ISLAMABAD: The Federal Board of Revenue (FBR) has addressed recent media reports regarding changes to the transit cargo monitoring system.
In its statement, FBR clarified that claims about satellite tracking being replaced with human monitoring are based on a misunderstanding of both the previous system and the interim arrangements currently in place.
FBR explained that the satellite-based tracking system managed by a single licensed company faced significant challenges, including inefficiencies and operational vulnerabilities.
To address these issues, the license of the previous service provider was discontinued as part of a broader reform initiative to improve the monitoring framework.
To ensure uninterrupted transit cargo monitoring, FBR has temporarily engaged four tracking companies that qualified through a competitive process conducted four years ago.
Contrary to the claims made in some news items, FBR clarified that these companies possess the necessary technical capabilities to maintain effective monitoring during the transitional phase.
FBR reaffirmed its commitment to implementing a state-of-the-art, technology-driven system that addresses gaps in the previous framework and ensures a seamless, secure transit cargo monitoring process.
The upcoming system will leverage advanced tracking technologies and align with global standards to minimize risks and enhance transparency.
The board urged media outlets and stakeholders to avoid unfounded speculation, emphasizing its dedication to fostering a robust and modernized trade facilitation mechanism.
Regular updates on the progress of the new system will be shared to maintain transparency and build stakeholder confidence.
The license of the company responsible for tracking cargo movement since 2013 was not terminated abruptly or without valid grounds. Instead, the decision was made after following due legal processes and was based on several issues. These included the use of outdated tracking technology, frequent technical faults, and an inability to perform live satellite tracking en route despite charging fees amounting to Rs. 445 million and earning windfall profits. Additionally, the company faced operational suspensions due to cyberattacks, and multiple cases were registered by various field formations citing different violations. During the hearings, the company, TPL, admitted that its devices were incapable of providing satellite services and often sent unnecessary or frivolous alerts.
This resulted in breaking the monopoly/hegemony of the company providing substandard services while charging exorbitant charges, making windfall profits and compromising the integrity of the en-route cargo.
The credentials of four companies entrusted to task of tracking transit cargo these companies were technically evaluated and found eligible by the Licensing Committee and in fact they were granted the license under Tracking and Monitoring of Cargo Rules but the same had to be cancelled in view of the court cases.
The press release stated that steps have been taken to ensure the safe transportation of transit & transhipment cargo during the interim time:
- Installation of PMD devices on vehicles.
- Movement of cargo in convoys under customs escort from the port of arrival to the port of destination.
- Selected Scanning of the cargo is also being done at both the ports of destination and arrival to guarantee the safety of cargo and provide deterrence against any possible pilferage incident.
- A centralized Customs Control Room working 24/7 has been established for real-time tracking and monitoring of en-route vehicles
- Effective surveillance of ATT/TP cargo by the field units of enforcement formations throughout the network
The FBR has initiated a fresh tendering process for Expressions of Interest (EOIs) to select highly qualified companies through a competitive and transparent bidding process. This initiative aims to ensure the swift deployment of the latest technologies for efficient and reliable cargo tracking and monitoring.
Contrary to misconceptions, the requirement for Container Surveillance Devices (CSDs) has not been discontinued. Instead, the new cargo tracking and monitoring system envisioned by the FBR will integrate cutting-edge GSM and satellite tracking technologies to enhance efficiency and security.
