ISLAMABAD: Prime Minister Shehbaz Sharif has directed an urgent investigation into a large-scale breach in Pakistan’s import clearance system, where Goods Declaration (GD) forms were allegedly manipulated to evade taxes. The Pakistan Single Window (PSW) Company, which manages the system, has acknowledged the issue but denies any involvement of its officials.
In response to the scandal, PSW clarified that “a previously unknown vulnerability in the WeBOC (Web-Based One Customs) system” allowed certain importers and clearing agents to alter goods declarations. However, the state-owned entity, which has overseen WeBOC since 2022, distanced itself from direct responsibility for the manipulation.
Government’s Response
Prime Minister Sharif has tasked the Prime Minister’s Inspection Commission (PMIC) with investigating the matter and submitting a report within three days. The scam, first reported by The Express Tribune, has raised concerns over the integrity of Pakistan’s customs operations, as more than 10,000 GD forms were allegedly altered, leading to billions in lost tax revenue.
The scandal challenges the reliability of GD forms, which are meant to securely document importing companies, goods, and associated duties. It has also cast doubt on the government’s efforts to ensure a transparent digital customs system.
PSW’s Stand on the Issue
The PSW has denied allegations of internal complicity, stating that claims of officer involvement are “unfounded and lack an understanding of the system’s functioning.” The WeBOC platform was designed for automated clearance of imports and exports, aligning with Pakistan’s digitalization strategy.
While acknowledging system vulnerabilities, PSW stated that manipulation of HS codes and weights in GD forms was executed via unauthorized browser script modifications, independent of PSW officials. It added that whether these fraudulent changes enabled successful tax evasion remains to be determined by customs authorities.
Pre-Existing Vulnerabilities in WeBOC
The PSW admitted that GD form tampering predates its takeover of WeBOC and has been a long-standing issue at dry ports. It argued that system weaknesses originating before PSW’s management cannot be attributed to the company.
Following the revelations, the Federal Board of Revenue (FBR) has been instructed to rectify WeBOC’s security flaws and conduct a post-clearance audit of Transshipment (TP) GD forms dating back to 2022.
Investigation and Next Steps
The corrupt network allegedly manipulated goods descriptions and quantities without altering HS codes to avoid detection. The PSW, emphasizing its commitment to transparency, has handed over data for scrutiny and implemented fixes to prevent future incidents.
The company also highlighted its independent financial model, which reinvests earnings into platform enhancements. However, it has faced criticism for charging substantial fees on each GD submission.
As the government intensifies efforts to secure its digital customs framework, all eyes are now on the PMIC’s report and the FBR’s audit findings.
FAQs
- What is the WeBOC system?
- WeBOC (Web-Based One Customs) is Pakistan’s digital customs clearance platform, facilitating import and export declarations.
- What was the nature of the customs scam?
- Importers and clearing agents allegedly altered GD forms to change product descriptions and quantities, reducing their tax liabilities.
- Who is responsible for managing WeBOC?
- The PSW has overseen WeBOC since 2022, but it claims the vulnerabilities existed before its tenure.
- What actions has the government taken?
- The PM has ordered an investigation by the PMIC, while the FBR is conducting a post-clearance audit.
- Has the issue been resolved?
- PSW has implemented security fixes, but the full extent of the damage is still being assessed.
