FBR opts for human monitoring of Afghan cargo

Islamabad:

The government has temporarily stopped satellite tracking of containers carrying imported goods to Afghanistan from seaports and instead started monitoring them through human surveillance, a move that could increase the chances of smuggling.

After revoking the license of a company that had been tracking container movements through GSM and satellite since 2013, the Federal Board of Revenue (FBR) last week handed over the project to four companies. These companies were selected based on four-year technical qualifications and without any competitive process, according to official documents.

In a written statement, FBR’s Director General Transit Trade, Mohsin Rafique, confirmed that four companies have been “authorized regarding cargo tracking by the Licensing Committee as these companies were already technically evaluated and found eligible by the Licensing Committee in the meeting of April 6, 2021.” These companies, however, have no experience in container tracking and do not have Devices Container Surveillance (CSD), the FBR admitted in a written reply to The Express Tribune.Their technical capability is limited to installing tracking devices on vehicles and not on containers.

The FBR’s shift from satellite monitoring to a human-based model has raised concern. On December 27, FBR issued new standard operating procedures (SOPs) for the handling of bonded cargo.

The SOPs state, “The Collector of Customs, Karachi, will provide additional human resources as required by the Director, Transit Trade Directorate, to conduct intermediate monitoring at origin.” Similar instructions were given to Customs offices along the transit route.

The FBR suddenly terminated TPL Trakker’s license without first putting in place an equally effective alternative to mitigate the risks of smuggling, sources said.

Last month, the FBR issued Legislative Decree 2051 to relax financial health and expertise monitoring requirements for contractors. The new companies, tasked with tracking the movement of goods in Afghanistan and within the country, have experience and gadgets just for tracking vehicles.

While Prime Mover Devices (PMDs) installed on vehicles can track their movement, they do not track the containers themselves. To prevent theft, a separate CSD is usually installed on the container doors – a feature that new contractors do not have.

During a Licensing Committee meeting on December 31, the newly selected companies admitted that they only had PMDs immediately available. However, the committee allowed them to set up control rooms at the Old Customs House in Karachi and start temporary monitoring operations. “No [newly selected] The company has expertise in container tracking and only M/s TPL was doing container tracking in the market,” DG Transit Trade confirmed. He added that “CSD is an expensive device which is not available in any other company except TPL.”

Rafique stated that there is a shortage of CSD devices in the country and their use will continue once they are available. The FBR also amended the customs rules to change the criteria for granting tracking licences, transferring power from the FBR board to a licensing committee. Advertisements were issued by FBR for selection of new companies and nine companies expressed interest. The financial eligibility criteria have been reduced: the turnover requirement has been reduced from Rs 175 million to Rs 100 million and the financial worth requirement has been reduced from Rs 100 million to Rs 75 million. The DG said these changes were made to encourage more companies to track containers. Rafique added that the container tracking experience requirement was removed, as local tracking companies usually only track vehicles.

Transporters protested the FBR’s decision, citing increased costs. They are now being asked to pay Rs 20,000 for installing PMDs in the vehicles and Rs 5,278 per trip to the new contractors. To mitigate the risks, the DG said, the FBR has implemented measures such as cargo scanning at ports of origin and destination, real-time central monitoring and convoy movements under customs escort. Rafique said the Licensing Commission terminated TPL Trakker’s license with effect from the end of December for TPL’s “inability to carry out live satellite tracking of the cargo en-route and its operations remained suspended due to IT problems, with no backup cargo tracking plan’.

TPL has denied FBR’s allegations of non-performance. The company said its IT system was only down between June 13 and June 19, 2024, due to a cyber attack, but has since been fully restored. He also denied claims of insufficient satellite tracking, stating that he used hybrid devices with both GSM and satellite capabilities.