For growth of legitimate trade flows, World Customs Organisation since its inception in 1952 and World Trade Organisation (WTO, 1995) have been working on harmonisation, simplification and standardisation of trade rules and processes. Recent Agreement on Trade Facilitation (ATF- Dec, 2013) is also considered a consolidating effort in areas of Customs co-operation and trade facilitation. However, the concept of Co-ordinated Border Management (CBM) has recently taken a leap by assuming a holistic regulatory approach by taking in to account of intra service and interagency co-operation at borders along with international border co-operation in order to improve efficiency and effectiveness of border procedures for efficient movement of goods (Mariya Polner, WCO Journal, 2011). CBM is considered to bring numerous advantages and benefits in areas of trade facilitation and effective compliance both for government and business across the borders resulting reduction in cost of doing business, removing duplication in processes in addition to achieve better compliance and other multiple economic advantages.
The changing business models in the world and post 9/11 security response have brought Co-ordinated Border Management in lime light. On the one hand, due to proliferation of Free Trade Agreements (FTAs) regional trade has surfaced as a vital instrument for economic development and on the other hand, surge of globalisation and emergence of new business models such as Global Value Chains (GVC) and Supply Chain Management (SCM) companies, regional trade got impetus by leaps and bounds. As confirmed by IMF trade reports, inter-regional trade in emerging Asian economies (China, Korea and East Asian countries) increased by five times as compared to rest of the worlds' three times during 1990 and 2006. These developments have brought an increased focus on co-ordinated border management instruments for gaining optimal benefits from speedy trade flows.
As such South Asia has lagged behind in development of regional trade as compared to other regional economic partnerships. Therefore, here, co-ordinated border management has not achieved the desired level of a regulatory frame work what it is gaining in other regional integrating economies. The regional trade in South Asia is seen as dismally low at 4 percent as compared with the regional trade of the European Union which is at 67 percent, the North American Free Trade Agreement (NAFTA) countries at 62 percent, the Association of Southeast Asian Nations (ASEAN) at 26 percent, the Common Market for Eastern and Southern African countries at 22 percent and Gulf Co-operation Council countries at 8 percent (UNCTAD, 2007).
The trade within South Asia, according to various estimates, can be more than double if appropriate regional agreements on infrastructure and removal of trade barriers are achieved to provide an enabling environment for seamless movement of goods. As per World Bank reports, annual trade between India and Pakistan, the bulk of which is routed through Dubai, is currently estimated at US $1 billion, but could be as great as US $9 billion if barriers are lifted. Pak-Afghan transit trade has moved from $0.83 billion in 2007 to $2.38 billion in FY 2013 and it is eyed to be around five billion dollar by 2015. Through trade liberalisation instead of pursuing import substitution policy, integration with global value chains (GVC) and by adopting co-ordinated border management approach for movement of goods across the borders we can achieve more rapid expansion of trade in the region. In changing business environment, the South Asian regional trade possesses a huge potential not only for the member countries yet it can be multiplied by its integration with Central Asian trade block on its north and with emerging Asian economies on its east.
Keeping in view the potential of regional trade, Pakistan Customs is striving for developing its capacity and infrastructure for any future trade expansion in the region. Raising the elaborated architecture of Web Based One Customs (WeBOC) for swift regulation of trade will go a long way for achieving the effective Co-ordinated Border Management. The Directorate of Reforms and Automation established in 2012-13 is gearing up to embrace the features of Single Window System by integrating the other stakeholder agencies with Customs' computer system. The recent step of Integrated Transit Trade Management System (ITTMS) is another important milestone which could be extended and utilised for achieving the object of Co-ordinated Border Management (CBM) not only among different agencies inside the country but also with neighbouring trading partners. During International Development Partners Conference held in December 2013, it was resolved to make Pakistan a regional transit trade hub by connecting it with soft and hard infrastructure linkages with regional countries. This vision has put forward many challenges for creating an enabling environment for an efficient, safe and hassle free regional trading environment which is only possible through development of a co-ordinated border management (CBM) policy.
WCO's 21st century paradigm of a modern customs administration which includes globally networked customs can effectively be achieved through Co-ordinated Border Management approach which will bring information sharing, co location of facilities, integrated Customs check posts, close inter agency co-operation, one stop border posts, Authorised Economic Operators (AEOs) program and single window system as its integral components. It would not only reduce the cost of doing business, control smuggling but it will also provide security to borders, increase revenues and create convenience for trade which can usher a new era of regional trade integration and economic development in South Asia.