Every year, starting in April, the Karakoram Highway bustles with heavy traffic and transports goods from and across the Chinese border. But no more, thanks to the newly introduced digital Customs activities – Web-based One Customs (WEBOC) – which enables merchants to submit goods declarations online for import / export purposes.
We often think of technology as an improvement of our lives for the better. In the case of the WEBOC system, which was developed by the Federal Board of Revenue, however, trade was negatively affected. In fact, there has been little to no trade since the borders reopened in April this year.
Challenges for local traders
The goods declaration aspect of the WEBOC system is intended for owners of factories and not for small traders, according to Ashfaq Ahmad, a local trader. Nevertheless, the FBR online system demands that you declare your goods, no matter how many merchants you receive the products.
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This issue has made it more difficult than convenient for local traders who take their products off the market and not factories. Traders complain that even a single shipment requires a large number of declarations so that it can be traded. To make matters worse, merchants in Gilgit-Baltistan are not technologically literate and therefore can not use this system.
Legal issues
The GB Chieftain has already approved his judgment in favor of manual customs clearance following a petition filed by local traders against the FBR system. However, FBR's Chief Collector (North) Jawed Agha annulled the decision of the Court.
This development disturbed the local traders who blocked the Karakoram Highway. They protest that the tax-related authority of the FBR in the controversial GB region is unacceptable
Member Jawed Hussain, member of the Legislative Assembly, is of the opinion that the dry harbor of Sost is exempt from taxation because it lies in the controversial area
"There can be no taxes without representation We can not follow laws that are framed in Islamabad because we are not represented in the parliament of Pakistan We can only follow a policy designed by the local government and merchants. "
Tax loss
In the region, containers of 10 to 50 feet long are cleaned daily, worth Rs 1 billion in trade volumes and taxes worth Rs 350 million per month when the border is open.
Jawed claims that the local authorities have suffered a loss of Rs 350 million from the federal government, which makes FBR liable to pay the damage
Ali Asad, an assistant collector at customs, says that 99% trade via Sost is for the tariff area:
Trade via Sost is not for GB; the traders who protest against taxes and WEBOC are not importers but clearing agents. Importers are based in Karachi and Lahore. Local residents demand tax relief and say that GB is a controversial area, but borders are a federal subject where Pakistani (tax) legislation applies.
WEBOC – The way forward
Ali believes that manual operations included a number of loopholes that could be corrected by using the online system, allowing for quick documentation and approval. At a time when economic activity is booming with CPEC-related activities, the need for such a system was evident.
The border trade is booming, with an increase of 5-10% per year. Manual operations, however, remain a major obstacle, with documentation only taking 4 days. While customs officials believe that the WEBOC system is there to facilitate traders, the local population thinks differently, and demands that the officials withdraw it.
The current situation
A day before Eid, the Frontier Corps Northern Areas (FCNA) met with the merchants' core committee, asking to open the Karakoram Highway while assuring the agreement that FBR will solve their problems by 20 June to treat.
Via Dawn
The post FBR’s Digital System for Customs Brings Cross-Border Trade Between China and Pakistan to a Halt appeared first on News Doses.
