Publication: Reforming Customs Clearance in Pakistan
Loading...
Published
2010-04
ISSN
Date
2012-08-13
Author(s)
Editor(s)
Abstract
Simple, fast, transparent customs clearance procedures encourage trade-and the resulting tariffs and related taxes raise government revenue and stimulate economic development. After outsourcing failed to make customs more efficient or increase revenue, in 2002 Pakistan began pursuing a modern single window system for customs clearance. In 2005 the system was introduced at the port of Karachi, replacing numerous procedures with one electronic declaration and sharply cutting customs processing times. Despite dramatically reduced tariffs, annual customs revenue grew dramatically after the reform-though tariffs and customs reform have since stalled.
Link to Data Set
Citation
“Ahmad, Manzoor. 2010. Reforming Customs Clearance in Pakistan. Investment Climate in Practice; No. 9. © World Bank. http://hdl.handle.net/10986/10503 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Changes in Cross-Border Trade Costs in the Pan-Arab Free Trade Area, 2001–2008(2009-08-01)The Pan-Arab Free Trade Area, negotiated under auspices of the Arab League, came into force in 1997. Under the agreement all tariffs on goods of Arab origin were to be removed by January 1, 2005. This paper summarizes the results of a firm-level survey in nine countries regarding the implementation of the Pan-Arab Free Trade Area. A majority of respondent companies report that tariffs on intra-regional trade have largely been removed, and that there has been a marked improvement in customs clearance-related procedures. Costs associated with administrative red tape and weaknesses in transport-related infrastructure services are ranked as the most important constraints to intra-regional trade. This suggests that from a policy perspective, efforts to reduce real trade costs deserve priority, including transportation and logistics services. Periodic monitoring and assessment of trade incentives and performance would help governments to benchmark performance and identify priority areas for action, at both the national and the sub-regional levels.Publication Border Management Modernization(World Bank, 2011)This book provides border management policymakers and reformers with a broad survey of key developments in and principles for improving trade facilitation through better border management, including practical advice on particular issues. In contrast to the traditional border management reform agenda, with its focus on improving customs operations, this book addresses both customs reform and areas well beyond customs-a significant broadening of scope. The book thus presents a new, more comprehensive approach to trade facilitation through border management reform: an approach that embraces a much wider, 'whole of government' perspective. The objective of this book is to summarize and provide guidance on what constitutes good practices in border management-looking beyond customs clearance. The contributions to the volume make clear that there are no simple or universally applicable solutions. Instead, the aim is to provide a range of general guidelines that can be used to better understand the complex border management environment and the interdependencies and interrelationships that collectively need to be addressed to secure meaningful change and improvement.Publication Developing a Single Window to Facilitate Trade in Senegal(World Bank, Washington, DC, 2010-04)In 1995 a reform group headed by Senegal's Ministry of trade introduced a single window system for electronic trade facilitation as part of a reform agenda to improve the country's business environment. Launched in 2004, the system transformed customs clearance, streamlining the process through transparent, electronic transactions initiated by a single request from the importer or exporter. Traders could collect and process the necessary documents and authorizations prior to customs declaration in about half a day rather than the four days required before the system was implemented. With its real-time data, government agencies could better monitor and control transactions, contributing to more secure transactions and revenues. This note highlights key issues in Senegal's decision to develop a customized system and offers lessons for governments in managing diverse stakeholder requirements and expectations.Publication Lao PDR : Trade and Transport Facilitation Assessment(Washington, DC, 2014-04)In Lao People's Democratic Republic (PDR), the value of trade has risen rapidly over the last decade with both imports and exports increasing by average annual rate of 24 percent. This report examines the trade logistics of Lao PDR. A trade and transport facilitation assessment was performed using a standardized toolkit and methodology developed by the World Bank to evaluate the quality of the logistics services. The assessment focused on the services used by these trades and the corridors used by these services. The assessment gave specific attention to two constraints on trade, the location of the country and the size of the trade. The study is organized in three interrelated parts: assessing the performance of the logistics sector; the international trade corridors linking Lao PDR to trade gateways in Thailand; and the supply chains used for distribution of exports. This report is presented in four sections. The first part examines the foreign trade of Lao PDR, the opportunities for growth and the logistics services in the movement of imports and exports between the country and its major gateways. The second section evaluates the performance of the corridors connecting the major origins and destinations in the country and the principal seaport used for international trade. The third section analyses the structure and performance characteristics of the supply chains used for selected trades and the implications for restructuring to support growth in the export trade. The final section presents a series of recommendations for improving the competitiveness of the exports through improvements in the structure of the supply chains, the logistics services used by these supply chains, and the corridors used by these supply chains.Publication Why Does Cargo Spend Weeks in African Ports? The Case of Douala, Cameroon(2011-02-01)This paper investigates the main factors explaining long container dwell times in African Ports. Using original and extensive data on container imports in the Port of Douala, it seeks to provide a basic understanding of why containers stay on average more than two weeks in gateway ports in Africa while long dwell times are widely recognized as a critical hindrance to economic development. It also demonstrates the interrelationships that exist between logistics performance of consignees, operational performance of port operators and efficiency of customs clearance operations. Shipment level analysis is used to identify the main determinants of long cargo dwell times and the impact of shipment characteristics such as fiscal regime, density of value, bulking and packaging type, last port of call, and region of origin or commodity group on cargo dwell time in ports is tested. External factors, such as performance of clearing and forwarding agents, shippers and shipping line strategies, also play an important role in the determination of long dwell times. Cargo dwell time distribution has many specificities, including broad-tail, high variance or right-censoring, which requires in-depth statistical analysis prior to any design of policy recommendations.
Users also downloaded
Showing related downloaded files
Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication The Container Port Performance Index 2023(Washington, DC: World Bank, 2024-07-18)The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.