, "Every once in
a while, a new technology, an old problem, and a big idea turn into an innovation." Advancement in technology
in recent years has completely changed the world outlook. With automation in every field, continuous efforts
are required to remain relevant in the existing changing scenario. Similarly, in order to cater and adapt to rapidly
changing international trading environment, Pakistan Customs is consistently reforming existing procedures
and workflow in compliance of international commitments that may enable it to be more responsive and to
address the growing role of trade facilitation and to promote export led growth.

Pakistan Customs, with the use of technology, is refining existing procedures to implement best international
practices in order to adopt globalized modern approach towards facilitation and unification of trade. Many
initiatives have been adopted in trade processes among which Pakistan Single Window is the most important
initiative which provides one-stop electronic platform for lodging of trade documents, promoting cross-border
customs co-operation and expediting trade declarations and customs clearances.

Pakistan Customs, being a signatory of TIR convention, is connected through land route with the neighboring
countries, but lately an automated multi-modal facility for processing TIR cargo through sea ports has also been
introduced, which will open up new avenues to country's regional and international trade. Moreover, a dedicated
transit trade portal has been developed that provides real time tracking of transit cargo and online lodging of
complaints against delays in clearance of transit goods, which will result in increasing the efficiency and
transparency of the trade.

Exports from Pakistan have shown an exponential growth in four months reaching to US$ 2.4 billion in December,
2000 as compared to US $ 16 billion in August 2020, showing about 50 percent growth. In the backdrop of
pandemic Covid-19, to make Pakistani products competitive vis-à-vis its competitors in the International Market,
a risk based automated duty drawback payment system has been introduced in which duty drawback claims
of exporters, on the basis of risk profile, are processed and an electronic payment advice is generated to State
Bank of Pakistan, for direct disbursement of the same to the bank accounts of exporters. Duty draw-back of
at least eight sectors were revised upwards by FBR and more than 7800 exports have yet been benefited from
this initiative.

Recently, a pilot project of Authorized Economic Operator Programmed has been launched in Karachi wherein,
trusted traders with clean profiles are given priority in WeBOC for speedy clearance resulting in enabling the
trusted traders to become part of global AEO community for seamless movement of their cargo through
international borders. A new module of Automated Customs duty exemption regime has also been introduced
which is a very important initiative as it has reduced the time of receiving of requisite document / certificate
from other Government authorities like EDB, AEDB etc, by uploading documents through its WeBOC User-ID,
whenever required. Moreover, in order to enhance the ease of doing business, an online duty calculator has
been launched wherein anyone interested in knowing the applicable duty / taxes on any item intended to be
imported into Pakistan from abroad can calculate it without the requirement of any ID or password.
To strengthen counter-smuggling operations, Pakistan Customs has launched an online counter-smuggling
portal for maintaining database to monitor and identify the smuggled goods and actors involved in it. In this
system, online electronic detention / seizure memos, lodging of FIRs and investigation recordings are maintained.
The portal also provides the facility to Customs for management of seized smuggled goods through its state
warehouse management module.

Pakistan Customs remains committed to innovation and progress to address new challenges faced on day to
day basis. A reformed, technologically advanced Customs shall be able to efficiently perform its multiple critical
roles of trade facilitation, enforcement and protection of borders, market, environment, cultural heritage and
internal security thus enabling Pakistan to actualize its growth and prosperity potential.
51
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 ENCLOSURES
1. SRO.1103(I)/2020 DT. 26/10/20 amendment in Export Policy Order 2020. (Page No.60)
2. SRO.1225(I)/2020 DT. 18/11/20 amendment in Import Policy Order 2020 (Page No.61-62).
3. Office Order No.102/2020 PQ dt. 30/12/2020 regarding On-line verification of FTO. (Page No.63).
4. SRO.1334(I)/20 DT. 14/12/2020 amendment in Export Policy Order 2020 (Page No.64).
5. Sindh Budget 2021-2022 - Invitation of proposal in relation to the Sindh Sales Tax on Services Act
2011 (Page No.65).
6. SRO.03(I)/21 dt. 4/1/2021 amendment in Customs Rules 2001 (Page No.66-67).
7. SRO.04(I)/21 dt. 4/1/2021 amendment in Customs Rules 2001 (Page No.68).
8. SRO.05(I)/21 dt. 4/1/2021 amendment in Customs Rules 2001 (Page No.69-72).
9. SRO.06(I)/21 dt. 4/1/2021 amendment in Customs Rules 2001 (Page No.73).
10. SRO.14(I)/21 dt. 6/1/2021 amendment in Customs Rules 2001 (Page No.74-77).
11. SRO.13(I)/21 dt. 8/1/2021 amendment in Income Tax Rules 2002 (Page No.78).
12. On-Line Payment procedure for BOML charges issued by BOML (Page No.79).
13. Office Order No.04/21-Est. DTT dt. 12/1/2021 Standing Operating Procedure (SOP) regarding
Transport of POL Product to Afghanistan) (Page No. 80-82)
14. Board Letter dt. 13/1/2021 regarding Income Tax Proposal for Budget 2021-22 (Page No. 83)
15. Board Letter dt. 15/1/2021 regarding Budget Proposals 2021-2022 Customs Related (Page No.84 -
86).
16. User's Guide WeBOC GD through E-Payment System (Page No.87-101)
17. Procedure regarding How to create PSID for E-Payment in Weboc System (Page No.102-111).
18. Circular No.8 of 2021 dt. 21/1/2021 issued by State Bank of Pakistan regarding collection of FBR
taxes including Customs duty through ADC and OTC Mechanism (Page No.112-113).
19. Valuation Chart of Plastic Raw Material as on 20 Jan 2021. (Page No.114).
20. Bill The Pakistan Single Window (PSW) as introduced in the National Assembly (Page No.115 -
163).
21. Valuation Ruling No. 1504/2020 Dated 28th December 2020 determination of customs values of
Fishing Net under Chapter 56 (Page No.164 - 166)
22. Valuation Ruling No. 1505/2020 Dated 31/12/2020 determination of customs values of instant
Drinking Powder under chapter 21. (Page No.167 - 169).
23. Valuation Ruling No. 1506/2021 Dated 4/1/2021 determination of Customs values of Iron or Steel
Wool/Pot Scourer under chapter 73. (Page No. 170 - 172).
24. Valuation Ruling No. 1507/2021 Dated 4/1/2021 determination of customs values of Tractor Parts
under chapter 84 (Page No. 173 - 180).
25. KCAA in Print Media (Press Clipping/Cuttings) (Page No. 181 to 185).

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 Managing Committee's Activities

Mr. Wasiq Hussain Khan (President) Mr. Mehmood A view of the participants of meeting with the
ul Hasan Awan (General Secretary) alongwith Dr. Saif Honorable Governor of Sindh at Governor House,
ur Rehman (Principal Secretary of Governor Sindh) Karachi.
on the occasion of meeting held with the Honorable
Governor of Sindh Mr. Imran Ismail at Governor
House, Karachi.

A view of the meeting with the Honorable Governor Mr. Wasiq Hussain Khan (President) presented a
of Sindh Mr. Imran Ismail at Governor House, Karachi. KCAA's memento to the Honorable Governor of Sindh
Mr. Imran Ismail at Governor House, Karachi.

Mr. Mehmood ul Hasan Awan (General Secretary) presented Group photograph of delegation of KCAA alongwith the
KCAA's Members Directory to the Honorable Governor of Governor of Sindh at the occasion of meeting at Governor
Sindh Mr. Imran Ismail at Governor House, Karachi. House, Karachi.

186
 Managing Committee's Activities
Mr. Wasiq Hussain Khan (President) presented KCAA's
memento to the Mr. Jamil Ahmed Khan Member
National Assembly and Member of Sub-Committee
of National Standing Committee on Finance & Revenue
at the occasion of meeting of standing committee at
Parliament House Islamabad.
A Group photograph of KCAA's delegation at the
occasion of meeting of National Standing Committee
on Finance & Revenue at Parliament House, Islamabad.
Group photograph of KCAA delegation alongwith the
Customs Officials at the occasion of meeting arranged at
Custom House Karachi attended by Mr. Faheem Khan MNC
& Convenor National Standing Committee on Finance &
Revenue and Mr. Jamil Ahmed Khan MNA & Member
National Standing Committee.
187
Mr. Wasiq Hussain Khan (President) presented
KCAA's memento to the Mr. Faheem Khan Member
National Assembly and Convenor Sub-Committee of
National Standing Committee on Finance & Revenue
at the occasion of meeting of standing committee at
Parliament House Islamabad.
Mr. Wasiq Hussain (President), Mr. Ch. Mohammad
Afzal (Vice President), Mr. Mehmood ul Hasan Awan
(General Secretary) and Mr. Zahid Sharif Member
Managing Committee at the occasion of meeting of
National Standing Committee on Finance & Revenue
at Parliament House, Islamabad.
Dr. Saifuddin Junejo Chief Collector South (Enforcement
& Compliance) presenting Customs' memento to Mr. Jamil
Ahmed Khan Member National Assembly on the occasion
of meeting of Sub-Committee of the National Standing
Committee on Finance & Revenue at Custom House, Karachi.
 Managing Committee's Activities
Mr. Ahmad Raza Khan (Director General) Transit
Trade presenting Customs' memento to Mr. Qaiser
Shaikh Member National Assembly on the occasion
of meeting of Sub-Committee of the National Standing
Committee on Finance & Revenue at Custom House,
Karachi.
A view of the meeting of Member National Assembly,
Customs Officials and KCAA delegation at the
occasion of meeting of National Standing Committee
at Custom House, Karachi.
A Group photograph of joint meeting headed by the Collector
MCC-Appraisement (West) alongwith the delegation of
KCAA & AICT.
188
Madam Surriya Ahmed Butt Chief Collector South
(Appraisement & Facilitation) presenting Customs'
memento to Mr. Faizullah Kamoka Member National
Assembly & Chairman Sub-Committee of National
Standing Committee on Finance & Revenue on the
occasion of meeting of National Standing Committee
at Custom House, Karachi.
Mr. Faizullah Kamoka MNA & Chairman Sub-
Committee of National Standing Committee on Finance
& Revenue had given interview to the electronic media
on the occasion of meeting of National Standing
Committee at Custom House, Karachi.
A view of the meeting of Member National Assembly,
Customs Officials and KCAA delegation at the occasion of
meeting of National Standing Committee at Custom House,
Karachi.
 Managing Committee's Activities
Mr. Wasiq Hussain Khan (President) Mr. Mehmood
ul Hasan Awan (General Secretary) alongwith Mr.
Muhammad Shariq Vohra (President) Karachi Chamber
of Commerce & Industry at the occasion of introductory
meeting at KCCI Karachi.
Participants of Meeting at the occasion of introductory
meeting at Karachi Chamber of Commerce & Industry.
Mr. Wasiq Hussain Khan (President-KCAA) and Mr.
Muhammad Shariq Vohra (President-KCCI) at the occasion
of introductory meeting held at Karachi Chamber of
Commerce & Industry.
189
Office Bearers & Member Managing Committee of
KCAA at the occasion of introductory meeting at
KCCI Karachi.
Mr. Muhammad Shariq Vohra President KCCI
presenting KCCI's memento to Mr. Wasiq Hussain
Khan President KCAA at the occasion of introductory
meeting at KCCI.
Mr. Wasiq Hussain Khan (President-KCAA), Mr. Mehmood
ul Hasan Awan (General Secretary) and Mr. Muhammad
Shariq Vohra (President-KCCI) at the occasion of introductory
meeting held at Karachi Chamber of Commerce & Industry.
 Managing Committee's Activities

Mr. Wasiq Hussain Khan (President) and Mr. Mehmood Representative of Burma Oil Mills Ltd at the occasion
ul Hasan Awan (General Secretary) headed a meeting of meeting held at KCAA Head Office.
with the delegation of Burma Oil Mills Ltd at KCAA
Head Office.

Office Bearers & Members Managing Committee A view of the meeting held with the delegation of
attended a meeting with the delegation of BOML at BOML at KCAA Head office.
KCAA Head Office.

A view of the meeting held with the delegation of BOML A group photograph of representative of BOML and KCAA
at KCAA Head office. at the occasion of meeting held at KCAA Head Office.

190
 Managing Committee's Activities

Mr. Wasiq Hussain Khan (President) and Mr. Mehmood Delegation of Qasim Freight Station attended a meeting
ul Hasan Awan (General Secretary) headed a meeting at KCAA Head Office.
with Mr. Abdul Rehman Punjwani CEO-Qasim Freight
Station alongwith QFS' delegation at KCAA Head
Office.

Office Bearers and Members Managing Committee Mr. Wasiq Hussain Khan (President) presenting
of KCAA in the meeting with delegation of QFS at KCAA's memento to Mr. Abdul Rehman Punjwani
KCAA Head Office. (CEO-QFS) at the occasion of meeting held at KCAA
Head Office.

Mr. Mehmood ul Hasan Awan (General Secretary) presenting A Group photograph of representative of KCAA & QFS at
Bouquet to Mr. Abdul Rehman Punjwani (CEO-QFS) at the the occasion of meeting held at KCAA Head Office.
occasion of meeting held at KCAA Head Office.

191
 Managing Committee's Activities

A delegation of AICT comprising of Mr. Junaid Qureshi A view of the meeting with the delegation of AICT
and Mr. Sabir Khan attended a meeting at KCAA Head at KCAA Head Office.
office.

A view of the meeting with the delegation of AICT at Mr. Wasiq Hussain Khan (President) presenting
KCAA Head Office. KCAA's memento to Mr. Junaid Qureshi (AICT) at
the occasion of meeting held at KCAA Head Office.

Mr. Mehmood ul Hasan Awan (General Secretary) presenting A group photograph of representative of KCAA & AICT at
Bouquet to Mr. Sabir Khan (AICT) at the occasion of the occasion of meeting held at KCAA Head Office.
meeting held at KCAA Head Office.

192
 Managing Committee's Activities

KCAA Representative attended a joint meeting with A view of joint meeting of State Bank of Pakistan
the Director Finance Department State Bank of Pakistan through Video Link on E-Payment issue.
and Regional Head of all Banks through Video Link
(Zoom Cloud) on the issue of E-Payment.

A view of joint meeting of State Bank of Pakistan through Mr. Wasiq Hussain Khan (President) Mr. Rana Nasrullah
Video Link on E-Payment issue. Khan (VP) Mr. Mehmood ul Hasan Awan (General Secretary)
and Mr. Majid Soomro (Member MC) during on line meeting
with State Bank of Pakistan on E-Payment issue.

Mr. Wasiq Hussain Khan (President) and Mr. A view of the meeting of members of Afghan Transit
Mehmood ul Hasan Awan (General Secretary) headed at KCAA Head Office.
a meeting with the members of Afghan Transit at
KCAA Head Office.

193
 Managing Committee's Activities

Mr. Wasiq Hussain Khan (President) and Mr. Mehmood A view of the meeting of members of Afghan Transit
ul Hasan Awan (General Secretary) headed a meeting at KCAA Head Office.
with the members of Afghan Transit at KCAA Head
Office.

A view of the meeting of members of Afghan Transit at Mr. Mehmood ul Hasan Awan (General Secretary) at the
KCAA Head Office. occasion of Meeting of Advisory Council at KCAA Head
Office.

A view of the meeting of Chief Coordinators and Mr. Wasiq Hussain Khan (President) and Mr. Amir Altaf
Coordinators of KCAA at Head Office. (Chairman Advisory Council KCAA) headed a meeting of
Advisory Council at KCAA Head Office.

194
 Managing Committee's Activities

Mr. Wasiq Hussain Khan (President), Mr. Mehmood The Office Bearers and Members Managing
ul Hasan Awan alongwith the Mr. Muhammad Sharjeel Committee of KCAA attended a meeting with the
Goplani (President) Karachi Timber Merchants Group delegation of Karachi Timber Merchant Group at
on the occasion of meeting at KTMG Office. KTMG Office.

The Office Bearers and Members Managing Committee of A view of the meeting between KCAA & KTMG at KTMG
KCAA attended a meeting with the delegation of Karachi Office.
Timber Merchant Group at KTMG Office.

Mr. Mehmood ul Hasan Awan (General Secretary) presenting Mr. Muhammad Sharjeel Goplani (President) Karachi Timber
Bouquet to Mr. Muhammad Sharjeel Goplani (President) Merchant Group presenting memento to Mr. Wasiq Hussain
Karachi Timber Merchant Group on the occasion of meeting Khan (President) KCAA on the occasion of meeting at
at KTMG office. KTMG office.

195
 Heartiest Congratulations to
PAKISTAN CUSTOMS
on the auspicious occasion of International Customs Day 26th January 2021
 Heartiest Congratulations to
PAKISTAN CUSTOMS
on the auspicious occasion of International Customs Day 26th January 2021

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