Now there is no hurdle in re-launching this mega project, under which movement of all transit and transhipment cargoes will be monitored through a state of the art tracking system. Vehicle tracking and monitoring system was launched by the FBR in the first week of September 2012, however, later it was put on hold after a group of stakeholders moved court on some issues.
After suo motu notice of Supreme Court, in which it was found that some 25,000 containers of transit trade and transhipment have not reached their destinations and reportedly these containers have been dumped in the country, causing billions of rupees loss to the exchequer on account of revenue.
There is not duty on transit cargo, while transhipment attracts duty at its final destination instead of port of entry. Initially, it was estimated that the FBR faced billions of rupees loss viz, misuse of transit and trans-shipment facility. Therefore, the honourable court asked the FBR to set up a new and well-equipped tracking/monitoring system to avoid misuse of the transit and transhipment facility by unscrupulous elements.
The customs licensed bonded carriers are already required to permanently install tracking device on the vehicles/trailers from a tracking company of repute and duly approved by the FBR, under the rules which license such carriers, for transportation of bonded cargo, on which duty and taxes are not collected at the port of entry.
Sources said cargo tracking and monitoring project is necessary to streamline the movement of transit and transhipment cargo within the country and to prevent the abuses and misuses of facilities under these schemes. In order to prevent misuse of the transit and transhipment facility, the FBR started development of a comprehensive system of en route tracking and monitoring of bonded cargo through a especially constituted committee of Customs officers, which designed the Terms of Reference (TOR) and pre-qualification criteria.
The ''Safe Transportation Environment Project" has thus been conceived for monitoring and tracking of all types of bonded cargo by using GSM/GPRS/satellite communications or any modern technology, in stages. To ensure transparency, the FBR has decided to adopt licensing regime for this project under a well-defined criteria and procedure notified under the relevant provisions of the Customs Act, 1969, instead of a binding contract.
Sources said the project was properly advertised and short-listing of interested firms was carried out, resulting in technical quantification of five tracking companies. Finally, M/s TPL Trakker Limited, having the highest technical score and lowest total cost for the opted technology, was approved for grant of license, instead of awarding of a binding contract.
TPL Trakker has been granted a non-exclusive license for a period of three years, extendable for another two years, subject to satisfactory performance. However, this license can be suspended and terminated anytime in case of failure to comply with the provisions of the said rules, they added.
In order to give effect to the licensing regime for tracking under the subject project, the FBR has already notified Tracking and Monitoring of Cargo Rules, 2012 vide S.R.O. 413(I)/2012 on April 25, 2012. These rules have been issued under the provisions of Section 219 of the Customs Act, 1969 to regulate the aforesaid activity of real time tracking of bonded cargo en route in a predictable, elaborate and transparent manner.
This rule also includes the aspect of licensing of other technically qualified firms with valid PTA license, under the aforesaid rule, they said and added that FBR rules for Tracking and Monitoring of Cargo are not monopolistic or anti-competition as the same do not restrict licensing to a tracking single firm/company.
"Although presently a single company has successfully got license, however there is no ban or restrictions on new license... and new applications for licensing will be processed under the aforesaid rules, when received," they added. The criteria for grant of license under the said rules is similar to the one advertised in February 2011, which led to the participation of 19 firms in the process and technical qualification of five firms later on. These criteria can, therefore, not be termed as company specific, exclusive and meant to favour a single company, sources said.
They said a pilot project has already run in Karachi during the first week of September, 2012 and its results are being evaluated at the level of the project director in consultation with the relevant stakeholders besides, all aspects of the said project are being reviewed in the FBR in light of feedback received and concerns reported by different quarters.
Some 8,000 bonded vehicles are operational in the country and in the initial phase so far tracking system has already been installed on 1,200 bonded cargo vehicles, while the process was held up due to filing of constitutional petition against the system in Sindh High Court. Now it is expected that the FBR is likely to re-launch vehicles tracking and monitoring system in next few days as court has cancelled all stays and resolved all cases.
The said project, with an initial duration of five years (extendable), required investment to be undertaken by the service provider(s), cost to be borne by the licensed bonded carriers/transport operators and owners/importers of the cargo. A central control room has already been set up at Custom House Karachi, besides 8 other regional control rooms for tracking of vehicles. In addition, the FBR has also set up mobile enforcement unit, which will take immediate action against transit and trans-shipment of vehicle, in case of inappropriate activity on the route by these vehicles.
Under the project two different monitoring systems will be installed, one will be installed on a permanent basis on the vehicle and second one on cargo container on a temporary basis. Sources said with installation of these tracking systems, not only smuggling will be restricted, but FBR will also earn billions of rupees revenue, currently being evaded under the umbrella of transit and transhipment facility. It has already estimated that the FBR is facing billions of rupees misuse in terms of transit and transhipment facility.