January 09, 2025 (MLN): The Federal Board of Revenue (FBR) has clarified recent reports regarding changes to the transit cargo monitoring system, published in certain sections of the national press on January 9, 2025.
These reports claimed that satellite tracking has been replaced with human monitoring and raised concerns about the selection of new tracking companies.
In a statement, FBR clarified that such reports stem from a lack of understanding of the previous system, the current interim arrangements, and its efforts to establish a modernized, risk-free monitoring system based on cutting-edge technology.
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 that was tracking the cargo movement since 2013 was not terminated abruptly and without valid grounds rather it was done after following the due process of law and on account of following charges:
- Outdated tracking technology,l
- Frequent technical faults
- Inability to perform the live satellite tracking en-route but charging fee to the tune of Rs.445 million and making windfall profits
- Suspension of its operations due to cyber-attacks
- Multiple cases were registered by various field formations on account of different violations
- During the course of hearing TPL accepted that its devices were unable to provide satellite services and they send 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 following steps have been taken to ensure safe transportation of transit & transshipment cargo during the interim time:
- Installation of PMD devices on vehicles.
- Movement of cargo in convoys under Customs escort from the port of arrival till 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 en-route vehicles
- Effective surveillance of ATT/TP cargo by the field units of enforcement formations throughout the network
FBR has already initiated the tendering process of new EOI to select well qualified companies after competitive and transparent bidding process to ensure the newest technologies are deployed at the earliest for effective cargo tracking and monitoring.
The requirement of Container Surveillance Devices (CSDs) for the tracking companies has not been discontinued rather the new cargo tracking and monitoring system envisaged by FBR aims at utilizing the latest GSM and Satellite tracking technologies.
The ongoing fresh Expression of Interest (EOI) process will lead to selection of qualified companies after competitive and transparent process to ensure the newest technologies are deployed at the earliest for fool proof cargo tracking and monitoring.
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