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46378-001: Technical Assistance Technical Assistance Consultant’s Report Project Number: 46378-001/TA 8405-PAK July 2014 Islamic Republic of Pakistan: Preparing the Regional Improving Border Services Project (Financed by the Technical Assistance Special Fund) Prepared by PPTA Individual Consultants under Phase 1 of the TA For Government of Pakistan Federal Board Revenue This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Asian Development Bank TA – 8405 PAK: Improving Border Services Project Final Report July 10, 2014 Acronyms and Abbreviations ADB Asian Development Bank AEO Authorized Economic Operator ANF Anti-Narcotics Force APTTA Afghanistan Pakistan Transit Trade Agreement BCP Border Crossing Point CBRN Chemical, Biological, Radioactive and Nuclear detectors CBTA CAREC Border and Transport Agreement CCTV Close Circuit Television CCZ Customs Control Zone CPR Computerized Payment Receipt DR Disaster Recovery DSL Digital Subscriber Line DXX Digital Cross Connect EDI Electronic Data Interchange EGD Export Goods Declaration EGM Export General Manifest EPD Electronic Pre Declaration e-QMS Electronic Queue Management System FBR Federal Board of Revenue FC Frontier Corps FIA Federal Investigation Agency FPCCI Federation of Pakistan Chambers of Commerce and Industry GATT General Agreement on Tariffs and Trade GD Goods Declaration GDP Gross Domestic Product GoP Government of Pakistan I/O Input / Output ICT Information and Communications Technology ID Identification IGM Import General Manifest IP Internet Protocol or Packet IP (PBX) Internet Protocol (Private Branch Exchange) ISAF International Security Assistance Force ISCM International Supply Chain Management IT Information Technology ITTMS Integrated Transit Trade Management System Kbps Kilobits per second KPI Key Performance Indicators KPK Khyber Pakhtun Khuwa KPT Karachi Port Trust KVA Kilo Volt Ampere LAN Local Area Network LPI Logistics Performance Index Mbps Megabits per second MFN Most Favored Nation i MoC Ministry of Commerce NADRA National Database and Registration Authority NATO North Atlantic Treaty Organization NBP National Bank of Pakistan NLC National Logistics Cell NTN National Tax Number NVR Network Video Recorder O/S Operating System OCS One Customs System OGAs Other Government Agencies PCA Post Clearance Audit PCs Personal Computers PFC Passenger Facilitation Center PKR Pakistani Rupee PQA Port Qasim Authority PR Pakistan Railways PRAL Pakistan Revenue Automation Limited PSTN Public Switched Telephone Network RFID Radio Frequency Identification RKC Revised Kyoto Convention RMS Risk Management System SCPC VSAT Single Channel Per Carrier Very Small Aperture Terminal SEP Single Entry Permit SVM Seal Verification Mechanism SWS Single Window System TA(PT) Technical Assistance Project Team TIR Transports Internationaux Routiers (International Road Transport) ToR Terms of Reference TRS Time Release Survey UCR Unique Consignment Reference UPS Uninterruptable Power Supply US United States UTM Unified Threat Management VA Volt-Ampere VP Vice President WAN Wide Area Network WCO World Customs Organization WeBOC Web Based One Customs Wi-Fi Wireless Fidelity WLAN Wireless Local Area Network WTO World Trade Organization ii Table of Contents 1. Executive Summary .................................................................................................................................. 7 1.1 Design and Layout ........................................................................................................................... 7 1.1.1 Final Border Crossing Design and Layout .................................................................................... 7 1.2 Customs and Trade Facilitation ..................................................................................................... 7 1.2.1 Overall process findings .................................................................................................................. 7 1.2.2 Overall infrastructure and equipment findings ............................................................................. 8 1.2.3 Overall process and infrastructure and equipment solutions ..................................................... 8 1.2.4 Legal framework review .................................................................................................................. 8 1.2.5 Customs training and skills assessment ....................................................................................... 8 1.2.6 World Customs Organization SAFE Framework of Standards to secure and facilitate global trade and Authorized Economic Operator (AEO) program ............................................ 9 1.3 Information and Communications Technology - ICT .................................................................. 9 1.3.1 Overall ICT Infrastructure Findings ................................................................................................ 9 1.3.2 Overall IT Systems Findings ......................................................................................................... 10 1.4 Border Crossing Security .............................................................................................................. 10 1.5 Abstract of Total Project Cost ....................................................................................................... 11 1.5.1 BCP Transition Plan Costs Summary (USD) ............................................................................. 11 2. Introduction............................................................................................................................................... 12 3. Methodology............................................................................................................................................. 14 3.1 Design and Layout ......................................................................................................................... 14 3.1.1 Guiding Principles of Design and Layout: ................................................................................... 14 3.2 Border Crossing Point Infrastructure, Equipment and Processes .......................................... 15 3.3 Information and Communication Technology – ICT .................................................................. 15 3.4 Security ............................................................................................................................................ 16 4. Border Crossing Point Customs and Trade Facilitation Processes ................................................. 16 4.1 Wagah Border Crossing Point ...................................................................................................... 17 4.1.1 Export bottlenecks .......................................................................................................................... 17 4.1.2 Import bottlenecks .......................................................................................................................... 18 4.1.3 Bus passenger process and bottlenecks .................................................................................... 19 4.1.4 Pedestrian process and bottlenecks ........................................................................................... 19 4.1.5 Wagha border crossing point 24 hour 7 day opening issues ................................................... 19 4.1.6 Short term transition to international practice border crossing at Wagha .............................. 20 4.1.7 Long term transition to international good practice border crossing processing .................. 21 4.2 Torkham Border Crossing Point ................................................................................................... 21 4.2.1 Export and import bottlenecks ...................................................................................................... 22 4.2.2 Transit processing, timings and bottlenecks .............................................................................. 23 4.2.3 Bus passenger bottlenecks ........................................................................................................... 24 4.2.4 Pedestrian bottlenecks and challenges ...................................................................................... 25 4.2.5 Short term transition to good practice infrastructure and equipment ...................................... 25 4.2.6 Long term transition to good practice infrastructure and equipment ...................................... 26 4.2.7 Short term transition to good practice export, import and transit processing ........................ 26 4.2.8 Long term transition to international good practice export, import & transit processing ...... 26 4.3 Chaman Border Crossing Point ................................................................................................... 26 4.3.1 Export and import bottlenecks ...................................................................................................... 27 4.3.2 Transit outbound and inbound bottlenecks ................................................................................ 28 4.3.3 Pedestrian bottlenecks .................................................................................................................. 29 4.3.4 Short term
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