THE TWIN forces of globalization and competition have significantly altered the time and efficiency involved in international trade.

Consequently, documents associated with trade, such as the bill of lading, invoice, packing list, etc., have also experienced similar pressures for their simplification, harmonization and standardization in an effort to facilitate trade.

Multilateral trade organizations such as the United Nations Conference on Trade and Development and the World Customs Organization have long heralded the cause of simplification, harmonization and standardization of trade documents, viewing it as a precursor for the efficient and smooth crossing of goods across international borders.

The government of Pakistan (GoP), cognizant of its own role in the facilitation of Pakistan trade, has undertaken several initiatives that aim to simplify the procedures and formalities related to trade. One such initiative, in collaboration with the Customs, UNCTAD and the World Bank, has been the evolution of the existing multifarious customs declaration documents into a single, standardized, simplified and harmonized document called the Pakistan Goods Declaration (PGD).

The PGD is a single customs declaration document that can be lodged by traders for the import, export, warehousing and transit of goods. At present, the mentioned processes require distinct and separate documents such as the bill of entry (imports), shipping bill (exports) and transit permit amongst others. Since most of the information, such as the name of the importer/exporter, description of goods, etc., are common across all these documents, the PGD is able to consolidate all the information required by these different forms on a single form. As a result, the customs declaration process is greatly simplified through the use of a single document regardless of the customs procedure (import, export, warehousing or transit) being performed.

The PGD, goes beyond the consolidation of data on a single administration document. A huge drawback of the current documents is that they are of different sizes and shapes, making it virtually impossible to use a computer to fill them. As a result, most traders prefer to resort to middlemen that help prepare these declarations on their behalf. It is easy to see that no economic value is added through this dependency as most traders have their transaction data on their computers but are unable to use it to prepare their declarations.

The PGD, through its representation on a standard A4 size paper, makes it possible for the trader to prepare the declaration on a computer and print it using a regular printer. Further computerization at the end of both traders and customs will enable the trader to submit the declaration electronically. Furthermore, due to the recent passage of the electronic transactions ordinance, the electronically submitted declaration shall qualify as a proper declaration and a substitute for the physical declaration form.

Apart from the stated inadequacies of the existing declaration forms, a more worrying aspect lies in the fact that they require a declarant to provide data that is sometimes of a superfluous nature. Since these documents predate the computerization of customs, they still require information from the declarant that was necessary for reference purposes in a manual environment but redundant in a system that relies on extensive databases that can link information. For example, the provision of the NTN number serves the purpose of the unique identification of the trader and does not require other identification numbers. The PGD eliminates all extra information and requests only the minimum information necessary for customs to carry out their functions. All extraneous information has been omitted to expedite the preparation of the declaration form. Further improvements are possible when the customs have fully computerized.

Yet another drawback of the present forms lies in the fact that their layout is not standardized or harmonized with internationally accepted formats. Pakistan, being a signatory to the international convention on the Simplification and Harmonization of Customs Procedures, is obliged to harmonize its international trade documents, including the customs declaration document with the internationally prescribed format, known as the United Nations Layout Key, that recommends a standard layout of data across all international trade documents. A comparison of an invoice and bill of lading, prepared according to the UNLK, will clearly illustrate the alignment of the various data elements on these two distinct documents. The reason for such standardization is to facilitate the entering and retrieval of information by allocating a fixed place on a form for data such as trader’s particulars, transportation particulars, cargo description, payment information, etc. Ease of information retrieval through the use of UNLK greatly helps the expedition of customs formalities across international borders - a case best illustrated by the European Union countries through their use of a single administrative document, in conformity with the UNLK. The PGD, prepared in conformity with the UNLK, will not only help Pakistan meet its Kyoto Convention obligations, but also benefit from a Customs Declaration that facilitates transit trade through its universally recognizable nature.

The evolution of the PGD has been a success story in itself. Led primarily by Pakistan Customs, this initiative has progressed through the technical assistance of UNCTAD and the productive participation of individuals and organizations in both the public and private sectors through the national trade and transport facilitation committee appointed by the minister of commerce in June 2001.

The writer is the consultant to UNCTAD.